Economy

Exim Bank to focus more on assisting project exports

Our Bureau Mumbai | Updated on March 12, 2018 Published on April 29, 2014

Move will help country earn more foreign exchange

Export-Import Bank of India (Exim Bank) will step up focus on supporting project exports from India to Africa, South Asia and Latin America, according to Yaduvendra Mathur, Chairman and Managing Director.

With commercial banks establishing themselves in international trade finance segments such as letters of credit and pre- and post-shipment credit, Exim Bank has moved up the value chain by extending financial assistance to project exports so that the country earns foreign exchange, he said.

Projects executed by Indian companies overseas involving activities such as engineering, procurement, construction (civil, mechanical, electrical or instrumental) are classified as project exports and they occupy an important place in the country’s export portfolio.

In 2012-13, the Bank had supported 85 project export contracts (valued at ₹24,255 crore) secured by 47 companies in 23 countries.

Diverse projects

The contracts secured by Indian companies in recent years have been diverse in nature, indicating the growing versatility and technological capabilities of Indian project exporters.

Mathur said Exim Bank, which serves as the focal point of the working group on project exports, is helping Indian project exporters source overseas project orders.

The Working Group is an inter-institutional mechanism including Exim Bank, Reserve Bank of India, Export Credit Guarantee Corporation of India Ltd, constituted for the purpose of considering proposals of export of goods and services on deferred payment terms or in execution of a turnkey project or a civil construction contract.

Published on April 29, 2014
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