Compensatory Afforestation Fund Management and Planning Authority (CAMPA): Fund Rules and Recent Developments
Current Affairs & Government Schemes › Environment and Climate Schemes · Topic 13.2
The Compensatory Afforestation Fund Management and Planning Authority, or CAMPA, manages money paid by users of forest land for compensatory afforestation under the Compensatory Afforestation Fund Act, 2016, and the Compensatory Afforestation Fund Rules, 2018. When forest land is diverted for a project, the user pays for compensatory afforestation, the Net Present Value of the forest and other charges. The money goes into a National Fund, which gets 10 percent, and State Funds, which get 90 percent. The Supreme Court in 2019 allowed release of about Rs 54,000 crore of accumulated money. Under-use of funds and misuse remain concerns.
6 min read · UPSC Prelims · Current Affairs & Government Schemes · Environment and Climate Schemes
At a Glance
- Act Compensatory Afforestation Fund Act, 2016
- Rules Compensatory Afforestation Fund Rules, 2018
- Fund split 10 percent National, 90 percent State
- Key charge Net Present Value of forest land
- Ministry Environment, Forest and Climate Change
- Exam link UPSC Prelims, Current Affairs and Government Schemes: Environment and Climate Schemes
Where Does It Fit?
This topic covers the money flow that supports forest work in the macro on environment and climate. The Nagar Van Yojana, covered later in this macro, uses CAMPA money for urban forests. Previous topic: National Action Plan on Climate Change (NAPCC). Next topic: National Clean Air Programme (NCAP).
How Does the CAMPA Fund Work?
| Element | Details |
|---|---|
| Basis | When forest land is diverted for non-forest use, the Forest (Conservation) Act, 1980, now called the Van (Sanrakshan Evam Samvardhan) Adhiniyam after the 2023 amendment, requires compensatory afforestation |
| Payments by the user | The user agency pays for compensatory afforestation on non-forest land, the Net Present Value of the lost forest, and other charges such as for catchment area treatment |
| Legal framework | The Compensatory Afforestation Fund Act, 2016, passed in August 2016, and the Rules of 2018, notified in August 2018 |
| Fund split | The National Fund gets 10 percent and the State Funds get 90 percent of the money |
| Net Present Value | The present value of the benefits a forest would have given in future, such as timber, carbon and water services, fixed on the basis of an expert committee |
| Earlier arrangement | An ad hoc authority collected the money from 2002 on the orders of the Supreme Court in the Godavarman case, and the money stayed with the Centre until the Act |
Who Manages the Funds and What Can They Be Used For?
- National Authority: the National Compensatory Afforestation Fund Management and Planning Authority is set up with a Governing Body led by the Union Environment Minister, and an Executive Committee led by the Director General of Forests
- State Authorities: each State has a State authority with a Governing Body and a Steering Committee, and an Executive Committee to approve annual plans of operation
- Compensatory afforestation: planting and maintaining forests on non-forest land or degraded forest land
- Other permitted uses: assisted natural regeneration, forest protection, wildlife conservation and management, fire control, soil and moisture conservation, relocation of villages from protected areas and forest research
- Administrative cost: a small share of the money may be used for administration, with limits in the Rules
- Annual plans: State plans of operations are approved by the State Executive Committee and the money is spent through the forest department
- Interest earned: the funds are invested and the interest is used for forest work, with the corpus kept safe
- Link with urban forests: the Nagar Van scheme draws on this money, as in Nagar Van Yojana (Urban Forestry)
What Else Should You Remember?
- Court history: in 2002 the Supreme Court in the Godavarman Thirumulpad case directed that money be collected for compensatory afforestation, which led to an ad hoc body
- 2009 arrangement: the Court approved an ad hoc CAMPA in 2009, where the Centre held the money and gave annual releases to States
- Release in 2019: in July 2019 the Supreme Court allowed release of about Rs 54,685 crore held in the ad hoc fund to the State Funds
- Transfer reported: by early 2021 about Rs 48,000 crore had been transferred to 31 States and Union Territories, as reported
- Utilisation problem: reports show that States used only a part of the funds in the early years, and large balances stayed unspent. For example, a reply in Parliament reported Rs 706 crore of unspent balance in Jammu and Kashmir as of February 2026
- Misuse concerns: the Supreme Court in 2025 sought reply from Uttarakhand after reports that CAMPA funds were used for purposes like buying laptops and travel, which are not allowed. Treat details as reported
- Audit finding: audit reports by the Comptroller and Auditor General have found delays in planting, poor survival of plants and diversion of money in some States
- Survival rate: a main issue is whether compensatory plantations survive and match the quality of the forests lost, since a plantation is not equal to a natural forest
- Location issue: compensatory forests are often planted on degraded or distant land, which does not replace the ecological services lost locally
- Consent of communities: the Forest Rights Act, 2006, requires gram sabha consent, and critics say this step is sometimes skipped
- 2023 amendment: the amendment to the forest law narrowed the area covered, and its effect on compensation is debated
- Link with climate: forests help meet India’s carbon sink target, as in Panchamrit Climate Commitments (COP26)
Why Does It Matter for the Exam?
