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still compensate for the opportunity cost loss in terms of area which
could have otherwise been used for generating economic activities.
Table 2.23 outlines the new horizontal formula for inter-se determination
of the shares of taxes to the states:
Table 2.23: Criteria and Weights for Inter-se Determination of the Shares of Union Tax
Revenues to States
Criteria Weight
Population 17.5
Demographic change 10
Income distance 50
Area 15
Forest cover 7.5
Source: MoF (2014)
An estimated 100 million forest dwellers depend on Minor Forest 3.2
Produce (MFP) for food, shelter, medicines, cash income, etc., yet the
price of MFP (or NTFPs) is most often decided by traders rather than
by demand/supply (barring few high revenue items nationalized by
the state governments). Thus, the Government of India has introduced
the scheme of ‘Mechanism for marketing of MFP through Minimum
Support Price (MSP) and development of value chain’ as a social
safety net for improvement of livelihood of MFP gatherers. Under this
scheme, 12 different MFPs have been identified by the Ministry of Tribal
Affairs, Government of India. The scheme has been implemented in
states having areas under the Fifth Schedule of the Indian constitution,
i.e., Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya
Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana. However,
since Andhra Pradesh and Telangana have put all the MFP under
monopoly of the state, the scheme has not been implemented in these
two states so far (MoTA 2015).
Clean Development Mechanism (CDM)
As provided under Article 12 of the Kyoto Protocol, CDM enables
developing countries to issue certified emission reductions (CERs)
to developed economies who invest in these developing countries to
reduce their GHG emissions in order to meet their targets stated in the
Kyoto Protocol (UNFCCC, “What is CDM”, undated). A part of the
investments received by developing countries go towards afforestation
activities and to promote sustainable forestry. The CDM is also the
Chapter 2 Innovative Financing for Low Carbon Development 303
could have otherwise been used for generating economic activities.
Table 2.23 outlines the new horizontal formula for inter-se determination
of the shares of taxes to the states:
Table 2.23: Criteria and Weights for Inter-se Determination of the Shares of Union Tax
Revenues to States
Criteria Weight
Population 17.5
Demographic change 10
Income distance 50
Area 15
Forest cover 7.5
Source: MoF (2014)
An estimated 100 million forest dwellers depend on Minor Forest 3.2
Produce (MFP) for food, shelter, medicines, cash income, etc., yet the
price of MFP (or NTFPs) is most often decided by traders rather than
by demand/supply (barring few high revenue items nationalized by
the state governments). Thus, the Government of India has introduced
the scheme of ‘Mechanism for marketing of MFP through Minimum
Support Price (MSP) and development of value chain’ as a social
safety net for improvement of livelihood of MFP gatherers. Under this
scheme, 12 different MFPs have been identified by the Ministry of Tribal
Affairs, Government of India. The scheme has been implemented in
states having areas under the Fifth Schedule of the Indian constitution,
i.e., Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya
Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana. However,
since Andhra Pradesh and Telangana have put all the MFP under
monopoly of the state, the scheme has not been implemented in these
two states so far (MoTA 2015).
Clean Development Mechanism (CDM)
As provided under Article 12 of the Kyoto Protocol, CDM enables
developing countries to issue certified emission reductions (CERs)
to developed economies who invest in these developing countries to
reduce their GHG emissions in order to meet their targets stated in the
Kyoto Protocol (UNFCCC, “What is CDM”, undated). A part of the
investments received by developing countries go towards afforestation
activities and to promote sustainable forestry. The CDM is also the
Chapter 2 Innovative Financing for Low Carbon Development 303
