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| Major Events Vol. 3 Issue No. 31 | July 16-31, 2007 |
Spl package to revive 33 closed TEs Centre has claimed that the rehabilitation package for closed tea gardens is expected to lead to revival of 33 closed tea gardens, employing over 30,000 workers. On revival, the gardens would infuse additional capital in plants and machinery resulting an increase in the crop yields and total tea production for domestic and export purposes, Minister of Commerce and Industry, Kamal Nath has said. The package will allow these tea gardens to avail loans and subsidies under the Special Purpose Tea Fund (SPTF) Scheme for rejuvenation and re-plantation. As a medium and long-term measure, a major stepping up of the rate of re-plantation and rejuvenation holds the key to competitiveness of the Indian tea industry, given the high age profile of tea bushes throughout the country, the Minister said. Over 2 lakh hectares, which fall in the vulnerable category of low yielding areas is to be targeted for re-plantation and rejuvenation, the Minister said. In order to address the problems of the closed tea gardens, the government had appointed expert committees to make an in-depth study of gardens lying closed in the States of Assam West Bengal, Kerala and Tripura and suggest a package of measures for their viability and revival. Considering the reports and recommendations of the committees, the Government has approved a rehabilitation package for closed tea gardens. The package is aimed at reviving the closed tea gardens in the interest of tea garden workers and considering the importance of the industry in the export performance of the country, Kamal Nath said. The package provides for restructuring of existing outstanding bank loans of closed tea gardens by converting it into term loans with a moratorium of five years. The recovery of the outstanding converted loans would start from sixth year onwards and up to the 10th year. The accumulated penal interest on the loans will be waived. The banks would charge a simple rate of interest of 11 per cent per annum on the restructured loan. There will be a moratorium of one year for payment of the interest. The accumulated simple interest is to be shared equally by the banks, Central Government and the beneficiaries to the extent of one-third each. The loans advanced by the Tea Board to such gardens would be waived. After financial restructuring these gardens would become eligible to obtain loan and subsidy from the Tea Board under Rs.4,500 crore SPTF scheme for rejuvenation and re-plantation. They will also become eligible to get 25 percent subsidy for up gradation and modernisation of their factories. An interest subsidy at the rate of 3 percent on the working capital loans would be provided by the government for a period of five years on the working capital loans that will be taken by such gardens for resumption of their operation. The Chairman of Tea Board, has been appointed as the nodal officer for implementing the rehabilitation package, official sources said. |
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