History

The Forest (Conservation) Act, 1980 introduced the requirement for compensatory measures when forest land is diverted for non-forest purposes. Subsequently, the Hon’ble Supreme Court, in the T.N. Godavarman Thirumulpad vs. Union of India case, directed in 2002 that a Compensatory Afforestation Fund be created for managing the money collected from user agencies.

Based on these directions, CAMPA was established in 2004, followed by the creation of Ad-hoc CAMPA as an interim arrangement. To provide a permanent statutory framework, the Compensatory Afforestation Fund Act, 2016 was enacted, and it came into force along with the Rules in 2018.

Under the present system, National CAMPA and State CAMPA authorities manage the funds. The funds are primarily used for compensatory afforestation, forest protection, wildlife conservation, soil and moisture conservation, forest regeneration and other approved environmental activities.

In simple terms, CAMPA ensures that money received from forest land diversion is utilised for maintaining and improving the country's forests and ecological resources.