(Authoritative English text of this department Notification No. FFE-B-A(4)3/2005 dated 31.3.2008 as required under clause (3) of Article 348 of the constitution of India).

Government of Himachal Pradesh

Department of Forests

No. FFE-B-A(4)3/2005_ Dated Shimla-2, the 31^st March, 2008

NOTIFICATION

WHEREAS, the State Government constituted Advisory Committees vide Notification No. FFE-B-A(4)3/2005 dated 13.11.2007, to advise the State Government in the matter of fixation of fair and reasonable price of the forest produce for the financial year 2008-09, as required under Section-6 of the Himachal Pradesh Forest Produce (Regulation of Trade) Act, 1982, (Act No. 5 of 1982).

AND WHEREAS, the Advisory Committees constituted for the Forest Divisions have tendered their advice to the Government as required under section 6 of the Act.

NOW THEREFORE, in exercise of the powers conferred by Section 7 of the Act ibid, the Governor, Himachal Pradesh, is pleased to fix price at which HP State Forest Corporation shall purchase the forest produce from the owners, such forest produce which has been mentioned in the schedule appended to the Act ibid, for each of the following Forest Divisions of the State of the Himachal Pradesh for the financial year 2008-09 as under:-

Price of standing trees per M3
Sl No	Forest Division of HP Forest Department	Deodar Rs. M3	Kail Rs.M3	Fir Spruce Rs.M3	Chil Rs.M3	Sal Rs. M3	Sain	Oak & other Broad leave species
1	Chamba	3851	2244	597	714	0	0	0
2	Bharmour	3089	2394	640	891	0	0	0
3	Churah	3851	2244	597	714	0	0	102
4	Dalhousie	3982	2656	706	773	0	896	102
5	Palampur	3392	2669	710	673	0	0	102
6	D/sala	3392	2669	710	627	0	896	102
7	Nurpur	0	0	0	616	730	896	102
8	Una	0	0	0	681	730	896	102
9	Seraj	3926	2574	938	891	0	0	0
10	Parvati	3926	2574	938	891	0	0	0
11	Kullu	3926	2574	938	891	0	0	0
12	J/Nagar	3912	3073	821	598	0	896	102
13	Mandi	3912	3073	821	598	0	0	102
14	Nachan	4994	3639	966	598	0	0	0
15	Karsog	3880	3047	817	598	0	0	102
16	Suket	4100	3222	861	598	0	0	102
17	Hamirpur	0	0	0	753	0	896	102
18	Dehra	0	0	0	627	0	896	102
19	Bilaspur	0	0	0	598	0	896	102
20	Chopal	4914	2840	756	584	0	0	102
21	Nahan	0	0	0	722	730	896	102
22	Rajgarh	4813	2795	743	914	730	0	102
23	Paonta	0	0	0	722	730	896	102
24	Renuka	4813	2795	743	914	730	896	102
25	Rampur	4110	2206	585	753	0	0	102
26	Kinnaur	4110	2206	585	0	0	0	0
27	Kotgarh	4110	2206	585	753	0	0	102
28	Anni	4110	2206	585	753	0	0	102
29	Rohroo	4767	2653	706	644	0	0	0
30	Theog	4569	2615	696	785	0	0	0
31	Shimla	4569	2615	696	785	0	0	102
32	Solan	4569	2615	696	914	0	0	102
33	Kunihar	0	0	0	697	730	896	102
34	Nalagarh	0	0	0	697	730	896	102

Note:

I) The volume of “stunted/suppressed” trees of different species shall be taken as 5/8 (62.5%) for the purpose of payment.

II) No unfit and Vth class tree shall be marked and taken over by the HP State Forest Corporation. If marked or taken over, no payment of the same shall be made to the seller.

1.1 The above price shall be further subject to the following conditions, namely:-

(a) Price payable for the volume of the tree in respect of IVth class trees (dbh below 30 cms.) shall be 50% of the price fixed above.

(b) In the case of dry and fallen tree(s), the price shall be 60% of the price fixed above. Further in case of dry and fallen tree(s) in respect of IVth class trees (dbh below 30 cms.) the price shall be 60% of the price specified in (a) above.

