Brief Context
Context The Union Ministry of Environment, Forests and Climate Change (MoEFCC) notified amendments to the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023, formerly the Forest Conservation Act, 1980. Background According to 2023 guidelines forest land leased for commercial purposes attracted: Net Present Value (NPV) payments: A one-time charge reflecting the economic value of ecosystem services lost due to diversion of forest land. Compensatory Afforestation (CA) obligations: Mandatory afforesta
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Syllabus: GS2/ Governance, GS3/ Environment
Context
- The Union Ministry of Environment, Forests and Climate Change (MoEF&CC) notified amendments to the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023, formerly the Forest Conservation Act, 1980.
Background
- According to 2023 guidelines forest land leased for commercial purposes attracted:
- Net Present Value (NPV) payments: A one-time charge reflecting the economic value of ecosystem services lost due to diversion of forest land.
- Compensatory Afforestation (CA) obligations: Mandatory afforestation undertaken to compensate for diverted forest land.
- Plantation of medicinal plants was treated as a non-forest activity, requiring prior Union approval.
What are the New Rules?
- Commercial plantations are now legally classified as “forestry activities” under the amended Van (Sanrakshan Evam Samvadhan) Adhiniyam, 2023.
- Exemption from Levies: Entities undertaking these plantations are no longer required to pay Net Present Value (NPV) or undertake mandatory compensatory afforestation.
- Simplified Approvals: Plantations that align with state-approved “Working Plans” and are supervised by forest departments do not require prior central government approval.
- Leasing to Private Entities: The central government can specify terms and conditions for leasing forest land to private companies for plantation purposes.
Why the Paper Industry Pushed for Easing Norms?
- Domestic wood availability in India is estimated at around nine million tonnes per year.
- Current demand stands at approximately eleven million tonnes per year, impacting domestic paper production and increased input costs.
- Rising Dependence on Imports: Despite being the third-largest paper producer globally, India’s imports of paper have increased sharply particularly from ASEAN countries.
- Underutilised Capacity in the Paper Sector: India has around 900 pulp and paper mills, of which only about 550 are operational.
- The inadequate access to raw materials has prevented mills from operating at optimal capacity.
Environmental Concerns
- Environmental groups caution that;
- Commercial plantations may not replicate the ecological functions of natural forests.
- Monoculture plantations can adversely affect biodiversity, soil health and water availability.
- The amendment raises questions about the balance between ease of doing business and ecological safeguards.
| India’s Paper Industry – India’s Paper Industry accounts for about 5% of the world’s production of paper. – The mills use a variety of raw material viz. wood, bamboo, recovered paper, bagasse, wheat straw, etc. a. In terms of share in total production, approximately 18-20% is based on wood, 74-76% on recycled fibre and 6-8% on agro-residue. – Over 90 percent of wood is currently sourced from agroforestry and farm forestry, not from natural forests. – Approximately 500,000 farmers are engaged in growing plantation species such as eucalyptus, poplar, subabul, casuarina and acacia across about 1.2 million hectares. |
Way Ahead
- Commercial plantations should be restricted to degraded and open forest lands, avoiding ecologically sensitive areas.
- Strong monitoring and ecological safeguards are needed to prevent monoculture-driven environmental harm.
- Agroforestry and recycled fibre use should be further promoted to reduce pressure on forest land.
Source: DTE