Overview of the Compensatory Afforestation Fund Bill as introduced in the Lok Sabha by the Ministry of Environment, Forest and Climate Change.
The Union Cabinet chaired by the Prime Minister of India, on April 29, 2015 gave its approval for the introduction of the Compensatory Afforestation Fund Bill, 2015 (Bill) in the Parliament of India and thereafter the Bill was introduced in the Lok Sabha by the Minister of Environment, Forest and Climate Change on May 8, 2015.
The Bill's key objective is to establish an institutional framework (both at the center and in the states) for the efficient, optimal and transparent utilization of amounts collected in lieu of diversion of forest lands for any 'non-forest purposes', including any industrial and/or infrastructure projects, as per the provisions of the Forest (Conservation) Act, 1980. The amounts required to be paid for diversion of forest land for 'non-forest purposes' aim to mitigate such diversion, by passing on the costs of afforestation on the entities and persons causing deforestation.
Another key objective of the Bill is to provide for a mechanism to safekeeping of the monies collected in lieu of diversion of forest lands for any 'non-forest purposes'. As of now, all such amounts are being managed by the ad-hoc body and are being kept deposited in nationalized banks. The Bill also envisages transferring these amounts into non-lapsable interest bearing funds created under public accounts of the Government of India and the State Governments and to ensure expeditious utilization of all accumulated unspent amounts available with the Compensatory Afforestation Fund Management and Planning Authority (around Rs. 38,000 crore as of date) and fresh accrual of levies and interest on accumulated unspent balance, in a transparent manner.
The expeditious utilization of the accumulated amounts shall ensure timely execution of efficient measures to curb negative environmental and social impacts of diversion of forest land for 'non-forest purposes'. The Bill also proposes to provide for the expenditure of the Compensatory Afforestation Fund Management and Planning Authority at the national level, by funds retained in the National Compensatory Afforestation Fund (CAF) from the accumulated funds of the ad-hoc body, and shall also include funds transferred on annual basis from funds of user agencies credited into the State Compensatory Afforestation Fund, thereby not requiring any additional expenditure by the Union Government.
The Bill broadly envisages to:
- Establish the National Compensatory Afforestation Funds and the State Compensatory Afforestation Funds for crediting amounts collected by each State Government, for compensating on account of diversion of forest land for 'non-forest purposes';
- Constitute a National Compensatory Afforestation Fund Management and Planning Authority for the purpose of managing and utilizing the amounts credited to the National Compensatory Afforestation Fund as compensation for diversion of forest land for 'non-forest purposes';
- Constitute State Authorities in each state for the purpose of managing and utilizing the amounts credited to the State Compensatory Afforestation Fund as compensation for diversion of forest land for 'non-forest purposes';
- Establish a Monitoring Group to assist the National Compensatory Afforestation Fund Management and Planning Authority, in the monitoring and evaluation of activities, undertaken with such amounts as may be released from the National Compensatory Afforestation Fund and/or the State Compensatory Afforestation Funds.
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