Tea estate developments on hold
Regional Plantation Companies (RPCs) have put on hold new clearing and other development work on the estates in the wake of the recent budgetary proposal to limit the acreage owned by the companies.
“A lot of companies have stopped new clearings and other development work on the estates,” former Planters Association Chairman and Hayleys Plantations MD Roshan Rajadurai said on Tuesday.
He noted that due to the confusion that prevailed within the industry over Finance Minister Ravi Karunanayaka’s proposal of plantation companies being limited to only 5000 acres to improve efficiency on the estates, they would be calling for a meeting with the subject minister.
Mr. Rajadurai explained that the government had signed an indenture of lease and these are listed companies on the stock exchange.
He pointed out that the “whole structure will collapse” as they were in the dark on how this new system would be worked out.
Having invested in developing these lands, the companies have been left wondering how their future plans could be worked out since they were unaware of this proposal.
“This is all unilateral and ex parte thinking,” he said adding that if some entity is interested then let them take over but queries who would carry their liabilities.
Work structure on the plantations was to be worked out with the trade unions with the government and companies contemplating on establishing an outgrower model but now this new proposal is said to “compound their problems.”