Rules for private afforestation work on forest land eased

The Union environment ministry has cleared the way for private and government entities to lease forest land for afforestation and timber projects without paying mandatory environmental compensation fees, marking a significant shift in India’s forest conservation policy.

In a letter to state governments dated January 2, the ministry stated that afforestation and silvicultural activities — the practice of controlling forest growth and quality — undertaken under approved state plans will now be classified as “forestry activities.”

Because of this new classification, these projects will be exempt from compensatory afforestation requirements and net present value (NPV) fees. These are significant financial mandates typically charged to developers to offset the loss of forest land and ecosystem services.

The directive amends sub-paragraph 14 of paragraph 7.2 of the guidelines notified on November 29, 2023. Under those prior rules, commercial plantations of low rotation or medicinal plants on forest land were designated as “non-forestry activities.” As such, they required specific central government approval based on the merits of each case, as well as the full payment of environmental compensation fees.

The new amendment, however, states that as long as the activities follow a detailed project report (DPR) and operate under the supervision of the state forest department, the usual penalties for diverting forest land “shall not be applicable.”

The ministry noted that state governments are free to devise frameworks for revenue sharing with the private or government entities involved on a case-by-case basis. The projects must align with an approved working plan, specifying details such as the species proposed for plantation and the “silviculturally available sustainable harvest for utilization.”

According to people aware of the matter, the ministry recently received representations from various entities seeking permission to undertake afforestation in degraded landscapes, which may be managed and utilized in accordance with the prescriptions of the working plan or management plan.

However, the provisions of paragraph 14 of the guidelines restricted states and union territories from raising plantations, afforestation, or low-rotation crops, and accordingly may hinder various restoration efforts undertaken by both state and central governments.

“Such restrictions may also result in an increased dependence on imports of pulp, paper, and paperboard,” a person said, requesting anonymity.

The ministry did not respond to requests for a comment.

Compensatory afforestation is a standard requirement for diverting forest land for non-forest use, such as mining or infrastructure. It obligates developers to fund the creation of new forests to replace lost land and trees — a principle described as compensating “land by land” and “trees by trees.”

Similarly, net present value is a fee mandated by a Supreme Court order dated October 29, 2002. It quantifies the loss of environmental services, such as carbon storage and soil conservation, provided by the diverted forest area.

Critics argue the reclassification opens public lands to commercial exploitation. Jairam Ramesh, a senior leader of the opposition Congress party, criticized the move on the social media platform X, linking it to legislative changes made last year.

“In August 2023, the Modi Government had bulldozed amendments to the Forest (Conservation) Act, 1980 through Parliament,” Ramesh wrote. He noted that critics had warned the changes would facilitate the “privatisation of forest management,” adding that the January 2 circular proves “this is exactly what has happened.”

The policy change follows the 2023 renaming of the forest law to the Van (Sanrakshan Evam Samvardhan) Adhiniyam and recent notifications regarding “Green Credits,” a market-based system designed to incentivize environmental actions.

Hindustan Times reported on September 23 that the ministry had previously outlined terms for using degraded forest land to meet afforestation requirements for industrial projects. This followed an August 29 notification on the Green Credit Programme and August 31 amendments to forest conservation rules, all facilitating the use of degraded forests for commercial and compensatory planting.