Forest Development Corporation of Meghalaya

Function and activities of the FDCM Ltd.

The Forest Development Corporation of Meghalaya Ltd. is an organisation registered with Registrar of Companies vide certificate of Incorporation No. 1611 of 1974 – 75. The authorised share of the Company is 2.00 crore. Against the above authorised share of 2.00 crore the total paid up capital upto 2019-20 is 197.18 lakhs. The Company has two main share holders viz his Excellency the President of India and his Excellency the Governor of Meghalaya. The former held the equity share value of Rs. 20 lakhs and the latter of Rs. 177.18 lakhs respectively. In addition to the above the two equity share which is transferable is held by Principal Chief Conservator of Forests and Deputy Secretary Forests & Environment Department @ of Rs. 100/- each equity share.

Present Function and Activities of the FDCM Ltd.

1. Timber Trading Business:

At present the main functions and activities of the FDCM is timber trading business in which revenue is ploughed back to disbursed the pay of staff and meeting other exigencies viz maintenance of office and plantations. The timbers are procured from the following sources:

  1. Timber allotted by Government:

Yearly the Government earmarks wind fallen trees and unclaimed seized timbers lying in various Ranges and Beat Office under the Territorial Division. The above timbers, some of which are lying scattered inside the Government Reserved Forest areas and some stacked inside the depot are allotted to the FDCM Ltd. These timbers in advance are prepared into lots by the Range Forest Officer along with its valuation and submitted to the Divisional Forest Officer, who in turn forwards it to Principal Chief Conservator of Forests. The Principal Chief Conservator of Forests, through approval from Government offer the timber to FDCM on condition that the timber is paid its royalty before lifting. However before the FDCM pays the royalty, an officer is sent to inspect the timber and when satisfied about its physical condition, the royalty is deposited to the Divisional Forest Officer simultaneously requesting him for issue of lifting order. The above timbers are either transferred to the FDCM licensed saw mill at Darugiri or Nongpoh for conversion to sawn timber or sold at site to timber contractors through auction or direct negotiation at some profitable price above the royalty rate. Timbers brought to the saw mill are disposed off in sawn form from the mill site and through retail outlets. At present the FDCM is being allotted timbers from Garo Hills (T) Division only which consisted mostly of Teak & Sal.

  1. Sale of Timber through Railway Containers.

Consequent upon the Supreme Court’s banned on the export of timber from North Eastern State to other parts of India during 1995-96 via road transport, the price of timber has fallen down drastically. To overcome this setback the Government of India devised an alternative for disposal of timbers by rails i.e. by means of transportation through railway containers. These railway containers are allotted to each North Eastern State whose activities are monitored by the Special Investigation Team from Delhi, which came into with effect from April 2007. Since then the containers are allotted quarterly to all the states. So far the FDCM has containers allotted for two quarters only i.e. during July to September 2007 14 (fourteen) containers and during March 2008 38 (Thirty Eight) containers. Unfortunately during the last 10 years not a single container was allotted to FDCM Ltd.

2. Supervisory works for the operation of pine and non sal trees under approved working scheme:

On assuming the role of State Agency w.e.f January 2007 the FDCM Ltd. commenced its function where it is involved in the supervisory works for the operation of pine and non sal trees under Approved Working Scheme in Jaintia Hills only. Lately the FDCM Ltd. receives commission from Working Scheme areas in Jaintia Hills only.

The marking of trees in the registered private forest areas under Approved Working Scheme is carried out by the Forest Officer of the District Council in the presence of an Officer of the State Forest Department. After marking of the trees are completed for each forest the lists are then submitted and placed before the Monitoring Committee who after scrutiny approves it. Thereafter upon its approval the trees are felled and sectioned by the FDCM acting as a State Agency for the operation. Usually the operation is carried out by the Registered Forest Operator and the staff of FDCM supervises the works. Normally the Forest operator who is also purchasing the timbers from the Private Forest owners is oblige to pay to the FDCM by way of Commission for supervisory  works at a fixed rate per cubic meter. In this way some amount is also earned by the Corporation to add to its revenue collection.

3.  Sawmill Project:

The FDCM Ltd. is also involved in the management and operations of two licensed sawmill at Nongpoh, Ri-Bhoi District and Darugiri, East Garo Hills. Conversion/sawing in these mills are carried out only for legal timbers from legal sources delivered under cover of valid transit passes (from the State Forest Department/District Council) unfortunately the revenue generated from these mills are irregular with negligible contribution .

4.  Bamboo Treatment Plant Project:

Recently the FDCM Ltd. is also privileged to avail the facility of setting up of a Vacuum Pressure Bamboo Treatment Plant at Nongpoh sawmill as a Technology demonstration initiated by the National Mission on Bamboo Applications, Department of Science & Technology, Govt. of India. Commissioning/operation of the plant is already completed. The main purpose of the plant is for chemical treatment of Bamboo having various utility. After commissioning the plant is presently projected to receive (approx) 30,000 bamboo culms. The pressure treatment facility being the first such unit to be established in the State and with the increasing demand of treated bamboo in the market, is expected to enhance and generate more revenue urgently required to sustain the earnings of the Corporation.

5. Raising of Plantations:

For the past 25 years or so the FDCM is also actively involved in raising of plantations in private lands subjected to the norms and conditions as per the agreement executed between the land owners and the FDCM itself. some of the plantations’ were already handed over to the respective owners on expiry of the lease period  however the remaining  are still under the control of FDCM as detailed below:

Sl.No. District Centre
Area in hactre
Ri-Bhoi Raitong Lumthangkhiew
70.92 Hac
West Khasi Hills Nongstoin Nongjyllieh – I
13.758 Hac
West Jaintia Hills Saitsama Rting Sanphaw/Wah Pamdkhar/ Arliang Ianghaw
73.20 Hac
East Garo Hills Darugiri Milawe
Chikal Songma
96.80 Hac
31.70 Hac
17.09 Hac
31.50 Hac
West Garo Hills Chanupara Chambakpara

66.343 Hac
26.80 Hac
21.30 Hac
33.56 Hac
93.09 Hac
12.70 Hac
134.00 Hac

However no new plantations were created or taken up by the Corporation for the past decade or so in view of shortage of Working Capital. However maintenance/protection of the above plantation is still carried out till date.


Bamboo Treatment Plant at Nongpoh