The company will hold negotiations with GE Capital, Citi Corp, Sundaram Finance and Shri Ram Finance in this connection, Telco senior deputy general manager (commercial vehicle sales) UK Goel, told reporters in New Delhi.He clarified that Telco would not have any stake in the proposed agency and it will be entirely on the finance companies to decide on its ownership pattern. Telco would only facilitate setting up of the proposed platform, he said.

As a first step, Telco is organising a three-day truck super bazaar, which got under way here on Wednesday. Old truck owners would be able to exchange their vehicles for the new one at a concessional price. The new Telco vehicles that will be given to the owners will be all Euro-I compliant.The old trucks bought in the event will be reconditioned and resold in the market.

Finance companies, including GE Capital and Sundram Finance, have also put up their stalls in the fair to provide finance schemes. These companies will charge 14 to 15 per cent rate of interest.

"We will assess the response to the event and plan similar events in other parts of the country as well," Goel said.

He said organisers will be satisfied if 20 to 25 deals are struck. The response to the event will determine the time-schedule for the next phase, when the proposed agency will be formed, he said.

Telco said its entire range of commercial vehicles will be made Euro-I emission norm compliant much before the statutory deadline of April 1, 2000."About 90 per cent of Telco's 30-odd models of light, medium and heavy commercial vehicles (M&HCVs) are already powered by Tata Cummins engines, which meet the Euro-I emission norms," Goel said.

Telco was well on its course to enhance its market share to 69 to 70 per cent by March 31 next year, he told reporters."Our market share, which is currently around 66 per cent in M&Hcvs, will grow to 69 to 70 per cent by the end of this fiscal," he said.

Refusing to divulge the target for current year, Goel said the company had sold around 53,000 vehicles in the first seven months of current fiscal and added, "this year's target is much above last year's sales figures of 85,000," Goel said.

He also said the increased competition would not affect the company's market share in any segment. "Delhi is Telco's biggest market accounting for around 10,000 M&HCVs," he said, adding the company also accorded priority to states like Punjab, Karnataka, Maharashtra and Tamil Nadu.