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TGPSC CARE 7th November 2025 Current Affairs

News at a Glance

Centre’s Panel Recommends Uniform Penalty for Violations of Van Adhiniyam, 1980

Source: The Indian Express

Relevance: Quick Facts for Prelims, GS Paper III – Environment and Conservation; Legal Reforms in Environmental Governance.

Key Concepts for Prelims and Mains:

For Prelims:

  • Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980
  • Van Adhiniyam Rules, 2023 & Amendment Rules, 2025
  • T.N. Godavarman Thirumalpad v. Union of India (1996)
  • Definition of ‘Forest’ (SC 1996 Judgment)
  • 42nd Constitutional Amendment, 1976 (Concurrent List)

For Mains:

  • Environmental Regulation and Penal Provisions
  • Balancing Conservation with Development
  • Afforestation and Ecological Restoration Policies

Why in News?

The Forest Advisory Committee (FAC) under the Union Environment Ministry has recommended uniform penal provisions for violations of the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, to ensure proportional and consistent enforcement across states.

Background:

  • The FAC first examined this issue in 2018, after finding inconsistencies in the penalties imposed for similar violations due to lack of uniform guidelines.
  • After detailed review and a committee report (submitted in Nov 2024), the FAC proposed standardising penalties through rationalised penal compensatory afforestation (CA) and penal Net Present Value (NPV).

Overview of the Van Adhiniyam, 1980 (Formerly Forest Conservation Act):

  • The Act regulates de-reservation, non-forest use, leasing, or felling of forest land.
  • It mandates prior Central Government approval for diversion of forest land for non-forestry purposes.
  • The 2023 amendment renamed it as Van (Sanrakshan Evam Samvardhan) Adhiniyam, expanding its applicability to certain lands outside recorded forest areas.

Key Terms and Provisions:

1. Penal Compensatory Afforestation (CA):

  • Imposed when forest land is used without approval.
  • It involves reforestation on an area equal to or multiple of the area violated.
  • The FAC recommended penal CA in addition to existing legal penalties under the 2023 Rules.

2. Penal Net Present Value (NPV):

  • Refers to the monetary value of environmental services provided by forests (e.g., carbon sequestration, biodiversity).
  • For violations, a penal NPV up to 5 times the normal rate is imposed.
  • Introduced following Supreme Court’s 2017 directions, later codified in the 2023 Van Adhiniyam Rules.

FAC Recommendations (October 28, 2025 Meeting):

Household and Asset Data:

  • Uniformity: Apply standard penal compensatory afforestation for all violations.
  • Consistency: Align penal CA with penal NPV to avoid duplication and ensure proportionality.
  • Reporting Mechanism: State governments must submit detailed violation reports, including:
    • Area affected
    • Persons responsible
    • Actions taken under law.
  • Integration with 2023 Amendments: The recommendations are in sync with the Forest (Conservation) Amendment Act, 2023, which introduced streamlined and consolidated guidelines for forest diversion and penal actions.

Van (Sanrakshan Evam Samvardhan) Amendment Rules, 2025

  • The Ministry of Environment, Forest and Climate Change (MoEFCC) has notified the Van (Sanrakshan Evam Samvardhan) Amendment Rules, 2025, introducing key changes to the Van (Sanrakshan Evam Samvardhan) Rules, 2023.
  • These rules are framed under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 (formerly the Forest Conservation Act, 1980).

Key Highlights of the 2025 Amendment Rules

1. Compensatory Afforestation (CA)

  • Protected forest notification made optional.
    CA land can either be:

     

    • Transferred to the Forest Department, or
    • Notified as a protected area under the Indian Forest Act, 1927 or any other relevant law.
  • Definition: Compensatory Afforestation refers to afforestation done to compensate for forest land diverted for non-forest purposes under the Forest (Conservation) Act, 1980.

2. Mining of Critical & Strategic Minerals

  • For mining of critical and strategic minerals under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) —
    • The project must undertake Compensatory Afforestation on degraded forest land,
    • Covering at least double the area diverted for mining.

