Andhra Pradesh Community Forest Management Project

Status Report for the period upto 31-03-2006

For Mid Term Review

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1. Status of Project Implementation

The Andhra Pradesh Community Forest Management Project has already entered into the second half of the project period of implementation. The Project was launched on 1st November 2002, and become effective since 26^th November 2002, ie., after the completion of working season during 2002-03. Implementation of field operations commenced only during the 2003 season (2003-04) after micoplanning. As against the total outlay of Rs. 6539.70 Million, by the end of March 2006, an amount of Rs.3468.35 Million (53%) has been utilized. As against the target of Rs.4431.324 Million as per the phased programme, by the end of 3^rd year (31-03-2006), the achievement is 78.27%. As against the Project target of improving 3, 15,800 ha of forests, by the end of the year 2005-06, an area of 324948 ha (102.89%) has been treated. Thus achievement under the Forest Treatment component, the most important indicator, is 104.61% against the targets fixed under PIP for the first three years of the Project period (2002-03 to 2004-05), ie., 310600 ha. The following table gives the status of financial and physical progress achieved till the financial year ending 31^st March 2006,

Activity	Project target	Target for first 3 years of Project period	Achievement (till 31-03-2006)	% Achievement w.r.t. phased programme	% Achievement w.r.t project target
Financial targets (Rupees in Million)
Forest management	3862.623	2475.166	2421.458	97.81	62.68
Capacity building, Trainings etc.	393.420	260.862	193.585	74.21	49.20
Community development	791.367	731.618	127.165	17.38	16.06
Administrative Support	1492.304	963.678	726.148	75.35	48.65
Total Financial	6539.714	4431.324	3468.356	78.27	53.03
Physical targets
Forest treatment in ha	315800	310600	324948	104.61	102.89

Training programmes (number)	9664	7931	8128	102.48	84.10
Civil works (number of buildings)	40	40	36	90	90
Procurement of equipment (number of hardware)	410	410	410	100	100

During the first three years of implementation the focused areas are mostly on improvement and consolidation of forests, artificial regeneration of SRWP including medicinal species in the area under the management of the VSSs and on building their capacity to ensure the same. Through improved forest management, the benefits accrued to the VSSs are:

· The VSSs have earned a direct benefit of Rs.677.91 Million through harvest, utilization and sale of timber and non-timber forest products etc.

· The Project activities have generated 23.81 Million person days of employment.

· Till 2003-04 10.33 Million person days generated under the project. During 2004-05 8.46 Million person days generated while during 2005-06 itself 5.02 Million person days of employment has been generated due to Project activities.

1.1. Financial achievements since inception till 31-03-2006.

(In Million Rupees)

Year	Budget Released	Expenditure Incurred	Reimbursement
			Claimed	Received	Due
2001-02	13.000	12.359	11.727	11.727	0.000
2002-03	173.273	94.223	80.966	80.966	0.000
2003-04	1283.798	1189.409	1033.212	1033.213	0.000
2004-05	1263.749	1144.817	884.874	884.874	0.00
2005-06	1300.000	1027.44	904.037	627.002	277.035
Cumulative	4033.820	3468.356	2914.817	2637.782	277.035

1.2. Physical Achievements from inception till 31-03-2006:

The following are the achievements under Forest Treatment component till 31-03-2006.

Sl.No.	Activity	Project Target	Achievement till 31-03-2006	% of achievement
A. Forest Treatment (31-03-2005):
1.	Teak	1,50,000	147910	98.61
2.	Non Teak	1,00,000	77586	77.59
3.	Bamboo	50,000	27230	54.46
4.	Red Sanders	5,000	1142	22.84
5.	SRWP/NTFP (Plantations)
	i) Slopes	5,000	12655	253.10
	ii) Plains	4,000	8708	217.70
	iii) MP	1,800	504	28.00
	Total	10,800	21867	202.47
Grand Total (Upto 31-03-2005)		3,15,800	279600	88.53
B. Plantations (2005-06)
1.	Under Planting Bamboo	-	31074	-
2.	Afforestation of Barren Hills	-	3646	-
3.	Afforestation through Semi Mechanical Method	-	9927	-
4.	Inter Planting	-	4566	-
Total (2005-06) (Balance 36200ha)		-	49213	135.95
Grand total (upto 31-03-2006)		3, 15,800	324948	102.81

2. Status of implementation of Project components and activities:

The development objective of the Project is reduction in rural poverty through forest improvement and community participation. The project has three interdependent components viz.

· Creation of enabling environment for CFM

· Forests management and

· Community development.

Furnished below is a brief resume of each of these components, activities undertaken and progress achieved so far.

2.1 Creation of enabling environment for Community Forest Management: This component is primarily designed to create an enabling environment through policy changes and capacity building of the stakeholders involved in Community Forest Management. Activities here include policy initiatives addressing and ensuring decentralization of decision making process and empowering the stakeholders, training programs, study tours, seminars and workshops focusing on capacity building of VSS communities, enlisting participation and capacity upgradation of NGOs and CEWs, and officers and staff of the A P Forest Department. Detailed below is progress achieved in the above areas during the period under report:

2.1.1 Capacity Building of VSS, NGOs and staff: Significant achievement is strengthening the institution of VSS. This institution is in place since 1992 and over years has evolved into a strong agency to channel forest management initiatives. The Government of Andhra Pradesh through G O Ms. No. 13 EFS&T (For III) Department, dated 12.02.2002 as amended vide G.O. Ms.4 EFS&T (For III) Department, dated 12-01-2004 have issued comprehensive orders for implementing Community Forest Management in the state as an advancement over Joint Forest Management duly addressing issues relating to gender, inclusion of vulnerable groups, transparency in transactions, duties and responsibilities, usufruct sharing, administrative decentralization and sustainability. The institution of VSS now has a strong managing committee of 15 committed members of whom 8 are women. It also has a vice chairperson in addition to chairperson with one of them being a woman. This has ensured a steady but sure empowerment of women in the scheme of things. Forestry by its very nature comprises of arduous outdoor activities which generally are attended by men folk. But forests also play a very critical role for women in that it is the woman of the house who owns up and manages the responsibility of collecting firewood and water so essential for daily living. Degradation of forests impact women most. In this light of this the initiative of women empowerment as detailed above has gone a long way in creating an enabling environment for CFM.

Participatory planning is the backbone of Community Forest Management. Though all the VSSs have well documented microplans prepared through Participatory Rural Appraisal, it is the participatory annual planning that is quite essential in ensuring participation and transparency. Annual Plans have been prepared for all the VSSs. Activities to be undertaken were discussed and basing on necessity and capacity, physical targets were finalised keeping the site specific requirements in view. The plans so prepared are displayed at prominent places in the VSS villages so as to ensure their dissemination. Work estimates prepared for the works included in these annual plans are shared with the VSSs and financial transactions are guided by these estimates. These initiatives taken have ensured greater transparency and participation by the VSSs in programme implementation.

The following is the year wise progress of capacity building programmes conducted under Andhra Pradesh Community Forest Management Project:

2.1.2 Progress during 2002-03: Training and capacity building have been taken up in the right earnest. Training programmes have been organized in various themes in A.P. Forest Academy, Dullapalli, Bio-Trim, Tirupathi and Regional Research Centre, Rajahmundry. In addition to these, training programmes have also been organized in the Regional Resource Centres developed by the Centre of People’s Forestry, an NGO through their partner NGO in Naredigonda in Adilabad district and at Cuddapah. Broad training themes for conducting training programmes are:

1. Training in financial management and book keeping procedures for VSS members.
2. Training in financial management, preparation of estimates, recording and check measurement of works for executive staff of forest department.
3. Training in use of FMIS software for selected staff of FD.
4. Training in social issues and issues of vulnerable groups for selected members of VSS.
5. Training in forest management including SMC works for members of those VSSs whose microplans have been approved.
6. General awareness, leadership development, conflict resolution for VSS members.
7. Forest protection and forest management for VSS members and FD staff.

Upto 31-03-2003, 1688 programmes including 1426 trainings and 262 Workshops and Seminars have been conducted in which 82850 members comprising of department staff and NGOs (23880 members) and VSS members (58970 members) have participated.

2.1.3 Progress during 2003-04: Major Capacity building programmes conducted to benefit department staff, community and NGOs include strengthening the VSS institutions Convergence of CFM and Velugu Project and Awareness and Capacity training programmes. During 2003-04, 2633 training programmes were organized as against target of 1369. 80993 participants were trained in these training programmes. Details are given in Annexure. Training was imparted in financial management, forest management and social development. The social development trainings were imparted to NGOs and Community Extension Workers. Trainings of Trainers (TOTs) for these NGOs and CEWs have also been organized at the A P Forest Academy, Dullapalli. So far 18 induction programmes covering 655 CEWs from different divisions have been organised. In addition 3 special programmes focusing on accounts and book keeping covering 61 CEWs of Nizamabad, Medak and Kamareddy divisions have been conducted. Assistance of noted NGOs of the AP NGO’s Network on Participatory Forest Management and the Centre for Peoples Forestry has been taken in conducting these programmes.

The Director, A.P. Forest Academy, Dullapally with the help of the Conservator of Forests(JFM) of the PMU had coordinated the training programmes. Sub Divisional Forest Officers were the Nodal Officers at Division level for coordinating training programmes. To assist these officers training coordinators have been engaged in each circle. These Training Coordinators helped in develop in training plans and monitoring training programmes.

2.1.3.1Workshops and Seminars: Workshops were conducted as a part of Capacity building exercise of the staff and communities. Some of the important workshops conducted are: (i) Workshop on NTFP and Medicinal Plants (ii) Workshop on Criteria Indicators (iii) Workshop on Biodiversity Conservation through people’s participation (iv) Workshop on Training need Assessments (v) Workshop on ‘Transforming Work Attitudes for organizational excellence (vi) Workshop on IT and Geometric in Forestry and (vii) Workshop on Process Monitoring and sustainable harvesting and silviculture and marketing aspects of Bamboo, (viii) NTFP related market aspects in coordination with CPF, (ix) Work shop on silviculture, management, harvesting practices, value addition and marketing of Bamboo. In addition to these, interactive seminars on technology improvement and dissemination were held in all the Regional Research Cum Training Centres. During the year 647 Workshops and Seminars have been conducted in which 46777 members have participated. Details are furnished in the Indicators.

2.1.3.2 Study tours and exposure visits: As a part of capacity building initiatives VSS members, NGOs and staff were taken on study tours and exposure visits to other VSSs within the district, within the state and outside the state. On the whole 191 study tours were conducted in which 7406 VSS members, 293 NGOs, 1257 FD staff have participated. The visits were organized to nearby VSSs within the district, to Mulugu, Hyderabad, Srisailam, Kurnool, Tirupathi, Medak, Nizamabad, Rajamundry, Visakapatnam, Chintapalli, Gokavaram, etc within the state and Ralegoan siddi, Ranchi district of Bihar, Tumkur and Lakkehalli of Karnataka etc outside the State. The VSS members were shown Medicinal plantations areas, soil and moisture conservation measures etc;

2.1.3.3 Training programmes in National level institutions: As a part of Capacity building of Government agencies and communities, trainings for officers, staff and NGOs at National level training institutes was taken up .The institutes identified at National level include Indian Institute of Management, Ahmedabad, Institute of Rural Management, Anand, Indian Institute of Forest Management, Bhopal, National Institute of Rural Development, Hyderabad, Administrative Staff College of India, Hyderabad, IBRAD etc; The main themes of trainings include “Change management”, “Participatory management of Natural Resources for Sustainable livelihoods”, “Sustainable NTFP management for Rural Development”, ”Organisational leadership for 21^st Century, Team building and Conflict resolution”, “Management strategies for Conservation Cultivation and Utilisation of Medicinal Plants” etc. 146 participants including Senior officers, Field officers and NGOs were trained in various institutes so far.

2.1.4 Progress during 2004-05: Training and capacity building have been taken up in the right earnest. In fact an annual Training action plan for the year 2004-2005 was finalised in the beginning of the year for effective execution. The training programmes have been organized on various themes in A.P. Forest Academy, Dullapalli, Bio-Trim, Tirupathi and Regional Research Centre at Rajahmundry and Warangal besides conducting Capacity Building training programmes at division and circle level for the benefits of the stakeholders. An outlay of Rs. 767.75 lakhs was earmarked for capacity building during the year 2004-2005. Training themes identified during the year were training in financial management, training in forest management, training in Marketing Management, training in Social Development and training in FMIS and information technology. This includes IT Geomantic in Forestry, Forest Management information system, GPS application.

2.1.4.1Training material: Considering the huge task of conducting training programmes and capacity building of the VSS, NGOs and staff it was decided to utilise the infrastructure facilities available with the technology dissemination centre (TDC) in all the districts implementing APCFM. In order to disseminate the information on the new initiatives and best practices in community forest management among various stakeholders the A.P.Forest Academy has developed and released news letters (APFA news, Vanasamrakshini), training materials (Margadarshini, Accounting Paddathulu, Conflict resolution, Gender sensitization, Forest treatment practices, Facilitation skills, CEWs field guide and NTFP interventions), Posters (sustainable harvesting of NTFP products and gender sensitization and Video films (Margadarshini a film on CFM guidelines, Pachathoranam a film on conflict resolution, Accounting Paddatulu, two films on Forest management techniques, Sankratnthi a film on leadership issues.). In all above 15 publications, 5 posters and 6 films have been so far developing and which are helping in effective dissemination of the information. A large number of training manuals and material prepared at various levels under different themes especially in Telugu was also utilised for the benefits of the VSS, NGO & Staff of the Forest Department. It is also pertinent to mention here that documentary films prepared by R& D wing and AP Forest Academy, Dullapally were also utilised fully while conducting training programmes at various levels.

2.1.4.2 Study tours: The A.P.Forest Academy conducted study tours to different states for exposing the participants to the best practices and innovations in community forest management were conducted.

1. Uttaranchal State: The study tour conducted to Uttaranchal state from 12^th to 16^th July consisted of field visits and classroom sessions. 10 participants have attended the tour programme. The participants were exposed to various forest management practices such as management of non-timber forest produce, bamboo and fibre board activities, agro-forestry, medicinal plants vanapanchayats, management of sal and oak forests, people’s participation in eco tourism, nursery and mist chamber propagation techniques, poplar plantatios and bio-diversity conservation practices at Jim Corbett National Park. Vanapanchayats, Contract farming of poplars (social forestry), Community eco-tourism, Community forest management in civil forests and Federation of community forest users were some of the best practices seen during the study tour.

2. Madhya Pradesh and Chattisgarh states: In the study tour to Madhya Pradesh and Chattisgarh (6^th to 20^th August) ten (10) participants have attended. The participants visited places such as MFP processing and Research centre at Barkhera Pathani (Bhopal), Rahatpani wildlife sanctuary (Abdulla Gunj), Bheem Vaitika (a world heritage sight), Khatpura Van Suraksha Samithi, Borri and Moukhal forest villages, Eco-training centre (Harda Division), Mahua godown (Hoshiangabad division), Rajivsmruthivan (Raipur), Nandanvanam Zoo (Raipur), Peoples Protected Area (Dugli village), Herbal dispensary etc. The participants were exposed to the best practices such as MFP processing and Research Centre at Barkhera Pathani (Bhopal); MFP federation; Protection funds to communities (protection Watchers and Protection Watchersheds); Free trade of Non Timber Forest Produce; Lokvaniki (Management of private forests); Registration of Vanasamarakshini Samithis; Bamboo forest management by families; People’s Protected Area (PPA); Herbal Dispensaries in Chattisgarh; Execution of Development works by Forest Department in forest villages and Public private partnership for development of wastelands in forests.

3. To Jharkhand and West Bengal states: In the third study tour conducted to Jharkhand and West Bengal states from 23^rd to 27^th August, ten (10) participants have attended. During this tour the participants studied community forestry activities, medicinal plants conservation, community ecotourism, sabai grass plantations, agroforestry activities, while visiting places such as Kudada forest, Bankura south division forests, Arabari forests, Jamuluguddu shandy area, Jugishole village, IIT Kharagpur etc. The participants were exposed to the best practices like Self initiated forest protection committees (Kudada forests); Eco-Tourism involving local unemployed youth (Meetham village); Forest based income generation programmes; Association of local herbal medical practitioners (Raniband village); Regeneration and restoration of edible forest tubers (Karsole Forest Protection committees); Improved Toolkits for NTFP value addition (IIT, Kharagpur); Sustainability of Joint Forest Management (Arabari forests) and Stall feeding of Goats (Forest fringe village of West Bengal).

4. Chattisgarh State: The Academy conducted 3 study tours to Chattisgarh
i) 5^th to 9^th December 2004 ii) 4^th to 8^th January 2005 iii) 7^th to 11^th February 2005. The objective was to expose the participants to the best practices and new initiatives in Community Forest Management, Forest research, Social forestry etc. In all einghty eight participants (F.D.staff-22, VSS representatives-22 and NGO representatives –22) representing from the forest circles of Khammam, Warangal, Rajahmundry, Nizamabad, Hyderabad, FD &PT Srisailam and Visakhapatnam participated and saw the activities and best practices like Forest training institute, Foret meseum, Asnagar Park, Jagadalpur, medicinal plants plantations and sales centres and marketing, Income generation programmes i.e., vermicompost, mushroom production, pisciculture in percolation tanks, silk rearing on Lagastromea spp., lac cultivation, extraction of Aloe vera juice, People’s Protected Area (PPA), Development works in forest villages, medicinal plants processing units, social forestry works and Bamboo rhizome bank maintained by VSS. etc. were exposed during the tour.

5. Kerala State: The Academy conducted 2 study tours to Kerala
i) 7^th to 11^th February 2005 and ii) 14^th to 18^th March 2005. The objective was to expose the participants to the best practices and new initiatives in Community Forest Management, Forest research, Social forestry etc. In all forty five participants (F.D.staff-17, VSS representatives-13 and NGO representatives –15) representing from Anantapur, Guntur, Kurnool, Tirupathi WLM, Adilabad circles participated. They were exposed to some activites and practices such as research activities of Kerala Forest Research Institute, Peechi; Private Rubber Plantation and tapping of Rubber; Preparation of Air-compost; Tissue culture; seed processing / storage units; Forest nurseries - concept of Lab-to-Land; Medicinal plant and Bamboo nurseries; Ayurvedic medicinal manufacturing units; Evergreen forests in Kerala; silent valley maintained by Kerala state; Bamboo / medicinal plants processing units; Income generation activities like tourism places, picnic spots, water falls and gardens maintained by VSS for their livelihoods.

6. Rajasthan and Gujarat states: The study tour to Rajastan and Gujarat was conducted from 28^th Feb. to 5^th March 2005. Nine (9) participants have attended. During the study tour, the participants visited places such as Historical place of Jaipur place and Museum, Ranthambore National Park, Chittaurgarh fort, and around the fort greenery raised by Forest Division, Chittaurgarh, Drainage line treatment (DLTs) works, Vegetative propagation and raising of seedlings in mist chambers, gabion check dam structures, Herbal plantation, tourism places maintained at Mt. Abu, MFP collections by local tribes, JFM works in Godhra etc

APFA, Dullapally also organised three sessions of M/s 6^th Sense Resource Pvt. Ltd, Banglore on “Competence enhancement” on 7^th to 9^th September 2004. This was attended by 30 staff officers working in the head office. Similarly Prasanna Trust, Secundarabad also conducted one day Workshop on “Personal Effectiveness Program” on 7^th November 2004 for staff officers of the headquarters. 37 officers participated in this program.

2.1.4.3 Training in National Institutes: Training were organised by the AP Forest Academy Dulapally at the National level institutes like Administrative Staff College of India (ASCI), Hyderabad, Kerala Forestry Research Institute (KFRI), Peechi, Kerela, Institute of Rural Management, Anand, Gujrat, NISIET, Hyderabad and IIFM Bhopal So far in these trainings seventy seven participants have been trained in Team building and conflict management, Personal growth for effective leadership, Effective Human Relations in Organisations, Rural marketing, Transactional analysis for inter personal effectiveness, Communication skills for Managers, Team building and conflict management, Environment-impact assessment, Conservation and Cultivation of medicinal plants, Forest Seed management, Sustainable livelihoods, Community organisation and Income Generation, Promoting participation and empowerment in Dev. / Natural Resource Management, Product identification and marketing strategies for SHGs, Management strategies for conservation, cultivation and utilisation of Medicinal Plants, Qualitative Research Methods for Participatory Forest Management (IIFM- Cambridge Univ. – Harda Project Joint Programme), Watershed Management Approach in Natural Resource Management, Bio-diversity and Gender, Effective Leadership and Team management skills for Resource Management, Forest Products Marketing : The winning strategies, Watershed Management and its economic / policy issues, Project Formulation and financing for forestry, Multi-stake holder analysis for sustainable Livelihoods, Micro-Finance: Dove tailing of NTFP based Enterprises.

2.1.4.4 Workshop on Bamboo for livelihood: Forest Department organised a workshop for exploring new livelihood opportunities based on Bamboo for the benefits of the VSS members on 19^th and 20^th February 2005. This workshop was attended by VSS members, NGO and Forest Department. The issues relating to silviculture, technology and utilization of Bamboo were deliberated by the experts in various fields ranging from management, value addition, Bamboo based industries, Bamboo technology and trade development and Bamboo based traditional handicrafts. It is expected that concrete recommendation on policy issued and livelihood initiatives related to Bamboo, industrial application of Bamboo, Bamboo handicrafts, furniture and interior designing and silviculture and management of Bamboo forests may emerge which are likely to benefits of the members, wherever Bamboo is available in the VSS area.

2.1.4.5 Workshop on Red sanders: A workshop was organized by CHRD an NGO working in Kadapa district is association with the Forest Department on 1^st February 2005 at Rajampet on various issues of Red sanders. The workshop focussed on protection and management of Red sanders. It was attended by 93 participants from Chittoor and Kadapa districts from NGO community, Forest Department, VSS members and civil society concerned about Red sanders.

2.1.4.6 Achievements: In all (1451) training programmes, (55) study tours, (310) workshops and seminars have been conducted where 44004 participants form the categories of VSS members, NGO, CEW and staff of the Forest Department participated. The details are furnished in the Indicators.

2.1.5 Progress during 2005-06: During the year 2005-06, under the Capacity Building of Government Agencies, Communities and NGOs, 1191 trainings, 482 Workshops and Seminars and 261 Study Tours were proposed. Out of which, 809 Trainings, 228 Workshops and Seminars and 116 Study Tours have been conducted. In total during the year 2005-06 1153 capacity building programmes have been conducted in which, 12706 no of department staff and NGOs and 30910 VSS members have participated.

The Following are the major training programmes, Workshops & Seminars and Study Tours conducted at State Level at APFA, Dulapalli.

The Andhra Pradesh Forest Academy (APFA) Dulapally is actively involved in diverse activities such as trainings, workshops, study tours and extension activities with an objective to build capacities of the communities and service providers under APCFM project.

2.1.5.1 Training: During the year 157 training programmes were conducted covering 3962 participants (enclosed Annexure-I). The participants were exposed to various training methods like introduction through games, participant diaries, newsletter posters, role plays, quiz competitions, hands-on practice sessions, field visits and exercises, tests on final days, display of products, projection of films, group work and presentations etc., The qualitative evaluation of the programmes were undertaken and constant improvements have been made based on the suggestions received through feed-back reports.

2.1.5.2 Trainings for Community Silviculturists: Inorder to take the science of forestry to the doorstep of communities the Academy conducted various programmes. Six (6) programmes of ‘Community Silviculturists training’ covering 158 participants were conducted to enable the VSS members to undertake technical supervision of forest management. One special training programme for 25 identified community forestry practitioners (NGOs, CEWs and VSS) was conducted for two weeks in December’ 05. Deliberations were held on silviculture treatment practices, community resource assessment, grazing management, institutional development in VSS, regeneration in natural forests, raising of plantations, fire management, Bio-diversity conservation, medicinal plants cultivation, bio-fuel etc., during the programme. 931 Community Extension Workers (CEWs) were trained in technical and managerial aspects of community forest management through twenty nine (29) training programmes. The first phase of certificate course pertaining to Village Botanists was organized November ’05 by

Foundation for Revitalization of Local Health Tradition (FRLHT), Bangalore. During the programme forty six (46) participants representing communities from different parts of the state received inputs on plants identification methods, vegetation monitoring techniques, traditional knowledge documentation practices, herbarium preparation skills etc.,

2.1.5.3 Trainings of Communities: In the ‘Community based resource assessment’ programme conducted, the VSS members were exposed to the techniques of resource assessment, yield estimation, measurements in the forests. Communities were able to learn the methods of participatory planning and monitoring in a special training arranged. There was an exchange of information on the methods and practices adopted for effective forest protection at VSS level, in the training programme organised on ‘Community based forest protection strategies’. Deliberations on formation and operative mechanism of self help groups, income generation activities, micro financing etc., were held among the VSS members, representatives from Forest Dept. staff in a special programme arranged for the communities involved in Forest Development Agencies. 114 participants have attended in (6) trainings on SMC techniques and Watershed Development. Three (3) training programmes were conducted on modern nursery techniques and plantation management for fifty four (54) participants.

Group dynamics and leadership development, gender mainstreaming in community forestry social mobilisazation and conflict resolution were the other programmes conducted for the communities during the year.

2.1.5.4 Trainings of Service Providers: To facilitate effective services to communities, thirteen (13) programmes covering 295 Forest Department staff including ministerial and executive staff were conducted on Forest Accounting System. Two programme on office management were conducted to forty six (46) participants. Thirty seven forest officers could get an exposure to the concepts and methods of communication techniques; negotiation, presentation and conflict management skills, Public relations etc., for effective community forest management, through the programmes conducted on Public relations and responsive behaviour. Through the training programmes (3) of ‘Transforming work attitudes’ conducted an attempt was made to develop positive attitudes, to enhance job satisfaction and to manage stress among (51) forest officers. Thirty five ministerial staff of Forest Dept were trained in basic office management through an ‘Introduction Programme’ to office assistants held during August. One hundered seventy seven (177) Forest Section Officers representing different forest divisions participated in a Govt. of India sponsored two weeks ‘Refresher course for frontline staff in in four programmes. Four (4) special training programmes for the staff of Forest Department on ‘Wildlife census and vegetation estimation’ were conducted, covering 292 field staff. During these one day training programmes the participants were exposed to the basics of wildlife census estimation and monitoring methods, data collection, vegetation methods etc. The field functionaries (14) of Social forestry wing were trained in the aspects of extension methods, nursery and plantation management techniques etc., in a training programme organised for ‘Social forestry for Rural Development’. In the broad field of Information Technology, training programmes in Computer applications in forestry, GPS applications, GPS instrumentations, Geomatics for forest management and Maps generation though Arc view software were conducted to build IT skills among the executive and ministerial staff of Forest Department. Twenty six (26) such programmes covering 514 participants were held during the period. Inorder to enhance the capacities of the Training Coordinators one programme was conducted with the help of Indian Institute of Bio-Social Research and Development (IBRAD), Kolkatta. This programme was organized in three capsules of 5-days each with 2 days field training.

