The Corporation came into existence on 23.5.1983 in pursuance of the recommendations made by the National Commission on Agriculture, Government of India which observed that the forestry sector in the country was handicapped due to paucity of funds. Therefore, the commission emphasised the need to switch over to production of forestry as a business by helping the sector come out of rut of low investment in the face of mounting demands of various forest products.
Till June, 2009 Punjab State Forest Development Corporation (PSFDC) was engaged in harvesting the standing trees taken from Forest Department, Punjab on rates fixed State Government. Timber so obtained was sold by the corporation through open public auctions.
The State Government framed a new policy of selling standing trees through open tender w.e.f. 1.7.2009. From then onwards, PSFDC is selling the standing trees through tender system.
