The Bill was approved by the Lok Sabha on May 3 and is pending in the Upper House, where the ruling NDA does not have a majority.
The passage of the legislation will ensure expeditious utilisation of accumulated unspent amount available with the ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA), which is of the order of Rs 40,000 crore.
Also, the CPM, the JD-U and the TMC are said to be seeking amendments to the Bill to protect tribal interests.
"The Congress has indicated support for the Bill and the Bill is likely to be passed in the current session," the official said.
The proposed law provides for an institutional mechanism, both at the Centre and in states, to ensure utilisation of the amounts realised from diversion of forest land to non- forest purposes.
Besides, the project proponent also deposits a net present value of the forest in lieu of the non-tangible benefits lost with the loss of forests.
The legislation proposes to establish a National Compensatory Afforestation Fund (CAF) and state-level CAF to credit amounts collected in lieu of forest land diverted for non-forest purposes.
CAF authorities will be created at the Centre and state level to control and manage these funds. As per the Bill, a monitoring group will also be established to assist the national authority in evaluation of activities undertaken from amounts released from the national CAF and state CAFs.
The Bill was first introduced in Parliament in 2008 by the previous UPA government. It was passed in the Lok Sabha, but was stalled in the Rajya Sabha in 2009.
The Cabinet headed by Prime Minister Narendra Modi approved the official amendments to the Bill in April 2016, which was passed by the Lower House of Parliament on May 3, 2016.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
