Diverting forest land for other purposes to cost 1.5 times more: Centre to states, UTS
SUPREME COURT RECOMMENDED CONCEPT OF NPV TO COMPENSATE FOR THE LOSS OF FOREST LAND DUE TO PROJECTS
NEW DELHI: It will cost 1.5 times more to divert forest land for other purposes, according to a revised formula to calculate the one-time payment of net present value (NPV) by environment ministry.
The ministry informed all states and Union territories about the new rates in a letter on January 6. HT has reviewed a copy of the letter.
For example, diversion of very dense forests in the so-called Eco-class 1 will now cost ₹15.95 per ha compared to ₹10.43 lakh earlier. Similarly, diversion of the open category of forests will now cost ₹11.16 lakh per ha compared to ₹7.44 lakh earlier. This will act as a deterrent to industries and projects on the extent of forest land they seek to divert, environment ministry officials said.
The amount goes to the Compensatory Afforestation Fund.
“This upward revision is unlikely to be deterrent against diversion of forest land as it’s understood to be a routine exercise,” said Kanchi Kohli, legal researcher at the Centre for Policy Research, a think tank. “The ministry has processed this as business as usual without a reflection or evaluation of whether NPV has been an effective mechanism for forest conservation. There has been an increasing demand for governments to review their reliance on monetary offsets...” In compliance with the
Supreme Court’s order dated March 28, 2008 in T N Godavarman Thirumalpad vs. Union of India case, the ministry started imposing an NPV in lieu of diversion of forest land for various development projects. The SC also directed in its order that the environment ministry should revise rates every three years.
“This is the first time NPV rates have been revised after 2009...” a ministry official said on condition of anonymity.
The SC’S central empowered committee recommended the concept of NPV to compensate for the loss of forest land due to developmental projects.