CHAPTER-IV. The Export-Import Bank Of India (EXIM-BANK)

Transcription

1 CHAPTER-IV The Export-Import Bank Of India (EXIM-BANK)

2 ESTABLISHMENT OF THE EXIM-BANK The export import bank of India was established in It is designed and developed as an apex institution in India for financing promotion and development of exports in the country.1 As an apex centre for export incentive and infrastructure the Bank acts as a premier institution for the promotion and development of export sector through multifarious export promotion programmes and policies. The significance of the institution lies in the continuous input that it provides for the domestic exporters and overseas importers through its finance, advisory and service incentive mechanism, the export promotion incentives and infrastructure mechanism of the EXIM-BANK. to the Indian exporters is a distinct ability which is rarely found in other export promotion councils and centers. Export import bank of India has earned national and international recognition for its assistance to Indian, overseas importers and joint ventured global banks, the export import bank of India provides more than 50 variety programmers for Indian exporters, commercial banks, and overseas importers the contents and the structure of export promotion mechanism is considered to be the unique in their focus on international business promotions.2 The Institute is rendering advisory and promotional services like merchant banking service, export marketing service, advisory services on multilateral agency funded projects overseas, project preparatory service, overseas development assistance, consultancy and technological

3 68 service trade finance overseas investment finance product liability insurance programmed and export vendor development programmes.3 Since its inception the export import bank of India on a continuous basis providing training research finance consultancy and information services to both the Indian and overseas importers, which has created a new option for EXIM-BANK in export promotion mechanism.4 The overseas offices of the EXIM-BANK at Washington D.C. Singapore, Milan in South Africa Budapest and Johannesburg are strategically located for institutional linkages through World Bank, International ftlpnctory fund, European $ank for ^-construction and Jfevelopment, Asian development bank. The institution has financial linkages with export credit agencies around the world. 31 countries around the world through 53 cooperation segments have benefited the banks incentives through memorandum of understanding.5 On deferred payments the bank extends finance to Indian machinery manufactured goods, consultancy and technology service. Through regional development agencies the bank finances through cofinancing projects to assist the Indian exporters to participate in overseas projects Indian exporters jure avail of services like forfeiting under writing of issues, import finance through lines of credit from export credit agencies. Equity finance is available for acquiring available market opportunities for manufacturing, marketing and other services. Many Indian companies have benefited from the premier

4 69 export promotion institute, with regard to export marketing and export product development. EXIM-BANK is also extending the credit for foreign Governments and agencies in developing countries through buyer s credit and lines of credit for overseas importers. The increasing globalization of the world economy has embarked upon the export import bank of India for acting as an export financing institution, commercial export insurer, and a foreign investment catalyst in promotion of Indian exports. 4.2 OBJECTIVES OF THE EXIM-BANK The export import bank of India was established with the following objectives. 1) To extend credit assistance to Indian exporters of machinery, manufactured goods, consultancy, technology service and agro based products. 2) To study prospects for Indian exports, commodity wise and country wise and to suggest measures for acceleration of export sector. 3) To undertake co-financing with global and regional development agencies commercial banks export promotion councils and organizations both at centre and state level to assist the exporters in their efforts to take part in overseas projects.

5 70 4) To provide information and advisory services to enable the Indian exporters to evaluate the international risks, export opportunities and competitiveness. 5) To analyse international market access for Indian exporters through global marketing information. 6) To provide advice an international marketing and export data to enable the domestic exporters for effective participation in opportunities offered by global projects and M.N.C.s 7) To undertake research and analytical studies on specific industry and sub sector, which are having export potential. 8) To extend financial credit for export contract bids overseas. 9) To identify the various weak links of Indian exporters and offering them a permanent solution. 10) To create technical managerial, administrative and export quality skills among the domestic exporters to strengthen them global standards. 11) To translate national and foreign trade policies into concrete actions points.

6 71 12) To provide alternative financing solutions to the Indian exporters, guiding him in his efforts to be internationally competitive. 13) To develop mutually beneficial relationships with international financial community. 14).To initiate and participate in debates on issues related to India s international trade. 15) To forge close working relationships with other export development and financing agencies multinational funding' agencies and national trade investment promotion agencies. 16) To anticipate and absorb new developments in banking, export financing, and information technology. 17) To be responsive to export problems of Indian exporters and pursue policy resolutions. 18) To publish and establish literary sources through library and other information sources to facilitate the study of various subjects related to exports imports and foreign trade. 19) To invite global representatives who are interested in investing Indian industries which are export oriented.

7 72 20)To do all such other activities either along or in conjunction with other organizations as the economy may consider necessary incidentally or conductive to the objectives of the country EXIM BANK AND THE STAFF The EXIM-BANK is virtually a melting point of thriving minds including academicians, form back grounds of banking, engineering business management information technology, accountancy, economics and liberal arts. The institution is an excellent body for underlying 7 passion and professional excellence. 4.4 CORPORATE PHILOSOPHY The banks philosophy is mainly focused on people orientation and customer focus. The bank mainly believes in its customers as they are a key source. It develops its human resource by motivating through challenging assignments, up grading their skills through training programmes and recognizing professional excellence. The bank fallows an officer oriented, non-hierarchical work culture with an open office plan, facilitating for a free flow of interaction between and within groups. Export import bank of India as a model corporate citizen maintaining an equal ratio of men and women. Its high level office automation lean and multi skilled staff enabled optimum efficiency and profitability to the institution. Customer responsiveness is germane of the banks philosophy. The bank is constant!}' seeking to innovate and improve its products processes and delivery mechanisms to its

8 73 customers. The interactive mode of analysis followed by the bank and decision making through multidisciplinary cross functional groups has enabled the bank to offer best possible help to its customers. 4.5 GLOBAL NET WORiqg^PHILOSOPHY Export import bank of India is unique in its global and national network of infrastructure to its customers. The banks five overseas office branches at Budapest, Johannesburg Milan, Singapore and Washington D.C. have forged India s strategic linkages with the global markets. The institution is working with four tier institutional mechanism which includes. 1) Multilateral agencies including world Bank, Asian development Bank and African development authority. 2) Export -credit agencies. 3) Trade and investment promotion agencies in India and abroad. 4) Trade and industry associations in India DOMESTIC OFFICES OF THE BANK With the view of help and responding to regional development activities in the export sectoiy *hie export import bank of India has established eight regional offices at Ahamadabad, Bangalore.Chennai,

9 74 Hyderabad, Kolkata, Mumbai, New Delhi, and Pune. These regional offices working for export promotion identify the special needs of domestic exporters through a clause interaction, suggest and assists innovative instruments in accordance to the regions potential. The bank regularly interacts with commercial banks, financial institutions, developmental agencies. Government organizations and enterprises to strengthen the banks philosophy and infrastructural mechanism to meet the needs of domestic export sector ORGANISATIONAL SET-UP OF THE BANK The export Import bank of India shall consist the following organizational set-up. I. At Government level Board of Directors at Government level who includes a) Secretary Dept ofcommerce and industry Government of India b) Secretary, Economic delations, Ministry of'external affairs c) Secretary Bankingldivision and the Ministry of finance. II. From financial institutions a) Executive director. Reserve Bank of India. b) Chairman and managing Director, Industrialjevelopment Bank Of India.

