In a bid to make domestic firms globally competitive, Exim Bank will provide concessional finance to Indian companies bidding for strategically important infrastructure projects abroad.
"The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to a scheme to enable EXIM Bank to offer concessional finance to support Indian companies bidding for strategically important infrastructure projects abroad," Communication and IT Minister Ravi Shankar Prasad said.
He further said 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 Department of Economic Affairs 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 Deputy National Security Adviser will also be a member on the committee.
There are a number of Indian large project implementation companies, which have developed a lot of expertise in building large infrastructure projects.
However, they have been facing issues in winning contracts abroad due to higher cost of finance in India.
According to an official statement, the committee will also consider financing strategic projects through Public Sector banks other than EXIM Bank on the same terms.
"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. The experience with this scheme will be evaluated after two years," the statement added.
