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Q68 (IAS/2019) Environment & Ecology › Environment Laws, Policies & Institutions (India) › Compensatory Afforestation Fund Official Key

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?

Result
Your answer: —  ·  Correct: A
Explanation

The correct answer is option A (Statement 1 only is correct).

The Compensatory Afforestation Fund Act, 2016 establishes a National Compensatory Afforestation Fund Management and Planning Authority at the national level, and a State Compensatory Afforestation Fund Management and Planning Authority in each State and Union territory[1]. This confirms that Statement 1 is correct—the law does provide for CAMPA authorities at both National and State levels.

However, Statement 2 is incorrect. While the funds are primarily spent on afforestation to compensate for loss of forest cover, regeneration of forest ecosystem, wildlife protection and infrastructure development[2], there is no provision in the documents that makes people's participation mandatory in compensatory afforestation programmes under the Act. The Act focuses on fund management and utilization by designated authorities rather than mandating community participation.

Therefore, only Statement 1 is correct, making option A the right answer.

Sources
  1. [1] https://www.indiacode.nic.in/bitstream/123456789/2151/1/A2016-38.pdf
  2. [2] Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > Salient features > p. 168
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
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PROVENANCE & STUDY PATTERN
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Consider the following statements : 1. As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both N…
At a glance
Origin: Mixed / unclear origin Fairness: Moderate fairness Books / CA: 5/10 · 0/10

Statement 1 is standard static material found in Shankar IAS/Singhania. Statement 2 is derived from the *criticism* of the Act (its conflict with FRA 2006). To solve this, you needed to know what the Act *failed* to include, not just what it included.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Under the Compensatory Afforestation Fund Act, 2016 (India), does the law establish Compensatory Afforestation Fund Management and Planning Authorities (CAMPA) at both the national and state levels?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > ao. 4 zCompensatory Afforestation Fund Management and Planning Authority (C")- > p. 167
Presence: 4/5
“ao. 4 . zCompensatory Afforestation Fund Management and Planning Authority (C' - p.) r While according prior approval under the !-arest (Conservation) Act, 1980 for diversion of forest land for non-forest purpose, Central Goverment stipulates conditions that amounts shall be realised from the user agencies to undertake compensatory afforestation and such other activities related to conservation and development of forests, to mitigate impact of diversion of forest land. • r In April 2004, the central government, under the orders of the Supreme Court, constituted the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) for the management of money towards compensatory afforestation, and other money recoverable, in compliance of the conditions stipulated by the central government and in accordance with the Forest (Conservation) Act,• r CAMPA as envisaged by the Supreme Court of India vide its order dated 2013.0.0.”
Why this source?
  • Describes constitution of a CAMPA body by the Central Government (April 2004) for managing compensatory afforestation monies.
  • Mentions CAMPA as envisaged via Supreme Court orders, linking a formal institutional setup to legal/administrative action.
Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > Salient features > p. 168
Presence: 4/5
“• These Funds will receive payments for: (i) compensatory afforestation, (ii) net present value of forest (NPV), and (iii) other project specific payments. The National Fund will receive all of these funds, and the State Funds will receive the remaining 90/10.• These Funds will be primarily spent on afforestation to compensate for loss of forest cover, regeneration of forest ecosystem, wildlife protection and infrastructure development”
Why this source?
  • Refers explicitly to a National Fund and State Funds receiving payments for compensatory afforestation and related charges.
  • Implies a two-tier financial/administrative structure (national and state) for managing these funds.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > A.12 Indian Economy > p. 621
Presence: 3/5
“• Disbursal of revolving fund (RF) to self-help groups through PAiSA Portal in all States/UTs. \bullet Employment push in urban/semi-urban/rural areas by using Compensatory Afforestation ò Management & Planning Authority (CAMPA) funds. These funds to be used by State governments mainly in afforestation and plantation works.”
Why this source?
  • Notes use of CAMPA funds by State governments for afforestation and plantation works.
  • Supports the idea that CAMPA-related resources and implementation operate at the state level.
Statement 2
Does the Compensatory Afforestation Fund Act, 2016 (India) make people's participation mandatory in compensatory afforestation programmes carried out under the Act?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > A.12 Indian Economy > p. 621
Strength: 4/5
“• Disbursal of revolving fund (RF) to self-help groups through PAiSA Portal in all States/UTs. \bullet Employment push in urban/semi-urban/rural areas by using Compensatory Afforestation ò Management & Planning Authority (CAMPA) funds. These funds to be used by State governments mainly in afforestation and plantation works.”
Why relevant

