The Tea Board has earmarked a whopping Rs 25 crore for promoting tea in the rural parts of India.

At a panel discussion on Tea & Health on Thursday, Board chairman MGVK Bhanu said that companies would be provided with financial assistance to set up tea cafes in the countryside. Companies will be able to claim a 50 per cent subsidy on their investments in the rural areas in the first year.

During the second and third years, the amount of subsidy will come down to 40 per cent and 25 per cent, respectively. A draft for the promotion campaign will shortly be submitted to the Planning Commission for approval.

The announcement was made after tea companies like Hindustan Unilever Ltd, Wagh Bakri Group and McLeod Russel India stressed on the need for creating a rural connect for the widely popular beverage.

Wagh Bakri Group Executive Director Parag Desai said there was a great need for out-of-home (OOH) strategy to promote tea in the rural areas.

Speaking on the topic, Mr. Desai said, "We have come up with tea lounges in places like Aurangabad, Mumbai and Jaipur and they are doing pretty well. But OOH consumption will be the key driver for penetrating into rural India."

Tea Board also announced its decision to restore its `chai piyo, mast jiyo' campaign, to win back youngsters who prefer softdrinks to tea. The campaign was originally launched in 2006.

The production of tea is expected to surpass 1,115 million kilograms this year.