10 75 c) Chairman and fc^magingjfirector, Export Credit Guarantee Corporation of India. III. From Commercial Banks a) Chairmanjstate Bank of India. b) Chairman and Whnaging Director-Canara Bank c) Chairman and Managing Director Bank of Maharastra. IV. Experts from Trade and Industry a) Professor andjfean, faculty of economics Delhi School of economics. b) Chairman and management consultant, pan Asian management foundation New Delhi. c) Professor and Dean Faculty of management and business administration, I.I.T. New Delhi. d) Vice president, Asian association of agricultural engineering pune.10

11 76 48 EXIM-BANKSMAJORPROGRAMMESTOEXPORTERS As contained in the memorandum of associations of the Export Import bank of India, the major programmers of the bank include. A FORMS OF DIRCT CREDIT ASSISTANCE FOR INDIAN EXPORTERS 1) Pre shipment credit. 2) Post shipment credit. 3) Lines of credit to exporters. 4) Export suppliers credit (Production equipment finance) 5) Finance for consultancy and Technology service. 6) Foreign currency preshipment credit. 7) Finance for export oriented units and exports processing zones. 8) Foreign currency lines of credit for importers. 9) Credit assistance under African development project.

12 77 10) Refinance of suppliers credit. 11). Foreign currency lines of credit for Importers. 12). Finance for Rupee expenditure for project export contract guarantees.11 B. EXPORT PROMOTION SCHEMES FOR DOMESTIC EXPORTERS THROUGH COMERCIAL BANKS 1. Refinance of export credit. 2. Export Bills Rediscounting facility. 3. Re lending term finance facility. 4. Re-finance of term loans to export oriented units. 5. Re -finance of term loans for computer soft ware exporters. 6. Small scale industry export bills re-discounting. 7. Bulk import finance. 8. Project finance. 9. Overseas investments finance. 10. Export marketing finance. 11. Export product development finance. 12. Finance for soft ware training institutes and technology parks. 13. Finance for minor ports development. 14. Working capital finance for exporters. 15. For faiting finance.12

13 78 C EXPORT PROMOTION SERVICE SCHEMES OF EXIM BANK. 1. Project preparatory service overseas. 2. Business advisory and technical assistance service overseas. 3. International merchant Banking service. 4. Export marketing information service. 5. Advisory service on multilateral agency funded projects (MFPO). 6. Information on establishment of joint ventures facilitation. 7. Product liability insurance programme.13 D. EXPORT PROMOTION PROGRAMMES 1. Promotion of Indian consultancy through Africa project development programme. 2. New package programmes for financing software product development. 3. Export marketing and quality certification. 4. New facility for Indian consultancy in Africa. 5. Land mark Rupee Guarantee loan. 6. Agri- business cell. 7. Institutional linkages planning and Research.14

14 79 A FORMS OF DIRECT CREDIT ASSISTANCE TO INDIAN EXPORTERS PRE-SHIPMENT CREDIT This enable the Indian exporters in buying raw materials other inputs, required in conversion of resources into export potential products. The exporters executing export contracts with a time exceeding not more than six months are avail of this incentive. Exporters of construction turnkey projects are also avail of this benefit with a provision of rupee mobilization expense. This term avail under short term contracts are applicable even under pre shipment credit. Many a times this line of credit mechanism is available for Indian companies which have undergone of one export contract for capital goods and finance to produce the goods which entails a production period of not less than six months this facility is also extended for financing temporary export contracts in terms of foreign currency to finance of imported inputs required in production of export potential. Between The sanctions and disbursements of reshipment production credit amounted to Rs and 95.9 crores. During it was 23.7 and 24.3 crores. For the year it was 90.7 and 89.2 crores and during it was 79.9 crores and 70.5 crores the year amounts to 82.5 and 76.4 crores with 90.4 and 83.2 crores during 1994 and 1995.,s

15 POST SHIPMENT CREDIT The deferred payment contract of an exporter, with a contract value. Excluding the advance payment received by him for more than five years is a severe burden on the exporters finance. With the objective of relieving the exporter from burden and to assist the exporter with a set of incentives the export import bank of India through reserve Bank of India, authorized the commercial banks to extend the exporters a post shipment credit referred as Term export credit this Facility is a granted by the export import bank of India for Indian exporters for preparing the eligible export potential goods. The rate of interest is determined by the exim-bank on the basis of structure and duration of the loan. 100% finance to the exporter is available on the certificate performance and order based method of export potential. Under order based method alone, exporter is avail of 80% of export order. The minimum amount of export order for financing is R M 12,500,00 and minimum amount of financing is RM 10, This credit facility is low interest rated and highly competitive in export financing LINES OF CREDIT TO EXPORTERS Under lines of credit to exporters scheme, Besides foreign governments finance is extended for foreign financial institutions and government agencies to on lend in the respective country for importation of goods and services from India. This scheme offers a long term finance for overseas financial institutions and agencies for trade of

16 81 capital goods and related services. Foreign governments and financial institutions are directly eligible for this term finance in importation of Indian goods and related services EXPORT SUPPLIERS CREDIT Export suppliers credit assisted by the export import bank of India enables the Indian exporters to extend term credit assistance to overseas importers of eligible Indian goods. Between the total sanctions and disbursements of export suppliers credit has amounted to Rs and crores, During it was and crores. The year amounted to and crores between it was amounted to 58.5 and 97.5 crores. The period amounted to and crores for the year and it was 187.4, and and crores. Lines of credit to exporters. This facility is extended to commercial banks, financial institutions, regional development banks and other overseas entities for providing non recourse financing option to Indian exporters. SMEs are the major beneficiary of this credit facility. Export import bank of India is renewing its focus on trade through lines of credit assistance to exporters. The bank has sanctioned 95.0 M.N.,U.S $ for the year for augmenting exports of goods and services form India. The countries benefited from the scheme includes Banco-Bradeseo (Brazil) Banco Cent Americano de-integration economic covering El Salvador, Guatemala, Honduras, Banco-de-commercio exterior de Colombia(Colombia) Banco- Industrial devenezuela (Venezuela) export

17 82 Import bank of Mexico (Mexico) Bank of Markazi, Jomhauri Islami Iran (Iran) Eastern and southern African trade and development Bank covering 16 countries in Africa). The financial institutions of these countries are specialized export promotion institutions like export Import bank of India. The Reserve bank of India through export import bank of India has enabled a strong export base for Indian exporters under this lines of credit the goods which are permissible to export under Government of India s export import policy are being included under this scheme. Particularly lines of credit has become effective market entry support for SMEs. Exim -Bank is in discussion with Latin American countries including Mexico Brazil Colombia Bolivia, Ecuador, Pern, Renezuela to increase LOC S to these regions for importing capital and tern key exports form India FINANCE FOR CONSULTANCY AND TECHNOLOGY SERVICE The export import bank of India under this scheme of assistance provides credit assistances to eligible Indian exporters exporting of consultancy and technology services to over seas entities for extending term credit on imports. India s has a very great export potential in consultancy services which are having spin off benefits. The export import bank of India with the goal of promoting Indian consultancy projects overseas, has underwent an agreement with International financial corporation Washington, with which Indian consultants are well market accessed short term assignments in Africa. Caribbean, Central America. South Pacific Poland, Mekong Delta and other regions. The funding fees for professional consultants from India is

