The Compensatory Afforestation Fund aims at:

  1. imposing Cess and Surcharge on conversion of forest land to non-forest land
  2. reducing the net carbon emission by mitigating deforestation activities

Which of the above statements is/are correct?  

Answer: [D] Neither 1 nor 2

Both are incorrect statements
Compensatory Afforestation involves undertaking Afforestation to compensate for loss of forest cover. The Fund that is collected through payments for diversion of forest land for non-forest purposes (like industrial or infrastructure projects) will be bifurcated as 10% of the monies to the National Fund, and 90% to the State Funds.

This question is a part of GKToday's Integrated IAS General Studies Module