GUWAHATI: Assam's Chief Secretary, Ravi Kota, has asked the Ministry of Heavy Industries to quickly deal with the financial problems facing Andrew Yule & Co. Ltd., a central public sector company.
In a formal letter, Kota emphasized the serious financial problems faced by Andrew Yule & Co. Ltd., which works in tea, engineering, and electrical sectors.
The company runs 10 out of its 15 tea gardens in Assam, which are vital for over 8,000 workers and their families. The financial troubles have raised worries about possible labor disputes, which could lead to law and order issues, he noted.
Kota explained that the company is struggling due to significant crop losses from fungal and caterpillar attacks, higher wage costs, and a weak tea market in the fiscal year 2023-24. This has resulted in a massive loss of Rs 99.72 crore in the last financial year.
Although the company received Rs 83 crore in support over the past two years, its downgraded credit rating has made it hard to get more financial help from banks.
He has asked the Ministry to consider various options to help, such as a soft refundable loan, selling assets, or liquidating government holdings.
Kota expressed the Assam government's deep concern about the potential fallout and requested prompt assistance to address this urgent issue.
Earlier, in anticipation of the ongoing labourers’ unrest in 10 tea gardens deteriorating further, the Assam government has written to the Centre to take appropriate measures to contain the situation.
Andrew Yule & Company Ltd., a central public sector undertaking, owns the 10 tea gardens in Assam. Due to delays in payment of wages and other dues, the labourers in these gardens have been restive for some time now. The situation emerging from this unrest has become a cause of concern to the state government, and it has now been forced to communicate this concern to the central government.
The tea gardens belonging to Andrew Yule & Co. Ltd. are Khowang, Bheman, Hingrijan, Basmatia, Desam, Tingkong, Rajduar, Hoolungoorie, Murphulani, and Bogijan.
Sources said that in view of the approaching Durga Puja, the government is worried that the situation might deteriorate further as the labourers usually expect a bonus on top of their wages and other statutory payments that are due to them from the tea garden management.
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