2.1.5.5 Trainings on Livelihood Promotion: In nine (9) programme conducted on Bamboo utilisation, NTFP, Development, value addition and marketing and medicinal plants conservation & utilisation, the focus was laid on, sustanble livelihoods to the forest dependant communities. 215 participants representing from VSS, NGO, FD Staff have participated in the programme. The communites of telangana region participated in a training programme organised on Bedileaf collection for sustainable livelihoods where the subjects of silivicuture, pruning sustainable harvesting, curing storage and marketing were covered. Various strategies on promotion of livelihoods both forest based and alternative in forest fringe villages were explored in the two programmes on ‘Livelihood promotion in VSS areas’ conducted during the year. Seventy (70) community ecotourism facilitators attended two different trainings conducted for them. Through these trainings the participants were exposed to the techniques of hospitality, tourist guidance, catering, marketing etc.., required for effective management of community based ecotourism projects.

The selected NGO coordinators, CEWs and VSS members were trained in three spells on preparation of livelihood and business planning at village level. During these programmes the participants were exposed to the techniques of resource assessment, vegetation monitoring and participatory livelihood planning. Three training programmes on Livelihood and business planning have been taken up during the period. Participants were exposed to various issues such as forest based livelihoods – sustainability of VSS, micro-enterprise development, business planning, alternative employment sources, managerial skills for rural products marketing, thrift based financial resources, plans for resource management etc.

2.1.5.6 Workshops / Seminars: To facilitate sharing of the knowledge and information among the stakeholders of the Community Forest Management Project and others, the Academy organized workshops and seminars on special themes. 35 such workshops / seminars / meetings covering 1404 participants were conducted (enclosed Annexure-II). Details of some workshops are furnished here under.

2.1.5.6.1 Workshop on Forest based crafts development: A three-day training-cum-workshop on "Forest based Crafts Development" was organized at A.P.Forest Academy, Dulapally during 28-30 June. A.P. Forest Academy and Crafts Council of Andhra Pradesh facilitated the proceedings of the workshop. The workshop was aimed at bringing various stakeholders like Craftsmen, Researchers, marketing persons, traders, Academicians, Forest Department officials, NGOs, VSS members on to a common platform and to deliberate upon various issues such as resource conservation and development, design development value addition and marketing for integrated and sustainable development of Forest based crafts in the state. 74 participants cutting across various sections of the stake holders took
part in the 3-day deliberations and agreed upon making all necessary efforts to improve upon the existing situation.

2.1.5.6.2 Workshops on Livelihood Planning: These (3) workshops were conducted on livelihoods planning development issues during the year, 76 participants have attended. Various issues i.e., capaicaty building techniques, Planning techniques and skills for villagers. Different ways and means to create Income Generating Activities (IGAs), Specific Plan of Action for using the funds, Forest regeneration, Value addition of the Forest products etc., Establishment of Common Facilitation Centers (CFC) at range / section level were discussed. A three day training-cum-workshop on Livelihood and business planning strategy was conducted on August. Twenty seven (27) participants (F.D.staff, VSS and NGOs) have attended. Deliberations on various iseus viz., Forest based livelihoods – Sustainability of VSS through forest based livelihoods, Development of basic entrepreneurship skills and business plan for small community based organizations, planning and marketing of rural products, Institutional mechanism for forest based livelihoods, Alternate employment generation in VSS areas, etc were discussed.

2.1.5.6.3 Workshop on sustainable harvesting of medicinal plants: A 3-day workshop was conducted on 28-30^th July, 25 participants representing Forest Dept. staff and GCC have participated. Interactive sessions on sustainable harvest of medicinal plants, silviculture and management aspects of medicinal plants, regeneration through in-situ grafting, sustainable collection of medicinal plants

notified for GCC, value addition & storage methods and Conservation of medicinal plant resources were discussed.

2.1.5.6.4 Workshop on Clean Development Mechanism in forestry: On the eve of ‘World Ozone day’, a workshop on CDM in forestry was held on 16^th September. Fifty six (56) participants representing senior officers of A.P. Forest Dept. have participated in the workshop. The topics covered in the workshop are CDM in forestry: Frequently Asked Questions & Answers, Commercialization of CDM with particular reference to forestry projects, Opportunities with CDM, Science, politics and economics of climate change with special reference to A/R activities, Bio-mass estimation and carbon pool of Western Ghats and Implications in conceiving the CDM projects.

2.1.5.6.5 State level workshop on Business Planning: In two day workshop conducted on 5-6^th Dec. 2005, 30 officers representing CFs & DFOs from different parts attended. In first day deliberations were held on business planning techniques and business plans made in Bellampally and Kaghaznagar divisions. On 2^nd day there was field visit to Mancherial forest division for practical exposure.

2.1.5.6.6 Workshops on Forest Research: To discuss on the progress of reaserch activities, to ealuate dissemination of the technologies to the communities and rapid changes in technology improvement, five (5) workshops / Interactive seminars on Forest Research has been conducted by the Research wing of Forest Dept. at
A.P. Forest Academy. In all 123 participants (Research Range Officers, State Silviculturists and staff of Research wing) have attended these workshops.

During these programmes the participants also demonstrated various new research techniques.

2.1.5.6.7 Workshop on Social Forestry: A workshop on “Social Forestry” has been conducted by social forestry wing of Forest Department during 21^st & 23^rd. Fifty three (53) officers and staff of social forestry wing attended this programme. The issues regarding plantation works were reviewed during the workshop.

2.1.5.6.8 Workshops on Livelihood planning (TOT): Three workshops were conductedon this subject during the year. During these workshops the participants presented the model livelihood plans of VSS prepared by them with the help of TOT participants.

2.1.5.6.9 Workshops on Forest Management :Three (3) separate region wise one day workshops on “Forest Management” have been organized at the Acadmy during June 2005. On 3^rd officers from Adilabad, Warangal, Khammam & Hyderabad Circles; on 4^th officers from Kurnool, Anantapur, Guntur and WLM Tirupathi Circles; and on 6^th officers from Nizamabad, Visakhapatnam, FD &PT- Srisailam and Rajahmundry Circles have attended. Discussions on various isseus i.e., plantations works, formation of Common interest groups (CIGs), selection of CEWs, role of CEWs in book keeping in VSSs and identification of Income generation opportunities for sustaining the VSSs, etc.

2.1.5.7.0 Workshops on NGO’s Association in APCFM Project: One day workshop on “NGO’s Association in APCFM Project” has been organized by A.P. NGOs Association at A.P. Forest Academy on 2^nd July. 35 participants from various NGO organizations in the state where the APCFM project is implemented have attended the workshop. The workshop discussed various issues like participation of NGO organizations, mobilizationn of VSS people for successful management of forests through peoples participation in the APCFM project. Another workshop on working out modalities of NGOs participation in APCFM project was held on 13^th to 14^th Feb’ 06 where in 82 participants attend.

2.1.5.7.1 Workshop on Development of Herbal Policy in India: Foundation for Revitalisaton of Local Health Traditions(FRLHT), Bangalore has co-ordinated this workshop held on 10^th August. Sri K.D.R. Jayakumar, IFS, Spl. Secretary to Govt., EFS & T Dept, A.P. and Dr. Srivasuki, IFS, CEO, Medicinal plant have attended as chief guests. Sri G.A. Kinhal, IFS, FRLHT, Bangalore co-ordinated the proceedings of the workshop. A wide cross section of participants representing A.P. Forest Dept., Ayurvedic medicine, NGOs and industries have attended this programme. It was suggested for strengthening of existing laws, development of Pre & Post harvest protocols, grass root level laboratories for quality control; documentation of practices, market promotion activities etc,.

2.1.5.7.2 Workshop on Unsold Beedileaf units : Two day workshop was jointly organised by AP Forest Academy and Centre for peoples Forestry ( CPF)on 27^th & 28^th Jan’06 Thirty eight (38) VSS members and NGOs participants in the workshop. Discussions were held on various aspects of management of Beedileaf collection, curing, storage and marketing.

2.1.5.8 Study tours : In order to expose to the best practices and innovative methods in community forest management adopted in different parts of the state, study tours to the forests of other states were organized. Similarly for facilitating inter division transfer of the technologies and best practices study tours within the state were organized. In total 55 study tours (29 within the state and 26 to other states) covering 1699 participants were organized during the period .

2.1.5.8.1 Study tours within the state: The VSS members of 29 divisions were sent to the identified study areas of one of the six circles viz., Visakhapatnam, Adilabad, Tirupathi (WLM), Khammam, Nizamabad and FDPT Srisailam. Through these tours information on common facility centers, value addition to Bamboo, community based eco-tourism activities, Bio-diversity lab, sustainable harvesting methods of NTFP, forest based livelihoods (sericulture on Lagestromea parviflora, extraction oil from Boda grass, lac cultivation etc.,), community based forest and fire protection measures etc., were exchanged among the communities in an effective manner.

2.1.5.8.2 Study tours outside the state: Twenty six (26) study tours covering 740 participants to different states such as Chattisgarh, Maharashtra, Orissa, Kerala, Rajasthan and Uttaranchal were organized. Six (6) different study tours for the teams of forest officers were organized to Tripura, Manipur & Assam, Kerala, Rajasthan madhyapradesh chattisgarh and Uttaranchal.Twenty study tours for the communities to other states., chattisgarh maharashtra, kerala Orissa Karnataka were organised through these study tours the participants were exposed to the best in Community eco-tourism, Bamboo development, Medicinal plants – conservation, People’s protected area, Forest research, NTFP management collection, Sacred groves management, Forest extension, Community forest protection, Wildlife management, eco-development, bio-diversity conservation, Livelihood promotion etc.,

2.1.5.8.3 Information dessimination materials: For disseminating the information on the new initiatives and best practices in community forest management among various stakeholders the A.P.Forest Academy has developed and released news letters (APFA news, Vanasamrakshini) periodically. Twelve (12) issues of newsletters namely Vanasamrakshini (April to March) were released and sent to all the VSSs during the period. Three video films namely Vana Sankranti Haritha kanthulu and sujalam and subhalam were produced during the year. One booklet on NTFP management in Telugu was developed and released during the year.

So far as against the Project Target of 9664 capacity building programmes (out of which upto 2005-06 target is 7931 programmes), so farby the end of March 2006, 8128 programmes have been conducted. This includes 6319 training programmes, 1447 Workshops and Seminars and 362 Study Tours. The Details of programmes conducted, number of participants benefited with these programmes is shown in the Indicators

2.1.6 Monitoring and Evaluation of project implementation:

2.1.6.1 Monitoring through FMIS: A computerized monitoring package (Forest Management Information System – FMIS) has been developed and installed in all the Ranges, Divisions, Circles, and Regional Geomatics Centres and in PMU at Head Quarters. It is a comprehensive package covering all the Project components and activities. To handle this package effectively IT Project Scientists have been engaged on contract basis at all Project Divisions and at PMU. Preparation of Annual Work Plans at Division, Circle and State level and also at the level of each VSS is being done using this package. In respect of Annual Plan for a VSS, plans prepared through participatory approach are documented in this package. Monthly cash accounts at all accounting levels are generated through this package. All reimbursement claims and FMRs are generated from this package. The package also has potential to generate monthly monitoring reports and reports on participatory monitoring (duly documenting and compiling the reports). Upgradation of this package to provide for preparation of Annual Plans at VSS level and to facilitate monitoring performance of VSSs is the highlight of achievement during the period under report. This has now provided computerised MIS for each VSS. At present this package is functioning on MS Access platform with Visual Basic as Front end. Action has been initiated to import the database to Oracle and to integrate the package with GIS database to provide the advantage of GIS and Remote Sensing data to the VSSs and other implementing agencies.

2.1.6.2. Independent Evaluation: The Government in their G.O. Ms. No. 45, EFS&T (For.III) Department, Dated: 26-05-2003 have appointed M/s. Centre for Public Perception and Policy, Hyderabad as Consultants for independent third party Monitoring and Evaluation of Andhra Pradesh Community Forest Management Project. The Contract was signed on 28-05-2003 and the assignment has commenced from 01-06-2003. The Consultants have developed an M&E Frame Work. They have also conducted Workshops on the M&E Frame Work. Data has been gathered for 2003-04 and 2004-05 (till December 2004) in the formats detailed in the M&E Frame Work. Draft formats for capturing data on quarterly basis have been developed in consultation with the Consultant and data in these formats is being captured. Provision has also been made in the FMIS to capture data required for Monitoring and Evaluation. Field verification and compilation of this data has been completed and the Consultant has submitted first report, which has been shared with the World Bank. The Consultant has completed the collection and compilation of the data for furnishing 2^nd round of concurrent M&E report.

2.1.6.3 Participatory Monitoring: The M&E Consultant has framed the M&E framework for the Project. One of the approaches to monitoring is Participatory monitoring where the VSS members themselves participate and monitor their performance and performance of Project in general. A schedule with 20 parameters for assessment with 4 options to each parameter has been prepared. The same has been translated in Telugu and has been disseminated using symbols for use by illiterate members. Services of NGOs and Community Extension Workers are being utilized in carrying Participatory monitoring. The same is also being incorporated in the FMIS. Analysis of the data gathered during participatory monitoring is annexed. During 2004-05, VSSs (3736) had been graded on the basis of participatory monitoring. 1353(36%) VSS graded as Excellent, 1179(32%) as V.Good, 856(23%) as Good, 206(5%) as Average and 142(4%) rated as below Average. Similarly 4754 VSSs out of 5000 have been graded on the basis of participatory monitoring reports received during 2005-06. Further analysis of the data on participatory monitoring revealed that 1426 VSSs (30 %) are Excellent followed by 1429 (30 %) as Very Good, 797 (17 %) as Good, 532 (11 %) as Average and 570 (12 %) as Below Average. This information is being used as an important planning tool to design specific training program for members of VSS as per their grading. Since there is a need to revise the schedule for assessing the VSS performance and functioning in view of the new concepts emerging on accounts of its decade old existence. The present participatory monitoring is purely based on the functionality of VSS. Since it is now a decade old institution, the assessment should be based on functionality of the VSS, impact of the project and future plans of sustainability. Keeping this in mind, it was decided to give this assignment of developing indicators of assessing the VSS to the Training Advisor in PMU. It is hoped this task would be accomplished shortly.

2.1.6.4 Policy development: All actions agreed for policy reforms have been taken. A statement detailing progress in this regard is given in annexure.

2.1.6.5 Strengthening the VSS institution:

2.1.6.5.1 Legal status to VSSs: As an initiative to empower the communities involved in participatory forest management, legal status is sought to be accorded to the VSS by amending the A.P. Forest Act 1967. The GOAP agreed to the proposals of the Forest Department. The cabinet has also cleared it. The Draft bill has been sent to the GOI for concurrence for amending the A.P. Forest Act, providing legal status to the VSS. In addition to this action hs also been initiated for representing VSS as societies and identify user group in each VSS and organizing them as co-operative societies, federating these cooperatives societies at division and state level. These are shared with the mission. The bylaws prepared and submitted to the GOAP for its approval. These are given in the annexure.

2.1.6.5.2 Decentralization of planning and financial management: The Government during January 2004 have amended the AP Forest Department Code providing for direct funding to VSSs without routing the funds through Forest Range Officers. This amendment has come on account of a study conducted under the APCFM Project. Implementation of this new system has commenced in the right earnest during this year. This while addressing the workload on the implementing staff has ensured enhanced awareness and participation of the VSSs in financial transaction. This amendment ensures that the cashbook of the VSS is the primary cashbook of the Forest Department. Thus the financial responsibility is now with the VSSs. There is clarity in the role and responsibility of VSS and Forest Department and this ensures decentralization and transparency.

2.1.6.5.3 Reforms to VSS structure: The present structure of VSS institution has emerged during JFM phase. CFM initiative brought in certain improvements especially in gender issues. With commencement of flow of benefits and usufruct to the VSSs there is now need to look carefully into the structure and functioning of the VSSs especially with regard to profile of membership. As a measure to ensure convergence with Velugu initiative enrolling poor families left out as members of VSSs, promoting SHGs and federations are underway. But before these are pursued further, there is need to commence a process of consultations. Experience has brought out that heterogeneity of membership of VSSs in terms of economic profile, degree of forest dependence, extent of participation in protection and management of forests, viewed in the context of commencement of benefit flow is likely to complicate matters in the coming years and conflicting relations are likely to emerge on account of these. Thus there is a need to address these issues adequately and at the earliest. This is required more to ensure that all active members of VSSs who invariably are the poorest of the poor and who really depend on the forests and who have built their institution of VSS derive maximum benefits from the forests. In this context apart for providing legal status to these VSSs through an amendment to AP Forest Act 1967, it is proposed to organize VSSs into Societies. To ensure livelihood enhancement of forest dependant families to development and management of forest based enterprise a new institute was structured, functioning at various levels having an organic linkage with the Government and Non-Government agencies and institutes has been proposed.

The structure envisaged for such a set of institutions operates at village, cluster, district/division and state levels. Common Enterprise Groups (CEGs) at the village level, Cluster Co-operative Societies also called Vanajeevini at the cluster level and a State level organization or a Society called Vanashakthi are designed to ensure viability to the structure of this institution for such enterprise development. While the CEG shall be the informal group as the primary collector and agent for value additions to forest produce, the Vanajeevini and Vanashakthi shall provide the required infrastructure goods and services at a cluster, district/division and state level respectively. These will also provide managerial inputs including asset management and quality control.

The Vanajeevini shall be the enterprise hub of production and marketing of value added forest products and may or may not be lead by the Forest Department but by the most appropriate Entrepreneur. They shall be organized on co-operative principles as envisaged by the A.P.Mutually Aided Co-operative Societies Act, 1995.

Vanashakthi or the state level federation of Vanajeevini shall be organized under Societies Registration Act, 2001 and shall be an organization with a mandate to provide service support to Vanajeevini and CEGs, help in developing market outlets through sound market research and wisdom and develop enterprises of appropriate scale that ensure profitable and efficient utilization of forest products procured and produced by VSSs, CEGs and Vanajeevini which shall be affiliated organizations of Vanashakthi. Vanashakthi may enter into strategic alliances with technical, market leaders in forest based enterprises from other organizations, institutions, states or countries to achieve the above objectives.

The institution shall be facilitated by Vanashakthi through its Managing Director assisted by Project Officers with the help of Conservators of Forests who will be ex officio members of Vanashakthi with due coordination with Civil Society and Non Governmental Organizations.

Financial support to trigger the institution and its activities shall have to be made available initially by the Government of Andhra Pradesh in the form of Grant and in course of time Vanashakthi shall develop plans and projects and implement them to ensure self reliance of Vanashakthi and its affiliated organizations. The bylaws for these CEGs at VSS level,Vanajeevini at cluster level and Vanashakthi at state level are formulated after delayed discussions and consultations with all the stakeholders especially the VSS members and the Partner NGOs. The Bank was also apprised of this development during their last Supervision Mission. The bylaws are with the Government.

2.1.6.5.4 Revision and implementation of R & R Policy: During negotiations held with the World Bank on the Project clearance, it was decided to revise the Resettlement and Rehabilitation Policy and Resettlement Action Plan documents as agreed to by the GOAP. Accordingly the revised draft R&R policy and RAP were furnished to the World Bank and as suggested by the World Bank on 1-5-2003, the revised R&R Policy and RAP were put for series of consultations with all the stakeholders, particularly with VSS communities, during May to August, 2003, at Range/Division/Circle and State Level. Based on the outcome of these consultations, the R&R Policy and RAP have been revised and sent to the World Bank for approval. The World Bank has approved the revised RAP and R&R Policy and requested the Government to notify these documents superseding the existing orders. The Government, have notify the revised Resettlement Action Plan and Rehabilitation and Resettlement Policy documents vide G.O.Ms.No.68 EFS&T(FOR-III) Department dt. 25-5-2004. With this implementation of Resettlement Actin Plan has now commenced. As the progress of implementation in the past has been slow to expedite the same A Workshop on for reviewing the implementation of Resettlement Action Plan and to discuss and decide on the strategies for scaling up activities under this plan was held in the last week of July 2005 at S. Kota in Vizianagaram District. NGOs were trained in this workshop for preparation of RAP. Already the DCF (GIS), Visakhapatnam has been nominated as the Nodal Officer and the Sub-Divisional Forest Officer, Narsipatnam, Visakhapatnam and Srikakulam and Araku (Paderu division) as Nodal Officers for the respective divisions for implementation of RAPs. They will work exclusively for implementation of RAP under the administrative control DCF (GIS) and nodal officer RAP. Another workshop involving NGOs and staff of Vizag circle was held at Vizag on 27^th Sept.2005 to review the progress of the RAP preparation. Certain administrative issues were discussed in the review meeting held in Visakhapatnam, after the workshop on 27^th, regarding modalities of fund flow and technical support to the Nodal officers nominated as stated above. Based on the discussions in the workshop and the review meeting separate administrative instructions have been issued regarding fund flow and budget in Prl. CCF Rc No. 1875 /2005/PMU-I /2 dated 05.10.2005. Necessary budget allotment has been made to the nodal officer who has been declared as the drawing and disbursing officer also. Till now as many as 131 action plans prepared by 65 NGOs have been received by the Nodal Officer of RAP. 60 of them have been approved and the approval was conveyed to the NGOs. Additional plan approval has been kept in abeyance for the time being as the plans are under scrutiny by the World Bank consultant Dr.B.K.D.Raja. In as many as 34 VSS areas, RAP implementation has been initiated

An amount of Rs. 27,83,364/- has been spent so far till March 2006 on account of facilation to NGOs,training and land development in Srikakulam,Vizianagram and Visakhapatnam Districts. The details about the kind of land developments, trainings and livelihood activities under taken in Visakhapatnam circle are furnished in a write up placed separately.

The Government of AP vide G.O.Ms. No.100 EF&ST (For-III) Department dated-11-11-2002 constituted an Independent Advisory Group at State level under AP Community Forest Management Project for advising on Resettlement Action Plan implemented by AP Forest Department. Further the GOAP extended the term of this Group for a period of one more year beyond 10-11-2004 Vide G.O.Ms. No.56 Dt. 15-06-2005. After the expiry of one year, the Government again reconstituted the Advisory Group for a period of two years from 11-11-2005 to 10-11-2007 vide G.O.Ms. No.28, dt.1-3-2006.This group has the responsibility to examine the complaints relating to Resettlement Action Plan that are received by it or brought to its notice and advise the GOAP and FD of AP on remedial measures for redressal of any grievances. The IGA convened a meeting on 8-3-2006 in which there were apprised of the R&R of GOAP and RAP undertaken by the Forest Department under AP Community Forest Management programme. This group issued a proceeding in which the members requested for visiting some places where the RAP is under implementation on 20^th March to 22^nd March 2006. Accordingly the Advisory Group visited the Districts of vizianagaram and Visakhapatnam and inspected Pindilova and Y.K.D Valasa in Vizinagaram Division and Battivalasa, Kavurai, Vantlamamidi and Chinakonam VSS in Visakhapatnam District. The Members also discussed with the VSS members, NGO and forest staff during their field visits. The group concluded their visits with the following remarks.

1. The biggest strength of the Programme is that there is no physical relocation of people in the programme planned and development in reaching them in their traditional habitat.

2. About 50% of the affected families are being compensated by way of land development programme which is the biggest strength of the programme.

3. The programmes identified to compensate the loss for the households who do not have land, i.e, value addition programmes in adda leaf, tamarind, bamboo, preparing vermicompost are good. Emphasis is to be given for vermicompost making in all the VSS and a tie up can be made by the Forest Department in buying back the vermicompost for the nursery and plantation programmes.

4. The members are pleased to see the effort being made by the Forest Department Staff jointly with the NGO’s and VSS members in proper implementation of the RAP programme, and the committee wishes to place on record the good work being done by the department staff.

2.2 Forest management: The development objective of the Project leans heavily on activities under this component as this account for more than half of the project investments. Activities under this component are:

¨ Improvement of forests vested with VSSs through rejuvenation of existing root stock and artificial regeneration coupled with sound silvicultural interventions of selective thinning and stand management practices, soil and moisture conservation works. These activities aim at enhancing productivity and sustained yield of forests under the management of VSSs. While forests with reasonable extent of viable rootstock of important species are to be rejuvenated, degraded bamboo forests will be improved by removing clump congestion and soil working. Scrub forests without economically important species will be replaced by high yielding short rotation timber yielding, NTFP and Medicinal plant species through artificial regeneration.

¨ Social forestry through development of forest resources outside forests through promotion and support for farm and community forestry.

¨ Applied research focusing on genetic improvement of selected species and standardizing techniques of their propagation, improving the silvicultural prescriptions for management of degraded forests.

¨ Developing mechanisms and tools for forest inventory for realistic assessment of impacts and

¨ Development of a comprehensive Forest Management Information System.

Given below is a gist of achievements in these activities.

2.2.1 Forest treatment: Project targets improvement of 315,800 ha of forests under management of VSSs. This includes improvement of 150,000 ha of teak forests, 100,000 ha of non teak miscellaneous forests, 50,000 ha of degraded bamboo forests, 5000 ha of red sanders forests and conversion of 10,800ha of scrub forests by artificial regeneration with short rotation woody, NTFP and medicinal plant yielding species. As against this, by the end of March 2006 an area of 3, 24,948 ha were treated. Details of the area treated so far since inception is given below:

Sl. No.	Category	Unit	Project target	Achievements	Percentage to the total targets
1	Teak forests	Ha	150000	147910	98.60
2	Misc. forests including red sanders	Ha	105000	78728	75
3	Bamboo forests including under-planting	Ha	50000	58304	116.60
4	Artificial regeneration including inter-planting	Ha	10800	40006	370.42
	Total	Ha	315800	324948	102.89

Treatment of forests is the major activity of this project and this creates tremendous amount of employment opportunities to the VSS members especially during lean working season. Till March 2006, this activity has generated 23.81 Million man-days of employment including 5.02 Million man-days during 2005-06.

2.2.1.1 Rejuvenation of teak forests: This model is widely used in degraded natural teak forests of Telangana region and in degraded old teak plantations of other areas. As against the project target 150,000 ha, an area of 1,47,910 ha has already bee treated. No area has been taken up for treatment this year as the project target had been achieved by and large. Treatment of these areas include shrub cutting as advance work, cutting back and coppicing viable root stocks ad high stumps that have resulted due to hacking and illicit cutting in the past, coppicing the stumps that are cut back and singling the multiple shoots that emanate upon coppicing. These activities are coupled with soil and moisture conservation works like gully plugging structures, mini percolation tanks, continuous contour trenches and staggered trenches, fire control measures, protection from grazing, staggered trenches to facilitate moisture conservation for the benefit of economically important and naturally growing NTFP plants in the treatment area. Since teak forests are deciduous forests, they are highly susceptible for fire damage and due to repeated fire damage soil is depleted. However required SMC works are being taken up on the concept of water shed basis during the current year to consolidate the area already treated. Fire control works are taken up in the form of shallow contour trenches of 0.5 M depth, 1.5 M top width and 1 M bottom width of convenient length. These trenches perform dual role of soil and moisture conservation during rainy season and fire control during dry season. Leaf litter all along these trenches will be swept into them and control burnt during summer. These activities are essential in the area treated under this model during the period under report.

