Assam Chief Secretary Ravi Kota has called on the Ministry of Heavy Industries to urgently address the financial turmoil faced by Andrew Yule & Co. Ltd., a Central Public Sector Undertaking (PSU) under its jurisdiction.
In a formal letter, Kota highlighted the severe financial distress of the company, which operates in sectors including Tea, Engineering, and Electricals.
Andrew Yule & Co. Ltd. manages 10 out of its 15 tea gardens in Assam, which are crucial to the livelihoods of over 8,000 workers and their families. The financial instability has heightened concerns of potential labor unrest, posing a risk of law and order issues in these regions, he said.
“Already, delayed payments and statutory dues have led to frequent demonstrations,” he added.
The Chief Secretary detailed the contributing factors to the company's crisis: substantial crop losses from fungal and caterpillar infestations, rising wage costs, and a depressed tea market in the fiscal year 2023-24. These issues led to a staggering loss of Rs 99.72 crore in the last financial year. Despite receiving an infusion of Rs 83 crore over the past two years, the company's credit rating downgrade has curtailed further financial support from banks.
Kota has urged the Ministry to consider intervention measures, including a soft refundable loan, asset monetization, or the liquidation of government holdings.
“Government of Assam is deeply concerned about the potential repercussions and seeks your prompt support in addressing this critical issue,” he further wrote.
