ABSTRACT

Small Industries - Part II Schemes 2004-05 - Financial Assistance to Small Tea Growers to become members of the Price Stabilisation Fund of Tea Board, Government of India - Orders Issued.

SMALL INDUSTRIES (SIA) DEPARTMENT

G.O.Ms.No. 54
Dated: 2.8.2004

Read:

From the Government of India, Ministry of Commerce and Industry, Department of Commerce Lr.F.No.10/3/2001 Plant (B) dated 24.3.03

From the Executive Director, Tea Board, Ministry of Commerce and Industry, Coonoor Lro.25/42/SG/CNR/PSFS/2003/39 dated 18.2.2004.

From the Industries Commissioner and Director of Industries and Commerce Lr.No.442235/ICM2/02 dated 25.2.04.

From the PSF Trust, Government of India, Ministry of Commerce and Industry, Department of Commerce, Lr.No.PSFT.S.15/450/2003-04 dated 5.4.04.

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ORDER:

The Ministry of Commerce and Industry, Government of India has announced the Price Stabilization Fund Scheme to stabilize the prices of the Plantation Crops which includes Tea. Accordingly the Small tea growers having land holdings upto 4 hectares under tea are eligible to become members of the scheme. Out of 46,490 eligible small tea growers in Tamil Nadu, the scheme will cover 23,000 growers only under this norm. Each participating growers would be required to make a non-refundable initial contribution of Rs.500 as entry fee to the Fund and open an Price Stabilisation Fund account with a nationalized bank. In normal years when the prices remain within the price spectrum band, the grower will be required to deposit Rs.500 each year to the Price Stabilisation Fund Account by a specified date. The Government of India will also contribute upto Rs.500 to the individual grower’s account in these years. When price pierces the upper band, the grower’s contribution will be minimum Rs.1000 while the Government of India will not make any contribution. When prices fall below the lower band, the grower will not be required to contribute any amount, while the contribution from the Government of India will be upto Rs.1000 per account. Contribution of Government of India will be pro rata reduced if the interest earning from the corpus is insufficient. In a normal year that is when prices remain within the price spectrum band, the grower subscribing to the Scheme will not be allowed to withdraw any amount from his account. When prices worsen, that is, when prices fall below the lower bound, the subscriber shall be permitted to withdraw an amount upto Rs.1000.

2. His Excellency, the Governor of Tamil Nadu in the State Legislative Assembly on 4.2.2004 has announced the decision of the State Government to make initial contribution on behalf of 23,000 small tea growers to the Fund at an estimated cost of Rs.115 lakhs. As the small tea growers are reeling under steep fall in tea prices, they could not pay the initial deposit of Rs.500/-. The Industries Commissioner and Director of Industries and Commerce has therefore requested the Government to sanction Rs.115.00 lakhs as one time grant towards initial deposit amount of Rs.500/- per member to the eligible 23,000 small tea growers under Part II Schemes 2004-05.

3. The Government after careful examination have decided to accept the proposal of Industries Commissioner and Director of Industries and Commerce in para 2 above.

4. Sanction is accorded for incurring an expenditure not exceeding Rs.115.00 lakhs (Rupees One hundred and fifteen lakhs only) towards subscription amount of Rs.500/- per member to the eligible 23,000 small tea growers.

5. The expenditure sanctioned in para 4 above shall be debited to the head of account:

"2407 - Plantations 01 Tea - 800 other Expenditure - II State Plan - JA Assistance to Small Tea Growers for Price Stabilisation Fund of Tea Board (GOI) - 09 Grants in Aid - 03 Grants for Specific Schemes (DP Code No.2407 01 800 JA 0938)

6. The Industries Commissioner and Director of Industries and Commerce is authorised to draw and disburse the amount sanctioned in para 4 above to the Executive Director, Tea Board, Coonoor along with schedule of Small Tea Growers who are eligible under this Scheme.

7. This order issues with the concurrence of Finance Department vide its U.O.No.31823/Ind/2004-1, Dated: 19.5.04.

(BY ORDER OF THE GOVERNOR)

D. RAJENDRAN
SECRETARY TO GOVERNMENT.

To

The Accountant General, Chennai-6/18/35

The Accountant General, Chennai-6/18/35 (By Name)

The Pay & Accounts Officer (E), Chennai-5.

Copy to:

The Chairman, Tea Board, Kolkata.

The Finance Department, Chennai-9.

All Section in Small Industries Department

SF/SC

//FORWARDED BY ORDER//

SECTION OFFICER.