Centre notifies draft rules for use of ₹50k crore afforestation funds

NEWDELHI: The environment ministry has notified draft rules under the Compensatory Afforestation Fund Act 2016, which lay down how and for what purposes the funds collected in lieu of deforestation are to be used.

The fund is embroiled in a controversy because of lack of clarity on its use and the procedure for its transfer to states. There are also fears of fund misuse.

The Supreme Court had directed the Centre to form a Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in 2002, but as a stop-gap measure, the apex court constituted an ad-hoc CAMPA, which has been disbursing the funds to states since 2009. So far, over ₹50,000 crore has been collected as part of the fund but less than ₹15,000 crore of it has been disbursed.

The afforestation fund act was passed two years ago, creating national and state-level funds. However, a plea filed in the SC, asking it to restrain the transfer of money lying with the ad-hoc CAMPA has led to the top court blocking the transfer money from going into the national and state funds until the rules are framed.

When forest land is diverted for non-forest purposes like development projects, the developers must deposit funds for not just afforestation of land equal to that being deforested but also compensation for the economic value of services provided by the lost forest area for 50 years, called Net Present Value (NPV).

As per the draft rules, 80% of the NPV should be used by the state for activities like assisted natural regeneration and protection of forests. The remaining 20% can be used for developing forest-related infrastructure.

Given that the claims of forest dwellers are not fully settled in many parts of the country, any provision for afforestation has the potential to violate their rights, environmentalists said.

“This draft violates the FRA (Forest Rights Act), the SC/ST Prevention of Atrocities Act and will result in further atrocities against the tribals,” Shankar Gopalakrishnan, a researcher with Campaign for Survival and Dignity, said.