2.2.1.2 Rejuvenation non-teak miscellaneous forests including red sanders forests: Non teak forests are distributed in the coastal Andhra and Rayalaseema belt. Non teak miscellaneous forests of the north coastal Andhra Pradesh in Srikakulam, Vizianagaram, Visakhapatnam and East Godavari districts represent the transition between north Indian Sal forest belt and the central Indian Teak tract with no major species dominating. These are rich in biodiversity and also an abode to a number of tribes. These forests are under varying degrees of degradation due to biotic pressure and inadequacies in management practices to which they were subjected to in the past. Non-teak forests of Rayalaseema are predominated by abundant occurrence of Pterocarrpus santalinus locally called Red Sanders. Red Sanders forests are also copiously infested with Chloroxylon coloratus also called Boda grass. Boda grass has primary utility in thatching but is a fire hazard. Thus one of the important field operation of improvement of Red Sanders forests is controlling Boda grass. A new utility for Boda grass has been discovered in that oil extracted from this grass can be distilled to extract essential oils that have application in pesticide industry. This also supplements income to the VSSs. Field operations in Non teak forests include soil and moisture conservation works, fire control measures, shrub cutting in areas dominated by uneconomic species and singling and coppicing. As this area also happens to be a high rainfall zone within Andhra Pradesh, repeated shrub cutting operations are needed to boost the growth of economically valuable species that are otherwise suppressed by species of lesser economic value. Focus is however on soil and moisture conservation works on a watershed approach treating the area from ridge to valley during the current year. Specifications for fire control measures and SMC works are similar to the ones taken up in case of Teak forests. As against Project target of 105,000 ha an area of 78,728 ha has been treated so far.

2.2.1.3 Rejuvenation of bamboo forests: Bamboo occurs abundantly in the forests areas covered under this Project. In fact out of 5000 VSSs supported under this Project Bamboo occurs in nearly 1000 VSSs. However gregarious occurrence is in about 500 VSS while it is scattered in the rest. There are principally three species of Bamboo that occur in the Project area. They are Dendrocalamus stricus, Bamboosa arundinaceae and D. hamiltonii with D. strictus making more than 90% of the resource. While paper industry was the major consumer of Bamboo part from domestic use and use by artisans (Buroods or Medars), new applications in the form of Composites, Roofing material etc. have come up thus opening better livelihood opportunities for bamboo bearing VSSs. If unmanaged, Bamboo can be a weed and can interfere with any vegetation. If adequate protection and managerial inputs are not provided, Bamboo would be hacked, its clumps get congested and its productivity comes down significantly. It is the Bamboo forests of this nature that were neglected and not managed and that were subjected to hacking and suffered from forest fires and the areas where Bamboo had flowered and regeneration had not established due to grazing, fire and other biotic factors that are presently under management of VSSs. Field operations include decongestion, saucer weeding, mounding to young clumps, staggered trenches near the clumps to impound moisture, fire control measures and SMC works like CCTs, Gully control structures, Mini Percolation Tanks etc. Selective felling of mature Bamboo culms duly retaining 6 to 8 culms per clumps to support the clump is a silvicultural operation that ensures health of the clump and also fetches revenue to the VSSs as the Bamboos so removed can be sold a green Bamboos or upon adding value in the form of Bamboo articles like Baskets, Agarabattis, Mats etc. As against the Project target of treating 50,000 ha of Bamboo forests, so far an area of 58,304 ha has been treated. This includes treatment of 31,074 ha under planting of bamboo by March 2006. Underplanting is a new and novel initiative taken during 2005-06 introducing Bamboo in those forests where it was not occurring naturally. Two year old rhizomes are planted in the existing gaps in the natural forests of VSSs created due to natural causes and temporary gaps created due to silvicultural thinnings and tending operations. On an average 125 plants are introduced per ha of forests. This is aimed basically to upgrade the quality of existing forests that are under management of VSSs but which can not ensure annual returns as they are primarily timber bearing forests. Bamboo would ensure intermittent returns and thus contribute to success of forest management by VSSs duly ensuring regular flow of returns.

2.2.1.4 Artificial regeneration: It can be seen from the data given above that as against the Project target of 10,800 ha of artificial regeneration of scrub forests with SRWP, NTFP and medicinal plant species, an area of 40,006 ha has been treated. This is due to site-specific requirement of forest treatment. During 2005 planting season an area of 18,139 ha has been planted with 13.29 million seedlings of SRWP, NTFP and Medicinal plant species. Seedlings planted are of Pongemia pinnata, Emblica officinalis, Euclayptus clones, Tamarindus indica, Annona squamosa, Sapindus emarginatus, Tectona grandis, Dendrocalamus strictus, Gymnema sylvestris, Decalyptus hamiltonii, Asparagus racemosa, Palmrosa etc. Since these areas though supported only scrub vegetation but have fertile soil to ensure good amount of success planting is preceded by good and intensive land preparation. This involves removal of all unwanted growth, ploughing the soil and planting healthy seedlings in pits of 45 cm³ at espacement of 5M X5M for Pongemia pinnata, Emblica officinalis, Tamarindus indica, Annona squamosa, Sapindus emarginatus and Dendrocalamus strictus, 10MX10M for Artacarpus integrefolia, 3MX1.5 M for Eucalyptus clones and 2.5MX2.5M for Tectona grandis.Planting of medicinal herbs like Gymnema sylvestris, Decalyptus hamiltonii, Asparagus racemosa is done as intercrop in the plantations of NTFP species and in natural forests again as under crop. Thus inter planting of medicinal plants is done in an area of 4566 ha. Watering facility is created for ensuring supplementary watering during dry season to ensure adequate growth. During this year, there is nearly 94% survival. Casualties have been replaced thus ensuring full stocking.Already 1000 ha area identified for long rotation forestry species like Teak, Rosewood and Gummadi Teak (Melinea arborea) as suggested in the technical note of the Forestry Expert of the World Bank.

2.2.2 Social Forestry: This activity is being implemented by the Planning and Extension wing of the AP Forest Department. Detailed note on progress of activities undertaken in this regard is annexed.

2.2.3 Applied research: Activities pertaining to Forestry Research are being implemented by the Research and Development Circle of the Forest Department. Basing on the activities and sub activities detailed in the Project Implementation Plan, a detailed and comprehensive Research Plan for the Project has been prepared. The salient features of this plan are:

• Consolidation and expansion of the benefits achieved under APFP.
• Integration of Research activities under he Project with the prioritised research themes of the department and provide continuity and flexibility to the research projects initiated under AP Forestry Project.
• Standardising package of practices supported by good extension strategy to accelerate production and improve yields by producing superior planting stock.
• Transfer of technology

Details of achievements and plan of action are given in the annexure.

2.2.4 Forest inventory: This activity has been contemplated for implementation during the third year of the Project. However as a part of microplanning baseline survey of forest resources is being done through field inventory. The methodology prescribed on the Project Implementation Plan is being followed for the purpose. Data collected in this exercise will also be made use of along with the regular inventory planned as detailed above. For a regular inventory a cell with competent officers and a clear mandate is being constituted and it is expected that this exercise will be competed within the remainder of the Project period.

2.2.5 Forest Management Information System: FMIS package has been developed with three operational modules i.e. Community Forest Management module, Financial Management module and Forest Inventory module. All inputs and report formats are developed using Visual Basic and Crystal Reports. The package will help in conversion of reports into formats of Spreadsheets for use in tandem with any additional information if need. It will also have facilities for data transmission through Networks and Internet. Detailed features and present status of each of the modules are given below:

2.2.5.1 Community Forest Management: This module covers all VSS activities connected with basic information about VSSs, details of house hold data of members of VSSs, details of micro plans prepared for these VSSs. In integration with the Financial Management module it facilitates monitoring and evaluation of physical and financial progress of these activities. It provides for MIS at VSS level.

2.2.5.2 Financial Management: This module provides for preparation of Annual work plans at Division, Circle and State level, Budget Estimates, Budget allocations and Revision of Budget estimates. It provides for detailed monitoring of each work and its components like preparation and sanction of work estimates following schedule of rates, financial transactions, and generation of reports that are required for monitoring and evaluation of various items of various activities of various components. Specifically, this module provides for generation of statutory financial reports and reports required for monitoring Project performance. Data on all financial transactions for the year 2002-03, Annual Work plans for 2002-03, 2003-04, 2004-05 and 2005-06 are available in this module. It provides for generation of all financial reports including Financial Management Reports and Reimbursement claims for the Project.

2.2.5.3 Forest Inventory: This module captures data pertaining to growth and yield statistics gathered in Forest inventory exercises and Baseline surveys and generates reports on forest stands, their basal area, their volumes, status of regeneration etc. The data generated in this module will be vital for Planning, Monitoring and Impact assessment in terms of incremental growth resulted due to various inputs into the forestry sector.

2.2.5.4 Training and Implementation status: Training and implementation support is extended by providing technical assistance in the form of IT facilitators as individual consultants sufficiently trained in handling the package to all the Circles and Divisions and PMU. Trainings have been imparted at the A.P. Forest Academy, Dullapalli for selected forest department staff of all the cadres i.e. Range Officers, Accounts Superintends, Accountants, Draughtsman, Range clerks etc. District level trainings are also conducted for staff or the above categories.

2.2.5.5 Future Plan of Action: Following are further activities planned:

2.2.5.5.1 Importing the database to Oracle and integrating MIS and GIS: Data saved in FMIS from time to time has been converted from access to Oracle as relational database with back-up facilities. An interface has been developed for the Oracle database and FMIS package for real time operations as the Access database cannot manage huge amount of data. This will be done in PMU, APFA Dullapalli and Regional IT Centres. However the FMIS package developed on access will be continued in divisions and circles as maintaining Oracle is difficult and costlier. The data updation in FMIS will be continued in the present manner i.e through electronic means until an online application is developed. Like wise GIS database was also converted into Oracle in the same structure after finalization of updation.

2.2.5.5.2 Establishment of regional IT centres and Networking: 3 more regional IT centres at Adilabad, Visakhapatna and Tirupathi are being established in addition to 3 existing at Rajahmundry, Warangal and Kurnool. These centres will be networked through APSWAN or any other suitable network for enabling online data accessing and transmission.

2.2.5.5.3 Development of on-line geo database and Web GIS: Huge amount of database is developed and archived. It is proposed to keep this database in the form of geo-database on-line through intranet by connecting all offices upto Division level and to integrate MIS database with GIS database. In addition to providing on-line database availability to all forest offices for regular use and for updation of information, as part of the government policy, it is decided to keep some information of department’s activities and services on Internet. On development of geo database and Web GIS the data can be put on net and privileges can be set for various levels of officers in creating/updating the information. It facilitates the single storage of spatial and non-spatial information.

2.2.5.5.4 Departmental web site: The department website is available on www.ap.nic.in/apforest. The old website is completely deleted and a new well structured website is hosted. This website is regularly being updated with the help of Web Programmer. All data on APCFM Project, Forest Flora and relevant information about A P Forest Department are hosted on this web site. In addition to this a broad band Intranet facility to all the officers in the O/o Prl. Chief Conservator of Forests, AP, Hyderabad with the information of Field Inspection Notes of Senior officers, Manual instructions of forest works, Field companion etc.

2.3 Community development: This component aims at bringing about holistic development of VSS communities focusing particularly on the vulnerable groups, social safeguards, bridging critical gaps in the endeavour of the project objective of poverty reduction through income generation activities to bring in an element of sustainability in the project implementation. Following are the activities contemplated:

¨ Supporting development of community infrastructure (on a limited scale) for VSS groups.

¨ Supporting the processing and marketing of wood and non-wood forest products (NTFPs) through APFD and NGO extension and training.

¨ Supporting poor, landless, women and other vulnerable groups especially the tribals by improving livelihood opportunities based on forest and non-forest activities through income generation activities and micro-enterprises.

¨ Encouraging and facilitating Participatory planning through micro-planning exercise for development of holistic plans,

¨ Facilitating livestock development and augmenting fodder resources.

¨ Evolve and implement suitable mitigation measures to ward off adverse impacts if any on any person due to Project implementation.

Activities in the areas of community infrastructure, income generation, micro-enterprise and micro business, market support will be taken up in accordance with the prioritised felt needs as documented and articulated in the microplans. These will also be dovetailed with the other developmental initiatives taken up by the Government of Andhra Pradesh through World Bank funded Andhra Pradesh Rural Poverty Reduction Project and the District Poverty Initiation Project popularly called Velugu and other projects.

2.3.1 Tribal Development Plan: About 30% of the membership of the VSSs supported under this Project is of Scheduled Tribes. Project design includes investments in Tribal Development Plan and also for development of Non Tribal VSS Villages. While the cap on investment has been fixed at Rs. 100,000 per VSS in respect of VSS with significant Tribal population (more than 10%), the limit for other VSSs is Rs. 50,000 per VSS. However investment in this current Project is to be made duly taking care not to repeat investments in VSSs that have already received such benefit during implementation of APFP. Further in order to maximise impacts from these investments, activities that ensure sustainable management of natural resources available and vested with the VSSs are planned and their value additions by the Common Enterprise Groups who are informally in position.

Sl. No.	Activity	Tribal Development Plan		Village Development Plan ( Non-Tribal)
		No. of VSS Covered	No. of Families benefited	No. of VSS Covered	No. of Families benefited
1	2	3	4	5	6
1	Agarbathi Stick Making	484	9184	168	5036
2	Lac cultivation	50	6834	0	0
3	Apiculture	131	3734	0	0
4	Pisiculture	44	650	0	0
5	Vermicompost	255	3212	125	6315
6	Bamboo Value addition	62	1426	0	0
7	Leaf Plate making	322	7427	126	1900
8	Tussar (Pattu)	2	45	0	0
9	Amla	14	801	0	0
10	Hill Brooms	5	116	0	0
11	Aromatic oils	26	1370	3	170
	Total	1398	34803	427	13427

So far 1398 VSS benefiting 34803 families have been covered under TDP and 427 VSSs with 13427 beneficieries under VDP. Following are the important activities taken up by VSSs under these programmes. Focus is on livelihood generation. Activities undertaken for providing common infrastructure facilioties are detailed in the Annexure dealing with Prformance indicators.

2.3.1.1 Support for value addition and marketing of bamboos: Bamboo occurs in abundance in Andhra Pradesh. Andhra Pradesh accounts for about 7.4% of India’s Bamboo resources. More than 1000 VSSs have abundant resources of Bamboo and their economy can scale up significantly with Bamboo related intervention. Bamboo is also known as poor man’s timber. It has a number of applications in various forms. During the period of this report Agarabatti sticks manufacturing has been focussed. As against a paltry Rs. 5 per Bamboo the VSSs are now able to generate Rs. 25 per Bamboo most of it being in the form of wage employment to VSS members in converting Bamboo into Agarabatti sticks. So far more than 170 tonnes of Agarabatti sticks were supplied by VSSs in Mancherial, Bellampalli, Jannaram, Kagaznagar and Vizianagaram Divisions. This activity is being extended to Khammam, Paloncha, Narsipatnam, Srikakula, Visakhapatnam and Kakinada Divisions. Common facility centres that will function as training cum production cum quality control centres have been established at 5 places. 25 more will be established.

2.3.1.2 Extraction and marketing of oil from Boda Grass: Chloroxylon coloratus (Boda Grass) is abundant in the forests of Kadapa and Chittoor districts. Presently it is a fire hazard. Steps have been taken to install distillation units in 29 VSSs to extract aromatic oils from Boda Grass. Presently only about 5% of the Boda Grass resources is being used for thatching purpose.

2.3.1.3 Pongamia Oil for bio-diesel: Steps are taken to establish Bio diesel projects in two VSSs in Kaghaznagar division of Adilabad district at cost of Rs. 3 lakh each. This will help in electrification of the village with bio diesel produced from Pongamia seeds, where electricity is not available.

2.3.1.4 Lac Cultivation: Lac insect (Laccifer lacca) completes its life cycle on host trees like Schliechera oleosa (kusum) and Butea monosperma (Moduga). It grows on the succulent branches of the above trees twice in a year i.e., from July to December, December to June. In Telangana areas Butea Monosperma trees are found in abundance in the VSS forests. Lac cultivation also has been initiated in 50 VSSs of Adilabad, Karimnagar, Mahabubnagar and Nizamabad districts and other districts of the state. This activity will supplement similar initiative taken by the APDPIP and APRPRP in other areas.

2.3.1.5 In situ grafting of Gotti with Regu: Zizyphgys xylocarpa (Gotti) occurs in plenty in the forests of Kadapa district. In situ grafting of this with Regu (Zyziphus nalys) is being taken up in the VSSs of Kadapa district. Nearly 1000 trees each in 20 VSSs have been grafted with this technique. This will provide income to the VSS members. As far as economics of raising bare gardens is concerned it is experienced that each bare tree gives a yield of 20 Kg at the age of 3 to 4 years. Though in market it is sold at Rs.20.00 per Kg., but at farm level it is sold at Rs.10.00 per Kg. Due to dry conditions prevailing in the VSS forests without irrigation which is not physical each grafted tree may give 10 Kg of fruit. Each VSS is therefore expecting steady income of Rs.50,000.00 annually from this initiative. Added to this SMC works done in the VSS area by the members have helped in recharging the ground water down stream resulting in increased crop production for the benefit of the user groups.

2.3.1.6 Leaf plate making with Adda leaves: Traditionally the tribals of Visakhapatnam, Vizianagaram, East Godavari and Bhadrachalam areas have been collecting Adda leaf (leaves of Bauhinia vahlii) and selling to GCC and middlemen in Shandies. Conversion of the leaves so sold into leaf plates has been in the domain of plainsmen. Essentially the tribals though are primary collectors of this resource have not had the benefit of value addition and market intervention. Infact the plainsmen have been benefited most by these activities. Thus the forest dependant tribals have remained poor and their drudgery of travelling long distances on foot many a times for days together have added to their misery. A simple intervention of training the tribal women in stitching leaves into leaf plates has been taken up through participation of 40 NGOs in 322 villages covering around 7427 families in Visakhapatnam and Vizianagaram districts. Though this activity has been initiated only three months back, it is picking up like wild fire and is becoming very popular in the tribal belt. The enthusiasm seen among the tribal women in this activity is only to be seen to be believed. Sofar marketing is limited to local hotels but a dialogue has been opened for supplying to major temples who are bulk users of leafplates on a regular basis.

2.3.1.7 Apiculture (Bee keeping): Cultivation of Apis mellifera popularly called European hone bee has been taken up in 131 VSSs covering 3734 families. These activities have begun in the month of September 2005 and it is expected that by June 2006 about 10 tonnes of honey will be produced by these VSSs. As this is a new activity, implementation is slow and guarded. Once the systems are established and skills are acquired and confidence is gained, activities will be scaled up. Services of private entrepreneurs is being utilized in training and hand holding.

2.3.2 Community based Eco-tourism: This is a new activity included in the Project after consultation with the World Bank during the visit of its supervision mission in December 2003. Community Based Eco-tourism involves participation of local communities constituted as VSSs and Eco Development Committees (EDCs) in management of tourism aspects of protected areas and areas that have rich biodiversity and that are ecologically sensitive but have tremendous tourism and educational importance. Economic benefits that accrue from Eco-tourism will be shared among the VSS/EDC members. The economic benefits are expected to bring about social up-liftment of the forest dwellers and thereby reduce the poverty in the rural areas. Activities taken up under eco-tourism include:

• Planning for community based eco-tourism.
• Capacity building of community, training in visitor management, catering etc.
• Designing and establishing eco friendly infrastructure through community participation.

These activities are being implemented in (6) identified sites. Basically, this programme is being carried out as a poverty alleviation measure in the villages adjoining protected areas and forests, while aiming at biodiversity and forest conservation in the long run, though people’s participation. The following is the list of protected areas and forests proposed and the status: -

2.3.2.1 Sri Venkateshwara National Park, Chittoor district:

2.3.2.1.1 Talakona: The eco-developmental works are being taken up actively through Nerabailu YC VSS. On an average 20,000 Nos. visitors visit Talakona every month and the tourists are from Andhra Pradesh, Tamilnadu & Karnataka. The selection of the VSS members for catering, housing keeping, guide services and establishing a STD booth is completed. A (4) Suit Dormitory and low cost Pagoda has been constructed besides improving the existing facilities in the log huts. Other facilities like kitchen, cafeteria, (3) nos. of nature trails are under progress. An amount of Rs.10.989 lakhs has been spent on this site. Visitors are regularly visiting the Talakona water falls and 66,358 nos. of visitors have visited the area form April 2005 to February 2006. However the functioning of community based eco-tourism are at a low ebb due to extremists activities.

2.3.2.1.2 Mamandur: Visitors from Andhra Pradesh and neighboring Tamilnadu visit the area and the spot is located 30 Kms. away from the Tirupathi on Tirupathi – Kadapa highway. A (4) suit dormitory, improvement of Forest Rest House & Kitchen, low cost Pagoda have been taken up. The existing cottage has been improved. Five natural trail paths have been laid out for visitors and provision of, electricity, potable water supply have been made. Watch towers and animal view points have been improved and upgraded. An amount of Rs. 9.110 Lhas been spent on this site during. An amount of Rs. 11.0.L is earmarked for 2005-06.

The Community Based Eco-tourism at Mamandur is functional from April 2005 and upto 15^th February 2006, total 4908 number of visitors have visited the facility. The total revenue realized from the visitors is Rs.56,000/- and the total expenditure incurred is Rs.23,505/- and the net saving is Rs.33,095/- Totally (14) beneficiaries (catering, house keeping and guide services) are being supported from the Community Based Eco-tourism activities.

2.3.2.2 Kambalakonda Wildlife Sanctuary, Visakhapatnam District: The Sambhuvanipalem VSS members have taken up the CBET project in Kambalakonda area. Already the area has been developed by fencing 80 Ha., establishing watch towers & view points, sit-outs for public, etc. There is a good potential for visitors coming to the spot as it is hardly 10 Kms. from Visakhapatnam city. Three locations were identified for erecting tent accommodation. 7 tents are erected in consultation with Tourism Department and Youth hostels. The size of the tents is 20 ft X 10 ft including toilet. Cafeteria was constructed with 40 X 20 feet with infrastructure like extension of kitchen and Store room. Two trails of 3 Kms and 5 Kms each was formed with 1mt width providing steps where ever necessary. 3 new sign boards are erected and 3 existing boards are repainted. Visitors’ amenities like common toilets, visitor sheds & machans are constructed. Development of other infrastructures like water supply, digging of bore well, laying of pipe lines and electrical connections have been completed. The surplus money available with the committee as on 1-0402005 was Rs. 73,204/- The No, of visitors who have visited the facility from 1^st of April 2005 to 28^th February 2006 is 71,769 *(adults – 68,261/- children – 3,508). An amount of Rs.7,06,126 was collected as revenue entry fee, guide services, catering and house keeping facilities. An amount of Rs.6,13,782/- has been incurred as expenditure towards maintenance and wages, Totally (17) VSS beneficiaries are being supported from the Community Based Eco-tourism activities and Rs.1,65,548/- amount is surplus with the Community and it is self sufficient.

2.3.2.3 Coringa Wildlife Sanctuary, East Godavari District: The Community Based Eco-tourism in Coringa Wildlife Sanctuary is proposed to be implemented in two parts. In the initial phase the visit of the tourists to the mangrove area will be conducted by the community and the visit to the Hope island will be taken up in the second phase as the procurement of a sturdy sea worthy boat is essential and it is expensive. Seeing the success of the project the procurement of the boat and visit to the Hope island will be taken up. As part of the phase-I programme, the wooden walk way for tourists to visit the mangroves has been taken up to a length of 180 meters. Besides this, Construction of (5) Nos. local hutment type of accommodation, cafeteria, development of trails through the mangroves have been taken up, besides to repairs to existing guest house, water supply system and signboards. An amount of Rs.7.931 lakhs has been spent upto end of March, 2005. An amount of Rs.10.7 lakhs is earmarked for 2005-06.

The number of visitors to Coringa Wildlife Sanctuary has increased due to the awareness in the public and under Community Based Eco-tourism project facilities like wooden board walk and cottages for stay of visitors have been created. A present the visitors are not being charge as further facilities like Boat ride, interpretive guided tours etc, are planned. Once the facility gets sufficient publicity and the visitation rate improves, the Community Based Eco-tourism members will fix a remunerative tariff.

2.3.2.4 Tatipudi Reservoir: The community based Eco-tourism project at Thatipudi on the bank of Gosthani River with the involvement of members of 1) Nakkalavalasa, 2) Rallagaruvu 3) Panasalapadu, (4)Addatheega & (5) Diguvakondaparti VSS is being taken up. A Managing Community was constituted with 28 members with the participation of VSS members of Panasalapadu, Addatheega, Rallagaruvu, Nakkalavalasa & Diguvakondaparti VSS. Two suites with reception hall and cafeteria and two toilets were constructed in the down hillside. Two suites were constructed and both the places are connected with pathways. Overhead Tank and Pipeline connections are provided. One Borewell was dug for water supply. Training was also imparted to 5 VSS members in Cooking and in maintenance of Cafeteria through Velugu Project. There is a very good scope for developing angling activity. Selection of House keeping boys, Cooks, Security guards, Receptionists, Catering Boys, Sweepers and Nature Guides and training has been completed. This will create direct employment to 20 Members of local VSS. An amount of Rs.10.00 lakhs was spent during 2004-05.

2.3.2.5 Kuntala Waterfalls, Adilabad District: The Kuntala waterfall which is on Kadam river is located at a distance of 12 Kms from the National Highway No. 7 from Neradigonda village and about 40 Kms from Nirmal and about 65 Kms from Adilabad. The Kadam river decends from a height of 45 meters at Kuntala waterfall and with lush green forests around it. There is “Someswaraswami Sivalingam” in a small cave on the rock face of waterfall and it has to be reached through an opening in the rock. “Mahasivaratri” is celebrated here with reverence and grandeur. The visitation for the year April 2005 to January 2006 is 19,390 members and the income realized is Rs.77,550/- and the corresponding expenditure towards maintenance and wages is Rs.58,568/-. The net revenue available with the Community Based Eco- tourism is Rs.23,882/-. Four families are directly benefited and twelve families indirectly benefited from the Community Based Eco-tourism activities. Similarly, Community Based Eco-tourism activities are being takenup in the nearby Pochera Water fall located about 16 Km away from Kuntala Water falls and 3.5 Kms from N.H.No.7 and 0.5 Kms from Boath X Road – Kinwat state High way. Tejapur, Pochera and Kowtha villages are located 1,2 and 2,5 Kms respectively from water fall site. Unlike Kuntala which is located deep inside forest, Pochera water fall is surrounded by habitations and the tourists can be provided night accommodation. It is flat land with sparse tree growth and is ideal as a camping site to be made as local hutments (Cottages) to blend with the surroundings. The Community Based Eco-tourism still under development and once all facilities are created it will be opened to the public.

2.3.2.6 Maredumilli, East Godavari district: Maredumilli Community Based Eco-tourism is being implemented by Somireddy palem VSS of Rampa Chodavaram Range (Kakinada Division). On pilot basis during the month of Kartika Masam season of 2005 the project commenced. Nearly 6000 members visited the area during the season and an amount of Rs.13,000/- was collected towards entry fee etc. It is planned to take up further Community Based Eco-tourism activities in the next financial year.

3. Status of Procurement:

3.1. Goods and Equipment including vehicles and civil works: Volume (V) of the project implementation plan deals with the procurement plan under APCFM Project. So far following procurements are completed.

