Concept:
Biomedical waste includes waste generated during diagnosis, treatment, immunization, or research activities related to humans and animals.
To ensure proper segregation, handling, treatment, and disposal of biomedical waste, the Government of India introduced:
\[
\text{Biomedical Waste (Management and Handling) Rules, 1998}
\]
These rules were framed under the Environment Protection Act to protect public health and the environment.
Step 1: Analyze option A.
The Ministry of External Affairs deals with foreign relations and international affairs, not biomedical waste management.
Hence, option A is incorrect.
Step 2: Analyze option B.
The Ministry of Defence is responsible for national defense activities and not environmental regulations.
Hence, option B is incorrect.
Step 3: Analyze option C.
The Biomedical Waste (Management and Handling) Rules, 1998 were prescribed by the Ministry of Environment and Forest.
Hence, option C is correct.
Step 4: Analyze option D.
The Ministry of Home Affairs manages internal security and administration, not biomedical waste rules.
Hence, option D is incorrect.
Therefore, the correct answer is:
\[
\boxed{(C)\ \text{Ministry of Environment and Forest}}
\]