18 83 funded by EXIM-BANK of India. IFC Washington provides foreign exchange assistance for Indian consultancy for meeting other costs such as travel lodging, boarding. The recent terms of EXIM-BANK has increased the payable fee to Indian consultants on the basis of assignment days from 110 to 180 days. This renewied package system from EXIM-BANK has motivated the Indian consultants for taking up overseas assignments. 40 assignments have been undertaken by the Indian companies under this programme from the countries of Africa Vietnam, Poland Mauritius. The major areas of the consultancy field includes oil and soaps, leather, shoes, textiles, financial accounting and MIS, soft ware development NEW FACILITY FOR INDIAN CONSULTANCY IN AFRICA. During the year the EXIM-BANK of India has under went an agreement with Africa based P.T.A. Bank of Nairobi for importing Indian consultancy projects in PTA financial projects of Africa. Preferential trade area bank is a regional development bank with 100% finance to eastern and South African region termed as comas. Many Indian consultants have gained market access for their consultancy service through technology, machinery, turn key projects. After 2001 the EXIM-BANK has reviewed its policy mechanism through PTA bank covering the fields of Parma cuticles, plastics, steel rolling, textiles, financial services. According to Indian capabilities the EXIMbank support has catalysed exports from India to COMESA through lines of credit suppliers credit, for failing equity finance for joint ventures in other Global countries.19

19 FOREIGN CURRENCY PRE-SHIPMENT CREDIT Foreign currency pre shipment credit assisted by export import bank of India enable the exporters of Indian economy for accessing finance from commercial banks for importation of raw materials and other inputs for production of export potential products. Short term foreign currency finance is available for Indian exports for procurement of export oriented production.20 The credit of finance under this scheme is re-payable in foreign currency from proceeds of the relative exports. Foreign currency pre-shipment credit represents an additional credit source to the Indian exporter in enlarging his export volumes. Manufactured goods and value added goods are the base for this assistance. The significance of the scheme lies in elimination of two way exchange conversion costs and exchange risks, by enhancing the export competitiveness foreign currency pre shipment credit is a cost effective credit when compared to rupee export credit and overseas suppliers credit loans availed from export import bank of India to commercial banks are exempted from cash reserve ratio, statutory liquidity ratio and incremental credit deposit ratio requirements. Exporters of electronic goods, capital goods and commercial banks, involved in on lending for export customers are the major beneficiaries. Interest rates are charged on par with, London inter bank offer rates. Repayment period extends up to 180 days from the date of disbursement.2i

20 FINANCE FOR EXPORT ORIENTED UMTS AND EXPORT PROCESSING ZONES For availing this credit assistance, the EXIM-BANK defines an export oriented company as any company with a minimum export orientation of 10% of net sales or annual export sales of Rs.5 crores, which ever is lesser. The export import bank of India extends term loans or deferred payment guarantees to 100% export oriented units, units in free trade zones and computer soft ware exporters units importing capital goods under export promotion capital goods scheme. Units undertaking expansion, modernization, up gradation are also eligible under this scheme. The bank extends term loans in Indian rupee, foreign currency and also deferred payment Guarantee on importation of capital goods. Banks cost of funds on foreign currency term loan is the base for fixing rate of interest. One percent of the loan is payable to the EX1M - BANK as service fee. Depending upon the projected cash flows re payments time period for the loan extends up to 10 years. Any acceptable security in addition to the project asset is considered as a security for sanctioning loan. Preliminary discussions with export promotion companies is the base for credit assistance under this programmed FOREIGN CURRENCY LINES OF CREDIT FOR IMPORTERS The eligible importers of export potential commodities from India gets this assistance of foreign currency lines of credit from export

21 86 import bank of India. The finance enable the Indian importers in buying export production inputs as raw materials, components, machinery and related inputs. The credit is repayed in foreign currency from the proceeds of relative exports. Domestic exporters are very much assisted by this FCPC in expansion of export volumes. Foreign currency lines of credit is much cost effective than rupee export credit and over seas suppliers credit CREDIT ASSISTANCE UNDER AFRICAN DEVELOPMENT PROJECT The African development bank international finance corporation and United Nations development programme jointly sponsors the Africa development project. 14 industrially advanced countries have supported the programme through direct funding assistance. The Africa development project scheme mainly aims at identification, construction of viable projects in re developing depressed regions of Africa. Export import bank of India on behalf of Government of India and has underwent an agreement with Africa development project bank, where by the EXIM-BANK providing the services of Indian consultants and technocrats in rebuilding Africa. Grant financing provided by EXIM- BANK has availed the Indian exporters in undertaking specific assignments in sub Sahara and African regions.23 On may 22nd 1999 export import bank of India and Africa development bank have jointly signed an agreement at Cairo in Egypt in co financing projects at Africa. Priority considerations have been given

22 87 for projects of small and medium enterprise. The project operations also includes exchange of information publications regarding business and foreign direct investments, logistic support of officials visiting each other for field survey, organizing work shops and symposium. Focus on co-financing projects has resulted in establishment of 27 projects for the current year the scheme of Africa development project assistance considerably mitigated cross border and payment risks associated with project exports. 53 regional member counters of AFDS have been benefited from this AFDB and EXIM-BANK joint scheme.24 The sphere of trade promoting activates in Africa and sub- Saharan regions, export import bank of India extends lines of credit to banks, financial institutions, Government agencies in those regions, countries like Algeria, maturations Uganda, Tanzania, Ghana, Kenya are some of the important beneficiaries from this scheme.25 Even SMEs in private sector of Africa have been assisted by Indian consultants through international finance corporation. Export import bank of India short lists the exporting companies for undertaking project in the Africa regions and the entire exporting expenditures of the companies will be met by EXIM-BANK RE-FINANCE OF SUPPLIERS CREDIT The eligible exporters of India gets this assistance from export import bank of India and the over seas importers gets term credit over 180 days from Indian exporters. Under this scheme the commercial banks in India eligible for dealing in foreign exchange gets 100%