Sl. No.	Item	Procurement method as per PIP	Qty provided in PIP	Amount provided in PIP Rs in Lakhs
					Procurements completed so far		Balance items to be procured
					Qty	Expenditure in lakhs
1	2	4	5	6	7	8	9
1	GPS Units	ICB	20	2.10	0	0	20
2	Scanners	ICB	2	2.20	0	0	2
3	Desk Top Computers	ICB	350	477.80	350	134.49	0
4	Laptops	ICB	60	133.00	60	77.09	0
5	Servers	ICB	12	33.20	0	0	12
6	GIS Work Station	ICB	1	19.30	0	0	1
7	GIS Capable Computer	ICB	9	33.60	0	0	9
8	Hand held data loggers	ICB	200	32.30	0	0	200
9	FMIS Development or Purchase	ICB	LS	143.20	0	0	LS
10	Hand held data loggers Software	ICB	LS	10.00	0	0	LS
11	GIS Software ERDAS	ICB	4	20.80	0	0	4
12	GIS Software ARC Info NT	ICB	5	72.70	0	0	5
13	GIS Software ARC View Floating	ICB	1	4.20	0	0	1
14	GIS Software ARC View	ICB	20	20.80	0	0	20
15	GIS Software Others	ICB	LS	2.50	0	0	LS
16	Website Development	ICB	LS	20.80	0	0	LS
17	Printers	ICB	165	17.60	315	37.12	0
18	Plotters	ICB	15	32.50	2	11.44	13
19	Scanners	ICB	15	1.60	6	1.19	9
20	GPS	ICB	400	87.70	400	51.59	0
21	A3 Colour Laser Printer	ICB	6	18.70	1	3.48	5
22	Head Quarters	ICB	1	1.50	0	0	1
23	Circle	ICB	12	17.90	0	0	12
24	Division	ICB	46	68.80	0	0	46
25	Ranges	ICB	200	299.10	0	0	200
26	Furniture for Forest Head Quarters	NCB	LS	73.10	0	0	LS
27	Digital Cameras	NCB	60	32.80	50	23.05	10
28	Xerox Machines	NCB	4	8.60	0	0	4
29	UPS	NCB	200	53.60	50	7.82	150
30	Office Equipment, Photo Copiers and LCD Projectors etc	NCB	LS	15.30	60	82.45	LS
31	Data Acquisition	DIR	LS	95.80	0	0	LS
32	Cars & Vans	LS	29	254.90	17	71.51	12
33	Jeeps	LS	43	207.10	10	47.81	33

The year wise procurements completed is detailed below

3.1.1. Goods and Equipment

3.1.1.1. Procurement of Goods and Equipment during the year 2003 -04: The Annual Work Plan of CFM Project was approved by the Government in the G.O.MS.No.48 EFS&T (for-III) Department dated 7-06-2003. Following are the details of procurements done during 2003-04. Computers and peripherals and digital cameras were procured through the A.P. Technology Services Ltd., as agreed during project preparation. Concurrence of the World Bank was obtained at all required stages during this procurement. Details of goods procured are given below:

(Rs. In Lakh)

Sl.No.	Description of goods to be procured	No. of units	Financial allocation	Method of procurement	Expenditure incurred including APTS service charges
1	2	3	5	6	7
1	Desktop Computers	100	102.90	ICB	38.55
2	Laptop Computer	15	30.00	ICB	21.97
3	Printers (peripherals)	65	13.00	ICB	6.10
4	All in One Laser Jet printers	6		ICB	1.19
5	Plotters (peripherals)	1	30.00	ICB	6.00
6	GPS (peripherals)	100	25.00	ICB	17.05
7	UPS (Computer Hardware)	50	14.00	NCB	7.82
8	Digital Cameras (peripherals)	50	20.00	NCB	23.05
	Total		234.9		121.73

3.1.1.2.Procurement of Goods and Equipment during the year 2004 –05: The Annual Work Plan of CFM Project was approved by the Government in the G.O.MS.No.73 EFS&T (for-III) Department dated 11-06-2004.Computers and related equipment, Plain paper copiers are procured during the year under ICB/NCB Procedures of the World Bank. Concurrence of the World Bank was obtained at all required stages during these procurements. Details of Goods procured are given below.

S.No	Items to be procured	Qty. (Nos.)	Method of Procurement	Financial Allocation	Expenditure Incurred
1	Desktop Computers	250	ICB	149.100	95.94
2	Printers a) Dot Matrix printers8	100	ICB	37.50	12.63
	b)DeskJet printers	150	ICB		18.40
3	Plotters	1	ICB	6.00	5.44
4	A3 Color Laser Printers	1	ICB	4.00	3.48
5	Laptop Computers	45	ICB	54.00	55.12
6	GPS hand held sets	300	ICB	60.00	34.54
7	Plain Paper Copier cum Printers (Xerox Machines)	65	NCB	86.20	82.46
8	DVD Players	35	LS/NS	12.00	7.00
	Total			408.80	315.01

3.1.1.3. Procurement of Goods and Equipment during the year 2005-06: During the year2005-06 it was proposed to procure training equipments and Audio-Visual Aids, Servers, GIS Cable Computers, GIS Work Stations, UPS,GIS Software, Projectors and other equipment. Though process was initiated through APTS Ltd, the procurement of GIS equipment, UPS, Projectors etc could not be procured by the end of the financial year. Status of these procurements is detailed below.

Sl.No	Items to be procured	Quantity	Method of procurement	Financial Allocation Rs.in lakhs	Expenditure Incurred Rs.in lakhs	Remarks/Present Status
1	Training equipment and Audio Visual aids at APFA, Dullapally (35No.of DVD players and 10No.of LCD Projectors)	LS	Local shopping	5.00	15.00	Procured by the Director, APFA,Dullapally
2	Servers	1	ICB	5.00	-	ICB Document was approved by the World Bank and APTS Ltd., Hyd has issued notification to obtain bids under ICB. Pre-Bid conference was held by the APTS Ltd. on 24.09.2005 and minutes were forwarded to the World Bank for approval. World Bank in the has approved the minutes of the pre-bid meeting and suggested to issue a new paper notification about the changes and to extend bid submission date. Accordingly APTS Ltd has issued paper notification with the last date for the receipt of bids on 15.3.2006. Evaluation report is awaited from APTS Ltd.
3	GIS Capable Computers	9	ICB	25.00	-
4	GIS Work Station	1	ICB	5.00
5	UPS	250	NCB	50.00	-	NCB Document was approved by the World Bank. APTS Ltd., Hyd has obtained bids by 08.09.05 for which evaluation report was submitted to the World Bank on 30.11.2005 for approval which is awaited
6	A3 Colour laser printer	1	ICB	8.00	-	After finalization of technical specifications, M/s.APTS Ltd., Hyd was requested to initiate the procurement process. APTS limited is initiating the procurement
7	Office Equipment Projectors DVD Players	30 100	NCB	80.00	-	After finalization of technical specifications and requirements M/s.APTS Ltd., Hyd was requested in this office reference Dt. 29.11.2005 to initiate the procurement process. Accordingly APTS Ltd has prepared the NCB document and forwarded the same to the World Bank on 28.2.2006 for approval which is awaited.
8	GIS Software Others	LS	Local Shopping	24.00	14.87	(2) ARC Info and (5) ARC View licenses have been upgraded at the cost of Rs.14.87 lakhs. The upgraded versions have been delivered.
Total				234.00	31. 52

3.1.2.Vehicles

3.1.2.1. Procurement of Vehicles during the year 2003 – 04: The Government of Andhra Pradesh in the G.O. No. 319, dated 13-11-2003 permitted for procurement of (17) cars and (10) jeeps. After taking the approval of the World Bank the following vehicles were procured, following National Shopping procedure. The details are as follows:

Sl.No.	Description of vehicle procured	No. of units	Budget allotment	Expenditure incurred
1	Cars: -
	Tata Indigo GLX, Petrol	9	Rs. 156 lakh	Rs. 36.76 lakh
	Tata Indigo LX, Diesel	8		Rs. 34.75 lakh
2	Jeeps
	Bolero LX/4WD/8 Seater	8		Rs. 35.55 lakh
	Mahindra Scorpio GLX/2WD//8 Seater	2		Rs. 12.26 lakh
	Total	27	Rs. 156 lakh	Rs. 119.31 lakh

3.1.2.2. No vehicles were procured during the years 2004 –05 and 2005-06 due to non receipt of approval from the Government of AP.

3.1.3. Procurement of Civil Works:

In project Implementation Plan following Civil Works are provided

Sl.No	Item	Target as per PIP	Method of Procurement	Amt Provided in PIP Rs in Lakhs
1	2	3	4	5
1	Forest Head Quarters Complex	1	NCB	448.80
2	Water Supply Facility at A.P. Forest Academy, Dulapally	1	NCB	22.70
3	Indoor Stadium cum Auditorium at A.P Forest Academy, Dulapally	1	NCB	22.70
4	Hostel Building & Dining Hall at AP. Forest Academy, Dulapally	1	NCB	34.80

The progress of the procurement of the above civil works is detailed below. These civil works are being taken up through AP. Industrial Infrastructure Corporation Limited, Hyderabad

3.1.3.1. Construction of head quarters building:

Construction of the Forest Head Quarters Complex is organized in to following packages as shown below.

*The dismantling of the old structure was completed at a cost of Rs.11.00 lakhs under NCB

* For Package No. I i.e. civil works, sanitary and water supply, internal electrical conduting and wiring etc. contract was concluded with M/s.Ramky Infrastructure Limited for an amount of Rs. 8,59,01,734/- on 23.2.2005. The contractors have started the work and which is near to complete.

* For Package No.IIA i.e. Supply and installations of AC's,, Lifts, Fire Fighting and Electrification etc, NCB document is approved by the World Bank for Rs.5.01 crores and APIIC Limited has obtained bids by 5.7.2005.APIIC Limited has submitted bid evaluation to the World Bank on 20.08.2005. The World Bank in their letter Dt.12.09.2005 has communicated no objection to the proposal to award the contract of the this work to the lowest evaluated responsive bidder i.e M/s.Ramky Infrastructure Limited, Hyderabad for an amount of Rs.5,52,60,166/-. APIIC Limited, Hyderabad has concluded the contract agreement on 18.10.2005.The contractors have started the work.

* For package No.IIB i.e. for providing of interiors including partitions, wall paneling, false ceiling and paintings NCB document for an estimated amount of Rs.3.0343 crores prepared by the APIIC Limited, Hyderabad was forwarded to the World Bank for approval on 5.09.2005. World Bank in their letter dt. 12.09.2005 has conveyed their no objection to the NCB document. APIIC Limited, Hyderabad has obtained bids and submitted the evaluation report to the World Bank recommending to award the contract to M/s.A.Nageswara Rao, Rajahmundry for an amount of Rs.2,93,40,750/-. World Bank in their letter Dt. 23.12.2005 has approved the evaluation report. M/s.APIIC Limited, Hyderabad has entered contract on 27.01.2006.

*Similarly For package No.IIC i.e. for providing Workstations and Furniture NCB document for an estimated amount of Rs.5.2704 crores prepared by the APIIC Limited, Hyderabad was forwarded to the World Bank for approval on 5.09.2005. World Bank in their letter dt. 12.09.2005 has conveyed their no objection to the NCB document. APIIC Limited, Hyderabad has obtained bids and submitted the evaluation report to the World Bank recommending to award the contract to M/s.Godrej Boyce Manufacturing Company limited for an amount of Rs.2,53,86,893/- World Bank in their letter Dt. 23.12.2005 has approved the evaluation report. M/s.APIIC Limited, Hyderabad has entered contract on 27.01.2006.

* The total estimated cost comes out to Rs.24.23 crores , out of which an amount of Rs.8.70 crores was paid as advance to the APIIC Limited so far. The balance amount will be paid after receipt of the revised administrative sanction from the Government. An amount of Rs. 6,03,15,024/- was spent by APIIC Limited so far. The details are given below :

Sl.No	Description	Amount in Rs.	Expenditure incurred by APIIC Ltd.so far in Rs.
1	Dismantling of the existing structure	11,00,000/-	11,00,000/-
2	Civil Works, Sanitary and Water supply, Internal Electrical conduting and Wiring etc.	8,59,01,734/-	5,09,26,110/-
3	Supply and installation of A.C’s, Fire Fighting, Lifts, UPS, LAN, CCTV, Internal and External Electrification etc	5,52,60,166/-	-
4	Providing Interiors, Partitions, Wall Paneling, False Ceiling and Paintings etc.	2,93,40,750/-	-
5	Providing Work Stations and Furniture, Public Address system, EPBX, Telephone System etc.	2,53,86,893/-	-
6	Provision for PS and contingent items @1.5%	29,54,843/-	1,00,530
7	Provision for unforeseen items @ 2%	39,39,791/-
8	Statutory payments to AP Transco	25,00,000/-	-
9	Statutory payments to HMWSSB	10,00,000/-	-
10	Payments to Fire Service Department	1,46,000/-	1,45,120/--
11	Provision for Public Address and Telephone Systems.	30,00,000/-	-
12	Centage Charges	3,17,76,627/-	80,43,264/-
Grand Total		24,23,06,804/- or 24.23 crores	6,03,15,024/-

* Government were requested to accord revised administrative sanction for Rs.24.23 crores towards the construction of the Forest Head Quarters Complex in Aranya Bhavan premises (including dismantling of the old structure), which is awaited.

3.1.3.2: Construction of Hostel building Indoor stadium cum Auditorium at

A.P.Forest Academy, Dullapally:-

* NCB document for the construction of Hostel building Indoor stadium cum Auditorium at Forest Academy, Dulapally is approved by the World Bank for Rs. 2.74 crores and APIIC Limited has obtained bids with the last date on 11.08.2005. APIIC Limited, Hyderabad has forwarded evaluation report to the World Bank on 21.09.2005. World Bank in their letter Dt.29.09.2005 have given no objection to the proposals to award the contract to the lowest evaluated responsive bidder M/s.Vensar Constructions Company Limited, Hyderabad for an amount of Rs.2,77,50,918/-. APIIC Limited, Hyderabad has concluded the contract agreement on 28.10.2005. The contractors have started the work.

* The total estimated cost comes out to Rs.3.37 crores , out of which an amount of Rs.0.60 crores was paid as advance to the APIIC Limited so far. The balance amount will be paid after receipt of the revised administrative sanction from the Government. So far no amount has been spent by the APIIC Limited.

1	Total contract value of construction of Hostel Building and Indoor Stadium cum Auditorium including Civil Works, Water supply and Sanitary, Internal and External electrical works.	2,77,50,918/-	-
3	Provision for unforeseen items @ 2%	5,55,000/-	-
4	Statutory payments to AP Transco	5,00,000/-	-
5	Statutory payments to HMWSSB	5,00,000/-	-
6	Centage Charges	43,95,888/-	-
Grand Total		3,37,01,806/- or Rs.3.3.7 crores	-

• Government were requested to accord revised administrative sanction for Rs.3.37 crores towards the construction of the Hostel building Indoor Stadium cum Auditorium at A.P.Forest Academy, Dulapally which is awaited.

3.2. Consultancy Services:

3.2.1. Consultancies already completed/Closed:

3.2.1.1. Consultancy for Social and Environmental Assessment: The World Bank and the Government of Andhra Pradesh have accorded permission for appointment of National Institute of Rural Development, Hyderabad, on single source to take up consultancy on Social and Environmental Impact Assessment for A.P. Community Forest Management Project with a financial outlay of Rs.26, 70,000/-. The Institute has completed the assignment and submitted final report on 5^th November 2001 on Social and Environmental Assessment of the Project. The cost for this consultancy has been met from the sanction made by the World Bank towards Project Preparation Fund. A summery of the Social and Environmental Assessment of the A.P. Community Forest Management Project, based on the final report submitted by NIRD has been included in the Project Implementation Plan of the Project.

3.2.1.2. Consultancy for Institutional Assessment: The World Bank and the Government of Andhra Pradesh have accorded permission for appointment of Ms. Om Consultants (India) Pvt., Ltd., Bangalore, on single source to take up consultancy on Institutional Assessment for A.P. Community Forest Management Project with a financial outlay of Rs.5,20,625/-. The Institute has completed the assignment and submitted final report on 6^th September 2001 on the Institutional Assessment of the Project. The cost for this consultancy has been met from the sanction made by the World Bank towards Project Preparation Fund. The report submitted by the consultant has been utilised in preparation of the Project Implementation Plan, prepared for the implementation of A.P. Community Forest Management Project.

3.2.1.3. Consultancy for Sustainable Harvesting, Conservation, Cultivation and Marketing Linkages for medicinal plants: The World Bank and the Government of Andhra Pradesh have accorded permission for appointment of Ms. Foundation of Revitalization of Local Health Traditions (FRLHT), Bangalore, on single source to take up the consultancy on Sustainable Exploitation, Conservation, Cultivation and Marketing Linkages for medicinal plants of Andhra Pradesh for A.P. Community Forest Management Project with a financial outlay of Rs.19,25,000/-. The Institute has completed the assignment and submitted final report on 12^th August 2002 on the study on Sustainable Harvesting, Conservation, Cultivation and Marketing Linkages for medicinal plants for A.P. Community Forest Management Project. The cost for this consultancy has been met from the sanction made by the World Bank towards Project Preparation Fund and the permission to utilize retroactive fund. The report submitted by consultant is being utilized in preparation of the activity of cultivation of medicinal plants as a component under the Project and included in the Project Implementation Plan, prepared for the Project.

3.2.1.4. Consultancy for the study of Delegation of financial powers and administrative reforms: The World Bank and the Government of Andhra Pradesh have accorded permission for appointment to engage a Committee consisting two senior government Officials, viz., Sri D. Subrahmanyam, retired Sr. Audit Officer of the Andhra Pradesh Accountant General office and Sri P. Pullaiah, retired Chief Accounts Officer of the A.P. Forest Department. The total value of the consultancy is Rs.50,000/-. The Committee has completed their study, and conducted workshops with Forest Department Officials at various circles and submitted their report during June, 2002 The report submitted by the Committee has been examined, discussed with various Service Associations and a detailed proposal was submitted to the Government and the World Bank for approval. Approval from the World Bank was already received. Proposals for amendment of A P Forest Code and Accounts code were submitted to the Government basing on the report of the above committee.

3.2.1.5.Consultancy for NTFP study: The Government in G.O.Ms.No.24, EFS&T (For.III) Department, Dated: 17.3.2003 have appointed M/s. The Energy and Research Institute, New Delhi, as Consultants for NTFP study under Andhra Pradesh Community Forest Management Project. The value of the consultancy is Rs.9,91,500/-. The consultants have commenced their study. For the purpose of field study they have selected Adilabad, Chittoor and Visakhapatnam districts. They have submitted Final report during July,2004 which was forwarded to the World Bank on 10.8.2004. World Bank has communicated no objection for this final report in their Fax message Dt.10.3.2005.

3.2.1.6. Consultancy for process documentation: The consultant was engaged on short-term basis for a period of three months. Sri Suresh Babu, Hyderabad was engaged from 1.12.03 to 29.02.04 and from April, 2004 to March,2005 Sri T. Sivaji, Journalist, Hyderabad, were engaged as consultants. Their services were utilized in documenting the process of transition to APCFM project through policy changes, decentralization of decision-making processes and devolution of powers. However this consultancy was not renewed beyond March 2005.Total expenditure incurred on this consultancy is about Rs.2,25,000/- @ Rs.15,000/- pm

3.2.1.7.Consultancy on Extension Skills and Communication Strategy: As the World Bank Approval for technical evaluation has not been received and as the financial proposals submitted by the consultants were lapsed, further action was closed during July 2004

3.2.2.Consultancies in which contracts concluded (pending for reports)

3.2.2.1. Consultancy on Monitoring and Evaluation of project implementation: M&E Consultancy: The Government in G.O. Ms. No. 45 EFS&T For III Dept. Dt. 26.5.2003 have accorded permission to engage M/s. Centre for Public Perception and Policy, Hyderabad as Consultants for Monitoring and Evaluation of Andhra Pradesh Community Forest Management Project. The contract was signed on 28-5-2003 for an amount of Rs.49,65,000/- and the assignment was commenced from 1.6.2003. The consultants have submitted final report on the M&E Frame Work. Data has been gathered for 2003-04 in the formats detailed in the M&E Frame Work. First M&E report furnished and shared with the Bank. The 2^nd round of Concurrent M&E report is due from the Consultant.

3.2.2.2. Consultancy for assisting PMU in Internal Audit: Agreement was entered on 31.01.2004, with Sri.D. Subrahmanyam, Rtd., Sr. Audit Officer of AG and Sri.K.V.B Lingaiah, Rtd., Accounts Officer of Forest Department. Their services were utilized up to 22.09.2004 for Internal Audit of the project, reimbursement claims of World Bank expenditure, classification of expenditure and other matters related to APCFM Project. In view of the instructions issued by the Govt. to terminate the services of retired Govt. employees, the services of these consultants were terminated w.e.f. 22.09.2004. In place of them (2) persons from M/s. Narasimheswar & Co., a Charted Accountants firm, Hyderabad were engaged as consultants @ Rs.12,000/- pm per each from 27.12.2004.

3.2.2.3. Engaging services of IT facilitators: TOR along with proposals for professional support in Information Technology was sent to the World Bank. As approved by the World Bank (51) IT Project scientists and six(6) IT facilitators were recruited as individual consultants. They were given orientation training on FMIS at the A P Forest Academy Dullapalli and are working at their respective places.

3.2.2.4. Engaging services of NGO coordinators: For providing support to DFOs implementing the project especially in coordinating the functioning of CEWs and in conducting trainings and workshops and in organizing study tours, NGO coordinators were engaged as Individual Consultants and they are working at their respective places.

3.2.2.5. Consultancy on the Value Addition, Technology transfer and Commercialization for Micro enterprises Development of Bamboo in A.P: - ToR for this consultancy was approved by the World Bank on 27.04.2004. Technical and Financial proposals were obtained from M/s A.P. Technology Development and Promotion Center, Hyderabad on single source basis. The Proposals were evaluated by the Committee on 29.06.2004 and evaluation report was submitted to the World Bank through Govt. of AP, on 28.07.2004, for the approval, which was approved by the World Bank in their letter Dt.2.09.2004 Accordingly an agreement was concluded with the consultants on 15.09.2004 at a cost of Rs.20,00,000/- for a period of two years. The consultants have submitted first report on 25.10.2004 covering agencies working in the area of value addition and bamboo based enterprises, who can be associated with for development of enhanced marketing of Bamboo. Further they have also submitted second report during March 2005 covering possible bamboo based products, Related Technologies, Technology Providers, Machinery manufactures, Markets and potential buyers of this product. The third and subsequent reports are awaited.

3.2.2.6. Consultancy on Impact Assessment (Environmental and Ecological):

TOR along with evaluation of the Technical Proposals to award this consultancy on single source basis to M/S.ENVID Group, Andhra University, Visakhapatanam at a cost of Rs.7,94,000/- were already forwarded to the World Bank through Government of A.P letter No.4835/FOR-III/2005-1, Dt.10.06.2005 for approval. World Bank in email Dt. 08.11.2005 has approved the proposal. Contract was concluded with M/s.ENVID Group on 28.11.2005 awarding the consultancy at a cost of Rs.7,94,000/- for a period of (14) weeks. The consultants have submitted draft report which is under examination.

3.2.2.7. Consultancy on Study of Socio Economic Status of Podu land Cultivators in VSS areas:

TOR for this consultancy was submitted to the Government of A.P in this office Ref.No. 34344/2005/PMU-II/IV, Dt.30.07.2005. Government have forwarded the same to the World Bank in Ref.No. 6799/FOR-III/2005-1, Dt.06.08.2005. World Bank has approved the TOR in E-Mail Dt.12.08.2005. Short list of the consultants was prepared by inviting proposal from various firms through a paper notification. Technical and Financial proposals from all the short listed firms were obtained with the last date on 5.10.2005. The proposals were evaluated and decided to award the consultancy to the highest scored firm i.e M/s. Samaj Vikas Development Support Organisation, Hyderabad for a cost of Rs.4,20,000(excluding service Tax). Contract was entered on 22.10.2005 for a period of (12) weeks. Consultants have started the work and submitted inception report on 31-10-2005.Further they have submitted draft final report also on 8.03.2006 which was forwarded to the World Bank for comments.World Bank in their e-mail dt 27-03-2006 have communicated certain comments.Final report incorporating these comments is awaited from the consultants.

3.2.2.8. Consultancy on Preparation of Sub Project for development of Tsunami Sensitive Areas in A.P:

TOR for this consultancy was forwarded to the World Bank through Government of A.P letter No.6728/FOR-III/2005-1, Dt.4.08.2005. The World Bank has approved the TOR in E-Mail, Dt. 29.07.2005.Technical evaluation report and proposal to engage consultants on this subject on single source basis was submitted to the Government in this office reference No.34345/2005/PMU-II/IV, Dt.13.09.2005. However , it is a very small consultancy, pending receipt of the approval from the Government contract was also entered with M.S.Swamynathan Research Foundation, Chennai on 29.09.2005 for an amount of Rs.5,00,000/- (excluding service Tax) for a period of one month. Consultants have submitted inception report on 25.10.2005 and Draft project report on 5.01.2006. The draft project report was verified and comments were sent to the consultants in this office reference even No., Dt.27.01.2006 for in corporation in final report which is awaited. The final report was also received from the consultant son 13.02.2006 which is submitted to the World Bank and Government for approval.

3.2.2.9. Consultancy on Impact Assessment (Institutional & Economical):

TOR along with the evaluation of the Technical Proposals to award this consultancy on single source basis to M/s. Centre for economic and social studies, Hyderabad at a cost of Rs.15,00,000/- were forwarded to the World Bank through Government of A.P, letter No.4834/FOR-III/2005-1, Dt.13.06.2005. As M/s. Centre for Economic and Social Studies Hyderabad is not ready to take up this consultancy another proposal was furnished to the World Bank in this office reference No.24808/2005/PMU-II/IV, Dt.10.11.2005. World Bank in email dt.14.11.2005 has approved the TOR . In this regard, a notification inviting expression of interest was issued on 25.11.2005. As on the last date i.e 5.12.2005, (8) Firms have submitted proposals out of which (6) Firms were short listed and RFP was issued to them with last date for receipt of Technical and Financial proposals on 19.12.2005.As on the last date only (3) firms have submitted Technical and Financial proposals which were evaluated and decided to award the consultancy to M/s. Development and Research Services Pvt., Limited, Secunderabad at a cost of Rs.11,60,000/-(excluding service tax). Accordingly a proposal was submitted to the Government in this office reference even No. Dt.26.12.2005.. Government have accorded permission in reference No.4874/For-III/2005-4, Dt.7.1.2006.. Accordingly a contract has been entered on 12.01.2006 for period of (14) weeks. The consultants have submitted draft report which is under examination..

3.2.2.10 Consultancy on study of Financial Management System in VSSs and their common enterprise groups and federations.

TOR for this consultancy was submitted to the Government and to the World Bank in this office Ref.No.49749/2005/PMU_II/IVdt 28-10-2005 for approval. The estimated cost of this consultancy is Rs.5,00,000/-. World Bank in email dt.14.11.2005 has approved the TOR . In this regard a notification inviting expression of interest was issued on 25.11.2005. As on the last date i.e 5.12.2005, (6) Firms submitted proposals out of which (5) Firms were short listed. RFP was issued to them with last date for the receipt of Technical and Financial proposals on 19.12.2005. As on the last date all the (6) firms submitted their Technical and Financial Proposals which were evaluated and decided to award the consultancy to M/s.Samaj Vikas Development Support Organisation, Hyderabad at a cost of Rs.3,99,000/-(excluding service tax). Accordingly a proposal was submitted to the Government in this office reference even No. Dt. 26.12.2005. Government have accorded permission in reference No.9416/For-III/2005-2, Dt.7.1.2006, and a contract has been entered on 12.01.2006 for a period of (14) weeks . The consultants have submitted draft report which is under examination.

