The Export-Import Bank of the United States of America (US Exim Bank) is looking to diversify its loan portfolio in India while betting big on the power sector, including solar power projects.
Fred P Hochberg, chairman and president of the bank, on Friday said his ongoing visit was mainly focused on diversifying the loan portfolio into new sectors like health, medical devices and agriculture. The Exim Bank head, who met chief minister N Kiran Kumar Reddy on Friday, also said he was keen on lending to various infrastructure projects in Andhra Pradesh (AP). He met the GMR group top brass in Bangalore yesterday. The bank, which finances the export of US products and services across the globe, has financed a number of projects in oil and gas, petrochemicals and power projects in AP, including the over 2,000-Mw gas fired power project being set up by Reliance Power in the coastal town of Samalkot.
Power projects comprise 30 per cent of the bank’s total Indian loan portfolio of $7 billion. “We are quite excited about the Indian power sector. It is possible to achieve the growth targets of the Indian power sector only with more investments,” Hochberg said, adding he was also impressed with the progress made by India on the solar power front. The bank, this year, lent $172 million to solar power projects being set up in Gujarat and Rajasthan. The US Exim Bank is considering fresh loan proposals worth $2 billion in the country, according to him.
To a query on financing Air India, he said it had been a valued customer and would remain so. The bank provides financial support to 56 airlines across the globe, including Air India and Jet Airways.
On the funding tie-up for a refinery project proposed in AP by a Hyderabad-based company, he said the bank had not taken any decision so far except issuing a letter of interest to the promoters.
