( 104& ) 



Rs. 



I. Annual expenditure (as above) ... ... 80 



II. Annual revenue Rs. 



(1) From babul coppice and grass and grazing 



as above ... ... ... (a) 136 (6)86 



(2) From timber standards, 1 acre per annum 



(for 1st 19 years)... ... ...Rs. 300 for 19 years. 



Nett annual revenue (for 1st 19 years) ... .. (a) 356 (b) 306 



and for 20th year... ... ... 56 6 



Then total capital value at end of 60th year 



(a) (Rs. 1,698x2-1911) (Rs. 356 per annum for 1st 19 



years plus compound interest) Rs, 56 



=+Rs. 3,720-10,24556 



= Rs. 6,581 (i.e., a surplus of over Rs. 6,000). 

 (6) (Rs. 3,298x2-1911) Rs. 306 per annum for 1st 



year) Rs. 6 



=Ra. 7,2268,8066 



=Rs. 1,586 (i.e a. surplus of over Rs. 1,500). 



These figures conclusively prove (1) that simple babul coppice 

 and grass-grazing will not prove financially profitable, but the grass 

 is essential for famine insurance and to improve the general 

 conditions for the cultivators, while the babul is very useful for 

 reclamation, for improving the grass crop, and for giving interme- 

 diate early returns ; (2) that timber standards with babul coppice 

 and grass will prove financially profitable ; (3) that Government 

 can afford to pay the landowner a minimum of 8 annas per acre, 

 as each acre comes under reclamation (under present agreements 

 the landowner would get no caeh return for 40'50 years) debit 4 per 

 cent, compound interest on capital expenditure up to the 40th year, 

 and between the 41st and 60bh years will recover not only the capital 

 invested plus compound interest, but obtain also a 3/4 share of the 

 surplus (which should be between Rs. 1,600 and 6,000 on each 20 

 acres), actually, results will be better than these calculations show, 

 because it is proposed to treat a certain proportion of the whole 

 area of each plantation (possibly 20 per cent.) for intensive timber 

 production, the financial expectations from which are very much 

 higher than scattered timber trees amongst babul coppice, and the 

 calculations have been made throughout on the latter (and less 

 favourable) basis. However, the figures as they stand are sufficient- 

 ly satisfactory. It should be emphasised that for areas in category 

 (1) referred to above, e.g., areas near big towns such as the Allen- 

 bagh, Fisher Forest, etc., financial expectations are naturally very 