3.2.2.11 Engaging of individual consultants as Tribal Development advisor in PMU

TOR for this consultancy was submitted to the Government and to the World Bank in this office Ref.No.49750/2005/PMU_II/IVdt 28-10-2005 for approval which is awaited. The estimated cost of this consultancy is Rs.10,00,000/-. World Bank in email dt.08.11.2005 has approved the TOR . In this regard a notification inviting expression of interest was issued on 25.11.2005. As on the last date i.e 5.12.2005 only (2) applications were received out of which (1)firm M/s. Development and Research Services Private Limited, Secunderabad was short listed. RFP was issued to them on 26.12.2005 with last date for receipt of proposal on 2.1.2006. As on the last date they have submitted proposal which was evaluated and recommended to award the consultancy for a cost of Rs.5,40,000/- plus other reimbursable amounts towards travel expenses, DA etc. Accordingly a proposal was submitted in this office reference even No. Dt. 16.01.2006 to the Government for approval. Government in reference No.477/For-III/2006-1, dt.1.2.2006 have accorded permission and a contract has been concluded with the firm on 04.02.2006 for a period of (18) months. The consultant has started the work and submitted reports for the months of Feb&March/2006. The consultant has also submitted draft report on Tribal Development Strategy and Action Plan which is under examination.

3.2.2.12 Engaging of individual consultants as Training advisor in PMU

TOR for this consultancy was submitted to the Government and to the World Bank in this office Ref.No.49816/2005/PMU_II/IVdt 29-10-2005 for approval. The estimated cost of this consultancy is Rs.20,00,000/-. World Bank in email dt.23.11.2005 has approved the TOR . In this regard a notification inviting expression of interest was issued on 1.12.2005. As on the last date i.e 12.12.2005, (22) Firms submitted proposals out of which (5) Firms were short listed. RFP was issued to them with the last date for receipt of Technical and Financial proposals on 5.01.2006. As on the last date only (3) firms submitted technical and financial proposals which were evaluated and finally decided to award the consultancy to M/s.Indian Institute of Bio Social Research and Development, Kolkata for a cost of Rs.10,98,000/-. Accordingly a proposal was submitted in this office reference even No. Dt. 21.01.2006 to the Government, and Government in reference No.559/FOR-III/2006-1, Dt.8.2.2006 have approved the proposal. Contract has been entered with the firm on 20.01.2006 for period of (18) months.The consultants have started the work and submitted inception report on 15.03.2006.

3.2.2.13 Consultancy on Study of Change Vegetative Cover and Forest Type in sample VSSs

In this office reference No.1978/2006/PMU-II/IV, Dt.16.01.2006 Government and World Bank were requested to approve the TOR and proposal to award this consultancy to M/s.NRSA, Hyderabad on single source basis at a cost of Rs.3,87,000/-. In the e-mail, Dt.23.01.2006 approval from the World Bank is received. Government in reference No.476/For-III/2006, Dt.1.2.2006 have also approved the proposals. Accordingly contract has been entered on 17.03.2006 with M/s.NRSA, Hyderabad for a period of two months at a cost of Rs.3,87,000/-. They have submitted a draft report which is under examination.

3.2.2.14 Forest Product Marketing Coordinator:

TOR along with proposals to engage consultants (3 Nos. @ of Rs.18,000/- pm for the balance project period) for this subject was submitted to the Government in this office Ref.No.26734/2005/PMU-II/IV, Dt.19.08.2005 to forward the same to the World Bank. Government have sought certain clarifications in Memo No.5591/FOR-III/2005-1, Dt.07.07.2005 and 5.8.2005. The required clarification was submitted in this office Ref.No.26734/2005/PMU-II/IV, Dt.25.07.2005 and 19.08.2005 respectively. Government in their reference No.5591/For-III/2005-4,Dt.26.09.2005 have again sought certain information which was submitted to the Government in this office reference even No.Dt.16.10.2005. Government in their letter dt 29-10-2005,have approved the proposal with a decision to publish National Level Notification for engaging marketing specialist. Accordingly a notification was issued on 18.11.2005. As on the last date i.e 30.11.2005, (3) applications, (1) from a Firm and other (2) from individuals were received. As it is not possible to compare Individuals with a Firm and the Individuals are not qualified enough it was decided to cancel the notification. Mr.Shasi Ranjan a fresh graduate from IIFM, Bhopal has been engaged for this task.

3.2.3. Consultancies in which contracts are to be concluded(pending at various stages)

3.2.3.1 Consultancy on Designing Methodology and Undertaking Forest Inventory in the state of A.P: - ToR for this consultancy has been approved by the World Bank on 14.04.2004. Proposals from various firms/organizations have been obtained by issuing a press note on 13.05.2004. These proposals were evaluated and short-listed. The short-list was submitted to the World Bank through Govt. of AP on 17.07.2004, for the approval. World Bank has approved the short-list on 08.10.2004. Accordingly, RFP has been sent to the short-listed firms inviting their technical & financial proposals before 15.12.2004. As on the last date technical proposals from only one firm i.e M/S ATREE, New Delhi was received and the other two short listed firms have informed that they are not submitting any proposals for the consultancy. The technical proposals so received evaluated in a meeting dated 16.12.2004 and the evaluation report was forwarded to the World Bank on 4.1.2005 through Government of Andhra Pradesh. World Bank has approved the evaluation report in their letter Dt.13.4.2005. Subsequently on opening of the financial proposals by the committee on 23.4.2005, it is observed that M/s.ATREE, New Delhi have quoted Rs.174.88 lakhs (excluding local taxes) for the consultancy which is very high compared to the estimated cost of Rs.54.00 lakhs. Hence the committee has recommended to reject the financial proposals submitted by M/s.ATREE, New Delhi. Accordingly a proposal has been submitted to the World Bank through Government of Andhra Pradesh in 17-5-2005 to approve the decision of the committee (i.e to reject the financial proposals submitted by M/s.ATREE, New Delhi) The World Bank technical mission visited during August 2005, have suggested to take up this work through IT wing of the Forest Department. Accordingly action is initiated to complete the work.

3.2.3.2 Consultancy on Protection and Management of Red sanders Forests in A.P: - TOR for this consultancy was approved by the World Bank on 26.04.2004. A press notification was issued on 08.06.2004. As on the last date (21.07.2004), (9) proposals were received form various firms/organizations for the short-listing. The proposals were evaluated by the Committee in a meeting Dt.10.08.2004 and opined that all the proposals received are not technically suitable to take up the study and decided to re-notify in the press inviting proposals afresh. Accordingly, a notification was published in leading News Papers on 27.08.2004. As on the last date (20.10.2004), (13) proposals were received. The proposals so received were evaluated and short-listed by the Committee in a meeting Dt.10.11.2004. The short-list was submitted to the World Bank for approval through the Government of Andhra Pradesh in letter-dated 11.01.2005. But during the visit of the World Bank supervision mission during march 2005 the procurement specialist informed that the short list sent for this consultancy could be approved since it was a consolidation of individual consultants and firms and as such advised to cancel the process and to issue a fresh notice for expression of interest calling fresh proposals and to take further action. Accordingly a notification was issued calling fresh proposals for the short list with the last date on 2.5.2005. But no proposals were received by the last date. Hence another notification was issued with the last date on 30.6.2005. As on the last date (9) proposals were received. The proposals so received were evaluated and short listed (4) firms. The short list along with the draft RFP was forwarded to the World Bank for approval through the Government of AP on 20-8-2005. World Bank in e-mail dated 08.11.2005 has approved the proposal. In this regard RFP requesting Technical and Financial proposals was issued to the short listed firms. As on the last date i.e 10.12.2005 only one Firm i.e M/s.Green Action Team, Madanapally, Chitoor District submitted proposals. Their technical proposal was evaluated and found to be qualified. Hence their Financial proposal was also opened on 20.12.2005, evaluated and decided to award the consultancy to them at a cost of Rs.7,95,000/-(excluding service tax). In this office reference even No., Dt.29.12.2005 proposal was submitted to the Government with request to forward the same to the World Bank for approval. Approval is awaited.

3.2.3.3. Consultancy on the implementation of the Pest Management Plan under

APCFM Project:

TOR for this consultancy was already approved by the World Bank in their letter Dt.03.06.2005. Technical evaluation report along with a proposals to award this consultancy on single source basis to M/s. Centre for Environment Concerns, Hyderabad was submitted to the Government of A.P in this office Ref.No.17082/2005/PMU-II/IV, Dt.29.07.2005 for onward transmission to the World Bank for approval. Government have forwarded the proposal to the World Bank in reference No.5557/For-III/2004-6, Dt.30.12.2005. World Bank in their e-mail Dt.23.01.2006 have informed that as the total cost of the consultancy is below the threshold limits for prior review, it is not need to obtain approval from the World Bank.Further action will be taken on receipt of the approval from the Government.

3.2.3.4 Consultancy on the Study of Research Programs and Practices in the A.P

Forest Department:

TOR for this consultancy was submitted to the Government of A.P in this office Ref.No.26742/2005/PMU-II/IV, Dt.24.08.2005 to forward to the World Bank for approval.. The estimated cost of the consultancy is Rs.5,00,000/-. World Bank in the email dt.08.11.2005 has approved the TOR.But there is no proper response inspite of issue of notification thrice on 18.11.2005,3.01.2006and on 31.01.2006.Hence short list of the firms could not be prepared and further action could not be taken. Further, threshold limits prescribed in the project agreement to engage consultants on single source basis has already reached.Hence,as there is no other alternate further action regarding the engage consultants on this subject has been dropped at this stage.

3.2.3.5 Consultancy on Rationalization of Forests Schedule of Rates:

TOR for this consultancy was submitted to the Government in this office Ref.No.40478/2005/PMU-II/IV, Dt.01.09.2005 to forward the same to the World Bank for approval the estimated cost of this consultancy is Rs.20,00,000/-. In this regard, Government in their letter dt 14-10-2005 have requested to incorporate one expert from PWD/Irrigation/PR Engineers in the team of the consultants and to forward the revised TOR directly to the World Bank for approval. Accordingly a revised TOR was forwarded to the World Bank on 20.10.2005 for approval. World Bank in email dt.14.11.2005 has approved the TOR. In this regard, a notification inviting expression of interest was issued on 25.11.2005. As on the last date i.e 5.12.2005, (9) Firms submitted proposals out of which (6) Firms were short listed. RFP has been issued in this office reference even No.Dt.18.01.2006 with last date for receipt of technical and financial proposals on 15.02.2006.As on the lost date only three firms have submitted proposals which were opened, evaluated and finally recommended to award the consultancy to M/s Development and Research Services Pvt.Ltd, Secunderabad for an amount of Rs16,35,300/-.Accordingly Government were requested in this office ref. even No.dt 24.03.2006to approve the proposal which is awaited.

3.2.3.6 Consultancy on Development & Implementation support for accessing Carbon Revenue under Clean Development Mechanism - Afforestation:

In this office reference No.3150/2006/PMU-II/IV, Dt.22.01.2006 Government and World Bank were requested to approve the TOR and to engage consultants following Quality Based Selection Procedures at an estimated cost of Rs.30.00 lakhs. Government in reference No.651/For-III/2006-1, Dt.3.2.2006 has addressed the World Bank with a request to approve the TOR. World Bank in their e-mail Dt.15.02.2006 has approved the TOR. In this regard a paper notification inviting applications for short listing has been issued on 23.2.2006 with the last date for receipt of the applications on 10.03.2006. As on the last date 16 firms have submitted applications out of which five firms are short listed. The shortlist along with draft RFP has been submitted to world bank through Government letter Dated: 04.04.2006.for approval which is awaited.

3.2.3.7 Consultancy on Development & Implementation support for accessing Carbon Revenue under Clean Development Mechanism – Agro Forestry:

In this office reference No.3150/2006/PMU-II/IV, Dt.22.01.2006 Government and World Bank were requested to approve the TOR and to engage consultants following Quality Based Selection Procedures at an estimated cost of Rs.30.00 lakhs. Government in reference No.651/For-III/2006-1, Dt.3.2.2006 has addressed the World Bank with a request to approve the TOR. World Bank in their e-mail Dt.15.02.2006 has approved the TOR. In this regard a paper notification inviting applications for short listing has been issued on 23.2.2006 with the last date for receipt of the applications on 10.03.2006. As on the last date 5 firms have submitted applications out of which Three firms are short listed. The shortlist along with draft RFP has been submitted to world bank through Government letter Dated: 04.04.2006.for approval which is awaited.

3.2.3.8 Consultancy on Placement and support Overseas Trainings and study tours under APCFM Project.

In this office reference No.4426/2002/PMU-I/3, Dt.18.01.2006 Government and World Bank were requested to approve the TOR and to engage consultants following Quality Based Selection Procedures. Estimated cost of consultancy is Rs.136.10 lakhs. Government in the lertter Dt.18.4.2006 has addressed the World Bank for approval of the TOR which is awaited.

4. Financial Management, Disbursements and Audit:

4.1 Project Budget and Expenditure (Upto 31-03-2006)

4.1.1 Annual Work Plans: The total outlay of the project is US$ 127.12 Million equivalent to Rs 653.971 Crores. As detailed in the PIP following is the phased programme and actual expenditure

(Rs. in Millions)

Year	Targeted expenditure	Actual Expenditure	Remarks
2001-2002 PPF	-	12.359
2002-2003 PPF	-	6.880
Total PPF	-	19.239
2002-2003 (Year-1) PE	996.845	87.443
2003-2004 (Year-2) PE	1567.210	1189.410
2004-2005 (Year-3) PE	1867.269	1144.817	Including 1.94 reconciled amount for which claim has to be sent.
2005-2006 (Year-4) PE	1357.874	1027.445
Total PE	5789.198	3449.117
Total PE & PPF	5789.198	3468.356

It can be seen from the above that the cumulative expenditure so far has been 60 % of the targeted expenditure, the major reason for the short fall is delay in project approval and its launch. However the deficit will be made good in the remainder of the Project period.

4.1.2. Budget releases and expenditure: The GOAP is fully committed to implement the Project successfully. However delay in Project approval and its launch further made the releases delayed and consequently the expenditure was incurred on the lower side. Following table gives details of budget released by the GOAP so far:

(Rs. in Millions)

Year	Target expenditure as per PIP	Budget provision	Budget released	Expenditure incurred
2001-02 (PPF)	-	350.000	13.000	12.359
2002-03 (PPF)	-	-	-	6.880
Total PPF	-	350.000	13.000	19.239
2002-03 (Year 1)PE	996.845	395.000	173.273	87.443
2003-04 (Year 2) PE	1567.210	1467.200	1283.800	1189.410
2004-05 (Year 3) PE	1867.269	1700.000	1263.750	1144.817
2005-06 (Year 4) PE	1357.874	2069.786	1300.000	1027.447
Total PE	5789.198	5631.986	4020.823	3449.117
Grand Total	5789.198	5981.986	4033.823	3468.356

It can be seen from the above that as against the targeted expenditure of Rs. 5789.198.Millions, the budget provision, budget releases and expenditure incurred were 97%, 70% and 60%, repetitively. The budget actually released works out to 71% of the budget provision and the actual expenditure is 86.25% of the actual release of funds. The total expenditure is Rs.3468.356.M.

4.2. Financialmanagement and disbursements:

4.2.1.Financial management System: A detailed functional manual on financial management under the Project is a part of the PIP. Financial Management under the Project is being undertaken strictly in accordance with the prescriptions of this manual and the agreed covenants and thresholds. To facilitate accurate and efficient book keeping at PMU level and implementation level (in Circle, Division and Range Offices) an exclusive module on financial management has been developed in the Forest Management Information System and is operational through out the Project area since Project launch. This module ensures adherence of reimbursement limits of various categories of expenditure budget releases and annul work programme. All financial reports required for monitoring project performance can be generated form this module. Details of implementation status of this module have been given in para 2.2.5 dealing with FMIS. At the VSS level also simple financial management and accounting manual has been developed and is in use. This manual includes formats of books of accounts (cash book, muster registers, products received register, products disposal register etc.,) required to account for all revenues generated and expenditures incurred, formats of periodic financial reports required to be submitted to APFD and requirements of reporting to the community (like display of summary of finances in public etc.,).

4.2.2.Reimbursement claims and disbursements:- The total outlay of the Project is US$ 127.12 Million. Out of this the share of IDA is US$ 108.91 Million (85.50 Million XDRs) and that of the GOAP is US$ 18.91 Million. Following are the reimbursements claimed and received since inception of the project till the end of March 2006.

(Rs. In Millions)

Period	Expenditure	Reimbursement claimed	Reimbursement received	Balance
2001-2002 PPF	12.359	11.727	11.727
2002-2003 PPF	6.880	6.520	6.520
Total PPF	19.239	18.247	18.247
2002-2003 (Year-1)PE	87.443	74.446	74.446
2003-2004 (Year-2) PE	1189.410	1033.213	1033.213
2004-2005 (Year-3) PE	1144.817	884.874	884.874

2005-2006 (Year-4) PE	1027.445	904.037	627.002	277.035
Total PE	3449.115	2896.570	2619.535
Grand Total	3468.356	2914.817	2637.782	277.035

The category wise reimbursement details of PPF and Project expenditure from 16-06-2002 to March,2006 are as follows.

(Rs. in Millions)

Period of claim	Category of expenditure	Expenditure incurred	Amount claimed	Amount reimbursed	Balance to be reimbursed
Project Preparation Fund	Works	4.302	3.872	3.872
	Goods	2.808	2.246	2.246
	Studies and Consultancies	5.873	5.873	5.873
	Training	6.256	6.256	6.256
Sub Total (A)		19.239	18.247	18.247
Project expenditure from 16-06-02 to March 2006	Forestry Operations and Works	2354.626	2118.205	1919.882	198.323
	Civil Works	213.922	146.286	131.223	14.878
	Goods and Equipment	117.866	106.895	103.355	3.540
	Training Workshops and Study Tours	270.553	270.147	243.378	26.769
	Consultancy services	22.238	17.868	16.047	1.821
	NGO Support	119.594	119.324	105.546	13.778
	Operating Costs	318.451	117.846	99.919	17.927
Total PE		3417.350	2896.571	2619.535	277.035
Advance pending		29.821	0.000	0.000	0.000
Reconciled amount for which claim has to be sent		1.940	0.000	0.000	0.000
Total PE (B)		3449.111	2896.571	2619.535	277.035
Grand Total (A+B)		3468.356	2914.818	2637.782	277.035

4.2.3. Review of disbursement limits and thresholds (in US$): Following table gives details of disbursement limits and disbursement made towards retroactive funding and Project expenditure.

( In Millions $ )

Category of expenditure	Disbursement limit	Amount Disbursed	% of Disbursement
Forestry Operation and Works	63.730	47.655	78
Civil Works	5.850	6.546	106
Goods and Equipment	9.830	2.429	25
Training Workshops and Study tours	2.770	6.918	249
Consultancy services	10.890	0.413	3
NGO Support	6.860	2.723	40
Operating Cost	4.710	2.871	61
PPF	1.500	0.375	25
Unallocated	2.060		0
Total	108.200	69.930	65

(Rs. In Million)

Category	Procurement method	Agreed limit	Achievement by March -2006
Goods	ICB	157.389	39.150
	NCB	23.540	25.551
	NS	360.708	89.176
	DC	9.578	278.490
Works	CP	3643.350	34.134
	FA	554.818	7.716
	NCB	66.240	629.092
Consultancies	QCBS	188.956	2032.578
	Others	921.473	293.791
Operating Costs		613.720	3417.362
Total		6539.772	3447.183
Reconciled Claim			1.940
Add PPF			19.239
Grand Total			3468.362

4.3. Status on Audit:

4.3.1. Audit Certificate for the year 2001-2002

The Principal Accountant General Andhra Pradesh. Hyderabad while certifying(February,2004) an expenditure of Rs.12358,600/ for the year 2001-2002, pointed out that there was an excess reimbursement claim of RS.49,214/ due to erroneous categorisation of expenditure under works and Training in two units (Divisional Forest Officer(T) Hyderabad and A.P. F.A. Dulapally) instead of Goods and Works. This excess reimbursement of Rs.49214/- had already been adjusted in reimbursement claim NO.17 dt.1.6.2004 for the period from 1.4.2003 to 31.12.2003. Hence no objection pertaining to the Audit certificate for the year 2001-202 is outstanding.

4.3.2.Audit certificate for the year 2002-2003.

The Prl.Accountant General, Andhra Pradesh. Hyderabad while certifying (February,2004) an expenditure of Rs.9,43,23,300/- for the year 2002-2003, pointed out that there was an excess reimbursement claim of RS.2,98,608/ in two units (D.F.O.(T) Hyderabad and AP.F.A. Dulapalli) due to erroneous categorisation of expenditure under Training and works instead of Works, Goods, IOC & Civil Works. This excess claim of RS.2,88,608/- had already been adjusted in the Reimbursement claim No.17 dt.1.6.2004for the period from 1.4.2003 to 31.12.2003. Hence no objections pertaining to the audit certificate for 2002-2003 is awaiting settlement.

4.3.3.Audit certificate for the year 2003-2004

The Prl.Accountant General, Andhra Pradesh. Hyderabad issued the Audit Certificate for 2003-04, during December,2004, for an expenditure of Rs.117,70,88,000/ in whilch he disallowed an expenditure of Rs.2,32,09,200/-in 19 objections.

4.3.3.1.Details of paras dropped: Based on the replies furnished in February,2005, six paras aggregating to a monetary value of Rs6,65,529 were dropped.

4.3.3.2.Paras dropped subject to verification. Another four paras aggregating to a value of Rs 8,00,066 were also dropped subject to verification of the replies in the next local audit inspection of the division, of Karimnagar (T) East & West, DFO (T) Khammam and S.S. Hyderabad. During the visit in Oct/Nov/05 of the Audit team for certification of the expenditure for the year 2004-05, further documents were furnished to the Audit team in November-2005 for their verification with a request to drop the paras finally. As no reply has been received by March-2006. Prl. Accountant General has been reminded. These objections are treated as settled finally.

4.3.3.3.1 Paras agreed in Principle for settlement. One more objection for Rs 18.230 Lakhs on Divisional Forest Officer (T) Kadapa on execution of Tending and Cultural Operations in excess of Micro Plan provisions has also been agreed in principle, for dropping basing on the reply furnished in February-2005. Further documents showing the revision of Micro Plans were also furnished to the Accountant General’s, audit team during February-2006. Reply is awaited from the Accountant General. He has been reminded. Thus this objection also is treated as settled finally.

4.3.3.3.2.Two more objections for a value of Rs 175.00 Lakhs, were raised for treating the advances made to APIIC as expenditure.

This comprises of Rs 115.00 lakhs advanced by Divisional Forest Officer Hyderabad and Rs. 60.00 lakhs by APFA Dullapalli to APIIC. Both these amounts were already deducted in claim No.25 dated 20-12-2004 both from expenditure of the Project and also reimbursement claims. When this was reported to Accountant General, in February-2005, the Accountant General, replied that the paras would be considered for dropping at the time of issuing Audit Certificated for the year 2004-05. When the Audit certification team visited during Oct-Nov-2005, they were requested to drop the para. So far no reply has been received. The Accountant General, has been reminded. Thus these two objections also are to the treated as settled finally.

4.3.3.4.1 Paras awaiting settlement:-The above position in effect would show that six paras remain unsettled for a value of Rs 24,20,605 which mostly pertain to construction of F.R.O. Quarters (Civil Works). The paras outstanding and the replies furnished are as below.

1. DFO Chittoor (West)	FRO Quarters at Chittoor against Project guidelines.	Rs 5,00,000
2. DFO (T) Nellore	FRO Quarters at Nellore (Vengal Raonagar against Project guidelines.	Rs 4,92,000
3. CF Nizamabad	Construction of FRO Quarters (two) at Nizamabad and one at Medak. against Project guidelines.	Rs. 13,43,983
	Total	23,35,983

It was commented by the Accountant General , that under the Project guide lines, the construction of FRO Quarters is permissible only in remote areas, where infrastructure is not available. Since the above Quarters, were constructed at the head quarters of the divisions, the expenditure did not qualify for reimbursement.

Reply:- The Accountant General. was replied in February-2005 that the Construction was taken up at the head quarters of the above Range offices, to serve as Office-Cum-Residence, where adequate infrastructures was not available and instead of constructing two separate building (i.e) for office & residence, a single building was constructed. It was also apprised to the Accountant General, that the Quarters, at Medak and Nizamabad were to be constructed taking into account the extremist problems on the ground and also safety of the buildings. All these Quarters were constructed in the premises of Government offices where infrastructure is not available and also for facilitating surprise raids during nights with the other forest staff. Since as per para 8.4.2. of PIP Vol-I non- availability of infrastructures is one of the factors for constructing residential Quarters, the Construction is justified.

The Compulsions in constructing the Quarters at the above places, have already been brought to the notice of the World Bank with a request to approve the same (Vide P.C.C.F Lr. Dated 25-06-2005). It is therefore requested to approve these constructions, so that the paras could be dropped finally.

4.3.3.4. 2 Expenditure on upgradation of V.V.K at Paloncha- Rs 43,282

Gist of the para :- The Accountant General objected to an expenditure of Rs 43282 on upgradation of training center (V.V.K) at Paloncha stating that the upgradation of Training Centre involving Civil Work is permissible at Forest Academy Dullapalli and training centers Yellandu, as per Appendix XIV of PIP.

Reply:-It was replied to the Accountant General that the expenditure on Vana Vignana Kendram (V.V.K) is permissible as per para 4.4.3 of PIP VOL.I, read with para 4.4.3.2 ibid, which provides for development of infrastructure like drinking water facility approach roads village sanitation, drainage, Community Hall, etc., as a part of community Development. The V.V.K. is only a multipurpose Community Hall. The audit certification team which visited the P.C.C.F office in Oct.Nov-2005 was also apprised of the above position in 11/2005, we are yet to hear from the Prl. Accountant General.

4.3.3.4.3 In eligible expenditure of Rs 3,570 on Study Tour of V.S.S. members D.F.O(T) Kamareddy.

Gist of the Para :-

The Prl. Accountant General observed that, a Study Tour within the state was conducted for 50 members including 7 Non- staff members. The proportionate expenditure on non- staff members working out to Rs 3,570/- was disallowed from expenditure.

Reply:-The amount was recovered from the salary of the concerned person vide Token no 4955 Dt 7-03-2005 and the Prl. Accountant General was requested to drop the para . Reply is awaited from the Prl. Accountant General.

4.3.3.4. 4 Divisional Forest Officer Kamareddy – Digging of bore wells at Kamareddy Divisions office under Capacity Building of Communities and NGOs.

Gist of the para:-The Accountant General objected to an expenditure of 37,770 on sinking of bore wells in division office premises under Capacity Building of Communities and NGOs, stating that the above activity comprises of training Work-Shops seminars etc., but does not include sinking of bore well.

