India has eased long‑standing restrictions on afforestation on forest land, opening the door for companies and state agencies to lease these areas for plantations and timber projects without paying compensation. Wood Central understands the move is the latest in a series of reforms expanding what qualifies as forestry activity, with implications for restoration, supply chains and regulatory oversight.
In a January 2 directive to state governments, the Union environment ministry said that afforestation and silvicultural work carried out under state plans will now be classified as “forestry activities.” In effect, the change exempts these projects from compensatory afforestation charges and net present value (NPV) fees — financial tools designed to offset the loss of forest land and ecosystem services.
For years, many plantation projects — particularly those involving fast‑growing or medicinal species — were categorised as “non‑forestry activities,” triggering strict central approvals and full environmental fees. The new amendment removes those hurdles, provided projects follow a detailed project report (DPR) and operate under the supervision of the state forest department. In those cases, penalties for diverting forest land “shall not be applicable.”
States have also been granted the authority to design their own revenue‑sharing arrangements with private partners. Projects must still adhere to an approved working plan, including species selection and the “silviculturally available sustainable harvest for utilisation.”
Officials say the ministry has fielded a growing number of requests from organisations seeking to restore degraded forest land — areas that could be rehabilitated under existing management plans. But earlier rules prevented states from establishing plantations or low‑rotation crops, slowing restoration efforts. One official warned the restrictions “may also result in an increased dependence on imports of pulp, paper, and paperboard.”
Compensatory afforestation and NPV fees have long been pillars of India’s forest‑protection regime. Developers who clear forest land for mining, roads or other projects must replace it — “land by land” and “trees by trees.” NPV fees, mandated by a 2002 Supreme Court order, assign monetary values to lost carbon storage, soil protection and other ecological functions.
The new policy has drawn sharp criticism from advocates and opposition politicians who warn that the changes will open public forests to exploitation. Congress leader Jairam Ramesh wrote on X that “In August 2023, the Modi Government had bulldozed amendments to the Forest (Conservation) Act, 1980 through Parliament,” with the latest changes leading to the “privatisation of forest management.”
