Levy charged for using forestland set to go up

NEW DELHI: The government is set to revise the levy charged from project developers for using forestland. It has asked the Indian Institute of Forest Management (IIFM) to submit a report within three months on revising the net present value of forestland, which is charged from project developers as part of the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund that was set up following a Supreme Court directive.

The imposition of the net present value, which was to be used by CAMPA to initiate afforestation, however, did not reduce the rate of cutting of jungles for industrialization. Rather, there has been record rate of deforestation since its imposition. Consequently, the fund grew substantially, and has accumulated over Rs 25,000 crore.

The funds — much more than the environment ministry’s budgeted provisions for afforestation — had become a bone of contention between states and the Centre, with the former asking the sum to be repatriated after it was collected from project developers. In fact, states started asking for using the funds for more than compensatory afforestation. Several states have demanded that the funds be used to augment forest department’s infrastructure and capacity building. The wildlife experts asked that the funds be used for conservation and the ministry has contended with using the funds for its Green India Mission under the National Action Plan for Climate Change.

At present, the government charges a maximum of Rs 1043,000 per hectare for leveling dense forest, and Rs 6,99,000 is the minimum charge.

The IIFM – a green ministry institution – has been mandated to review the slab rates imposed for using different types of forests and also re-assess whether some projects should get a partial or complete exemption from the levy.