Compensatory Afforestation Fund

The Compensatory Afforestation Fund Act, 2016 has established National Compensatory Afforestation Fund under the Public Account of India, and State Compensatory Afforestation Fund under the Public Account of each state.

The Funds will receive payments for-

1. Compensatory afforestation
2. Net present value of forest (NPV)
3. Other project specific payments

The National Fund will receive 10% of these funds, and the State Funds will receive the remaining 90%.

What is Compensatory Afforestation?

• Whenever forest land is diverted for non-forest purposes, it is mandatory under the Forest (Conservation) Act, 1980 for the user agency to pay for planting forests over an equal area of non-forest ....