Modernization of tea business by tea board

The tea board is out to modernize the entire process of conducting brew business in the Dooars. Introducing e-auction is a step towards it.

“While we begin with the electronic auction of tea, we plan to carry out an overhaul of the entire system (of conducting business),” said Roshni Sen, the deputy chairman of the Tea Board here today. “It would make no sense in having a high-tech auction system if, for example, the warehouses are not state of the art.”

Accompanied by H.N. Dwibedi, consultant to the tea board, Sen was here with a three-member team from NSCiT, the information-technology arm and a fully-owned subsidiary of the National Stock Exchange. The NSCiT has been engaged by the board to prepare the software and create the infrastructure needed for the new system.

“We are here to take the opinion of all the stakeholders of the industry so that we are able to design a modernization plan to suit the needs of each of them,” Sen said.

This is the board’s second attempt at electronic bidding. Two years ago, it had introduced e-bidding in a phase-wise manner but the initiative was scrapped altogether after the software developed by then consultant proved faulty.

“Our earlier experience threw up a lot of problems, issues and defects,” Sen said. “We would want to use the experience to our advantage this time.”

Dwibedi said the initiative will be much more than just electronic-bidding. “Not just bidding, the new system will integrate the pre-auction, auction and post-auction processes,” he added.

In the e-auction system, it will not be mandatory for a buyer to be physically present at the auction center. He will be able to participate in the auction process through a unique user ID via a computer. “Registered members of a particular center will also be able to keep a tab on the trends of other centers though they may not be able to participate initially,” Dwibedi said.

NSCiT will be preparing a business requirement specification in the next 270 days.

“Once the system is developed, we will introduce it as a pilot project at the Calcutta auction center,” Dwibedi said. “Then we will introduce it in five other centers, including Siliguri.”

However, the board has no immediate plans for introducing electronic-bidding at the North Bengal Tea Auction Center in Jalpaiguri.

Source: The Telegraph

Tea Gardens on auction

The Bengal government is set to offer two closed tea gardens — Ramjhora and Kanthalguri — in the Dooars to prospective entrepreneurs through auction. However, one of the conditions of the take-over is the settling of all dues.

The state land and land reforms department, which had cancelled the leases of both the gardens after their closure, has asked the Jalpaiguri district administration to arrange for open bidding within this month.

“We have been told to advertise in newspapers,” N.G. Hira, the additional district magistrate (general) of Jalpaiguri, said today. “Auction of the gardens will most probably take place on the third week of this month.”

Jairam Ramesh, the junior commerce minister at the Centre, during his visit to north Bengal in October, had said the responsibility of reopening Ramjhora and Kanthalguri rested with the state government. “Of the 13 closed estates, we will decide the fate of 11, either by persuading the old owners to reopen the estates or by acquiring them under Section 16 (D) or (E) of the Tea Act, 1953. The state is responsible for the remaining two, as it has cancelled the land lease.”

The state government has set some riders for the bidders. “Instead of fixing a floor price, we have set a precondition: any bidder interested in acquiring any or both the gardens has to bear the liabilities accrued with banks, provident fund (PF) department, workers and other stakeholders,” Hira said.

The previous management of Ramjhora Tea Estate — closed since August 2002 — has Rs 5.50 crore due with the banks, Rs 59.43 lakh with the tea board and Rs 58.12 lakh with the PF office. The total dues of the workers is Rs 1.64 crore. In Kanthalguri — closed since July 2002 — the workers do not have any dues. However, the earlier management has Rs 2.48 crore pending with the bank and Rs 11.65 lakh with the Tea Board. The figures are available with the Tea Board and district labour office.

“The bidder who gets the garden(s) will have to enter into an agreement with the government, mentioning details like when and how the liabilities would be cleared,” said Hira.

Source: The Telegraph