Compensatory Afforestation Fund Bill, 2015
Q. Which of the following is/are true?
1) The Bill establishes the National Compensatory Afforestation Fund under the Consolidated Fund of India.
2) Of all the funds collected the National Fund will receive 25% of these funds, and the State Funds will receive the remaining 75%.- Published on 29 Apr 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Neither 1 nor 2
- The Bill establishes the National Compensatory Afforestation Fund under the Public Account of India, and a State Compensatory Afforestation Fund under the Public Account of each state.
- These Funds will receive payments for: (i) compensatory afforestation, (ii) net present value of forest (NPV), and (iii) other project specific payments.
- The National Fund will receive 10% of these funds, and the State Funds will receive the remaining 90%.
- These Funds will be primarily spent on afforestation to compensate for loss of forest cover, regeneration of forest ecosystem, wildlife protection and infrastructure development
- The Bill also establishes the National and State Compensatory Afforestation Fund Management and Planning Authorities to manage the National and State Funds.
- At present, an ad hoc National CAMPA (National Compensatory Afforestation
- Fund Management and Planning Authority) and ad hoc State CAMPAs, established by government orders, receive money collected for compensatory afforestation.
- Once the National Fund is created, money collected by state governments which has been placed with the existing National CAMPA will be transferred to the National Fund. Other sources of funds for the National Fund will be: (i) 10% of the funds collected for compensatory afforestation by states each year; and (ii) grants-in-aid/other sums received by, and loans/borrowings taken by the National CAMPA.
- The major sources of funds for the State Fund will be: (i) unspent balances lying with existing State CAMPAs; (ii) money transferred from the National Fund to the State Funds (90% of the money transferred from the existing National CAMPA to the National Fund); (iii) money received for compensatory afforestation; and (iv) grantsin-aid/other sums received by, and loans/borrowings taken by the State CAMPA.
- The balance with both funds will be non-lapsable and get interest as per a rate declared by the central government on a yearly basis.
