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Companies to get concessional loans for important infra projects abroad.


Date: 03-11-2015
Subject: Companies to get concessional loans for important infra projects abroad
NEW DELHI: The government today said it has approved the proposal for providing a concessional financing scheme to support Indian companies bidding for strategically important infrastructure projects abroad.

"The repayment of the loan would be guaranteed by the foreign government... The strategic importance of a project to deserve financing under this scheme will be decided on a case by case basis by a Committee chaired by Secretary ( DEA)

"... and will have members from Department of Expenditure, Ministry of External Affairs, Department of Industrial Promotion and Policy, Department of Commerce, Department of Financial Services and Ministry of Home Affairs," the Finance Ministry said in a statement.

The committee will have powers on conditions within reasonable limits on a case by case basis during first two years of implementation of the scheme, it added.

It will also consider financing strategic projects through public sector banks other than EXIM Bank on the same terms.

The statement said that the committee may insist on sourcing of at least 75 per cent of the project requirements from India, if it is found compatible with the requests for bids, adding that the experience with this scheme will be evaluated after two years.

Source : economictimes.indiatimes.com

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