IDT PATEL

8/19/2019 IDT PATEL

http://slidepdf.com/reader/full/idt-patel 1/23

SUBJECT: IDT

PROJECT ON: Export-Import Bank of India – Role !"n#tion$ and

!a#ilitie$

SUB%ITTED B&: S'C(IN P'TE)

*+,*. /SECTION-B0

SUB%ITTED TO: %ISS NI)I%' P1

/!'CU)T& CONCERNED0

8/19/2019 IDT PATEL


INDE2

,0 Export-Import Bank of India – Role !"n#tion$ 'nd !a#ilitie$

*0 !or Indian Companie$ Exe#"tin3 Contra#t$ O4er$ea$

.0 !or Pro5e#t Exporter$

60 !or Exporter$ Of Con$"ltan#7 'nd Te#8nolo3i#al Ser4i#e$

90 "arantee !a#ilitie$

;0 !or O4er$ea$ Entitie$

<0 O4er$ea$ In4e$tment !inan#e Pro3ramme

=0 Export- Oriented Unit$ Corporate Bankin3

0 !inan#e !or %S%ES

,+0 !inan#e !or ra$$root$ Enterpri$e$

,,0 ' )ine Of Credit

,*0 "ideline$ 'nd Pro#ed"re !or o4ernment Of India S"pported )ine$ Of Credit

,.0 "ideline$ 'nd Pro#ed"re Exim Bank>$ O?n Commer#ial )ine$ Of Credit1

,60 Re$ear#8 @ 'nal7$i$

,90 %arketin3 'd4i$or7 Ser4i#e$

,;0 Export 'd4i$or7 Ser4i#e$ ro"p

,<0 Con#l"$ion

http://www.eximbankindia.in/corporate-banking




8/19/2019 IDT PATEL


INTRODUCTION

Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament “!E

E"P#$-I%P#$ BA&' # I&IA A*+ ,.,/ for pro0idin1 financial assistance to

exporters and importers+ and for functionin1 as the principal financial institution for co-ordinatin1 the workin1 of institutions en1a1ed in financin1 export and import of 1oods and

ser0ices with a 0iew to promotin1 the country2s international trade and for matters connected

therewith or incidental thereto3

Exim Bank has two broad business streams4 one+ the traditional export finance typical of

export credit a1encies around the world and two+ financin1 of export oriented units (export

capability creation)+ which are non-traditional for export credit a1encies3 5ince inception+

Exim Bank has been the principal financial institution in the country for financin1 pro6ect

exports and exports on deferred credit terms3 As per %emorandum PE% (%E%#$A&7%

# I&5$7*I#&5 #& P$#8E* E"P#$5 A& 5E$9I*E E"P#$5) of $eser0e

Bank of India+ the followin1 constitute pro6ect exports4

I3 5upply of 1oods : e;uipment on deferred payment terms

II3 *i0il construction contracts

III3 Industrial turnkey pro6ects

I93 *onsultancy : ser0ices contracts

Exim Bank extends funded and non-funded facilities for o0erseas turnkey pro6ects+

ci0il construction contracts+ technical and consultancy ser0ice contracts as well as

supplies3

urnkey Pro6ects are those which in0ol0e supply of e;uipment alon1 with related

ser0ices+ like desi1n+ detailed en1ineerin1+ ci0il construction+ erection and

commissionin1 of plants and power transmission < distribution

*onstruction Pro6ects in0ol0e ci0il works+ steel structural works+ as well as associated

supply of construction material and e;uipment for 0arious infrastructure pro6ects3

echnical and *onsultancy 5er0ice contracts+ in0ol0in1 pro0ision of know-how+

skills+ personnel and trainin1 are cate1orised as consultancy pro6ects3 ypical

examples of ser0ices contracts are4 pro6ect implementation ser0ices+ mana1ement

contracts+ super0ision of erection of plants+ *A: *A% solutions in software exports+finance and accountin1 systems3

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5upplies4 5upply contracts in0ol0e primarily export of capital 1oods and industrial

manufactures3 ypical examples of supply contracts are4 supply of stainless steel slabs

and erro-chrome manufacturin1 e;uipment2s+ diesel 1enerators+ pumps andcompressors3

Exim Bank+ under powers dele1ated 0ide the PE%+ pro0ides post-award clearance for pro6ect

export contracts 0alued up to 75 ,== million3 Pro6ect export contracts 0alued abo0e 75

,== million need to be pro0ided post-award clearance by the inter-institutional >orkin1

?roup3 he >orkin1 ?roup is a sin1le-window clearance mechanism+ comprisin1 Exim Bank

as the con0ener and nodal a1ency+ $BI @ orei1n Exchan1e epartment and Export *redit

?uarantee *orporation of India td3 E*?*C3 In the case of 0ery lar1e 0alue pro6ects+

officials of %inistry of inance+ %inistry of *ommerce and Industry and %inistry of External

Affairs+ ?o0ernment of India+ are in0ited to participate in the >orkin1 ?roup %eetin1s3 In

order to obtain immediate clarifications for speedy clearance of proposals by the >orkin1

