Calcutta, Jan. 21: ITC today announced a tie-up with UK-based department for international development (DFID) to provide insurance services to farmers in Andhra Pradesh and Madhya Pradesh through its e-choupals.

DFID will provide Rs 5.8 crore in three years to ITC through its Financial Deepening Challenge Fund, an official release said.

Megatop Insurance Services, ITC group firm, will create awareness and provide insurance services to farmers in the two states through ITC’s e-choupals. Deloitte Haskins & Shell has been appointed the administrator of the fund. It will also monitor and supervise the funded projects.

The move is part of DFID’s initiative to develop public-private partnerships to benefit the poor. The fund was unveiled by DFID in July 2001. The fund, with a corpus of £20 million, is working in 15 countries in south Asia and Africa. It provides financial assistance to profit-oriented business organisations operating in financial services sector.

The objective of the fund is to encourage these organisations to design and develop innovative financial products/services for the lower strata of the society. It will help pro-poor projects stabilise in the initial period by covering the costs of setting up, marketing, recruitment and training and subsequent recurring expenses for three years.