Revision of Rates of NPV applicable for Different Class/Category of Forests

[Chandra Kishore]

Revision of Rates of NPV applicable for Different Class/Category of Forests

A Study conducted by IIFM, Bhopal in collaboration with FSI

Forests provide numerous goods and services that support life. The importance of forests in a country such as ours is even more significant considering the large amount of marginalized communities that depend on forests. When a patch of forests is diverted for non-forestry purposes, its implications on human well-being are felt at various spatial and temporal scales on account of loss of goods and services that the patch of forests has provided. In addition, livelihoods and subsistence needs of rural and tribal communities dependent on forests are severely compromised. While developmental activities are essential for economic development of the country, it is necessary to ensure that this development does not come at the cost of India’s invaluable natural capital – its forests. However, a common denomination to scientifically evaluate both these aspects simultaneously is often unavailable. To bridge this gap, Indian Institute of Forest Management has executed a study awarded by Ministry of Environment & Forests, Govt. of India that recalculates the rates of Net Present Value (NPV) applicable for different class/category of forests in India. The study team consisted of Lead Authors – Madhu Verma and Dhaval Negandhi; Collaborating Lead Authors – A. K. Wahal and Rajesh Kumar and Project Advisors – Gopal Kadekodi, R. B. Lal, Arun. K. Bansal and Sanjay Upadhyay.

Considering the enormous implications of such a study on forest conservation in India, a rigorous research process has been followed in collaboration with the Forest Survey of India, team of experts and a thorough consultation process with all concerned stakeholders of forests, to estimate the economic value of forest diversion. In an attempt to estimate region-specific economic value of forest diversion, the study has adopted a more detailed forest classification of India compared to that on which the current NPV rates are based. In addition, a whole array of forest goods and services have been added to the methodology for estimating the economic value of forests. Apart from other recommendations, the report has also proposed that a charge on “possession value” of land should be introduced to reflect the additional amount over and above the NPV realizable for possession of forest lands, keeping in view the market value of forest lands, especially those near urban and peri-urban areas.

The study report has been submitted to the Ministry of Environment & Forests and the same has been uploaded on its website for public comments (http://www.moef.nic.in/sites/default/files/report.pdf). The members of the Indian Environment Network are requested to send their comments to Dr. Madhu Verma ([e-mail]) which will be forwarded to MoEF and further to the Supreme Court of India for consideration. After suitable modification, the modified NPV rates for forest diversion will be put in practice.

[GOPI KANTA GHOSH]

Good attempt. Admirable