The Export-Import (Exim) Bank of India has created a fund of Rs 17 crore to boost software exports. The amount will be utilised as grant under different headings. Exim Bank has introduced a programme for financing software development. The bank will advance loans at concessional rates _ below the bank's minimum lending rate (MLR). A fund of Rs 2 crore is earmarked for meeting the differential between MLR and the interest rate charged.
Exim bank will provide grant to software companies for export marketing. Finance will cover 50 per cent of the expenditure for implementing strategic export plans. Software exports will also be encouraged to secure international quality certifications such as ISO 9000.The bank will reimburse upto 50 per cent of the expenditure incurred by software exporters in obtaining such quality certifications. The bank has also earmarked Rs 10 crore for supporting export marketing and quality certification for software exporters. Under the strategic market entry support, Exim Bank has raised the reimbursement limit to Rs 15 lakh as cost of bidding per winning bid in place of Rs 10 lakh for projects funded by multilateral agencies like the World Bank. Enhanced support for Indian consultancy overseas has also been brought under the Exim Bank scheme of things.
The bank has entered into an arrangement with IFC, Washington. Exim Bank helps IFC and its agencies in recruiting Indian consultants for short-term assignments in Africa, the Caribbean, Central America, South Pacific, Poland, Mekong Delta and other regions. The bank provides funding for payment of professional fees to Indian consultants while IFC provides foreign exchange to meet other costs. Exim Bank, in addition to equity finance, would offer loans to Indian promoted companies for on-lending loans to their overseas ventures.