?roup+ the exporters concerned and their bankers are also associated with the meetin1s3 >ith

the same ob6ecti0e+ participation of the main sub-suppliers+ sub-contractors or other

associates and their bankers in such meetin1s is also encoura1ed+ particularly in respect of

proposals for hi1h 0alue contracts3 Exim Bank also plays the role of a financier and pro0ides

funded and non-funded support for pro6ect export contracts of Indian Entities3

Exim Bank also extends fund-based and non-fund-based facilities to deemed export contracts

as defined in orei1n rade Policy of ?#I+ e313+

• secured under fundin1 from %ultilateral undin1 A1encies like the >orld Bank+

Asian e0elopment Bank+ etc3D

• contracts secured under International *ompetiti0e Biddin1D

• contracts under which payments are recei0ed in forei1n currency3

Exim Bank offers the followin1 Export *redit facilities+ which can be a0ailed of by Indian

companies+ commercial banks and o0erseas entities3

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!OR INDI'N CO%P'NIES E2ECUTIN CONTR'CTS OAERSE'S

,0 Pre-$8ipment #redit

Exim Banks Pre-shipment *redit facility+ in Indian $upees and forei1n currency+ pro0ides

access to finance at the manufacturin1 sta1e - enablin1 exporters to purchase raw materials

and other inputs3

Pre-shipment credits are usually extended by exporters2 commercial banks for period upto

,.= days3 Exim Bank extends pre-shipment : post-shipment credit either directly or in

participation with commercial banks3 In order to offer one-stop bankin1 products to export

clients+ the Bank has also been offerin1 short-term pre : post shipment credit either directly or

throu1h exporter2s bankers3 Exim Bank may consider extendin1 pre-shipment credit and post-

shipment credit for periods exceedin1 ,.= days+ on case-to-case basis and sub6ect to the

merits of the case3

*0 S"pplier$ Credit

his facility enables Indian exporters to extend term credit to importers (o0erseas) of eli1ible

1oods at the post-shipment sta1e3

Post-shipment 5upplier2s *redit can be extended to Indian exporters upto the extent of the

deferred credit portion of the export contract+ either in $upees or in orei1n currency3 he

period of deferred credit and moratorium will 1enerally depend on the nature of 1oods ist A

and ist B of %emorandum PE%C or nature of pro6ects+ as per 1uidelines contained in the

%emorandum PE% of $BI3

.0 !or Pro5e#t Exporter$

Export Pro5e#t Ca$8-!lo? Defi#it !inan#in3 Pro3ramme EPCD!

Indian pro6ect exporters (includin1 those under eemed Exports cate1ory) incur expenditure

in rupee or forei1n currency while executin1 contracts i3e3 costs of mobilisation:ac;uisition of

materials+ personnel and e;uipment etc3 Exim Banks facility helps them meet these expenses

for -

a) Pro6ect Export *ontractsD

b) contracts in India cate1oriFed as eemed Exports in the orei1n rade Policy of

India3

Capital E"ipment !inan#e Pro3ramme /CE!P0

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*apital E;uipment inance Pro1ramme *EPC has been concei0ed to cater to capital

expenditure for procurement of capital e;uipment to be utiliFed across multiple contracts3

*EP pro0ides direct access to Exim Bank2s finance for eli1ible Indian companies for

procurement of indi1enous and imported capital e;uipment for executin1 o0erseas pro6ects :

deemed export pro6ects3

60 !or Exporter$ of Con$"ltan#7 and Te#8nolo3i#al Ser4i#e$

Exim Bank offers a special credit facility to Indian exporters of consultancy and technolo1y

ser0ices+ so that they can+ in turn+ extend term credit to o0erseas importers3

90 "arantee !a#ilitie$

Indian companies can a0ail of 1uarantee facilities of different types to furnish re;uisite

1uarantees to facilitate execution of export contracts (includin1 deemed export contracts) and

import transactions3

G) 'd4an#e Pa7ment "arantee /'P0

Issued to pro6ect exporters to secure a pro6ect mobiliFation ad0ance as a percenta1e (,=-H=)

of the contract 0alue+ which is 1enerally reco0ered on a pro-rata basis from the pro1ress

payment durin1 pro6ect execution3

J) Performan#e "arantee /P0

P? for up to K-,= of contract 0alue is issued 0alid until completion of maintenance period

and:or 1rant of inal Acceptance *ertificate (A*) by the o0erseas employer:client3

.) Retention %one7 "arantee /R%0

his enables the exporter to obtain the release of retained payments from the client prior to

issuance of Pro6ect Acceptance *ertificate (PA*): inal Acceptance *ertificate (A*)3

Ot8er "arantee$4 e313 in lieu of customs duty or security deposit for expatriate labour+

e;uipment etc3

!OR OAERSE'S ENTITIES

B"7er$ Credit

#0erseas buyers can a0ail of Buyers *redit from Exim Bank+ for import of eli1ible 1oods

from India on deferred payment terms3 As per %emorandum PE% 1uidelines+ $BI has

authorised Exim Bank to extend o0erseas buyer2s credits up to 75 H= mn for pro6ect

exports without seekin1 appro0al of $BI3

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he facility enables exporters:contractors to expand abroad and into non-traditional markets3

