It is an undisputed fact that the forest in this country is an
important and vital component to sustain the life support system on
this planet. For various reasons, our forest is being slowly depleted.
At the same time, as part of our developmental activities, some areas
of the forest have to be used for non-forest purposes. The economic
development shall not be at the cost of complete degradation of the
forest or the environment and eco-system provided by the green area
of the forest. Therefore, it was considered whether the user agency
of such land which is required for developmental activities to
compensate for the diversion of the forest and on the
recommendations of the Central Empowered Committee (hereinafter
being referred to as "CEC"), it was decided by this Court that the user
agency shall be required to make payment of net present value(NPV)
of such diverted land so as to utilize this for getting back in the long
run which are lost by such diversion. A scheme was submitted by
Ministry of Environment and Forests(MOEF) alongwith an affidavit
dated 22.3.2002. The CEC considered all relevant aspects including
the scheme submitted by MOEF and filed a report on 9.8.2002.
These reports were accepted by this Court. This Court in T.N.
Godavarman Thirumulpad Vs. Union of India 2006(1) SCC 1
finally directed that the question as to what amount of NPV is
required to be paid and to achieve these objectives, it was directed
that the question is to be examined by experts. A Committee
comprising of three experts including Mrs. Kanchan Chopra was
appointed and this Court gave the following directions:-
(i) to identify and define parameters (scientific, biometric and
social) on the basis of which each of the categories of values
of forest land should be estimated.
(ii) To formulate a practical methodology applicable to different
biogeographical zones of India for estimation of the values in
monetary terms in respect of each of the above categories of
forest values.
(iii) To illustratively apply this methodology to obtain actual
numerical values for different forest types for each
biogeographical zone in the country.
(iv) To determine on the basis of established principles of public
finance, who should pay the costs of restoration and/or
compensation with respect to each category of values of
forests.
(v) Which projects deserve to be exempted from payment of
NPV.
On the basis of the directions issued by this Court, a Committee
consisting of Mrs. Kanchan Chopra gave a report and the same was
examined by the CEC.
The report contains detailed study of the relevant factors. The
Forest Survey of India, has since last two decades, been undertaking
forest cover mapping of the country using satellite data obtained by
the NRSA, Hyderabad. The methodology of mapping involves the
geo-rectification of the satellite imagery using the Survey of India
toposheets followed by the digital interpretation of the same and
extensive ground truthing. It was found that the forest cover maps
depicts mainly three tree canopy density classes, viz., very dense,
moderately dense and open. There were other classifications in the
Forest of India and "Champion and Seth" have classified the forests
of India into 16 major groups. The major basis of classification
included the climate, the soil and the past treatment as these factors
determine the vegetation type of a given locality. CEC has classified
the forest taking in view the ecological role and value of the forests
and for the purpose of the report, 16 major forest types have been
further grouped into 6 ecological classes depending upon their
ecological functions.
Eco-Class I - Consisting of Tropical Wet Evergreen Forests,
Tropical Semi Evergreen Forests and Tropical Moist
Deciduous Forests
Eco- Class II -Consisting of Littoral and Swamp Forests
Eco-Class III -Consisting of Tropical Dry Deciduous Forests
Eco-Class IV -Consisting of Tropical Thorn Forests and Tropical
Dry Evergreen Forests
Eco-Class V -Consisting of Sub-tropical Broad Leaved Hill
Forests, Sub-Tropical Pine Forests and Sub
Tropical Dry Evergreen Forests
Eco-Class VI -Consisting of Montane Wet Temperate Forests,
Himalayan Moist Temperate Forests, Himalayan
Dry Temperate Forests, Sub Alpine Forest, Moist
Alpine Scrub and Dry Alpine Scrub
Based on the ecological importance of forest falling in different
eco-value and canopy density classes, relative weightage factors
have also been taken into consideration. By using these relative
weightage factors, the equalized forest area in eco-value Class I and
very dense forest corresponding to forest falling in different eco-value
and density classes have been compiled. For example, 17,997 sq.
km. of open forest of Eco-Class IV has been calculated to be
equivalent to 7,558 sq. km. of very dense forest of Eco-Value Class I.
Accordingly, the entire forest area of the country has been calculated
and found to be equivalent to 5.2 lakh sq. km. forest area having
highest ecological significance as that of forest falling in eco-value
Class I with density above 70%.
The net present value per hectare of forest has been fixed
based on this data. For calculating the average net percent value per
hectare of forest in India, the following monetary value of goods and
services provided by the forest have been considered:-
(i) Value of timber and fuel wood
(ii) Value of Non Timber Forest Products (NTFP)
(iii) Value of fodder
(iv) Value of Eco-tourism
(v) Value of bio-prospecting
(vi) Value of Ecological services of forest
(vii) Value of Flagship Species
(viii) Carbon Sequestration Value
Based on this, the NPV was fixed and the following
recommendations have been made:-
(i) for non-forestry use/diversion of forest land, the NPV may be
directed to be deposited in the Compensatory Afforestation
Fund as per the rates given below:-
(in Rs.)
