Technical and Financial Evaluation of Green Equities

Abstract

Forestry in India as a private venture is in its infancy and as a land use at its crossroads. The scientific forest management in tis country is approximately 100 years old and during this period, it has seen and experienced various jolts. Forest - as a resource of environmental and economic importane - has moved from diffused (ownership wise), unmanaged and unlimited resource-status to a fully owned (Government ownership), unitarily managed (Forest Department) and very scare resource-status. Present day upsurge in environmental awareness and the role of forests in environmental conservation has enhanced the importance of this sector to such an extent that people from various walks of life give innovative ideas of management for this resource. This paper concentrates on the upcoming corporate sector in plantation forestry by way of either company investment or investment from public. An analysis of such proposals presently being floated by various companies has been done in terms of technical feasibility and financial viability vis-a-vis the experience of the Forest Department in raising Teak (Tectona grandis) plantations. While this paper assesses the proposals to be based on unattainable assumptions, it also suggests the governments to encourage such attempts by giving subsidies/incentives.