Govt. to introduce Compensatory Afforestation Fund Bill, 2015 in the Parliament

Government to introduce Compensatory Afforestation Fund Bill, 2015 in Current Session of Parliament
The Government of India is planning to introduce a Compensatory Afforestation Fund Bill in the current session of the Parliament. A decision to that affect has been taken in a meeting chaired by the PM today.

The Compensatory Afforestation Fund bill seeks to create institutional mechanisms both at the Centre and State/Union Territory levels to replace the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) for utilisation of the amounts provided for compensatory afforestation in lieu of the forest land diverted for non-forest purpose. This bill is expected to bring in more transparency. At present the CAMPA funds are kept in Nationalised banks managed by Compensatory Afforestation Fund Management and Planning Authority (CAMPA). The bill also will ensure that the funds will not lapse and will continue to bear interest till the funds are utilised.

The bill makes provision for creation of Public bodies to manage these funds in the Centre and State/UT levels. This will help the Government wield more control over the vast amount lying with CAMPA.

At present, the unutilised CAMPA funds is to the order of Rs. 38,000/- crores and fresh accrual of compensatory levies and interest on accumulated unspent balance, will be of the order of approximately Rs. 6,000 crore per annum. It is to be seen if the new dispensation, once the bill is passed is any more efficient in utilising the CAMPA funds and if the CAMPA funds are indeed used for the compensatory afforestation purpose and not for any other remotely related purpose. The Government says that utilisation of the CAMPA funds will also result in creation of productive assets and generation of huge employment opportunities in rural areas, especially in backward tribal areas. So whether the CAMPA funds will be actually used for afforestation or not is yet to be seen.

Expenditure of the National CAMPA is proposed to be met from the funds to be retained in the National Compensatory Afforestation Fund (CAF) from the accumulated funds transferred to it by the ad-hoc CAMPA, and the funds to be transferred, on yearly basis, to the National CAF from a part of the funds credited by user agencies directly into State CAFs. The proposal, therefore, does not involve any additional expenditure on the Centre.

The Bill provides for among other things:-

i. Establishment of the National CAF and the State CAFs to credit amounts collected by State Governments and Union Territory Administrations to compensate loss of forest land diverted for non-forest purpose.

ii. Constitution of a National Authority to manage and utilise amounts credited to the National CAF.

iii. Constitution of a State Authority in each State and Union Territory to manage and utilise the amounts credited to the State CAFs.

iv. Establishment of a Monitoring Group to assist the National Authority in monitoring and evaluation of activities undertaken from amounts released from the National CAF and State CAFs.