The Hindu Business Line : Signing of special tea loan fund pact by June

Kolkata May 2 The formal signing of the first round of loan agreement under the Special Purpose Tea Fund (SPTF) is expected to be done latest by June 27, according to informed sources.

It might be noted that Legal documents such as loan agreement and mortgage deed have been prepared in consultation with the Tea Board's solicitors. Also, the terms and conditions for the retainership of the advisers to SPTF, namely, SBI Capital Markets and Pegasus Advisory Services have been finalised and the MoU has been signed.

A sum of Rs 30 crore, received from the Union Government as initial contribution, has been kept as fixed deposit with State Bank of India. Having estimated tentative requirement of funds, an information memorandum is under preparation for seeking the loan amount from the banks.

Directive to brokers

Meanwhile, a directive has been issued under the Tea Market Control Order to all registered brokers to issue their consent letters to the borrowers for deduction of the loan dues at the point of sale through auctions.

A meeting of the Apex Monitoring Committee is to be held shortly for considering some important policy issues relating to SPTF. A comprehensive manual of SPTF has been published and the soft copy of it has been e-mailed to tea estates having e-mail addresses.

The manual is available for sale to the tea gardens, it is learnt.