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Background of its Formation

During the period from 1960 to 1970 the tea industry as a whole faced a grim situation due to stagnation of production and price of tea. The situation was further aggravated due to introduction of Foreign Exchange Regulation Act compelling the foreign tea companies to dilute their shareholder in tea companies. As a result almost all foreign tea companies started to sale their properties to willing Indian Partners/ individuals. During this period due to inadequate profits many tea garden owners stopped investing funds in the tea gardens and some good tea gardens became sick. Under the above circumstances, some speculative individuals, business organization started purchasing tea gardens in Assam without having any tea background.

To protect the tea industry being the biggest industry in Assam employing several lakhs of employees, the Assam Tea Corporation Limited was established and it was registered as a Company under the Companies Act 1956 on 9th February 1972 with the following promoters to take over tea gardens in Assam.

        1. Shri D. Das - The then Chief Secretary, Assam
        2. Sri K.P. Baruah - The then MD, Assam Financial Corporation
        3. Dr. R.N. Das - The then Project Manager, AIDC
        4. Dr. N.K. Bezbaruah - Tea Planter
        5. Sri A.D. Adhiakari - The then Director of Industries
        6. Sri M. Das - The then MD, AIDC
        7. Shri U.C. Baruah - The then OSD, AIDC


Objectives

  1. To acquire, purchase and take over tea estates in Assam that are offered for sale from time to time which ATCL considers profitable with all or any of its fixed and floating assets, goodwill, rights, licenses, quota rights etc and to pay for the same and to carry on the said business in such a manner and on such a scale as may be considered desirable from time to time.

  2. To promote, purchase, lease, take control of, manage and or develop tea estates in Assam after being fully satisfied about their economic viability on a voluntary basis through negotiations with a view to fulfilling one or more of the following:

    1. To safeguard the future of the tea industry.

    2. To protect the interest of the workers and increase employment potentialities particularly for surplus tea garden labourers

    3. To avoid possible speculative trends in acquisition and management of tea estates.

    4. To avoid concentration of ownership of tea estates in a few hands.

  3. To carry on the business of plantation of tea, coffee, rubber, paddy, sugarcane, cotton, fruits and other crops, plants, trees, timber and other commodities.

  4. To cultivate, grow, produce, process, manufacture and to buy, sell and resell either as raw materials or as finished product all or any of the items in (c) above.

  5. To organize and carry on either directly or through authorized agents the sale as as raw materials or as finished products in India and abroad or tea, paddy, cotton, sugarcane, timber, fruits and other crops, plants and trees or other commodities.

  6. To carry on at all or any of its stages the business of plantation, processing, manufacturing and marketing of all or any of the aforesaid crops, minerals, trees, plants, timber and other like commodities.

  7. To acquire by payment in cash or by any other arrangement any property either for enabling ATCL to grow, produce, process, manufacture and buy, sell and resell any of the crops, fruits, plants, trees, minerals and other commodities mentioned in (c) above or for any other purpose.

  8. To organize transportation of ATCL’s goods or form subsidiaries of ATCL to transport its goods.

  9. To form subsidiaries to manufacture agricultural implements or engineering goods connected with the business of ATCL.

  10. To amalgamate with any person or company whose objects and business are similar to those of ATCL.

  11. And generally to do and perform all such other things as may be incidental or conducive to the attainment of the above objects or any of them.

Immediately after incorporation, ATCL approached the Assam Government to subscribe to its share capital and the government of Assam came forward and started contributing towards the share capital of ATCL.

The Authorized Share Capital of the Corporation was raised at different date as under:

As on 09/02/1972

(Rs. in Crores)

As on 25/06/1982

(Rs. in Crores)

As on 14/09/1989

(Rs. in Crores)

2.00

10.00

30.00

The Assam Tea Corporation Ltd. started purchasing tea gardens from late 1973. The lists of the gardens purchased by the ATCL are as under:

Sl. No.

Name of the Garden

Effective Date of Purchased

Date of Conveyance

1

Dejoovalley T.E.

01.01.1973

18.09.1973

2

Naganijan T.E.

01.01.1973

18.10.1973

3

Bholaguri T.E.

01.01.1973

21.12.1973

4

Amluckie T.E.

01.01.1973

06.01.1974

5

Rajabarrie T.E.

01.01.1974

25.03.1974

6

Cinnamara T.E.

01.01.1973

21.11.1974

7

Sycotta T.E.

01.01.1973

21.11.1974

8

Deepling T.E.

01.01.1976

30.12.1975

9

Loongsoong T.E.

01.01.1976

21.06.1979

10

Longai T.E.

01.01.1977

30.03.1981

11

Isabheel T.E.

01.01.1977

30.03.1981

12

Negheritng T.E.

01.01.1978

10.07.1978

13

Rungamatty T.E.

01.01.1978

10.07.1978

14

Messamara T.E.

01.01.1978

10.07.1978


In addition to the above, the Corporation had to take over management of the following sick gardens on different dates to save these gardens from closure and to avoid unemployment of several thousands of tea gardens workers.

        Bidyanagar T.E. - on 16.09.1975
        Mandakata T.E. - on 01.07.1975
        Letekoojan T.E. - on 28.03.1974
        Socklatinga T.E. - on 08.01.1979

Through the Corporation had purchased / taken over management of quite a number of gardens scattered in the different districts of Brahmaputra and Barak valley, most of which were economically very weak. Subsequently, Mandakata, Letekoojan and Socklatinga tea estates were handed over to their original owners while Bidyanagar TE is still under management of ATCL.