The recently concluded Red Sandal Auction by Andhra Pradesh State government has yielded around 855 Crore in the first phase. According to the rules, the winning companies have to pay 25% of the total amount by Thursday evening. But only 16 companies paid the amount within the timeline much to the disappointment of the state government. 95 Crores were deposited in Forest department treasury so far.
Few companies have requested more time to pay the 25% money and the government is likely to accept it. 2693 tonnes were sold in the auction. Out of which Indian companies won 781 tonnes while foreign companies bid for 1912 tonnes.
Indian and Dubai companies are expected to use this for medicines while Chinese companies will use the timber for furniture. Baba Ramdev’s Patanjali bought A grade Red Sandal which was sold for 1.95 Crore per ton. The forest department is also planning to stage the second phase auction very soon. The announcement for the auction is expected to take place in this month itself.
