Compensatory Afforestation Fund Management and Planning Authority (CAMPA)

Compensatory Afforestation Fund Management and Planning Authority (CAMPA) is a critical instrument in India’s environmental policy framework, aimed at balancing the country’s developmental needs with the imperative of conserving its forest resources. Ever since its establishment, it has contributed significantly to sustainable development in the country. This article aims to study in detail the Compensatory Afforestation Fund Management and Planning Authority, its background, needs, functions, significance & more.

About Compensatory Afforestation Fund Management and Planning Authority

• The Compensatory Afforestation Fund Management and Planning Authority serves as a mechanism to manage and utilise funds generated from compensatory afforestation, a process aimed at offsetting the environmental impact of deforestation due to industrial and developmental activities.
• It plays a crucial role in ensuring that the loss of forest cover is compensated through afforestation and other conservation efforts.

Background and Rationale of CAMPA

• The destruction of forests leads to loss of ecological services but because of developmental or industrial requirements, forests are routinely cut, and “diverted for non-forest purposes”.
  • In such cases, the Forest (Conservation) Act of 1980 requires that non-forest land shall be afforested, which will be equal to the size of the forest being “diverted”.
• However, since afforestation is a long process and during the development of forests, the goods and services it would have otherwise provided need to be compensated.
  • Therefore, the law requires that the Net Present Value (NPV) of the diverted forest shall be recovered from the user agency that is diverting the forests.
• Accordingly, any user agency seeking to convert forest land for non-forest purposes must deposit funds for compensatory afforestation.
• The authority thus set up to manage the fund is known as the Compensatory Afforestation Fund Management and Planning Authority.

Compensatory Afforestation Fund Act, 2016

• The Compensatory Afforestation Fund Management and Planning Authority was initially established under the Forest (Conservation) Act, 1980.
• However, with time, the management of compensatory afforestation funds started facing several challenges.
• Accordingly, the Compensatory Afforestation Fund Act, 2016 was enacted, which formalised the structure and functioning of the Compensatory Afforestation Fund Management and Planning Authority.
• Major provisions of the Compensatory Afforestation Fund Act, 2016 can be seen as follows:
  • It established the National Compensatory Afforestation Fund (NCAF) under the Public Account of India and the State Compensatory Afforestation Funds (SCAFs) under the Public Accounts of States.
  • The fund will be used for compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value, catchment area treatment plan or any money for compliance of conditions stipulated by the Central Government while according to approval under the provisions of the Forest (Conservation) Act, 1980.
  • The Act provides statutory status for two ad-hoc institutions:
    • National Compensatory Afforestation Fund Management and Planning Authority (NCAFMPA) for management and utilisation of NCAF.
    • State Compensatory Afforestation Fund Management and Planning Authority for utilisation of State Compensatory Afforestation Fund.
  • The sources of funds for NCAF and SCAFs will be as mentioned below:se funds will receive payments for:
    • Compensatory Afforestation
      • Net Present Value (NPV) of Forest
    • Other project-specific payments.
  • The act also provides for an annual audit of the accounts by the Comptroller and Auditor General.

Note: The National Fund will receive 10% of these funds, and the State Funds will receive the remaining 90%.

Challenges in Implementation of CAMPA

• The law stipulates the selected land should preferably be adjacent and contiguous to the forest being diverted so that it is easier for forest officials to manage it. Therefore, the main difficulty has been the availability of non-forest land for afforestation.
• There is difficulty finding land, especially in smaller states and heavily forested ones like Chhattisgarh.
• The list of works for which this money can be utilised also includes other programmes of the Green India initiative apart from afforestation. Thus, this diversion of funds needs to be properly monitored.
• The act will have adverse consequences for the rights of tribals and forest dwellers. For instance, as per the act, the forest bureaucracy can unilaterally decide how the CAMPA funds will be spent.

Way Forward for CAMPA

• The scope of the Act shall be amended to include consolidation of existing forest areas in the country and to set specific guidelines on compensatory afforestation activities tailored to ground realities in the state.
• Since the Act empowers State Forest Department personnel to carry out activities envisaged under the Bill, there exists a significant scope of capacity building of local officials and communication of best practices across states, subject to local realities.
• Efficient utilisation of these funds is crucial to maintaining the integrity of India’s forest cover in the coming years, protecting fragile habitats in Protected Areas and bringing fair compensation schemes for local stakeholders.

Conclusion

Compensatory Afforestation Fund Management and Planning Authority is a significant step towards mitigating the impact of forest diversion. However, its effectiveness depends on addressing the challenges and implementing robust measures to ensure that compensatory afforestation leads to tangible ecological benefits. As India continues to grow and develop, the role of CAMPA in maintaining ecological balance and ensuring the sustainability of forest resources will only become more crucial. Continued focus on improving fund utilisation, enhancing the quality of afforestation, and ensuring transparency and accountability is essential for the success of CAMPA.

Frequently Asked Questions (FAQs)