COMPENSATORY AFFORESTATION FUND

WHAT IS A COMPENSATORY AFFORESTATION FUND?

 Compensatory Afforestation Fund is constituted so that every time forest land is diverted for non-forest purposes, the user agency pays a quantifiable Net Present Value (NP) amount 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.

WHY DIVERSION OF FOREST?

• Development purposes: For infrastructural activities such as the construction of roads, dams, laying railway tracks, mining, and industrial development.
• Agriculture: For irrigation and agricultural practices such as slash and burn agriculture.
• In 2019 alone, a total of 11,467 hectares of forest lands were diverted in 22 states.

 SIGNIFICANCE OF FOREST LAND

1. Carbon stock-Forest can capture and store a significant amount of carbon dioxide from the atmosphere.
2. Ameliorate extreme Climate-Regulation of extreme climates by reducing heat in summer and cold in winter.
3. Influence the amount of rainfall and its variability.
4. Renewable forest resources- Forest provides wood and paper-based goods, energy production from forest-based wood and biomass can replace other more greenhouse-gas intensive products.
5. Cope with natural disasters- Reduce the risk of soil erosion, landslides, and avalanches.
6. Biodiversity- The existence of different species through pollination, seed dispersal, and soil fertilization is ensured.
7. Socio-economic benefits- Indigenous peoples’ rights to minor forest produce, sustainable livelihoods, rural development, and local employment, traditional medicines from forests for their health, and forest-based activities such as hunting and fishing.
8. Timber- Hardwoods include teak, mahogany, logwood, iron-wood, ebony, sal, etc., which are used for furniture, and other commercial products whereas Softwood includes deodar, poplar, pine, fir, and cedar are useful for construction work and the production of paper pulp.

 EVOLUTION OF CAMPA- COMPENSATORY AFFORESTATION FUND MANAGEMENT AND PLANNING AUTHORITY

• Conservation and compensation for forest diversion were originally mentioned in the Forest Conservation Act, of 1980.
• Supreme Court rulings in TN Godavarman case 1995 stated forest land cannot be diverted until and unless needed for a core project.
• Supreme Court of Indiaordered for establishment of the Compensatory Afforestation Fund and Compensatory Afforestation Fund Management and Planning Authority (CAMPA)in 2001.
• Ministry of Environment and Forest constituted Compensatory Afforestation Fund in 2004
• In 2006, Adhoc CAMPA was established for the management of the Compensatory afforestation fund.
• In 2007, C&AG initiated the auditing of Adhoc CAMPA Accounts.
• In 2008, the Supreme court exempted some projects which are vital for development from CAMPA frameworks.
• Supreme Court in 2009 ordered to release of funds from the center to state government and prescribed rules for the utilization of those funds.
• A bill for the same was passed by Loksabha and rejected by Rajyasabha in 2008.
• In 2015, the Ministry of Environment and Forest, Climate Change again introduced the bill, which subsequently led to the enactment of The Compensatory Afforestation Fund Act, 2016.

THE COMPENSATORY AFFORESTATION FUND ACT,2016

• The Act established the National Compensatory Afforestation Fund under the Public Account of India, and a State Compensatory Afforestation Fund under the Public Account of each state.
• These Funds will receive payments for (i) compensatory afforestation,(ii) net present value of forest (NPV), and (iii) other project-specific payments. 
• The National Fund will receive 10% of these funds, and the State Funds will receive the remaining 90%.
• These Funds will be primarily spent on afforestation to compensate for the loss of forest cover, regeneration of forest ecosystem, wildlife protection, and infrastructure development.
• The Bill also establishes the National and State Compensatory Afforestation Fund Management and Planning Authorities (CAMPA) to manage the National and State Funds.
• The fund is a non-lapsable interest-bearing public fund.

CAMPA-3 level bodies

1. Governing body- Under the union minister
2. Executive body- To execute and finalize the plans.
3. Monitoring body-To monitor and evaluate the spending of funds.

SIGNIFICANCE OF CAMPA

1. Artificial regeneration of lost forest land.
2. Better management of forest and its resources.
3. Wildlife protection and ecosystem conservation.
4. Mitigate rapid climate change issues.
5. Technical and scientific expertise in planning.

LIMITATIONS

1. Low Community participation- CAMPA is not actively taking people into confidence. Community participation is the core criterion needed for its success.
2. Under-utilization of funds- With 90% of funds being transferred to the state, the effective utilization of funds depends upon the efficiency of respective state forest departments.
3. Lack of accountability- Growing plantation by clearing dense forest, thus practicing compensatory afforestation only in letter, not in spirit.
4. Liberalizing forest diversion rules at the cost of environmental sustainability.
5. Bureaucratic apathy- a low proportion of environmental experts in the body lead to less specialized efforts.

WAYFORWARD

1. Stakeholder consultation- Community participation to be utilized for better results.
2. Quality- Focus on the quality of forest lands rather than the areas covered, to mitigate the issues of deforestation.
3. Fund utilization- Proper utilization of funds for forest development than using them for administrative needs.
4. No ambiguity- Specification of clear-cut rules for effective forest development.
5. Expertise Body- The incorporation of specialists in the body may give better results.
6. Outcome-Budgeting- Better monitoring of activities of state government improves accountability and responsibility to the environment.
7. Strengthen CAMPA- As per the TSR Subramanian committee, the CAMPA body needs to be strengthened to take independent effective actions.

CONCLUSION

It is necessary to make the effective utilization of Compensatory Afforestation Funds in true letter and spirit which helps to achieve SDG 15-: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation and halt biodiversity loss.

PRACTICE QUESTION

Explain how Campa (Compensatory Afforestation Fund Management and Planning Authority) fund brings sustainable development? Suggest measures for effective functioning of it.

(150 Words, 10 Marks)