Karnataka Forest Development Corporation Ltd., (KFDC) was established as per the Forest Policy of the Government of India during the 4th Five-year Plan to encourage cultivation of fast growing trees species which are suitable for producing papers pulp and rayon-grade pulp. KFDC was incorporated in the year 1971 as a fully owned Government Company. This was part of the overall industrialization program of the nation at that time.
The authorized share capital of the Corporation is Rs 2500 lakhs, the paid up capital is Rs. 931.40 lakhs. The face value of each share is Rs. 1000/-.
As per the Memorandum of Association, the objectives of the Company are as under:
• To develop land for raising forest plantations and in particular Eucalyptus, Bamboo, Tropical Pines, Rubber, Cashewnut, Cocoa, Tea, Coffee and such other suitable species in the State of Karnataka, for the purpose of development of industries based on their produce.
• To plant, grow, cultivate, produce and raise plantations of all kinds of varieties of forest plants, trees and crops and natural products of every kind and other agricultural crops and to buy, sell, export, import, process, distribute or otherwise deal in all kinds of forest plants, tree crops, natural products and agricultural crops.
• To carry on the business of planters, cultivators, sellers and dealers in time, plywood, pulpwood, matchwood and such other products of every description and to manufacture, dispose off, sell and deal in products of such plantations and other forest crops of every description.
• To establish, administer, own and run industries for manufacturing forest products.
• To promote the development of Forest Industries, to operate suitable schemes and for that purpose to prepare and get or cause to be prepared reports, blue prints, statistics, feasibility studies and project reports and other information.
• To promote companies, firms, establishments, concerns or undertakings for the purpose of development of industries based on forest produce and to assist and finance any individual firms or company with capital, loan, credit resources etc.
• To take up construction of buildings in furtherance of forests.
• To take up research and sponsor work relating to forestry including tissue culture and allied activities.
• To conduct tours in relation to Wildlife Sanctuaries and other places of interest.