Reply:-It was replied to the Accountant General that the bore well was drilled to provide water to the V.S.S. members, NGO & C.E.W. & staff trainees. As per para 4.4.1.1.3 of PIP Vol-I training programmers arranged at Range / Division level in the premises of Forest Range / Division office complexes require facilities like training equipment, furniture etc. All these places will be upgraded with the support of the project and para 4.4.1.2 of PIP makes the NGOs also a part of Project implementation. Hence the expenditure which rightly debited to the project. This position was also explained to the audit party who visited Prl. Chief Conservator of Forests office during 10-11/05. The Accountant General’s reply is awaited.

4.3.3.4.5. Excess Reimbursements:- The Accountant General has pointed out that there was an excess reimbursement of Rs 2.68 Lakh due to erroneous categorisation of expenditure under NGO Support instead of IOC in two units (Divisional Forest Officer (T) Vizianagaram and Divisional Forest Officer (T) Srikakulam). This excess claim of Rs 2.68 lakh has been deducted in claim No. 26 Dt 18-01-2005.

Abstract of status report pertaining to Audit Certificate for 2003-04 is as follows:-

S. No.	Category	No. of paras	Amt. Involved
1	Total disallowed	19	2,32,09,200
2	Dropped	6	6,65,529
3	Dropped subject to verification	4	8,00,066
4	Agreed in principle for dropping	3	193,23,000
5	Paras awaiting settlement which already replied to A.G.	6	24,20,605

4.3.4. Audit Certificate for 2004-05

While certifying an expenditure of Rs 114,48,16,000/- in November- 05 for the year 2004-05, the Prl. Accountant General, disallowed Rs 12,43,43,000 from the project expenditure under the following five categories of reimbursement.

In lakhs of Rs.

1. Forestry operations 68.73

2. Civil Works 846.83

3. Training and Workshops 68.98

4. Incremental Operating Costs 13.16

5. Goods and Equipment 245.73

1243.43 Lakhs

The objections raised by the Prl. Accountant General under each category of reimbursement have been examined and the following replies furnished.

4.3.4.1. Forestry Operation: -

4.3.4.1.1.Execution of Tending and Cultural Operations – booking of expenditure for ground stock in excess of that found in enumeration –DFO (T) Kadapa Rs. 3.86 Lakhs.

Gist of the Accountant General’s Para:- The APCFM Project is under implementation in Kadapa Division. The objective of the Forest management treatment is to improve the productivity and sustained yield of forest under the management of VSS using silvicultural practices. The basic management unit for silvicultural treatment is the forest area under VSS. The basis for silvicultural treatment will be the individual Micro Plan. For each VSS base line survey will be carried out, as part of micro plan to assess the forest condition and stocking and they will be a key for determining management objective and treatment practices. Management prescription and silvicultural treatments for each forest type would be agreed with VSS Members. Before preparing any Micro Plan, it is essential to have a correct assessment of status of forest growth in the forest areas. For this purpose field inventory is required to be taken up. A sampling intensity of 1% should be followed for assessing growth and field statistics by taking sample plot of 0.1 Ha. Tree species growing in the sample plot should be enumerated for each plot.

On a verification of estimates and baseline survey reports of 16 VSS, it was revealed that the ground stock enumerated (as per Form- B) is ranging from one to 21 in a sample plot. Accordingly if maximum number is taken into consideration as 21, the total number of trees comes out to 210 per Ha. In execution of tending and cultural operations in degraded forest area a rate of Rs 392.30 per ha was provided for having 100-250 stumps/ stems vide FSR items 5.2.03 of 2003-04, where as the division has adopted a rate of Rs 705.60 and Rs 766/- per Ha and expenditure of Rs. 18,66,312 and Rs. 8,34,940 was incurred for the years 2003-04 and 2004-05 respectively. Adoption of higher rates which were applicable to the area having 200-500 stumps/ stems per ha to the area having 100-250 stumps/ stems per Ha has resulted in excess expenditure of Rs12,14,974/- as detailed below.

Year	Area Ha	Rate adopted per Ha Rs.	Expenditure	Rate to be adopted	Expenditure Rs.	Difference
2003-04	2645	705.60	1866312	392.30	1037634	828678
2004-05	1090	766.00	834940	431.00	469790	386296
				Total		1214974

Similarly an amount of Rs 2842156/- was also incurred on the same operation at the rate of Rs 705.60 per ha, on 4027 Ha. in respect of 31 VSS for which the detailed base line survey reports were not made available to audit. On the same analogy the excess expenditure on the 4027 Ha. worked out to Rs.1261659 (705.60-392.30 =313.30 X 4027)

Reply:-The Prl. Accountant General (Civil Audit) in his D.O. letter No. FCS / D.P. cell /2005-06/17 Dt 21.4-2005 communicated a Factual Note on similar expenditure of Rs. 33.14 Lakhs in Medak and Kadapa (T) divisions for possible comment in Comptroller and Accountant General’s report for the year ending 31-03-2005. A justification report for this was sent to Prl.Accountant General. in Prl. Chief Conservator of Forests Ref. No. 19048/2005/N2,Dt 24-05-2005. The same reply holds good even for this. The justification report given to Prl. Accountant General, is reproduced below.

The regenerated young crop in a forest requires a good deal of attention before it is safe from serious damage by woody weeds and climbers, Even after this, the new crop will not develop satisfactorily without periodical skilled selection of the stems to be retained for further growth to ensure their optimum development.

It is necessary to understand the definition of tending and cultural operations. Tending is defined as operations carried out for the benefit of a forest crop at any stage of its life between the seedling and mature stages. It essentially covers operations on the crop itself and on the competing vegetation and includes weeding cleaning thinning and climber cutting. The primary concern of tending is that of providing and regulating growing space available to individual trees to ensure their rapid development and establishment and closing of their canopy as early as possible and also that of the crop as a whole on the desired lines. As a tree crop requires attention of this kind many times between regeneration and maturity, it follows that tending operations must cover annually a much bigger area than the regeneration area. At least three and often five or more tending operations will traverse a compartment between its establishment as a young crop and its maturity. Further weeding and cleaning in natural and artificial regeneration also form part of tending operations in the seedling stage in a forest crop involving removal or cutting back of all weeds. The nature of tending and cultural operations depends on site specifics.

Similarly a silvicultural system is defined as a method of a silvicultural procedure worked out in accordance with accepted sets of silvicultural principles by which crops constituting forests are tended, harvested and replaced by new crops of distinctive forms. It is planned treatment applied to a forest crop throughout its life so that it assumes a distinctive form and is a continuous activity not only in its early stages but also throughout its life. In view of the above it is clear that tending and cultural operations have to be carried out from the stage of seedling itself.

The Form-B prescribed for enumeration of tree growth clearly lays down that all trees in the sample plot should be enumerated. For this purpose trees above 30 CMs growth at breast height of 1.37 meters from ground level over bark and dead trees having utility of less than 70 % are to be enumerated. The inventory form -B is meant for enumeration of trees of the above specifications only. The notes below Form-B: Enumeration of tree growth at page158 of PIP Vol-I and the Inventory Form-B. Enumeration of trees should not be read in isolation of each other and they should be read together . Such a cohesive reading would lead to the inevitable conclusion that the Form –B is meant for the trees at above 30 CMs girth at breast height of 1.37 meters.

Further the forest inventory is meant to record the status of the forest before taking up the treatment of the area and also the growth of the already existing trees and the regeneration status after the treatment. While carrying out tending cultural operations all the stems/stumps irrespective of their growth have to be necessarily taken into consideration. The No of stems / stumps subjected to tending and other silvicultural systems will be definitely more than those enumerated as trees and Form-B where trees of more than 30 CMs girth at breast height of 1.37 Meters are taken into consideration. The Divisional Forest Officer, Kadapa produced to the Audit Party a copy of the sample plot laid by Forest Range Officer Kadapa according to which the number of trees above and below 30cms girth put together, worked out to 920 per Ha.

Further inventory was done between December-2002 and March –03 where as the cultural operations were taken up between January-04 and March –05 after a gap of 1 year during which period, there is bound to be improvement in regeneration status and also the girth status.

The Form-B does not cover seedlings and young crop. It provided for the following measurements which would establish clearly that the young plants were left out of enumeration.

1. Girth at breast height (in CMs)

2. Clear bole height (In meters) Bole means length between the base of a tree upto the beginning of the regular crown.

3. Total canopy height ( In meters) (Canopy means the total height of the tree including the crown portion and clear bole).

If the contention of the Prl.A.G. Civil Audit in the factual note were to be conceded, tending and cultural operations are to be carried out to only trees of specified breast height, bole height and canopy height, leaving the tender and young crop untended and uncared for leading to disastrous management of forests. As already stated above tending means intervention from seedling stage to mature stage. If the young crop is not treated the purpose of the tending and cultural operations will get defeated.

It may also be mentioned in this connection that out of 35737.6 Ha under the management of the VSS, only 14668.15 Ha working out to 42% of the area under VSSs (2003-2004-10078.49 Ha+2004-2005-4590.36 Ha )was found suitable for taking up the tending and cultural operations. Hence there is no excess expenditure as contended by the Prl. Accountant General.

4.3.4.1.2. Expenditure of Rs 7.67 Lakhs on Tending and Cultural Operations carried

out in area more that that targeted in Micro -plan DFO (T) -Kadapa.

Gist of the Para:- As per the PIP (Vo.1) of APCFM, the basis for silvicultural treatment will be the individual Micro Plan for each VSS Baseline surveys will be carried out as per micro plan preparation to assess the forest condition and stocking and they will be key to determining management objectives and treatment practices. The Micro plan and Annual Plans clearly list out various forestry and non-forestry interventions in each VSS and their phasing along with physical targets and financial forecasting, Annual plans prepared basing on the phasing of activities stated in the Micro- plans and with reference to actual budgetary allocations. Budget for expenditures on works under the project is allotted based on components proposed in the annual work plan.

It was observed from the Micro Plan, Sanctioned estimates and the work registers that the divisions executed tending and silvicultural operations under APCFM during 2003-04 and 2004-05 without considering the physical and financial targets fixed in micro plans, as per scheme guidelines and achieved 5741 Ha against 2215 Ha. proposed for the entire project period.

The higher achievements of physical targets of 5741 Ha as against 2215 Ha proposed in the Micro Plans has resulted in excess expenditure of Rs.25,89,709/- on Tending and cultural operations and 259% excess achieved over the proposed physical target. Thus the implementation of the project was not in tune with the guidelines contained in the PIP.

In reply the department stated that based on the VSS Action Plan for the years, consolidated action plan has been prepared and submitted to higher authorities for implementation. After approval of Annual Work Plan and release of budget the works will be taken up keeping in view the VSS action plan and micro plans. The Micro plans are also to be revised keeping in view the past achievements and activities to be proposed for the future years. But the objection of Audit that the tending and cultural operations taken up were not as per the approved Micro Plans, is true but these micro plans have to be revised. Further based on the Annual Work Plans, the principal Chief Conservator of Forests, Andhra Pradesh Hyderabad has released the budget and with in the budgetary provisions, work was got executed.

The funding by the World Bank under APCFM Project was based on the approved Micro Plan and the deviation if any to the micro plans requires revised approval of World. Bank. Since the revision of Micro Plans was not done the higher achievement 5741 Ha against 2215 Ha incurring Rs25,89,709 is irregular. The same may be got regularized by obtaining approval of World Bank to the revised Micro Plans. Mean while, the amount involved (Rs.25.89 lakhs) will be disallowed while issuing Audit Certificate for the year 2003-04 (Rs.18.23 lakhs) and 2004-05 (Rs.7.66 lakhs).

Reply:- This objection is similar to the one raised under item 6 of Forest Operations in Annexure-I to the Audit Certificate for the year 2003-2004 issued in Prl. A.G Letter No.EAP/Cell/WBP/APCFM/2004-2005/435,Dt30-12-2004. In PCCF D.O.Ref.No.216 /05/PMU/III/2,dt 28-02-2005 addressed to Sri. A.Srinivasa Kumar IA&AS 1/C Prl. A.G (Civil Audit ), it was replied that the Micro Plans are vision documents prepared through participatory process laying down strategies for forest treatment and other developmental activities. The physical and financial targets/ projections are tentative and are liable for change based on site specific planning which will be done while preparing annual plants and estimates. Further updation of microplans is an activity permissible under G.O.MS.No.13, E.F.S.&T (For. III) Department Dt 12-02-02 (item XII f). This reply was accepted in principle and the Prl. A.G wanted the revision and updation of microplans. The total area subjected to Tending & Cultural Operations under APCFM Project was 5741 Ha as against 2215 Ha proposed in the Micro Plans, the expenditure for 2004-05 being Rs 0.766 Million. These Micro Plan have already been revised and approved by the DFO (Vide DFO`s Ref.No.88/2005/A2, Dt 18-10-2005. This has been already intimated to the Prl. Accountant General. in Prl.CCF Lr.No.216/05/PMU-II/2,Dt 14-03-2006 with a request to drop the para.

The objection in question being similar to the one raised in 2003-04 Audit Certificate, this also will be got dropped.

4.3.4.1.3. Excess expenditure of Rs 3.92 Lakh due the to adoption of incorrect

machinery rate in execution of continues Contour Trenches DFO (T) Medak.

Gist of the para:- The machinery rate for earth work excavation should be adopted for more than 1000 Cmt. Quantity as per G.O.M.s.No.134 Dt 26-11-2002 (irrigation and CAD). Further in G.O.Ms No.34 dt 29-12-2003 of Finance Works and Projects department, the machinery rate for earth work excavation in all soils up to SDR was fixed at Rs.16.24 Cum.

During the years 2003-04 and 2004-05 the division had carried out the work of digging of continuous contour trenches (CCTs) with machine under APCFM and RIDF IX scheme. It was observed in audit that the division adopted a higher rate of Rs 17.40/- per cum towards earth work excavation i.e digging of (CCT) with machine as against approved rate of Rs 16.24/- per cum and incurred an expenditure of Rs 35,82,165/- (up tp 11/04) in 75 works. The excess expenditure of per cum comes to Rs 1.16 (Rs 17.40-Rs 16.24). Thus the in correct adoption of higher rate resulted in excess expenditure of Rs 2.,36,811/- detailed in the annexure (The works sanctioned and executed from Jan-2004 were only listed in the annexure B). Further under forest fire management the division during the year 2004-05 executed the works of digging the CCTs with machine of size 1.5 + 1.00/2 x 0.50 as a fire line under APCFM scheme. The earth work involved in those trenches worked out 0.625 cmt for 1 (one)RMT. During scrutiny of the estimates, however, it was noticed that the division adopted a rate of Rs.10.87/RMT (Rs. 17.40 X 0.625) as against Rs 10.15 RMT (Rs 16.24 x 0.625) and accordingly payments were made to the petty contractors (up to 11/04). The resultant difference is Rs 0.72 / RMT (Rs 10.87 Rs 10.15). As a result the division incurred an excess expenditure of Rs 3,02,241 on digging of CCT on fire lines as detailed in the annexure.

Thus non observance of the machine rates as provided in the G.O.Ms.No.34, Dt 2912-2003 resulted in total expenditure of Rs 5,41,052 (annexure A&B) on CCTs.

Reply:-An expenditure of Rs 0.392 Million was disallowed from the expenditure under APCFM for the year 2004-05 in respect of Forestry Operations stating that the division had adopted Rs 17.40 per cum instead of Rs 16.24 prescribed in the IDSSR for 2004-05 for exaction of C.C.Ts with machinery under APCFM.

In this connection, it is stated that as per circular No.3 /2002 issued by PCCF, for earth work done by machines like Proclains, the rates approved by the District Collector are to be followed. This circular was issued keeping in view the large scale earth work item like CCTs, staggered trenches etc which are under implementation under different schemes like Neeru-Meeru –etc.,

In respect of excavation of CCTs by machines, the Collector approved a rate of Rs 23.50 Per cum and the CF Nizamabad advised the DFOs to restrict the expenditure to Rs 19/- cum where as the division incurred Rs 17.40/- only per cum. In this case the DFO implemented the orders of PCCF. Yet, this expenditure was objected to by the A.G. In fact the DFO’s action in allowing only Rs.17.40 cum as against Rs 19/ cum approved by Conservator of Forests and Rs 23.40/- by the District Collector in effect led to a savings of Rs 1.60/- per cum. and Rs 5.60/-cum. as compared to the rates fixed by CF and District Collector respectively.

A reference in this connection is invited to Para IV of LAR 22-44/04-05 for Rs 0.165.M (see para at ‘D’ below) on the same division in respect of excess expenditure on continuous contour trenches due to incorrect adoption of FSR and non-implementation of PCCFs orders which has been disallowed in Sl.No.3 of Forestry Operations in Annexure-I to Audit Certificate for 2004-2005. This para was based on PCCFs Circular 3/ 2002 dated.10-05-2002 referred to above which stated that for earth work items like CCTs, Trenches by manual method, I.B/ CSSRs be followed, and A.G held that the Divisional Forest Officers did not follow the orders of PCCF, and instead followed the FSR provisions. Thus the Accountant General has taken two different positions on the same orders of PCCF which is not be justified. Hence the Prl. Accountant General is requested to drop the para.

4.3.4.1.4. Excess expenditure of Rs 1.65 lakhs on CCTs due to incorrect adoption of FSR DFO(T) Medak.

Gist of the Para:-As per circular instructions issued by the Principal Chief Conservator of Forests in May-2002 for all SMC works like percolation tanks, continuous contour trenches etc., the rates provided in IDSSR/CSSR are to be followed. The rate provided in common SSR for the year 2004-05 for earth work excavation in hard gravelly soils etc.was Rs 32/-cmt.

The division during the year 2004-05 (up to 11/2004) executed the works of raising of plantations (under creation) at various locations under APCFM scheme. In the estimates of those woks the division provided a provision for digging (manual) of trenches of size 1.0x (0.5.+0.3)/2x.0.3 including formation of circular mounds and the earth work involved in those trenches worked out to 0.12 = cmt. The rate per trench was Rs 3.84 (Rs .32.x 0.12). During scrutiny of the estimates / work registers, it was however noticed that a rate of Rs 5.10 was adopted for each trench as against correct rate of the Rs.3.84/-. The differential rate worked out to Rs .1.26 (5.10-Rs.3.84). Thus the incorrect adoption of rate for digging of 1,30,622 trenches in 47 works resulted in excess expenditure of Rs 1,64,584/- as detailed in the annexure.

Reply:- This para featured as a draft para in C& AG’s report for 2004-2005 (vide item No.1, under EFS&T Department of Annexure to Prl. Accountant General D.O.Lr.No. Report 1/ 11/2/AR-2004-05/2005-06/91, Dt 7-11-05, addressed to the Chief Secretary to Government of A.P. Hyderabad). However, the following reply is furnished.

The objection relies on PCCF’s circular 3/2002 of 9.5.2002. This circular prescribed (1) the adoption of I.D/ PWD.S.S.R for earth work items like C.C.Ts, Trenches which were being undertaken in a large scale (Manual excavation ) and (2) for adoption of rates approved by District Collector in respect of earth work excavation by machinery .

The DFO (T) Medak followed the rate provide in FSR of Nizamabad circle instead of adopting the IDSSR as per PCCF’s circular 3/2002 of 9-5-2002. The Conservator of Forests Nizamabad substantiated the adoption of FSR rates for the following reasons.

(1) As per the existing Para 98.6 of A.P. Forest Code, the irrigation department rate is required to be taken in all items of buildings and road works and nothing was mentioned about the earth work excavation works.

(2) The A.P. Forest code is approved by Government in 2/1993

(3) The Zonal committee of CFs finalises the FSR and submit the same to PCCF for perusal & record under para 98.3 of AP Forest Code Vol-I.

(4) The instructions of PCCF in circular 3/ 2002 of 9.5.2002 run counter to the Forest Codal provisions and

(5) The FSR Zona11l Committee prescribed a specific rate for this item of work and the DFOs followed the same. There is, therefore, no irregularity.

In this connection, it is stated that the proposal submitted to Government in June, 2002, for amending the existing section 98.6 of A.P. Forest Departmental Code Vol-I in such way that the rate for the earth work excavation of SMC works is also brought under the purview of ID/PWDSSR, has not been approved as of date. Hence it is felt that the DFO (T) did not commit any irregularity. Hence the Prl. Accountant General has been requested to drop the para.

4.3.4.1.5. Excess expenditure of Rs. 23.93 Lakhs on existing coppice growth during creation year – Not provided in the FSR for degraded Natural forests Divisional Forest Officer(T) Warangal (South)

Gist of the para :- Item 2.8 (a) of FSR provides rate for clearing of miscellaneous growth, cutting dead stumps and billeting to facilitate burning or removal by dragging in ordinary areas and item No.2.10 of FSR provides rate for cutting the existing coppice growth with axe (up to 500 stumps, 501 to 1000 stumps and 1001 and above per Ha). Both the operations were provided in FSR under improving degraded natural Forest only one time. Accordingly the Division had incurred expenditure on both the operations of clearance of miscellaneous and cutting of existing coppice growth in improving degraded natural forests during 2003-04 (Advance Operations). However, it was observed from the Work Registers for 2004-05 that the division had incurred Rs 23,93,147 on 4216 Ha adopting the rate of Rs 488.60 (inclusive of 25% AA) towards cutting of existing coppice growth during CREATION year in the same area in which the coppice cutting was already done in 2003-04. As the FSR 2004-05 does not provide for such operation under improvement of degraded natural forests. the expenditure incurred requires to be regularized. Further the rate adopted for the operation is prescribed under “ Plantations”, which is not relevant to rejuvenation of degraded natural forests and as such cannot be applied straight away to the operations carried out.

In reply the department stated that the operations carried out in 2003-04 as advance works included clearance of miscellaneous unwanted growth, thorny bushes, cutting of existing coppice growth upto 500 stumps, coppicing of high stumps with axe. The operations carried out during 2004-05 as “Creation Works” were clearance of miscellaneous growth, thorny bushes, and coppicing and singling of the desirable species and cutting of existing growth for singling. It was further stated that the ranges have booked the expenditure for coppice cutting by tending of the best natural plants of the most desirable species, as prescribed in the plantation chapter . And as there was no provision for these operations in the FSR for 2004-05, the same was brought to the notice of Zonal Committee on 6-12-2004 and a provision for the same was included in the FSR for 2005-06.

Incurring expenditure without any provision for the operations in the FSR during 2004-05 was irregular and was beyond the competence of the Divisional Forest Officer. This may be brought to the notice of Prl. Chief Conservator of Forests and his remarks communicated to audit.

Reply: Further report to Prl. Accountant General will be sent after verification of documents at Division level.

4.3.4.1.6. Planting season 2005- Non-Receipt of Eucalyptus clones from APFDC Rajahmundry - Rs 19.60 Lakhs - Divisional Forest Officer (T) Karimnagar West.

Gist of the para :- An indent was placed with the Regional Manager, APFDC, for supply of 2.80 lakh Eucalyptus clones to be planted in2005 season under APCFM. An amount of Rs 19,60,000/- (2,80,000 x Rs 7.00 per clone) was paid to the Regional manager, APFDC, Rajahmundry vide D.D.No.HC/00/98915,Dt 10-02-2005.

However, it was seen from the Lr.No.2353/2004-S3,Dt 4-07-2005 addressed to Regional Manager, Rajahmundry that the Eucalyptus clones were not received from Rajahmundry so far. As per Para 15 of Project Implementation Plan (PIP) Volume –III of APCFM, all the advances extended to VSS, contractors and agents shall not be eligible for reimbursement till the advances are adjusted against the completion of the work. Hence, the amount of Rs 19,60,000/- will be disallowed while issuing Audit Certificate for the year 2004-05.

Reply:- As per para 15 of PIP Vol.III. Advances are not eligible for claiming reimbursement only. They can be exhibited as expenditure. Hence it may not be correct to disallow the advance payment from expenditure. The Conservator of Forests Warangal has reported in his letter No. 10422/05/A2 dated 19-04-2006 that the Eucalyptus clones worth Rs. 19.60 L were received and utilised for planting in the VSS areas. A report will be furnished in this regard to the Prl. Accountant General for dropping the para.

4.3.4.1.7. Unfruitful expenditure of Rs 0.10 Lakh on survey work – Divisional Forest Officer (T) Karimnagar West.

Gist of the Para:- Estimates were prepared for Treatment of plots. Advance work and creation works consisting of the following items of work were taken up under APCFM Scheme.

1. Survey with DGPS.

2. Clearance of miscellaneous growth.

3. Cutting of the existing coppice growth.

4. Miscellaneous expenditure.

But in some estimates of Karimnagar Range expenditure was incurred on “ Survey with DGPS” only without doing remaining tending operation in 12 estimates 135,136,86, 87,89 to 93, 95to 97. Since the main work of tending operations is cutting of coppice growth and clearance of miscellaneous growth was not carried out the expenditure incurred only on “ Survey with DGPS” remained unfruitful.

Reply:- In the para it was pointed out that the expenditure of Rs 10,926/- incurred in 2003-2004 & 2004-2005 on survey with D.G.P.S was unfruitful since no other operations were carried out. This work was carried out under item 128 of FSR of Warangal Circle. This item reads as under:-

Survey with DGPS, cutting the line where ever necessary loading and unloading of equipment cost of consumables such as floppies etc., processing data excluding the cost of computer and instrumental sets, is only a preliminary item to determine the scope and extent of work to be done. This is inevitable expenditure. Hence the Prl. Accountant General has been requested to drop the objection.

4.3.4.1.8. Excess expenditure of Rs 0.35 Lakhs on watering – Divisional Forest Officer (T) Chittoor (West).

Gist of the para :- A rate of Rs 0.95 per each plant / each watering was provided under item no 03-05-16 of the FSR for the year 04-05 for watering the grafted plants excluding eucalyptus for 3 months (Jan-to-March) @ 2 waterings per month.

During 2004 plantation season, the divisions raised intensive plantations in 1 to 4 ha. with species of eucalyptus clones and NTFP grafts at various locations under APCFM scheme. As seen from the above, item no.03-05-16 of FSR, the expenditure towards watering should be restricted to the plants other than eucalyptus . it was however noticed in audit that the expenditure on watering was booked / incurred over and above the eligible no of plants in these works as shown below.

Range	RSO.No	Total area in Ha	NO. of planted Grafts		Eligible expenditure on watering (3Mx2 times)		Actual expenditure incurred	Diffe-rence
			Area	No.	No.	Amount (Rs)
Madanapalle	3/04-05	1	0.5	150	900	855	4654	3799
Madanapalle	93/04-05	2.5	1.5	600	3600	3420	12859	9349
Madanapalle	99/04-05	2	1	400	2400	2280	11725	9445
Chittoor West	11A/04-05	4	1	400	2400	2280	7065	4785
Chittoor West	12/04-05	2	1	400	2400	2280	5846	3566
Chittoor West	20/04-05	1	-				3797	3797
						Total		34741

Thus incurring expenditure towards watering over on above the eligible no. of plants had resulted in excess expenditure of Rs 34,741/-

In reply, the department stated that the excess expenditure pointed out would be regularized / recovered on receipt of completion reports from the Forest Range Officers concerned and the fact intimated to audit.

Reply : Further report to Prl. Accountant General, after verification of documents ar Division level.

4.3.4.1.9. Advance payment of Rs 7.65 lakhs for supply of Eucalyptus Clones – Divisional Forest Officer (T) Khammam.

Gist of the para:-This para was not communicated to the Prl. Chief Conservator of Forests during the visit of Audit Certification team in Oct/ Nov-2005. The amount has been added in the audit certificate.

