Compensatory Afforestation Fund Act, 2016

By Shivank Goel|Updated : September 16th, 2022

CAMPA Act or Compensatory Afforestation Fund Act, 2016, or CAMPA Fund Act, 2016, is Indian legislation enacted to enable the utilization of funds accumulated through penalties on the diversion of forest land for non-forest purposes. The Act provides for the "establishment of National and State Compensatory Afforestation Funds under the Public Account of India and each State."

The funds are collected from the payment for NPV (net present value of the forest, compensatory afforestation, and other project-specific payments. CAMPA Act compensates for the loss of areas covered by the forest. Besides this, the CAMPA Act is responsible for maintaining sustainable forests.

Table of Content

What is CAMPA Act?

The CAMPA bill is a comprehensive legislative framework for managing and utilizing funds accruing to the Compensatory Afforestation Fund Management and Planning Authority (CAMPA). The entire amount collected as "compensatory afforestation" lies with the Ministry of Environment, Forests, and Climate Change.

Download CAMPA Act Notes PDF

The compensatory afforestation fund receives money from persons who divert forest land to non-forestry uses. The money is then used to conserve, regenerate, or improve forest resources and provide green cover instead of forests redirected to other services. Below you will learn about the objectives of the CAMPA Act, CAMPA Fund, State CAMPA, the Structure of the Governing body of State CAMPA, its significance, and key provisions-

CAMPA Act Objectives

The main objective is to ensure speedy afforestation and regeneration of forest areas diverted for non-forest purposes and raise the country's forest cover.

The Compensatory Afforestation Fund (CAF) shall be used for:

  • Afforestation, regeneration, assisted natural regeneration, catchment area treatment plan, and wildlife protection works in degraded forest areas, including Reserved Forests, Protected Forests, Conservation Reserves, Community Reserves, outside forests, and non-forest areas.
  • Ensuring livelihood security and augmentation of income of local people through the generation of community assets based on waste/degraded land.
  • Afforestation, regeneration, or assisted natural regeneration on private lands subject to conditions that may be prescribed by the Central Government.

What is State CAMPA?

The instrumenting body or the authority responsible for performing and fastening the activities of the establishment of funds under each State's public accounts and India's public accounts. In 2008, after the Supreme Court's invention, State CAMPA was established in each UT/State of India. The State CAMPA is responsible for administering the money received from SCAF. After the administration, the State CAMPA utilizes the collected amount for

  • Wildlife conservation and protection
  • Infrastructure development
  • Assisted natural regeneration
  • Compensatory afforestation and similar activities.

Structure of the Governing body of State CAMPA

The structure of the Governing body of the State CAMPA is as follows-

List of Members

State CAMPA Designation

Secretary (Forests)

Member Secretary

Chief Minister


Chief Wildlife Warden


Principal Chief Conservator of Forests


Principal Secretary (Planning)


Principal Secretary (Finance)


Chief Secretary


Minister of Planning


Minister of Finance


Minister of Forests


What is CAMPA Fund?

The CAMPA Fund is a monetary compensation value deposited by the authorities along with the deposition of the land's net value per the CAMPA Law for diverting the forest land for non-forest purposes. The creation of the CAMPA fund was ordered by the Supreme Court of India in 2020. In order to manage the Compensatory Afforestation Fund (CAF), CAMPA was established in 2004. However, this acts as CAMPA Fund's custodian.

In August 2019, 47,436 crores Rupees were handed by the Indian government to the various Indian States as CAMPA Funds with the primary objective to help the country in achieving the afforestation objective. These funds are part of the compensatory Afforestation and are long-pending dues collected from the industries as environmental compensation for nearly a decade.

How will the CAMPA Act help increase forest cover in India?

The fund will be used for compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, the net present value of forest (NPV), and other activities.

  • It will help speed up the implementation of compensatory afforestation and other related activities on the ground.
  • It will help bring investments in large-scale plantation and forest conservation activities.

The funds will be utilized for afforestation, regeneration, conservation, and protection of forest areas and improvement in wildlife habitats. They will also be used to meet the cost of other works and activities concerning compensatory afforestation.

CAMPA Act Key Provision

The key provision that the CAMPA Act brings in is using this fund to meet the expenses incurred by the state governments on afforestation, rehabilitation of wildlife habitats, and eco-restoration activities. The Act puts a cap on the money used for compensatory afforestation.

The CAMPA Act will give a boost to green coverage in India. Afforestation and eco-restoration activities are imminent to reduce carbon emissions, improve air quality and mitigate climate change. The money from this fund can be used for undertaking various related activities.

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  • The CAMPA Act or Compensatory Afforestation Fund Act (CAF) is a law enacted by the Indian parliament in 2016 to create a framework for collecting and using money from penalties imposed on industries that divert forest land for non-forest purposes, such as manufacturing and mining.

  • The CAMPA Act was enforced on 30th September 2018. Under this act, the Supreme Court suggested the establishment of the CAMPA Fund in 2020.

  • The CAMPA Fund is a monetary compensation value deposited by the authorities for diverting the forest land for non-forest purposes along with the deposition of the land’s net value per the CAMPA Law.

  • The Act makes provisions for establishing two funds at the national and state levels for compensatory afforestation, catchment area treatment plan, wildlife protection, conservation measures, and infrastructure development. These funds will be used for forest conservation, preservation, management, and wildlife habitat improvement.

  • The CAMPA Act is a step by the Indian government to help maintain a steady increase in forest cover. Although India has increased its forest cover considerably over the last few years, they need to continue regularly. Thousands of hectares are being set aside for various projects every year. It will be imperative to ensure that these are set aside and maintained adequately to continue functioning well in the future.

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