In a significant policy shift, the Union Ministry of Environment, Forest and Climate Change has relaxed key guidelines governing forest land restoration. The new rules now permit both government and non-government entities to carry out afforestation and restoration work on forest land without the mandatory requirement of compensatory afforestation or payment of the Net Present Value (NPV).
Key Changes and Rationale Behind the Move
The decision was formalised through a circular issued to all states on January 2, 2024. This action followed a recommendation from the ministry's Forest Advisory Committee (FAC) during its meeting held on December 2, 2023. The changes are implemented under the provisions of the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023.
The ministry clarified that the exemption from compensatory costs will apply specifically to activities conducted under approved working plans. These are detailed, decade-long blueprints for forest management prepared by state forest departments. The FAC reasoned that plantations established under these plans, with the primary goal of ecological restoration, should not be classified as purely commercial or non-forestry ventures.
Alignment with the Green Credit Programme
Officials stated that the revised guidelines are designed to synchronise with the government's newly launched Green Credit Programme (GCP). The GCP framework encourages voluntary ecological actions by both public and private players. Under this programme, entities that restore degraded forest land can earn 'green credits'.
The ministry's circular asserts that harmonising the rules with the GCP will provide "clarity in applicability" for all entities, foster wider participation in restoration projects, and bolster ecological sustainability. It also ensures these activities remain compliant with the Forest (Conservation) Act and its subsequent amendments.
Assisted natural regeneration work carried out in line with forest working plans, whether by government or private bodies, will now be officially deemed as 'forestry activities'. Consequently, they will be exempt from the standard compensatory levies.
Procedure and Political Backlash
The ministry has outlined a specific procedure for implementing these projects. State governments must approve such afforestation initiatives only after a detailed project report is prepared, aligning with the working plan, and receives a green light from a competent authority. Furthermore, states have been given the flexibility to create their own frameworks for utilising such restored plantations and for revenue-sharing arrangements on a case-by-case basis.
However, the policy shift has ignited immediate political controversy. Senior Congress leader Jairam Ramesh took to social media platform X to accuse the Narendra Modi-led government of opening the door to the privatisation of forest management. Ramesh referenced the controversial amendments to the Forest Conservation Act passed in 2023, claiming critics had warned this would be the outcome.
"This is exactly what has happened – as evidenced from the circular…this is just the beginning," Ramesh stated in his post. His criticism underscores a growing debate over the role of private entities in managing India's vital forest resources, balancing ecological restoration with concerns over commercial exploitation.
