Question

Question:
Consider the following statements about the Compensatory Afforestation Fund Act, 2016:

Statements:
A. The Act provides for the establishment of a fund under the Contingency Fund of India.
B. The Supreme Court of India, in the T.N. Godavarman Thirumulpad case 2002, observed that a Compensatory Afforestation Fund be created.
C. The term "net present value" is defined under the act.

Answer Options:
(1) A and B only
(2) B and C only
(3) A and C only
(4) A, B, and C

Answer 1

Let's evaluate each statement regarding the Compensatory Afforestation Fund Act, 2016:

Statement A: The Act provides for the establishment of a fund under the Contingency Fund of India.

• Incorrect. The Act establishes funds under the Public Account of India and the public accounts of each state, not under the Contingency Fund of India.
  India Code

Statement B: The Supreme Court of India, in the T.N. Godavarman Thirumulpad case 2002, observed that a Compensatory Afforestation Fund be created.

• Correct. In the T.N. Godavarman Thirumulpad v. Union of India case, the Supreme Court, in its order dated 30th October 2002, observed the need for creating a Compensatory Afforestation Fund.

Statement C: The term "net present value" is defined under the act.

• Correct. The Act defines "net present value" (NPV) in Section 2(j) as "the quantification of the environmental services provided for the forest area diverted for non-forest use."
  National Campaign

Conclusion:

• Statements B and C are correct.

Answer: (2) B and C only