Introduction
The National Compensatory Afforestation Fund Management and Planning Authority (National CAMPA) is a statutory body constituted under the Compensatory Afforestation Fund (CAF) Act, 2016. It functions under the Ministry of Environment, Forest and Climate Change (MoEFCC) and is responsible for managing and utilising funds collected as compensation for the diversion of forest land for non-forest purposes.
National CAMPA ensures that forest loss due to developmental activities is compensated through afforestation, ecological restoration and conservation measures, thereby balancing economic development with environmental sustainability.
Background
The concept of CAMPA emerged following the Supreme Court’s directions in the T.N. Godavarman Thirumulpad v. Union of India (2002) case. The Court observed that funds collected for compensatory afforestation were not being utilised effectively and directed the creation of an institutional mechanism to manage these funds.
Initially, an ad hoc CAMPA was established in 2004. To provide a permanent statutory framework, Parliament enacted the Compensatory Afforestation Fund Act, 2016, which came into force in 2018 after the corresponding Rules were notified.
Objectives
National CAMPA seeks to:
- Promote compensatory afforestation for diverted forest land.
- Regenerate degraded forests.
- Enhance forest and tree cover.
- Restore ecological balance.
- Support wildlife habitat improvement.
- Protect biodiversity.
- Strengthen forest management and conservation.
- Ensure transparent and scientific utilisation of compensatory afforestation funds.
Compensatory Afforestation Fund (CAF)
Whenever forest land is diverted for non-forest purposes under the Forest (Conservation) Act, 1980 [now incorporated under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980], the user agency is required to pay various charges, including:
- Compensatory Afforestation (CA) charges.
- Net Present Value (NPV) of forest land.
- Charges for catchment area treatment, where applicable.
- Wildlife conservation and mitigation measures, if required.
- Other site-specific environmental levies.
These funds are deposited into the Compensatory Afforestation Fund, which is managed through National and State CAMPAs.
Institutional Structure
National CAMPA
National CAMPA formulates broad guidelines, monitors fund utilisation, approves annual plans and ensures effective implementation across States and Union Territories.
State CAMPA
Every State and Union Territory has a State CAMPA, responsible for implementing afforestation and forest conservation activities at the field level in accordance with approved Annual Plans of Operation (APOs).
Utilisation of CAMPA Funds
CAMPA funds may be utilised for:
- Compensatory afforestation.
- Assisted natural regeneration.
- Artificial regeneration of degraded forests.
- Forest fire prevention and management.
- Soil and moisture conservation.
- Catchment area treatment.
- Wildlife habitat improvement.
- Protection and management of forests.
- Creation and maintenance of forest infrastructure.
- Assisted regeneration of bamboo and mangroves.
- Conservation of biodiversity.
- Capacity building and research in forest management.
The funds cannot be used for purposes unrelated to forest conservation.
Fund Distribution
Under the CAF Act, 2016:
- 90% of the funds are transferred to the State Compensatory Afforestation Fund of the concerned State.
- 10% is retained in the National Compensatory Afforestation Fund for national-level activities and monitoring.
Significance
National CAMPA plays a crucial role in:
- Increasing forest and tree cover.
- Achieving India’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
- Enhancing carbon sequestration.
- Conserving biodiversity and wildlife habitats.
- Supporting ecosystem restoration.
- Strengthening climate change mitigation.
- Promoting sustainable forest management.
- Compensating for ecological loss arising from infrastructure and development projects.
Challenges
Despite its importance, CAMPA faces several challenges:
- Delay in utilisation of funds by States.
- Poor survival rate of plantations in some areas.
- Afforestation on non-equivalent or ecologically unsuitable land.
- Focus on plantation targets rather than ecosystem restoration.
- Inadequate monitoring and third-party evaluation.
- Limited participation of local communities and Gram Sabhas.
- Difficulty in replicating the ecological functions of natural forests through plantations.
- Delays in identification and transfer of suitable land for compensatory afforestation.
Way Forward
- Prioritise restoration of native forest ecosystems over monoculture plantations.
- Improve transparency through real-time digital monitoring.
- Strengthen independent audits and third-party evaluations.
- Increase involvement of local communities, Forest Rights Committees and Gram Sabhas.
- Integrate CAMPA activities with landscape restoration and biodiversity conservation.
- Ensure long-term maintenance and survival of plantations rather than focusing only on plantation numbers.
- Promote scientific species selection based on local ecological conditions.
Conclusion
National CAMPA serves as India’s principal institutional mechanism for compensating ecological loss resulting from the diversion of forest land. By financing afforestation, forest regeneration and ecosystem restoration, it seeks to reconcile developmental needs with environmental conservation. However, its effectiveness ultimately depends on scientific planning, ecological restoration using native species, transparent governance and sustained monitoring to ensure that compensatory afforestation results in healthy, self-sustaining forest ecosystems rather than merely increasing plantation statistics.



