ANDAMAN & NICOBAR ISLANDS  FOREST & PLANTATION DEVELOPMENT CORPORATION LTD.

[A Government of India Undertaking]   

Activities

Projects

Achievements

Future Plans

GENESIS :

             The Government of India in the wake of acceptance of the recommendations of National Commission on Agriculture contained in their report on “Production and Man made Forests” in 1972, sanctioned the establishment of Andaman and Nicobar Islands Forest & Plantation Development Corporation Ltd., which was incorporated under the Companies Act, 1956 on 21.1.1977 with headquarters at Port Blair.   The main objective of forming the Corporation was to develop and manage the inaccessible forests in Little and North Andaman on the principle of sustained annual yield and to undertake cultivation of agricultural and horticultural crops i.e. red oil palm, rubber, spices, medicinal and aromatic plants.

 ACTIVITIES :

The activities of the Corporation are as follows:-

a)      Scientific harvesting of forests on the principle of  sustained annual yield  with  least disturbance to the local ecosystem. 

b)      Regeneration of the forests with indigenous species under the time tested silvicultural system called the “Andaman  canopy lifting shelterwood system”.

(c)  Protection and conservation of the forests.

(d)   Commercial management of Red Oil Palm plantation and processing of its fruits for production of Crude Palm Oil.

(e) Commercial management of Rubber Plantation in Katchal Island.

(f)   Marketing of the products of plantations as well as of forests.

(g)  Construction of roads, buildings and other infrastructure required by the Corporation.

       The Corporation has three projects viz. Forestry project in Little and North Andaman Islands, Red Oil Palm Project in Little Andaman Island and Rubber project in Katchal Island.  

     

                                                                                                                                        

Projects :

          FORESTRY PROJECT :

            The Corporation has been leased 19600 ha of forest areas in Little Andaman and 11188 ha in North Andaman. The lease extends to a period of 30 years commencing 01-04-1977.According to the project report approved by the Government of India, the forests of Little Andaman were taken over and forestry operations started from 1.4.1977. Later, forestry operations were extended to North Andaman forest area from 1.4.1979. The project encompasses scientific harvesting and regeneration of forests on the principle of sustained annual yield.  At present as per the interim order passed by the Hon'ble Supreme Court of India in I.A 502 of 1999 in WP(C) No. 202 of 1995 (T.N.Godavarman Thirumalpad vs. U.O.I &Others) the felling of naturally grown trees has been suspended and consequently, the Corporation is anticipating to incur considerable financial loss and the present position has been brought to the notice of the Administrative Ministry. 

 

  RED OIL PALM PROJECT :

            As a corollary to the drive for producing more edible oil in the country, the Government of India sanctioned a Project Report for raising 2400 ha of Red Oil Palm plantation in Little Andaman Island. Under this programme, an area of 1593 ha has also been brought under Red Oil Palm plantation.

               The Forest Corporation commenced implementation of the plantation project in 1979. It was envisaged that after the first phase of plantations involving 2400 ha. the plantation area would be extended to 5000 ha. to make the project viable. However, in 1985-86, there was a sudden shift in the policy and the Govt. of India in January 1986 imposed a ban on further extension of red oil palm plantation in these Islands in view of the adverse ecological impact perceived due to monoculture cultivation of red oil palm.

            Gestation period of Red Oil Palm is relatively long, varying from 6 to 10 years. To process the fruits produced in the Red Oil Palm Plantations, a fruit processing mill with a capacity of 1.5 MT Fresh Fruit Bunches (FFB) per hour was established in the year 1985. This capacity was enhanced by 4 MT FFB/hour in May, 1992. The existing capacity of the mill is sufficient for the fresh fruit bunches produced in the Plantations.

             RUBBER PROJECT :

             This project was started as a rehabilitation project in 1967 by the Rehabilitation Ministry for the rehabilitation of the Srilankan repatriates. The Rubber Board, which was looking after this project raised only about 600 ha. of rubber plantation as against the original target of 2,400 ha. As this project was besieged with many internal problems and since the Rubber Board was unable to run this as a commercial venture, the Government of  India entrusted its management to the Andaman and Nicobar Islands Forest & Plantation Development      Corporation     Limited    from Ist April, 1983. Today, this 614 ha (Gross area) of Rubber Plantation. From 1997-98, the Corporation has commenced replantation of old Rubber Plantation also. Enlargement of the area under rubber plantation attracts Forest(Conservation) Act 1980. National Forest Policy 1988 also discourages plantation of monoculture by replacing naturally grown forests.   

                                                                                                                                                                                                                                                                                                                                                                                                ACHIEVEMENTS :                                       

  1.       PHYSICAL :  

                                                                                     

 

.2.             FINANCIAL :

The turn-over, profit earned by the Corporation and the payments made by it to the Government in the shape of Royalty, Income Tax, Dividend etc. during the last five years as under:

                                                                                       (Rs. in lakhs] 

  The Corporation has received an equity share totaling Rs. 359.18 lakhs from the Government as against the authorized share capital   of Rs. 600.00 lakhs. The company is fully owned and controlled by the Central Government. Out of 35918 equity shares of Rs.1000 each, 35916 shares are held by the President of India and one share each by the Lt. Governor, Andaman & Nicobar Islands and the Inspector General of Forests, Govt. of India. This investment has now multiplied to a gross fixed asset of about Rs. 1697.69 lakhs. In addition, the Company has also contributed about Rs.3429.05 lakhs as royalty    of  timber to Forest Department, Rs. 2512.57 lakhs as Corporate Tax and Rs.455.08 lakhs as Dividend to the Government  since its inception. In view of its consistently good performance, the Govt. of India in 1997, conferred a ‘mini ratna’ status on the Corporation.

              Although, the Corporation as a commercial organization has been able to generate sufficient funds so far, it is now bogged down by several non-commercial constraints  as already indicated earlier.  

                                                                                                                                               

 FUTURE PLANS

In spite of various constraints the Corporation is now focusing on expansion of Red Oil Palm plantations in Little Andaman. Such expansion can either be undertaken in revenue/Panchayat land or in forest lands after obtaining necessary clearance under the Forest and Environmental laws. Such expansion alone can absorb the manpower which may be released in future when the scale of operation of forestry project are reduced further. During the year 1997-98 the Corporation has also started diversifying into civil construction work on behalf of other organizations/departments. Consequent upon the imposition of ban on felling  of  timber, the Corporation has  proposed of taking up medicinal/aromatic plantations as an inter crop with the Red Oil Palm Plantation.   Andaman and Nicobar Islands, rich in tropical rain forests and coastal beaches hold potential for development of eco-tourism.  There are proposals to take up tourism activity as a commercial venture.  The Corporation has also invited proposals to formulate a strategic management plan which will critically study the potential for new lines of business.

FORESTS       ISLANDS     WILDLIFE       MANGROVES    ORGANIZATION			BIOLOGICAL PARK       BIOSPHERE RESERVE   ENVIRONMENT
DEVELOPMENT SCHEMES	E & F DEPARTMENT	PLACES OF INTEREST	CHATHAM SAW MILL	PROTECTED AREAS	ACRONYMS