Rs 1300 cr bailout deal for tea firms

The commerce ministry has chalked out a plan for replantation in 60,000 hectares in north Bengal at an estimated Rs 1,300 crore and may emulate the Tata Tea model of workers participation in weak tea gardens, as part of its efforts to revive the industry.

Commenting on the sorry state of the tea gardens in north Bengal, minister of state for commerce Jaipal Ramesh said a portion of the special purpose tea fund (SPTF) would be utilised for the purpose. "We have identified 60,000 hectares where tea plantation is more than 50 years old. It will be replanted," he said.

According to him, the SPTF would be ready for replantation activities by November this year. "It will be done in phases over five years," he added.

Ramesh also instructed the Tea Board to work out a strategy for reviving four weak gardens in Jalpaiguri during an interaction at the Jalpaiguri tea auction center. Ramesh told the tea fraternity that it was the time to look for an alternative model for revival.

"The day of subsidy is over. We are ready to support alternative model for revival," he said.

Citing the Tata example, he pointed out that the model of workers participation in management was successfully done by Tata Tea.

Ramesh opined that the same model could be followed for few close gardens in Jalpaiguri. Incidentally, there are five closed gardens in Jalpaiguri out of 183 gardens in the district.

"We could look for alternative models like workers participation, self help groups etc. I personally believe that it is a good proposition," he added.

The minister of state also hailed the efforts of small tea growers by saying that it is developing an entrepreneurship culture in the state.

"The commerce ministry will go out of way to help the small growers," he added.