In recent years, Indian project exporters have secured diverse contracts exemplifying their versatility and technological capabilities. We, at EXIM Bank, have been one of the prime movers in encouraging project exports from India; and have enabled Indian companies to secure contracts across various geographies over two decades and supplement the development objectives of host countries.
We have been providing a steady stream of support to project activities in engineering, procurement, construction (civil, mechanical, electrical or instrumental). This includes the provision of specific equipment related to supplies, construction and building materials, consultancy, technical know-how, technology transfer, design, engineering (basic or detailed). We also support existing or new projects, plants or processes that require additional assistance in processes such as international competitive bidding: including multilaterally funded projects in India.
We extend funded and non funded facilities to export of projects and services categorized as:
Civil engineering and construction projects
Involves civil works, steel structural works, and associated supply of construction material and equipment for various infrastructure projects.
Turnkey projects
Involves supply of equipment along with related services, like design, detailed engineering, civil construction, erection and commissioning of plants and power transmission and distribution.
Technical and Consultancy Service contracts
Involves the provision of know-how, skills and personnel training. Typical examples of services contracts are: project implementation services, management contracts, super vision of erection of plants, CAD / CAM solutions in software exports, finance and accounting systems.
Supplies
Involves export of capital goods and industrial manufactures. Typical examples of supply contracts are: supply of stainless steel slabs and ferro-chrome manufacturing equipments, diesel generators, pumps and compressors.
Funded Facilities
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Pre-Shipment Credit
Pre-Shipment credit is provided in Indian and foreign currency to support the company with appropriate access to finance at the manufacturing stage. Such credit facilities enable exporters to purchase raw materials and other inputs, and enables provision of Rupee/FC mobilization expenses for construction/turnkey projects. We also provide foreign currency pre-shipment credit facility to import raw materials and other inputs for export production.
Post-Shipment Credit
Post-Shipment credit fiinances the export bill after shipments have been made. This facility enables Indian exporters to extend term credit to importers at the post-shipment stage. We extend such facilities individually or may even collaborate with a commercial bank on a case-to-case basis.
Eligibility Criteria
Indian manufacturers and project exporters can use these facilities to support their export trade financing requirement.
The facilities cover Indian capital and engineering goods and related services.
To use our facilities, any of the following securities can be provided:
- - Cash collateral
- - Corporate guarantee
- - Shareholders and / or Director's guarantee
- - Landed property
- - Charge on fixed and/or floating assets of customers
- - Assignment of insurance policies, agreements, contract proceeds, rights and benefits
- -Any other security acceptable to the Bank.
Export Project Cash Flow Deficit Finance (EPCDF)
Export Project Cash Flow Deficit Finance (EPCDF) facility is provided to Indian Project exporters executing project export contract overseas. The facility (available in domestic and foreign currency) helps take care of temporary cash flow deficits during contract execution period.
Eligibility Criteria
The following entities can avail of credit under our Finance for Deemed Exports facility:
Indian companies executing contracts within India, but financed by multilateral funding agencies.
Contracts for which export benefits are available under Foreign Trade Policy
Non Funded Facilities
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Indian companies can avail non-funded facilities to secure and facilitate execution of export contracts or deemed export contracts.
Advance Payment Guarantee (APG):
This helps secure a project mobilization advance as a percentage (10-20%) of the contract value. This is a guarantee issued to project exporters and is generally recovered (on a pro-rata basis) from the progress payment during project execution.
Performance Guarantee (PG):
A performance guarantee for up to 5-10% of contract value may be availed of by an exporter. This is valid until completion of maintenance period and/or grant of Final Acceptance Certificate (FAC) by the overseas client.
Retention Money Guarantee (RMG):
This enables one to obtain the release of retained payments from the client prior to issuance of Project Acceptance Certificate (PAC) / Final Acceptance Certificate (FAC).
Other Guarantees:
e.g. in lieu of customs duty or security deposit for expatriate labour, equipment etc.
Eligibility Criteria
Indian project exporters securing overseas or deemed export contracts.
