Compensatory Afforestation Fund Act, 2016

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.

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.