Odisha starts auction of red sanders, makes Rs 7 crore in first round
The OFDC will pay service charges at 0.5 per cent sale value subject to maximum Rs 75 lakh to the MSTC limited for each auction.
Published: 27th February 2023 09:59 AM | Last Updated: 27th February 2023 09:59 AM | A+A A-
BHUBANESWAR: Eyeing a windfall gain from the sale of red sanders felled by cyclone Titli in 2018, the state government has finally initiated the e-auctioning of the precious wood through global e-tender, earning Rs 7 crore from an international bidder in the first round.
Officials said a total 809.78 tonne red sanders, also known as red sandalwood or ‘Rakta Chandan’ has been put to global e-tender-cum-e-auction. “The timber will be auctioned in 38 lots of which two lots were cleared in the first cycle of the e-auction held on February 17,” said a senior official from the Forest department.
Two more cycles of e-auction has been planned on March 3 and March 17. However, the auction cycles will continue in regular intervals till all the timber lots are sold, the officer said. Officials said the state government is expecting to earn a revenue of around Rs 400 crore to Rs 500 crore from the global sale of the timber. However, the auction may fetch much more than the expected value as price of high-grade red sanders sometimes cross Rs 1 crore per tonne in the international market, they said.
The high-grade red sanders, that fell in cyclone Titli in Paralakhemundi Forest Division, are said to be over 100 years old. The trees had been planted by the then Maharaja of Parlakhemundi in 1912. The density of the wood is also said to be much more compared to other red sandalwood found in the country.
The state Forest, Environment and Climate Change department initiated process for global e-tendering and e-auction sale of the timber last year after Centre relaxed the export norms for Odisha to sell the valuable wood.
A committee involving Odisha Forest Development Corporation (OFDC) officials prepared the terms of reference, while the corporation also came into agreement with the Metal Scrap Trade Corporation Limited (MSTC), a central PSU, for the global e-tendering and e-auction sale of the timber.
The OFDC will pay service charges at 0.5 per cent sale value subject to maximum Rs 75 lakh to the MSTC limited for each auction. It has also been allowed to pay 1 per cent TDS to the e-commerce operator as per income tax norms.