The Divisional Forest Officer , Khammam in his Letter No. 4228/05/A1 dated 17-04-2006 reported the seedlings have been received and utilised for planting in the VSS area during 2005 planting season.. A repot will be sent to the Prl. Accountant General for dropping the para.

4.3.4.2. CIVIL WORKS: Gist of paras on Civil Works (FRO Quarters)

4.3.4.2.1. Construction of FRO quarters at

Rs

Kagaznagar	51,000
Adilabad	44,000
M’Nagar	65,000
Warangal	50,000
Jagityal	133,000
Civil Works	820,000
Total	1,163,000

The Prl. Accountant General. observed in the above cases, that as per para 8.4.2 of PIP.VOL.I, residential Qrs and office buildings for forest Range office buildings for Forest Range Officers can be constructed only in remote areas under the project guide lines, where adequate infrastructure is not available.

Reply: It can be seen from the above list that all the above buildings were constructed in naxalite infested areas. Further, the quarters have to be constructed at the head quarters of the FRO as there was no infrastructure at these places to the FROs and if they were built in remote areas, there would not be safety to the buildings. In fact in Karimnagar, FROs quarters constructed earlier in remote areas were blasted by the extremists. These quarters were meant to accommodate the Range Officers residence and offices and the jurisdiction of the Range officers extended to the remote areas as well. The spirit of the para in Project Implementation Plan volume is to provide the FROs with basic infrastructure for functional effectiveness and valuable assets have been created under the project. It may not be wholly justified to give literal interpretation to the project provisions. World bank has already been addressed to approve the construction of FRO Quarters on similar objection raised in the audit certificate for the year 2003-04. (PCCF.Ref.No.216/05/PMU-II/2,Dt 25-06-2005). Approval for these constructions may also be given so that the Prl. Accountant General can be requested to drop these paras.

4.3.4.2.2. Application No. 28 advances to M/S APIIC, Hyderabad Rs 712.00 Lakhs by Divisional Forest Officer Hyderabad

2. SOE Rs 115.00 Lakhs – advanced to APIIC Hyderabad by DFO . Hyderabad

Gist of the Para :- The Accountant General, Hyderabad in Annexure – I&III appended to the Audit Certificate disallowed from expenditure two sums of Rs 712.00 lakhs advanced in Jan-05 Rs.115.00 Lakhs advanced in March-04 to APIIC, Hyderabad, for construction of Forest Head Quarters complex stating that the advances did not qualify for reimbursement.

Reply:- Though the advance of Rs 712.00 Lakhs. was included in expenditure it was shown as ineligible for reimbursement in Form II-B enclosed to Application No.28, Dt 16-03-2005. No reimbursement was claimed.

In the reimbursement application No.30 Dt 24-09-2005 for the period 19-02-2005 to 4-06-2005 the expenditure was shown as Rs.177.63 lakhs (Forest Head Quarters complex) and the reimbursement amount was shown as Rs 123.48 Lakh. Of this expenditure, Rs 90.33 Lakh pertained to the year 2004-05 and the proportionate reimbursable amount for 2004-05 worked out to Rs 62.42 lakhs. This position was furnished to the Prl. Accountant General, in the SOE furnished to them during Audit Certification period. Hence, the Prl. Accountant General, should have admitted an expenditure of Rs. 90.33 Lakhs and reimbursable amount of 62.42 Lakhs in respect of this advance (Rs.712 Lakhs). The actual disallowance in annexure–I, on this account should be Rs 621.67 Lakhs from expenditure (Rs.712 Lakhs Rs 90.33 Lakhs). He should have incorporated Rs.62.42 Lakhs as amount reimbursable against this item of Civil Works in annexure-III appended to Audit Certificate.

As regards Rs 115.00 Lakhs dis-allowed, it is stated that this amount pertained to the years 2003-04 which was already objected to in the Audit Certificate 2003-04 based on which the same was deducted from the expenditure and claim in reimbursement claim No.25, Dt 20-12-2004. Hence the deduction of this amount again is not justified. Hence the correct amount to be dis-allowed under Civil Works against these two amounts worked out to only 621.67 Lakhs. As a result, the figures in Annexure-III to the Audit Certificate should be as under.

I. Expenditure disallowed in audit(vide Annexure –I Civil Works( Sl.No. 1 to 8)

For	Read
1.983 M (Annexure-I, Civil Works Sl.No.1 to 7) 71.2 M (Annexure-I, Civil Works Sl.No.8(i)) 11.5 M (Annexure-I, Civil Works Sl.No.8(ii))	1.983 M 62.167 M Nil
Total 84.683 Million	64.150 Million

II. Expenditure admitted in Audit- Annexure –III- Civil Works ( Sl.No.2)

For	Read
Rs. 33.149 M	53.682 M

Note:- Rs. 33.149 +Rs.9.033 Million + 11.5 Million for the reasons explained above.

III. Amount reimbursable Annexure –III- Civil Works ( Sl.No.2)

For	Read
Rs 26.520 M	Rs 32.693 M

Note:- Rs. 34.279 M original claim as per SOE - 80% of Rs. 1.983 M held under disallowance

Accordingly, the amount dis-allowed in Annexure-I against Application -28 should be Rs 64.150 Million and nil against II. SOE.

4.3.4.2.3.Office shifting expenses and maintenance expenses booked to Civil Works – Rs 8.20 Lakhs – DFO (T) Hyderabad

Gist of the para:- The expenditure incurred on (1) Electrification of New office at Tulja Bhavan Complex (Rs. 47.677),(2) Hire charges of Generation (Rs 3,06,811), (3) Shifting of material to Tuljaguda Complex (Rs.1,18,800), (4) Supply and fixing of Alluminium partition (Rs. 2,60,028 + 38797) and (5) construction of drivers rest room (Rs 48,000) is not eligible for charging to project and hence disallowed form expenditure.

Reply:-It is informed that under Cost Table 3 of Project Management of APCFM Project, there is a provision of Rs 53.25 Million for the construction of Forest Head Quarters Complex under Civil Works. (Administrative building at Hyderabad) and also in Project Appraisal Document (P.60). Accordingly, Government in E.F.S&T (For.III) Department, in their G.O.M.S.No.115 Dt 24-12-2003 accorded sanction for construction of Forest Head Quarters Complex at Aranya Bhavan premises after dismantling the old building and also for temporary shifting to new building complex of A.P. Housing Board during the period of construction besides relocating the offices housed in the Aranya Bhavan Complex. This was approved by the Word Bank also. The office of the PCCF has thus been shifted to the Tuljaguda Complex, APHB building near M.J.Market, Hyderabad-1. This process necessarily involves transportation of furniture, records and other fixtures and fittings in the old building at Aranya Bhavan to the rented premises and installation of the same in the rented premises. Also internal partitions in the rented building were also necessary for accommodating officers from senior level to Junior level and also other staff.

The above items of expenditure are incidental to the construction of Forest Head Quarters Complex, since the term ‘Work” applies not only to works of construction or repair, but also to other individual objects of expenditure connected with the supply, repair and carriage of tools and plant, the supply or manufacture of other stores or the operations of a work shop (vide Article 9 of item 41 of AP Accounts code Vol-III and Para 69 of APW. Account Code). Brief justification for the above expenditure was furnished to the Audit Certification Team in reply to their Half Margin No.A.E.No.2, Dt 27-10-2005. Hence these items of expenditure were correctly classified under civil works except Rs.3,06,811 spent on hire charges of generators.

The hire charges of Rs 3,06,811 originally stated to have been categorized under Civil Works has already been transferred to “Operating Costs”. The resultant excess reimbursement will be adjusted in the next claim after hearing from the Prl. Accountant General.

Thus out of Rs 8.20 Lakh objected to by Audit Rs 5.13 Lakh rightly pertained to Civil Works of the Project. The Prl. Accountant General has been request to examine these replies and drop the objection.

4.3.4.3 Trainings and Workshops:-

4.3.4.3.1. Miscellaneous Expenditure at VSS level for conducting monthly Grama Sabha – Rs 1,76,000- DFO (T) Mancherial.

Gist of the Para:- An amount of Rs 3.17 Lakhs was incurred on conducting of monthly Grama Sabha @ Rs. 300 per month. The year –wise details are as follows:-

2003-04 1,40,900

2004-05 1,76,393

Total 3,17,293

As per APCFM Guidelines expenditures on training at Range, Division, Circle and state level is only eligible for reimbursement. There is no provision for the meeting at VSS level.

The reply given at Division level that the chairperson has to convene managing committee meeting once in every month and general body meeting once in every six months to discuss the work going in the VSS was not acceptable to Accountant General. He commented that it was mandatory for VSS chairpersons to conduct meetings. There is no provision in the project for the expenditure on monthly meetings.

Reply:- In this connection, it is stated that Capacity Building of Communities and NGOs is one of the Cost Tables under the APCFM Project. A lot of emphasis is laid on leading the communities towards self –reliance and self governance which are essential for holistic development of the communities and sustainable management of their natural resources, greater role in planning, implementing and monitoring activities. To achieve this objective Government in E.F.S.&T (For –III) Department, in their G.o.M.S.No.13, Dt 12/02/2002 prescribed certain duties and responsibilities to the VSS besides ordering constitution of various committees like (1) Advisory Council meetings at the VSS level (2) Dist Forest Committee and ITDA level Sub-Committee, (3) Forest Divisional Level Coordination Committee and (4) State level Forest Committee prescribing certain responsibilities to each of the above committees. The expenditure of Rs 0.176 M. pertained to Advisory Council Meetings at the VSS level (Grama Sabha) consisting of forest Section Officer, Forest Beat Officer, the Panchayat Sarpanch, representative of the Village Development Agency in case of scheduled areas, Village Administrative Officer, the NGO actively involved in assisting the VSS and village head master/ head mistress. These advisory council meetings are held to facilitate their timely input into micro-plan and annual plan preparation and evaluation and also for coordinating the activities of other departments at VSS level. They also review micro plans and annual plans and advise the VSS on strategies and available resources for implementing them and they are to meet as often as required. For accommodating such expenditure, there is a provision of Rs 5.42 M under A. Workshops and Rs 14.37 M under D. Training Programmes for the year 2004-2005 (excluding the component of contingences).below 1. Investment Cost of Cost Table 2. The expenditure on these grama sabhas can either be met from the provision under work shops or from Training Programmes and the entire expenditure under Capacity Building of Communities & NGOs is to be Categorized as expenditure under Training and Workshops for the purpose of obtaining reimbursement. Hence the expenditure disallowed is eligible for being classified as of Project expenditure and also for reimbursement at 100%. Hence the Prl. Accountant General has been requested to drop the para.

4.3.4.4.1Office shifting expenses – and maintenance expenditure booked to APCFM – Rs 6,75,000 (A/E No.2) Divisional Forest Officer (T) Hyderabad

Gist of the Para:- An expenditure of Rs 6,74,705 was spent on security services provided to Aranya Bhavan and Tuljaguda Complex was categorized as Training for the purpose of reimbursement which is not admissible under the Project.

Reply:- The office of the Prl. Chief Conservator of Forests was shifted to Tuljaguda Complex, near M.J.Market Hyderabad temporarily till the new forest Head quarters Complex at Aranya Bhavan taken up for construction – as per G.O.M.s.No.115 EFS&T For.III, Dept, Dt 24-12-2003 is completed. This premises accommodates, two other offices also (LIC & Canara bank). In order to keep round-the-clock-vigil over the valuable software and hard ware net working equipment and other Government property in the rented building with three floors, security services were hired in 2004-05 at a cost of Rs 6.75 lakhs. By over sight, this expenditure was originally classified under training. This has al-ready been transferred to Operating Cost. The resultant excess claim will be made good, in the next claim after hearing from the Principle Accountant General.

4.3.4.4.2.Purchase of Tumblers, buckets, plates etc., not eligible under APCFM – Rs 47,000- Divisional Forest Officer (T) Adilabad.

Gist of the Para:- During the year 2004-05 an estimate (S.O.No. 327/04-05) was sanctioned in Boath Range for Rs 46,544-00 for purchase of catering articles like steel buckets, tumblers, gas stoves and to construct a barricade for Kuntala water falls under Eco-Tourism. Expenditure of Rs 46.544 was incurred under APCFM. The State Forest – Policy -2002 through provides for Eco-Tourism, it was not covered under the guide lines of the project.

Reply:- Eco-Tourism forms part of the Project and provision of catering is essential to attract the tourists and this will give some incentive to the VSS members in the remote areas. Detailed justification will be given to the audit.

4.3.4.5. Advance with M/S APIIC – SOE Rs 6 Millions

Gist of the Para:- An advance payment of Rs. 60 Lakh paid in March-04 to M/S APIIC by APFA Dulapally for taking up Civil Works was categorized as expenditure on Training and Workshops. Advances are not to be treated as expenditure. Hence disallowed from expenditure.

Reply:- This objection was already raised in the Audit Certificate for 2003-04 and the same was deducted from the expenditure and claim in the reimbursement claim No.25 Dt 20-12-2004. This has already been explained to the Accountant General’s Team which visited this office in Oct / Nov-05.

Further, in Annexure –III, appended to the Audit Certificate, the Principal Accountant General, disallowed Rs 60.00 lakhs form the expenditure and also from the reimbursement claim. The expenditure that should be admitted in audit and amount reimbursable will have to be changed by the Accountant General, as under in Annexure-III to the Audit Certificate.

For Read

Expenditure admitted in Audit 73.323 M 79.323

Amount reimbursable 73.323 M 79.323

Also the amount of Rs.6.898 Million shown as dis-allowance in Annexure-I (Trainings and Work shops ) will be only Rs.0.898 Million. The Prl. Accountant General, has been addressed in the matter.

4.3.4.6. I.O.C

Office shifting and office maintenance expenditure booked to APCFM - (A.E.NO.2) (Rs .13.16 Lakhs Divisional Forest Officer (T) Hyderabad.

Gist of the Para : Expenditure of Rs 85,639 on Vineyl flouring and door mats to Prl. Chief Conservator of Forests Office, Rs1,42,571 on cleaning of toilets in Prl. Chief Conservator of Forests office and Rs10,88,288 on fuel consumption of generator sets was debited to APCFM. This is not eligible for charging to APCFM.

Reply: The A.P.Forest Dept is implementing a fully integrated Forest Management information system (FMIS) incorporating all aspects of Forest management, protection, inventory, planning, financial management and environment monitoring as -well – as all aspects of marketing timber and non-forest products. it has also geographical information system (GIS) which is integrated with FMIS and the same has been connected to the Circle, Division and Range level.

Under Cost Table 7 Forest Management and planning (FMP) a provision of Rs 16.5280 M. Was made for computer hardware, computer soft ware and peripherals. For the above purpose, a large computer network has been established under the project. This necessitated hiring of generators and their installation in the rented premises as a stand bye in case of power failure/ insufficient power supply by A.P. Transco., Hence the expenditure of Rs 10,88,288 on fuel and Rs 3,06,811 on rentals was incurred. This expenditure was necessary in the interests of project work.

As regards Rs.1,42,571 on cleaning of Toilets, it is stated that the Prl. Chief Conservator of Forests office is housed in three floors of rented building and it day –to-day maintenance is the responsibility of the department. Hence a small expenditure of Rs 1,42,571 was incurred on cleaning of Toilets.

The above three items of expenditure were correctly classified as operating costs and hence the Prl. Accountant General has been requested to drop the para.

4.3.4.7. Goods and Equipment:- Advance payment to M/S APTS Limited. Hyderabad- Application No.29 Dt 7-05-2005. Rs 245.73 Lakhs (SOE) – Divisional Forest Officer (T) Hyderabad and APFA Dulapalli (40.00).

Gist of the Para:- An advance of Rs 245.73 lakhs made to M/S APTS was disallowed from the expenditure stating that advances are not to be considered as expenditure.

Reply:- The advance though taken as expenditure in March -2005 no reimbursement was claimed during that year when vouchers for Rs.69.33 lakhs were received in 9/2005,for the expenditure incurred in 3/2005, a reimbursement claim was made for Rs 66.45 lakhs in claim no.32 Dt 13-09-2005 at 100% Ex -factory cost and the same was admitted by the World Bank. This position was already brought to the notice of the audit team during their visit to this office in Oct-Nov/2005 and was also incorporated in the statement showing the expenditure incurred and reimbursement claimed and received. This was not properly appreciated by the audit team. If the actual expenditure of Rs 69.33 lakhs is taken into account under Goods and Equipment the Annexures I&III under Goods and Equipment appended to the audit certificate under go the following changes.

I. Expenditure dis-allowed in Audit – Annexure-III. Goods and Equipment (Sl.No.3)

For	Read
Rs. 24.573 M (Advance to M/S APTS)	Rs.17.640 M(24.573-6.933= 17.640)

II. Expenditure admitted in Audit –Annexure-III Goods And Equipment (Sl.No.3)

For	Read
Rs. 23.162 Million	Rs.30.095 Million ( Rs.23.162+6.933= Rs.30.095.M)

III. Amount Reimbursable Annexure-III Goods And Equipment (Sl.No.3)

For	Read
Rs.18.530 Million	Rs.25.175 Million ( Rs.18.530+6.645= Rs. 25.175.M)

Consequently, in Annexure-I appended to the Audit Certificate the dis-allowance under G& E will be Rs.17.640 Million. The Accountant General is therefore requested to suitably modify the Audit certificate.

Conclusion :- Out of 124.343 M. disallowed from the expenditure of 2004-05, advances made to APIIC and M/S APTS accounted for Rs 113.273 M. The advances to be actually deducted as explained above worked out to Rs 79.807 M. only.

The sum total of the remaining dis-allowances for which justification is made / to be made in a few cases is Rs 11.070 M. working out to less than 1% of the total project expenditure of 1144.816 M. Of this, the disallowed expenditure on account of Construction of FRO Quarters is Rs.1.163 M, leaving Rs.9.907 M. for which the department has got sufficient justification in incurring the expenditure.

Advance deducted	Dis-allowances to be made
71.200 (Civil Works) APIIC	62.167
11.500 (Civil Works) APIIC	-
6.000 (Trainings ) APIIC	-
24.573 (Goods and Equipments) APTS	17.640
113.273 M	79.807

4.3.4.8. Reconcilation of expenditure with Accountant General figures:-

While issuing the Audit Certificates for the years 2001-2002 to 2004-2005, the Principal Accountant General A.P. Hyderabad mentioned that the following discrepancies exist between the figures of expenditure of Accountant General (A&E) and those of the Department.

Year	Expenditure as per A.G A&E (in Rs)	Expenditure as per the Dept (in Rs.)	Difference
2001-2002	2,51,35,104	1,23,58,600	1,27,76,504 (Departmental figures less)
2002-2003	9,18,07,142	9,43,22,300	25,15,158 (Departmental figures excess)
2003-2004	116,96,72,830	117,70,88,000	74,15,170 (Departmental figures excess)
2004-2005	112,03,08,899	114,48,16,000	2,45,07,101 (Departmental figures excess)

The process of reconcilation was started and it is in different stages of completion. Action has already been taken to create a separate wing in PCCF’s office for reconciling the differences.It is however, pertinent to mention that the Prl. Accountant General has certified the departmental expenditure while issuing the audit certificates for each of the years form 2001-2002 to 2004-2005.

5. Project Impacts:

The developmental objective of the Project is to reduce rural poverty through improved forest management with community participation. Thus there is focus on both forest improvement and community participation in achieving this objective. While CFM as a concept is a process rather than an event, it is a further evolution of JFM that was started a decade ago which itself was a major paradigm shift in forest management in India. CFM initiative sought to address issues of gender and of vulnerable sections more clearly than its JFM counterpart. It also attempts to institutionalize self reliance of VSS as an institution for ensuring sustainable forest management in the long term and clarifies role of forester as facilitator rather than implementer which is urgently needed especially in the light of escalation work pressure and shift in focus of forest management. This Project being a major instrument for implementation of these changes has contributed a lot to ensure the same. However, the initiatives taken can not and should not be seen in isolation especially in a short time span of three years to assess its efficacy. It needs a wider time line to have real impacts and this may extend beyond stated periods more human institutions and biological systems are involved and shift is from dogmatic approach to pragmatic ways. Given below is a brief account of the impact documented:

Overview of Impact: The development objective of the project is “to reduce rural poverty through improved forest management with community participation”. Although considerable benefits to rural livelihood have been made through the wage employment to rehabilitate degraded forest resources and plant plantations it is the revenue earned from the creation of forest assets that will help ensure the sustainable long-term enhanced livelihood of the communities.

Although major benefits and impacts will accrue beyond the project period, there is still significant impact contributing to the achievement of the project objective at this point:

o From out of 147,910 ha of teak forests treated, about 45,000ha of area would yield timber providing Rs. 1800 Crores revenue;

o Considerable bamboo production potential developed with Rs. 500 Crores;

o Increase in natural forest NTFPs by an estimated 20 percent through forest treatments and new NTFPs such as gum and bixa are being added to the list being collected by VSS;

o In a 20 VSS sample, standing wood volume increased by 8.5m³/ha over three years from 15 m³/ha in 2002;

o Significant improvement in ground water regimes through soil and moisture conservation works benefiting both the forest and adjacent communities;

o 20,000 ha of clonal eucalypt plantations established with the potential to provide an annual yield of 10 tonnes worth Rs 40 Crores. To date around Rs 30 Crores of revenue have been paid to communities from the harvesting and sale of pulpwood from plantations established prior to this project on VSS forest;

o A study of 20 VSS forest areas showed that between 1996 and 2005 the area under dense forest has increased by 66 percent while the area under open forest (less than 40 percent canopy cover) has increased by 4 percent. At the same time the area under scrub forest has been reduced by 16 percent.

o The use of improved seed and clonal planting materials provided through the project’s applied research program is improving yields of wood and NTFPs planted within VSS by a minimum of 20 to 25 percent.

o 495 ha of multi-locational trials for short rotation wood and NTFP species established in 122 VSS are already starting to yield data on optimal clones for each site, while VSS have started to benefit from the harvest of NTFPs, such as tamarind and seetapple.

o Women’s status has been improved with 426 VSS having woman chairpersons, while in 131 VSS both chairperson and vice-chairperson are women.

5.1 Impact on Forests through treatment practices:

Forest treatment is an important component of the Project and accounts for 54.12 % of the Project outlay. This component and its activities are key to achieving the development objective while the tone and tenor of all the activities of other components also are associated with this component and its activities in one way or the other. Activities here include rejuvenation of degraded forests of the VSSs through a series of treatment practices, The activities are supported by targeted research back up to ensure qicker and higher returns and development of a comprehensive database on the resource itself through a scientific inventory.

Achievement made in the area of treatment of forests for their improvement is substantial. Infact the Project target of treating 315,800 ha has already been achieved. What is significant in this achievement is that implementation of these activities has followed site specific planning and site specific adaptation with innovation. The organization and implementation of Soil and Moisture Conservation works has been done through a professional and objective approach of treating on watershed basis and aiming at conserving 10% of the precipitation that is received in the given area. Various structures are designed and located basing on a highly scientific approach. A significant initiative taken here is construction of twin purpose structures of continuous contourbtrenches with septa and with a relatively shallow depth of 0.5 Meters to serve the purpose of soil and moisture conservation during monsoon and post monsoon seasons and as fire control measures during summer months when fire occurrence are otherwise rampant. This initiative minimises the cost and maximises utility.

Treatment of teak forests has been done over an area of 147910 ha as against the Project target of 150,000 ha. Similarly as against treating 100,000 ha of misc. hardwood forests an area of 78728 ha has been treated. This includes treatment given to Red sanders forests. Most of the treatmenty given have been quite effective in that the degraded uneven stands have iroved in quality and there is better growth in terms of quality and quantity. To some extent the negative selection that had occurred due to inadequate management before bringing these forests under the management of VSSs has also been set right during the course of cutting back, coppicing and singling. However it is felt that all efforts made here will only result in consolidation and improvement of the available genetic recource of the stand. Further the site and other edaphic conditions also bring in lot of limitations to further improvement of these stands. While an estimated 30% of these sites have potential of graduating to timber yielding forests in due course, the remaining may at best remain at pole stage. Though these pole yielding forests also have utility and commercial value, from the prespective of biodiversity conservation and maximising returns from these forests, there is a need to upgrade their quality. It is in this backdrop that in about 30,000 ha Bamboo and a few medicinal plants have been introduced in the exiting gaps through underplanting. While this experiment is a year old and though initial results are quite promising, with the experience gained in this regard, a larger target for the remainder of the Project period can be thought of.

Rejuvenation of Bamboo forests that has occurred over an area of 27230 ha as against the Project target of 50,000 ha is also a significant achievement. In the VSSs in Adilabad, Vizianagaram, Warangal and Khammam Circles this activity results in utilizing the Bamboo poles coming on account of decongestion operations for converting them into Agarabatti sticks. Since congestion of these Bamboo clumps had put these poles under tremendous stress and competition for nutrition, as a natural phenomena, these culms (poles) are sturdy with very little lumen and consequently yield of Agarabatti sticks is quite high from these compared to the culms growing under more favourable conditions. Thus operations in these forests, apart from improving the condition of the crop and future potential yield from them also have become a source for quick short term revenues from anciliarry activity of Agarabatti stick making.

Similarly treatment of the Red Sanders forests results in removal and utilization of Bodha grass (Cympopogon coloratus) and consequent distillation and marketing of certain essential oils from the grass so removed providing an income generating activity apart from being an activity to protect Red sanders regeneration from fire dage.

Highlight of the Project’s achievement is rasining 40006 ha of highquality plantations of Eucalyptus clones, Bamboo and NTFP grafts of Emblica, Tamarind etc. This is as against the Project gtarget of 10,800 ha. The survival in these plantations is around 90% and growth is excellent. Infact a plantation of Eucalyptus clones in Khammam Disrrict that was raised during the JFM phase was harvested during 2005-06 and the yield obtained was a whopping 7o tonnes per ha compared to 15 tonnes [per ha that was being obtained from traditional plantations of Eucalyptus hybrid. These plantations bear tremendous potential for sustainability of the Project initiatives in the years to come.

The various clonal multi location trials raised have potential of emerging as gene banks of high yielding potential and are ex situ conservation sites as well as sources of plant material for further extension.

5.1.2 Impact on improvement in vegetation cover:

Independent studies made by National Remoting Sensing Agency and by the Geomatic Information Centre of AP Forest Department in 20 VSS forest areas has shown significant positiveimpacton the venegative cover consequent to implementation of ParticipatoryForestry Management in general and AP Community Forestry Maagment in particular. The study by the NRSA, Hyderabad has reprted as follows:

“……Overall trend of the analysis showed that forest vegetation within the VSS limits has been preserved intact and vegetation has increased in at least one third of the total sites studied…. Considerable portion of the positive changes accrued are due to planting activities taken up in 2004 and 2005 planting seasons. These activities showed up as removal of vegetation at places in satellite data at the first instance , later confirmed from ground as removal of vegetation for planting purpose. General increase of crown density was found mainly due to resurgence pioneers like bamboo (Kothrupadu) Xylia, Anogeissus (Tatiwada), Teak (Mahaveertanda, Linethanda), red sanders mixed (Gadela) in protected areas. Strict protection regimes implemented in VSS areas seems to have drastically brought down the illicit cutting and aided stock improvement…..