It also enables exporters:contractors to be competiti0e when biddin1 or ne1otiatin1 for

o0erseas 6obs3

Benefits to orei1n *ustomers

• Enables o0erseas buyers to obtain medium-and lon1-term financin1

• *ompetiti0e interest rate a1ainst host countrys hi1h cost of borrowin13

Eli3iFilit7:

Buyers *redit is extended to a forei1n pro6ect company that intends to award the pro6ect

execution to an Indian pro6ect exporter3 he financin1 will be a0ailable to all kinds of pro6ects

and ser0ice exports from India3 acility is a0ailable for de0elopment+ up1radin1 or expansionof infrastructure facilitiesD financin1 of public or pri0ate pro6ects such as plants and buildin1sD

professional ser0ices such as sur0eyors+ architecture+ consultations+ etc3

B"7er>$ Credit "nder NEI'

Buyer2s *redit @ &EIA is a uni;ue financin1 mechanism that pro0ides a safe mode of non-

recourse financin1 option to Indian exporters and ser0es as an effecti0e market entry tool to

traditional as well as new markets in de0elopin1 countries+ which need deferred credit on

medium or lon1-term basis3

7nder this facility+ Exim Bank facilitates pro6ect exports from India by way of extendin1

credit to o0erseas so0erei1n 1o0ernments and 1o0ernment owned entities for import of Indian

1oods and ser0ices from India on deferred credit terms3 Exim Bank will obtain credit

insurance co0er under &EIA throu1h E*?*3 &EIA is a trust set up by the %inistry of

*ommerce and administered by Export *redit < ?uarantee *orporation of India (E*?*)3

acility is a0ailable for pro6ect exports re;uirin1 medium or lon1 term deferred credit3

Eli3iFilit7:

Exim Bank extends the credit directly to o0erseas buyer of pro6ects from India without

recourse to Indian exporter3 Borrower should be o0erseas so0erei1n 1o0ernments or

1o0ernment owned entities3 Amount of oan should 1enerally not be more than .K of the

contract 0alue3 5o0erei1n 1uarantee is needed where the borrower is other than the forei1n

1o0ernment3 Any other security may be stipulated on a case-to-case basis3

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he Pro6ect inance menu of funded and non-funded facilities to Indian exporters+

commercial banks in India and o0erseas entities is 1i0en below4

or Indian Exporters or *ommercial Banks in India

Post-shipment 5upplier2s *redit

Export Pro6ect *ash flow eficit

inancin1 Pro1ram

Pre-shipment *redit in $upee and

orei1n *urrency

inance for Export of *onsultancy and

echnolo1y 5er0ices

inance for eemed Export contracts

*apital E;uipment inance

inancin1 eemed Export contracts

secured 0ia structures includin1 but not

restricted to B# : B## : B## :

B#

etters of *redit : ?uarantees

$isk participation in funded :

non-funded facilities

extended to Indian exporters3

$efinance of Export *redit

or #0erseas Entities

Buyer2s *redit

Buyer2s *redit under &EIA

Export *apability *reation loans extended by the Bank may be classified into three broad

cate1ories 0iF3 finance for o0erseas in0estment+ finance for export oriented units and finance

for financial intermediaries3 Besides loans+ the Bank also extends non-fund based assistance

by way of 1uarantees and etters of *redit (:*s)3 he three cate1ories are discussed as

under4

,3 #0erseas

In0estment

erm inancin1 @ to o0erseas 8oint 9entures: >holly

#wned 5ubsidiaries as well as to Indian companies

towards part financin1 their e;uity in0estment in

o0erseas 89: >#53

E;uity In0estment @ Participation in e;uity of o0erseas

0entures of Indian companies3

>orkin1 *apital oans to 89s:>#5s

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?uarantees to 89s:>#5s

H3 Export- #riented

7nits

Asset *reation

o E;uipment inance

o Pro6ect inance

>orkin1 *apital

o %edium erm (>*+ >*)

o 5hort erm inance

5pecial Products

o Export %arketin1 inance

o Export Product e0elopment inance

o Export 9endor e0elopment inance

o $esearch < e0elopment ($<) inance

o inance for Indian Educational Institutions and

settin1 up institutions abroad

o inance for 5oftware echnolo1y Parks

o inance for e0elopment of %inor Ports : 8etties

o *reati0e Industry inancin1

o Pro6ect-related non-fund based 1uarantees

o ?uarantees and stand-by *s (5B*s)

o etters of *redit (*s)

L3 inancial

Intermediaries

(banks)

$efinance to *ommercial Banks

Export Bills $ediscountin1 for commercial banks3

he primary ob6ecti0e of pro0idin1 Export *apability *reation loans is to facilitate export

production and international competiti0eness of borrower companies3 Exim Bank pro0ides a

comprehensi0e ran1e of products and ser0ices co0erin1 financial needs of the borrower

companies at all sta1es of their business cycle3 he Bank2s 0ision is to de0elop commercially

0iable relationships with a tar1et set of externally oriented companies by offerin1 them a

