The Hindu Business Line : Nod for closed tea gardens' financial package soon

Kolkata May 11 The financial package prepared by the Commerce Ministry for the rehabilitation of the country's 33 closed tea gardens is now before the Planning Commission and the Finance Ministry for consideration, according to Mr Jairam Ramesh, Union Minister of State for Commerce. "Hopefully the Cabinet will clear the package in the next 45 days," Mr Ramesh said, addressing newspersons here on Friday. Kerala has 17 of these gardens, West Bengal 14 and Assam two.

The package, as the Minister explained, would provide for rescheduling of bank loans, infusion of fresh term loans at subsidised rate of interest and sanction of working capital, waiver of all dues to the Tea Board and waiver of penalties for non-payment of various statutory dues.

The package would impose a financial burden of Rs 58 crore on the Union Government and another Rs 80 crore on banks. The owners, too, would be required to make sacrifices, he said. Thus, they would be required to make fresh infusion of funds for modernisation. Also, one-third of the accumulated interest burden would fall upon them.

The Minister said mismanagement by owners had led to the closure of the tea gardens. Low productivity could be a reason but certainly not the major reason. After all, low productivity would affect all gardens while only 33 out of the total 1,600 gardens were closed. Absentee landlords taking not much interest was also responsible for closure of the gardens, he added.

The Minister said he had urged Kerala, Tamil Nadu and West Bengal to follow the Assam Government's model under which permission had been given to tea gardens to utilise five per cent of their lands for non-tea agriculture related activities. "Kerala has ruled it out, while Tamil Nadu has agreed to give serious thought to it and West Bengal is examining it," he said pointing out that for the implementation of the Assam model, West Bengal Government might be required to amend West Bengal Plantation Act.

Mr Ramesh indicated that e-auction of tea should hopefully become operational from October-November.

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