The Comptroller and Auditor General of India (CAG) audited the functioning of the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in Uttarakhand for the period 2019-2022. The report revealed misuse and diversion of funds meant for compensatory afforestation.

Key Findings of the CAG Report

• Diversion of Funds: Rs 13.86 crore was diverted for purposes other than afforestation, including:
  • Purchase of iPhones, laptops, fridges, and coolers.
  • Renovation of buildings.
  • Legal expenses for court cases.
• Delay in Afforestation: As per CAMPA guidelines, afforestation should be conducted within 1 year (or 2 growing seasons) of receiving funds.
  • In 37 cases, afforestation was delayed by over 8 years, leading to a cost escalation of Rs 11.54 crore.
• Low Survival Rate of Planted Trees: The survival rate of planted trees was 33.51%, significantly lower than the mandated 60-65% as per the Forest Research Institute.
• Unsuitable Land for Afforestation: 1,204.04 hectares of land in five forest divisions was found unsuitable for afforestation.
  • Divisional Forest Officers (DFOs) issued incorrect suitability certificates without verifying land conditions.
• Unauthorized Forest Land Diversion: The Uttarakhand government approved forest land diversion without the mandatory central government approval.

What is Compensatory Afforestation?

• Compensatory Afforestation (CA) is a forest conservation mechanism implemented in India to counterbalance the loss of forest land due to its diversion for non-forest purposes like industrial projects, infrastructure development, and mining. 
• The objective is to ensure that an equivalent amount of land is afforested to compensate for ecological damage.

Legal Framework & Implementation

• The Forest (Conservation) Act, 1980 mandates that whenever forest land is diverted for non-forest activities, compensatory afforestation must be carried out. 
• Land Allocation for Afforestation
  • Non-forest land, preferably adjacent to existing forest areas, is identified for afforestation.
  • If non-forest land is unavailable, degraded forest land is used at twice the area of the diverted land.
  • If no such land is available, a certificate from the Chief Secretary of the state is required.
• Financial Contributions
  • Project developers must bear the full cost of afforestation.
  • Payments include Net Present Value (NPV) of the diverted forest, ranging from ₹9.5 lakh to ₹16 lakh per hectare.
  • Additional funds may be required for catchment area treatment and safety measures.
• Compensatory Afforestation Fund Management and Planning Authority (CAMPA)
  • Established: 
    • In 2002, the Supreme Court ordered the creation of the Compensatory Afforestation Fund (CAF) in the case T.N. Godhavarman Thirumulpad Vs Union of India 
    • In 2006, the Supreme Court ordered the establishment of an ad-hoc CAMPA to manage the CAF until the CAMPA was operational 
    • In 2004, the Ministry of Environment and Forests established CAMPA to manage the CAF 
  • CAMPA was established to monitor, provide technical assistance, and evaluate compensatory afforestation activities.
  • It administers the Compensatory Afforestation Fund (CAF), ensuring funds are used for afforestation and regeneration to offset forest land diverted for non-forest purposes.

Background and Rationale

• Forest (Conservation) Act, 1980: Mandates compensatory afforestation when forest land is diverted for non-forest uses (e.g., mining, industry).
• Net Present Value (NPV): User agencies must pay the NPV of the diverted forest to compensate for ecological services lost.
• Need for CAMPA: To manage funds collected for compensatory afforestation and ensure effective utilization.

Compensatory Afforestation Fund (CAF) Act, 2016

• Enacted: To formalize the structure and functioning of CAMPA.
• Key Provisions:
  • Funds Creation:
    • National Compensatory Afforestation Fund (NCAF): Under the Public Account of India.
    • State Compensatory Afforestation Funds (SCAFs): Under the Public Accounts of States.
  • Fund Allocation: 
    • 90% of CAF money is given to states.
    • 10% is retained by the Centre.
  • Utilization of Funds:
    • Compensatory afforestation.
    • Catchment area treatment.
    • Assisted natural regeneration.
    • Forest management and wildlife protection.
    • Relocation of villages from protected areas.
    • Managing human-wildlife conflicts.
    • Training and awareness generation.
    • Supply of wood-saving devices.
  • Statutory Status: National and State CAMPA were given statutory status under the Act.
  • Audit: Annual audit of accounts by the Comptroller and Auditor General (CAG).

Functions of CAMPA

• Compensatory Afforestation: Planting forests over an equal area of non-forest land or twice the area of degraded forest land.
• Fund Management: Ensuring proper utilization of funds for afforestation and related activities.
• Monitoring and Evaluation: Overseeing afforestation projects and ensuring compliance with guidelines.
• Capacity Building: Conducting training programs and awareness campaigns.

State/Union Territory CAMPA

• To ensure proper management and utilization of funds collected for compensatory afforestation, State/Union Territory CAMPAs were established following Supreme Court directives and the State CAMPA Guidelines, 2009. 
• These bodies are responsible for implementing compensatory afforestation projects at the state and UT levels.

Significance of CAMPA

• Environmental Compensation: Ensures loss of forest cover is offset through afforestation and conservation efforts.
• Sustainable Development: Balances developmental needs with environmental conservation.
• Legal Framework: Provides a structured mechanism for fund management and utilization.
• Accountability: Regular audits ensure transparency and prevent misuse of funds.

Challenges in Implementation

• Delay in Afforestation: Projects often face delays, leading to cost escalation and inefficiency.
• Misuse of Funds: Instances of diversion of funds for unrelated purposes (e.g., purchase of electronic devices, building renovations).
• Low Survival Rate of Planted Trees: Survival rates often fall below the mandated 60-65%.
• Unsuitable Land: Afforestation is sometimes carried out on land unsuitable for tree growth.

Recommendations by CAG

• Strengthen Financial Management: Implement budgetary control checks to prevent fund diversion or misappropriation.
• Accountability: Take action against officials responsible for negligence and unauthorized fund releases.
• Land Suitability Verification: Ensure proper verification of land suitability before issuing certificates.
• Timely Execution: Complete afforestation activities within the stipulated time frame to avoid cost escalation.

Conclusion

CAMPA plays a crucial role in balancing India’s developmental needs with environmental conservation by ensuring compensatory afforestation. However, effective implementation, transparency, and addressing challenges like fund misuse and delays are essential for its success.