Compensatory Afforestation Fund Management and Planning Authority (CAMPA)

The Compensatory Afforestation Fund Management and Planning Authority (CAMPA) is a key institutional mechanism established under the Compensatory Afforestation Fund Act, 2016. Its primary function is to manage and utilize funds collected to compensate for the loss of forest land and ecosystem services caused by the diversion of forest areas for non-forestry purposes.

How the CAMPA Mechanism Works:

• Fund Collection: The Compensatory Afforestation Fund Act, 2016, mandates that any user agency (such as a company or government department) that diverts forest land must deposit compensatory levies. These levies include:
  • Compensatory Afforestation (CA): Funds for raising new forests on an equal or larger area of non-forest land.
  • Net Present Value (NPV): A levy that accounts for the ecological value of the diverted forest, covering services like carbon sequestration, biodiversity, and flood control.
  • Additional and Penal Levies: Funds for specific site-specific schemes and penalties.
• Fund Management: The Act establishes two types of funds:
  • National Compensatory Afforestation Fund: Held in the Public Accounts of India, it receives 10% of the funds collected.
  • State Compensatory Afforestation Fund: Held in the Public Accounts of each State, it receives 90% of the funds.
• Governance Structure: The CAMPA structure operates at two levels:
  • National CAMPA: Acts as an advisory body at the central level, providing broad guidelines, technical assistance, and resolving inter-state issues.
  • State CAMPA: Each state has its own authority to manage the funds and implement activities locally, including preparing an Annual Plan of Operations (APO) for approval.

Utilization of CAMPA Funds:

The funds are utilized for a wide range of activities aimed at mitigating the environmental impact of forest diversion. These activities are not meant to replace normal state funds for forestry but to supplement them. The key areas of expenditure include:

• Raising new compensatory afforestation.
• Improving the quality of existing forests through assisted natural regeneration and enrichment of biodiversity.
• Wildlife habitat improvement, including protection measures and management.
• Implementing measures for soil and water conservation.
• Forest protection, including the control of forest fires.
• Developing infrastructure for the forest department and building the capacity of forest officials through training.