An Overview on Tea Development and Promotion Scheme: Boosting Tea Production and Livelihoods in India

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By CMV360 Editorial StaffUpdated On: 03-Apr-2023 01:54 PM

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ByCMV360 Editorial Staff |Updated On: 03-Apr-2023 01:54 PM

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The Tea Board of India has launched the Tea Development and Promotion Scheme (TDPS) to provide financial assistance and enhance the competency of the tea industry. As per the Tea Act of 1953, the tea industry is controlled by the Union Government. The TDPS comprises of 7 supporting schemes, including Plantation Development, Quality Upgradation and Product Diversification, Domestic and International Market Promotion, Research and Development, Human Resource Development, National Programme for Tea Regulation, and Establishment Expenses. Let's explore how the Tea Board provides assistance for Plantation Development under the TDPS.

Objectives of Tea Development & Promotion Scheme

The objective of the first component of the Tea Development & Promotion Scheme is to enhance tea production, productivity of tea gardens, and the quality of Indian tea. It caters to both big growers (with more than 10.12 hectares) and small growers (with up to 10.12 hectares) and comprises of several sub-components. These include replanting and replacement planting, rejuvenation pruning, irrigation, mechanization, and organic certification for plantations. Big growers are eligible for an annual award, while small growers can avail of assistance for Self Help Groups (SHG), Farmers' Producers Organizations (FPO), and an Annual Award Scheme for SHGs and FPOs. Additional benefits for small growers include support for setting up new factories, mini-factories, traceability, publication of newsletters, workshops/training, study tours, strengthening field offices, organic conversion, and special packages for North East, Idukki, Kangra, and Uttarakhand.

For both big and small growers -

• Replanting & Replacement planting
• Rejuvenation pruning
• Irrigation
• Mechanization
• Organic Certification (plantation)

For big growers only -

• Annual award

For small growers only -

• Assistance to Self Help Groups (SHG)
• Assistance to Farmers’ Producers Organizations (FPO)
• Annual Award Scheme for SHGs and FPOs
• Setting up of new factories by FPOs
• Setting up mini-factories
• Traceability and publication of newsletters
• Workshop/training
• Study tour
• Strengthening field offices
• Organic Conversion
• Special Packages for North East, Idukki, Kangra and Uttarakhand

Process of Availing Financial Assistance

The Tea Board of India offers financial assistance to the tea industry through the Tea Development & Promotion Scheme (TDPS). To avail financial assistance under this scheme, the interested parties need to follow a general process.

• Firstly, they need to obtain the application form for financial assistance from the nearest field office of the Tea Board or from the official website of the Tea Board. The application form should be submitted to the nearest field office of the Tea Board at least 30 days prior to starting the field activity.

• After the submission of the application form, the Tea Board conducts a pre-approval inspection to verify the eligibility of the applicant and the proposed activity. Upon successful verification, a Pre Activity Acknowledgement Receipt is issued to the applicant, allowing them to commence the field activity.

• Once the field activity is completed, the applicant needs to submit the post-activity documents to the Tea Board. The Tea Board then conducts a first inspection or post-activity inspection to ensure that the field activity has been completed in accordance with the pre-approved plan.

• In the case of big growers, they are required to maintain the areas properly and keep the Tea Board informed about the same within the specified time schedule.

• Finally, the Tea Board conducts a final inspection to verify the maintenance and completion of the field activity. The financial assistance sanctioned for the activity can then be claimed by the applicant either in instalments or as a lump sum, depending on the activity.

Eligibility Criteria to Avail Financial Assistance under Tea Development and Promotion Scheme

To be eligible for financial assistance under the scheme, applicants must satisfy certain conditions, as outlined below:

• Registration and Ownership: Big growers’ tea gardens must be registered with the Tea Board of India, while small growers (including members of SHGs and FPOs) must possess either an ID card issued by the Tea Board or a unique identification number. They must also present documentation supporting their ownership of land, and possession certificates from relevant land revenue department shall be accepted in the absence of title deeds.

• Membership: Applicants must be current members of either TRA (for tea gardens of North India) or UPASI-TRF (for tea gardens of South India) at the time of application. However, growers with holdings less than 50 Ha are exempt from this requirement.

• Subscription Fee: Full subscription fee must have been paid to the National Tea Research Foundation, except for small growers, identified sick tea gardens, holdings less than 50 Ha, and gardens without tea factories.

• Provident Fund Liability: During the time of application and release of subsidy, the provident fund liabilities of the garden must not be in excess of Rs.10000. In case the limit is exceeded, the application must be accompanied by a court decree or written consent from relevant PF authorities for disbursing PF dues in instalments. This condition is not mandatory for small growers.

• Loan Repayment: The applicant must not be at default in repayment of any of the Tea Board’s earlier loan schemes.

• Abandoned Tea Areas: Abandoned tea areas shall be eligible only after the submission of a fitness certificate issued by TRA/UPASI-TRF/IHBT.

• Compliance: Applicants must adhere to all relevant provisions of the Tea Act and other orders issued by the Tea Board. Any violation will result in the recovery of the subsidy granted, along with an interest of 12% per annum.

• Plant Protection: Big growers need to submit a Plant Protection Code (PPC) compliance certificate issued by TRA or UPASI-TRF. Small growers will receive compliance certificates after a pre-approval inspection by a Development Officer of the Tea Board.

• Application Fee: Applicants must pay a non-refundable application fee of Rs. 5000, which should be remitted electronically to the concerned bank account of the Tea Board. A transaction receipt must be provided along with the application. Small growers need to pay a fee of Rs. 100 only.

