Compensatory Afforestation Fund Bill, 2015 Has Been Passes by Lok Sabha

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The Compensatory Afforestation Fund Bill, 2015 has been passes by Lok Sabha for the creation of funds under the public accounts of Centre and respectively State in the direction of compensatory afforestation.

  • It also offers additional afforestation and penal compensatory afforestation to regulate collected funds.

Salient features of the bill

  • It aims to found the National Compensatory Afforestation Fund below the Public Account of India, and a State Compensatory Afforestation Fund lower than the Public Account of each state.
  • The payments into the funds comprise compensatory afforestation, net present value (NPV) of forest, and any project specific payments.
  • 10 % of funds collected will be getting by the National Fund and the remaining 90 % will go to individual State Fund.
  • The composed assets will be exploited for afforestation, regeneration of forest ecosystem, wild life defense and forest related infrastructure development.
  • The bill also aims to found National and State Compensatory Afforestation Fund Management and Planning Authorities to accomplish the funds.
  • The strength of mind of NPV will be passed on to a skillful committee established by the central government.


  • The Forest (Conservation) Act, 1980 (FCA) governs alteration or use of forest land for non-forest determinations such as manufacturing or organization projects.
  • A company distracting forest land must offer unconventional land for captivating up compensatory afforestation.
  • The company should pay for planting new trees in the substitute land as long as the state for the afforestation resolve.
  • The loss of forest network must also be remunerated by paying for (NPV) .
  • The Supreme Court of India experiential that composed funds for afforestation was underutilized by the states and it well-organized for centrally combining of funds below ad hoc Compensatory Afforestation Fun in 2002.
  • The court had set up the ad hoc National Compensatory Afforestation Fund Management and Planning Authority to manage the Fund.
  • States also had set up State CAMPAs that accept 10 % of assets form National CAMPA to use for afforestation and forest conservation in 2009.
  • A CAG explosion recognized that the funds continued to be underutilized in 2013.

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