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J&K turns Forest Corporation into PSU with ₹10 cr share capital

by the owl speaks

Jammu & Kashmir is, possibly, the first Union Territory (UT) or State in the country to convert its Forest Corporation into a registered, public sector undertaking with a share capital of ₹10 crore.

J&K Lt. Governor G.C. Murmu on June 6 sanctioned the creation of the J&K Forest Development Corporation (J&K FDC) as a registered company to replace the J&K State Forest Corporation (J&K SFC) after the passage of the J&K Reorganisation Act, 2020, that created the UTs of J&K and Ladakh.

Previously, the J&KSFC was tasked to “undertake removal and disposal of trees and exploitation of forest resources entrusted to it by the Government” as per the old website that is still available online. It was also mandated to “manage, maintain and develop such forests as are transferred and entrusted to it by the Government till these are handed back to the Government”.

The Board of Directors of J&K FDC will comprise of the Administrative Secretary of the Department of Forests, Ecology and Environment as its chairman, five directors — including the administrative secretaries of Finance, Tribal Affairs, Industries and Commerce, Rural Development, and Principal Conservator of Forests, J&K — and Managing Director J&KFDC as its member secretary.

Former J&K finance minister and economist Haseeb Drabu said the erstwhile corporation has been moved from a department undertaking to a non-department undertaking, with implications on its budget allocation, resources and resource use.

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