The government today notified its policy decision to permit 100 per cent foreign holding in tea plantation. The policy was cleared by the Union Cabinet recently.
As per the new policy, foreign companies can invest up to 100 per cent in tea plantation companies, on the condition that they will divest minimum 26 per cent equity in the Indian company in favour of a resident shareholder or Indian public within a period of five years.
The proposal for inducting foreign capital will have to be cleared by the Centre as well as state governments in case of any future land use change.
