Centre removes financial, ecological obligations on private forest plantations
New Delhi: The Union government’s latest amendment to forest conservation guidelines, allowing private and non-government entities to undertake plantations in forest areas without paying key environmental levies, has sparked concern among environmentalists, who warn it could pave the way for the gradual privatisation of forest management.
The changes, notified by the Union Ministry of Environment, Forests and Climate Change (MoEF&CC) on January 2, amend the consolidated guidelines issued under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023, formerly the Forest (Conservation) Act. The revised provisions treat assisted natural regeneration, afforestation and plantation activities carried out by government or non-government entities as “forestry activities”.
As a result, such projects will no longer be required to pay Net Present Value (NPV), a one-time levy imposed on users diverting forest land to compensate for lost ecosystem services such as clean air, water, biodiversity and climate regulation. The amendment also removes the obligation to undertake compensatory afforestation, a long-standing safeguard meant to offset forest diversion.
NPV is calculated scientifically to reflect the ecological value of forest land and is typically utilised for artificial regeneration, forest protection, pest control and disease prevention. Under the amended rules, plantations undertaken in forest areas will now be exempt from these obligations.
What the amendment allows
According to the revised guidelines, plantations carried out with the consent of state governments, in accordance with approved working or management plans and under the supervision of state forest departments, will be deemed forestry activities. Consequently, the guidelines state, the requirements of compensatory afforestation and NPV payments “shall not be applicable”.
The amendment further grants state governments discretion to frame their own utilisation models and revenue-sharing mechanisms for such plantations on a case-by-case basis.
It also mandates that plantation projects must be cleared through a Detailed Project Report (DPR) aligned with the state’s working plan and approved by a competent authority. The DPR must specify the extent of land, species proposed, plantation activities and sustainable harvest levels.
Congress flags ‘privatisation’ concern
The Congress on Wednesday alleged that the 2023 amendments to the Forest (Conservation) Act have effectively opened the door for privatisation of forest management.
Congress general secretary and former environment minister Jairam Ramesh shared a screenshot of the January 2 circular on X and said,
“In August 2023, the Modi Government had bulldozed amendments to the Forest (Conservation) Act, 1980 through Parliament. Apart from renaming this law as the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, these amendments had introduced far-reaching changes in the legal regime for the governance of forests in the country.”
He added that concerns raised at the time were now being borne out.
“It had been pointed out at that time itself that the amendments opened the door for privatisation of forest management. This is exactly what has happened as evidenced from the circular issued by the Union Ministry of Environment, Forests, and Climate Change on January 2, 2026,” Ramesh said, warning that “this is just the beginning.”