3. Working Permission to States

  • State governments can now grant initial “working permission” for certain linear projects, including:
    • Road construction (excluding blacktopping and concretization)
    • Railway track laying
    • Transmission line installation
  • Earlier, states could mobilize resources only after in-principle (Stage-I) approval from the Centre.
  • The amendment decentralizes project initiation for faster implementation.

Evolution of Forest Conservation Legislation in India

Indian Forest Act, 1865

  • First attempt to assert state control over forests.
  • Ensured that state claims did not override existing rights.

2. Indian Forest Act, 1878

  • Classified forests into Reserved, Protected, and Village Forests.
  • Restricted traditional forest use and imposed penalties for violations.

3. Indian Forest Act, 1927

  • Consolidated earlier laws to strengthen state authority over forest resources.
  • Regulated the movement and taxation of forest produce.

4. Pre-1980s Period

  • Forests were a State Subject until the 42nd Constitutional Amendment (1976) transferred them to the Concurrent List.
  • This shift allowed Central oversight on forest policy.

5. Forest (Conservation) Act, 1980

  • Aimed to curb deforestation by centralizing forest land diversion approvals.
  • Restrictions:
    • No dereservation or use of forest land for non-forest purposes without Central approval.

6. Forest (Conservation) Amendment Act, 1988

  • Prohibited leasing forest land to private entities.
  • Expanded the definition of “non-forest purpose”.

7. Forest (Conservation) Amendment Act, 2023

  • Redefined “forest” to include:
    • Land notified under any forest law (e.g., Indian Forest Act, 1927).
    • Land recorded as forest in any government record (post Oct 25, 1980).
  • Excluded: Land converted for non-forest use before 1996.
  • Exemptions:
    • Land within 100 km of international borders for national security and public infrastructure.
  • Sought to streamline approvals and align conservation with development goals.
Indian Express

Judicial Context – T.N. Godavarman Case (1996)

  • Landmark Supreme Court judgment that broadened the definition of “forest”.
  • Definition covered:
    • All land recorded as “forest” in government records (irrespective of ownership).
    • Areas meeting the dictionary meaning of forest.
    • Lands identified by expert committees appointed by states.
  • The 2024 SC directive reaffirmed adherence to the Godavarman definition until new forest identification under the 2023 Act is completed.

Legal and Policy Context:

  • The concept of penal NPV originated from the Supreme Court’s orders (Aug 2017) in environmental matters concerning compensatory afforestation funds.
  • The Ministry later streamlined penalties through Van Adhiniyam Rules, 2023, consolidating earlier fragmented provisions.
  • The new framework aims to ensure accountability, prevent illegal diversion, and promote forest regeneration.

Significance of the Move:

  • Establishes uniform penal framework to replace ad hoc penalties.
  • Reinforces deterrence against violations of forest laws.
  • Enhances transparency and accountability in forest land diversion processes.
  • Aligns with India’s commitment to environmental governance, afforestation, and carbon neutrality goals.

Way Forward:

  • Institutionalise nationwide standard operating procedures (SOPs) for enforcement.
  • Strengthen monitoring mechanisms through digital mapping and satellite tracking of forest diversion.
  • Capacity building for state forest departments to ensure uniform implementation.
  • Regular review of penalty efficiency and compliance through FAC and MoEFCC.