23 88 refinance of term loans from Exim-Bank for supporting re-finance for Indian exporters. Exporters of eligible commodities form India as per the EXIM-BANK terms gets the credit assistance. Under this scheme. Exporting deal between domestic exporter and overseas importer an credit terms takes place for a duration of 30 days FOREIGN CURRENCY LINES OF CREDIT FOR IMPORTERS All the export potential eligible exporters from India get this foreign currency lines of credit from export import bank of India for acquiring imported machinery, raw material, related products required in export production. Recent policies of the EXIM-BANK has changed its priority for sanctioning credit for importing machinery and technological know-how. Preferably EXIM-BANK finances under this programme which are export related even importation of canalized items and consumable goods are eligible for finance under this scheme. The export import bank issue a letter of commitment to exporter s on request from commercial banks. B. EXPORT PROMOTION PROGRAMMES FOR DOMESTICCXPORTERS THROUGH COMMERCIAL BANKS Export Import bank of India in association with nationalized commercial banks in India offers multifarious export promotion programmes for Indian exporters. Through EXIM-BANK of India commercial banks in the country have become the source of medium

24 89 and short-term credit, ranges form 150 and 180 days. The Re discounting facility of EXIM-BANK to the commercial banks has availed the commercial banks for re-discounting export bills of small scale industries customers with not exceeding 90 days. Commercial banks are also availing the benefit of re-finance of supplier s credit, with which commercial banks offer credit to Indian exporting companies of eligible goods. The beneficiaries of this credit from the commercial banks in turn offers term credit over 180 days to overseas Imports. The following export promotion programmers from the commercial banks funded by export import bank of India are availed for Indian exporters and overseas importers REFINANCE OF EXPORT CREDIT Export -Import bank of India extends re finance of export credit to Indian commercial banks. Commercial banks in term offers credit to Indian exporters of eligible goods who extends term credit to overseas importers covering a period of 180 days. Along with commercial banks authorized dealers in foreign exchange from India are availed for this benefit from export import bank of India. Indian exporters are eligible for hundred percent re finance on deferred payments re finance on deferred payments. Under this facility, no minimum or maximum limit is fixed under this scheme. Contracts which are of high value EXIM - BANK extend post shipment credit directly to the exporters through commercial banks. Contracts which are of medium value say 5 crores, commercial banks them selves extends post shipment credit to the exporter with a 100% re finance facility from EXIM-BANK of India.2

25 EXPORT BILLS RE DISCOUNTING FACILITY Export bills re discounting facility of EXIM-BANK to Indian commercial banks enable commercial banks to rediscount export bills with a due period of not exceeding 180 days. Rate interest charged by EXIM-BANK ranges from 12 to 16% per annum. The bank introduced a variant programme of export bills re discounting (SSI) during 1985, under which export bills of small scale sector alone are eligible for re discounting. The consideration of the single of the export bills-portfolio, of commercial banks, the EXIM-BANK avails this facility, the submission of the written request and an undertaking confirming the holding of export bills in respect of which the facility is sought, commercial banks avails this facility. The re-payment period for the commercial banks on loans availed form EXIM-BANK depends upon the due dates of export bills. If the realization of the bill is before maturity date, Commercial banks are expected to re-pay the entire proceeds of the EXIM-BANK with subject to the availability of limit. Banks substitute such bills with other bills; the whole process of credit transformation between EXIM-BANK and commercial banks is much simplified RE-LENDING TERM FINANCE FACILITY With re-lending term finance facility banks over seas, extends term fiance to their clients for importation of a eligible Indian goods. The EXIM-BANK of India the foreign buyer and the supplier from India are availed of this service form over seas banks.29

26 RE FINANCE OF TERM LOANS FOR EXPORT ORIENTED UNITS Re-finance of term loans for export oriented units in India from exim-bank of India enables the commercial banks to offer credit for eligible exporters, export oriented units for acquiring indigenous and imported machinery and other related assets for export production. exim-bank re-finances full amount to the computer soft ware exporters granted by commercial banks. Commercial banks are the authorized dealers in foreign exchange acts as negotiating banks in a line of credit RE-FINANCE OF TERM LOANS FOR COMPUTER SOFTWARE EXPORTERS. Acquisition of imported and indigenous computer systems and project related assets are possible under this programme. The software policy from the Government of India announced during 1986 has considered EXIM-BANK as designated agency for facilitating, clearance and providing foreign exchange for importation of computer software systems for software exporters who are with 350% export obligation. EXIM-BANK of India offers foreign exchange clearance and finances under single umbrella, after monitoring the software export proposal, 50% of rebate is being provided as software exports on customs duty payable as Imported software systems. Eligible exporters of software packages from India are availed of this assistance directly, by way of

27 92 rupee and foreign currency term loans and as a re-finance to commercial banks in respect of rupee term loans extended by them for software. A spread of 2% per annum in allowed is case of re-finance, in favor of lending banks, subjected to their lending rates to exporters, organizations and companies engaged in exportation of software exports/selling up an export oriented software company are eligible for assistance under this scheme. With the furnishing of information on marketing arrangements, financial, technical and commercial viability of the projects for which finance is needed by the exporters in their proposals are eligible for this service. Programming service contracts, man power exports, applications development contracts with systems analysis and design, turn key systems involving total hardware and software solutions get s top priority under this assistance programme. Software exporters are much benefited for obtaining product, process certification, export marketing and even for export product development BULK IMPORT FINANCE Export import bank of India provides import finance of high amounts for Indian importers who in turn imports bulk import of consumable inputs. With bulk import finance high degree exporting companies, imports large volumes of imported commodities for manufactory export potential goods. Volume of credit under the scheme extends up to rupees one crore. Beneficiaries are availed of loans either in rupee terms or foreign currency rate of interest as import finance loans is minimum fixed by EXIM-BANK of India. Exporters who are

28 93 availed of this loan are having the time period of repayment up to one year. Eligibility assets pledged for bank stands as security for loan. Normal procedure of extending the loan is determined by the preliminary discussions of EX1M-BANK with exporters V ROJECT FINANCE The project finance assistance of EX1M-BANK includes funded and non funded facilities for overseas industrial turnkey projects, civil construction contracts as well as technical and consultancy service projects. Turn key projects includes supply of equipment along with related services, like design, detailed engineering, civil construction, erection and commissioning of plant chemicals, textiles, sugar, cement and commissioning of boilers are also included. Construction projects involves civil works, steel structural works, supply of construction material and equipment. Typical projects includes civil works for roads, railway lines, air ports, irrigation canals dams and buildings.32 exim-bank provides two types of assistance for project exporters which includes funded assistance and Non funded assistance NON FUNDED ASSISTANCE * Bid-bond : EXiM-BANK issues bid bond for the domestic exporters for a maximum period of six-months. In case contract is not secured, EXIM- BANK re-funds 75% commission to the original customer.

