Exim Bank plays the role of a coordinator and facilitator for the promotion of project exports and serves as the focal point of the Working Group on Project Exports covering overseas industrial turnkey projects, civil construction contracts, supplies as well as technical and consultancy service contracts.
The bank is equipped to offer a comprehensive financing package to the Indian project exporters including funded support, project related guarantee facilities and issuance of letters of credit on their behalf towards third country imports for overseas projects. The bank has also supported SMEs from various industry sectors to tap the international markets. It provides market advisory services to help companies in locating prospective clients and strives to support rural industries through its Grassroots Initiatives and Development Programme.
Exim Bank's major programmes includes Lines of Credit (LOCs) and Buyer's Credit under NEIA (BC-NEIA). The bank extends LOCs to overseas financial institutions, regional development banks, sovereign governments and other entities overseas. This enables buyers in those countries to import developmental and infrastructural projects, equipment, goods and services from India on deferred credit terms. Indian exporters can obtain payment of eligible value from Exim Bank, without recourse to them, against negotiation of shipping documents. Under the LOC extended at the behest of the Government of India, the bank reimburses upto 100 per cent of the contract value to the Indian exporters, upfront upon the shipment of goods. LOCs offer a risk-free, non-recourse financing option to Indian exporters.
The Bank's strong emphasis on increasing project exports from India has been enhanced with the introduction of the BC-NEIA programme. This is a unique financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters and serves as an effective market entry tool to traditional as well as new markets in developing countries, which need deferred credit on medium or long term basis. The response to the programme has been encouraging.
(Communication by the management of the company)