Jain Irrigation Systems Ltd., the second-largest drip irrigation company in the world, won regulatory approval from India for a non-banking lending venture with the World Bank’s International Finance Corp.
The shares climbed as much as 5.4 percent, the most in seven weeks, after India’s biggest irrigation company announced the RBI’s approval of the venture to loan to farmers seeking private-sector financing of agricultural and water needs.
Loans will be targeted to small farm and rural ventures to increase water-use efficiency including micro-irrigation systems and plastic pipes and agricultural production as well as for solar pumps.
The joint venture will be based in Mumbai and start operations after the monsoon season, Jalgaon, India-based Jain said today in a statement. Netafim Ltd. of Israel is the largest micro-irrigation equipment maker.