States that CAMPA funds are disbursed to self-help groups (via the PAiSA Portal) and used to push employment through afforestation/plantation works.

How to extend

A student could check whether the Act or CAMPA rules tie fund disbursal to SHGs as mandatory beneficiaries or only as an option to infer if participation is required.

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > F's > p. 169
Strength: 4/5
“s F's o Social forestry also aims at raising plantations by the common man so as to meet the growing demand for food, fuel wood, fodder, fiber and fertilizer etc, thereby reducing the pressure on the traditional forest area. && 5|{ANKAR "- r\ ,."r A O *, r With the introduction of this scheme, the government formally recognised the local communities' rights to forest resources, and encouraged rural participation in the management of natural resources. Through the social forestry scheme, the government has invoived community participation, as part of a drive towards afforestation, and rehabilitating the degraded forest and common lands.”
Why relevant

Describes social forestry as formally recognising local communities' rights and encouraging rural participation in natural resource management and afforestation.

How to extend

Use this pattern—policy tendency to involve communities—to examine the Act for explicit mandatory clauses vs. policy encouragement of participation.

NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 2: Nationalism in India > Community and Conservation > p. 32
Strength: 4/5
“The famous Chipko movement in the Himalayas has not only successfully resisted deforestation in several areas but has also shown that community afforestation with indigenous species can be enormously successful. Attempts to revive the traditional conservation methods or developing new methods of ecological farming are now widespread. Farmers and citizen's groups like the Beej Bachao Andolan in Tehri and Navdanya have shown that adequate levels of diversified crop production without the use of synthetic chemicals are possible and economically viable. In India joint forest management (JFM) programme furnishes a good example for involving local communities in the management and restoration of degraded 16 CONTEMPORARY INDIA – II”
Why relevant

Gives examples (Chipko, Joint Forest Management) where community afforestation and local involvement are institutionalised practices for restoration and management.

How to extend

Compare these established community-oriented programmes with the Act's provisions to see if it replicates JFM-style mandatory involvement or merely allows/community-supports it.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 5: Natural Vegetation and National Parks > FOREST CONSERVATION > p. 38
Strength: 3/5
“Some of the steps which can go a long way in making forests healthy and sustainable are as under: • (i) Afforestation: There should be massive afforestation programmes with main emphasis being on the production of fuel-wood, timber, grasses, and small trees to cover up degraded and denuded lands.• (ii) Plantation of trees along the roads, railway lines, rivers, and canal banks, and along lakes and ponds.• (iii) Development of Green-belts in the urban areas and plantation of trees on community lands.• (iv) Plantation of community forests on Gram-Sabha lands.• (v) Villagers should be given loans at easy interest rates to revive degraded forest.• (vi) Encroachment of agriculture in forests should be made punishable.• (vii) The customary rights and concessions like grazing, collection of fuel-wood and fodder from forests by the local people”
Why relevant

Lists community-oriented afforestation measures (community forests on Gram-Sabha lands, village loans to revive degraded forest) as standard steps to make forests sustainable.

How to extend

A student could use this list as a checklist to inspect whether the Act requires similar community-level mechanisms (e.g., Gram Sabha roles, loans, community forests).