29 94 ADVANCE PAYMENT GUARANTEE Project exporters from India gets advance of 10 to 20% of the contract value as mobilization advance, which is generally recovered as a pro-rata basis from the progress payments during project execution.33 PERFORMANCE GUARANTEE Exim-bank issues performance guarantee of 5 to 10% of contract value until the completion of maintenance period or until the grant of final acceptance certificate 34 * GUARANTEE FOR RELEASE OF RETENTION MONEY With the guarantee for releasing of retention of money the exporters gets the contract payments without any retention by the client.31* w GUARANTEE FOR RAISING BORROWINGS OVERS SEAS Exim-bank assists the bridging finance to the project exporters at the earlier phases of the contract for supplementing the mobilization advance up to 10% of the contract value may be raised in foreign currency through a foreign bank against this guarantee.36

30 95 * GUARANTEE COMMISSION Guarantee commission is charged on exporters on the basis of stipulated rates decided by foreign exchange dealers association in India. Commercial banks in India issues guarantee to exporters in association with EXIM-BANK of India. * FUNDED ASSISTANCE Under the funded assistance pre-shipment rupee credit is extended for temporary funding to project exporters. Producers are also avail of pre-shipment credit in foreign exchange for financing export contracts. Majority of exporters gets the pre-shipment credit in terms of foreign exchange for financing the cost of imported inputs.37 * FOREIGN CURRECNY LOAN Eligible exporters in India gets this service of foreign currency loan at competitive rates to finance and purchase of third country material and normal construction machinery. These facilities are extended by EXIM-BANK individually or in participation with commercial banks.38 * FOREIGN CURRENCY EXPORT CREDIT Exim-bank makes an arrangement with overseas export credit agencies on the basis of origin of imports, and currency of re payment

31 96 under an export contract rate of interest and terms of the bank are always subjected to change. All the eligible exporters from India gets the facilities like remittance of foreign exchange from India for meeting initial expenses, inter-project transfer of funds and for opening accounts in overseas banks, and also for payment of agency commission, during the project processing period construction companies and firms from India normally uses Indian construction material only. If there is any mismatch of Indian equipment. The companies are eligible to procure construction equipment from the countries where projects are processed, on hire basis against payment of hire charges out of the foreign currency payments received under the contract. As a case to case basis the contractors are also permitted for importation of machinery from a third country. Subjected to the specific approval of reserve bank of India exchange control department. Indian equipments used in the contract, can be given as hire after completion of the construction contract to the other companies or over seas companies. * PAYMENT MECHANISM FOR THIRD COUNTRY PURCHASE Along with the exports from India, execution of contracts overseas requires procurement of third country goods and also purchase of material in the country where project contract is executed. Payments for such third country purchases are made through overseas buyer, or through overdraft unit in overseas bank accounts. Letter of credit by

32 97 exporter s with the availability of adequate secure from buyer and machinery terms. Exporters of spares of certain Indian equipments for free replacements requires no license with the value of the spares not exceeding 2.5% of FOB value. * TEMPORARY CASH FLOW DEFICITS FOR PROJECT EXPORTER Projects started by the exporters overseas are financed by export import bank of India through foreign currency. After the approval of RBI exim-bank extends remittances to exporters on re-partition basis. This takes place on the basis of recommendations of the delegated authority on clearing proposal. Some times temporary cash adjustments can be met in the 3rd country or the country in which project is exempted against appropriate guarantee from exporters sponsoring bank. Such type of additional finance would not exceed 15% of total contract value.39 * INTER PROJECT TRANSFER OF FUNDS Inter project transfer of funds are possible for an exporter who has under taken more than one project, simultaneously overseas. It is economical for the exporter during project construction and completion period. Reserve bank of India considers approval of funds up to 1 lakh

33 98 for inter project transfer and beyond this limit specific approval of working group is necessary. 40 * OVER SEAS INVESTMENT FINANCE Over seas investment finance is available from export-import bank of India for overseas joint ventures wholly owned or subsidiaries by the Indian companies. The major goal of this scheme is promoting the Indian projects overseas. Indian exporters who are making equity investment in an existing company or any project overseas with the approval of reserve bank of India or government of India or concerned authorities are the eligible beneficiaries of this assistance. Reserve bank of India automatically approves the companies, which submits proposals for joint ventures abroad or overseas. The government guidelines restrict the overseas investment finance on terms that the total value of the investment by the Indian company should not exceed 15 million U.S $ is in the regions of SAARC countries. It is permitted up to 30 million $ in the region of Myanmar and up to 120 crores in Nepal, Bhutan and other areas.41 If the investment proposals are above 15 million U.S $, the excess resources are raised through A.O.R resource, the exporter is allowed to invest overseas joint ventures, with the approval of the government of India. Indian companies are allowed to invest equity in overseas joint ventures by the way of capitalization of export proceeds of plant and machinery, technical know how free royalty and forex remittance of equity contribution.

34 99 Overseas investment finance is provided in terms of rupee term loans to Indian exporters and companies for financing their eqity investment overseas. Loans are also available in rupee terms for on lending their overseas joint ventures, wholly owned or subsidiaries. Even exporters have been provided guarantee for raising finance overseas for equity investment and for working capital requirements for. 42 overseas joint ventures. Regarding the rate of interest on overseas finance, rupee loans are linked to banks minimum lending rate foreign currency loans depends upon fixed or floating rates based on bank s cost of funds. Even interest is payable on reducing balances at half yearly rates. Exim-bank of India provides 100% re-finance to commercial banks in respect of rupee loans extended to the Indian promoter companies for equity contribution in overseas. EXPORT MARKETING FINANCE Under the lending programme for export marketing finance, the bank extends financial assistance to domestic exporters to create and enhance export capabilities and international competitiveness of Indian companies. Government of India has designed EXIM-BANK as the agency

35 100 to manage the export marketing fund. Export marketing finance is of 3 types. EMF-1 EMF-2 EMF-3 EMF-1: Is a world bank loan to India for the exportation of industrial and engineering goods. EMF-2: Is also a world bank loan for export development, which is created in the height of E M F -1. EMF-3:. Has been created by EXIM-BANK from its own resources. All the three programmes aim at accelerating export growth of targeted products with global markets.43 ELIGIBLE USERS OF EMF SUPPORT Companies who have strategic international marketing plan, companies which have established presence, in the domestic market, companies which are having satisfactory financial assets from private and joint sectors are eligible for this support, activities like desk or field

36 101 research, minor product adaptation, overseas travel and training quality certification, product launch, investment in machinery equipment are the major beneficiary programmes under this scheme. * QUANTUM OF FINANCE UNDER EMF Under export marketing fiance up to 50% of the cost of eligible activities are covered by this programme. Remaining 50% is expected to borne by Indian companies up to rupees six crores are available under export marketing finance -3 for the activities which have been not covered by EMF-land EMF -2.The rate of interest is 15% of the total asset capital, valued rupees 50 lakhs is the maximum grant available to the exporter under export marketing finance-3. The rupee loan under the same scheme is made available up to rupees 6 crores. Cost of expenditure like, consultancy and advisory expenditure, product adaptation, testing and marketing launch cost falls under this scheme. Costs like hardware and equipments costs, expenditure on tooling and finishing are excluded form this. EXPORT PRODUCT DEVELOPMENT PROGRAMME With the idea of support and systematic export product development plan, the export import bank of India has introduced export product development programme. The programme mainly aims at development of export potential products with a focus on industrialized markets, companies which are working with product development plans,

