The Compensatory Afforestation Fund Bill, 2015

Report Overview:

The Forest (Conservation) Act, 1980 (FCA) governs diversion or use of forest land for non forest purposes. When an agency (known as user agency) seeks to use forest land for non forest purposes, adequate afforestation is required to be undertaken to compensate for the loss of forest cover.1 This is called ‘compensatory afforestation’. The liability to provide land for afforestation purposes is of the user agency. Such land is to be provided to the state government and the user agency is required to pay for the plantation of trees on the land so provided. Further, loss of forest ecosystem is required to be compensated through payment of net present value of the forest (NPV). A National Compensatory Afforestation Fund Management and Planning Authority (CAMPA) was set up by the Supreme Court to manage the pooled funds provided by user agencies.