By : Neha Dhyani

Updated : Mar 29, 2022, 8:31

The Compensatory Afforestation Fund Act, 2016 or CAMPA Act or CAMPA Fund Act, 2016 is Indian legislation enacted to enable the utilisation 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."

CAMPA Act - Overview

The bill is a comprehensive legislative framework for managing and utilising 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.

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.

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 such conditions as may be prescribed by the Central Government.
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How will the CAMPA Act help in increasing 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 utilised 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 cover 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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Q.1) When was the CAMPA Act first introduced in India?

The CAMPA Act was enforced on 30th September 2018.

Q.2) What is the CAMPA Act?

The 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.

Q.3) How will the CAMPA Act prove beneficial for forest cover in India?

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. The money from these funds will be used for forest conservation, preservation, management, and wildlife habitat improvement.

Q.4) Why is the CAMPA Act Significant to India?

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.