( 82A ) 



I have assumed that all the money spent is borrowed at 4 per 

 cent, compound interest ; on the other hand I have put all revenue 

 into a sinking fund at 4 per cent, compound interest. 



It will be seen that it is not until the 21st year of management 

 is there a regular surplus of revenue over expenditure. It will also 

 be seen that in the 30th year of management the sinking fund will 

 be sufficient to pay off the accumulated debt, leaving the estate 

 with its ravines reclaimed and a valuable forest established thereon 

 from which a regular revenue of about Rs. 40,000 may be 

 expected. 



It is not, of course, to be expected that the revenue and expend- 

 iture will actually correspond to the figure given for each year. 

 But I do not think that the forecast as a whole is unduly optimis- 

 tic. - It would not be unreasonable, for instance, to expect some 

 revenue from the sale of grass every year. It is quite possible that 

 a little revenue may be obtained from the sale of trees already grow- 

 ing on the ravines. There is .one factor, however, which may 

 entirely upset the forecast, and that is the question of supply of 

 labour. The forecast is based on the assumption that an area of 

 400 acres per annum is reclaimed. Although the estate can, 

 apparently, find the money necessary for this, it is possible that in 

 good years, when the villagers are fully occupied in their fields, 

 labour may be so scarce that it will be impossible to reclaim so 

 large an area, in which case the whole programme would be delayed. 

 On the other hand, it is quite certain that in years of scarcity or 

 famine sufficient labour could be found to reclaim a very much 

 larger area and in the interests of the villagers it would almost 

 certainly be necessary to carry out the work on a much larger scale 

 than usual. It is possible, therefore, that the average area reclaim- 

 ed annually will be much larger than 400 acres, and ia that 

 case the financial success of the scheme would be even better than 

 shown in the forecast. I do not know whether the estate would 

 be in a position to find the extra money required for carrying out 

 extra work in years of scarcity, although I suppose that Govern- 

 ment would be ready to assist it, but I think that in any case it 

 would be a satisfactory arrangement if the estate could put aside 

 any savings effected in any year to form an emergency fund for 

 years in which more money was required. 



14. The Bhadawar estate is situated in a more than usually 

 favourable position for the establishment of fuel and fodder reserve s 

 in ravine tracts, for there is a metalled road from Naugawan and 

 Chitra to the railway, eight miles away, at Jaswantnagar on the East 

 Indian Railway. All the villages are within quite reasonable distance 

 of this metalled road and some of them are less than eight miles from 



