In compliance to the instructions of Ministry of Environment, Forest and Climate Change, Government

## Policy Analysis Report: Compensatory Afforestation Fund Management in Delhi **1. Executive Summary:** This report analyzes a notification issued by the Government of the National Capital Territory of Delhi (GNCTD) regarding the management of the Compensatory Afforestation Fund. The notification, dated July 2, 2021, establishes specific deposit and expenditure heads of account under the Public Account for the GNCTD Compensatory Afforestation Fund Management and Planning Authority. This amendment is likely intended to streamline the accounting and operational procedures for the fund, facilitating efficient utilization of resources for compensatory afforestation and related activities. The key finding is the adoption of specific account heads for managing deposits and expenditures related to afforestation, catchment area treatment, wildlife management, and other related activities within Delhi. **2. Introduction:** This report aims to provide an overview and analysis of the notification issued by the GNCTD on July 2, 2021, concerning the Compensatory Afforestation Fund. The analysis is based solely on the provided text of the notification. The purpose is to inform relevant stakeholders about the changes and their potential implications. **3. Policy Overview:** This policy text constitutes an **amendment** to existing regulations concerning the Compensatory Afforestation Fund. The core objective, as inferred from the provided text, is to **establish and operationalize specific accounting procedures** for the GNCTD Compensatory Afforestation Fund Management and Planning Authority under the Public Account, enabling efficient management of funds allocated for compensatory afforestation and related activities. **4. Background and Rationale:** This amendment is prompted by instructions from the Ministry of Environment, Forest and Climate Change, Government of India, and approval from the Ministry of Home Affairs. The rationale appears to be to align Delhi's compensatory afforestation fund management with national guidelines and to establish clear accounting mechanisms. The amendment likely addresses the need for a more structured and transparent system for managing funds related to compensatory afforestation within Delhi. The reference to superseding "all the earlier notifications issued in this regard" suggests potential inconsistencies or inadequacies in previous accounting practices that this amendment seeks to rectify. **5. Key Provisions / Changes:** This notification focuses specifically on amending the accounting procedures for the Compensatory Afforestation Fund. * **Original Policy Element Affected:** This document doesn't contain original policies; it is an amendment that sets up the new accounting procedures. * **New Rule/Provision:** The core change is the adoption of specific "Deposit Head of Account under the Public Account and Expenditure Head of Accounts" for the GNCTD Compensatory Afforestation Fund Management and Planning Authority. These include: * **Major Head:** 8336 Civil Deposit, 8121 General Other Reserve Funds * **Sub Major Head:** 00 00 * **Minor Head:** 103 State Compensatory Afforestation Deposits, 129 State Compensatory Afforestation SCAD Fund SCAF * **Sub Head:** 01 Compensatory Afforestation, 02 Catchment Area Treatment Plan, 03 Integrated Wildlife Management Plan, 04 Net Present Value of Forest Land, 05 Interest, 06 Others * **Detailed Head:** 01 Delhi * **Object Head:** 00 00 * **Difference/Effect:** The establishment of these specific account heads provides a structured framework for tracking deposits and expenditures related to different aspects of compensatory afforestation, catchment area treatment, wildlife management, and related activities. This should enable better financial monitoring, reporting, and accountability for the fund. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * The GNCTD Compensatory Afforestation Fund Management and Planning Authority * The Department of Forests and Wildlife, GNCTD * Accountants and financial officers responsible for managing the Compensatory Afforestation Fund * Agencies and organizations involved in compensatory afforestation and related projects within Delhi. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The GNCTD Compensatory Afforestation Fund Management and Planning Authority, overseen by the Department of Forests and Wildlife. * **Procedures:** The text specifies the adoption of the new account heads for operating the fund. * **Timelines:** No explicit timelines are mentioned in the provided text beyond the effective date of the notification (July 2, 2021). * **Specific to Changes:** The existing financial staff will have to be trained on the new accounting head practices that will streamline accounting efforts. **8. Expected Outcomes / Impact of Changes:** The intended outcome of these changes is to improve the financial management and accountability of the Compensatory Afforestation Fund in Delhi. Specifically, the amendment is expected to: * Enhance transparency in fund allocation and utilization. * Facilitate efficient tracking of expenditures related to various afforestation and conservation projects. * Improve compliance with national guidelines for compensatory afforestation fund management. * Streamline the accounting and operational procedures for the fund. **9. Conclusion:** The notification issued by the GNCTD on July 2, 2021, is a crucial amendment focused on establishing a structured accounting framework for the Compensatory Afforestation Fund. By adopting specific deposit and expenditure account heads, this amendment aims to enhance the transparency, accountability, and efficiency of fund management, ultimately supporting the effective implementation of compensatory afforestation and related conservation efforts in Delhi. The policy is crucial for effective compensatory afforestation projects.

Key Entities Referenced