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The National Commission on Agricultural (NCA) has suggested setting up of Forest Development Corporation in every state which will be able to raise institutional finance for raising man-made forests so as to meet the domestic and industrial needs of Forest produce and re-clothe the degraded forest areas and bring them under productive use. Kerala Forest Development Corporation was established as a joint venture of Government of India and State Government in 1975 and it came into existence on 24th January 1975, with its Registered Office at Kottayam.


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