A proposal by itc Ltd to set up a pulp and paper plant has rekindled the debate on allowing the private sector access to the country's degraded forestland.

O ne of India's largest paper producers, itc plans to invest Rs 2,500 crore to set up an elemental chlorine-free plant. Only its location remains to be finalised. This decision is expected in a month or so, once the company sorts out issues relating to availability of water, electricity and, most significantly, sourcing of the raw material: wood. According to Pradip Dhobale, chief executive officer, itc Paperboards and Speciality Papers Division, Hyderabad, the plant will have an annual capacity of 200,000 tonnes, for which it will need wood from about 75,000 hectares (ha) of plantations.

However, an amendment to the Forest Conservation Act (fca), 1980 prohibits degraded forestland from being used for captive plantation by private companies. This was done to ensure continued access to poor communities dependant on minor forest produce, which provides many people their only source of livelihood. Such communities also use the forests to meet their fuelwood needs and for fodder for their livestock (see box:Loss or gain). Besides, captive plantations promote monoculture