Consider the following statements: 1. As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels. 2. People’s participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016. Which of the statements given above is/are correct?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2019, Q77

Contents21
UPSC Prelims GS2019Environment
  1. A1 only
  2. B2 only
  3. CBoth 1 and 2
  4. DNeither 1 nor 2
Show answer

Answer: (A) 1 only

The correct answer is (A) — 1 only.

Statement 1 is correct — the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) exists at both the national level and state level as per the CAMPA Act, 2016.

Statement 2 is wrong — the Act does not make people's participation mandatory in compensatory afforestation programmes.

While public involvement is encouraged in forestry, this particular law does not require it.

Tip: CAMPA = national + state level bodies, but no mandatory public participation.

Why this was asked

CAMPA manages over ₹50,000 crores collected from projects that cut forests, making it one of India's largest environmental funds.

The Compensatory Afforestation Fund Act was passed in 2016 after decades of money sitting unused, so UPSC tests whether students know the new institutional structure versus the participation requirements.

The question tests knowledge of institutional design (two-tier structure) versus procedural requirements (mandatory participation) - common UPSC trap between what exists and what is required.

Compensatory Afforestation Fund Management & Planning Authority (CAMPA)

Environment Compensatory Afforestation Fund Management and Planning Authority CAMPA

CAMPA: Structure, Functions & UPSC Key Facts

Must know

CAMPA exists at both National and State levels as per CAMPA Act, 2016

Manages funds collected from forest diversion for industrial projects

People's participation is NOT mandatory in compensatory afforestation programmes

Good to know

Established under Ministry of Environment, Forest and Climate Change

What is CAMPA

CAMPA is a statutory body that manages funds collected from industries and projects that divert forest land for non-forest purposes. When forest land is given for mining, roads, or infrastructure, the project pays money for compensatory afforestation — planting trees elsewhere to make up for the loss.

CAMPA Structure

Level

Official Name

Headed By

Key Role

National

National CAMPA

Director General of Forests

Policy formulation, fund allocation to states

State

State CAMPA

Principal Chief Conservator of Forests

Implementation of compensatory afforestation in the state

How CAMPA Works

%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
  s1["`**Forest Diversion**
Industry gets forest land for project after environmental clearance`"]
  s2["`**Payment to CAMPA**
Industry pays compensatory afforestation fund and Net Present Value`"]
  s3["`**Fund Management**
National CAMPA receives money, allocates to relevant State CAMPA`"]
  s4["`**Afforestation**
State CAMPA uses funds to plant trees on degraded forest land`"]
  s1 --> s2
  s2 --> s3
  s3 --> s4

Key Functions

Fund Management: Manages over ₹60,000 crore collected from forest diversion cases

Afforestation Projects: Plants trees on degraded forest land to compensate for forest loss

Monitoring: Tracks survival and growth of compensatory plantation

Capacity Building: Trains forest officials and provides technical support

Research: Promotes research in forestry and wildlife conservation

Question Context

This 2019 UPSC question tested two specific provisions of CAMPA Act, 2016. Statement 1 was correct because the Act clearly establishes CAMPA at both national and state levels. Statement 2 was the trap — while public participation is generally encouraged in environmental programmes, the CAMPA Act does not make it mandatory.

Exam traps

Trap: People's participation is NOT mandatory under CAMPA Act — don't assume all environmental laws require public involvement

Confusion: CAMPA vs Forest Rights Act — FRA mandates community consent, CAMPA does not

Mix-up: CAMPA manages compensatory afforestation funds, not the actual tree planting (that's done by Forest Department)

Memory aid: CAMPA = National + State structure, like GST Council or SGST/CGST setup

Compensatory Afforestation Fund Act, 2016

Environment Compensatory Afforestation Fund Act, 2016

CAMPA Act 2016: Provisions & Environmental Law Context

Must know

Enacted in 2016 to manage funds from forest diversion cases

Establishes National and State CAMPA with defined roles

Does NOT mandate people's participation in afforestation programmes

Good to know

Covers funds collected under Forest Conservation Act, 1980

Background

Before 2016, compensatory afforestation funds collected from industries were lying unused with state governments. The CAMPA Act, 2016 was enacted to ensure these funds are actually used for forest restoration and conservation activities.

Key Provisions

Provision

Details

UPSC Relevance

Fund Sources

Compensatory Afforestation + Net Present Value + other penalties

Know what money goes into CAMPA

Two-Tier Structure

National CAMPA + State CAMPA

Statement 1 of the question

Fund Utilization

90% to states, 10% with Centre

Fund allocation pattern

People's Role

Encouraged but NOT mandatory

Statement 2 trap

Monitoring

Regular audits and progress reports

Accountability mechanism

CAMPA Act in Forest Law Framework

# India's Forest Laws
## Forest Conservation Act, 1980
- Prohibits forest diversion
- Requires Central approval
- Collects compensatory funds
## CAMPA Act, 2016
- Manages collected funds
- National + State structure
- Ensures fund utilization
## Forest Rights Act, 2006
- Community forest rights
- Mandatory public participation
- Tribal land rights

Permitted Activities Under CAMPA Funds

Compensatory Afforestation: Planting trees on non-forest land to compensate for diverted forest

