Context: Recently, a letter sent to principal secretaries for forests of all States and UTs complained that about 70% data on compensatory afforestation in the country was incorrect or incomplete.

• It asked the states to ensure units responsible for updating the compensatory afforestation data are strengthened and a system of robust scrutiny is created.

About Compensatory Afforestation

• It means that every time forest land is diverted for non-forest purposes such as mining or industry, 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 Fund Act, 2016

• The Compensatory Afforestation Fund Act was passed by the centre in 2016.
• It 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).
• As per the rules, 90% of the CAF money is to be given to the states while 10% is to be retained by the Centre.

Compensatory Afforestation Fund Management and Planning (CAMPA)

• Supreme Court ordered for establishment of Compensatory Afforestation Fund and Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in 2001.
• In 2009, Supreme Court permitted release of Rs.1000 crore every year to States/UTs for compensatory afforestation and other activities.
• It has provisioned that CAMPA funds shall be kept in interest bearing non-lapsable Public Account.
• The CAMPA Fund is now utilized as per the provisions of the Compensatory Afforestation Fund (CAF) Act, 2016.

Objective of CAMPA

• To promote afforestation and regeneration activities as a way of compensating for forest land diverted to non-forest uses.

Utilisation of Fund

• The funds can be used for catchment area treatment, wildlife and forest management, forest fire prevention, relocation of villages from protected areas, soil and moisture conservation work in the forest, managing human-wildlife conflicts, training and awareness generation etc.
• These fund cannot be used for payment of salary, travelling allowances, making buildings and buying office equipment for forest officers.

Mandate:

• Lay down broad guidelines for and assist State CAMPA.
• Make recommendations to State CAMPA based on a review of their plans and programmes.
• Provide a mechanism to State CAMPA to resolve issues of an inter-state or Centre-State character.