(c) In case of the tree(s) which are found rotten after felling, the price shall be 30% of the price fixed in above table and sub para (a) and (b) in case the rot is found in the centre. Similarly in case the rot is found from outside and is more than 25% of area at cross section of stump, the price shall be 30% as in the case of centre rot. To ascertain it, a joint team comprising of Assistant Manager concerned of HPSFC and Range Officer concerned of the Forest Division will inspect the trees in which the seller/owner shall also be associated. Further in the case of dry and fallen tree(s) in respect of IV class tree(s) (dbh below 30 cms) which are rotten, the price shall be 60% of the price specified in (b) above.

1.2 The payment of price shall be made in the following manner:

(a) 50% of price shall be paid after the forest produce, reaches at Road Side.

(b) Balance price shall be payable immediately after final sale of the forest produce.

1. SALE LINKED PRICE

2.1 The Seller /Owners shall have an option to opt for price of forest produce linked with its actual sale realization. The process and method for determining the price of forest produce linked with sale, hereinafter known as "Sale Linked Price" shall be calculated by deducting actual direct expenses with interest and handling charges from the actual sale realization of the produce in the market, as under:-

A) Final sale realization (including of forfeiture of securities and earnest money, Insurance claim, if any) of the forest produce.

B) Actual direct expenses on felling, conversion, carriage, transportation, loading, unloading, stacking, insurance, road tax etc.

C) Interest on investment i.e. on item No. (B) ibid. at the borrowing rate of interest, prevalent on 1^st April of each year, plus (+)1% extra.

D) Handling Charges @ 18% on sale realization i.e. on item No. (A)

E) Price of the produce = A - (B+C+D)

F) Advances paid to the seller/ owners

G) Interest on the advances, if any, taken by the seller/owner till its recovery at the borrowing rate of interest, prevalent on 1^s April of each year, plus 1% extra.

H) Interest payable to the seller/ owner at the borrowing rate of interest, prevalent on 1^st April of the year in which final sale made, if balance amount is delayed beyond two months after the final sale.

I) Balance payable = (E+H)-(F+G)

2.2 Advances to the seller/ owner of the forest produce under the "Sale Linked Price" shall be made on request as below, by taking into account the expected yield to be obtained, likely expenditure and expected sale to be applied as per parameters stated above on tentative basis: -

(i) 25% after handing over the possession of forest produce and execution of the Sale Deed;

(ii) 25% on extraction of entire forest produce from forest and its carriage to Road Side; and

(iii) Balance after completion of sale and finalization of accounts, to be paid within two months of having recovered all dues including advances paid to the seller/owners. However, if final sale realization is delayed in that case till final sale realization, part payment of the sold produce may be considered by the HPSFC to the following extent:-

“If entire extracted timber has reached at Sale Depot and out of that 70% or more has been sold and sale proceeds realized, the seller shall be given one opportunity for getting advance payment to the extent of 80% of the sale proceeds realized of his timber after adjusting 2 instalmentsy and all deductions of the amount spent on his total timber by the Corporation, interest, handling charges etc. The sellers shall not be entitled to this advance payment as a matter of right and applications shall be considered on merit to avoid hardship.

3. GENERAL CONDITIONS:-

3.1 The owners/sellers shall have to exercise an option either to take payment as fixed for standing trees or payment based on "Sale Linked Price". The option so exercised shall be incorporated in the Agreement Deed to be executed between the seller and purchaser. The option once exercised shall be final and irrevocable.

3.2 The price shall be applicable for the trees taken over from 1.4.2008 to 31.3.2009, (financial year 2008-09), both days inclusive, by the HP State Forest Corporation from the sellers.

3.3 The custody and the ownership of the forest produce shall pass on to the HP State Forest Corporation on the date when the forest produce is taken over and Agreement Deed executed. In case any extension/deviation is involved, the seller shall be responsible to obtain the same from the competent authority.

3.4 The working period shall be two years in respect of Deodar, Kail, Fir/Spruce and in respect of other scheduled species it shall be one year. Year shall mean complete one year (365 days or 366 days, as the case may be) from the date of issue of felling order.

3.5 In case conversion percentage of timber of all kind excluding Pulp Wood, Fuel Wood and Fire Wood is more than 65% in respect of Deodar species and 55% in case of other scheduled species the permission for export under the HP Forest Produce (Transit Land Route), Rules, 1978 shall have to be obtained from the concerned Divisional Forest Officer, which shall be given within one month.

By order,

Additional Chief Secretary (Forests) to the Government of Himachal Pradesh.

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