Assam Chief Secretary seeks financial assistance for Andrew Yule & Co. Ltd. amidst distress

Assam chief secretary Ravi Kota has sent a letter to the Union ministry of heavy industries pointing to the financial distress faced by Andrew Yule & Co. Ltd., a Central Public Sector Undertaking and sought a soft refundable loan, asset monetization, or liquidating government holdings to mitigate distress.

The company operates in several sectors, including Tea, Engineering, and Electrical, with 10 of its 15 tea gardens located in Assam. Kota in a letter to Kamran Rizvi secretary ministry of Heavy industries stated, “I write to urgently bring to your attention the financial distress faced by Andrew Yule & Co. Ltd., a Central Public Sector Undertaking under your Ministry. The company operates in several sectors, including Tea, Engineering, and Electrical, with 10 of its 15 tea gardens located in Assam. 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”.

He added, “The State Government is given to understand that the challenges include 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 09.72 crore loss in FY 2023-24. Despite an infusion of 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”.