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comprehensi0e ran1e of products and ser0ices aimed at enhancin1 their internationalisation

efforts3

O4er$ea$ In4e$tment !inan#e Pro3ramme

Exim Bank encoura1es Indian companies to in0est abroad for+ inter alia+ settin1 up

manufacturin1 units and for ac;uirin1 o0erseas companies to 1et access to the forei1n market+

technolo1y+ raw material+ brand+ IP$ etc3 or financin1 such o0erseas in0estments+ Exim

Bank pro0ides4

A3 erm loans to Indian companies up to .= of their e;uity in0estment in o0erseas 89:

>#53

B3 erm loans to Indian companies towards up to .= of loan extended by them to the

o0erseas 89: >#53

*3 erm loans to o0erseas 89: >#5 towards part financin1

*apital expenditure towards ac;uisition of assets+

>orkin1 capital+

E;uity in0estment in another company+

Ac;uisition of brands: patents: ri1hts: other IP$+

Ac;uisition of another company+

Any other acti0ity that would otherwise be eli1ible for finance from Exim

Bank had it been an Indian entity3

3 ?uarantee facility to the o0erseas 89: >#5 for raisin1 term loan: workin1 capital3

Eli3iFilit7 to a4ail finan#e or $er4i#e$:

Exim Banks funded: non-funded assistance is 1enerally with recourse to the Indian promoter

*ompany3 Exim Bank financin1 is a0ailable in Indian $upees (to the Indian borrower) and in

forei1n currency as per extant $BI 1uidelinesC3 he tenor ran1e is usually K-J years with a

suitable moratorium+ and repayments in suitable monthly: ;uarterly instalments3 Promoter

mar1in is minimum H= and security will include inter alia appropriate char1e on the assets

of the o0erseas entity+ *orporate ?uarantee of the Indian promoter backed by appropriate

char1e on its assets+ Political and: or commercial risk co0er+ Pled1e of shares held by the

Indian promoter in the o0erseas 0enture etc3

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Export- Oriented Unit$ Corporate Bankin3

he Bank offers a number of financin1 pro1rammes for Export #riented 7nits (E#7s)+

importers and for companies makin1 o0erseas in0estments3 he financin1 pro1rammes cater

to the term loan re;uirements of Indian exporters for financin1 their new pro6ect+ expansion+

moderniFation and purchase of e;uipment+ $<+ o0erseas in0estments and also the workin1

capital re;uirements3

!inan#e for Corporate$

Re$ear#8 @ De4elopment !inan#e for Export Oriented Unit$:

Exim Bank encoura1es Indian exporters to in0est more in their $< spendin1 in order to

de0elop new products:processes: IP$s for enhancin1 export capabilities3 *onsiderin1 the

need to brid1e the fundin1 1ap of Indian exporters in $< space+ the Bank has a dedicated

$< inancin1 Pro1ramme3 7nder the said Pro1ramme+ financin1 for $< can be extended

to any export oriented company: 5P9 promoted by companies+ irrespecti0e of the nature of

industry3 he financin1 co0ers both capital and re0enue expenditure includin1 inter alia4

• and and buildin1+ ci0il works for housin1 eli1ible $< acti0itiesD

• E;uipment2s+ tools+ computer hardware: software+ miscellaneous fixed assets used in

eli1ible $< acti0itiesD

• Ac;uisition of technolo1y from India or o0erseas at the “proof of concept/ or desi1n

sta1e+ which will be used to de0elop new product: process3

• 5alaries of $< personnel+ support staff durin1 the $< pro6ect phase includin1

trainin1 costsD

• *ost of re1ulatory appro0als+ filin1 and maintenance of patent re1istrationD

• Product documentation and allied costs durin1 the $< pro6ect phase3

• *osts of materials+ sur0eys+ technolo1y demonstration studies and field trial

• Any other costs to enhance $< capability3

Eli3iFilit7:

• Export oriented firms with exports (actual:pro6ected) of at least K crores or ,= of

annual turno0er3



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• $< finance is 1enerally extended up to J years3 !owe0er+ lon1er tenors with

suitable interest resets would be permissible3 5tructured repayment can be considered to

match the cash flow3

•

7p to .= of the total pro6ect cost can be funded3

• 5ecurity to include+ inter alia+ appropriate char1e on the assets+ *orporate ?uarantee+

char1e: assi1nment on the re1ulatory appro0al: IP$+ personal 1uarantee etc3

Pre-$8ipmentGPo$t-$8ipment Credit Pro3ramme:

Exim Bank extends export credit to Indian exporters to meet a wide ran1e of trade financin1

re;uirements for execution of an export transaction3 he Bank pro0ides workin1 capitalfinance by way pre-shipment credit and post-shipment credit3 Bank also extends as part of

export credit assistance+ non-fund based limits inter alia includin1 issuance of etters of

*redit (both orei1n < inland) and Bank ?uarantees (both orei1n < inland) for its clients3

he credit limits are 1enerally extended as part of Borrower2s consortium limit and are

operated as a runnin1 account facility3 he limits may be renewed for further period sub6ect

to satisfactory re0iew of account and dependin1 on the Borrower2s export credit re;uirement3

he facilities can be drawn in either Indian $upee or orei1n *urrency3

Eli3iFilit7:

• Indian exporters with a track record3

• he limit should be within the %PB of Borrower2s assessed bank finance3

• %ar1in of ,K-H= under pre-shipment and =-,= under post-shipment3

• Ade;uate security to be pro0ided3 ypical security includes appropriate char1e on the

current assets includin1 export recei0ables+ E*?* co0er etc3

)endin3 Pro3ramme for Export Oriented Unit$:

Exim Bank pro0ides term loans to export oriented Indian companies to finance 0arious

capital expenditures includin1 certain soft expenditures in order to impro0e their export

capability and to enhance their international competiti0eness3 oans:?uarantees are extended

for the followin1 purposes4 Expansion+ moderniFation+ up 1radation or di0ersification

pro6ects includin1 ac;uisition of e;uipment+ technolo1y etc3D export marketin1D export product de0elopmentD settin1 up of 5oftware echnolo1y ParksD

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Eli3iFilit7:

%anufacturin1:tradin1:ser0ices companies with a minimum export orientation

(actual:pro6ected) of ,= of their annual turno0er+ or exports of K crore p3a3+ whiche0er is

lower inclusi0e of exports throu1h Export:radin1 !ousesC+ are eli1ible to a0ail finance from

Exim Bank3 Exim Bank financin1 is a0ailable in Indian $upees and in forei1n currency as

per extant $BI 1uidelinesC3 he tenor ran1e is usually J-,= years with a suitable moratorium+

and repayments in suitable monthly: ;uarterly instalments3 Promoter mar1in is minimum

H= and appropriate char1e on the fixed assets of the company:pro6ect plus any other

acceptable security includin1 personal 1uarantees may be stipulated3

!IN'NCE !OR %S%ES

Apart from the *orporate Bankin1 facilities+ there are additional ser0ices that Exim Bank

offers to support 5mall and %edium Enterprises3

S%E-'DB )ine:

Exim Bank has arran1ed for a credit line from the Asian e0elopment Bank (AB) for

pro0idin1 forei1n currency term loans to the %5%E borrowers in certain specific la11in1

states of India+ 0iF3 Assam+ %adhya Pradesh+ #rissa+ 7ttar Pradesh+ *hhattis1arh+ 8harkhand+

$a6asthan and 7ttarakhand3 hese forei1n currency term loans can also finance domestic

capital expenditure of the borrowers in Indian $upees+ besides meetin1 their forei1n currency

capital expenditure re;uirements3 he assistance to these %5%Es will help in increasin1

competiti0eness in the relati0ely backward states and help in inte1ratin1 them into the

mainstream economy3

Eli3iFilit7:

Export oriented %5%Es (as defined in %5%E Act+ H==G) incorporated in the abo0e-

mentioned la11in1 states

P"rpo$e: o meet lon1-term forei1n currency loan re;uirements of Indian exportin1 entities

in the %5%E sector for financin1 their eli1ible capital expenditure3 Pertainin1 to inter alia

settin1 up of new facilities+ expansion:moderniFation of existin1 facilities+ ac;uisition of

e;uipment and plant < machinery+ settin1 up of testin1:$< facilities+ settin1 up of capti0e



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power plants:co-1eneration plant+ settin1 up of infrastructure facilities like effluent treatment

plants+ stora1es:warehouses+ etc3 he enor of the loan will be up to J years includin1

suitable moratorium3

!or #l"$ter of Indian %S%E EOU$

Exim Bank+ besides pro0idin1 financial assistance to indi0idual %5%E E#7s+ also pro0ides

financial assistance to 5pecial Purpose 9ehicles (5P9s) of a cluster of %5%Es3 erm loans

are pro0ided to such clusters of %5%E units for the followin1 acti0ities4

• e0elopment of new 1eo1raphically conti1uous cluster:industrial park+ in0ol0in1

creation < maintenance of common infrastructure and common facilities+ includin1 inter

alia construction of buildin1s and ci0il works+ ac;uisition of assets:technolo1y+ for the

benefit of industrial units within the *luster:industrial Park3

• e0elopment of an industrial estate+ by industrial users+ industry associations and:or

?o0ernment bodies3

• 7p-1radation of an existin1 industrial cluster or industrial estate3

• e0elopment of specific infrastructure+ includin1 common effluent treatment plant+

capti0e power plant+ transportation linka1es+ haFardous waste disposal3

• e0elopment of *ommon acilities *entres like testin1 centres+ cold stora1es+ for

industrial clusters+ industrial estates+ or a 1roup of industries with common interests3

Te#8nolo37 @ Inno4ation En8an#ement and Infra$tr"#t"re De4elopment !"nd

/TIEID0:

>ith a 0iew to facilitate credit flow to the %5%E sector at competiti0e rates+ Exim Bank has

set up a echnolo1y and Inno0ation Enhancement and Infrastructure e0elopment (IEI)

fund of 75 K== %illion exclusi0ely for %5%Es+ to au1ment their export competiti0eness

and internationalisation efforts+ by partnerin1 with banks : Is3 IEI seeks to meet lon1

term forei1n currency loan re;uirements of Indian exportin1 entities in the %5%E sector for

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meetin1 capital expenditure+ throu1h refinancin1 of Banks : Is a1ainst their eli1ible 5%E

financin1 portfolio3

Eli3iFilit7:

5cheduled *ommercial Banks : inancial institutions in India ha0in1 acceptable credit risk

for on lendin1 to %5%E units3

Eli3iFle Benefi#iar7:

7ltimate Beneficiary of the orei1n *urrency funds pro0ided to eli1ible Banks:Is shall be

%5%E units in India ha0in1 a minimum export orientation of ,= of annual turno0er or

exports of K crores p3a3 in absolute terms+ whiche0er is lower3 he loan should be used to

meet lon1-term forei1n currency loan re;uirements of Indian exportin1 entities in the %5%E

sector for meetin1 eli1ible capital expenditure3 Eli1ible capital expenditure include

technolo1y up 1radation+ capacity creation+ common infrastructure de0elopment like capti0e

power plant+ common effluent treatment plant+ haFardous waste disposal facility+ testin1

facilities etc3

)endin3 Pro3ramme for !inan#in3 Creati4e E#onom7:

he *reati0e Industries are those industries which ha0e their ori1in in indi0idual creati0ity+

skill and talent and which ha0e a potential for wealth and 8ob creation throu1h the 1eneration

and exploitation of intellectual property 0iF3+ Ad0ertisin1+ Architecture+ Art and Anti;ues

%arket+ *rafts+ esi1n+ esi1ner ashion+ ilm and 9ideo+ Interacti0e eisure 5oftware+

%usic+ Performin1 Arts+ Publishin1+ 5oftware and *omputer 5er0ices+ ele0ision and $adio

etc3 In 0iew of the lar1e untapped potential for increasin1 exports by the creati0e industries

and in order to pro0ide a strate1ic focus to this sector and enhance Exim Bank2s presence in

the creati0e economy space+ and as a corollary+ in the %5%E se1ment+ Exim Bank has

introduced a Pro1ramme specifically for financin1 the *reati0e Economy3

Eli3iFilit7:

he illustrati0e list of industry sectors include4

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!erita1e raditional < *ultural Expressions (Art < *rafts+ esti0als+ *elebrations

etc3)

*ultural 5ites (!istorical %onuments+ %useums+ ibraries+ Archi0es etc3)

9isual Arts (Paintin1+ 5culpture+ Anti;ue+ Photo1raphy etc3)

Performin1 Arts (i0e %usic+ heatre+ ance+ #pera+ Puppetry etc3)

Publishin1 < Printed %edia (Books+ &ewspapers+ Press < other Publications)

Audio 9isuals (ilm+ 9 < $adio+ Broadcastin1 etc3)

&ew %edia (i1itised *ontent+ 5oftware+ 9ideo ?ames+ Animations etc3)

unctional esi1n (Interior+ ?raphic+ ashion+ 8ewellery+ oys etc3)

*reati0e 5er0ices (Architecture+ Ad0ertisin1+ *reati0e $ < + *ultural 5er0ices+

i1ital 5er0ices etc3)

!IN'NCE !OR R'SSROOTS ENTERPRISES

he Bank supports 1lobalisation of enterprises based out of rural areas of the country throu1h

its ?$I pro1ramme3 hrou1h this initiati0e+ the Bank extends financial support to promote1rassroots initiati0es:technolo1ies+ particularly those ha0in1 export potential3 he ob6ecti0e of

the pro1ramme is to help artisans:producer 1roups:clusters:small enterprises across the

country realiFe remunerati0e return on their produce essentially throu1h facilitatin1 exports

from these units3 he 1roup handles credit proposals from such or1aniFations workin1 at the

rural :1rassroots le0el and offers tailor-made financial products to cater to their needs3 he

1roup is mandated to work towards de0elopin1 a robust+ 0ibrant and holistic approach in its

inter0ention by pro0idin1 assistance at 0arious sta1es of product de0elopment : business

cycle includin1 capacity buildin1+ export capability creation+ expansion:di0ersification and

finally exports3 he broad areas of support extended by the Bank throu1h its 1rassroots

initiati0es inter alia+ include capacity buildin1+ de0elopment of common facility centres+

construction of raw material bank+ technolo1y up 1radation and creation of export capability3

E)IIBI)IT&:



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he or1anisations eli1ible for support should meet 0arious criteria includin1+ but not limited

to the followin14

• 5hould be a le1al entity re1istered under respecti0e 5tate:*entral ?o0t3 Act as a 5ociety+

rust+ *o-operati0e+ Pri0ate imited *ompany+ Producer *ompany+ or &?# etc3D• 5hould be workin1 with communities at 1rassroots le0el for promotin1 income

1eneratin1 acti0ities (I?As) based on the traditional skills usin1 indi1enous or locally

a0ailable materials in the areas of product de0elopment < desi1n+ capacity buildin1+

market de0elopment etc3D

• 5hould ha0e pro0en track record of creatin1 :adoptin1 sustainable li0elihood model

which could be upscale and replicated across the 1eo1raphies sharin1 similar

characteristics (demo1raphic+ cultural+ socio-economic similarities+ etc3• 5hould be exportin1+ directly or indirectly

