The government will introduce the Compensatory Afforestation Fund Bill, 2015, in Parliament during the current session.

Approved by the Cabinet on Wednesday, the Bill intends to provide an appropriate institutional mechanism, both at the Centre and States/Union Territories, to ensure expeditious utilisation, in an efficient and transparent manner, of amounts realised in lieu of forest land diverted for non-forest purposes.

This would mitigate the impact of diversion of such forest land, an official statement by the government said.

Quick utilisation The Bill will ensure expeditious utilisation of accumulated unspent amounts available with the ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in an efficient and transparent manner. At present the fund has ₹38,000 crore.

Fresh accrual of compensatory levies and interest on accumulated unspent balance will be around ₹6,000 crore a year.

The utilisation of these amounts will help in implementing measures to mitigate the impact of diversion of forest land.

Creating productive assets The funds will also help in creating productive assets and generate huge employment opportunities in rural areas, especially in backward tribal areas.

The Bill also seeks to provide safety, security and, transparency in use of these funds, which currently are being kept in nationalised banks and are being managed by an ad-hoc body.

The funds will be transferred to non-lapsable interest bearing funds, under the public accounts of the Union of India and each State.

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