Section 21 of BDA : Section 21: Determination Of Equitable Benefit Sharing By National Biodiversity Authority

Explanation using Example

Imagine a pharmaceutical company, "HerboCure," applies to the National Biodiversity Authority (NBA) for approval to access and use a rare medicinal plant found in the forests of India for developing a new drug. The plant is known for its healing properties among the local tribal community, who have used it for generations.

Under Section 21(1) of The Biological Diversity Act, 2002, the NBA would review HerboCure's application to ensure that if they grant approval, there will be equitable benefit sharing with the local community. This might include a share of the profits made from the new drug.

According to Section 21(2), the NBA may decide that HerboCure should:

• Provide joint ownership of any patent obtained on the drug to the local community (Section 21(2)(a));
• Transfer technology related to the drug's production to local enterprises (Section 21(2)(b));
• Set up its production unit near the community to improve their economic conditions (Section 21(2)(c));
• Involve local scientists and community members in its R&D processes (Section 21(2)(d));
• Contribute to a venture capital fund that supports the community's welfare (Section 21(2)(e));
• Make direct monetary payments to the community (Section 21(2)(f)).

If the NBA decides on monetary compensation, as per Section 21(3), they may direct HerboCure to deposit the money into the National Biodiversity Fund or pay it directly to the tribal community.

Lastly, Section 21(4) states that the NBA, in consultation with the Central Government, will create guidelines to ensure these terms are clear and fair.