IN COMPLIANCE of the Supreme Court order, the Union Ministry of Environment and Forest and Climate Change (MoEF&CC) has effected ‘upward’ revision in the rates of Net Present Value (NPV). While effecting the hike of almost 1.5 times compared to the previous NPV rates, the Ministry has allowed certain exceptions.

NPV is the approximate value in monetary terms, of loss/diversion of forest land for non-forest use. It is calculated on the basis of services and ecological value of forest land concerned. Barring a few exemptions, those using the forest land for non-forestry purpose have to pay NPV. Sandeep Sharma, Assistant Inspector General of Forests, Forest Conservation Division, MoEF&CC, recently issued a circular regarding revision in NPV rates. The circular was addressed to Additional Chief Secretary (Forest) or Principal Secretary (Forest) of all State Governments and Union Territories in the

country.

The NPV rates have been revised upward based on fitment factor of 1.53, which means that the hike in rates is almost 1.5 times compared to the previous rates of NPV. While doing so, six eco-classes have been identified and each class has been further divided into three categories -- very dense, dense, and open forest. As per the revised rates, NPV for very dense Class-I forest is Rs 15,95,790/- per hectare. The Eco-Class-I includes tropical wet evergreen forests, tropical semi-evergreen forests, and tropical moist deciduous forests. Whereas, the lowest NPV rate -- Rs 6,70,140/- per hectare will be for Class-IV open forest. Class-IV includes tropical torn forests and tropical dry evergreen forests.

More importantly, NPV shall be 10 times of the normal NPV payable in case of National Parks and five times in the case of sanctuaries. “The use of non-forest land falling within the National Parks and wildlife sanctuaries may be permitted on payment of an amount equal to the NPV payable for the adjoining forest area. In respect of non-forest land falling within marine National Parks/wildlife sanctuaries, the amount shall be five times the NPV payable for the adjoining forest area,” states the circular.

The latest circular offers certain exemptions too. For instance, in case of schools, hospitals, children’s playground of non-commercial nature, community centres in rural areas, overhead tanks, village tanks, laying of underground drinking water, irrigation and PNG pipeline up to 4 inch diameter, electricity distribution line up to 22 KV in rural areas, ‘full exemption’ upto 1 hectare of forest land is granted from payment of NPV. However, there are certain conditions -- no felling of trees should be involved, alternate forest land is not available, the project is of non-commercial nature and is part of Plan/Non-Plan Scheme of Government, and the area is outside National Park/