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This report presents an evaluation of the concept of Compensatory Afforestation and its implementation across various states in India, offering insights into the current status, achievements, and challenges associated with this crucial environmental initiative. The analysis begins with an exploration of the policy and legal frameworks that govern compensatory afforestation in India. Despite having comprehensive guidelines, significant gaps remain betweenpolicy directives and their actual implementation. This underscores the need for ongoing policy updates to effectively address emerging environmental challenges.