Rajya Sabha passed Compensatory and Afforestation Fund (CAF) Bill, 2016

The Rajya Sabha  unanimously passed the contentious Compensatory and Afforestation Fund (CAF) Bill, 2016 that allows States to access nearly Rs. 42,000 crore and channel into afforestation projects.

The Bill vesting greater powers in the forest bureaucracy than on resident tribals

Highlights of the Bill

• The Bill establishes the National Compensatory Afforestation Fund under the Public Account of India, and a State Compensatory Afforestation Fund under the Public Account of each state
• These Funds will receive payments for: 
  Compensatory afforestation,
  Net present value of forest (NPV), and
  Other project specific payments. 
• The National Fund will receive 10% of these funds, and the State Funds will receive the remaining 90%.
• These Funds will be primarily spent on afforestation to compensate for loss of forest cover, regeneration of forest ecosystem, wildlife protection and infrastructure development.

The Bill also establishes the National and State Compensatory Afforestation Fund Management and Planning Authorities to manage the National and State Funds.