Red sanders sale to fetch about Rs. 1,000 cr. to AP

November 26, 2014 12:48 am | Updated 12:48 am IST - HYDERABAD:

The week-long global e-auction for sale and export of 4,160 tonnes of confiscated red sanders logs is expected to fetch about Rs.1,000 crore to the Andhra Pradesh government.

According to official sources, they were expecting an average price of Rs.22-25 lakh per tonne in the global market.

Meanwhile at a press conference on Tuesday, Principal Chief Conservator of Forests, AP Government, A.V. Joseph and Additional Principal Chief Conservator of Forests, P.K. Jha said a total of Rs. 261 crore was quoted for 862 tonnes of the wood when the e-auction ended on the first day on Monday for 30 lots from the Tirupati depot.

After a day’s gap, the remaining 147 lots would be put for sale at an average of 30 lots each day when the e-auction begins on Wednesday. Although e-tender-cum-e-auction, which began at 12 noon, was to end at 3 p.m, bidding went on till 10.22 p.m. on Monday with many Indians and foreigners participating in it.The red sanders logs of A grade got a price Rs.1.95 crore per tonne during the bidding on Monday. Of the 862 tonnes, A grade was 4.69 tonnes, B grade-78.13 tonnes and C grade-779.18 tonnes. The price for B grade ranged from Rs. 56.65 lakh to Rs.155.22 lakh per tonne it varied from Rs.16.51 lakh to Rs.35.16 lakh per tonne for C grade logs.

They said that after completion of the e-tender-cum-e-auction, the government would have to confirm the sale within a week. Subsequently, within 10 days, the successful purchaser would have to deposit 25 per cent of the sale amount and remaining 75 per cent in 30 days. The exports have to be completed within 90 days of confirmation.

While the entire A grade quantity of 4.69 tonnes was put on sale on Monday, the B grade logs of 166.185 tonnes and C grade wood of 3,988 tonnes would be put to e-auction during the remaining days.

Officials heave a sigh of relief

With only 4,160 tonnes being put for sale and export in the first phase although the the Director General of Foreign Trade gave permission for 8, 584 tonnes, they said the government would take a call on the quantity to be sold during the second phase after seeing the global market response in the first phase.

The officials expressed relief that the auction was going on as per schedule after a Division Bench of the Madras High Court declined to admit a PIL against the red sanders sale on Tuesday and the AP High Court too refused to admit another petition on Monday.

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