UPSC PYQ:

Q. Consider the following statements: UPSC (2019)

    1. As per recent amendment to the Indian Forest Act, 1927, forest dwellers have the right to fell the bamboos grown on forest areas.
    2. As per the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, bamboo is a minor forest produce.
    3. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 allows ownership of minor forest produce to forest dwellers.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only
    (b) 2 and 3 only
    (c) 3 only
    (d) 1, 2 and 3

    Answer: (b) 

    Explanation:

    • Statement 1 – Incorrect:
      In 2017, the Indian Forest Act, 1927 was amended to remove bamboo grown on non-forest land from the definition of “tree”.
      Hence, felling and transportation of bamboo on non-forest land does not require permission.
      However, bamboo grown in forest areas is still regulated — forest dwellers do not have unrestricted rights to fell it.
    • Statement 2 – Correct:
      As per the Forest Rights Act (FRA), 2006, bamboo is classified as a Minor Forest Produce (MFP) under Section 2(i).
    • Statement 3 – Correct:
      The FRA, 2006 grants ownership rights over minor forest produce (including bamboo, tendu leaves, honey, etc.) to Scheduled Tribes and other traditional forest dwellers living in forest areas.

CARE MCQ:

Q: With reference to the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, consider the following statements:

  1. It mandates prior approval of the Central Government for the diversion of forest land for non-forest purposes.
  2. Penal Compensatory Afforestation and Penal Net Present Value can both be imposed for violations under the Act.
  3. The Act was renamed through an amendment in 2023.

Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2, and 3

Answer: (d) 1, 2, and 3

Explanation:

The Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 requires prior central approval for diversion of forest land, and the 2023 amendment introduced the current title and new provisions, including penal CA and penal NPV mechanisms.

Govt panel working on new SEZ norms for exporters to access domestic market

Source: The Indian Express

Relevance: GS Paper 3 – Indian Economy | Export Promotion | Industrial Policy | Infrastructure Development

Key Concepts for Prelims and Mains:

For Prelims:

SEZ Act, 2005 and SEZ Rules, 2006, Reverse Job Work Policy, Net Foreign Exchange (NFE) Criterion, ICRIER Report on SEZs, Commerce Ministry | NITI Aayog | Finance Ministry

 

For Mains:

Reforming India’s SEZ Policy amid Global Trade Pressures, Reverse Job Work and Domestic Market Integration, Role of SEZs in Atmanirbhar Bharat and Employment Creation

Why in News?

A government panel comprising officials from the Ministry of Commerce and Industry, NITI Aayog, and exporters is drafting new Special Economic Zone (SEZ) norms to revive manufacturing and help exporters access the domestic market amid steep US tariffs that have eroded export competitiveness.

Image Source: The Indian Express

Why the Reforms of SEZ?

  • Many SEZ units, especially gems & jewellery exporters, depend heavily on the US market.
  • Sudden tariff hikes have reduced exports; some units even sought de-notification.
  • In FY25, SEZ exports were $172 billion, but domestic sales were only 2%.
  • Indian SEZs lag behind China’s model in scale, technology, and local linkages

Key Proposals of New SEZ:

India’s Special Economic Zones, once envisioned as engines of export-led growth, now face stagnation due to evolving global trade dynamics and domestic regulatory rigidities. To reinvigorate SEZs and align them with modern industrial strategies, a comprehensive set of structural and policy reforms is required.

1. Reverse Job Work:

Allow SEZ units to manufacture for domestic firms and sell in the Domestic Tariff Area (DTA) under a transparent duty-neutral mechanism to enhance utilization and domestic linkages.

2. Corridor-Based Development:

Integrate SEZs with industrial corridors like DMIC and CBIC to improve connectivity and reduce logistics costs. Develop nearby residential hubs to attract skilled labour.

3. Regulatory Reforms:

Enact the SEZ (Amendment) Bill, 2024, to simplify exit norms and adopt Baba Kalyani Committee proposals, including rebranding SEZs as Employment & Economic Enclaves (3Es) with distinct manufacturing and service rules.

4. Global Convergence:

Strengthen export infrastructure, customs hubs, and e-commerce zones. Pursue MRAs with UAE, Singapore, and EU SEZs for smoother trade and regulatory alignment.

5. Global Best Practices:

Adopt elements from China’s Shenzhen model and UAE’s free zones offering tax benefits and 100% FDI to boost competitiveness.

