The Compensatory Afforestation Fund Management and Planning Authority (CAMPA) plays a crucial role in managing the funds for compensatory afforestation when forest land is diverted for non-forest purposes, as part of India’s efforts to balance development with environmental protection.

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• CAMPA guidelines dictate that compensatory afforestation must take place within a year or two growing seasons after forest land diversion.
• In 37 cases, compensatory afforestation occurred after over eight years, showing gaps in timely execution.
• The principle behind compensatory afforestation is to preserve forests, which provide essential ecological services like carbon sequestration and water recharge, even as development demands divert forest lands.
• Afforested land takes about 50 years to offer comparable goods and services, making it essential to calculate and recover the Net Present Value (NPV) for 50 years from the user agency.
• The user agency, typically a private entity, must fund the entire afforestation process, including land purchase, but the state government manages the forest.
• CAMPA manages the funds collected from user agencies and ensures they are used for afforestation or related environmental works in the respective state.
• The National Compensatory Afforestation Fund Act (2016) created CAMPA at both national and state levels.
• The practice of compensatory afforestation dates back to the 1980s, following the Forest Conservation Act and strengthened by Supreme Court rulings in the Godavarman case.
• Money deposited by user agencies in the national CAF is distributed to states, though 10% is retained for administrative expenses.
• The Forest Rights Act (2006) empowers tribal and forest-dwelling communities to protect, conserve, and manage forest resources, strengthening local environmental governance.