Date:15/02/2006 URL: http://www.thehindu.com/2006/02/15/stories/2006021503411800.htm

Business

ITA seeks FM's intervention on special tea fund

Special Correspondent

KOLKATA: The Indian Tea Association (TEA) has sought the Finance Ministry's intervention to get the tea plantation rejuvenation scheme going.

"The ITA is keen to progress this concept urgently so that the structure, modalities and operations of the fund can be put in place" an ITA release said adding that this would enable the companies to initiate replantation activity early.

It may be mentioned that in order to revive the north Indian gardens, many of which are nearly a 100 years old, a Special Purpose Tea Fund (CPTF) was proposed. This became necessary since the tea industry which had just entered a revival mode, did not have either adequate internal accruals or access to institutional funds.

While the total fund requirement was estimated at Rs. 4,000 crore, the long gestation period of about 15 years made banks shy away from readily stepping forward to participate in replantation schemes sources said. Efforts are now on to get the scheme going through the participation of NABARD along with a consortium of banks.

In its budget wishlist, the apex industry association urged the Finance Ministry not to reimpose any duty on tea in the backdrop of continuous decline in tea prices.

The ITA said the withdrawal of additional excise duty on tea since 2005-06 had provided cost relief to the industry which should be continued.