)ine of Credit /)OC0 is a financin1 mechanism throu1h which Exim Bank extends support

for export of pro6ects+ e;uipment+ 1oods and ser0ices from India3 Exim Bank extends #*s

on its own and also at the behest and with the support of ?o0ernment of India3 Exim Bank

extends ines of *redit to4

a) orei1n ?o0ernments or their nominated a1encies such as central banks+ state owned

commercial banks and para-stata or1aniFationsD

b) &ational or re1ional de0elopment banksD

c) #0erseas financial institutionsD

d) *ommercial banks abroadD

e) #ther suitable o0erseas entities3

he abo0e-mentioned recipients of #*s act as intermediaries and on lend to o0erseas

buyers for import of Indian e;uipment+ 1oods and ser0ices3 #* is a financin1 mechanism

that pro0ides a safe mode of non-recourse financin1 option to Indian exporters to enter new

export markets or expand business in existin1 export markets without any payment risk from

the o0erseas importers3

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UIDE)INES 'ND PROCEDURE !OR OAERN%ENT O! INDI'

SUPPORTED )INES O! CREDIT

he ?o0ernment of India (?#I)+ in H==L-=M+ formulated the Indian e0elopment Initiati0e

(II)+ now known as Indian e0elopment and Economic Assistance 5cheme IEA5C @ with

the ob6ecti0e of sharin1 India2s de0elopment experience throu1h

*apacity buildin1 and skills transfer+

rade+ and

Infrastructure de0elopment+

By extendin1 concessional ines of *redit (#*s) routed throu1h Exim Bank+ to de0elopin1

partner countries+ towards creatin1 socio-economic benefits in the partner country3 $ecently+

the %inistry of External Affairs (%EA) has set up the e0elopment Partnership

Administration (PA) i0ision to deal with India2s de0elopment assistance pro1rammes

abroad+ includin1 #*s routed throu1h Exim Bank3 hese #*s are now increasin1ly bein1

extended to partner countries for lar1e-scale and complex pro6ects (pro6ect exports from

India)3

Bilateral or multilateral assistance+ throu1h lines of credit+ typically follows a se;uence of

standard procedures+ 0iF3

a) Pro6ect identification and preparation+

b) re0iew and appro0al of the pro6ect proposal+

c) offer of the loan+ acceptance and execution of loan a1reement+

d) pro6ect implementation+ monitorin1 and super0ision+ and

e) socio-economic impact assessment after pro6ect completion3

he lessons learned from the impact assessment : e0aluation act as a feedback to the

preparation+ re0iew and implementation of future pro6ects3 his process forms the pro6ect

cycle3

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UIDE)INES @ PROCEDURE O! E2I% B'NH>S ON

CO%%ERCI') )INES O! CREDIT1

Exim Bank+ since its inception+ has been extendin1 #*s to 0arious countries to promote

export of Indian pro6ects+ products and ser0ices3 7nder the #*s extended by Exim Bank to

o0erseas financial institutions+ forei1n 1o0ernments+ re1ional and national de0elopment

banks and commercial banks+ Exim Bank finances all items eli1ible for bein1 exported under

the orei1n rade Policy of ?o0ernment of India3 he credit periods for these #*s are

1enerally upto J years and the #*s typically carry IB#$-linked interest rates3

Re$ear#8 @ 'nal7$i$

Exim Bank2s $esearch < Analysis ?roup ($A?) offers a 0ast ran1e of research products3

he Bank2s team of experienced economists and strate1ists pro0ide insi1hts on aspects of

international economics+ trade and in0estment throu1h ;ualitati0e and ;uantitati0e research

techni;ues3 $A? monitors the 1lobal trends in the world and domestic economies and the

impact of these trends+ especially on India and other de0elopin1 economies3 $A? caters to

the constituents within the Bank+ as well as to those external to the Bank such as

?o0ernment+ $BI+ exporters:importers+ trade < industry associations+ external credit

a1encies+ academic institutions and researchers3

he research work carried out in the ?roup under the broad classification of re1ional+ sectoral

and policy related studies+ are published in the form of #ccasional Papers+ >orkin1 Papers+

Books+ etc3 hese research studies primarily en0isa1e identifyin1 a0enues for enhancin1

Indias international en1a1ement3

he 1roup also undertakes country profiles+ which assess the economic+ political+ currency

and credit risks in0ol0ed+ alon1 with the export opportunities in the country concerned3

urther the profiles pro0ide short-to-medium term economic outlook of a country+ indicatin1

the economic risk in0ol0ed in doin1 business with country3

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As a part of the support ser0ices and with an ob6ecti0e to pro0ide contemporary information

to Indian traders and in0estors+ the 1roup disseminates information on export opportunities

and hi1hli1hts de0elopments that ha0e a bearin1 on Indian exports+ throu1h its ;uarterly

bulletin+ Eximus: Export Advantage3 he newsletter comprises of re1ional and industry

outlooks+ Bank2s acti0ities+ opportunities in multilateral funded pro6ects and contract awards+

re0iew on select traded currencies and countries+ and a section on the happenin1s durin1 the

;uarter3 he newsletter is a free publication+ effecti0ely distributed to a wide network of

scholars+ economists+ institutions+ ?o0ernment of India offices+ and export promotin1

or1anisations3

he Bank also brin1s out a bi-monthly publication titled NA1ri Export Ad0anta1e2 in En1lish+

