Sanders Sale Not Enough to Bail Out AP

With the government issuing GOs for global tenders and e-auctioning of 5,200 tonnes of the

Published: 30th July 2014 08:15 AM  |   Last Updated: 30th July 2014 08:15 AM   |  A+A-

TIRUPATI: With the government issuing GOs for global tenders and e-auctioning of 5,200 tonnes of the seized red sanders logs lying in various forest depots and also with the Directorate of Revenue Intelligence (DRI) for a long time, officials of the Tirupati forest circle fulfilled all the necessary arrangements. Out of all the 4,000 tonnes from the state, about 2,700 tonnes of logs are going for tenders from Tirupati circle itself.

However, the government is unlikely to get the total proceeds of the auction as it had to provide 30 per cent of the revenue on developing of forest and another 1.7 per cent as service charge to Metal Scrap Trading Corporation (MSCT) which is auctioning the logs.

As Tirupati forest circle consists of seven divisions in Chittoor, Kadapa and Nellore districts, known for red sanders dense forests as well as for rampant smuggling activity, the maximum quantity of the seized logs got piled up in the forest depots in the three districts and the officials here took the task of providing maximum quantity of logs.

“We have already kept ready about 2,700 tonnes of logs against the total of 4,000 tonnes cleared by the government to put for e-tender and e-auction in the first phase and arranged them in the form of e-lots,’’ Tirupati wild life circle Chief Conservator of Forest (CCF) P Ravi Kumar said.

All the dressed logs weighing 2,700 tonnes are arranged into 118 e-lots, as the bidders have to file tenders or e-auction for purchase of at least one e-lot.

While 53 e-lots (weight 1,446 tonnes) are prepared in the forest depot at Tirupati, 36 (680 tonnes) and 29 e-lots (583 tonnes) are kept ready in Rajampet and Bhakarapet forest depots respectively, he said.

During the auction, all the information regarding each and every e-lot along with video and photographs will be placed on the website and the bidders can know it before filing their tenders. The forest officials will also provide log-wise record in the e-lots. Every e-lot will be given a grading and will have its own log-wise register, which contains the details - number of logs in the e-lot, quality, width and length of each and every log.

“Our job regarding the global tenders and e-auction is almost over and we will only have to upload the information of e-lots on website,’’ he maintained.

Meanwhile, the high hopes of the new Andhra Pradesh government over getting huge amount through the sale of seized red sanders logs seems getting shattered.

The government, which initially thought that the revenue generated through the sale of the precious logs, will come in handy to take up the process of its loan waiver promise, is not able to get the expected amount.

As the government is fixing Rs 12 lakh, 10 lakh, 8 lakh and 7 lakh as base price for a tonne of A grade, B grade, C grade and non-grade logs respectively, it could only get a maximum amount of Rs 800 - 1,200 crore by auctioning all the 8,000 tonnes of logs under its purview.

However, another twist is that in the revenue generated through the global auction, the government has to give 30 per cent for taking up forest development activities and red sanders development activities in the areas from where the logs are chopped in the forest.

Adding more salt to this, the Metal Scrap Trade Corporation (MSTC), an organisation of the Central government, which is taking the global auctioning process will also take 1.7 per cent in total revenue towards service charges for taking up the task.

Hence, the government is only expected to get a meager revenue through red sanders, which can no way bail out the government from its financial deficit.

revenue woes

■ Government is unlikely to get total proceeds of auction as it had to provide 30 per cent of the revenue on developing of forest

■ Another 1.7 per cent as service charge to MSCT

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