The project sponsor is TTL, which is part of the Tata Group. TTL is the second largest player in the global tea market.

The company’s shares will be held by the management and employee of the company (15% - 20%), TTL (19%), IFC (19%), and other investors the balance.

The total project cost including capital expenditure and working capital is estimated at $87 million over the period FY2007-2009. The proposed IFC investment comprises of an equity investment of up to $7.8 million.

7.87 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	7.87

* These investment figures are indicative

TTL currently owns a total of 24 plantations in the north east of India. The total grant area under the plantations is approximately 24,000 hectares with about 20,000 hectares in Assam and 4,000 hectares in West Bengal. The company’s head office will be located in Gauhati.

The project is expected to lead to:

- Increased sustainability of plantation operations through an innovative business model.
- Preservation of jobs for more than 30,000 people currently employed in the plantations and creation of additional jobs in the alternative crop sector.
- Increased business for small holders that supply green leaf to the company.
- Providing leadership in initiating change in the industry.

- Support for an innovative business model in an industry facing a challenging situation;
- Honest neutral broker role to support a fair transaction;
- Mobilizing capital.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

The review of this project consisted of:

- appraising technical, environmental, employment terms and social information submitted by TTL;
- a site visit to TTL’s office in Gauhati; and
- visits to three of the 24 tea plantations owned by TTL in the north east of India.

Full details on the findings of IFC’s environmental and social appraisal are available in the Environmental and Social Review Summary (ESRS) and Environmental and Social Action Plan (ESAP).

Environmental documentation, including ESRS and ESAP translated into local languages, is available at the following locations:

- Guwahati Office
TATA TEA Limited
G S Road
Christian Basti
Dispur
Guwahati 781005

- Nahortoli T E
PO Dikom
Dist Dibrugarh
Assam 786101

- Teok T E
PO Teok
Dist Jorhat
Assam 785112

- Hattigor T E
PO Hatigarh
Dist Darrang
Assam 784524

- Rungamuttee T E
PO Mal
Dist Jalpaiguri
West Bengal 735221