Compensatory Afforestation Fund Bill 2015: Key Features

Compensatory Afforestation Fund Bill 2015: Key Features

Question - The Union Cabinet recently gave its approval for the Compensatory Afforestation Fund Bill 2015. Discuss the key features of this Bill.


• This Bill seeks to provide appropriate institutional framework within Centre as well as States and UTs to expedite amounts realised in lieu of forest land diverted for other purposes

• This will mitigate impact of diversion of such forest land

• Proposed legislation also provides for utilisation of amounts in safe, secure and transparent manner

• The Bill also ensures utilisation of unspent amounts present with ad hoc Compensatory Afforestation Fund Management and Planning Authority/CAMPA to the tune of INR 38,000 crore

• Fresh accrual of compensatory levies and interests on accumulated unspent balance will be around INR 6,000 crore per annum

• This will be carried out in an efficient and transparent manner

• Apart from mitigating the impact of diversion of forest land, it will also result in creation of productive assets and generation of employment opportunities, more so in tribal areas

• National Compensatory Afforestation Fund/CAF will meet the expenditure of CAMPA and funds will be transferred on yearly basis to the National CAF

• The Bill also provides for establishment of State and National CAFs

Facts and Stats

• The bill envisages the creation of a National Authority to manage and utilise amounts for National CAF

• It also proposes creation of a State Authority in State and Union Territories to manage and spend amounts credited to State CAFs

• A Monitoring Group will be established to assist the National Authority, as per the Bill.

• Monitoring Group will assist in monitoring plus evaluation of amounts released from National and State CAFs