Compensatory Afforestation

Compensatory Afforestation involves planting forests in a new area when forest land is used for non-forest purposes, like mining. This practice, started in the 1980s, got a legal framework through the Compensatory Afforestation Fund Act, 2016, aiming to better manage funds for this cause. However, it faces challenges like greenwashing, under-utilization of funds, land availability issues, and a lack of biodiversity in new plantations. In this article, you will learn about Compensatory Afforestation, Compensatory Afforestation Fund Act, 2016 and associated challenges, all of which are very important topic for GS Paper-2 Polity & Governance of UPSC CSE Prelims and Mains Exam. To explore more interesting UPSC Polity, check out other articles of IASToppers. 

Table of Content

• What is Compensatory Afforestation?
• Compensatory Afforestation programme
• Compensatory Afforestation Fund Act, 2016
• Background
• Compensatory Afforestation Fund Management and Planning Fund
• Challenges of Compensatory Afforestation in India
• Conclusion
• FAQ on Compensatory Afforestation Fund Management and Planning

What is Compensatory Afforestation?

• Compensatory afforestation means that every time forest land is diverted for non-forest purposes such as mining, the user agency pays for planting forests over an equal area of non-forest land, or when such land is not available, twice the area of degraded forest land.  

Compensatory Afforestation programme

• The idea of Compensatory Afforestation has been around since the 1980s, under the Forest Conservation Act of 1980.
• The objective of Compensatory Afforestation programme was to extend India’s forest cover and ensure that forest lands used for non-forest purposes is mandatorily accompanied by afforestation on at least an equal area of land.
• The practice Compensatory Afforestation got institutionalised through the Supreme Court orders during the hearings of the famous Godavarman case in the 1990s and 2000s.
• The legal framework for compensatory afforestation was established in 2016 through the Compensatory Afforestation Fund (CAF) Act, 2016.

Compensatory Afforestation Fund Act, 2016

• The Compensatory Afforestation Fund Act, also known as CAMPA Act, was enacted to manage funds collected for compensatory afforestation which till then was managed by ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA).
• The objective of Compensatory Afforestation Fund Act is to establish a comprehensive organizational structure at the national, state, and local levels.
• Its primary goal is to efficiently manage funds allocated for forest lands used for non-forest activities, in order to minimize the environmental impact. 

Background

Earlier process for Compensatory Afforestation in India

• Many industrial projects like dam building, mining, and industrial construction require diversion of forest land.
• Any entity, government or private, wanting to repurpose such land must seek clearance from the Ministry of Environment and Forests.
• This proposal is to be submitted through the concerned forest department of the state government.
• Upon approval, compensation for the repurposed forest land is determined by the ministry and its regulators.

Court Intervention and Creation of CAMPA

• In response to certain issues with forest compensation, some NGOs sought intervention from the Supreme Court.
• Consequently, on 10^th July 2009, the Court declared the establishment of the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) as National CAMPA Advisory Council.
• This body, headed by the Union Minister of Environment & Forests, oversees, provides technical aid and assesses activities related to compensatory afforestation.

The National CAMPA Advisory Council has following responsibilities:

• Drafting overarching guidelines for State CAMPA
• Offering scientific, technical, and other types of support required by State CAMPA
• Providing suggestions to State CAMPA after reviewing their plans and programs
• Serving as a problem-solving platform for State CAMPA to handle interstate or central-state issues

Compensatory Afforestation Fund Management and Planning Fund

• The fund is utilized as per the provisions of the Compensatory Afforestation Fund (CAF) Act, 2016.
• CAMPA funds is to be kept in interest-bearing non-lapsable Public Account. These funds cannot be used for payment of salary, travelling allowances etc. of forest officers.
• The money is first deposited in the Central fund, from where it gets disbursed to states where the projects are located.
• State governments have to prepare Annual plan of operations (APOs) for afforestation work that contains details of money to be spent during a financial year for works related to afforestation.
• Central fund can keep up to 10 % of the total money for spending towards administrative expenses. The rest has to be sent to the states according to their share.
• CAMPA Act acknowledges the fact that newly afforested land cannot be expected to immediately start delivering the range of goods and services — timber, bamboo etc. — that the diverted forests were providing.
• As a result, project developers have to pay for the Net Present Value (NPV) of the forests being cleared, based on a calculation decided by an expert committee.

Challenges of Compensatory Afforestation in India

• Issue with Greenwashing:  Some individuals argue that compensatory afforestation merely justifies deforestation, a form of ‘greenwashing’. Others assert that as we can’t completely stop forest clearance, compensatory afforestation is a beneficial strategy to somewhat offset these losses.
• Unutilized Funds: Over Rs 66,000 crore have been collected for compensatory afforestation through various levies, with around Rs 55,000 crore already dispatched to state governments. However, a large portion of these funds is locked in state coffers, and the approved amounts for afforestation aren’t fully spent. There have even been sporadic accusations of fund misappropriation or diversion.
• Annual Plan of Operations (APOs): State governments must create an APO detailing how the afforestation funds will be utilized each financial year. Once the Central Afforestation Management and Planning Authority (CAMPA) gives the green light, the state government transfers the approved funds to the state forest departments for execution. However, these funds are not fully utilized, as revealed by government records.
• Land Availability Challenges: Compensatory afforestation faces the hurdle of insufficient and unsuitable land for plantation. The land allocated for afforestation is often unproductive, presenting a tough challenge for plantation growth. Moreover, it’s rare to get a continuous stretch of land for afforestation, causing the land to be spread across numerous locations, which can’t replicate the diversity and richness of the original forests.
• Monocultures and Biotic Pressures: Activists have reported that the new plantations often comprise just one plant species, resulting in a lack of biodiversity, a crucial aspect of any forest. On the other hand, forest officials cite biotic pressures – challenges posed by nearby human settlements and cattle – as a significant issue for the plantations.

Conclusion

Despite challenges, Compensatory Afforestation, under the framework of the Compensatory Afforestation Fund Act, 2016, remains a key strategy in India’s commitment to environmental sustainability. By addressing the issues of unutilized funds, land scarcity, and lack of biodiversity, we can ensure the success of this green initiative and a healthier future for our planet.

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FAQs (Frequently Asked Questions)