Bi-annual review of Exim Bank financed overseas projects: Govt

Source : PTI :New Delhi, Oct 12,2011




With an aim to monitor end use of soft loan assistance by the Exim Bank to other countries, the Finance Ministry today said that all such projects will be monitored twice a year by a special committee.

The Bank provides Line of Credit (LoC) under the Indian Development and Economic Assistance Scheme to poor, low and medium income countries.

"There shall be a periodic (bi-annual) monitoring of all LoCs issued under this scheme by a committee comprising officers of Ministry of External Affairs, Department of Economic Affairs and Export-Import Bank of India," the Finance Ministry said.

During 2010-11, 22 LoCs aggregating USD 2.38 billion were extended by the Exim Bank to support export of projects, goods and services from India.

As on March, 2011, the Bank has in place 138 LoCs covering 72 countries in Africa, Asia, CIS, Europe and Latin America with credit commitments aggregating USD 6.66 billion.
Revising the guidelines for LoCs, the ministry also has asked borrowing governments to set up suitable monitoring mechanism in association with the Exim Bank and respective Indian missions.
This is to ensure that the work on the Exim Bank financed projects are executed as per the agreement without time or cost over-runs.

"Regular progress reports on the utilisation of Government of India supported LoCs, implementation of the projects covered under the LoCs and servicing of the LoCs should be made available to MEA every six months through the concerned Indian missions," it added.
The new guidelines also mandate that a status report on execution of the projects should be submitted every six months by the executing authorities.

In case of delay in any project under Exim Bank''s LoC, the concerned Indian diplomatic mission has been directed to coordinate a joint site visit with the respective government to ascertain the reasons and redress them.

The Finance Ministry said that in case of granting Exim Bank loans the government''s priority would be export of goods and services required in the markets of the recipient countries and to facilitate bilateral trade.

"The mission may also provide to the Government of India input on long-term economic interest that these LoCs have resulted in creating in the recipient countries," it said.

Export-Import Bank of India is the premier export finance institution and also facilitate and promote foreign trade of India. It was set up in 1982.