!indi and ,= re1ional lan1ua1es (Assamese+ Ben1ali+ ?u6arati+ 'annada+ %arathi+

%alayalam+ #riya+ Pun6abi+ amil+ and elu1u)3 he newsletter pro0ides stakeholders of

Indian a1ribusiness with updates on 1lobal a1ri-en0ironment and markets+ research reports on

a1ri-commodities+ international issues related to a1ri-business+ prospecti0e areas of

a1ribusiness+ a1ricultural trade and trade policies+ re1ulatory issues in international trade+

># ?o0ernment schemes and assistance+ latest international news brief and Banks

acti0ities to promote a1ri-export from India3

he Bank brin1s out a bilin1ual NIndo-*hina &ewsletter2 featurin1 areas of cooperation

between India and *hina3

%arketin3 'd4i$or7 Ser4i#e$

Exim Bank plays a promotional role and seeks to create and enhance export capabilities and

international competiti0eness of Indian companies3 Exim Bank throu1h its %arketin1

Ad0isory 5er0ices helps Indian exportin1 firms in their 1lobalisation efforts by proacti0ely

assistin1 in locatin1 o0erseas distributor(s):buyer(s): partner(s) for their products and

ser0ices3 he Bank assists in identification of opportunities o0erseas for settin1 up plants or

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pro6ects or for ac;uisition of companies o0erseas3 %A5 ?roup le0era1es the Banks hi1h

international standin1+ in depth knowled1e and understandin1 of the international markets

and well-established institutional linka1es+ coupled with its physical presence+ to support

Indian companies in their o0erseas marketin1 initiati0es on a success fee basis3 Exim Bank

has been able to successfully place a ran1e of products in o0erseas as well as domestic

markets3

Eli3iFilit7:

Any company:firm wantin1 to export its ;uality products:ser0ices is eli1ible to a0ail this

benefit as lon1 as it does not fall in the ne1ati0e list of Indias orei1n rade Policy and

International *on0entions3 %arketin1 Ad0isory 5er0ices are pro0ided across all the sectors3

Information re;uired from the company is as under4-

• *ompany profile

• Product Brochures

• Printed material

• Prices

•Existin1 export markets < tar1et markets

• %inimum order ;uantity

• Ouality certifications

• 5amples+ as and when re;uired

E2PORT 'DAISOR& SERAICES ROUP /E'S0

he Export Ad0isory 5er0ices ?roup EA5C offers a di0erse ran1e of information+ ad0isory

and support ser0ices+ which enable exporters to e0aluate international risks+ exploit export

opportunities and impro0e competiti0eness3 9alue added information and support ser0ices are

pro0ided to Indian pro6ects exporters on the pro6ects funded by multilateral a1encies3

he ?roup undertakes customised research on behalf of interested companies in the areas

such as establishin1 market potential+ definin1 marketin1 arran1ements+ and specifyin1

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market distribution channels3 e0elopin1 export market entry plans+ facilitatin1

accomplishment of international ;uality certification and display of products in trade fairs

and exhibitions are other ser0ices pro0ided3

he Bank pro0ides a wide ran1e of information+ ad0isory and support ser0ices+ which

complement its financin1 pro1rammes3 hese ser0ices are pro0ided on a fee basis to Indian

companies and o0erseas entities3 he scope of ser0ices includes market-related information+

sector and feasibility studies+ technolo1y supplier identification+ partner search+ in0estment

facilitation and de0elopment of 6oint 0entures both in India and abroad3

%"ltilateral !"nded Pro5e#t$ O4er$ea$ /%!PO0

he Bank pro0ides a packa1e of information and support ser0ices to Indian companies to

help impro0e their prospects for securin1 business in pro6ects funded by the >orld Bank+

Asian e0elopment Bank+ African e0elopment Bank+ and European Bank for

$econstruction and e0elopment3

CONC)USION

he Bank2s experience in e0ol0in1 as an institution supportin1 international trade and

in0estment+ in addition to functionin1 as an export credit a1ency in a de0elopin1 country

context+ is of particular rele0ance in other de0elopin1 countries3 he Bank has been sharin1

its experience and expertise by undertakin1 consultancy assi1nments3 Exim Bank also shares

its experience and expertise throu1h pro0ision of on-site exchan1e of personnel pro1rammes

aimed at pro0idin1 a first-hands experience to the employees of its institutional partners3

he Bank has fostered a network of alliances and institutional linka1es with multilateral

a1encies+ export credit a1encies+ banks and financial institutions+ trade promotion bodies+ and

in0estment promotion boards to help create an enablin1 en0ironment for supportin1 trade and

in0estment3 he ?lobal &etwork of Exim Banks and e0elopment inance Institutions (?-

&E"I) was set up in ?ene0a in %arch H==G throu1h the Bank2s initiati0e+ under the

auspices of 7&*A3 >ith the acti0e support of a number of other Exim Banks and

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e0elopment inance Institutions from 0arious de0elopin1 countries+ the network has

endea0oured to foster enhanced 5outh-5outh trade and in0estment cooperation3 N#bser0er

5tatus2 in 7&*A underscores support for the orum3

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