• Limit on Applications: Each applicant can submit only one application per activity. However, in case of an additional application for the same activity, it will be clubbed with the first one and considered, provided all scheme conditions are met.

Assistance Quantum for Sub-Components

• Replanting and Replacement Planting: The subsidy will be 25% of the total cost and will be disbursed in two installments. The 1st installment will cover 60% of the subsidy, and the 2nd installment will cover 40% of the subsidy. Note: For Karnataka, the unit cost of Tamil Nadu will apply; for Himachal Pradesh and Uttarakhand, the unit cost of Darjeeling will apply; for Chhattisgarh, the unit cost of Dooars & Terai will apply.

• Rejuvenation Pruning and Infilling: The subsidy will be 30% of the total cost and will be disbursed in two installments. The 1st installment will cover 60% of the subsidy, and the 2nd installment will cover 40% of the subsidy.

• Irrigation (Cost of transport not eligible): The subsidy will be 25% of the total cost and will be disbursed in two installments.

• Mechanisation : The following equipment items are eligible for a 25% subsidy, subject to ceiling limits and excluding transportation charges:

Equipment Item Ceiling Limit (Rs.) -
- Pruning machine 25000

•  Mechanical harvester 40000
  

• Pitting augur 20000
• Mounted power sprayer 10000
• Soil injector 6000
• Soil augur 2000

Annual Award

• Big gardens are eligible for an annual award of one lakh rupees every year for each region.

Organic Certification

• The scheme provides 50% of the certification cost, including renewals, capped at 2 lakh rupees per certificate.

Assistance to Self-Help Groups (SHGs)

The following items are available for assistance to SHGs:

Item Unit Cost (Rs.) -

• Weighing scale 100% of cost, subject to a ceiling limit of Rs.4000 per scale
• Plastic crate Ceiling limit of Rs.350 per crate
• Nylon bag Ceiling limit of Rs.75 per nylon bag
• Pruning machine Ceiling limit of Rs.30,000 per pruning machine
• Mechanical harvester Ceiling limit of Rs.40,000 per harvester
• Power sprayer Ceiling limit of Rs.10,000 per power sprayer

Assistance to Farmer Producer Organizations (FPOs)

The following items are available for assistance to FPOs:
Item Unit Cost (Rs.)-

• Revolving Corpus Rs.20,000 per Ha. Ceiling limit of Rs.5,00,000 per SHG

• Storage godown and office Ceiling limit of Rs.1,00,000 per SHG

• Leaf collection shed 100% of cost, subject to a ceiling limit of Rs.75,000 per shed

• Weighing scale 100% of cost, subject to a ceiling limit of Rs.4000 per scale

• Plastic crate Ceiling limit of Rs.350 per crate

• Nylon bag Ceiling limit of Rs.75 per nylon bag

• Pruning machine Ceiling limit of Rs.30,000 per pruning machine

• Mechanical harvester Ceiling limit of Rs.40,000 per harvester

• Power sprayer Ceiling limit of Rs.10,000 per power sprayer

• Leaf carriage vehicle – tractors/trailers 50% of cost, with a ceiling of Rs.7,50,000 lakhs per vehicle

• Computer & Printer Ceiling limit of Rs.50,000 per computer and printer

• Cost towards Registration The actual cost of Registration or at the rate of Rs.2,000 per member grower, whichever is lower.

• Assistance for Big Factories by FPOs: 40% of the total cost, capped at Rs.2 crores per factory

• Assistance for Mini Factories: 40% of the total cost, capped at Rs.33 lakhs per factory

FAQs on Tea Development and Promotion Scheme

Here are some FAQs on Tea Development and Promotion Scheme:

Q1: What is the Tea Development and Promotion Scheme?

Ans: The Tea Development and Promotion Scheme is a government-sponsored scheme aimed at promoting the growth and development of the tea industry in India.

Q2: Who can apply for the scheme?

Ans: Growers, producers, manufacturers, and entrepreneurs involved in the tea industry can apply for the scheme.

Q3: What activities are covered under the scheme?

Ans: The scheme covers activities such as replanting, rejuvenation pruning and infilling, irrigation, mechanization, and assistance to self-help groups and farmer producer organizations.

Q4: What is the subsidy provided under the scheme?

Ans: The subsidy provided under the scheme varies based on the activity. For instance, the subsidy for replanting and replacement planting is 25% of the total cost, while the subsidy for irrigation is 25% of the total cost.

Q5: What is the application process for the scheme?

Ans: Applicants must submit a single application for each activity they wish to undertake. The application must be accompanied by a non-refundable application fee, compliance certificates (where applicable), and transaction receipts (for big growers).

Q6: What are the ceiling limits for the subsidy provided under the scheme?

Ans: Ceiling limits vary based on the activity and the type of applicant (big grower, small grower, self-help group, etc.). For example, the ceiling limit for a mechanical harvester is Rs. 40,000 for big growers and Rs. 40,000 for farmer producer organizations.

Q7: Can an applicant submit multiple applications for the same activity?

Ans; No, only one application per activity per applicant shall be submitted. In case of an additional application for the same activity, it will be clubbed with the first application and then considered, provided all conditions of the scheme are satisfied.

Q8: How is the subsidy disbursed?

Ans: The subsidy will be released in two installments. The first installment will cover 60% of the subsidy, and the second installment will cover the remaining 40% of the subsidy.

Q9: Is there a time limit for utilizing the subsidy?

Ans: Yes, beneficiaries must utilize the subsidy within one year of the release of the first installment.

Q10: What happens if an applicant violates the Tea Act or other orders from the Tea Board?

Ans: If an applicant violates the Tea Act or other orders from the Tea Board, the subsidy granted will be recovered along with 12% interest per annum.