‘Revenue earned in last few months higher than money generated in a year through old system’

The new system of inviting tenders for felling trees has brought the Punjab State Forest Corporation out of the woods. Listed for disinvestment, the corporation has made Rs 11.60 crore since July, when the tendering system was introduced.

Punjab Forests Minister Tikshan Sud told The Indian Express that the revenue earned through tendering of trees in about four months was more than the money that the old system generated in a year. Of the Rs 11.60-crore revenue, the government has got Rs 8.35 crore, while the share of the corporation is Rs 3.25 crore. This time, major part of the income came from the widening of the GT Road. The government, through the Forest Department, sells trees to the corporation on a fixed royalty. As per the earlier system, the corporation would engage labourers for felling and then auction the timber. It got only 20 per cent of the money, while the major portion went to the government.

Sources said when the rates at which the forest department sold trees to the corporation invited audit objections, the government constituted a committee to recommend revised rates, which suggested a price that was almost three times higher than the previous price. As the corporation found the new costs non-viable, it rooted in vain for implementation of Haryana rates, which were one and a half times higher than Punjab. To survive, the only option left with the corporation was introduction of the tendering system. When asked if more profits point to corruption that had been taking place earlier, the minister said, “Yes, it may be true as there were many forces working against the tendering system, but we decided to go ahead with it. And the profits have vindicated our stand.”

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