The Union Environment Ministry of India has distributed ₹47,436 crore to 27 states for the objectives of afforestation. This funding forms a part of the long-awaited Compensatory Afforestation Fund (CAF), which has been amassed over almost a decade as environmental compensation from industrial sectors. The funds granted are supplementary to the existing State Budget. The central government anticipates that states will apply these funds towards forestry initiatives to meet the Nationally-Determined Contributions (NDCs) objectives of increasing forest and tree cover. The fund utilization aligns with the provisions of the CAF Act and Rules.
Understanding the Compensatory Afforestation Fund
The CAF Act was instituted by the central government in 2016, and the corresponding rules were announced in 2018. The enactment of the CAF Act was intended to manage the funds raised for compensatory afforestation. Prior to the formulation of this Act, these funds were administrated by the provisional Compensatory Afforestation Fund Management and Planning Authority (CAMPA).
What Does Compensatory Afforestation Mean?
Compensatory afforestation refers to the practice where each time forest land is used for non-forest purposes, such as mining or industry, the party involved compensates by planting forests over an equal area of non-forest land. If such land isn’t available, then twice the area of degraded forest land is taken into account. As per the governing rules, the distribution of the CAF money is such that 90% goes to the states and the remaining 10% is retained by the Center.
Potential Uses of the CAF Funds
The acquired funds are useful in various activities that contribute to the betterment of forest lands and their surrounding areas. These include treating catchment areas, assisting in natural generation, managing forests, protecting wildlife and their habitats, relocating villages from protected areas, managing human-wildlife conflicts, conducting training and generating awareness. They also aid in the supply of wood-saving devices and related activities.
Facts About Compensatory Afforestation Fund
| Fact | Detail |
|---|---|
| CAF funding amount transferred | ₹47,436 crore |
| Number of recipient states | 27 |
| Source of CAF | Environmental compensation from industries |
| Year of CAF Act institution | 2016 |
| Fund distribution | 90% to states, 10% retained by Centre |
CAF Act and Its Implications
The CAF Act has brought structure and definite purpose to the funds collected as environmental compensation. It ensures that the industrial sectors are held responsible for any detrimental effect their operations might have on forest land. The provision of replacing used forest land with afforestation on non-forest or degraded land contributes towards retaining and even expanding India’s forest cover. Moreover, the CAF allows for a wide array of activities that serve this purpose, including wildlife conservation, village relocation from protected zones, and promoting awareness about the importance of forests and wildlife.