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > ao. 4 zCompensatory Afforestation Fund Management and Planning Authority (C")- > p. 167
Strength: 3/5
“ao. 4 . zCompensatory Afforestation Fund Management and Planning Authority (C' - p.) r While according prior approval under the !-arest (Conservation) Act, 1980 for diversion of forest land for non-forest purpose, Central Goverment stipulates conditions that amounts shall be realised from the user agencies to undertake compensatory afforestation and such other activities related to conservation and development of forests, to mitigate impact of diversion of forest land. • r In April 2004, the central government, under the orders of the Supreme Court, constituted the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) for the management of money towards compensatory afforestation, and other money recoverable, in compliance of the conditions stipulated by the central government and in accordance with the Forest (Conservation) Act,• r CAMPA as envisaged by the Supreme Court of India vide its order dated 2013.0.0.”
Why relevant

Notes constitution of CAMPA to manage monies for compensatory afforestation and related activities, indicating institutional funding mechanisms central to implementation.

How to extend

Query whether CAMPA/Central/State rules conditioned fund release on local/people's participation (i.e., whether implementation conditions make participation mandatory).

Pattern takeaway: UPSC tests the 'Spirit of the Law' alongside the text. If a law was controversial for excluding people's rights (like CAMPA vs FRA), they will frame a statement claiming the opposite to test if you know the debate.
How you should have studied
  1. [THE VERDICT]: Mixed Bag. Statement 1 is a Sitter (Shankar IAS Ch 10). Statement 2 is a Conceptual Trap based on current affairs debates (The Hindu editorials/PRS analysis).
  2. [THE CONCEPTUAL TRIGGER]: Statutory Bodies in Environment & Forest Governance (CAMPA, NBA, CPCB).
  3. [THE HORIZONTAL EXPANSION]: 1. Fund Split: 90% to State Fund, 10% to National Fund. 2. Nature: Non-lapsable, interest-bearing, under 'Public Account' (not Consolidated Fund). 3. Usage: Permitted for artificial regeneration/silviculture; Prohibited for payment of salary/travelling allowances. 4. Origin: T.N. Godavarman Thirumulpad vs Union of India (2002). 5. Conflict: The Act does not explicitly mandate Gram Sabha consent, unlike FRA 2006.
  4. [THE STRATEGIC METACOGNITION]: When studying Acts, do not stop at 'Features'. You must read the 'Issues/Challenges' section. The biggest criticism of CAMPA was that it ignored the mandatory Gram Sabha consent required under FRA. UPSC turned this 'missing provision' into a trap statement.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 CAMPA institutional structure (National vs State funds)
💡 The insight

CAMPA operates through a National Fund and separate State Funds to manage compensatory afforestation finance.

High-yield for questions on environmental governance and fiscal decentralisation in forestry; links to Union–State roles and fund allocation mechanisms. Helps answer questions on design of environmental funds, implementation tiers, and intergovernmental fiscal flows.

📚 Reading List :
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > Salient features > p. 168
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > A.12 Indian Economy > p. 621
🔗 Anchor: "Under the Compensatory Afforestation Fund Act, 2016 (India), does the law establ..."
📌 Adjacent topic to master
S1
👉 Judicial role in environmental institution formation
💡 The insight

The Compensatory Afforestation institutional mechanism was shaped by Supreme Court orders leading to CAMPA's constitution.

Important for UPSC topics on judicial activism and its impact on policy-making, especially in environmental governance. Useful for essays and prelims/GS mains questions on checks and balances and non-legislative creation of administrative bodies.

📚 Reading List :
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > ao. 4 zCompensatory Afforestation Fund Management and Planning Authority (C")- > p. 167
🔗 Anchor: "Under the Compensatory Afforestation Fund Act, 2016 (India), does the law establ..."
📌 Adjacent topic to master
S1
👉 Use of earmarked environmental funds for livelihood and afforestation schemes
💡 The insight

CAMPA funds are earmarked for afforestation, plantations, and employment-linked schemes at state level.

