(a) whether large number of tea gardens in the country have closed down especially in North Bengal and Assam;
(b) if so, the details thereof alongwith the names, owner company, area, date of closure and number of workers affected in each of the tea estates; and
(c) the details regarding reasons for such closure alongwith the action being taken by the Government to reopen the closed tea gardens?
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a) and (b): There were 33 listed closed tea gardens as on 01-04-2007. Two more gardens in
Darjeeling district of West Bengal were closed after 01-04-2007 taking the total number to 35
which includes 17 in Kerala, 16 in West Bengal and 2 in Assam. Of these, 22 gardens have been
reopened. There are 13 tea gardens reported to be closed as on 20-03-2010. These include 8 in
West Bengal and 5 in Kerala. The details showing the names, owner company, area, date of
closure and number of workers in each of these closed tea estates are at Annexure-I.
(c): The main reasons for sickness/closure include inherent weaknesses of the gardens
due to poor yields arising out of poor condition of the gardens and factories (affecting
tea quality and price realizations), poor garden management, frequent changes of garden
managers and the management’s excessive reliance on bank debt with negligible fresh equity
infusion. In some of the gardens, the neglect was due to ownership disputes, protracted
litigation and diversion of funds from tea gardens to other activities and in many cases
strained relationship between management and garden workers.
The Government of India has announced a rehabilitation package for revival of closed
tea gardens. The package provides for restructuring of outstanding bank loans, sharing of the
accumulated interest 1/3rd each by the banks, Central Government and the beneficiaries,
interest subsidy on working capital loans, deferred payment of arrear towards PF liabilities,
complete waiver of outstanding loan under the loan schemes of Tea Board and priority in
providing developmental assistance under the ongoing developmental schemes of Tea Board.