Compensatory Afforestation Fund Act, 2016

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Questions and Answers

What type of activities are funded under the Compensatory Afforestation Fund Act, 2016?

Urban expansion projects

Industrial development

Forest management and wildlife protection (correct)

Mining activities

How is the area to be compensated determined when forest land is diverted for non-forest purposes?

Only the area of land diverted is considered without compensation.

Equal area of non-forest land must be reforested. (correct)

Twice the area of degraded forest land if non-forest land is unavailable. (correct)

A random area is chosen based on the user agency's discretion.

Which body was ordered by the Supreme Court of India to create the CAMPA fund?

The Ministry of Forestry

The Ministry of Environment

The Central Forest Authority

The Government of India (correct)

What percentage of payments goes into the State Compensatory Afforestation Fund?

90% Signup and view all the answers

What is one of the main objectives of the Compensatory Afforestation Fund Act, 2016?

To maintain transparency and accountability in fund management. Signup and view all the answers

When did the Compensatory Afforestation Fund Act come into force?

2018 Signup and view all the answers

Which of these activities is NOT covered under the compensatory afforestation funds?

Industrial waste management Signup and view all the answers

What does CAMPA function as according to the established framework?

A financial manager for afforestation funds Signup and view all the answers

What is the primary responsibility of the National Compensatory Afforestation Fund Management and Planning Authority (NCAFMPA)?

To manage the National Fund for compensatory afforestation Signup and view all the answers

Which of the following is NOT a source of income credited to the compensatory afforestation funds?

User fees for national parks Signup and view all the answers

What role do State Compensatory Afforestation Fund Management and Planning Authorities (SCAFMPAs) play?

Managing funds for afforestation and local ecosystem needs Signup and view all the answers

Which activity is NOT covered under the utilization of national and state funds?

Construction of recreational facilities in parks Signup and view all the answers

What ensures transparency and accountability in the utilization of compensatory afforestation funds?

Annual reports prepared by National and State Authorities Signup and view all the answers

Which function is performed by the National Authority regarding the compensatory afforestation funds?

Monitoring the implementation of compensatory afforestation plans Signup and view all the answers

What is a key goal of establishing State Authorities for compensatory afforestation?

To enable local community participation in afforestation efforts Signup and view all the answers

Which of the following best describes how the National Authority ensures efficient use of funds?

By providing overarching guidance and monitoring at the national level Signup and view all the answers

Study Notes

The Compensatory Afforestation Fund Act, 2016

Purpose: To ensure funds collected for afforestation are properly managed and utilized due to forest land diversion.
Compensation: User agencies diverting forest land (e.g., mining, industry) must plant trees on an equal or double area of degraded land.
Objectives: Compensate environmental loss, support forest conservation and related services, treat catchments, promote natural regeneration, manage wildlife, relocate villages, manage human-wildlife conflicts, and provide training/awareness.
Historical Context: The Supreme Court of India (2002) ordered a CAMPA fund. CAMPA (2004) manages the Compensatory Afforestation Fund (CAF). A 2013 CAG report highlighted unutilized funds, leading to the 2016 Act.
Act Implementation: The Act came into force on September 30, 2018. It established: a national and state compensatory afforestation fund within the public account. The State funds receive 90%, while the National Fund receives 10%.

Objectives of the Act

Establishment: Creates National and State Compensatory Afforestation Funds.
Effective Fund Use: Ensures funds are used for compensatory afforestation, forest management, wildlife protection, and ecological restoration.
Transparency and Accountability: Maintains transparency and accountability in fund management for forest conservation & sustainable forest development.

Establishment and Management of Funds

National and State Funds: Establishes National Compensatory Afforestation Fund and State Compensatory Afforestation Funds.
Funds Purpose: Hold payments from user agencies when forest land is diverted. (e.g., industrial or development projects)
Income Sources: Specifies the income sources (compensatory afforestation, NPV of diverted land, other conservation charges). This ensures continuous inflow for restoration.

National Authority

National Compensatory Afforestation Fund Management and Planning Authority (NCAFMPA): Responsible for managing the National Fund.
Powers and Functions: Approve projects, distribute funds to state authorities, monitor implementation, ensure compliance, and formulate policies. Monitoring efficiency and accountability at a national level.

State Authorities

State Compensatory Afforestation Fund Management and Planning Authorities (SCAFMPAs): Established for each state and Union Territory
Responsibilities: Responsible for managing the funds allocated to them, managing compensatory afforestation projects.
Activities: Utilise funds for afforestation, wildlife protection, and ecosystem restoration; ensure community participation and address local needs.

Utilization of Funds

Afforestation Projects: Funding used for creating new trees/forest cover to offset lost forest land.
Wildlife Management: Funds support wildlife protection and conservation.
Forest Management/Infrastructure: Activities like fire control, soil conservation, pest management, and forest department infrastructure improvement are financed.
Fund Restrictions: Funds strictly used for forest and environment conservation, not diverted to unrelated projects.

Transparency and Accountability

Annual Reports: National and State Authorities required to submit detailed annual reports on activities, projects, and the use of funds to the Central Government.
Account Audit: Annual audits of national and state funds by the Comptroller and Auditor General (CAG) of India.
Account Presentation: Audited accounts presented to Parliament and State Legislatures, ensuring public and authorities are informed about fund usage and project efficacy.

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Description

This quiz covers the key aspects of the Compensatory Afforestation Fund Act, 2016, including its purpose, objectives, and historical background. Learn about the management of funds for afforestation and the implications for environmental conservation in India. Test your knowledge on the act's implementation and its significance in addressing forest land diversion.