Assisted Natural Regeneration: Helping degraded forests recover naturally

Forest Protection: Boundary marking, fire protection, anti-poaching measures

Wildlife Conservation: Habitat improvement, wildlife corridors

Infrastructure: Forest roads, wireless communication for forest staff

Exam traps

Key Trap: CAMPA Act does NOT require public participation — don't confuse with Forest Rights Act

Date Confusion: CAMPA Act is 2016, Forest Conservation Act is 1980, Forest Rights Act is 2006

Scope Limit: CAMPA only manages funds, actual afforestation is done by State Forest Departments

Structure: Both National and State CAMPA exist — this was Statement 1 in the question

Forest Conservation Act, 1980

Environment

Forest Conservation Act, 1980: The Foundation of India's Forest Protection

Must know

Prohibits diversion of forest land without Central Government approval

Enacted in 1980 after massive deforestation in 1970s

Source of compensatory afforestation funds managed by CAMPA

Good to know

Applies to all forests, regardless of ownership

Why This Act Matters

The Forest Conservation Act, 1980 is the backbone of India's forest protection. It stops state governments from freely giving forest land to industries. Any diversion needs Central Government permission and payment of compensatory costs — this is where CAMPA funds come from.

Key Provisions vs CAMPA Act

Aspect

Forest Conservation Act, 1980

CAMPA Act, 2016

Main Purpose

Prevent forest diversion

Manage funds from forest diversion

Authority

Central Government approves diversion

CAMPA manages collected money

Fund Collection

Collects compensatory afforestation fee

Manages and utilizes collected fees

Structure

Central approval system

National + State CAMPA bodies

Public Role

Public hearing for large projects

No mandatory public participation

Forest Diversion Process

%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
  s1["`**Project Proposal**
Industry applies to divert forest land for mining/infrastructure`"]
  s2["`**State Recommendation**
State government examines and recommends to Centre`"]
  s3["`**Central Approval**
Ministry of Environment approves under Forest Conservation Act`"]
  s4["`**Payment to CAMPA**
Industry pays compensatory afforestation and NPV charges`"]
  s5["`**Fund Utilization**
CAMPA uses funds for afforestation elsewhere`"]
  s1 --> s2
  s2 --> s3
  s3 --> s4
  s4 --> s5

What Requires Central Approval

Any diversion of forest land for non-forest purposes

Mining operations in forest areas

Infrastructure projects like roads, railways, dams through forests

Transmission lines and pipelines through forests

Regularization of past encroachments on forest land

Exam traps

Confusion: Forest Conservation Act collects CAMPA funds, CAMPA Act manages them

Scope: Applies to all forests — government, private, or community-owned

Authority: Only Central Government can approve forest diversion, not state governments

Timeline: 1980 Act came first, created the fund collection system that 2016 CAMPA Act now manages

Public Participation in Environmental Laws

Environment People's participation

Public Participation Requirements Across Environmental Laws

Must know

CAMPA Act does NOT mandate people's participation

Forest Rights Act, 2006 makes community consent mandatory

EIA Notification requires public hearings for major projects

Good to know

73rd/74th Amendments involve panchayats in environmental planning

Why Public Participation Varies

Different environmental laws have different approaches to public involvement. Some make it mandatory (like Forest Rights Act), others encourage it (like CAMPA), and some require it only for major projects (like EIA). UPSC often tests these distinctions.

Public Participation Requirements

Law

Public Participation

Level

Example

CAMPA Act, 2016

NOT mandatory

Encouraged

No requirement for community involvement in afforestation

Forest Rights Act, 2006

Mandatory

Community consent required

Gram Sabha approval needed for forest diversion

EIA Notification, 2006

Mandatory for Category A

Public hearings

Coal mining, thermal power projects need public hearing

Wildlife Protection Act

NOT mandatory

Consultative

No legal requirement for public input in sanctuary management

Water Act, 1974

NOT mandatory

Advisory

Pollution control boards may consult public

Types of Environmental Participation

# Public Participation in Environment
## Mandatory Participation
- Forest Rights Act
- EIA for major projects
- Gram Sabha consent
- Public hearings
## Encouraged Participation
- CAMPA programmes
- Joint Forest Management
- Eco-development
- Awareness campaigns
## No Legal Requirement
- Wildlife sanctuary management
- Pollution monitoring
- Forest working plans
- Species recovery programmes

Why CAMPA Doesn't Mandate Public Participation

Technical Focus: CAMPA deals with fund management and plantation techniques, not community rights

Implementation by Experts: Afforestation requires technical expertise, done by Forest Department

Different from Diversion: Public participation needed when taking forest land, not when restoring it

Voluntary Involvement: Communities can participate if they want, but law doesn't require it

Focus on Results: Emphasis on actual tree survival and forest restoration, not process

Exam traps

Major Trap: Don't assume all environmental laws require public participation — CAMPA doesn't

Confusion: Forest Rights Act needs community consent, CAMPA Act doesn't — different purposes

EIA Trap: Public hearing needed for Category A projects only, not all environmental projects

Participation vs Consultation: Some laws require binding consent, others just advisory consultation