The Social Forestry Project was started in Jammu & Kashmir as a World Bank aided Project in 1981-82, initially for a period of five years. The Project was extended up-to 1990-91. Since then the Project works had continued as an activity under the State funding, to provide fuel-wood in the shortest possible time and to provide poles, small timber, fodder fruits and other minor forest products for basic requirements of the rural poor.

In the year 2001, vide Government Order No : 640-GAD of 2001 dated : 14-06-2001, the organization created under the World Bank assistance, was decided to be closed down and remained in the process of winding up till 10/2004 with a very low capital component.

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