Negligence costed 250 Cr loss in Red Sandal auction!

Andhra Pradesh government has targeted income of 1000 Crores from the first phase auction of Red Sandal logs but ended up collecting around 855 Crores. It is said that the negligence of Forest officials had costed the state treasury close to 250 Crore in this auction.

36 Lots of Red Sandal logs have got very less quotes. Bidders have bid 137 Crores less than the expected prices for these 36 Lots and 24 Lots are totally remained unsold. Government has decided to hold these 60 Lots and put them up for auction once again in the second phase.

It is revealed in the internal inquiry that the officials did not properly dress those timber logs (Removal outer skin) and also stuffed them in dark. Finally these lots did not attract buyers when they visited concerned godowns. The Chief Minister warned the officials to not to repeat the mistake in the second phase. 250 Crore is a pretty big loss for a state which is already infected with deficit budget.