Exim Bank’s Project Development Company in Africa to boost India's e

Source - Exim Bank

Exim Bank’s Project Development Company in Africa to boost India's exports

The Bank is aiming to increase project exports from the current $27 billion to around $50 billion in five years Sachin Manawaria | The Dollar Business Bureau

Demand for infrastructure projects is expected to increase in Africa (Pic. Akosombo Hydroelectric Power Station on the Volta River supplies with energy almost whole Ghana and half of Togo, West Africa)

The Export-Import Bank of India (Exim Bank), is planning to establish a Project Development Company (PDC) in collaboration with the African Development Bank (AfDB) in Africa to help fund and implement projects in the continent which accounts for around 27% of India’s total project exports. Exim Bank says that the PDC will focus on infrastructure projects that are strategically important for India, and also help Indian projects exporters identify investment opportunities in the growing African market as well. Project exports comprise exports in several sectors such as consultancy, oil and gas, power generation and construction, but most of it is accounted by export of engineering goods and execution of turnkey projects and civil construction projects. Such exports are of high value and on deferred payment terms and require credit which Exim Bank facilitates.

Source - Exim Bank

According to latest estimates, the Bank is supporting execution of around 374 project export contracts worth around Rs.161,083 crore (around $27 billion) in 78 countries across Asia, Africa and CIS by 112 Indian companies. Exim Bank is targeting to increase it to around $50 billion by 2019. Speaking at a seminar conducted by Exim Bank recently, Yaduvendra Mathur, IAS, Chairman & Managing Director, Exim Bank, said that it has a strong belief in Indian Project Exporters’ technical and financial competence, and added that government support will be critical in achieving the $50 billion project exports target. Earlier this year, the Reserve Bank of India (RBI) reduced the approval procedures for project exports and removed the need to get approvals from a Working Group for projects exceeding $100 million. It said that Authorised Banks or Exim Bank can consider awarding post-award approvals without any monetary limit. RBI also removed the time limit of 30-days for the project exporter for seeking post award approval.

This article was published on December 4, 2014.

Exim Bank’s Project Development Company in Africa to boost India's exports

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