Exim Bank of India is teaming up with the African Development Bank to set up a Project Development Company (PDC) in Africa to identify and develop infrastructure projects so as to provide Indian private sector an opportunity to invest in and implement infrastructure projects in Africa.
Exim Bank expects the move to give a major boost to India's growing economic influence across Asia and Africa, and help increase Indian project exports to $50 billion within the next five years from the current levels of $ 27 billion.
The bank will use innovative initiatives to leverage the growing opportunities in Africa and Asia to increase its presence in the region, Yaduvendra Mathur, the bank's chairman and managing director, said.
As of end-September, Exim Bank had supported 374 project export contracts valued at $26.85 billion in 78 countries across Africa, Asia and the Commonwealth of Independent States (CIS), involving 112 Indian companies, he said.
"These projects have been supported by Exim Bank through a mix of funded and non-funded facilities," Mathur said here.
He said the Project Development Company (PDC) being set up in collaboration with the African Development Bank will provide specialist project development expertise to take the infrastructure project from concept to commissioning. It will focus on infrastructure projects that have specific strategic interest for India. It is expected to provide an entire gamut of project development expertise to identified projects.
Mathur, however, said the support from the government of India would be critical to achieve this target for India.
"Exim Bank proposes to organise a series of stakeholders' seminars to seek industry feedback for creating a level playing field for Indian project exporters," he added.
The Indian government on its part has extended two additional lines of credit (LoCs) to the Gambian government valued at $22.50 million for financing an electrification expansion project for greater Banjul area and $22.50 million for financing replacement of asbestos water pipes with UPVC pipes there.
Export-Import Bank of India (Exim Bank) is a specialised financial institution, wholly owned by Government of India, set up in 1982, for financing, facilitating and promoting foreign trade of India.
Exim Bank extends lines of credit (LoCs) to overseas financial institutions, regional development banks, sovereign governments and other entities overseas, to enable buyers in those countries to import developmental and infrastructure projects, equipment, goods and services from India, on deferred credit terms.