For felling purpose trees are marked according to Working Plan. The felled timber in the various coupes is trans-ported to different depots of the Nigam . In a depot , grading of timber is done according to various norms fixed by the Forest Department. Teak logs are classified in different length classes and girth classes for other species this interval is 10 to 30 Cms. e.g. 41-50, 51-60, 61-75, etc . whereas for other species this interval is 10 to 30 Cms. e.g. 51-60, 61-90, 91-120,etc. Measurements are taken in the middle of the logs under-bark for girth and upto nearest decimeter for length , Measurement are recorded in the forest and rechecked in the depots.

After gradation timber is stacked and lots are prepared according to different girth, length and grade classes. Upset price for different Classes is fixed by Divisional Manager on the basis of market trend, CF approved rates and rates obtained in past six months for similar in previous auction, Auction dates are published in different newspapers and also sent by post, at divisional level, to Registered Contractors. The contractor who wishes to bid for any lot has to pay Earnest Money Deposit @ 10% of the value of the bid. In case his bid is the highest one and within acceptable limits by the auctioning authority his bid is accepted by the concerned Divisional Manager and / or Regional General Manager as per powers delegated to them. After accepting the bid the contractor has to deposit 25% of the bid amount on the spot or within 7 days. Then work order is issued by the Divisional Manager . The balance amount along with all duties and taxes of the bid value has to be deposited by the contractor as per terms and conditions of the auction sale. When the full amount of the particular lot is paid by the contractor, deliver order is issued to the contractor.

If the contractor fails fails to lift the material within the prescribed time, the time limit for lifting the material can be extended by the Divisional Manager on payment of ground rent by the contractor, as per the terms and conditions of auction. If the contractor fails to lift the material in the extended period then the balance material will be forfeited in favour of the Nigam. The forest produce in auction is again to be put in next auction for sale.