Explanation:

Only statement 1st is correct
About CAMPA

• The CAF Act 2016, which came into being more than a decade since it was devised, established an independent authority — the Compensatory Afforestation Fund Management and Planning Authority — to execute the fund.
• However, it was not until last August that the rules governing the management of the fund were finalised.

What is Compensatory Afforestation?

• Compensatory afforestation 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.
• Fund sharing: 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.
• The funds can be used for treatment of catchment areas, assisted natural generation, forest management, wildlife protection and management, relocation of villages from protected areas, managing human-wildlife conflicts, training and awareness generation, supply of wood saving devices and allied activities.

Hence option 1st is correct.