Triveni teams with SBI to provide rural credit

Triveni Engineering & Industries Ltd (TEIL), one of the leading sugar and engineered-to-order mechanical equipment manufacturing companies, has signed a memorandum of understanding with the State Bank of India (SBI) today for providing banking facilities at Triveni Khushali Bazaars to farmers and other rural people.

According to the MoU, Khushali Bazaar, the chain of one-stop shops that cater to farmers, will help its in rural and semi-urban areas to get finances from the SBI for their various requirements.

TEIL, which claims to have association with over 1 65,000 farmers who supply sugarcane to it, will help in the documentation process for getting loans from the bank.

SBI has agreed to provide loans to farmers at extremely competitive rates of interest for purchasing seeds and planting material, fertilisers, pesticides, cattlefeed, nutrients and other inputs as also the equipment machinery from Triveni Khushali Bazaar.

The bank will then inform TEIL about farmers financed by it so that the payment of sale proceeds of sugarcane can be made through their bank accounts.

These stores sell the entire basket of goods including agricultural implements, diesel, fertilisers, and consumer goods to farmers and the rural population. These stores also help in facilitation of institutional credit, insurance, equipment rental services and consulting.

"As there is complete absence of organised retailing in rural areas, farmers do not have access to quality products and services. Khushali Bazaars aim at increasing the availability of quality products at the best prices to rural and semi urban communities," said Tarun Sawhney, corporate vice-president of TEIL.

The company's focus was to provide farmers with best farm inputs and educate them with the best farming practices to help them increase their crop yield and lower farming costs. Khushali Bazaars did about Rs 15 crore business in the last nine months of its operations and is targeting to double it next year.

To reach out to a larger population in rural areas, the company plans to open 40 Khushali Bazaars by the end of 2006-07. First two new shops will be opened at Badauth and Bagpat in February. At present, the company is running eight Khushali Bazaars in Uttar Pradesh.

"We want to ensure that farmers reduce their travel time to distant markets for purchasing household goods," he said.

Apart from farm inputs and agri consultancy, Khushali Bazaars sell consumer electronics items, building material, tyres, automobiles (tractors & motorcycles), plastic furniture, diesel and many other items. It is also planning to add grocery and other household goods in its list.

TEIL, which recently raised Rs 240 crore from the capital market, is among the three largest producers of sugar in the country. The company has three sugar mills in UP with an aggregate crushing capacity of 40,500 tonnes a day.

Triveni is also one of the largest Indian manufacturers of steam turbines up to a generating capacity of 18 MW.