Tea Board seeks investor for Demdima - Bids open till March 10, committee to be formed to monitor new management

The entrance to the Demdima Tea Estate

TT, Siliguri, Feb. 14: The Tea Board has invited bids to run Demdima Tea Estate, one of the seven gardens the Centre acquired from the Duncans Goenka Group last month, with several conditions like the creation of a committee that will be authorised to monitor the activities of the new management and decide on retrenchment.

Demdima, located near Birpara in Alipurduar district, has 720 hectares under tea cultivation and nearly 1,500 permanent workers.

Although Demdima belongs to the Duncans, it is operated under the Santipara Tea Co Ltd. The other six estates are run by the Duncans Industries Ltd.

In a notice issued on February 12 by the Tea Board, EOIs (Expression of Interests) were sought for taking over the management of Demdima tea estate as Santipara Tea Co Ltd had failed to meet the obligations under the Tea Act, 1953, and failed in the timely payment of workers' dues like provident fund, gratuity, ration and other fringe benefits.

According to the notice, the company had also defaulted on electricity bills and medical facilities are being provided in the garden by the state government.

"In view of the above facts, Tea Board is desirous of finding out a new entrepreneur who can run the estate as per provisions of the Tea Act, 1953, and the Plantation Labour Act, 1951," mentions the notice.

However, the new owner will not have to clear the dues.

"The notice was issued on February 12 and bids would be accepted till March 10. To ensure that prospective bidders get to know all details about the estate, there will be a meeting for them in Calcutta on February 26. On March 10, after the bids are opened, companies will be short-listed on the basis of parameters put in the notice. They will be asked to explain how they will run the garden," said a Tea Board official.

The Tea Board said the new investor would have control over the garden initially for five years. "It may be extended as per the provisions of the Tea Act but will never exceed 11 years," said the board official.

He said a monitoring committee with representatives of the Tea Board, state government and the erstwhile owner (Duncans) would be formed and it would regularly inspect the tea estate and submit reports to the Centre.

"The new investor cannot retrench any worker or employees without consulting the monitoring committee. If the new management wants to leave the garden, it has to give a two-month notice to the committee," said the official.

The Union ministry of commerce and industry had issued a notification on January 28, asking the Tea Board to take over the management or the control of the seven estates of the Duncans, including Demdima.

The other six are under the Board for Industrial and Financial Reconstruction (BIFR).

"The Tea Board needs a concurrence from the BIFR to seek investments for the six gardens.

The February 12 notice also refers to a case filed by the Duncans Goenka Group in Calcutta High Court against the central government's decision to acquire the seven tea estates.

"A writ petition is pending in the high court. The selection process would be subject to the final decision by the high court," said the Tea Board official.