FIPPI approaches PCCF Chhattisgarh to support new forest policy

The Government of India has recently introduced an important policy reform that could significantly impact the future of the country’s wood-based industries. In this January 2026 amendment, the Ministry of Environment, Forest and Climate Change modified the original guidelines notified on 29 November 2023. The amendment revises provisions under paragraph 7.2 of the consolidated guidelines related to the leasing of forest land, allowing the participation of private entities in plantation activities on degraded forest land under a regulated framework.

This move is aimed at strengthening scientific forest management, restoring degraded forest areas, and improving the availability of raw materials for the wood-based industries.

Under the revised framework, state governments can undertake assisted natural regeneration and plantation activities in collaboration with private entities, including industries and plantation companies. These activities will continue to be classified as forestry operations and will remain under the supervision of State Forest Departments.

The policy specifies that such plantations must be implemented according to approved Working Plans and supported by Detailed Project Reports (DPRs) specifying the area, species composition, silvicultural practices, and sustainable harvesting cycles.

Importantly, the guidelines clarify that compensatory afforestation requirements and the payment of Net Present Value (NPV) will not apply to these plantation activities when they are undertaken as forestry operations under the supervision of the State Forest Department.

The guidelines provide flexibility for state governments to design suitable frameworks for implementing plantation projects with private participation.

The Federation of Indian Plywood and Panel Industry (FIPPI) has welcomed this initiative and expressed strong support for its implementation. In a communication addressed to the Principal Chief Conservator of Forests in Chhattisgarh, the federation highlighted the importance of such policies in strengthening the domestic supply of timber for the plywood and panel industries.

Two broad implementation models have been suggested. By FIPPI

Option 1: Revenue Sharing Model

Under this model, State Forest Development Corporations will act as the implementing agency for plantation activities. The corporation will collaborate with private entities to prepare Detailed Project Reports and implement the project.

Funding for the project may be shared between the corporation and the private partner, and the produce generated from plantations will be distributed according to the investment ratio. The corporation will be responsible for marketing its share of the produce, while an indicative minimum price may be specified for the private participant.

Financial institutions such as NABARD may also support these projects.

Option 2: Industry Participation Model

In the second model, degraded forest lands categorized as open or non-dense forests will be identified by the Forest Department for plantation activities.

Detailed Project Reports will then be prepared in consultation with participating industries. Suitable species such as Melia dubia, Acacia mangium, and Eucalyptus may be planted depending on the provisions of the approved Working Plan.

The projects will also include assisted natural regeneration, soil and moisture conservation, fire protection measures, and sustainable harvesting systems aligned with working plan cycles.

The participating agency will be responsible for implementing the plantation activities under the supervision of the Forest Department.

Industry representatives believe that allowing scientific plantations on degraded forest lands can significantly improve the availability of raw materials while also contributing to ecological restoration.

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