Financial instability of central PSU tea company pushes 8,000 workers in Assam to uncertainty

Guwahati: The future of 8,000 workers in Assam stares at uncertainty due to “financial instability” of Andrew Yule & Company Ltd, a central PSU under the heavy industries ministries, with the company suffering a loss of nearly Rs 100 crores during 2023-24, Assam government told the union ministry of heavy industries in a letter on Saturday.

In Assam, the company has 10 out of its 15 tea estates and has business in several other sectors including engineering and electrical segments.  

“The ongoing financial instability threatens to trigger labour unrest, escalating the risk of law and order in the tea gardens. Already, delayed payments and statutory dues have led to frequent demonstrations,” Assam Chief Secretary Ravi Kota said in his letter to Kamran Rizvi, secretary to the ministry of heavy industries. 

The letter said that the Assam government was informed that the financial instability was caused by significant crop losses due to fungal and caterpillar infestations, rising wage costs, and a depressed tea market in 2023-24.

“These factors contributed to a Rs. 99.72 crore loss in the financial year 2023-24. Despite an infusion of Rs. 83 crores over the past two years, the company’s credit rating downgrade has restricted further financial support from banks,” it further said.

The chief secretary sought the union ministry’s intervention given the severity of the situation and potential impact on Assam. “Possible intervention could include a soft refundable loan, asset monetization, or liquidating government holdings. The government of Assam is deeply concerned about the potential repercussions and seeks your prompt support in addressing this critical issue,” said the letter.

Published 25 August 2024, 13:37 IST

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}