Indian Bank to step up finance for tea sector

Coonoor: Indian Bank has launched schemes to finance the small scale tea sector in the Nilgiris. “Before March 31, we intend to improve our presence in the Nilgiri tea sector. Our package covers all players - growers, green leaf agents, women workers, factory owners, traders and auctioneers,” P.N. Patel, Deputy General Manager and Circle Head, in-charge of the Nilgiris, told Business Line here.

Financial inclusion

He said that a branch would be opened in Kotagiri tea belt before March. Recently, the extension counter in Muthorai Palada was upgraded into a branch. “We have already brought in 100 per cent financial inclusion in the tea belts in the rural areas. We will be opening ATMs in Coonoor, Udhagamandalam, Devarshola, Pandalur and Gudalur before March 3. These will serve the tea interests,” he said.

• Quarterly results of corporates: Check out

Patel said that the package for the small scale tea factories in the private sector ensures a loan at 11.5 per cent interest per annum. “We discover that most factories need working capital assistance and this scheme addresses this issue prominently,” he said.

“For growers, we are strongly supporting the Kundah Tea Revival Scheme, where the growers are helped to replant their age-old bushes with high-yielding clones. This spreads to a large area in the Nilgiris tea heartland of Kundah,” he added.

Rural artisans

On tea auctions, Indian Bank is a settlement banker for Tea serve. “We take care of the settlement needs at the e-auctions conducted in Coonoor every Wednesday,” he said.

Women workers are supported through Self Help Groups (SHG). “We are financing the members of SHGs to take on lease the harvesting of tea green leaves. In all, we have extended loans up to Rs 3 crore from the Coonoor branch to the SHGs. By March 31, we plan to increase this to Rs 5 crore. The repayment is 100 per cent,” said S. Panchalingam Senior Manager, Coonoor branch.