1.     There shall be constituted a Fund to be called the National Biodiversity Fund and there shall be credited thereto-

a.     any grants and loans made to the National Biodiversity Authority under section 26;

b.    all charges and royalties received by the National Biodiversity Authority under this Act; and

c.     all sums received by the National Biodiversity Authority from such other sources as may be decided upon by the Central Government.

2.     The Fund shall be applied for-

a.     channeling benefits to the benefit claimers;

b.    conservation and promotion of biological resources and development of areas from where such biological resources or knowledge associated thereto has been accessed;

c.     socio-economic development of areas referred to in clause (b) in consultation with the local bodies concerned.