India's Forest Act Amendments: Privatisation Debate on Degraded Lands | Quick Digest
India's Environment Ministry clarifies that recent Forest Conservation Act amendments facilitate private investment in restoring degraded forest lands, not privatising existing forests. Critics, including Congress, however, allege the changes, especially exemptions from key levies, pave the way for commercial exploitation. The new guidelines have sparked a significant debate on forest governance and environmental safeguards.
Forest Conservation Act amendments renamed Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023.
Guidelines allow private entities to undertake afforestation on degraded forest lands.
Exemptions from Net Present Value (NPV) and compensatory afforestation for such activities.
Government states amendments aim to increase forest cover, not privatise existing forests.
Opposition and environmentalists express concerns over commercialisation and diluted safeguards.
Debate intensifies over the balance between ecological protection and economic use.
The Indian Environment Ministry has clarified that the recent amendments to the Forest (Conservation) Act, 1980, now known as the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 2023, and subsequent guidelines, do not intend to privatise forest management. Ministry officials assert that the changes are aimed at encouraging private investment in the restoration of degraded forest land to help achieve India's target of 33% forest cover. They emphasize that the requirements for compensatory afforestation and payment of Net Present Value (NPV) remain unchanged for the diversion of existing forest land for non-forestry purposes, but are not applicable when private entities invest in greening degraded areas.
However, these amendments and a circular issued on January 2, 2026, have drawn strong criticism from opposition parties, particularly the Congress, and environmental groups. Congress General Secretary Jairam Ramesh alleged that the changes effectively pave the way for the privatisation and commercialisation of forest land under the guise of regeneration. Critics highlight that activities like assisted natural regeneration, afforestation, and plantations by non-government entities are now classified as 'forestry activities' and are notably exempt from NPV payments and compensatory afforestation obligations. Environmental experts warn that this relaxation of safeguards could lead to large-scale commercial plantations, potentially resulting in monocultures, erosion of biodiversity, and adverse impacts on forest-dependent communities and their livelihoods. The government maintains that state forest departments will retain oversight, and projects will require approved working plans.
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