GUWAHATI: The Assam government has sent an SOS to the Centre seeking financial relief for Andrew Yule & Co. Ltd., a central public sector undertaking with operations in Assam, failing which labour unrest and consequent law and order crisis cannot be ruled out.
The company, under the ministry of heavy industries, operates in several sectors, including tea, engineering, and electrical, with 10 of its 15 tea gardens located in Assam.
Assam chief secretary Ravi Kota in a letter toKamran Rizvi, Secretary to the Ministry of Heavy Industries on Saturday, August 24, said these gardens are vital to over 8,000 workers and their families in Assam.“ The ongoing financial instability threatens to trigger labour unrest, escalating the risk of law- and-order issues in these tea gardens. Already, delayed payments and statutory dues have led to frequent demonstrations, “ Kota wrote.
He said the company faces several challenges, including 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 ₹99.72 crore loss in 2023-24. Despite an infusion of ₹83 crore over the past two years, the company's credit rating downgrade has restricted further financial support from banks.
“Given the severity of the situation and its potential impact on Assam, I urge your intervention. Possible measures could include a soft refundable loan, asset monetization, or liquidating government holdings. Government of Assam is deeply concerned about the potential repercussions and seeks your prompt support in addressing this critical issue,” the letter said.