6. Dispute Resolution:

Establish dedicated commercial courts and arbitration centres within SEZs for faster dispute settlement and investor confidence

Sectoral Focus – Gems and Jewellery Industry

  • Dominant Share: Nearly 65% of India’s studded jewellery exports originate from SEZs.
  • Tariff Shock: The US, being the largest export destination, has severely affected demand.
  • Industry Demands (via GJEPC):
    • Allow reverse job work and DTA sales
    • Extend export obligation periods for delayed shipments
    • Provide interest moratoriums on working capital loans
    •  Ensure job security for artisans and factory workers

According to the Gem & Jewellery Export Promotion Council (GJEPC), such measures are crucial to maintain employment and sustain competitiveness.

Sectoral Focus – Gems and Jewellery Industry

Declining Units:

Gems and jewellery SEZ units dropped from 500 (pre-2019) to 360 (2021–22) due to fiscal uncertainty.

Falling Export Share:

Sector’s share in SEZ exports declined to 15.7% in 2020–21, affected by global demand fluctuations and loss of incentives.

Low R&D Investment:

An ICRIER survey found only 4 of 14 SEZ units invested in R&D—reflecting weak innovation.

Skill and Technology Gaps:

Lack of structured training and limited technical funding hinder productivity.

Weak FDI Inflows:

  • Absence of investment protection agreements (unlike Vietnam)
  • Negative perception of Indian SEZs abroad
  • Poor brand promotion and marketing outreach
    Low FDI limits technology transfer, innovation, and global networking.

Institutional and Policy Response

  • The government aims to introduce reforms through administrative measures rather than waiting for a new SEZ Bill.
  • The Finance Ministry, however, has expressed concerns about potential revenue losses if SEZs are allowed wider domestic access.
  • ICRIER recommends revisiting trade balance mechanisms and strengthening domestic linkages after the removal of the NFE earnings criterion.

Emerging Trade Concerns

  • Negative Trade Balance:

    Rising raw material imports combined with stagnant exports risk turning SEZs into net importers.

  • Reduced Competitiveness:

    Withdrawal of fiscal benefits, policy uncertainty, and better incentives in competitor nations have undermined India’s SEZ credibility.

  • R&D and Skill Deficit:

    The absence of modernisation and innovation funding limits sectoral growth.

Conclusion

India’s SEZ policy stands at a decisive juncture. The twin challenges of global tariff shocks and domestic inefficiencies have exposed structural gaps but also opened a window for deep reform.
A well-calibrated approach—combining reverse job work, innovation incentives, and FDI reforms—can transform SEZs into resilient, export-driven engines of growth, supporting both economic resilience and employment generation.

UPSC PYQ:

Q. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following:

  1. Development of infrastructure facilities
  2. Promotion of investment from foreign sources
  3. Promotion of exports of services only

Which of the above are the objectives of this Act?

(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Correct Answer: (a) 1 and 2 only

Explanation:

  • The SEZ Act, 2005 aims to promote exports of both goods and services, not just services.
  • Its primary objectives include:
    • Development of infrastructure facilities, and
    • Promotion of investment from domestic and foreign sources.
  • Hence, statements 1 and 2 are correct, while 3 is incorrect.

CARE MCQ:

Q. Consider the following statements regarding India’s Special Economic Zone (SEZ) policy:

  1. Asia’s first Export Processing Zone (EPZ) was set up at Kandla in 1965.
  2. The SEZ Policy was announced in April 2000 to attract foreign investment and boost exports.
  3. The SEZ Act, 2005 came into force on 10th February 2006 with single-window clearance provisions.

How many of the above statements are correct?

(a) Only one
(b) Only two
(c) All three
(d) None

Correct Answer: (c) All three

Explanation:
All statements are correct — India pioneered the EPZ model (Kandla, 1965), launched the SEZ Policy (2000), and operationalised the SEZ Act (2006) to simplify procedures and promote export-led growth.

TGPSC CARE 10th November 2025 Current Affairs
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