Knowledge Booster: Compulsory Afforestation and CAMPA

Subject: Environment, Polity, Government Schemes
Relevance: CAMPA and forest conservation laws are essential for the UPSC exam, particularly related to environmental policy, tribal rights, and sustainable development.

Why in the News?

• A CAG audit report (2019-2022) flagged that Uttarakhand’s forest divisions diverted CAMPA funds for other activities.

• Compensatory afforestation was executed after more than eight years of getting final clearance in 37 cases, violating CAMPA guidelines.

Core Concepts

1. Compensatory Afforestation:

   • Since forests provide ecological services, they should not be destroyed.

   • However, development needs lead to forest land being “diverted for non-forest purposes.”

   • To compensate for the interim loss of ecological services, the “user agency” (often private parties) must pay for creating a new forest.

2. Net Present Value (NPV):

   • The “user agency” must pay the NPV of the diverted forest calculated for 50 years.

   • NPV compensates for the interim loss of timber, carbon sequestration, soil conservation, water recharge, etc.

   • Afforested land takes at least 50 years to deliver comparable ecological services.

3. Role of User Agencies and State Governments:

   • “User agencies” pay for afforestation but do not undertake the work themselves.

   • The state government does the afforestation work, including land purchase.

   • The state government transfers the afforested land to the forest department for management.

4. Compensatory Afforestation Fund Management and Planning Authority (CAMPA):

   • CAMPA manages the money collected for compensatory afforestation and NPV.

   • This money is collected by state governments from user agencies and deposited with the central government.

   • The money flows back to the state for afforestation and related works.

Legal and Institutional Framework

1. Compensatory Afforestation Fund Act 2016:

   • Created a national CAMPA at the central government level and a state CAMPA in each state and UT.

   • Also constituted a National Compensatory Afforestation Fund (CAF) and state-level CAFs.

2. Historical Context:

   • Compensatory afforestation has existed since the 1980s, stemming from the Forest Conservation Act of 1980.

   • The Forest Conservation Act of 1980 made it mandatory for project developers to seek clearance from the Environment Ministry for forest land diversion.

   • Institutionalized through Supreme Court orders in the Godavarman case (1990s-2000s).

3. Financial Flows:

   • States deposit collected money with the national CAF.

   • The national CAF credits state CAFs as per their entitlement.

   • States receive 90% of their share; 10% is held back for administrative expenses.

TN Godavarman Thirumulpad v Union of India

• PIL filed in 1996 by a retired forest officer.

• Expanded the definition of forest land to include all areas recorded as forests in government records, regardless of ownership.

• The judgment mentions ‘payment for the restoration of the damaged environment.’.

• These rulings provided background to CAMPA.

FRA Act 2006

1. Empowered tribal and forest-dwelling communities by recognizing their historical rights over forest land and forest resources.

2. The FRA encompasses
   Rights of Self-cultivation and Habitation which are usually regarded as Individual rights; and Community Rights as Grazing, Fishing and access to Water bodies in forests, Habitat Rights for PVTGs, and right to protect, regenerate or conserve or manage any community forest resource for sustainable use.

3. The Act provides that the Gram Sabha and rights holders have the responsibility of the conservation and protection of bio-diversity, wildlife, forests, adjoining catchment areas, water sources, and other ecologically sensitive areas as well as to stop any destructive practices affecting these resources or cultural and natural heritage of the tribals.