Van (Sanrakshan Evam Samvardhan) Adhiniyam: Impact on Economy, Environment & Forest Rights

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Context

The Union Ministry of Environment, Forests and Climate Change (MoEF&CC) notified an amendment to the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 — earlier known as the Forest Conservation Act, 1980 — granting direct access to forest land.

What are the Key Changes introduced in the Forest Rules?

Exemption from Levies

Private companies setting up commercial plantations are now exempted from paying the Net Present Value (NPV) and charges for Compensatory Afforestation (CA). NPV is a mandatory fee for the loss of ecological services when forest land is diverted.

Reclassification of Activities

New rules classify afforestation and plantations by any organization, including private ones, as a "forestry activity." Previously, commercial plantations were considered a "non-forest activity," requiring stricter central government clearance.

Why Shift in Policy?

Addressing Industrial Needs: The paper and pulp industry faces a severe raw material deficit.

• Supply-Demand Gap: The annual demand for wood is around 11 million tonnes, while domestic availability is only about 9 million tonnes. (Source: IPMA Annual Report)
• Underutilised Capacity: Due to raw material scarcity, only about 550 out of 900 paper mills in India are operational. (Source: Union Ministry of Commerce)
• Rising Imports: Paper imports grew by over 68% between 2021-22 and 2023-24, mainly from China and ASEAN nations, impacting domestic industry. (Source: DGCI).

Boosting Economic Growth: The policy supports the 'Make in India' initiative by ensuring a steady supply of domestic raw materials, aiming to revive struggling mills and reduce the import bill.

Meeting Climate Commitments: The government frames this as a step towards achieving India’s climate goals, including:

• Nationally Determined Contribution (NDC) to create an additional carbon sink of 2.5-3 billion tonnes of CO2 equivalent by 2030.
• Bonn Challenge pledged to restore 26 million hectares of degraded land by 2030.

Supporting Rural Livelihoods: The expansion of plantations is expected to create jobs and income for rural communities, building on existing agroforestry models that already involve an estimated 500,000 farmers.

What are the Major Environmental and Social Concerns?

While the industry has welcomed the move, environmentalists and social activists have raised several critical concerns.

Way Forward 

Robust Regulatory Framework

Government must create stringent guidelines to ensure plantations are restricted to genuinely degraded lands and establish a transparent mechanism for land identification.

Uphold Community Rights

Implementation must fully comply with the Forest Rights Act, 2006. The free, prior, and informed consent of the Gram Sabha must be a mandatory prerequisite.

Promote Ecological Restoration

Policy should incentivize mixed-species plantations using native trees to support biodiversity, rather than just monocultures.

Leverage Technology

Mandate the use of drones and satellite imagery for real-time monitoring to prevent encroachment and ensure compliance with environmental safeguards.

Prioritize Farm Forestry

Primary focus should remain on expanding industry-driven agroforestry models on private farmlands, which have a proven record of success without harming natural forests.

Learn from Global Best Practices

Sustainable Certification: Canada and Scandinavian countries use certification systems like the Forest Stewardship Council (FSC) to ensure forestry is ecologically sound, respects indigenous rights, and is economically viable.

Focus on Degraded Agricultural Land: Brazil boosted pulp industry by focusing plantations on degraded farmlands, not by clearing natural forests.

Community-Centric Forestry: Involving local communities in management and benefit-sharing, as a best practice, ensures social justice and leverages traditional knowledge.

Conclusion

Economic growth through raw material access for industry requires a balance with robust environmental safeguards, ecological restoration, and the protection of forest-dependent communities.

Source: DOWNTOEARTH