37 102 companies which are having established track records and finances are eligible for assistance under this programme. Activities of such as product design, research and development activities including cost of manufacture of prototypes, development of tooling, tigs, fixtures, process development costs and costs of product launching are availed of benefits from this programme. Rate of interest depends upon cost to cost basis. The re-payment period of the loan ranges from 5 to 7 years. Any fixed assets of the borrower or security as may be considered appropriate on term basis will be treated as the major security at the time of loan sanctioning by the export import bank of India.44 * FINANCE FOR SOFTWARE INSmTUITIONS AND TECHNOLOGY EXPORT AND ESTABLISHMENT Financing of software industries, technology parks and export establishments, through which, export import bank of India mainly aims at expansion and establishment of software exports from India. Exporting industries, companies and establishments which are having good export track record and sound financial set up are eligible for credit assistance under this scheme. The major activities eligible for credit assistance under this scheme are acquisition of software parks, lands, buildings software related equipments and the activities agreed by the EXIM-BANK. Loans are issued in terms of Indian rupee and foreign currency depending upon requirements. Floating rates on rupees loans and fixed rates on foreign currency loans are charged on the term basis of semi-annually or on reducing balances. ExiM-BANK charges 1% of finance as service charge on total loan amount.45 sanctioned repayment

38 103 period of the loan depends upon nature and structure of the project upon which period is extended up to 5-7 to 10 years. FINANCE FOR MINOR PORTS DEVELOPMENT Indian companies and corporates are being provided by the export import bank of India, a term finance and non funded facilities for enhancing port development. Development of minor ports related to export infrastructural activities is the main goal of this programme. Developments of minor ports are the basic necessary for enhancing Indian exports to international markets. Indian factories, corporate enterprises, export oriented organizations are the major beneficiaries from this scheme, cargo handling and storage, dry locks, ship breaking activities are very much encouraged. Repayment period of the loan ranges from 7 to 8 years. Loan sanctioning depends upon the security pertaining to proposed company or assets belonging to proposed corporate guarantee. After preliminary discussions with company, personal and corporate guarantees loan being sanctioned.46 WORKING CAPITAL FINANCE FOR EXPORTERS Export capabilities of the domestic companies is being enhanced by working capital finance programme of the export import bank of India. The requirements of the exporting companies are met by the EXIM-BANK which ranges from 1 to 5 years. Units setup in export

39 104 processing, zones units under the 100% export oriented scheme, units importing capital goods under export promotion capital goods scheme, units undertaking expansions / modernization, up gradation/ diversification progammes of existing export oriented units with export orientation of 10% of sales or export sales of Rs.5 crores per annum etc., are the major eligible companies benefited under this scheme. Beneficiaries of the loan are availed up to 80% of the demand loan component of working capital with a minimum of 20% margin. Interest rates on loan are payable at floating or fixed interest rates, semi annually on reducing balances. Long term working capital finance is also available from export-import bank of India for the export oriented units * with installed capacity of above 5 crores. Loan facility have been provided in terms of both foreign currency and Indian rupee. 1% of service fee is being charged by exim-bank on total sanctioned loan amount. Repayment period of the long term working capital finance ranges from 1 to 5 years total fixed asset of the company, personal guarantees of promoter directors / corporate guarantee of the group companies, marketable securities of the companies are the major securities for loan avail 47 * FOR-FAITING FINANCING A NEW FINANCE OPTION FOR INDIAN EXPORTERS For faiting is a new mechanism of financing Indian exports introduced by EXIM-BANK of India, surrender of rights is the meaning of a French word forfait From which exim-banks mechanism of forfeiting is being derived. The exporter surrenders, without recourse to

40 105 him, his rights to claim for payment on goods delivered to an importer in return for immediate cash payment from a forfeiter. Which means non recourse discounting of export receivables. The for faiting mechanism enables the exporter in India for converting credit sale in to cash sale with no recourse to the exporter through export import bank of India.43 All exports of capital goods and other goods made on medium to long term credit are eligible for financing under this scheme. Exim- BANK forfaites receivables under a deferred payment contract of export of goods, evidenced by bills of exchange or promissory notes. Exporter endorsed the bills of exchange or promissory notes, baked by coacceptance from a buyers bank, without re-course in favor of the far faiting agency for discounting cash proceeds. Avalisation is the common term used for banks acceptance. Transitions under the scheme takes place only when for faiting accepts the co-accepting bank of the importer. Exporters request for an export transaction eligible for failing is being considered by the EXIM-BANK through indicative and firm for failing quotations for discount sale, commitment and fees form overseas agencies. All the received bills of exchange or promissory notes are being sent by the exim-bank for faiter, who in return remittance the cash to the Indian exporters account after discounting the necessary transaction fee.

41 106 Under this transaction EXIM-BANK issues appropriate certificates for all the eligible Indian exporters for remitting commitment fee and other charges. Reserve banks of India under vide AD (GP series) circular No.3 dated has been authorized the exim bank of India for facilitating export financing through for failing. * OPERATING COST OF FOR-FAITING MECHANISM transactions. Three important cost elements have been involved in for failing > Commitment fee > Discount fee > Documentation fee A. Commitment fee: Exporter pays a commitment fee to the forfeiter for executing specific for failing transactions at a firm discount rate within a specified period of one year. B. Discount fee: Exporter pays interest cost in terms of discount fee for the entire period of credit transaction, and the same is deducted by the forfeiter from the account of exporter, against the available promissory notes or

42 107 bills of exchange. Discount fee is computed on the basis of relevant market interest rates reflected by the London inter bank offered (L.I.B.O.R) for the credit period and the currency involved, plus risk assumed by the forfeiter. C. Documentation fee: Straight forward for fait transactions involves no documentation fee. A documentations fee is charged on extensive transactions, and legal work process. * Benefits accrued to the exporter from for FAITING a) Domestic exporter improves liquidity and cash flow by converting deferred payment export in to cash transaction. b) Exporter because free from cross border political and commercial risks associated with export receivable. c) Domestic exporter benefits up to 100% of export finance as compared to 80-85% finance being available from conventional export credit progammes. d) For failing facility does not impact the exporter s borrowing limits without a re-course on finance to exporter. For failing represents an additional source of cash funding.

43 108 e) For faiting facility enables the domestic exporter to be free from credit administration and collection problems. f) Exporter saves insurance benefit as for faiting obviates the need for export credit insurance. Export transactions under the for faiting scheme are being considered, by the export-import bank of India on for fait quotation by the bank. The acceptance of the quotation of a particular country depends up on for faiting agencies, perception of risk quality and transaction commitment towards a third country. * Documents required for exim-bank under the Scheme > Name and address of the foreign buyer. > Country to which exports are to be sent > Name of the guarantor bank from the foreign country. > Nature of goods to be exported. > Order form and quantity required > Net amount of order- base-price and interest rate. > Delivery period and repayment schedule. > Name of the authorized dealer who handles the export transaction for domestic exporter in India.

