Govt to Push Compensatory Afforestation Fund Bill in RS

Move to make available over Rs. 6,000 crore to states a year for improving forest cover

The government will push for the passage of the Compensatory Afforestation Fund Bill in the Rajya Sabha in the upcoming monsoon session, which will make available more than Rs. 6,000 crore to states every year for improving the forest cover.

The proposed law is expected to create over 15 crore man-days of direct employment, most of it in the tribal and backward areas of the country.

The Lok Sabha has already passed the Bill, incorporating 20 of the 26 proposals of a standing committee that vetted it.
Rs. 40,000 crore lying in There is ` the fund, excluding interest accrued on amounts invested in fixed deposits, indicating the huge financial resources at the disposal for afforestation.

Any delay in passing the Bill will not only affect the afforestation drive, but also deprive tribal people and other backward communities huge employment opportunity, a senior government official said.

FUND FLOW

The Bill provides for creation of an institutional arrangement at both the central and state levels for utilisation of funds in an expeditious and transparent manner. A multidisciplinary group will monitor the fund utilisation.

The Bill allows for the transfer of 90% of accumulated corpus to states for creation and maintenance of compulsory afforestation and related activities, such as protection, expansion and improvement of wildlife and forests.

The balance 10% will be retained with the Centre for use in monitoring and to provide research and technical support.

Fresh amounts raised through levy for diversion of forest land will be deposited directly into the afforestation accounts of the relevant states.

EARLY BEGINNING

A compensatory afforestation scheme, provided under the Forest (Conservation) Act 1980, has been running in an ad-hoc manner under the direction of the SC after the court found deficiency in its implementation.

While hearing a matter in 2001, the Supreme Court observed that 83% of the funds realised for compensatory afforestation remained unutilised. In an order dated October 30, 2002, the top court called for creation of a “Compensatory Afforestation Fund“ to receive contributions from all user agencies to compensate for loss of forest land for non-forest use.

The apex court also suggested creation of a body for mana ging this fund. The Centre subsequently constituted Compensatory Afforestation Fund Management and Planning Agency (CAMPA), but it could not be operationalised.

AD-HOC ARRANGEMENT

Taking note that CAMPA had not become operational, in May 2006, the SC asked the government to set up an ad-hoc body headed by director-general forests and special secretary, Ministry of Environment and Forests, to take charge of the fund. Fund flow to states began under this arrangement.

In 2008, the then UPA government managed to get Compensatory Afforestation Fund Bill, 2008 passed in Lok Sabha, but it could not be taken up in the upper house and lapsed on dissolution of the 14th Lok Sabha.

In July 2009, the SC approved guidelines for utilisation of CAMPA while directing relea . 1,000 crore a year to states se of ` for the next five years. In March 2014, the court modified the rules to give more flexibility to the states and removed the limit.

The Comptroller and Auditor General in an order in March 2014 asked the government to examine the issue of keeping the fund outside the public account and urged it to move the SC to review its decision.

The Economic Times New Delhi, 23 May 2016