
At a Glance
How CAMPA grew and works.
2001-02
A Supreme Court order began the ad-hoc arrangement.
2016
Parliament passed the Compensatory Afforestation Fund Act.
30 Sep 2018
The Act and its rules took effect.
90 : 10
90% goes to the State fund and 10% to the National fund.
In this lesson
What CAMPA Pays For
CAMPA and forest diversion
- A road, mine, or power line may need forest land. The user agency first needs approval under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980. It was earlier called the Forest (Conservation) Act.
- Approval may require payments and other conditions. Payment does not itself permit forest clearing.
- The agency pays for planting on other land. It also pays for lost forest benefits and approved site plans.
- The Environment Ministry explains these payments as compensation for lost forest and ecosystem services.
Three common payments
- Compensatory afforestation (CA): money for trees and long-term care at an approved replacement site.
- Net present value (NPV): a payment for forest benefits lost when land use changes. These include habitat, soil protection, and water regulation. A money value cannot capture them all.
- Other levies: an approval may require a wildlife plan, catchment treatment, or extra planting.
- Each payment has its own purpose. It is not one free-spending account.
How the legal system grew
- Supreme Court directions built an earlier, temporary arrangement for holding these payments.
- Parliament passed the Compensatory Afforestation Fund Act in 2016. It set up National and State funds and authorities.
- The Act and the 2018 rules took effect on 30 September 2018. See the National CAMPA Act and Rules page.
True or False: Paying CAMPA charges automatically gives a company permission to clear forest.
Funds, Plans, and Limits
Follow the money
- The flow is: user agency, State and National funds, approved annual plan, field work, audit.
- The funds sit in the Public Accounts of India and the States. They are not ordinary ministry grants.
- 90% of the collected amount goes to the State fund. The other 10% goes to the National fund.
- States prepare an Annual Plan of Operation (APO). The national authority reviews it. An approval is a plan to spend, not proof of finished work.
What spending is allowed?
- CA money follows the planting and care plan linked to a forest-diversion approval.
- The 2018 rules also allow natural regeneration, fire control, soil work, and wildlife habitat work. Some forest roads, staff facilities, and monitoring are allowed with limits.
- At least 80% of NPV money is for core forest and wildlife work. At most 20% is for related support.
- These percentages apply to the NPV part, not every rupee. The National CAMPA FAQ lists restricted uses.
Local land and rights matter
- Planting needs suitable land, water, species, and years of care. A row of saplings is only a start.
- Forest users may hold rights under the Forest Rights Act, 2006. CAMPA payments do not remove those rights. See The Forest Rights Act, 2006.
- Local species often fit a site better than one fast-growing species.
- Good monitoring checks survival and forest quality. Counting planting pits alone misses both.
True or False: The 2016 Act set up National and State CAMPA funds and authorities.
Evidence and Accountability
An Odisha audit shows the delivery gap
- In an Odisha audit published in 2024, the Comptroller and Auditor General checked older planting duties. See the CAG report.
- It found a 6,995.97-hectare shortfall against the due compensatory-afforestation target up to March 2020.
- The audit described land and work delays. This is an Odisha finding, not an all-India total.
- It shows why payments, approved plans, planted area, and surviving forest must be measured separately.
What can planting replace?
- A young plantation can give shade, absorb some carbon, and protect soil.
- An old forest has complex habitat, species, and local ties. These take much longer to form.
- Some losses may never be fully replaced at another site. Do not call hectares planted “forest restored” without evidence.
- Ask four questions: Where was land found? Which species grew? How many survived? Who uses the land?
Audit the outcome, not only the account
- A financial audit asks whether money was recorded and spent within rules.
- A field audit asks whether work happened at the right place and time.
- An ecological check asks whether trees survived and habitat improved. All three checks matter.
Think it through: why are there two separate problems, not one that the 2016 Act solved?
The 2016 Act fixed the legal problem. CAMPA finally had a statute instead of an ad-hoc Supreme Court arrangement. But a legal base does not fix how money is spent once collected. Later audits still found funds diverted to unrelated purchases, planting delayed by years, and money left undistributed. A sound law and sound day-to-day management are two different achievements.
True or False: The National CAMPA Fund is part of the Consolidated Fund of India.
True or False: All CAMPA money may be spent freely on any environment project.
True or False: A hectare of planted trees always replaces a hectare of old natural forest.
Current Affairs
Digital plans and field checks in 2026
- At its July 2026 meeting, National CAMPA discussed digital Annual Plans of Operation for 2026-27. See the government release.
- It also reviewed geographic monitoring and the audit of its 2024-25 accounts.
- Digital plans can improve tracking. They do not prove that trees survived or habitats recovered.
- For the wider planting push, see India’s Afforestation and Plantation Campaigns.
True or False: A digital annual plan is useful, but field results still need checking.
Quick Q&A
What does CAMPA stand for?
Compensatory Afforestation Fund Management and Planning Authority.
When did the Act and rules take effect?
30 September 2018.
What is the State and National fund split?
90% and 10%.
Which Account holds the funds?
The Public Account.
Does paying CAMPA charges allow clearing forest?
No. Approval conditions still apply.
🎲 Practice: CAMPA
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