Canada exim bank plans to finance imports to India

The Export Development Canada (EDC), Canada's exim bank, is planning to finance up to $600 million of import by Indian companies from Canadian corporations in the calendar year 2006.

EDC is also looking forward to double the credit to state electricity utilities which are planning to buy technology or equipments, or both, from Canadian companies.

"So far our exposure to Indian credit market is around $900 million including power, telecom, auto component and food processing. Our biggest import finance deal was with Reliance Infocomm, which imported technology and equipments from Nortel Equipments, worth $ 200 million," said Peter Nesbitt, EDC's chief representative in India on the sidelines of a seminar organised by the Confederation of Indian Industries (CII) and the Canadian Consulate.

"We have identified, China, Brazil and India as potential markets for Canadian exports, joint ventures and technical collaborations. Of these India is high on our priorities," he added.

EDC has financed imports worth $ 75 million for different state electricity utilities including Chamara-I and Chamara II, hydro electrical projects in Northern India.

"We wish to double our exposure in this sector in near future and this doesn't include our participation in private sector power projects," he added.

Nesbitt said, "We are negotiating with Maharashtra government to finance one of their power projects but these are at a preliminary stage. But we are looking forward to financing the Brihanmumbai Municipal Corporation's (BMC) waste water treatment project," he added.