0088-C1

Nabard's Experiences in the Rehabilitation of India's Forests Through People's Participation^[1]

M. S. Haque^[2]

ABSTRACT

National Bank for Agriculture and Rural Development (NABARD) is a development bank with a mandate to promote agriculture and rural development. Forestry is one of the activities in rural areas and NABARD has promoted a number of projects for rehabilitation of degraded forests through people's participation and also through Forest Development Corporations (FDCs). Out of India's 63.73 million ha recorded forests, 31 mha are suffering from degradation. The Xth Plan approach paper of GOI envisages bringing 33% of the land under tree cover by 2012. Hence a massive programme of rehabilitation of degraded lands has been planned. It has been estimated that an average of Rs.22000/- (US$440) will be required to rehabilitate 1 ha. degraded forest. This requires massive funds which are not available with the Government. Under such circumstances NABARD and other banks can play a major role in rehabilitating India's forests through credit.

Realising the importance of forests in livelihood security and sustainable development, NABARD has reduced the rate of interest on refinance, thus making Forestry projects more attractive. It has made Joint Forest Management (JFM) projects as eligible item for regeneration of degraded forests through people's participation. Under this approach, it has already sanctioned a few JFM projects to Andhra Pradesh state. A number of such projects are in the pipeline from several Indian states. The sanctioned JFM projects in Andhra Pradesh have shown that people have been successful in protecting and managing forests on a sustainable basis besides providing a number of usufructs. Impact assessment studies indicated rejuvenation of degraded forests with increase in forest cover, rise in water tables, reduction in biotic pressure, increase in employment generation and decrease in migration of local people.

Introduction:

India's forest cover as per 1999 assessment of Forest Survey of India is only 19.39% of the total geographical area, though recorded forest constitutes 23% which is made up of dense, open and mangrove forests totalling 63.73 mha. Of these, 31 mha are suffering from various levels of degradation viz. 15.5 mha open forest with natural rootstock, 9.5 mha with depleted natural stock and 6 mha totally degraded and treeless. Thus only 37.7 mha forests are in good health with over 40% crown density. The Xth Plan approach paper of the Planning Commission, GOI envisages to bring 33% of land under tree cover by 2012. To achieve this, it has been estimated that about 29 mha non-forest wastelands have to be brought under tree cover, besides reforesting 31 mha degraded forests. Hence a massive programme of rehabilitation of degraded lands has been planned. This requires huge fund, which is not available with the central / state governments. The allocation of the forestry sector is meagre. It is less than 1% of the total planned outlay of the country. Under such circumstances financial institutions specially NABARD / banks can play a major role in rehabilitating India's forests through credit. With a view to ensure effective, dynamic operational strategy for achieving this massive and arduous task, Ministry of Environment and Forests (MOEF), GOI has embarked upon a policy of decentralisation through JFM approach for rehabilitation of India's degraded forests. Keeping in line with the objectives of National Forest Policy NABARD has also initiated new measures for Forestry development through JFM by which it has sanctioned loans to state governments through project-based activities. Project proposals received from respective governments are appraised for technical feasibility, financial /economic viability and social benefits.

Materials and Methods:

NABARD and Creation of New Fund:

NABARD has a mandate to promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives like supporting micro finance particularly through the NGO’s / Self Help Groups (SHGs). Besides, a new Rural Infrastructure Development Fund (RIDF) was created in NABARD under which a wide range of activities are covered such as irrigation, drainage, culvert, roads, and bridges, flood control, watershed development etc. In recent times JFM projects are also sanctioned.

Andhra Pradesh (AP) JFM Project - (RIDF - V & VI)

The AP State has 6.38 m.ha forest, which is 23.20 per cent of the total geographical area of the State. As per State of Forest Report (1999) dense forest is confined only to 2.4 m.ha, leaving rest of the area in degraded condition. In order to meet the present and future demands for forest produces like timber, firewood, fodder and other Non Timber Forest produce (NTFP) and conserving the soil and reducing migration of labour, long-term perspective plans have been drawn in Vision 2020 of A.P. in forestry sector. In this direction, the JFM approach with Vana Samrakshana Samithies (VSS) on watershed basis is given thrust by the State for overall and comprehensive development of degraded forest areas with participatory approach. An extent of 0.238 m.ha of degraded forests were treated under JFM with World Bank aided A.P. Forestry Project. The success of this project had spread into different districts in the State and also attracted visitors from other countries for detailed study of the project implementation. The programme is finding acceptance with the people. The State Government is convinced about the success of the programme hence prioritised forest regeneration for availing of loans under RIDF. The Forest Department, being the implementing agency, submitted five projects in respect of seventeen districts. The projects were appraised and sanctioned by NABARD. The details are given below in Table - 1:

Table - 1: AP JFM Projects under RIDF support of NABARD

(1 US $ = Rs 50) (Amount in Millions)

* Memorandum for sanction would be considered by the project sanctioning committee shortly.

** Cost of development per hectare ranges from Rs.1597 to Rs. 5766.

Disbursements: Against a RIDF loan of Rs. 1031.94 millions, an amount of Rs. 517.2 millions have been disbursed till 31 July 2001.

Districts covered under JFM:

The districts covered under JFM in the state are Ranga Reddy, Mahaboobnagar, Visakhapatnam, Srikakulam, East Godavari, Vizianagaram, Nizamabad, Medak, Warangal, Karimnagar, Anathapur, Adilabad, Nellore, Kurnool, Cuddapah, Cittoor (West) and Chittoor (East) districts.

JFM Project under RIDF so far sanctioned, together with erstwhile World Bank aided APFP, are poised to cover and treat 604000 ha area, which accounts for 14% of degraded forests of the State.

Project Components:

· Silvicultural Treatment practices

Rehabilitation of degraded forest lands with viable rootstock by nurturing natural regeneration

· Soil and moisture conservation measures

Contour trenching, Contour bunding, Formation of gully plugging structures, Construction of check-dams, Construction of percolation tanks.

· Support activities

Construction of bus shelters, Adding classroom to village school, Construction of community hall, Laying of village roads, Provision of smokeless chullas, Construction of bio-gas plants, Provision of solar cookers.

· Training to the VSS members, Forest staff and participating NGOs

Implementation:

The projects will be implemented by the AP Forest Department, which is the nodal agency. At the district level, Divisional Forest Officer and Forest Range officers will be implementing the project in close association with the VSS members.

Organisational Structure

Duties and responsibilities of VSS

The General Body of the VSS shall meet once in six months to review the action taken in pursuance of the approved JFM Plan and functioning of the Managing Committee. The Forest Range Officer shall be the Convenor of the General Body. The members of the VSS individually and collectively, shall

• ensure protection of forest against encroachment, grazing, fires and thefts of forest produce

• also be responsible to carry out development of forests in accordance with the approved JFM Plan

• make other villagers aware of the importance of forests

• help the forest officers in carrying out forestry development / eco-development work in accordance with the JFM Plan

Functions and Responsibilities of Forest Department

· The Forest Dept. will take the responsibility to provide assistance to VSS in selection / demarcation of the forest areas to be put under JFM and in the preparation of micro-plan, and approval of the budget for micro-plan.

· It will take the responsibility to transfer the skills of sound silvicultural treatment and soil conservation practices to the members of VSS and to guide JFM micro-plan implementation.

· The officials of Forest Department will assist the members of VSS in apprehending forest offenders wherever necessary.

Role of NGOs

· Support role to Forest Department and other NGOs

· Village level activities - Dissemination of information, encouraging community to organise into a VSS, Liaison with government together with and on behalf of the community, documenting field experience to focus on emerging issues etc.

Usufruct Rights of VSS members:

• VSS members are given 100% rights over the forest produces.
• VSS gets 50% of the net revenue realised from sale of bidi leaf.

• 50% of fine collected from forest offenders go to VSS.

