First round of SPTF agreement signed in North Bengal: Ramesh

Kolkata, Jun 29 (UNI) Thirty tea companies of West Bengal today signed agreements for getting financial assistance under the Special Purpose Tea fund Scheme (SPTF) for fortyfive tea gardens at a Loan Agreement Signing Ceremony in North Bengal.

This was the first round for SPTF loans for West Bengal. Total investment covered by 45 agreements is Rs 14.83 crore.

Mr Ramesh said that in all over India 33 tea gardens were closed among them 14 were in West Bengal, 17 in Kerala and 2 in Assam, among them five were reopened in Kerala and only one in West Bengal.

The agreements were signed in presence of the External Affairs Minister Pranab Mukherjee, Minister of State for Commerce Jairam Ramesh, West Bengal Minister for Urban Development Ashoke Bhattacharya, Chairman of Tea Board Basudeb Banerjee and others.

The SPTF was launched on January 10 with the objective to extend financial support to the needy tea estates for undertaking replanting, replacement planting and rejuvenation of old tea bushes.

2.12 lakh hectre would be covered over a perioed of fifteen years.

The Centre's contribution towards the programme for the five year period is Rs 567.10 crore by way of capital infusion of of Rs 91 crore and subsidy of Rs. 476.1 crore eqivalent to 25 per cent of the projected expenditure of Rs 1904.4 crore.

Since the SPTF was launched 512 gardens owned by 303 tea companies in India showed expressions of interests. These include 100 companies owning 129 tea gardens from West Bengal. Among these companies 51 applied for loans for 81 tea gardens. Out of these 81 applications 45 tea gardens owned by 30 tea companies were found eligible for assistance.

Mr Pranab Mukherjee said India was lagging behind in competition with Kenya and Vietnam due to prevalence of free trade regime as per WTO agreement.

He said that the technological upgradation and investment needed for rejuvenation and replantation was not taken care of which ultimately led to such unstable condition of the tea gardens.

He informed that in future all the 308 tea gardens would be covered under the scheme.

Mr Ramesh announced that the centre had approved financial package for the development of tea gardens which would be notified in the next few days.

The approved package has four elements--conversion of loans to banks to term loans, waiver of all loans to Tea Board, waiver of penalty of provident fund, gratuity and soft loan for 5-6 years term.

The Minister said that they were trying to reopen Chamurchi Tea Estate in the pattern of Durgabari Tea Estate of Tripura where the workers of the tea garden are running the show.

UNI