Compensatory Afforestation and CAMPA Explained for Project Developers

Every year, infrastructure, mining and industrial projects in India need forest land. The law allows this only with central approval and only if the lost forest is compensated. For project developers, compensatory afforestation is often one of the longest items on the approval checklist. This guide explains how it works today.

The law in brief

• The Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 (the Forest (Conservation) Act, 1980, renamed and amended in 2023) requires prior approval of the central government before forest land is used for non-forest purposes.
• The Van (Sanrakshan Evam Samvardhan) Rules, 2023 set out the approval process, run through the PARIVESH portal, and the conditions attached to approvals.
• The Compensatory Afforestation Fund Act, 2016 created the funds into which compensatory payments are made, managed by the National and State Compensatory Afforestation Fund Management and Planning Authorities (CAMPA).

What a project has to pay for

The money is deposited into the Compensatory Afforestation Fund. The actual plantation is carried out by the State Forest Department, using the State CAMPA's annual plan.

Newer ways to meet CA obligations

Land banks

The 2023 Rules provide for land banks: pools of land identified in advance for compensatory afforestation, so projects are not held up looking for suitable land.

Accredited compensatory afforestation (ACA)

Under ACA, an entity can raise plantation in advance on land it holds, in patches of at least 10 hectares. Once the plantation is at least five years old and meets the prescribed canopy density, it can be offered to meet the CA obligation of a project. This turns CA from a delayed obligation into a ready asset.

Green Credits

Green Credits earned under the Green Credit Programme, for restoring degraded forest land, can be exchanged once towards compensatory afforestation. See our Green Credit Programme guide.

Practical tips for project developers

• Start early. CA land identification and plantation timelines often take longer than the rest of the forest clearance.
• Prefer native species and real survival. Approvals, ACA and Green Credits all look at what survives, not what was planted.
• Keep a clean evidence trail. Maps, KML boundaries, plantation journals and survival counts make inspections and later audits easier.
• Do not confuse CA with CSR. Statutory CA is a condition of your approval. Voluntary plantation you fund through CSR is separate, unless it is done through a route the rules recognise, such as Green Credits.

Where private plantation partners fit

Statutory compensatory afforestation on forest land is carried out by forest departments. Companies often also have plantation commitments outside forest land: green belts, safety zones, community lands, farmers' fields and city sites. These need the same discipline of planning, survival and reporting. See how we support plantation mandates, or read Green credits vs carbon credits vs CSR vs BRSR.

Sources: Consolidated guidelines under the Van (Sanrakshan Evam Samvardhan) Adhiniyam (PARIVESH) · National CAMPA · MoEFCC. Last updated: October 2026. Rules change; check the latest notification before you rely on any detail.

Further reading: Green Credit Programme 2026: How Tree Plantation Green Credits Work · CSR Tree Plantation Under Schedule VII: A Compliance Checklist for 2026