As per State Govt. policy timber extraction works were transferred to the Corporation in a phased manner. The Corporation took over the complete working of the Govt. Forests w.e.f. 25.01.1983.
The Corporation in the present is taking over only salvage lots comprising of dry, diseased, uprooted and damaged trees, handed over to it, by the HP Forest Department for working. The work of felling and conversion of timber is done through professionally skilled trained labour. Its carriage to roadside depots is done either by manual labour or by ropeways and in some cases, where possible, through waterways. All these works are attended to through Labour Supply Mates under the direct supervision of the Corporation staff. Which is sold in auction through its sale depots (HIMKASHTH SALE DEPOTS) and also supplied through its retail sale depots, to the Govt. Departments, non-right-holders, small scale industries etc.
The Corporation have five major Himkashth Sale Depots at Nurpur, Mantaruwala/Paonta, Baddi, Bhadroya and Dhanotu/Sundernagar from where Govt. timber and timber from private lots is sold through auction. Three other minor Himkashth Sale Depots operate at Shamshi/Kullu, Swarghat/Bilaspur and Udaypur/Chamba.
The Corporation is also running timber/fuelwood depots in non tribal areas, spread through out the State in various towns, townships and important villages to meet the requirement of timber, fuelwood and charcoal of non-right-holders. The intention to minimize the malpractices and irregularities in the purchase of timber and fuelwood. The requirement of fuelwood in tribal area is met with, by the Corporation, by supplying fuelwood to the depots, being maintained in tribal areas, by the H.P. Forest Department.
The Corporation is also working khair trees from Govt. lots as well as selling other miscellaneous forest produce like pulpwood and fuel wood.