Cabinet approves proposal for providing concessional financing scheme to support Indian companies
This will help Indian companies to bid for large projects abroad.
The repayment of the loan would be guaranteed by the foreign Government.
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 Secretary (DEA) and will have members from the 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 of this Committee.
The Committee will have powers on conditions within reasonable limits, on a case by case basis, during the first two years of implementation of the scheme.
The projects financed under these terms will be monitored by the Committee.
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 percent 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.
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