Project Benefits and Justifications:

The projects would help in regeneration of degraded forests and consequent increase in the production and the productivity of forest produces like small timber, fuel wood, fodder, thatch grass, tamarind (Tamarindus indica), amla (Emblica officianalis), sitaphal (Anona squamosa), adda leaves etc. The project would also result in conservation of soil and water and recuperation of degraded forestland resulting in reduction of soil erosion to a great extent. The overall anticipated benefits from the project after full development is summarised as follows:

i) Reduction in the degraded forest area
ii) Increase in GDP
iii) Employment generation

The projects cost and benefits have been assessed. The ERR is found to vary from 26 to 30% and B:C ratios at 15% discount rate varies between 1.63 to 2.11. The projects are considered both technically and economically feasible. In addition to the economic benefits, the projects can bring considerable reduction in migration of labour to urban areas. This will again create opportunities for the VSS villagers to undertake income generating non-farm activities like making of bamboo furniture’s and other articles, rope making from grass, oil extraction, honey collection and processing etc. Increased income and non-farm employment generated would improve the socio-economic conditions including nutritional status of the VSS village population.

Sustainability Study:

NABARD undertook a monitoring study of JFM projects sanctioned in Andhra pradesh during March 2001 and the following observations were recorded.

Source of income to VSS:

It has been observed that major sources of income of VSS members are wage employment and from sale proceeds of the usufructs of the trees / forest produce / Minor Forest Products (MFP) / Non-Timber Forest Products viz. Adda and Beedi leaves (Diospyros melanoxylon) etc. as the members are allowed 50% to 100% of the usufructs rights by the State Government. This revenue is deposited in the Joint account of the VSS.

Use of income from Jt. A/c of VSS:

The members can withdraw fund from the Joint Account as per resolution passed in VSS meeting. It is observed that this money is used by the members for;

(a) Fresh planting
(b) Consumption purposes

VSS(s) were visited to study the functioning of these organizations/groups.

Benefits from Treatment Practices - Silviculture Treatments

· Observed quick regeneration of forests within 2/3 years due to coppicing and singling.

· JFM is providing alternative to 'Podu' / Jhum cultivation in VSS villages.

· Illegal encroaching of forestland by cutting and felling of economic species has been noticed as stray incident. Such lands have been returned to Forest Department once the VSS is formed and the same getting sustenance.

Benefits from Treatment Practices - "Soil Moisture Conservation SMC)Treatment"

· Construction of Check Dams (CDs), Percolation Tanks (PTs), Rock filled Dams (RFDs), Continuous Contour Trenches (CCTs) and such other structures have been achieved with consultation of VSS members through PRA. These are low cost structures constructed with wage employment to VSS members.

· CCT, PT and CDs providing avenues to additional irrigation to fallow lands with approximate 900 mm annual rainfall. Recharge of ground water in forest fringe villages is ushering a new era of vegetable cultivation / double cropping etc.,

· CCTs as peripheral trenches separate forestland and private land thereby reducing encroachment and smuggling, preventing wild animal entry to villages and consequent crop loss.

Benefits from support Services

· Bore-well installed by Forest Department from support service activities for village communities solved drinking water problem and mitigated scarcity and migration of people in many VSS.

· Smokeless Chulas are reducing dependence on forest.

· Agriculture implements like Iron plough got acceptance and appreciation of VSS members as they reduce dependence on forest.

· Matching grant from FD out of support services allocation to the SHG(s) is a good financial help. As per guidelines, Rs.10, 000/- could be provided as matching grant if savings become Rs.10, 000/-, with proven record of SHG having 100% repayment.

Impact Assessment of JFM:

The evaluation of VSS activities was taken up by independent agencies such as Educational institutions, universities and NGOs etc. The findings of the evaluation so far on various parameters have given very healthy pictures such as: increase in average income of VSS members, decrease in migration, increase in irrigated agricultural area, empowerment of women, reduction in encroachment and illegal felling in JFM areas, better protection of forest areas with healthy regeneration, increase in NTFP species and decrease in take of fuel wood, besides enhancing the social status through family planning measures and increase in educational level among VSS members.

Discussion and Conclusion:

