Context:
Comptroller and Auditor General of India (CAG) audited the functioning of the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in Uttarakhand
Compensatory Afforestation:
- A strategy to counterbalance the loss of forest land due to its conversion for non-forest uses, such as industrial projects, infrastructure development, and mining.
- The purpose is to afforest an equivalent area to mitigate ecological damage.
Forest (Conservation) Act, 1980:
- Mandates compensatory afforestation whenever forest land is diverted for non-forest purposes.
- Land Allocation for Afforestation:
- Non-forest land adjacent to existing forests is preferred.
- If unavailable, twice the area of degraded forest land is used.
- If no land is available, a certificate from the Chief Secretary is required.
- Financial Contributions: Project developers must bear the full cost, including the Net Present Value (NPV) of the diverted forest land and additional funds for catchment area treatment and safety measures.
- Net Present Value (NPV) of a forest refers to the monetary value assigned to the ecological services that a forest provides.
Compensatory Afforestation Fund (CAF) Act, 2016:
- Enacted to formalize the structure and functioning of Compensatory Afforestation Fund Management and Planning Authority (CAMPA), established by Ministry of Environment and Forests
- Key Provisions:
- Funds Creation – National Compensatory Afforestation Fund (NCAF): Under the Public Account of India; State Compensatory Afforestation Funds (SCAFs): Under the Public Accounts of States.
- Fund Allocation – 90% of CAF money to states; 10% retained by the Centre.
- Utilization of Funds – Compensatory afforestation, catchment area treatment, assisted natural regeneration, forest management, wildlife protection, relocation of villages from protected areas, managing human-wildlife conflicts, training, awareness generation, and wood-saving devices.
- Statutory Status – National and State CAMPA were given statutory status.
- Audit – Annual audit of accounts by the Comptroller and Auditor General (CAG).
Read more about Forest Cover in India, Indian Forest (Conservation) Act
Source: BS
Previous Year Question
With reference to ‘Global Environment Facility’, which of the following statements is/are correct?
[UPSC Civil Services Exam – 2014 Prelims]
(a) It serves as financial mechanism for ‘Convention on Biological Diversity’ and ‘United Nations Framework Convention on Climate Change’
(b) It undertakes scientific research on environmental issues at global level
(c) It is an agency under OECD to facilitate the transfer of technology and funds to underdeveloped countries with specific aim to protect their environment
(d) Both (a) and (b)
Answer: (a)