Monday, July 17, 2000,
Chandigarh, India






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Contractors ‘plundering’ forest wealth
From Rakesh Lohumi
Tribune News Service

SHIMLA, July 16 — The detection of excess timber worth over Rs 10 lakh at the Rampur depot of the state Forest Corporation recently has once again highlighted the failure of the government to streamline the functioning of the public sector undertaking which has virtually being used as a front by contractors to “plunder” the forest wealth of the state.

Forest contractors have reportedly been mixing timber procured illegally with the timber from private sale lots in connivance with staff of the corporation.

This enabled the contractors to transport the illegal timber out of the state. The Forest Department is not in a position to discharge its regulatory role effectively due to the decision of the government to grant powers to issue export permit for the transportation of timber to Divisional Managers of the corporation.

This decision was wrong as issuing an export permit was the job of the Divisional Forest Officer concerned and not that of any official of the corporation.

There are several loopholes which are exploited by forest mafia in league with employees of the corporation. The Forest Corporation was set up to eliminate contractors who were responsible for the large-scale illicit felling. However, as evident from numerous scandals which have come to light, it has proved to be counter productive.

The main reason for it is that the actual felling work is still being carried out by the contractors and the corporation has merely become an “agency” for their nefarious activities. The contractors are now performing a dual role. On the one hand, they are acting as agents of villagers for selling the trees to the corporation and on the other hand, as labour supply mates to fell the trees for the corporation. They usually give a meagre amount to tree owners and made money by mixing illegal timber in private lots. This has been made possible due to the insistence of the corporation to work the private lots on the basis of economics instead of the royalty system under which the tree owner is paid the cost of the tree on the basis of the price fixed by the government every year. In the economic system, the net returns after carrying out felling and sale of timber are paid to the owner.

The corporation and the contractors have a vested interest in persisting with the economic system. The yield from the private lots is invariably inflated while working out the economics of the private lots leaves scope for mixing illegal timber. The booty is then allegedly shared by officials and the contractors who as agents of the tree owners, secure the special power of attorney to receive payments. A large number of trees allotted under the timber distribution are also exported by mixing them with the private sale timber.

The high-ups in the corporation admit that the economic system has been encouraging malpractices, but are reluctant to take corrective measures. At a high-level meeting presided by the Forest Minister, Mr Roop Singh, on May 3, this issue was discussed at length and it was decided that the corporation should switch over to the royalty system. It underlined the need to amend the State Forest Produce (Regulation of Trade) Act, 1982, to ensure timely fixation of royalty rates and called for minimising the role of special power of attorney so that the tree owners got remunerative returns.

However, no follow-up action has been taken. The royalty rates for 2000-2001, which should have been announced by February, have not been fixed so far. Department officials feel that instead of fixing the rates on the recommendations of various divisional-level committees, the government should set up a state-level committee to work out the rates indexed to market rates of various species of timber. There are 38 forest divisions in the state and over the past 15 years, the process to recommend rates has never been completed.
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