Odisha govt has to pay for using forest land: MoEF panel

The Environment Ministry's Forest Advisory Committee (FAC) has turned down the Ministry of Rural Development and Odisha government's request to exempt projects under Pradhan Mantri Gram Sadak Yojana (PMGSY) from forest land compensation. The Odisha government had moved the Supreme Court (SC) in this regard. The apex court, in return, moved several matters related to the payment of net present value, including this one, to the Environment Ministry.

The Odisha government had said that NPV payment will be a heavy burden on the state exchequer, making it difficult to execute the programme. Under forest conservation laws, both private companies and government agencies have to pay a compensation for using forest land, based on the class and density of forests. This is known as NPV. Apart from paying NPV, the agencies have to pay for compensatory afforestation for the forest land diverted.

Before the matter was referred to the FAC, the SC's Central Empowered Committee (CEC), too, was asked to look into the issue and it had filed its report in 2013. The CEC had turned down the state government's request for exemption from payment of NPV.

When the FAC appraised the matter in January, it noted that roads constructed under PMGSY on forest land leads to loss of ecosystem services. "The ecosystem services lost due to developmental activities must be compensated by compensatory afforestation and payment of NPV of the forest land diverted at the fixed rate prescribed. The cost of CA and NPV may be included in the project while formulating the scheme," the FAC said.

It added, "The FAC agrees with the recommendation of the CEC and recommends that the relief sought...by the Ministry of Rural Development, Government of India seeking exemption from payment of NPV for forest land diverted for construction of rural roads including in the state of Odisha may be rejected."