Ministry Defines Terms for Using Degraded Forest Land in Compensatory Afforestation

The Union Environment Ministry has issued fresh guidelines to states and Union Territories for utilizing degraded forest lands for compensatory afforestation (CA). This directive comes after the ministry’s recent notifications on the Green Credit Programme (August 29, 2025) and the Van (Sanrakshan Evam Samvardhan) Amendment Rules, 2025 (August 31, 2025), which significantly amend the Forest Conservation Rules, 2023.


What is Compensatory Afforestation?

Compensatory afforestation is the legal requirement for industries and infrastructure projects that divert forest land for development. To balance ecological loss:

  • Projects must plant trees over an equivalent area of non-forest land.

  • If non-forest land is unavailable, they must afforest double the area of degraded forest land.

This practice ensures that industrial development is aligned with ecological restoration and India’s carbon neutrality goals.


Green Credits and Their Role

Under the revised Green Credit Programme, organizations and individuals undertaking eco-positive actions like tree plantation are rewarded with green credits.

  • These credits are tradable on a domestic market platform.

  • They serve as incentives to encourage restoration of degraded forest areas.


Why Degraded Forests?

The Environment Ministry emphasized that degraded forests provide a practical solution given India’s shortage of available non-forest land. According to the Forest Survey of India:

  • 348,789 sq. km of India’s geographical area (10.61%) is under open and scrub forest category.

  • Between 2011–2021, about 40,709 sq. km of very dense and medium dense forests degraded to open forests.

  • Another 5,573 sq. km degraded further to scrub category.

This demonstrates an urgent need for restoration of degraded forests, aligning with India’s Nationally Determined Contributions (NDCs) to create a carbon sink of 2.5 to 3.0 billion tons of CO2 equivalent by 2030.


Conditions for Using Degraded Forest Land

The ministry’s letter laid down clear criteria for degraded forests to qualify for compensatory afforestation:

  • Minimum size: 5 hectares.

  • Restoration period: Afforested for at least five years.

  • Canopy density: At least 40% after restoration.

  • Species mix: Indigenous species must be planted, depending on site suitability.

  • Green Credits: Lands must be awarded credits under the Green Credit Programme.

  • Scale of restoration: User agencies must restore a cumulative minimum of 25 hectares.

Such restored degraded forests may then be exchanged in favor of the Green Credit Applicant (GCA) to meet CA obligations.


Legal and Policy Debate

The use of degraded and unclassed forests for compensatory afforestation has sparked legal disputes.

  • Petitioners, including retired forest officials, have argued that such practices violate the TN Godavarman judgement (1996), which recognized all recorded forests as protected.

  • The Forest (Conservation) Rules, 2022 however, already allow CA in degraded and unclassed forests due to land scarcity.

  • The issue is under judicial scrutiny in the Supreme Court, reflecting tension between development needs and forest conservation.


Special Provisions for Mining and Infrastructure

For critical projects, including:

  • Central agencies and CPSUs

  • Captive coal blocks of state PSUs

  • Transmission line projects

  • Critical and strategic minerals (under Mines and Minerals Act, 1957, and Atomic Energy Act, 1962)

The guidelines allow compensatory afforestation through exchange of degraded forests restored under the Green Credit Programme, but with a stricter ratio: twice the restored forest area for each area diverted.


Link to National Forest Policy Goals

The new framework aligns with the National Forest Policy, which aims to bring 33% of India’s geographical area under forest and tree cover. Strategies include:

  • Large-scale, need-based afforestation.

  • Emphasis on fuelwood and fodder plantations.

  • Restoring degraded and denuded lands.

This policy aims to balance ecological security with India’s ambitious Net Zero Emissions target by 2070.


Conclusion

The Environment Ministry’s guidelines mark a crucial step in integrating industry, conservation, and climate goals. By defining terms for degraded forests, the government seeks to address both land scarcity for afforestation and the need to restore India’s vast degraded forest cover. However, legal challenges, especially concerning the Godavarman precedent, highlight the complexity of balancing ecological preservation with developmental imperatives.



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