Jammu Kashmir, is 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.
G.C. Murmu has sanctioned the creation of the J&K Forest Development Corporation (JKFDC) as a registered company to replace the J&K State Forest Corporation (JKSFC) after the passage of the J&K Reorganisation Act, 2020, that created bifurcated Jammu Kashmir.
Previously, the JKSFC was assigned the task to “maintaining the forests and developing them, but now the same task has been handed over to the JKFDC.
The share capital of ₹10 crore, divided into one lakh equity shares worth ₹1000 each, has been earmarked underthe Companies Act, 2013, an official order of June 22, accessed by The Hindu read.
“All the shares except two shall be held by the Lieutenant Governor. One share each shall be held by the Administrative Secretary of the Department of Forest, Ecology and Environment and the Administrative Secretary of the Finance Department,” the order said.
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 JKFDC as its member secretary, the Hindu reported.
The move is being seen as likely to allow people from outside to buy forest land, but nothing of the sort has been mentioned in the order.