Rehabilitation Package For 33 Tea Gardens Closed In Kerala

New Delhi: The Department of Commerce is proposing a revival package for 33 tea gardens lying closed in Kerala, Assam and West Bengal.The rehabilitation package for closed tea gardens is now engaging the attention of the Group of Ministers on plantation sector, headed by the Union Minister of Agriculture and Food, Mr Sharad Pawar. Once the GoM works on the nitty-gritty of the issue, it will be send to the Cabinet Committee on Economic Affairswhich will take a final call. The 33 closed tea gardens, 17 were in Kerala, 14 in West Bengal and two in Assam.
The price recovery from 2004, 103 tea gardens had reopened, leaving 33 tea gardens closed as on April 1, 2007. The outstanding loans of the closed 33 tea gardens amount to Rs 184.05 crore. The loans might probably be converted into term loans with a moratorium period of five years. The simple interest on bank loans would be about Rs 80.7 crore and the share of the Government would be Rs 27 crore. The package also proposes waiver of Tea Board loan of Rs 3.92 crore, comprising both principal loan amount and interest. The waiver of damages on Employees Provident Fund (EPF) imposed by EPFO authorities on these closed gardens costs another Rs 18.70 crore. The total amount of working capital is likely to be Rs 51 crore per year, while the financial implication of the interest subsidy for five years adds up to Rs 7.33 crore.