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HomePosts Tagged "State Bank of India"
Agrotech, Company News, Finance, India, Oilseeds, Schemes - Banks

To enable farmers, develop and maintain, their oil palm garden during gestation period of first 5 years.

Godrej Agrovet’s Oil Palm Business announced the launch of first-of-its-kind finance offering for oil palm farmers in partnership the State Bank of India (SBI). A product jointly developed by the company and country’s leading public sector bank will enable farmers avail loan for setting up micro irrigation facility, set up fencing arrangement to protect from cattle grazing and improvement of tube well at their oil palm farms. Introduced with an objective of aiding oil palm growth by improving Fresh Fruit Bunches (FFB) productivity, it will act as a catalyst to maintain juvenile gardens during the gestation period of first 5 years.

Sougata Niyogi, CEO, Oil Palm Business, Godrej Agrovet said, “The partnership with SBI is a testament of our company’s efforts to improve farmer’s confidence in sustainable oil palm farming. With no income visibility during the long gestation period, this partnership will aid bridge the gap for their finance needs during the initial years.”

“The implementation of National Mission on Edible Oils – Oil Palm (NMEO-OP) has generated a new sense of excitement and momentum in the oil palm industry since its launch in August 2021. Being a leading player, we will continue to provide solution for industry’s expansion and prosperity,” he further added.

Launched initially for the oil palm farmers of Telangana state, Godrej Agrovet farmers from the states of Tamil Nadu, Odisha, Assam, Manipur and Tripura can now easily avail loan with the ticket-size of Rs 1 Lac to Rs 50 Crore.

Commenting on first-of-its kind Horticulture Loan, K.V.L.N. Murthy, A.G.M. ABU Hyderabad, SBI, said, “We’re happy to partner with Godrej Agrovet in nation’s quest to reduce import of oil palm. With no security needed for a loan up to Rs 1.6 Lacs, the product is ideal for farmers venturing into oil palm farming for the first time. With the entire process being facilitated by Godrej Agrovet, a farmer can easily understand product integrities and apply for the same at Samadhan centers of the company. We’re confident of extending this product to more oil palm farmers of our country in the coming months.”

Godrej Agrovet is the largest oil palm processor in India and works directly with the farmers for the entire lifecycle of their crop. With 65,000 hectares of palm oil under cultivation across the country, the company plans to increase cultivation by 1 Lac hectares by 2027. Through its Samadhan centres, a one stop solution centre, it provides a comprehensive package of knowledge, tools, services, and solutions to oil palm farmers. Each Samadhan centre intends to support the planting of 2,000 hectares of oil palm and help farmers achieve a sustained productivity in mature gardens through the use of modern agricultural technologies and expert advice. The partnership with the SBI is another step to boost income and productivity of oil palm farmers.

To enable farmers, develop and maintain, their

Agrotech, Company News, Finance, India

SBI will provide loans at the market rate to the customers of IoTech World Aviation without any mortgage, a 3 per cent concession in interest.

State Bank of India (SBI) and drone manufacturer IoTech World have come together to provide agri-drones to farmers at affordable prices and low loans. The two companies signed a formal agreement. The SBI will give loans at 3 per cent less than the market rate to the farmers, who buy agricultural drones from IoTech World Company.

Deepak Bhardwaj, the co-founder IoTech World, said that the SBI will provide loans at the market rate to the customers of IoTech World Aviation without any mortgage, a 3 per cent concession in interest. This exemption will be given under the Government of India’s Agriculture Infrastructure Fund (AIF).

Bhardwaj said that Agri-drones will prove a boon for India’s agriculture sector. The loan facility provided by SBI will prove to be very helpful for those farmers who were not able to buy drones due to a lack of institutional finance facilities.”

Anup Upadhyay, IoTech World Navigation co-founder said drones help in the optimum use of fertilizers and pesticides in agriculture, thereby reducing the cost of farming. The use of agriculture-drone is not only helpful in increasing the yield, but also saves a lot of time. Agri-drones are going to prove a miracle for Indian agriculture. It is noteworthy that IoTech World Navigation was started in the year 2017. This company manufactures agricultural drones.

SBI will provide loans at the market

Biofuel industry, Finance, Schemes - Banks, Sustainable Energy

The agreement is designed to ensure that payment received by ethanol plants is utilised for servicing the finance extended by these banks

The Oil Marketing Companies (OMCs) – Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) have entered into a long-term purchase agreement (LTPA) for upcoming dedicated ethanol plants across India. The first set of Tripartite-cum-Escrow Agreement (TPA) was signed among OMCs, project proponents and banks of the respective ethanol plant projects in presence of Sandeep Poundrik (IAS), Principal Secretary, Department of Industries, Government of Bihar, Ashwani Bhatia, MD State Bank of India and Sukhmal Jain, Executive Director I/C, Marketing Corporate, BPCL.

State Bank of India, Indian Overseas Bank and Indian Bank are three banks who are involved in this tripartite agreement with OMCs and project proponents. The agreement is designed to ensure that payment received by ethanol plants is utilised for servicing the finance extended by these banks.

As per the agreement, ethanol produced by these dedicated ethanol plants shall be sold to OMCs for blending with Petrol as per Govt of India’s Ethanol Blended Petrol (EBP) Program. Payment towards the supply of ethanol shall be credited to the escrow account maintained with the financing bank to ensure servicing of the loan as per schedule. TPAs were signed with Micromax Biofuels, Bihar, Eastern India Biofuels, Bihar, Muzaffarpur Biofuels, Bihar, K P Biofuels, Madhya Pradesh and Visag Biofuels, Madhya Pradesh.

In Ethanol Supply Year 2021-22, India achieved 9.9 per cent ethanol blending, consuming 186 crore litre of ethanol, saving over Rs 9000 crores of foreign exchange. However, the government has advanced the target of achieving 20 per cent blended ethanol by 2025, which is commonly known as E20 target. The major challenge is the deficit of ethanol to achieve this target. As per E20 scenario, the country requires 1,016 crore litre of ethanol to achieve the target in 2025-26. But, there is a deficit of approx. Rs 650 crore of ethanol as per the current availability. These five projects are likely to contribute to around 23 crore litres of ethanol per annum.

Ethanol blended petrol not only gives us a cleaner environment as it produces 38 per cent lesser carbon dioxide emission, as well as, supports the rural economy with investment in rural areas and employment generation.

The agreement is designed to ensure that