Establishment of State Fund
Each State Government may establish a special fund to be called as the ‘State Compensatory Afforestation Fund_________(name of State), by notification. In case of Union territory having no legislature, such fund shall be established under the public account of Union of India with effect from such date as the Union territory Administration, by notification, in the official gazette, appoint in this behalf.
The State Fund in each State shall be under the control of the respective State Government and managed by the State Authority of such State.
Source of the fund
The following are the sources of the fund-
- the unspent balance of all monies which has been transferred by ad hoc Authority;
- all monies transferable from the National Fund;
- all monies realized from user agencies towards-
- compensatory afforestation;
- additional compensatory afforestation;
- penal compensatory afforestation;
- net present value;
- catchment area treatment plan; or
- any money for compliance of conditions stipulated by the Central Government in giving approval under the provisions of the Forest (Conservation) Act, 1980; and
- the funds recoverable from user agencies where forest land diverted falls within the protected areas for undertaking activities relating to the protection of biodiversity and wildlife;
- grants-in-aid ;
- any loan taken or any borrowings made by the State Authority;
- any other sums received by the State Authority by way of benefaction, gift or donations.
Disbursement and utilization of State Fund
The monies available in the State Fund shall be disbursed and utilized in the following manner-
- the money received for compensatory afforestation etc., - used as per site-specific schemes submitted by the State along with the approved proposals for diversion of forest land under the Forest (Conservation) Act, 1980;
- the money received towards net present value – used for-
- artificial regeneration (plantation);
- assisted natural regeneration;
- forest management;
- forest protection;
- forest and wildlife related infrastructure development;
- wildlife protection and management;
- supply of wood and other forest produce saving devices; and
- other allied activities;
- the money received as interest accrued- used for conservation and development of the forest and wildlife;
- all monies received from user agencies – used exclusively for undertaking protection and conservation activities in protected areas of the State including facilitating voluntary relocation from such protected areas and in exceptional circumstances, a part of the corpus may be used subject to prior approval of the National Authority;
Constitution of State Authority
The Central Government, with effect from such date by notification, shall establish a State Authority to be called as ‘State Compensatory Afforestation Fund Management and Planning Authority’. The State Authority is responsible for the management of the State Fund. The State Authority shall consist of a governing body and shall be assisted by a steering committee and an executive committee.
Governing body
The governing body of a State Authority shall consist of the following members-
- Chief Minister of the State and in case of Union Territory having no legislature the Lieutenant Governor or the Administrator – Chairperson,ex officio;
- Minister of Forests – Member, ex officio;
- Chief Secretary – Member, ex officio;
- Principal Secretaries of the Department dealing with Environment, Finance, Planning, Rural Development, Revenue, agriculture, Tribal Development, Panchayat Raj, Science and Technology – Members, ex officio;
- Principal Chief Conservator of Forests (head of forest force) – Member, ex officio;
- Chief Wildlife Warden – Member, ex officio.
The Principal Secretary in charge of the Forest Department in a State shall be Member Secretary of the State Authority in such State.
Steering Committee
The Steering Committee of a State Authority shall consist of the following-
- Chief Secretary – Chairperson, ex officio;
- Principal Secretaries of the Departments – Members, ex officio;
- Principal Chief Conservator of Forests – Member, ex officio;
- Chief Wildlife Warden – Member, ex officio;
- Nodal Officer, the Forest (Conservation) Act, 1980 – Member, ex officio;
- Head of the regional office of the Ministry of Environment, Forest and Climate Change – Member, ex officio;
- Nodal Officer, State Forest Development Agency – Member, ex officio;
- an expert on tribal matters or a representative of tribal communities to be appointed by the State Government – Member;
- Chief Executive Officer, State Authority – Member Secretary.
Executive Committee
The executive committee of a State Authority shall consist of the following-
- Principal Chief Conservator of Forests – Chairperson, ex officio;
- Child Wildlife Warden – Member, ex officio;
- An officer not below the rank of a Chief Conservator of Forests dealing with forestry research – Member, ex officio;
- An officer not below the rank of a Chief Conservator of Forests dealing with forest and wildlife related schemes – Member, ex officio;
- Nodal Officer, State Forest Development Agency – Member, ex officio;
- A representative each of the Departments – Members, ex officio;
- Financial Controller or Financial Adviser, to be nominated by the Finance Department – Member, ex officio;
- Two eminent non government organizations to be appointed by the State Government – Members;
- Two representatives of district level Panchayat Raj Institutions to be appointed by the State Governments – Members;
- An expert on tribal matters or a representative of tribal community to be appointed by the State Government – Member;
- Chief Executive Officer, State Authority – Member Secretary.
