Credit scheme launched to uplift tea industry

Anjana Samarasinghe

TEA: The Tea Development Project Revolving Fund credit scheme was launched yesterday. Government has provided Rs. 1100 million for the credit scheme. The funds for the credit scheme consisted of repayments made by the people who had taken loans from the Tea Development Project funded by ADB.

Under this credit scheme funds will be provided for tea replanting, replanting in blocks, planting additional crops, setting up tea nurseries, tea factory modernisations and utilization of latest technology in tea industry.

Deputy General Manager (Development) of Tea Small Holdings Development Authority M. B. Cyril said that main objective of the credit scheme is to uplift the tea smallholders and small scale factory owners in the industry and also facilitating these industrialists in obtaining quality standards.

Through this scheme Rs 750 million has been allocated to provide credits for replanting, planting additional crops and setting up tea nurseries. Nearly Rs 350 million has been allocated for factory modernization.

Under this credit scheme tea smallholders will have a grace period for repayments and during this period they will have to pay only the interest. They will also be allowed a period of five to thirteen years for repayments.

The annual interest rate will be 9% and replanting authority expects to contribute 50% of the interest, he said. Tea smallholders could apply for this credit scheme through the commercial banks, development bank, leasing companies and other financial institutes.