Step 1: Understanding the Question:
The question asks for the specific section of the Biological Diversity Act, 2002, of India that empowers state governments to notify areas of biodiversity importance as "Biodiversity Heritage Sites" (BHS).
Detailed Explanation:
• Biological Diversity Act: This act was passed to fulfill India's obligations under the CBD. It created the National Biodiversity Authority (NBA) and State Biodiversity Boards (SBB).
• Section 37: This section states that State Governments, in consultation with local bodies, may notify areas of biodiversity importance as Biodiversity Heritage Sites. These sites are unique, fragile ecosystems which can be terrestrial, coastal, or inland water bodies.
• Management: The SBB frames rules for the management and conservation of these sites. This section also provides for compensating or rehabilitating any person affected by such notification.
• Analysis of other sections:
- Section 8: Deals with the establishment of the National Biodiversity Authority.
- Section 22: Deals with the establishment of State Biodiversity Boards.
- Section 41: Deals with the constitution of Biodiversity Management Committees (BMC) at the local level.
Step 2: Final Answer:
Biodiversity Heritage Sites are notified under Section 37 of the Biological Diversity Act.