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Two closed tea estates to get new owners

KOCHI: Two closed tea estates in Kerala are set to be handed over to new owners. The process to identify new owners for the two estates, Peermade and Lone Tree, both belonging to Peermade Tea Company Limited, has already begun. The action is being initiated by the Tea Board of India in accordance with the powers vested with it under Section 16E of Tea Act, 1953. The Act enables the Board to take over closed estates, which do not adopt measures to reopen them in spite of the government’s notice, for the purpose of finding new owners. This is the first time that the clause is being invoked in Kerala.

The new owner could be a person, a firm, a corporate entity or a cooperative. Preference would be given to those who have adequate experience in managing tea gardens. One condition is that the turnover of the prospective owner should not be less than Rs.10 crores. The working capital should not be less than Rs.10 crores. The new owner should be capable of infusing funds for the management of the estate.

Minister of State for Commerce and Industry Jairam Ramesh had recently hinted at the possible course of action. His ministry had been initiating measures to reopen closed tea gardens.

A Special Purpose Tea Fund had been constituted to help those managements intending to revive operations. More than Rs.60 lakh were distributed as subsidy to 34 tea estates in Kerala, Tamil Nadu and Karnataka recently under the revival scheme.

The scheme envisages uprooting of plants which are more than 50 years old and planting of new ones in a phased manner. The plan is re-plant in 40 per cent of the area under plantation within 15 years. The target is 11,000 hectares per year. About 60 per cent of the target was met during the current year, according to officials.

Significantly, though the turnover of the tea industry is not very big, it employs over three million people, out of which 50 per cent are women, an official pointed out.

A few of the closed estates in Idukki including RBT were revived as part of the government’s recent initiatives. The State government has been extending support to the revival scheme, but is understood to be seeking more funds for the rejuvenation scheme.

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