Eco-Value
class
Very Dense
Forest
Dense
Forest
Open
Forest
Class I
10,43,000
9,39,000
7,30,000
Class II
10,43,000
9,39,000
7,30,000
Class III
8,87,000
8,03,000
6,26,000
Class IV
6,26,000
5,63,000
4,38,000
Class V
9,39,000
8,45,000
6,57,000
Class VI
9,91,000
8,97,000
6,99,000
(ii) the use of forest land falling in National Parks / Wildlife
Sanctuaries will be permissible only in totally unavoidable
circumstances for public interest projects and after obtaining
permission from the Hon'ble Court. Such permissions may
be considered on payment of an amount equal to ten times
in the case of National Parks and five times in the case of
Sanctuaries respectively of the NPV payable for such areas.
The use of non-forest land falling within the National Parks
and Wildlife Sanctuaries may be permitted on payment of an
amount equal to the NPV payable for the adjoining forest
area. In respect of non-forest land falling within marine
National Parks / Wildlife Sanctuaries, the amount may be
fixed at five times the NPV payable for the adjoining forest
area;
(iii) these NPV rates may be made applicable with prospective
effect except in specific cases such as Lower Subhanshri
Project, mining leases of SECL, Field Firing Ranges,
wherein pursuant to the orders passed by this Hon'ble Court,
the approvals have been accorded on lump-sum payment /
no payment towards the NPV; and
(iv) for preparation and supply of district level maps and GPS
equipments to the concerned State / UT Forest Departments
and the regional offices of the MoEF, the Ad-hoc CAMPA
may be asked to provide an amount of Rs.1.0 crore to the
Forest Survey of India out of the interest received by it.
Ministry of Environment and Forests also has filed its response
and has accepted the recommendations made by CEC. Various user
agencies have filed its objections. We heard the learned senior
Counsel Mr. Nariman and other learned senior Counsel who
appeared before us. The main contention raised is that the NPV
value was fixed on the basis of the net flow accruing over 20 years at
a 5% social discount rate. This, according to the applicants, is too
low. It has been contended that the Economic and Research
Department of the Asian Development Bank is of the view that a
survey of the social discount rate policies of individual countries show
significant variations and the developing countries apply higher social
discount rate. The paper published by Asian Development Bank
shows that India should have a social discount rate of 12%. It may
be noted that the Expert Committee under the leadership of
Mrs. Kanchan Chopra recommended 5% social discount rate but the
CEC has reduced further and accepted 4% social discount rate. It
may be noted that the CEC had made consultation with eminent
economists and it was of the view that the social discount rate should
be around 2% in India. We do not find much force in the contention
advanced by the learned Counsel who appeared for the user agents.
The 10% suggested by them cannot be applied to the present case
because 10% is the rate linked to assumptions about the opportunity
cost of capital. One cannot apply that rate for social time preference
in evaluating the benefits from an environmental resource such as
forests. In project evaluation, the horizon is compatible with the life of
the project whereas in forest matters, the horizon spans over several
generations. Therefore, the rate of 10%, as suggested by the user
agency cannot be accepted.
Another contention raised by the applicant(FIMI) is that the
NPV is not fixed on site specific and, therefore, the fixation of the rate
is based on surmises and conjectures and the same rate cannot be
applied to the large extent of area covered by the forests. This
question was elaborately considered by the CEC. Considering the
large extent of this country and the forest being spread over in
various parts of the State, it is difficult to fix the NPV based on the
specific area. It is not feasible to fix NPV in each and every individual
case. The entire forest area in each of the State/UT is calculated by
considering the monetary value of the services provided by it. The
average NPV per hectare of the forest area in the State has also
been calculated. If NPV is to be calculated on the specific area, the
process would be time consuming and in most of the cases, it may be
beyond the capability of the Range Forest Officers or other officials
posted at the grassroot level. Moreover, the NPV is linked with the
type of the forest and no useful purpose would be served by carrying
out NPV calculations in each case involving the diversion of forest
areas.
We are of the view that the NPV now fixed is more scientific
and is based on all available data. We accept the recommendations
and we make it clear that the NPV rate now fixed would hold good for
a period of three years and subject to variation after three years. The
following exemptions have been recommended:-
(i) public works such as schools, hospitals, children play
grounds of non-commercial nature and the public welfare
projects such as community centres in rural areas which
require forest land upto 2 ha;
(ii) rural infrastructure and basic services such as the
construction of the overhead tanks, village roads, etc.
(iii) the minor irrigation projects upto 10 ha. of storage area,
municipal water supply projects, drinking water supply
pipelines;
(iv) activities necessary for the ecological management,
relocation of the villages from the sactruaries and the
national parks, regularization of pre-1980 eligible
encroachers;
(v) housing for the rehabilitation of tribals; laying of the
underground optical fibre cables;
(vi) laying of the pipelines for the underground gas
transportation;
(vii) the district and rural roads;
(viii) shifting cultivation;
(ix) roads constructed by Defence in border areas;
(x) construction of the transmission lines.
The above recommendations for exemptions are
accepted. If, in any case, exemption is required by nature of
the peculiar circumstances of the case, the same would be
decided as and when necessary on a case to case basis.
Court Judgement on NPV
Latest orders are here
No comments:
Post a Comment