- Basics: year of the Act, year of the Rules and the 10:90 split
- Concept: what Net Present Value and compensatory afforestation mean
- Bodies: who heads the National and State bodies
- Court link: Godavarman case, 2002 and 2019 orders
- Common errors: reversing the 10:90 split, or confusing NPV with the cost of planting
As an analytical point, CAMPA turns the loss of forest into funds for forests, but money alone does not recreate lost ecosystems. Quality, survival and local benefit need monitoring, and unspent balances show the capacity gap of State forest departments.
Why Is This Topic Important?
- Law 2016 Act, 2018 Rules
- Money NPV and 10:90 split
- Issues Unspent funds and misuse
What Came Next?
The next topic covers the national programme on urban air pollution. Next topic: National Clean Air Programme (NCAP).
Key People and Terms
- CAMPA Compensatory Afforestation Fund Management and Planning Authority
- NPV Net Present Value of forest land
- Compensatory afforestation Planting to replace diverted forest
- Ad hoc CAMPA Earlier interim body
- Plan of operations Annual spending plan
- ANR Assisted natural regeneration
Exam Corner
Points to Remember
- Act: 2016; Rules: 2018.
- Split: 10 percent National, 90 percent State.
- Court release: about Rs 54,685 crore in 2019.
- Charge: NPV plus compensatory afforestation cost.
- Ministry: MoEFCC.
Do Not Confuse With
- CAMPA and Green India Mission A fund from forest diversion versus a mission with budget support
- NPV and compensatory afforestation cost Value of lost forest services versus cost of planting
- National and State Fund 10 percent versus 90 percent
Memory Hook
Ten for the nation, ninety for the State: pay for the forest you take.
Mains Angle
Questions ask whether compensatory funds protect forests. These points give a balanced frame.
- Strengths Dedicated funds, legal frame, State role
- Weaknesses Unspent money, misuse, plantation quality
- Way forward Third party audit, community role, open data
A Question You May Face
An original practice question, not a past paper question.
“Examine the working of the CAMPA fund and discuss the challenges in using it for effective forest restoration.”
How to Answer
- Aim Replace diverted forests.
- Money NPV and 10:90 split.
- Gaps Unspent funds and misuse.
- Way Audit and community role.
GS Relevance
Frequently Asked Questions
What is CAMPA?
CAMPA, the Compensatory Afforestation Fund Management and Planning Authority, manages money paid by users of forest land for compensatory afforestation under the Compensatory Afforestation Fund Act, 2016. The money is used for planting, forest protection and wildlife work, with 10 percent going to the National Fund and 90 percent to State Funds.
What is Net Present Value in CAMPA?
Net Present Value is the present value of the future benefits that a diverted forest would have given, such as timber, carbon storage, water recharge and biodiversity. Project users pay it along with the cost of compensatory afforestation, and it goes into the CAMPA funds for forest restoration and protection.
How is the CAMPA fund divided?
Under the Compensatory Afforestation Fund Act, 2016, 10 percent of the money goes to the National Compensatory Afforestation Fund and 90 percent to the State Compensatory Afforestation Funds. State funds are used according to annual plans of operation approved by State authorities, with the national fund supporting national level work.
What did the Supreme Court do on CAMPA funds?
The Supreme Court in the Godavarman case ordered collection of compensatory funds in 2002, set up an ad hoc authority in 2009 and, in July 2019, allowed release of about Rs 54,685 crore to the States. In 2025 it also sought replies from States on misuse and unspent amounts.
What is the latest status of CAMPA funds?
As reported, about Rs 48,000 crore had been transferred to States by early 2021, but many States show large unspent balances, for example Rs 706 crore in Jammu and Kashmir as of February 2026. The Supreme Court has pressed States on misuse, so current national totals should be checked on the National CAMPA dashboard.
PYQ Practice — Statement Analysis
1 The Compensatory Afforestation Fund Act was passed in 2016.
The Rules followed in 2018.
2 Under the Act, 90 percent of the money goes to the National Fund.
90 percent goes to the State Funds.
3 Net Present Value reflects the future benefits of a forest.
It is paid with the cost of afforestation.
4 The Godavarman case led to the ad hoc CAMPA arrangement.
The Supreme Court ordered it in 2002 and 2009.
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