Why in News ?
Union Ministry of Mines has requested an expert advisory committee of the Environment Ministry for Exemption of forest penalty which is a Supreme Court-mandated fees that prospectors pay when they dig exploratory boreholes in forests.
What is Net Present Value (NPV)?
- Monetary approximation of the value that is lost when a piece of forest land has been razed.
- This is on the basis of the services and ecological value.
- There are prescribed formulae for calculating the amount
- Also depends on the location and nature of the forest and the type of industrial enterprise that will replace a particular parcel of forest.
- The Supreme Court mandates this must be paid by those who use forest land for non-forestry purposes and only limited exemptions are permitted.
- The NPV came into being after a committee led by Professor Kanchan Gupta of the Institute of Economic Growth developed it based on a mandate from the Supreme Court.
Why Ministry of Mines wants it to be exempted ?
- Prospecting and exploring in forests be exempted from the purview of the Forest Conservation Act
- All areas of exploration are not converted into mining.
- Only about 1% cases are converted to mining.
- By considering, payment of NPV is regarded as an avoidable expenditure.
- It was submitted that even payment of NPV at a rate of 2% or 5% is one of the major challenges which leads to delay in the exploration/ prospecting activities.
- In 2018 the Coal Ministry, the Mines Ministry and the Ministry of Petroleum and Natural Gas want NPV exempted from forest clearances for digging exploratory boreholes. The FAC refused but agreed to simplify the procedure.
Exploratory Boreholes
- An exploratory borehole is drilled hole for the purpose of identifying the lithological, structural, hydrological, or thermal characteristics of a geothermal resource.
- It aims at locating the possible potential power aout put from the reosurces.
- It is the only way to verify that the resource is capable of producing sufficient hydrothermal fluids for power generation.
Forest Conservation Act
- To protect its rich forests, biodiversity and natural heritage and resources.
- The act permits only unavoidable use of forest land for various development purposes.
- Balance the conservation of forests with the sustainable developmental need of the society contributing to better environment, health and economy.
Government effort for conservation of Forest
- National Forest Policy : aim of bringing a minimum of one-third of India’s total geographical area under forest or tree cover.
- Reserve Forest Tag : In all areas falls under this tag all commercial exploitation are banned.
- Three major schemes : National Afforestation Programme (NAP) scheme, National Mission for a Green India (GIM) and Forest Fire Prevention & Management Scheme.
- Animal Conservation Programme : Project Tiger, Project Elephant, Crocodile Conservation Project.
- Wildlife Protection Act of 1972 : Protected Areas like National Parks, Sanctuaries, Conservation Reserves and Community Reserves
- Mining And Mineral Development Regulation Act 1957 : Mandates mining and prospecting in forest land, prior permission is needed from the Ministry of Environment and Forests.
- Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Rights) Act 2006 : Aims to protect the marginalised socio-economic class of citizens and balance the right to environment with their right to life and livelihood.
Way Forward recommended
Consider charging NPV on borehole basis instead of the present practice of charging 2 or 5% NPV of the total forest area in the lease area. Total exemption is not possible as prospecting on a site, large boreholes are dug to determine the existence, location and quantity of metal.
Source : The Hindu
Topic
GS III : Conservation, environmental pollution and degradation, environmental impact assessment
Current Affairs Compilation : 12 September 2020