MOEFCC Approves the Proposal of Making Degraded Forest Land Available For Industry Plantation

Monday, 02 March 2026

Central Government, with a view to align with the evolving framework for restoration of forest land and utilization of silviculturally available sustainable harvest from the forests recently accorded the recommendation of the Advisory Committee and competent authority by approving the said recommendations in accordance with the provision of section 2(1)(iii) and section 3C of the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980.

Amending the sub para 14 of para 7.2 of the guidelines notified on 29.11.2023, Centre incorporated that its is as per State Government’s discretion who agrees to undertake assisted natural regeneration including afforestation/plantation, for purposes mutually agreed between the States/UTs and Government or nonGovernment entities, such activities undertaken in accordance with the provisions of an approved Working Plan/Management Plan under the supervision of the State Forest Department shall be deemed to constitute forestry activities.

The State Government shall, however, be at liberty to devise an appropriate framework for the utilization of such plantations and for revenue sharing thereof, on a case-to-case basis.

Provided further that afforestation/plantations should be allowed by the State/UTs in accordance with a Detailed Project Report (DPR) to be prepared in consonance with provisions of the Working Plan and approved by the competent authority specifying the detail viz. extent of area, species proposed for plantations, activities proposed, silviculturaly available sustainable harvest for utilization, etc.

Speaking on the welcoming move by MoEFCC, Mr M P Sing, DG, FIPPI commented, “ In order to reclaim such forest land for plantation, State governments first need to make a provision in working plan along with a plantation working circle so the govt could invite patrons in publicprivate partnership to initiate such forestry projects, earlier it was not clarified whether non govt entities could enter into such projects or not. ”

“States like Madhya Pradesh, Uttarakhand, Maharashtra, Jharkhand and others which have a significant area of forest land should make efforts to bring agroforestry into the mainstream agricultural economy, then only reclamation of such available forest land could be materialised”, added Mr Singh.

Mr RK Sapra, Ex MD, Haryana Forest Development Corporation remarked that it was the demand of the industry for the last 30 years, so they can raise plantation activity on the degraded forest land. Now after the request has been accepted it shall facilitate the industry stakeholders to produce timber locally and consequently bring down the cost incurred in procuring raw material. So it's a win-win situation for both government & industry as the degraded land will be better utilised and it will also enhance the forest cover on the other hand. “

“Now, going ahead with execution of this policy, parties, state govts & interested industry shall mutually create a working committee to initiate such projects’. In many other countries, the policy has long been in function as they cultivate their own timber and a consistent supply is marinated throughout the year”, added Mr Sapra. ’

APPLICATION PROCESS: For leasing forest land in India, the Ministry of Environment, Forest and Climate Change (MoEFCC) must grant prior approval under the Forest (Conservation) Act, 1980. Requiring User agencies (companies, individuals) need to apply to the State Nodal Officer in specific forms (Form A for new, Form B for renewals).Thereafter, States forward these proposals to MoEFCC within set timelines (90/60 days). adhering to strict guidelines for diversion, NPV payments, and conditions for lease duration (often up to 30 years).

Leases are for specific activities, with conditions like compensatory afforestation, Plantation trees (often 1.5x area) in degraded forest land. Earlier Users were required to deposit Net Present Value (NPV) funds for forest conservation. However, such projects will no longer require payment of Net Present Value (NPV) and the creation of compensatory afforestation plots.

NPV is a one-time charge levied on users diverting forest land, based on a scientific calculation of the value of ecosystem goods and services such as clean air, water, and biodiversity. The value is compensated through artificial regeneration, protection, and the prevention of pests and diseases, among other activities. Such plantations will now be considered as forestry activity.

[Published in Ply Reporter's JANUARY 2026 Print Issue]

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