The MOEF, GOI is greatly concerned over the slow rate of afforestation owing to financial and other constraints. The afforestation has gone down from about 8.9 m.ha in the VII Five Year Plan to about 7 m.ha in the VIII Plan. Even if it is presumed that there will be no further degradation of forest areas it will take more than 25 years to restock the degraded forest areas. Even with a conservative estimate of Rs. 22,000 per ha cost it will require a budgetary allocation of more than Rs. 682 billions to rehabilitate 31 m.ha degraded forests. It is, therefore, clear that Government may not be in a position to restore the existing degraded forests from the available resources, leaving aside the goal of increasing the forest cover to 33 percent of the geographical area by afforestation. Under such a situation the concept of JFM where people are empowered to protect and manage state forests is a very practical and healthy development. We, in NABARD consider forest as a basic infrastructure which provides shelter, water, timber, fuel wood, fodder, grasses, medicines etc. to more than 100 million forest dwellers of the country, besides, providing many intangible benefits in the form of ecological restoration and environmental amelioration. With these considerations and the needs for early restoration of the vast tracts of degraded forests of the country, NABARD has considered funding JFM project under its RIDF Programmes. A study undertaken by NABARD in association with FAO, Rome in AP indicated that certain JFM projects might be financially viable especially where predominant species are Teak (Tectona grandis), Sal (Shorea robusta) and Bamboos, which can regenerate easily and naturally (NABARD, 1997). A detailed survey conducted in Gujarat State (Tewari, 1996) indicated that both bamboo and teak forest under JFM were viable. Financial returns for 7 different bamboo models were estimated to exceed 50 percent. In the case of teak, the IRR in respect of 4 models was around 40 percent. The studies concluded that bamboo, teak and their combinations were financially viable activity under JFM. Another study in Tamil Nadu indicated that participatory forest management projects had a positive NPV with a B:C ratio of 1.77 (Balaji 1997). As all the Indian States have adopted JFM approach for sustainable management of degraded forests and since neither the centre nor the states possess adequate financial resources for this activity, there is an opportunity for the commercial banks to play an important role in future forest management through credit (Haque et.al 1998).

JFM is a complex system involving economic, ecological, institutional, legal and political aspects. Hence, financial package for JFM projects is different than traditional forestry projects. The aspiration of the rural people has been raised too high by adopting JFM in all the states. At present, more than 10.25 m.ha. of forest area are protected and managed by about 36130 Forest Protection Committees (SFR, 1999). The failure to channelise funds to the system would not only degrade the forest further but may also create social unrest, hence require serious attention from the government and financial institutions. JFM has got to succeed because the future of the country’s forest depends upon it and with it the welfare and well being of our people (Shah, 1998). The governor of Andhra Pradesh Dr. C. Rangarajan (1999) had advocated the role of JFM in protection and management of India’s degraded forests. He is of the view that now forest management is almost impossible without the active participation of the people. Studies by NABARD and several independent agencies have indicated success in protecting forests through JFM (Anon, 2002). NABARD will support all viable Forestry programmes, which benefit the rural people.

References

Anon, 1999. Participation of private sector through involvement of NGO’s and forest department in afforestation or rehabilitation of degraded forests. Ministry of Environment and Forests, letter no 8 - 21 / 96 - February, June 7.

Anon, 2002. JFM: If we walk together a path will emerge. Paper presented in the workshop on JFM at Chennai held on 21-22 Jan 2002.

Balaji, S.,1997. Participatory Forest management for sustainable development: Socio-economic analysis of interface forestry program in India. Proceedings of XI World forestry Congress, 5: 126.

State of Forest Report, 1999. Forest Survey of India.

Haque, M. S., S. Kannapiran and A. M. Paul. 1998. Financial viability and bankability of JFM projects in India. The Indian Forester,124(6): 487 - 494.

NABARD, 1996. Circulars on projects funded under Rural Infrastructure Development Fund (RIDF), SPD, Mumbai.

NABARD, 1997. Aide Memoire of the FAO/NABARD. Identification Mission for Joint Forest Management (JFM) in Andhra Pradesh (Unpublished).

NABARD, 2000. Appraisal Report on Joint Forest Management Projects in Andhra Pradesh, SPD, Regional office, Hyderabad.

NABARD, 2001. Project on Joint Forest Management in Andhra Pradesh. Monitoring study report (unpublished).

Rangarajan,C. 1999. Economics and Environment. Some vital links. Enviro News, January 5-10.

Sarri, A., 1999. India plans Forest Management. Tropical Forest Update, 9(3):29.

Shah,S.A., 1999. JFM has got to succeed. Wastelands News, 15(1): 63-67.

Tewari,D.D., 1996. Economics of Joint Forest Management Programme: A case study of Soliya village, Gujarat, India. Commonwealth Forestry Review, 75(3):203-211.