Disqualifications
A person shall be disqualified for being appointed as a member of the State Authority, steering committee and executive committee, if he-
- has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or
- is an undischarged insolvent; or
- is of unsound mind and stands so declared by the competent court; and
- has been removed or dismissed from the service of the Government or organization or undertaking owned by the Government; or
- has, in the opinion of the Central Government, such financial or other interest in the National Authority as is likely to affect the duties discharged by him of his function as a member.
Powers and functions of State Authority
The governing body of a State Authority shall-
- lay down the broad policy framework for the functioning of such State Authority within the overall framework notified by the Central Government on the recommendations of the National Authority;
- to review the working of the State Authority from time to time.
The governing body shall meet at least once in six months at such places and shall observe such rules and procedures in regards to transaction of business at its meeting, including the quorum thereat, as may be prescribed.
Powers and functions of steering committee
The steering committee of the State Authority shall-
- scrutinize and approve with such amendments as it may deem fit and proper the annual plan of operations prepared by the executive committee of such State Authority and send the same to the executive committee of the National Authority for final approval;
- monitor the progress of the utilization of funds released from the State Fund;
- review reports on decision taken by executive committee including investment decisions;
- approve, subject to prior concurrence of the State Government, proposals formulated by the executive committee for creation of posts in the State Authority;
- approve annual report of the State Authority and send the same to the State Government to lay it, each year, in each House of the State Legislature;
- ensure inter-departmental coordination.
The steering committee shall meet at least once in every 3 months.
Functions and powers of the executive committee
The executive committee of a State Authority shall-
- formulate and submit annual plan of operations to the steering committee of the State Authority for its concurrence;
- undertake qualitative and quantitative supervision, monitoring and evaluation of the works being implemented from amounts available in the State Fund;
- invest surplus amounts available in the State Fund;
- maintain books of account and other records;
- submit reports to the steering committee of the State Authority;
- prepare annual report of the State Authority;
- deploy staff on contractual basis or on deputation to the posts in the State Authority;
- formulate proposals for creations of posts in the State Authority;
- be responsible for delegation of financial or administrative powers;
- be responsible for other day-to-day working in respect of the State Authority;
- maintain and update public information system on the State Authority and present all information on its transaction in the public domain;
- undertake any other work as may be assigned by the governing body or steering committee of the State Authority or the State Government from time to time.
The executive committee of a State Authority shall meet at least once in every 3 months.
Budget
Each State Authority shall prepare its budget for the next financial year. It shall adopt the financial regulation and procedure, in particular, the procedure for drawing up and implementing the budget of the State Authority as may be prescribed.
Investment of funds
The State Authority may invest funds available in the State Fund in the securities of the Central Government and in scheduled banks in such manner as may be prescribed. The grants received from the State Government shall not be invested and shall be utilized for the purpose and in the manner prescribed.
Accounts and Audit
Each State Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the C&AG. The accounts shall be audited by the C&AG at such intervals as may be specified by him. The Central Government and the State Government shall have the power to conduct the special audit of the State Fund and of the State Authority through C&AG.
Annual report
Each State Authority shall prepare its annual report giving a full account of its activities during the previous financial year and forward a copy thereof to the concerned State Government, in such form and at such time, for each financial year, as may be prescribed. The annual report shall provide for-
- the number and location of each reforestation, afforestation and conservation activity subject to the requirement;
- the amount and location of lands in hectares, cleared, conserved and planted in connection with the activity; and
- the amount of afforestation money collected and expended.
The State Government shall cause the annual report and the audit report together with a memorandum of action taken on the recommendations contained therein to be laid as soon as may be after the reports are received before each House of the Legislature. In case of a Union territory having no legislature, the Central Government shall cause the annual report and the audit report together with a memorandum of action taken on the recommendations contained therein to be laid as soon as may be after the reports are received before each House of the Parliament.