Relevant for questions on scheme design, environmental finance, and rural employment linkages. Connects environmental policy with social schemes (employment, mangrove initiatives) and implementation challenges.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > A.12 Indian Economy > p. 621
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 4: Aquatic Ecosystem > 4.8.6. MISHTI scheme > p. 50
🔗 Anchor: "Under the Compensatory Afforestation Fund Act, 2016 (India), does the law establ..."
📌 Adjacent topic to master
S2
👉 Compensatory Afforestation and CAMPA
💡 The insight

Compensatory afforestation for diversion of forest land is implemented through institutional mechanisms such as CAMPA and is a mandated mitigation measure.

High-yield for UPSC because questions often probe legal/institutional responses to forest diversion and how mitigation obligations are enforced. Links environment law, institutional design and implementation (Forest Conservation Act, CAMPA). Enables answers on how statutory or quasi‑judicial bodies channel forest-restoration obligations and funds.

📚 Reading List :
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 23: India and Climate Change > 23.9.4. Forestry > p. 301
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > ao. 4 zCompensatory Afforestation Fund Management and Planning Authority (C")- > p. 167
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > Salient features > p. 168
🔗 Anchor: "Does the Compensatory Afforestation Fund Act, 2016 (India) make people's partici..."
📌 Adjacent topic to master
S2
👉 Community participation in forest management (Social Forestry & JFM)
💡 The insight

Local communities and organized groups are used as mechanisms to raise plantations and manage degraded forest/common lands under social forestry and JFM approaches.

Important for UPSC because many questions compare top‑down conservation with participatory models; connects environment policy to rural livelihoods and institutional arrangements. Useful for essays and mains answers assessing effectiveness and equity of forest programmes.

📚 Reading List :
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > F's > p. 169
  • NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 2: Nationalism in India > Community and Conservation > p. 32
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > A.12 Indian Economy > p. 621
🔗 Anchor: "Does the Compensatory Afforestation Fund Act, 2016 (India) make people's partici..."
📌 Adjacent topic to master
S2
👉 Financial architecture for compensatory afforestation (NPV, National/State Funds, disbursal mechanisms)
💡 The insight

Compensatory afforestation funding includes NPV and project payments routed to National and State Funds and disbursed for afforestation and related activities, sometimes via portals to local groups.

Useful for questions on public finance and implementation of environmental programmes; helps explain how money flows affect delivery, prioritization and local employment outcomes. Enables analysis of accountability, fund allocation and state‑centre roles.

📚 Reading List :
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > Salient features > p. 168
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > A.12 Indian Economy > p. 621
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 10: Indian Forest > ao. 4 zCompensatory Afforestation Fund Management and Planning Authority (C")- > p. 167
🔗 Anchor: "Does the Compensatory Afforestation Fund Act, 2016 (India) make people's partici..."
🌑 The Hidden Trap

The specific financial nature of the fund: It is held in the 'Public Account of India' (and States), not the Consolidated Fund. Also, the exact split is 90% (State) : 10% (Centre). This is a prime candidate for a 'swap' trap in future papers.

⚡ Elimination Cheat Code

Apply the 'Rights vs. Finance' Heuristic. Acts named 'Fund' or 'Management' (CAMPA, DMF) are usually bureaucratic and top-down. Acts named 'Rights' or 'Guarantee' (FRA, MGNREGA) are participatory. Statement 2 claims 'mandatory participation' in a financial management act—this is structurally unlikely in Indian administrative law. Eliminate it.

🔗 Mains Connection

Mains GS2 (Federalism & Devolution): CAMPA represents 'Fiscal Centralization' where Centre collects NPV but States implement. Mains GS3 (Environment vs Rights): The conflict between 'Bureaucratic Conservation' (CAMPA) and 'Democratic Conservation' (FRA/Gram Sabha).

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