Explanation: With a cover of 23% of Geographical area of the country, forest in India comprise of a number of diverse forest types and reserved areas designated as National Parks and Wildlife Sanctuaries.

• In India, forest meet the livelihood needs of people living in and adjoining the forests in about 1, 73,000 villages. Forests also act as carbon sinks and regulators of water regime.
• Many development and industrial projects such as erection of dams, mining, and construction of industries or roads require diversion of forest land.
• Any project proponent, government or private must apply for forest clearance from Ministry of Environment and Forests (MoEF), before the conversion of land take place. This proposal is to be submitted through the concerned forest department of the state government.
• If clearance is given, then compensation for the lost forest land is also to be decided by the ministry and the regulators.
• Due to certain discrepancies in the implementation of compensatory afforestation, some NGOs had approached The Hon’ble Supreme Court for relief.
• The Hon’ble Supreme Court on 10th July 2009 issued orders that there will be a Compensatory Afforestation Fund Management and Planning Authority (CAMPA) as National Advisory Council under the chairmanship of the Union Minister of Environment & Forests for monitoring, technical assistance and evaluation of compensatory afforestation activities.

Source: Economic Survey