44 109 C. EXPORT PROMOTION SERVICE SCHEMES OF THE EXIM-BANK PROJECT PREPARATORY SERVICE OVER SEAS Project preparatory service overseas programme has been introduced by the export import bank of India for providing grant finance for using Indian consulting inputs at preparatory stages of project services overseas. The programme was designed by the eximbank for supporting studies covering pre-investment, project formulation and project implementation. Loan available under this scheme limits to Rs.20 lakhs for individual case and 10 lakhs as a grant.49 Overseas government organizations, institutions, multilateral institutions, Indian exporters are the eligible entities for P.P.S.O finance BUSINESS ADVISORY AND TECHNICAL SERVICES OVERSEAS Business advisory and technical service overseas is a sequel arrangement to the Africa development program,. Being introduced by the EXIM-BANK. Under this programme, the cari bean and central American authorized, south pacific authorities, and polish business development authority. Are assisted by Indian technological firms for offering technical and managerial assignments. Assignments comprise pre-feasibility studies. This programme of the export import bank of

45 110 India has established a link between European economic community en and Indian trade.' INTERACTIONAL MERCHANT BANKING SERVICE International merchant banking service programme was introduced by export import bank of India with the two objectives of foreign currency financing and advisory services for evolving optimum financial packages from Indian companies to overseas projects IMB desk realized foreign currency resources for exim-bank for on lending to Indian project exporters for meeting non rupee cost of overseas projects. With the approval of working group on export finance international merchant banking desk raised foreign currency resources for exim-bank for an lending to Indian exporters for meeting non-rupee cost of overseas projects against 35% export obligation. Software exporting companies are eligible to get foreign currency loans which are being translated as comparative cost. Besides providing foreign currency loan international merchant banking desk is also equipped in providing credit for Indian exporters. Indian companies submit bids for overseas contractors with the approval of working group on export finance. The loans sanctioned for Indian companies are examined by the appropriate authority of exim bank. Commercial rates and floating rates are fixed as loans sanctioned under this scheme.51

46 Ill EXPORT MARKETING INFORMATION SERVICE Export marketing information service is a new option for software companies for export production and marketing information service includes strategic export marketing plans, for enhancing identified target markets at international level. Export import bank of India also executes international technology fairs, preparation of quality promotional material for over seas marketing. Recent globalization has enabled the exim-bank for introducing quality certifications such as TSO-900, Tick IT which have enhanced international credibility and dependency on overseas markets ADVISORY SERVICE ON MULTILATERAL FUNDED PROJECTS OVERSEAS Indian exporting firms have been provided by EXIM-BANK the advisory and promotional services on multilateral funded projects overseas related to marketing cost and exporting risk. The EXIM-BANK operates a specialized group for enhancing domestic exporters in securing multilateral funded projects. World bank, Asian development bank and African development bank are the co-partners with eximbank under this programme. Indian customer is undertaking studies related multilateral agency projects are assisted by EXIM-BANK under front end financing scheme as a part of project preparatory service overseas programme.53

47 112 D. EXPORT PROMOTION PROGRAMMES Indian export sector has enhanced its share in the global trade, very much influenced by export promotion programmes of the export import bank of India. The following programmes high lights the role of EXIM-BANK in this context PROMOTION OF INDIAN CONSULTANCY THROUGH AFRICA PROJECT DEVELOPMENT PROGRAMME International Finance Corporation and Africa development bank of India are jointly sponsoring the above programme. The scheme is assisted by 14 donor countries. Since the inception of the EXIM-BANK it is having a close relation ship with many African countries with the view of promoting Indian consultancy in Africa and neighboring countries. Africa project development programme is a unique in this context NEW PACKAGE PROGAMME FOR FINANCING SOFTWARE PRODUCT DEVELOPMENT New financing option has been introduced by the exim-bank for Indian exporters specially highlighting software technology. a) Rs.12 crore grant for funding software and technology consultancy.

48 113 b) Grant support funding for multilateral funded agency projects up to 15 lakhs. c) Enhanced funding for overseas assignments awarded to Indian countries. d) New facility for promoting Indian consultancy in Africa. e) Comprehensive package for financing Indian joint ventures overseas SOFT WARE PRODUCT DEVELOPMENT Software industry in India is largely dominated by professional services to support the industry. EXIM-BANK has introduced software financing package programme below the EXIM-BANK minimum lending rate. Rupees two crores is being financed by the bank under software package scheme annually. The scheme covers import of software tools encryption technologies, hard work for product development, specialized skills, up gradation and related costs EXPORT MARKETING AND QUALITY CERTIFICATION Exim-BANK is extending grant support for software companies for marketing export commodities. Companies are being insisted by the bank for security international quality standards as such ISO 9000, Ticket, CMM-SEI. An amount of rupees ten crore is being spent annually for maintaining international quality standards.'"0

49 NEW FACILITY FOR INDIAN CONSULTANCY IN AFRICA Nairobi based PTA bank and EXIM-BANK of India are cofinancing Indian consultants in PTA financed projects of Africa. PTA bank is a financial arm in preferential trade area of south and eastern Africa. 2 million U.S Dollars is being spent by exim-bank for the year The profile of the projects include pharmaceuticals, plastics, steel rolling, textiles, financial services and allied industries. In addition to equity finance bank, is offering on lending loans to Indian ventures overseas. Indian companies are also benefiting EXIM-BANK guarantees for enabling them overseas EXIM-BANK OF INDIA AND U.S EXIM-BANK ON LAND MARK RUPEE GUARANTEE LOAN Landmark rupee guarantee facility agreement was signed by export Apex banks of India and U.S.A on September 14th 2000 at Washington D.C. This facility is unique in several aspects the scheme is the basis for U.S EXIM-BANK for extending rupee term loans for American importers accessory material from Indian markets. Since import loans are denominated in rupee terms, exchange risk for indo U.S companies are through convertible home currency. The memorandum of understanding signed by both banks on march 24th 2000 high lights the trade norms. U.S.A being the major source of

50 115 capital goods and technology, this rupee land mark facility is an cost free instrument in promoting trade between the countries EXIM - BANKS AGRP BUSINESS CELL The new economic reforms of WTO enabled considerable scope for exporting Indian agricultural products with a clouser look an global cost conditions. This focused the EXIM-BANK of India in establishing Agri business cell in December The seminar titled "Export of Agricultural products, prospect and challenges in association with maharastra government at Pune served as the forum for clear assessment of the subject. Agri export advantages a monthly news letter is a product of this scheme. Exim-bank has taken a step ahead in establishing agro portal regions INFORMATION AND ADVISORY SERVICES Institutional linkages, planning and research a memorandum of under standing signed by UTI and EXIM-BANK has enabled the market access for small and medium sized externally oriented companies. Foreign economic relations board Turkey, BEI association of Indonesia, Halton national bank limited of Srilanka are the active members of the board. Advancement in international linkage of EXIM-BANK has enabled in exchange of trade and investment related information for universal regions. Indian machinery, manufatural goods, consultancy and technology services are being financed by exim-bank on deferred

51 116 payments. Exporters are also being financed by regional and global agencies though the media of exim-bank BANK INITIATIVES Indian foreign trade is being up graded by export import bank of India through new initiatives such as. 1) Financing of research and development projects at concessional rates. 2) Encouragement through equity participation on Indian ventures abroad. 3) Provision of working capital finance for exporting companies. 4) Special financial package for knowledge based industries as such information technology, computer software and pharmaceuticals. 5) Establishment of co-operative agreements with PTA bank, U.S EXIM-BANK, bank of China, Italy, Vietnam, and Korea C EXIM AWARD FOR BUSINESS EXCELLENCE The confederation of Indian industry and export-import bank of India have jointly instituted CII-Exim award for business excellence. The award constituted to promote the awareness of business excellence through global market capture.^9 The exporting companies with a turnover of sales up to 50 crores and more than that are eligible for the award.

