Explanation:

Compensatory Afforestation Fund Act, 2016 provides for setting up Compensatory Afforestation Fund Management and Planning Authority (CAMPA) under Public Accounts of India 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.
Due to the continuous diversion of forests at the rate of about 20,000-25,000 hectares per year (according to the Ministry of Environment and Forests), a large sum of money is being accumulated by the government. At present, more than Rs 40,000 crore has been realized and it is increasing at the rate of about Rs 6,000 crore every year. So, to manage this money, and to utilize it for the designated purposes the CAMPA is proposed to be set up. The compensatory afforestation money and NPV (Net Present Value) collected from the user agency by the state government has to be deposited with the central government. The money will be eventually released to the state for compensatory afforestation or related works.National CAMPA will not decide allocations to states as funds sharing ratio is provided in
the act as National (10% funds) and State Funds (90% funds).