The Hindu Business Line : Tea Board to disburse Rs 15-cr subsidy

Kolkata, Jan. 7 The Tea Board proposes to disburse a sum of Rs 15 crore, by March this year, as subsidy — both pure subsidy and subsidy as part of loan (i.e. loan-cum-subsidy scheme) — under the Special Purpose Tea Fund launched in January 2007, according to Tea Board sources.

A modest beginning in this regard was made in Kochi when Rs 68 lakh subsidy was disbursed to 34 south Indian tea gardens, 29 being eligible for only subsidy. Disbursements for the north Indian gardens are to start.

Demand review

The demand of 29 North Indian gardens for subsidy as part of the loan-cum-subsidy scheme is to come up for review shortly. The subsidy component of these gardens is estimated at more than Rs 2 crore. The demand for another 20 north Indian gardens seeking pure subsidy too is under consideration.

The pure subsidy is generally cleared on the basis of the inspection reports of the Tea Board’s field officers. But loan is a different story, because prior to disbursements of loan proper agreements have to be signed among concerned agencies and securities created — a cumbersome process.

Total applications

Till December 31, 2007, a total number of 137 applications seeking pure subsidy were received by the Tea Board, while another 342 applications were received seeking assistance under the loan-cum-subsidy scheme. Out of the 137 applications for pure subsidy, 108 were from north Indian gardens and 29 from south Indian gardens. Out of 342 applications for loan-cum-subsidy, 326 were from North India and 16 from South India. The loan sought is estimated at Rs 79.66 crore and the subsidy at Rs 49.10 crore.