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The Tea Board has recommended to Union Government projects worth over Rs 1,000 crore in response to the representations of its members from the South.
“These relate to Rs 600 crore for factory upgradation subsidy, Rs 300 crore for small grower directorate and production worth several crores of rupees by factories awaiting licence.
While some relate to 12th Five Year Plan beginning April, others will have immediate effect.
These schemes are for the industry in the country as a whole, not just confined to the South,” Dr S. Ramu, member representing factories, told Business Line .
UPGRADATION SUBSIDY
“As we feared that the factory upgradation subsidy scheme was being abruptly ended with the Board's office in Coonoor disallowing fresh applications and stopping post-installation inspection so as to reject 1,085 applications in the pipeline, we represented for the continuation of the scheme in 12th Plan with higher subsidy component. The Board has recommended this,” said Mr P. Viswanathan, representing Parliament on the Board.
“We were informed at the recent Board meeting in Coonoor that the subsidy is proposed to be raised to 40 per cent from the present 25 per cent for machinery manufacturing orthodox tea and equipment used for value-addition. The ceiling is proposed to be increased from the present Rs 25 lakh a year to Rs 1.5 crore for machinery and Rs 2 crore for value-addition for the five year period.”
“The outlay for the scheme is sought to be Rs 500 crore. Besides, applications in the pipeline worth about Rs 100 crore would be processed once funds were received from Centre,” he said.
“Our long pending demand for constituting small grower directorate is coming to reality with Board's recommendation in 12{+t}{+h} Plan with an outlay of Rs 300 crore. This will benefit 1.61 lakh small growers in the country including over 60,000 in Nilgiris for whom a separate Joint Director will function in Coonoor,” Ms Koshy Baby, member representing small growers, said.
LICENSES
“The Board has decided to process in time applications for granting licence to bought-leaf factories. We had raised the issue of 35 Nilgiri factories whose application has been pending for long of which, many relate to ownership change. The Board has confirmed action on these, which means, production worth several crores of rupees can take place,” Dr S Ramu, said.
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