Cement, Energy and Environment

STATEMENTOFOBJECTSAND REASONS As the diversion of forest land for non-forestry purposes was causing loss to the valuable forests. the Forest (Conservation) Act. 198D was enacted to maintain a rational balancebetween the objectives of conservation and development. Tile Forest (Conservation) Act. 1980makts provision for comervation of forest and provide for thebasic framework for regulating imfucriminate diversion or use offorest for the developmental needs of a State. It intends to harmonize development v.ith that of conservation of forests and forest eco system. Tile compensatory afforestation envisages additional plantation activities by utifuing the money de{Klsited by the user agency for thr purpose. l. The Honble Supreme Court in its oroer in TN. Godarannan I7rimmulpad v. Union of India [Writ Petition (C) No. 202 of 1995]. dated 30th October. 2002. observed that a Cmnpeusatory Afforestation Fund may be created in which all the monies received from the user agencies shall be deposited. The Court directed that the Fund shall be utilised fur plantations. protection of forests. wildlife protection and other related acti\ities. Presently. in compliance \Vith the direction ofthe Supreme Court. all monies collectedunder the scheme has been placed under au ad l1oc Compensatory Afforestation Fund Management and Planning Authority (CAMPA) and deposited in the nationalised banks. 3. Tile Honble Supreme Court in its Judgment dated the 26th September 2005 in the afmesaid case observed that the fund generateti for protecting ecology and providing regeneration should not be treated as a fund 1.mder article 266. ::ulicle 283 or article 2&4 of the Constitution. Funds are therefore: kept outside the Consolidated Fund of India or Public Aa:ount of India In the absence of proper institutional mechanism \\'itll adequate statotmy bach.-up amount of unspent funds has increased to more than rupees thirty eight thousand crorers. ~- TI1e Comptroller and Auditor General in its report on Compensatory afforestation in India (21 of 2013) observed that given the substantial amounts of funds being collected under the compensatmy 3fforestatiou. the expendimre therefrom. the 0\ -era1l objectives of conservation. protection. regeneration and management of forests. conservation. protection and management of wild life and its habitats and compensatory afforestation: the clear public purpose involved in the work relating to CAMPA. there is need to review the existing paradigm of CAMPA. The Comptroller and Auditor General recolll.ffiended that this should be done in a way that enhances transparency. lllings ClvvfPA within the broader focus of both Parliament and State legislatures and in greater public view so as to ensure the largest possible stakeholders' participation. Towards this end it would be appropriate if the amounts lying in ad hoc CAMPA are transfetred into the Public Account. Tite Comptroller and Auditor General has also observed that the receipts accruing into the ad hoc CAMPA are essentially payments being made fm- the acquisition of public assets. namely. forest land for non-forest ptu'J)oses by user agencies. TI1e reeeipts. so arising. in essence are non-tax re"\renue. as are forest receipts. 5. Accordingly. to ensm-e safety. security and expeditious utilisation in a transparent manner of funds accumulated \Vith the ad hoc CAMPA and lhe funds to be collected by the State Governments and Union tenitory Administrations it is proposed to enact a legislation. namely. the Compeusatmy Affm-estation Fl.md Bill. 2015 to pmvide fm· the establishn1fnt of a Statutory Fund and a Management Authority at the NationJllevel and at each State and Union territory. 18 49