CAF Act 2016 PDF

The Compensatory Afforestation Fund Act, 2016  to ensure that funds collected for afforestation activities, due to the diversion of forest land for non-forest purposes, are properly managed and utilized. “every time forest land is diverted for non-forest purposes such as mining or industr...

The Compensatory Afforestation Fund Act, 2016  to ensure that funds collected for afforestation activities, due to the diversion of forest land for non-forest purposes, are properly managed and utilized. “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” aims to compensate for the environmental loss and support forest conservation and related environmental services. 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.  The Supreme Court of India in 2002 (TN Godhavarman Vs Union of India case) had ordered the creation of CAMPA fund. CAMPA was established in 2004 to manage the Compensatory Afforestation Fund (CAF) and it acts as the custodian of the CAMPA fund. After the CAG report of 2013 where it was mentioned that CAMPA funds are going unutilized CAF Act, 2016 came into force on 30th September 2018 National Compensatory Afforestation Fund under the Public Account of India and State Compensatory Afforestation Fund under the Public Account of each state was created The State Funds will receive 90% of the payments while the National Fund will receive the remaining 10%. Objectives of the Act To establish a National Compensatory Afforestation Fund (CAF) and State Compensatory Afforestation Funds. To ensure that funds are effectively used for compensatory afforestation, forest management, wildlife protection, and ecological restoration. To maintain transparency and accountability in fund management for conservation and sustainable forest development.  Establishment and Management of Funds Establishment of National and State Funds – Establishes National Compensatory Afforestation Fund under the Public Account of India and State Compensatory Afforestation Funds under the Public Account of each state. – These funds are created to hold payments received from user agencies when forest land is diverted for non-forest use (for example, industrial or development projects). Crediting of Monies to the Funds – Specifies the sources of income for the funds, including payments for compensatory afforestation, Net Present Value (NPV) of diverted land, and other charges related to forest conservation. – This section ensures that these funds have a continuous inflow for forest restoration and conservation.  National Authority Constitution of the National Authority – Establishes the National Compensatory Afforestation Fund Management and Planning Authority (NCAFMPA), responsible for managing the National Fund. – The National Authority oversees the disbursement of funds, ensures compliance with regulations, and formulates policies for compensatory afforestation. Powers and Functions of the National Authority – the power to approve projects, distribute funds to state authorities, and monitor the implementation of compensatory afforestation and forest management plans. – Ensures accountability and efficiency in fund utilization by providing overarching guidance and monitoring at the national level.  State Authorities Establishment of State Authorities – Mandates the establishment of State Compensatory Afforestation Fund Management and Planning Authorities (SCAFMPAs) for each state and Union Territory. – are responsible for managing the funds allocated to them for compensatory afforestation projects. Functions of State Authorities – State Authorities manage and utilize the funds for afforestation, wildlife protection, and ecosystem restoration at the state level. – They are also tasked with ensuring community participation in afforestation efforts and implementing projects based on local ecological needs.  Utilization of Funds Utilization of National and State Funds Compensatory Afforestation Projects: Planting new trees and creating forest cover to offset forest land diversion. Wildlife Management: Funding for the protection and conservation of wildlife. Forest Management and Infrastructure: Supports activities such as forest fire control, soil conservation, pest management, and forest department infrastructure development. – Ensures the funds are strictly used for forest and environment conservation and not diverted to unrelated projects.  Transparency and Accountability Annual Reports – Requires the National and State Authorities to prepare annual reports detailing their activities, projects undertaken, and fund utilization. – These reports must be submitted to the Central Government to maintain transparency and accountability in fund management. Audit of Accounts – Mandates that the accounts of the National and State Funds be audited annually by the Comptroller and Auditor General (CAG) of India. – The audited accounts are presented to Parliament and State Legislatures, ensuring the public and authorities are informed about fund usage and project efficacy.