Mumbai : Government of India, through Export-Import Bank of India [Exim Bank], has extended a Line of Credit [LOC] of USD 125 million to the Government of Sudan, which is the second and final tranche of the total credit commitment of USD 150 million for financing Mashkour Sugar Project, in Sudan. The LOC agreement to this effect was signed in New Delhi by Mr. T.C.A. Ranganathan, Chairman & Managing Director, on behalf of Exim Bank and H.E. Mr. Ali Mahmoud Mohamed, Minister of Finance and National Economy, on behalf of the Government of Sudan, in the presence of Hon’ble Mrs. Praneet Kaur, Minister of State for External Affairs, Government of India, diplomats of both countries.

With the signing of the above LOC Agreement for USD 125 million, GoI, till date, has extended seven Lines of Credit to Sudan, taking the total value of LOCs extended to USD 691.90 million. The LOCs have supported export of items like electricity equipment, photovoltaic cells, diesel locomotives, textile machinery, pumpsets, supply of bogies & spares, setting up of 4 x 125 MW Kosti combined cycle power plant in Sudan being executed by Bharat Heavy Electricals Ltd. (BHEL), Singa-Gadaref transmission and sub-station project, supply of agricultural inputs, technical and laboratory equipment to higher educational institutions, scientific equipments, solar electrification, equipments for meeting requirement of Sudan Railways, micro-industrial projects and development of livestock production and services. GoI, through Exim bank, has earlier extended a LOC of USD 25 million as first tranche to finance Mashkour Sugar Project, in Sudan.

Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon shipment of goods. The LOC will be used for sourcing of goods and services from India. Exim Bank has now in place 175 Lines of Credit, covering over 76 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments of over USD 9.27 billion, available for financing exports from India. GoI’s LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India’s exports, GoI’s LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.

Source : Sachin Murdeshwar