Forest Development corporations have been formed in 16 state and Union Territories in India with the objective of intensive forest management through facilitating the flow of institutional finance. The note discusses the procedures and problems of acquiring institutional finance for forestry development projects. Steps to enhance bankability of such projects have also been discussed. The note summarizes the estimated financial requirements of production forestry in India up to 1990 and raises the question if the same can be met. Some other issues raised for discussion in the context of forestry development projects pertain to differential rates of interest, assessing bankability need for a separate institution, low pick up of institutional finance provided in the past, and forestry sector's capacity to generate its own funds for development.