Page 8 - Environmental Governance Architecture for India - Suggestions
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Discussion Paper

BOX 4: THE COMPENSATORY AFFORESTATION FUND BILL 2015

• A National Compensatory Afforestation Fund at Central level and a State Compensatory Afforestation Fund at State level; along with a National
Compensatory Fund Authority and a State Compensatory Fund Authority.

• All payments towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value,
catchment area treatment plan or any money for compliance of conditions stipulated by the Central Government while according approval under
the provisions of the Forest (Conservation) Act, 1980 or due under theWild Life (Protection) Act, 1972 as a consequence to be credited to the State
Fund, and 10% transferred to the National Fund;

• State Fund to be used for artificial regeneration (plantation), assisted natural regeneration, forest management, forest protection, infrastructure
development, wildlife protection and management, supply of wood and other forest produce saving devices and other allied activities in the
manner as may be prescribed; interest may be used for meeting the expenses of the State Authority. The National Authority will approve annual
plan of operations of the State Authorities for the purpose;

• National Fund to be used for meeting the expenses of the National Authority or for a “scheme’’including any institute, society, centre of excellence
in the field of forest and wildlife, pilot schemes, standardisation of codes and guidelines and such other related activities for the forestry and
wildlife sector.

• The Annual Report of the National Authority shall be laid in Parliament and of the State Authority in the State Legislature; the accounts shall be
audited by the C&AG.

• Central Government may make rules for the management of the National Fund by the National Authority and of the State Fund by the State
Authorities. It may also make rules for the conduct of business by the National and State Authorities and their organs.

• The Central Government may, from time to time, by writing give such directions to the National Authority and each State Authority, as it may think
necessary.

• In the Statement of Objects and Reasons, the Ministry has stated that the Hon’ble Supreme Court in its Judgment dated the 26th September 2005
in the case TN.Godavarman Thirumulpad vs Union of India [Writ Petition (C) No. 202 of 1995], observed that the fund generated for protecting
ecology and providing regeneration should not be treated as a fund under article 266, article 283 or article 284 of the Constitution. The Funds are
therefore kept outside the Consolidated Fund of India or Public Account of India.

which were moved from section 18 to a new section ƒƒ Replacing the State Wild Life Advisory Board with
26A for technical reasons, with a proviso that in the a State Board for Wild Life chaired by the Chief
case of territorial waters, the prior approval of the Minister (replacing section 6 of main Act).
Central Government shall be taken for declaring a
sanctuary. A significant change was the replacement ƒƒ Providing for ‘prior approval’ by the National
of the phrase ‘wild animals and birds’ by ‘wild animal, Board before the State Government can permit
birds and plants’ in the long title of the Act and the certain activities in sanctuaries and reserves.
addition of a new chapter ( Chapter IIIA) dealing with (proviso added to section 33 of the main Act).
protection of specified plants.
ƒƒ Providing for a recommendation by the National
The Wild Life Act was further amended in 2002 Board and for consultation in certain cases (Section
(Act no. 16 of 2003) to make important changes in the 35(5) and (6) of the main Act as amended).
governance structure including the following:
ƒƒ Linking the legislation (through the long title) to It may be noted here that the Supreme Court in
WP(Civil) 337/1995 , vide its order dated 9th May 2002
the ecological and environmental security of the had directed that no permission under Section 29 of
country. the Wild Life ( Protection ) Act, 1972 should granted
ƒƒ Creating a National Board for Wild Life ( replacing a without getting approval of the Standing Committee
non-statutory Indian Board for Wildlife) chaired by of Indian Board for Wildlife. The Government enacted
the Prime Minister and for a Standing Committee an amendment to the Wild Life (Protection) Act, 1972,
of the Board chaired by the Minister in charge of vide Act 16 of 2003 to inter-alia give the Board and its
Forest and wildlife.( section 5A and B of the main Committee a statutory status. The relevant changes
Act).

8 FEBRUARY 2016
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