If reports are to be believed, the successor state of AP earned a whopping Rs 1000 Crore by auctioning confiscated red sanders logs. For sale and export of 3,615 metric tonnes of confiscated red sanders logs, AP managed to rake in Rs 991 Crore, say government officials in the know. Whereas it is going to garner Rs 1000 Crore by selling total 4160 tonnes of red sanders logs, categorized as A, B and C grades.
Interestingly, the whole auctioning is being carried through e-auction system with the help of central government’s Metal State Trading Corporation (MSTC) e-commerce platform. Once it’s concluded, the MSTC will submit list of the highest bidders to the state government, which will then initiate the process of sale and exports. The AP state government had conducted road shows and pre-bid meetings in China and Japan, where the wood has huge demand.
Following this, over 400 prospective buyers including 140 from China, Japan, Singapore and other countries visited the red sanders depots. Classified as endangered in International Union for Conservation of Nature’s red list, red sanders fetches Rs.25 lakh per tonne in the international market. It is mainly used in aphrodisiac drugs and for making musical instruments and furniture.
Although the Director General of Foreign Trade had given permission for sale of 8,584 tonnes, the state government decided to put only 4,160 tonnes for sale and export in the first phase. The remaining red sander is expected to be sold in the second phase. According to rules and regulations of e-auction, the successful purchasers, including both Indian and foreigners, would have to deposit 25 percent of the sale amount in 10 days and the remaining 75 percent in 30 days.
The exports have to be completed within 90 days of confirmation of the sale. Out of these Rs 1000 Crore, AP State government is planning to use 30 percent for protection of the natural red sander forest. The remaining 70% of money would be used for the government’s scheme to waive farm loans. Looks like, Naidu’s plan is minting money for AP government.
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