Forests provide numerous goods and services that support life. The importance of forests in a country such as ours is even more significant considering the large amount of marginalised communities that depend on forests. When a patch of forests is diverted for non-forestry purposes, its implications on human well-being are felt at various spatial and temporal scales on account of loss of goods and services that the patch of forests has provided. In addition, livelihoods and subsistence needs of rural and tribal communities dependent on forests are severely compromised. While developmental activities are essential for economic development of the country, it is necessary to ensure that this development does not come at the cost of India' s invaluable natural capital – its forests. However, a common denomination to scientifically evaluate both these aspects simultaneously is often unavailable. This report is an attempt to bridge this gap by revising the Net Present Value (NPV) of forest diversion for non-forestry purposes.