development banking & cross border investment - indian experience

DEVELOPMENT BANKING & CROSS BORDER INVESTMENT - INDIAN

EXPERIENCE

Mr. Debashish Mallick, Dy. Managing Director

08-10-201502/05/2023 1Export-Import Bank of India

EXPORT-IMPORT BANK OF INDIA

Set up in September 1981 under an Act of Parliament to finance, facilitate and promote India’s international trade and investment.

Wholly owned by Government of India.

Commenced operations in March 1982.

Objectives: “… for providing financial assistance to exporters and

importers, and for functioning as the principal financial institution for coordinating the working of institutions

engaged in financing export and import of goods and services with a view to promoting the country’s international

trade…” “… shall act on business principles with due regard to public

interest”

(Export-Import Bank of India Act, 1981)

Development Financial Institution for Export

BENIN

Tractor assembly plant constructed under Exim Bank’s Line of Credit to the Government of Benin. Mechanized farming has been made possible with the availability of tractor and Implements. There has been substantial improvement in the agricultural land for cultivation of about 40,000 Hectares, providing benefit to 1 million people in Benin.

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MALI

Tractor assembly plant in Mali, West Africa, financed under Exim Bank’s Line of Credit to the Government of Mali. Farm mechanization has led to a 30 per cent increase in productivity and income of farmers and enhanced food security in Mali. “Made in Mali” tractors have also reduced dependence on costly imports.02/05/2023 Export-Import Bank of India 4

Equipments supplied, installed, commissioned and training provided under the LOC of US$ 30 mn to Govt. of Malawi, for One Village One Product Programme (OVOP) and Small Holder’s Irrigation Programme

Agro-processing plant

Malawi

MALI

Mango & Tomato processing plant set up in Mali under a Line of Credit extended to the Government of Mali has resulted in increase in shelf life of the products, off-season availability , reduction in wastage, easy storage.


TANZANIA

Exim Bank of India has financed export of tractors under a Line of Credit to the Government of Tanzania. Farmers in the country received easier access to farm equipment which led to higher productivity and food security in the region.


SENEGAL

Supply of water pumps for agriculture to Senegal financed under Exim Bank’s Line of Credit extended at the behest of the Government of India. The irrigation cover area has increased two-fold and rice production in the region has gone up by 177 per cent. Income level of farmers has gone up resulting in lower migration of rural dwellers to cities.02/05/2023 Export-Import Bank of India 8

RWANDA

Two LOCs aggregating US$ 80 mn were extended to the Government of Rwanda for financing the 28 MW Nyaborongo Hydro-power project in Rwanda. The project slated to be Rwanda’s biggest hydroelectric power plant and would be a boost to Rwanda’s national power grid.Would cater to 25% of total electricity demand of Rwanda

SUDAN

Um Dabakir Power Station (Kosti), a 4x125 MW combined cycle power plant set up under a Line of Credit extended by the Exim Bank of India. It is the largest thermal power plant commissioned in Sudan. The power plant will contribute to one-sixth of the total power demand of Sudan. The electricity generated from the plant is also supplied to sugar and cement factories.02/05/2023 Export-Import Bank of India 10

MALI

High Voltage Transmission lines were constructed between Mali and Cote d’Ivoire, executed under Exim Bank’s Line of Credit to the Government of Mali. The project has led to stable and affordable power supply contributing greatly to social and economic development of Mali.


Contracts for Solar Electrification executed under the GOI-supported LOC to Government of SudanObjectives include (i) spreading technical awareness in rural communities; (ii) limiting migration of high school students to cities; (iii) exam papers and correspondence to be generated within the school rather than travel to the city. Project covers the following institutions:

100 primary schools 100 secondary schools 100 units of public sector utilities 100 hospital / health centers in

rural areas 50 voting centers

SUDAN

Modernization and upgradation of workshop, supply of 41 coaches, 3 locomotives, 2 Diesel Multiple Units and pick-up vehicles and buses. Coaches are operating between Namibe and Matala (434 km) carrying, both passenger and freight traffic. Provides cheaper mode of transportation as compared to road.Facilitated exploration of Kassinga Mines deposit bed (iron ore) in the municipality of Jamba Huila Province. Farmers are using railway to transport their agricultural products to interior regions at reasonable price.

ANGOLA

SENEGAL

Development of Railway infrastructure in Senegal under Line of Credit extended by Exim Bank of India. The railways provide a comfortable and safe mode of transport and have reduced the cost and duration of travelling in Senegal considerably.


The 27.5 km long Madhu Road to Talaimannar railway line project in Sri Lanka was completed and was flagged off by Hon’ble PM of India, Mr. Narendra Modi in March 2015.Rehabilitation of three railway lines in Northern part of Sri Lanka was undertaken under Lines of Credit to the Government of Sri Lanka. These railway projects have enhanced the accessibility, safety and speed of train travel in Sri Lanka.

SRI LANKA

BANGLADESH

Covered under an LOC to the Government of Bangladesh, this project has benefited city dwellers and passengers of Dhaka and other districts in Bangladesh. It has generated employment not only for men but also for women, thus has impact on poverty alleviation/reduction.


SENEGAL

Buses providing public transport in Dakar, Senegal. The export of 350 buses was financed under Exim Bank’s Line of Credit. The LOC was extended under the New Partnership for Africa’s Development (NEPAD). The urban transport system in the area has improved substantially with the supply of these buses.


ETHIOPIA


Development of sugar industry in Ethiopia financed under Exim Bank’s Lines of Credit. The project covers three expansion and green field projects which has reduced the country’s dependence on imported sugar.

MOZAMBIQUE

Mozambique IT Park financed under Exim Bank of India’s Line of Credit extended to the Government of Mozambique. The project involved setting up of and developing a science and technology park as well as a technological development and innovation centre. The IT Park has imparted training in hardware and software to more than 500 students. Many entrepreneurs have set up their own ventures after using the facilities of the IT Park.


SOUTH AFRICA

Exim Bank of India extended financial support under its Overseas Investment Finance programme for installing wind turbines in South Africa. Cookhouse Wind Farm is the largest wind farm in South Africa constructed by an Indian company. The project provided local employment to nearby community during its construction and also engaged the local community by way of direct equity participation in the project.


ZIMBABWE

Exim Bank assisted a craft exchange programme with artisans from India and Zimbabwe working with bamboo products. The programme helped in knowledge sharing, leading to adoption of techniques and equipment for better production efficiency.


SRI LANKA

Exim Bank has supported Dambula Project in Sri Lanka by way of a Buyer’s Credit under National Export Insurance facility of US$ 60.69 mn for a contract for supply, erection and commissioning of 30 million litres per day (MLD) water treatment plant and distribution to 9 reservoirs across Dambula region in central Sri Lanka.The project valued USD 81.69 mn is being executed by VA Tech Wabag Ltd., for National Water Supply & Drainage Board (NWSDB), a Government of Sri Lanka undertaking.The project will give general public access to clean water and will result in improvement of public health.

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development banking & cross border investment - indian experience

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