Finance for and bankability of forestry development projects in India

Abstract

The paper has discussed the procedures and problems in acquiring institutional finance for production forestry projects in India. Some steps, e.g., accounting the returns from outputs other than timber and fuel wood, raising crops by inter planting during the first 3-5 years before the main crops cover the top, and/or raising under storey crops, raising fast growing species, accounting for intangible benefits, reducing costs, have been suggested for improving "bank ability" of forestry development projects. The estimated investment needs of the forestry sector during the 1970s and 1980s have been compared with the actual loans sanctioned through the regul