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| Compensatory Afforestation Fund Act, 2016 | |
|---|---|
| Name | Compensatory Afforestation Fund Act, 2016 |
| Short title | CAF Act, 2016 |
| Enacted by | Parliament of India |
| Territorial extent | Republic of India |
| Date enacted | 2016 |
| Status | In force |
Compensatory Afforestation Fund Act, 2016
The Compensatory Afforestation Fund Act, 2016 is an Indian law enacted by the Parliament of India to regulate funds realized from diversion of forest land for non-forest purposes and to ensure afforestation, conservation and protection of forests. The Act established institutional mechanisms for utilisation of those funds, aiming to strengthen ecological compensation and landscape restoration across India. It followed decades of litigation and policy debates involving judicial bodies, executive agencies and environmental organizations.
The Act emerged from a complex history involving the Supreme Court of India, Ministry of Environment, Forest and Climate Change, and state forest departments after landmark cases such as the T.N. Godavarman Thirumulpad v. Union of India litigation. Earlier regulatory frameworks included orders by the Supreme Court of India and notifications by the Union Cabinet that governed diversion of forest land under the Forest Conservation Act, 1980. Debates incorporated inputs from entities like the National Green Tribunal and commissions influenced by reports from the Indian Council of Forestry Research and Education and the Planning Commission. The legislative process involved consultations with state governments such as Maharashtra, Karnataka, Uttar Pradesh, and Odisha and stakeholder groups including conservation NGOs like World Wide Fund for Nature and Centre for Science and Environment.
The Act’s primary objectives include compensatory afforestation, protection and management of forests, biodiversity conservation, and eco-restoration linked to land diverted for projects such as those promoted by Steel Authority of India Limited, National Highways Authority of India, Bharat Heavy Electricals Limited, and other infrastructure agencies. Core provisions created statutory funds, mandated preparation of schemes, and set norms for utilization aligned with plans of agencies such as the Forest Survey of India and the Indian Council of Forestry Research and Education. It also required formulation of management objectives similar to those advanced by international agreements including the Convention on Biological Diversity and the United Nations Framework Convention on Climate Change.
The Act established a multi-tier institutional architecture: a National Compensatory Afforestation Fund Management and Planning Authority (National Authority), State Compensatory Afforestation Fund Management and Planning Authorities (State Authorities), State-level funds, and a National Fund. Governance roles were defined among bodies including the Ministry of Environment, Forest and Climate Change, state forest departments, and technical agencies such as the Indian Institute of Forest Management. The National Authority was charged with oversight, while State Authorities were required to plan and implement schemes, liaising with entities like the Forest Research Institute and state directorates in Kerala and West Bengal.
Funds originate when project proponents obtain clearance for diversion of forest land, assessed in monetary terms by nodal bodies including the Central Empowered Committee and deposited into the State Compensatory Afforestation Fund or National Fund. The Act prescribed eligible uses spanning afforestation activities, protection measures, wildlife habitat improvement involving organizations such as the Wildlife Institute of India, and capacity building for state agencies. Financial management required trustee banks, audit mechanisms under the Comptroller and Auditor General of India, and investment rules aligned with instruments used by State Bank of India and public financial institutions.
Implementation relied on State Authorities preparing annual plans coordinated with district officials, tribal welfare departments, and local bodies like Panchayati Raj institutions. Technical supervision involved agencies such as the Indian Space Research Organisation for satellite monitoring and the Forest Survey of India for assessment. Administration demanded mapping, species selection based on regional ecology (e.g., Sunderbans, Western Ghats, Himalayas), and integration with programmes such as those run by the Ministry of Tribal Affairs and national missions like the National Rural Livelihood Mission.
Critics included environmental activists, civil society groups, and scholars from institutions like Jawaharlal Nehru University and Tata Institute of Social Sciences, who argued the Act risked monetizing forest loss and diverting funds from direct conservation. Litigation persisted in forums including the Supreme Court of India and the National Green Tribunal over issues such as prioritisation of fund utilisation, transparency, and consultation with indigenous communities represented under laws like the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. International NGOs raised questions aligning implementation with global standards set by the Ramsar Convention.
Since enactment, outcomes have been mixed: several states reported increased afforestation and restoration projects coordinated with agencies such as the Forest Survey of India and State Forest Corporations, while audits by the Comptroller and Auditor General of India highlighted delays and compliance gaps. Ecological impacts varied across bioregions including Eastern Ghats and North-East India, with measurable changes in canopy cover tracked by the Indian Space Research Organisation and biodiversity assessments by the Wildlife Institute of India and academic centers like Indian Institute of Science.
Policy discourse continues on amendments and reforms driven by the Ministry of Environment, Forest and Climate Change, parliamentarians from parties such as the Bharatiya Janata Party and Indian National Congress, and recommendations from expert panels including the Standing Committee on Science and Technology. Future directions emphasize strengthening safeguards for indigenous rights, improved metrics by the Forest Survey of India and Indian Space Research Organisation, alignment with international frameworks like the Paris Agreement, and enhanced transparency via digital portals used by institutions such as the Unique Identification Authority of India.
Category:Indian environmental law Category:Acts of the Parliament of India 2016