………Based on the study involving multispectral remote sensing and GIS techniques to assess the change in VSS areas following conclusions could be drawn.

· Barren and scrub areas have shown clear addition of forest cover in at least one third of VSS area out of the total. Prominent among them showing increase of vegetation were Line Thanda (53.9ha), Mahaveerthanda (36.7ha), Irukuvalasa (19.2ha), Gadela (29.8ha), Gaddiganapally (14.3ha) and Nallavelly (39.6ha).

· In general vegetation within the VSS limits has been preserved intact and has shown no degradation trend as such. This in itself can be a sizeable accomplishment especially in view of pressures prevail in forest edge areas.

· Majority among the rest showed improvement in terms of increase in crown density within existing forest canopy and fresh plantation activities. Among them Dhantalpally (15.3 ha), Behrunguda (13.1ha) Indarpur-SC (16 ha) Vanjavarigumpu figured prominent. …..

· Some smaller patches in particular VSS areas have also shown removal of vegetation as illustrated in Ambuka (1.0ha) and Indrapur-SC (0.6ha).

· Considerable portion of the positive changes accrued are due to planting activities taken up in 2004 and 2005 planting seasons. These activities showed up as removal of vegetation at places in satellite data at the first instance, later confirmed from ground as removal of vegetation for planting purpose.

· General increase of crown density was found mainly due to resurgence pioneers like bamboo (Kothrupadu) Xylia, Anogeissus (Tatiwada), Teak (Mahaveertanda, Linethanda), red sanders mixed (Gadela) in protected areas. Strict protection regimes implemented in VSS areas seems to have drastically brought down the illicit cutting and aided stock improvement. Middle infrared-based combination could enhance such cases and interpretation carried out to capture it…….”

Further analysis through Remote Sensing by the Geomatics wing of the AP Forest Department ahs revealed an improvement of forest cover from lower density classes to higher density classes. Following matrix explailn these observations conclusively.

Area under Dense vegetation has moved from 1093 ha during1995-96 to1798 ha during 2004.

Area under open forest have moved from 1495ha during 1996 to 1561 ha during 2004.

The area under scrub vegetation has come down form 2322 ha during 1996 to 1942 ha during 2004.

The area under balnks andother categories has changed from 834 ha during 1996 to 513 during2004.

This study also covered 20 VSSs as in the case of NRSA study.

Furether studies from Gemoatiics wing of the Forest Department covering the entire State covering the VSS forests and the forests in the neighbourhood of the VSSs have also shown positive trend eversince participatory forestry management hasbeenscaledup in Andhra Pradesh. The following statistics testify this statement.

Year/area in Ha	Dense forest	Open forest	Scrub forest	Others
1996	12570	51725	125234	48472
2003	45952	47606	88233	56260

The aboe data stand testimony for the good work done in foret conservation,protectina dnregeneration through participatory forest management through Joint Forest Management and Community Forest Management.

Independent study conducted by the Department of Environmental Sciences of the Andhra University (study conducted on 48 sites during 2005-06) also coroborate the above. Following are the key findings of this study:

“……The practices adopted in the project, have not only helped in minimizing the degradation of the forests, but improved the forest areas around the Forest Dependent Communities (FDC) villages and habitations. Many VSS forests, in near future will support stands with quality timber and diverse NTFPs…..

Impacts on the State of the Forests:

…..The regeneration that is taking place in most of the study sites can be considered as secondary succession and may take a long time to attain a stable community. However, with the several types of interventions and in puts through the APCFM project, now the secondary succession under CFM can be regarded as Engineered Succession of the desired species. As the sites shall have Engineered succession of the desired species, some of the native recessive species population may be affected. However, from the vegetation data, so far no evidence for the loss of species due to treatment models adopted were recorded, and at this stage it is only hypothetical.

On the other hand, as a result of the treatment practices adopted in different VSS of various forest types, the vegetation quality, in terms of species richness, species evenness, tree densities and ground occupancy, cover, wood productivity and NTFP flows, has started improving in all the sites sampled as was evident from the contributions by the recruitment class of trees.

The number of VSS (of the total 48 sampled) that ranked in the top two quality classes for different attributes are as follows:

· Tree Species Richness was Good and in 25 VSS, the number of tree species was more than 30.

· Tree Species Evenness was greater than 0.5 in 41 VSS, and is approaching 1.0 at 3 VSS.

· The Stem density was greater than 50/100 m² in 37 VSS;

· Contribution to the Tree Basal Area by the trees in Recruitment Class was greater than 30% at 19 VSS; This indicates regeneration in the treatment period has improved by more than 30%.

· Crown Cover has exceeded 0.4 at 13 VSS

· Wood productivity was greater than 15 cmt in 20 VSS.

When compared with the baseline data of the year 2002, it was found that the Standing Wood Volume has increased from 15.1 m³ in 2002 to 23.6 m³ in 2006. Thus, an increase of 8.5 m³ /ha in the wood productivity is achieved in three years…….

……….On the whole, the impacts at the local level can be summarized as below:

Ø Over 10% area has moved into dense category; and if the same trend continuous, by the end of 2010, 60% of the VSS areas will be under dense cover.

Ø The density of trees has increased and expected to stabilize between 250-400/ha.

Ø Species richness in the trees category is increasing in 25 sites. (out of 48 studied)

Ø Incidence of fire was reported at 28 sites during Pre-JFM times and now the incidence is nil at these sites.

Ø 2 New NTFPs (Gum) and Jafra (Bixa orelana) are added to the list of traditional NTFP collections by the communities through Community Forest Management.

Ø Improvement in Wildlife habitat was reported at most sites. However, necessary steps need to be taken to avoid the conflict between wildlife and human habitations.

Ø Beneficial impacts of the SMC works on the improved basal areas and on the farm lands of the members.

Ø Improved returns from the enhanced forest productivity.

Ø Helped VSS to reinvest on the forest development.

………..APCFM, through its 5000 VSSs in 14 districts of Andhra Pradesh has brought more than a million and a half of the once degraded forests in to the productivity line through communities’ participation. Thus, the micro level beneficial impacts of the programme is extended to nearly 5.17% of the state’s geographical area, and 22.28% of the state’s forest area.

……..During the year 1996, the state has a Dense forest area of 19%, followed by Open Forests with 33% and another 33% of the forests under the Scrub category. Water bodies occupied for 1% only while the Blank areas accounted for 12%. After 7 years, during the year 2003, 3% of the total area was added to the Dense forests, minimal change in the Open and Scrub categories; while the area occupied by the Water Bodies have reached 6% (improvement by 6 times) and the blank areas have reduced to 6% (reduced by 50%). The significant change in the water bodies could be due to the large scale SMC works arried out in the state, which improved the water retention capacities, which in turn enhanced the area of the water bodies (Fig. 22 and 23).

Similar trend was observed in case of the different regions of the state (Figs. 24 to 29). In Telangana region, the dense cover has moved from 21% during 1996 to 28% during 2003. Blank areas have declined from 14% in 1996 to 7% in 2003. At Rayalaseema region, the dense cover was relatively low when compared with the Telangana and Coastal Andhra regions. The dense cover of Rayalaseema has increased from 7% in 1996 to only 8% in the year 2003. However, the Open cover areas have increased from 42% to 50%, causing substantial reduction in the blank areas, which were 12% in the year 1996 and declined to 6% by the year 2003. In Coastal Andhra Pradesh, the Dense cover has increased from 25% in 1996 to 33% by the year 2003. Scrub areas have declined from 30% to 23%; and the blanks have declined from 11% to 8%. Thus, in all the regions, the areas under Dense and Open forests have increased substantially during the period from 1996 to 2003. The vegetation studies carried out also revealed increased cover contribution by the recruitment class of trees in most of the sites. Thus, the increasing trend of the dense forest cover is continuing…….

……The significant impact of the tree improvement programme under the APCFM is that, the Group Farm Forestry activities, though the coverage has been marginal, it is instrumental in attracting large number of small, marginal and medium farmers, to opt for tree crops. The component plays a supporting roel to CFM, by providing resources to communities how excluded from VSS forest areas, providing alternative forest resources to protect forest areas, and increasing community incomes through afforesestation of otherise underutilized land. This in near future may have a mixed impact on the biological systems, as more farmers convert their lands for tree crops and the area under tree cover will increase significantly.

On the whole, it can be summarized that the APCFM is successful in improving the ecology (soils, moisture, climate, productivity, diversity and wildlife) of the forests under CFM, which accounts for 5.17% of the state’s geographical area, and 22.28% of the state’s forest area. However, the real beneficial impacts will be experienced in another 5 to 6 years, when the yields begin to flow.”

5.1.3 Gains from investments in applied research initiatives:

The most important mandate fixed for Research wing under the AP CFM Project is to supply improved planting stock to increase the productivity of the plantations in the VSS. Under the tree improvement works, deployment of various short-rotation crops, high-value timber species and high-yielding NWFP species are the major focus areas. Development of a sound propagation strategy and standardizing the propagation structures for the clonal planting stock production was also given high priority.

Conducting Natural Forest Management trials to monitor the dynamics of the forests and assist in its management is also an important mandate given to the Research wing under the project. In short, Applied Research under the project is being concentrated more on the issues which are directly relevant for improving the productivity and sustainability of the VSS such as silvicultural treatment of degraded forests, clonal technology, improved nursery practices, collection and marketing of NWFP species including medicinal and aromatic plants, training and extension etc.

It was observed that comparative gains from clonal plantation are very high over seed-route plantations raised with unimproved, genetically poor quality seeds. Clonal development and deployment costs for short-rotation species are lower and gains can be generally larger and quicker compared to long-rotation species. Low interest rates reduce capital cost and production costs leading to increased gains.

Wide genetic base of clonal plantations with large number of clones can minimize such risks. Eucalyptus

Apart from clonal technology method, the planting stock improvement was attempted by establishing Clonal Seed Orchards (CSO) and Seedling Seed Orchards (SSO).

Traditionally seedlings are raised from the seed and used for planting with 20-25 MT/ ha after 8-10 years. A remarkable progress has been achieved in improving the productivity of Eucalyptus plantations through Clonal Forestry. The Research wing has so far supplied 14.66 lakhs of clonal planting stock of Eucalyptus under CFM programme for planting in the VSS with intensive site preparation methods and kept 19 lakhs of clonal planting stock ready for planting during 2006 planting season. Production from the seed origin plantation at 10 years rotation is about 25 MT/ Ha, whereas through Clonal Forestry it could be raised to 50 MT / Ha in 7 year rotation which is an improvement of 80% over ordinary seedlings. Thus the seedlings raised from the seed collected from Clonal Seed Orchards would improve the productivity atleast by 20 – 25%.

Expected yield per ha after 7 yrs –50 MT if planted with clonal material (the yield figure is taken from the APFDC clonal plantation harvesting figure) and 25 MT if planted by ordinary seedlings. # R&D Circle kept ready 19 lakh of committed clonal planting stock of Eucalyptus for supply to the VSS plantation to be taken up during 2006 planting season. Yield per Ha, if planted with seedlings from unknown source, the yield is around 25 M.T. / Ha. Due to genetic gain from the seeds of CSO/SSO, 20% improvement in the yield (30 MT/ Ha) can be expected.

Efforts have been made on genetic improvement of Casuarina equisetifolia by selecting superior trees from plantations, their vegetative propagation and establishment of Clonal Seed Orchards, Clonal Multiplication Areas and Progeny trial pots. The seedlings raised from the seed collected from CSOs would improve the productivity atleast by 20 – 25%.Yield per Ha. if planted by ordinary seedlings is around 60 M.T. per Ha. Due to genetic gain of improved seed, 50% improvement in the yield can be expected.Yield for ordinary plantation is taken as 60 MT / Ha. for 4 year rotation and for plantation raised from genetically improved planting stock, yield is expected to be 72 M.T. / Ha.

NTFP have both utilitarian and socio-economic importance. The value of existing plantations in Research Centers. MLCT have been established to shortlist the site specific clones for different species. The MLCT will also provide a valuable source of revenue for the comminuities through sale of the products and clonal graft scions while being a bisi for improving forest based productivity. Teak has been used for decades in plantation establishment as a long-rotation high value species. This species is easily established in plantation regimes compared to many other high value timber species. In Andhra Pradesh, Teak Improvement trials started 30 years ago. It is estimated (assuming planting of 1200-1600 stumps/ha) a seed demand of 12-16 kg of teak seed per ha of plantation to be afforested. Hence this would require at least 1 ha of clonal seed orchard for each 16 ha of plantation to be established annually. Teak is a slow-growing species, and therefore tree improvement programme is a long term investment. In BIOTRIM Tirupati, the micropropagation of 35000 short-listed clonal planting stock will be ready for deployment in this planting season.

The mini-cuttings which are 100% juvenile, can be taken and rooted which form the improved planting stock. The same genetic gain of 10% is expected from such planting stock. This planting stock can be planted in 2012 ha and with a minimum of 10% increase in the yield one can expect a total yield of 313872 cum over 50 years of rotation. The monetary value of this increased yield accruing due to the deployment of the improved planting stock is about Rs.9859/- lakhs.

Research has an ongoning program of maintaining growthand yield within both the natural treated forests and VSS established plantations. Samjple plots have been laid to cover tree and bamboo growth in the natural forests which will also determine the optimum thinning practice for such species as teak. In Adilabad forests the average basal area per Ha, the MAI per Ha. is found to be higher in the teak forests where Silvicultural interventions were made compared to untreated areas in Warangal District.

5.2 Social and economic impacts:

The other major set of iniatives contributing to the achievement of Project development objective is community participation and social mobilization. VSS has been evolving as a managed and more technically competent institution that considers gender and social equity over the last decade. The iniatives taken under the Project of addressing gender issues, issues of vulnerable groups, of participation in decision making will have long term positive repercussions even in the post project scenario. Out of 5000 VSSs being assisted under this Project, 3108 (62.16%) have significant Tribal membership. Thus ncluding and assisting these VSSs will have a significant positive bearing on the overall relationship between Forest Departmnent and tribal communities. As a consequence of reservation of forests since late 1880s, there have been conflicts between the forest department and tribal communities. Such conflicts escalated in Andhra Pradesh during 1980s due to increase in activities of certain anti social elements. But the initiative of Joint Forest Management thata started during 1992 which has now been upgraded as Community Forest Management has virtually reqwritten the relation between Forest Department and Tribal communities. Forest Officials no longer consider Tribals as wage earners or merely as a workforce and the Tribals consider Forests as their common property resource and themselves as stakeholders in forest management. A sense of ownership has developed and with this the responsibilities for protection and management are no longer the mandate only for the Forest Department. The role of Foresters also is changing gradually and significantly from implementers to facilitators.

5.2.1 Gender issues being addressed: The constitution of VSS mandates that 8 out of 15 members of managing committee are women and ateast one of either Chairperson or Vice chairperson is a woman. While forests play a significant role in the lives of women through utilities as water sopurce and source of domestic energy (fuelwood), by and large we are dealing with a male dominated society and many forest management operations and forest protection tasks are traditionally male oriented. It is hearening to note that in 426 VSSs Women have been functioning as Chairpersons (in others as Vice chairpersons) and in 131 VSSs both the Chairpersons and Vice Chairpersons are women. Even in th profile of employment generation under the Project, women have a share of 45.5% Thus gender issues are slowly getting addressed.

5.2.2 Income Generation: The institution of VSS is more than a decade old and the existing resources in the VSS managed forest area had been treated on the sound principles of forest management by the VSS with an idea of making them productive. Besides this lot of assests created by way of raising artificial regeneration of SRWPs, NTFPs, medicinal plants and by way of taking soil and moisture conservation works. The community leadership at places have become strong enough to take up further activities in the area of value addition and marketing for making the VSS sustainable. In quite good number of VSSs, income has started generating from few thousands to few lakhs. As per the information collected on the income generated from various forest produces and their value addition in few cases during the year 2003-04,2004-05 and 2005-06, it has been recorded as Rs.67.79 Crores. This is the total income generated which essentially includes the value of the forest produces comsumed by the VSS members locally as the domestic needs as well as the quantities sold. The various sources of income in the VS’S are small timber, poles, firewood, bamboo, grass, NTFPs from the natural forests, Compound fees, harvesting and thinning of regenerated Teak forests and short rotation species like Eucalyptus and Bamboo. There are some value addition activities going on especially in the area of apiculture, pisciculture, lac cultivation, adda leaf plate making, bamboo based enterprises like agarbathi sticks, mats, furniture, handicrafts, basket making etc., extraction of essential oils from bodha grass, hill brooms etc. for generating income to the VSS members.

What is significant to note here is the pattern of income generation. Nearly 52% of this income generation is noticed in VSSs with >50% tribal membership. This brings in the significant association of tribal management of VSSs and the trend is a very positive and promising one.

5.2.3 Self sufficiency in financial management and book keeping: Hoistorically Forest Department has been a conventional and regulatory department with well defined systems and procedures. It has been a very conservative organization and guarded in adopting changes. VSSs are institutions primarily promoted by the Forest Department as the ones to lead and guide the Community in shifting from estate approach to participatory approach in forest management. Success of Community Forest Management is heavily depends on the level of maturity of VSSs and their ability to decide and implement their decisions. One of the indicators of success in this regard is self-sufficiency of the VSSs with regard to keeping their own books of accounts. Unlike many other initiatives, which provide external support in financial management, this Project planned to create and enhance ability within VSS institution in book keeping. With this in view, 3 educated youth in each VSS were selected and trained adequately in book keeping and financial management. Similarly Community Extension Workers also were trained in this regard. During January 2004, the Government amended the AP Forest Department Code with reference to financial powers and financial management. Through this amendment, the Government recognized VSS as an institution in implementation of works and in handling and managing financial allocations. In accordance with this amendment, financial allocations made for VSS works are now being released by the DFOs directly to the VSSs. The Chairperson of the VSS is the disbursing authority with regard to funds for VSS works. The VSSs are able to handle and manage the otherwise elaborate accounting procedure of the Forest Department virtually on their own. Thus the role of the APFD has now been clearly defined in the APFD code as that of facilitators and the role of VSS as that of implementers. This clarity has brought in tremendous amount of confidence and responsibility to the VSSs enhancing their participation. There is a perceptible improvement in the level of awareness in the VSSs on account of this policy change.

5.2.4 Employment generation: Forestry has always been a heavy source of employment generation especially in the rural sector. In fact more than 50% of the contribution to livelihoods from forestry is from employment genetaion potential of forestry operations. Bulk of the area of Andhra Pradesh state, due to historical and geographical reasons is in rain shadow region. This being the case the state has suffered from drought for the last four years. This on one hand and the fact that majority of the members of VSSs are poor and landless, makes them highly vulnerable and compels them to migrate for want of adequate livelihood opportunities. Migration is one of the most cruelties that nature imposes on such target group especially when there is drought. While migration disrupts and nearly destroys families, it also adversely affects these vulnerable groups in that none of the welfare measures taken by the Governments reach them as they are not physically available to receive them. Considering these situations creation of 23.81 person days of employment is laudable. Coming particularly in lean months, this Project has provided an opportunity to all poor members of VSSs in staying back in their respective villages and access employment available through VSS works. This is a very important and humane fall out of Project implementation.

5.2.5 Focusing on livelihood enhancement as means of sustainable forest use: Focus so far in any Forestry Project has been on creation and Managementof Forest resources through rejuvenation of degraded forests, artifical regeneration, soil and moisture conservation activities, fire control etc. No Forestry Project generally deals with linkilng forest management with llivelihood of the people living in its vicinity and depending on it. Generally the people living in the vicinity have invariably been regarded as work for forestry regeneration, harvestilng, management etc. In this context, the APCFMProject has made a distinct difference inthat it has lilnked up forest management to livelihood enhancement.

Bamboo based enterprises: A comprehensive sector analysis and development of an action plan for harnessing Bamboo resources in Andhra Pradesh has been made. The state of Andhra Pradesh accounts for about 7.4% of area and about 10% of production of Bamboo in India. But the diversity of Bamboo is limited as most of the Bamboo is Dendrocalamus strictus with little area under Bambusa bambus and Dendrocalamus hamiltonii. On an experimental basis Melacona baccifera, Bambusa tulda, B. polymorpha and B. Balcoa have been introduced this year. Their performance is yet to be tested. The Project has invested signilficantly in rejuvenation of degraded Bamboo forests. More than 30,000 ha. Of degraded bamboo forests have been treated so far. Another 20,000 ha will be teated during the remainder of the Project. In additionto this, Bamboo has been introduced in about 30,000 ha of forests that did not contain bamboo. Another 10,000 ha of such non bamboo forest will be treated by introducing bamboo during the remailnder of the Project and 10,000 ha of bamboo plantations will be raised. Significant initiative in addition to creating resource base is in the area of value addition and market support.

Value addition to Bamboo in the form of Bamboo Agarbathi stick making has been taken up in Adilabad, East Godavari, Khammam and Vizianagaram districts. Marketing of these sticks is being done locally as well as to ITC, Chennai. So far 171 tonnes of such sticks have ben produced and marketed. This activity is fetching revenue of Rs. 18,000 per tonne as against Rs. 1500 per tonne being realized from Paper and pulp mills. It is pertinent to note adapting appropriate technology in ensuring wide participation in this activity. The tools supplied are locally made and very simple to use and maintain. Efforts are on to make Bamboo Mat Board with the help of a local plywood factory in Hyderabad. Efforts are also on to make flush doors using bamboo rings as filler material. Once these products are fine tuned, supplies are pla

nned for the Housing programme undertaken by the Government of Andhra Pradesh. Another important acgievement is in production of Bamboo pole based furniture with a market tie up with M/s Byrraju Foundation. Tribals of East Godavari district have been trained in manufacture of Bamboo pole based chairs and tables for use by M/s Byrraju Foundatyion. When scaled up this has tremendous export potential. Significant achievement here is adopting a cluster approach and providing common facility centres which also function as training com production centres. This approach has brought in a new dimension of necessity of federating and networking around the common facility centre and the host of service that it provides. So far 10 common facility centres have been operationalised and 20 more are on the cards. These CFCs provide agreat community feeling and function as enterprise and marketing hubs. From a virtual insignificant species that was valued only for its potential for pulp making, Bamboo is making inroads into the VSS economy slowly but significantly.

Adda leaf: Another significant development which certainly have long term positive impact on the economy of tribal families especially in the North Coastal Pradesh is initiation of Adda leaf based enterprises with appropriate technology. Traditionally the tribals of Visakhapatnam, Vizianagaram, East Godavari and Bhadrachalam areas have been collecting Adda leaf (leaves of Bauhinia vahlii) and selling to GCC and middlemen in Shandies. But the benefits of value addition that was undertaken by plainsmen has never reached tribals before. Thus the forest dependant tribals have remained poor and their drudgery of travelling long distances on foot many a times for days together have added to their misery. A simple intervention of training the tribal women in stitching leaves into leaf plates taken up through participation of 40 NGOs in 322 villages covering around 7427 families in Visakhapatnam and Vizianagaram districts has had salutary results. Each tribal woman trained in this activity is able to earn any where between Rs. 30 and Rs. 50 per day as additional income after attending to other routine activities. Though this activity has been initiated only three months back, it is picking up like wild fire and is becoming very popular in the tribal belt. The enthusiasm seen among the tribal women in this activity is only to be seen to be believed. This initiative will certainly bring a new perspective on the role of GCC, Forest Department and NGOs in future as far as Adda leaf trade is concerned.

Apiculture: Though tried initially, Apiculture has had limited success in a number of rural development projects. The limiting factor was lack of adequate hand hoding support and inhibition among the beneficiaries to handle the bee hives. The APCFM Project, identifying these constraints has identified small entrepreneurs who can provide hand holding support. In a small way beginning has been made in Adilabad, Nellore and Vizianagaram districts covering 131 VSSs and 3734 families during 2005-06. So far 1106 Kgs of honey has been harvested and the activity is picking up. At present the colonies are stabilising and honey production will pick up from the next season.

5.2.6 Institutional and Economic Impacts:

Indepndent study by Ms. Development Research Services Hyderabad on the economic and institutional spects of the APCFM Project have revealed the following significant findings:

….Income Effect on Poverty Reduction: Migration from a lower income bracket to a higher income bracket is one of the key indicators of poverty reduction across the social groups. During the period of study 2001-02 to 2004-05, we noticed that the income effect on poverty reduction among ST groups is more significant than for SCs. Both SCs and STs together as a group have shifted to higher income groups more significantly than others. Considering their dependence more on farm and forest produce incomes, the VSS as an intervention made significant contribution to reduction of poverty.

Income structure of households: Income structure of households in different income classes indicates that income from wage continues to be significant among those whose income is below Rs. 20,000/- ranging between 55 and 62per cent. Higher the proportion of wage income, higher is the average income per household till the household income threshold reached R.30,000/-. The NTFP value addition in the higher income brackets has been negligible while the income from milch animals took a greater slice. Among the medium category of households, (30,000 to 50,000 category), forestry as a source of income has a minimal contribution where as in the lower and marginal icome brackets, its contribution is more than is the case with other categories.

Housing Profile as a Poverty indicator: One of the important indicators of poverty reduction is the shape and composition of assets. ‘Housing’ is an important indicator among such assets for consideration. VSS members in 41 percent of divisions moved to pucca houses from either kucha or thatched houses. 55 percent of the divisions witnessed a graduation from thatched to kucha houses. …. Housing profile clearly indicates that members have crossed the poverty line at significant level. VSS members thus moved to a higher life security zone.

Alternate livelihoods: Community Forest Management through VSS is yet another instrumentality for ALH promotion. The data indicates that following activities have shown varying degrees of intervention across VSS.

1) Agarbathis (8 Sample VSS)

2) Adda leaf plate making (7 Sample VSS)

3) Tailoring (7 Sample VSS)

4) Brooms (6 Sample VSS)

5) Honey collection, bottling and sale (3 Sample VSS)

6) Bamboo products (3 Sample VSS)

7) Vegetable production and sale

8) Sale of gum

9) Vermicompost

10) Others (Tusser culture, pottery, beedi leaves etc.)

Forest related IGAs were taken up in 77 percent of the VSS studied. These related mostly to soil moisture conservation, raising plantation of various species and in 12 percent of VSS teak plantations were taken up.

Area allocation to income growth: The Forest Department made available the area of land allocated to different VSS in the sample. For each of the VSS, we have collected data on income at the end of 2004-05. We thought that it would be worthwhile to relate the income differential between the two reference periods to the type and size of land allocated. ….We tried to see the association between land area allocated by the Forest department and the growth of income in the families studied. It is interesting to note that despite smaller percentage (Below 20 percent) of land allocation in WLM Rajampet, Proddatur (WL), Nellore, Chittoor East and Warangal North, the income growth ranged between 13 and 641 per cent, or an annual growth ranging from 4.5 to 214 per cent in the triennial period of study. This is because of the quality of forest allocated and the species engendered in the respective divisions. Despite larger percentage of area allocated to the VSS in Kagaznagar, there was negative growth because of the highly degraded forestland area allocated. Same is the case with Jannaram WL (T) division where there is only a marginal growth of 5 percent per annum. Here the scope for replanting or inter cultivation and for rebuilding some community assets like check dams, fish ponds etc is extremely limited. The storage of run-off water could not be possible.

But otherwise, one can notice from the evaluation study, that there is a positive association between land area allocation and growth of income in the VSS during the period of project implementation. Higher the percentage of land area allocated, greater is the growth in annual income of the VSS members.