Andhra Pradesh government will conduct the third phase of global e-auction of seized red sanders logs for three days from October 28.
According to official sources, 2,868 metric tonnes of red sanders wood in log form would be sold through e-tender cum e-auction. Expressing confidence about the demand in the global market, the sources said the third phase was expected to fetch around Rs. 750 crore to the State exchequer.
The Director General of Foreign Trade, Ministry of Commerce and Industry, permitted the State government to export 8,584 metric tonnes of the confiscated/ seized stock available with it. The whole process would have to be completed by April 30, 2016.
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While the sale of graded red sanders logs of 2,694 metric tonnes in the first phase yielded Rs. 855 crore, the response was poor from global bidders in the second phase.
Although 3,500 metric tonnes were put for e-tender cum e-auction, only 830 MTs of C grade were sold in the second phase, which fetched Rs.178 crore to the exchequer.
The sale did not take place for the remaining quantity of 2,780 MTs of A and B grade logs with the government not accepting the highest prices quoted by the bidders then.
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The sources said only 2,868 MTs would be sold in third phase although there was permission for more quantity.
“We want do not want to glut the market and create a sudden fall in prices. There is time to till April to conduct another phase of auction”, the sources added.
A tender committee constituted by the government for sale of 2,868 MTs in the third phase has fixed Rs.21 lakhs per MT for ‘C’ grade, Rs.38 lakh per MT for ‘B’ grade and Rs. 52 lakh per MT for ‘A’ grade.
Like in the previous phases, M/s MSTC Ltd., has been engaged as the agency for conducting global e-tender cum-e-auction in the third phase. The AP Forest Development Corporation Ltd., has been appointed the export agency to realise the sale proceeds.
2,868 metric tonnes of red sanders wood in log form will be sold through e-tender cum e-auction