52 HISTORY OF AWARD WINNERS 1995: 1) All India shield award for excellence in export of electronics and computer software, awarded to Elelectronics and computer software promotion council New Delhi. 2) Institute of Charted accountants of India, New Delhi was the CII- Exim best annual report award. 3) Business Excellency awards were given to a. Tata Iron and Steel Co. limited. b. India aluminum co-limited. c. Widia (India) limited : 1) Electronics and computer software promotion council New Delhi won the special award for excellence under Category innovation of new products 2) Ministry of commerce, government of India received the award of Certificate of merit for export performance 3) CRB capital markets ltd. received the Lloyds rolling trophy for global excellence.

53 118 4) Hewlett Packard India Limited, Maruthi Udyog limited received CII-EXIM award as the journey towards business excellence : 1) Infosys won the Best regional company award. Infosys was judged by the world economic forum as on of Indians most remarkable and rapidly growing entrepreneurial companies.62

54 EXIM-BANK S TRANSACTIONS BUSINESS TRANSACTIONS TABLE 4.1 EXIM-BANK BIDS APPROVED YEAR Rs. IN MILLION NA i TOTAL SOURCE: EXIM-BANK S ANNUAL REPORT

55 TABLE 4.2 EXIM-BANK COMMITMENTS IN PRINCIPLE YEAR Rs. IN MILLION NA TOTAL Source :Ibid.

56 121 TABLE 4.3 EXPORT CONTRACTORS SECURED BY EXIM-BANK YEAR Rs.IN MILLION TOTAL Source :lbid.

57 EXIM BANK LOANS TABLE 4.4 LOANS SANCTIONS OF EXIM BANK YEAR Rs.IN MILLION TOTAL Source :Ibid.

58 TABLE 4.5 DISBURSEMENTS OF LOANS BY EXIM-BANK YEAR Rs. IN MILLION TOTAL Source ;Ibid.

59 TABLE 4,6 OUT STANDINGS OF EXIM BANK YEAR Rs.IN MILLIONS TOTAL Source :Ibid.

60 EXIM-BANK GUARANTEES TABLE 4.7 EXIM-BANKS COMMITMENTS IN PRINCIPLE YEAR Rs. IN MILLION TOTAL Source :Ibid.

61 TABLE 4.8 GUARNATEES SANCTIONED BY EXIM BANK YEAR Rs. IN MILLION TOTAL Source :Ibid.

62 TABLE 4.9 GUARANTEES ISSUED BY EXIM-BANK YEAR RS.IN MILLION TOTAL Source :lbid.

63 TABLE 4.10 OUT STANDING GUARANTEES OF EXIM-BANK YEAR Rs.IN MILLION TOTAL Source :Ibid.

64 EXIM-BANK RESOURCES TABLE 4.11 EXIM-BANKS TOTAL PADIUP CAPITAL YEAR Rs.IN MILLION TOTAL Source :Ibid.

65 TABLE NO 4,12 TOTAL RESERVES OF EXIM-BANK YEAR Rs. IN MILLION TOTAL Source :lbid.

66 TABLE NO 4.13 EXIM-BANKS TOTAL DEPOSITS YEAR RS IN MILLION TOTAL Source :Ibid.

67 132 TABLE NO 414 EXIM-BANK'S OTHER BORROWINGS YEAR Rs. IN MILLIONS TOTAL Source :lbid.

68 TABLE NO 4.15 TOTAL RESOURCES OF THE EXIM-BANK. YEAR Rs. IN MILLION TOTAL Source :lbid.

69 Textiles l abrics & manufactures (terms & Jewellers Engineering (toods Agricultural & Allied Products Chemicals & \lied Products l eather & Manufactures Others Composition of India's Exports (Rs. in bilion) 100 ISO 200 2S ') Graph-4.1 >

70 135 Petrolium. Oil & Lubricants Capital Goods Pearls & Precious Stones Edible oils '* Iron & Steel Fertilisers Plastic Material & Artificial Resins Non-ferrous Metals Paper & Products ledicinal & Pharmaceutical products Chemicals Others Composition of India's Imports (Rs. in hilion) m c r

71 136 Direction of India s Foreign Trade (Rs. in bilion) Exports to ( ) (OECD OPEC Eastern Europe Developing Countries Others Graph-4.3

72 137 Direction of India s ForeignTrade (Rs. in bilion) Imports from ( ) i OECD OPEC Eastern Europe Developing Countries Others Graph-4.4

73 138 Direction of India s Foreign Trade (Rs. in bilion) Exports to ( ) I OECD OPEC Eastern Europe Developing Countries Others Graph-4.5

74 139 Direction of India s Foreign Trade (Rs. in bilion) Imports from ( ) loecd 30OPIX ^P Eastern Europe ^P Developing C ountries ^ p o th e rs Graph-4.6

75 140 Exim Bank's Total lending ( R s. in m i l l i o n ) J r rf c r sc 0 1 r- r crr? a -r ar* r rr rr 3C C1/ rr 1 1 sc IT r G L o a n s & A d v a n c e s Graph-4.7 O' i O' O' C 7' Ch - > 0c 7' 7' - c c

76 141 Exim Bank's Regional Distribution of Loans Sanctions and Disburcement (Rs. in million) Sanctions West Asia HI Sub-Sahara Africa Hi America South Asia ^ N orth Africa Europe & CIS Graph-4.8

77 142 Exim Bank's Regional Distribution of Loans Sanctions and Disburcement D isburcem ent (Rs. in million) l) IS West Asia I I Sub-Sahara Africa America South Asia North Africa G rap h -4.9

78 143 Exim Bank's Total Earnings (Rs. in million) * t" h' r- o <N <N fs 0 oc 0»r, L1 L * Dividend Graph-4.10 Profit Before Tax

79 144 Exim Bank's Industrial Distribution of Loans Sanctioned (Rs. in million) Vehicles Auto & Auto Components Construction Good & Equipment H Other Capitals & Engineering Goods I Consumer Goods Railway Rolling Stock Hi Computer Software I Consultancy Services r I Agricultural Products & Food Processing LU Telecommunications IH Textiles & Garments Machine Tools & Accessories Metal & Metal Processing Power Generation & Distribution Ports Equipment Petroleum i Leather & Leather Products Hotels Chemicals, Drugs & Pharmaceuticals ; Miscellaneous Plastics & Packaging GrOph-4.11