Credit scheme launched to uplift tea industry
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
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
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
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.