Red Sanders to get 1000 Cr more for cash strapped AP

Andhra Pradesh government is all ready for the second phase of auctioning of Red Sanders. The state is targeting at least 1000 Crore from this sale while the state amassed 850 Crore from the first auction with each tonne going for an average of 24 Lakhs. Metal Scrap Trading Corporation (MSTC) which operates under the administrative control of the Ministry of Steel, Government of India has taken the responsibility of inviting tenders from the buyers.

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In the last auction C grade Red Sandal is more but this time A and B grade are available more and so the price will get better. 3600 tonnes of Red Sandal will be auctioned in this phase. Out of which 700 tonnes are A grade, 1200 tonnes are B grade and 1700 tonnes are C grade.

The starting prices of the timber are like this – 30 Lakhs for A grade, 20 Lakhs for B grade and 12 Lakhs for C grade. In the last auction, A grade Red Sandal went up to 1.9 Crore, the government is hoping for even more in this auction. Andhra Pradesh Forest Development Corporation (APFDC) will be getting 2% commission as Export Agency.