All plantation and management was undertaken by the Forest Department with costs to be recovered ultimately after the final harvesting and sale of produce. The Village Panchayat contributed to plantation protection through the employment of a full-time salaried watchman. An interesting cost-benefit analysis of the oldest 13 ha plantation using three different sets of assumptions is provided. This indicates that despite varying the assumptions, and even at a discount rate of 20%, the village woodlot was financially viable and generated substantial net revenue for the Panchayat. However, a survey of a randomly selected sample of 70 villagers and 8 current and former Panchayat officials revealed that excluding some of the latter, villagers had not participated in any way in the establishment or management of the woodlots, even in the choice of species.

Furthermore, the majority held negative opinions about the woodlots, a significant number were indifferent and only four had positive views. The vast majority believed that the woodlots had benefited only the Panchayat. The reasons for the lack of interest by the Panchayat to take over management of the woodlots from the Forest Department after three years, as intended by the scheme, are also discussed. The authors conclude that although the VW scheme in Aslali was technically successful and financially viable, it failed to achieve its social goal of developing the villagers’ interest and capacity in establishing and managing woodlots to meet their forest product requirements.