Interest Subvention on Working Capital for Tea Industry Assam
Overview
Under the Assam Tea Industries Special Incentives Scheme, the state government provides interest subvention on working capital loans taken by tea garden enterprises. This initiative helps small and medium tea businesses manage their seasonal cash flow more effectively.
Objective
The scheme is designed to reduce the financial burden on tea producers in Assam by lowering the effective interest rate on working capital borrowings. It supports the sustainability of the tea sector, which is a critical part of Assam’s economy and employment landscape.
Benefits
- Interest subvention on working capital loans from approved banks
- Reduces operational costs for tea garden owners
- Supports both established tea estates and small growers
- Encourages formal banking relationships within the tea sector
Eligibility
- Must own or operate a registered tea garden or tea processing unit in Assam
- Must have availed a working capital loan from a scheduled bank
- Business must be operating and not in loan default
- The tea enterprise should be registered with the Tea Board of India
Exclusions
- Tea businesses registered outside Assam are not eligible
- Loans used for capital expenditure rather than working capital are excluded
- Tea garden units under liquidation or insolvency proceedings
- Companies that have already received the full benefit under a similar scheme
Application Process
- Obtain a working capital loan from a scheduled bank for tea operations
- Apply for the interest subvention with the Assam Industries Department
- Submit the loan account details and bank certificate
- The department verifies the application and eligibility
- Subvention amount is credited to the applicant’s bank account or adjusted in the loan account
Documents Required
- Tea Board of India registration certificate
- Working capital loan sanction letter from the bank
- Bank statement showing loan utilisation for tea operations
- Business registration documents
- Aadhaar card or company registration proof
- Certificate from bank confirming interest paid
