Compensatory Afforestation Fund

Recently, the Union Environment Ministry has transferred Rs. 47,436 crore to 27 States for afforestation under the Compensatory Afforestation Fund (CAF).Consider the following statements regarding CAF:

  1. The fund was established by the CAF Act was passed by the Centre in 2015 and the related rules were notified in 2018.
  2. The fund will be used for compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value, catchment area treatment plan or any money for compliance of conditions stipulated by the Central Government while according approval under the provisions of the Forest (Conservation) Act, 1980.

Choose the correct answer from the codes given below:

Only 1
Only 2
Both 1 and 2
None of the above