Q. Consider the following statements regarding “Compensatory Afforestation Fund Management and Planning Authority (CAMPA)”:
1. It was created under the provisions of the forest conservation act, 1980.
2. Resources realized from diverting forest resources to commercial purpose should be used for afforestation.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

While according prior approval under the Forest (Conservation) Act, 1980 for diversion of forest land for non-forest purpose, Central Government stipulates conditions that amounts shall be realised from the user agencies to undertake compensatory afforestation and such other activities related to conservation and development of forests, to mitigate impact of diversion of forest land. 

Source: Shankar page no: 314