Compensatory Afforestation Fund

In August 2016, the Compensatory Afforestation Fund Act, 2016 has come into force. This act provides for setting up Compensatory Afforestation Fund Management and Planning Authority (CAMPA) at both central and state level to ensure expeditious and transparent utilization of amounts realised in lieu of forest land diverted for non-forest purpose. The utilization of funds is expected to mitigate the impact of diversion of such forest land.

Levies are imposed on development projects that seek land inside a Reserved Forest or a Protected Area (PA) in a sanctuary or a national park. These collected levies are accrued in the CAMPA Funds which are to be utilised to plant trees elsewhere in order to ostensibly compensate the loss of forest due to development projects. Adhoc CAMPA was created on the order of the Supreme Court in October 2002. The Ad-hoc CAMPA decides the procedure of per-verification of credits of levies in the State-wise accounts.

Currently, the CA funds, amounting to roughly Rs 50,000 crore, are with the ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA).

Note:

The Forest (Conservation) Act of 1980 governs diversion or use of forest land for non-forest purposes such as industrial or developmental projects.