Tea, coffee sectors get relief packs

The government on Thursday approved a one-time package for tea industry involving Rs 93 crore and a comprehensive package to provide relief ...

The government on Thursday approved a one-time package for tea industry involving Rs 93 crore and a comprehensive package to provide relief to coffee growers reeling under high interest burden.

This was decided at the Cabinet Committee on Economic Affairs (CCEA), which met under the chairmanship of Prime Minister Manmohan Singh. Briefing reporters, Finance Minister P. Chidambaram said, “The approved schemes will be implemented by the Tea Board during the remaining 10th plan period with the funds to be made available from the special fund created with collections of additional duty of excise on tea.’’

On the coffee package, he said the CCEA has approved equal sharing of the total interest burden on special coffee term loans during the three-year moratorium period of Rs 287.1 crore amongst the banks.

The CCEA also approved the transmission project associated with Rajasthan Atomic Power Project to be established by Power Grid Corporation at an estimated cost of Rs 499.45 crore. The CCEA approved the transmission system for Rapp-5 and 6. The total cost includes interest during construction of Rs 22.38 crore, Chidambaram said.

Tea, coffee sectors toast packages

Kolkata: CCEA’s relief packages for the coffee and tea sectors have come as timely succour to both industries. “The package announced has largely met the expectations of the industry and will go a very long way towards stabilising the coffee industry, which has been labouring under serious stress the last four years,” Anil Bhandari, President, United Planters Association of South India (UPASI), said. C.K. Dhanuka, Chairman of Indian Tea Association (ITA) said a begining has been made for reviving the industry. Although the CCEA has granted only Rs 3 per kg against the association’s request of a subsidy of about Rs 7 per kg of leaf production — as incentive for switching to orthodox — he’s still happy. —ENS