Guwahati, Aug 26: At least 8,000 workers in Assam are facing uncertainty due to “financial instability” of Andrew Yule and Company Ltd, a central PSU under the heavy industries ministries, as it has suffered loss of nearly Rs 100 crores during the 2023-24 financial year.

On Saturday, the Assam government shot a letter to Union Ministry of Heavy Industries to inform about the present condition of Andrew Yule and Company Ltd.

“The ongoing financial instability threatens to trigger labour unrest, escalating the risk of law and order in the tea gardens. Already, delayed payments and statutory dues have led to frequent demonstrations,” Assam Chief Secretary Ravi Kota said in his letter to Kamran Rizvi, Secretary to the Ministry of Heavy Industries.

The letter stated that the Assam government was informed that the financial instability was caused by significant crop losses due to fungal and caterpillar infestations, rising wage costs, and a depressed tea market in 2023-24.

“These factors contributed to a Rs. 99.72 crore loss in the financial year 2023-24. Despite an infusion of Rs. 83 crores over the past two years, the company’s credit rating downgrade has restricted further financial support from banks,” it further said.

The chief secretary sought the union ministry’s intervention given the severity of the situation and potential impact on Assam.

In Assam, the company has 10 out of its 15 tea estates and has business in several other sectors including engineering and electrical segments.

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