The Hindu Business Line : Govt threatens to take over closed tea factories

The Union Minister of State for Commerce and Industry, Mr Jairam Ramesh, has categorically stated that his Ministry will invoke Sec 16 E of the Tea Act 1953 against closed tea factories in the country.

Under this section the Government can take over tea-estates without investigation if they stay closed for more than three months in order to find a new owner.

The Act has never been invoked in the last 54 years, he said.

The Minister, who was in Kumili on Saturday in connection with the reopening of the first closed tea factory of the RBT Group in Manjumala in Idukki district, told reporters that “we have given one month’s time for tea-estate owners in Kerala for reopening the closed gardens from today. We will have to think of drastic measures to reopen closed factories”.

The Commerce Ministry will constitute a joint committee to evaluate takeover offers for the closed tea gardens after the expiry of the one-month period.

The owners in Kerala are more serious than owners in West Bengal over reopening closed tea gardens and factories, he said.

Later, speaking at the RBT tea factory function, the Minister announced that Tea Board officials will conduct surprise visits every month to monitor the functioning of the reopened factories.

He pointed out that of the 17 closed tea gardens in Kerala, eight were reopened in the last two months.

Another two are likely to be opened before Onam. He also complimented the management of the RBT group for taking the initiative to reopen the closed factory.

The Minister also sought the cooperation of trade unions for the smooth functioning of the factory in the future also.

As the unit cost, as approved by Nabard, of Rs 2.73 lakh per hectare for re-plantation of tea was found to be insufficient for South India, it has been raised to Rs 3.44 lakh, the Minister said.