The Union government has released ₹47,436 crore for compensatory afforestation* works in India.

• The government has released the fund under the Compensatory Afforestation Fund Management and Planning Authority (CAMPA).
• The Ministry of Environment, Forest and Climate Change has divided the total mentioned fund among all 27 states. This amount will be in addition to the state budget already allocated for forest conservation.
• Odisha will receive the largest share of the fund (₹5,933.98 crore).
• States are required to use the fund for compensatory afforestation, wildlife management and forest fire prevention.
• Additionally, the states can also use it voluntarily relocate (move) villages from protected areas and to supply wood-saving cooking appliances (like LPG) to villages near forest areas.

Compensatory afforestation 

• This means that every time companies use forest land for non-forest-related purposes such as mining or industry, they have to pay a certain amount as compensation.
• The compensation is then used for regrowing forests over an area of non-forest land, equal to the one used up.
• This compensation amount that companies pay goes into the compensatory afforestation fund.
• This new fund allocation is expected to promote afforestation and achieving India’s environment conservation measures.

*Afforestation: It is the establishment of a forest or stands of trees in an area where there was no previous tree cover.

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