The Export-Import (Exim) Bank of India has extended a USD 35.26 million loan for Mumbai based Kalpataru Power Transmission Ltd (KPTL) to execute a power transmission project in Senegal.
i.The Credit facility was extended under the National Export Insurance Account (NEIA) scheme. NEIA would provide financing options to Indian project exporters with the support of cover from NEIA Trust.
ii.The project would enable KPTL to secure energy supply in the southern regions of Senegal viz, Tambacounda, Ziguinchor, and Tanaff, to reduce operating expenses, and the cost per kWh(kilowatt-hour).
iii.Exim Bank has signed a credit agreement with the Ministry of Economy, Planning and Co-operation of the Republic of Senegal, for the construction and installation of a 225 kV overhead transmission line from Tanaff to Ziguinchor (~92 km) in Senegal.
iv.The bank has also provided a credit facility of USD 200 million for KPTL under NEIA to support the construction of a 225kV transmission line for the Tambacounda – Kolda – Ziguinchor link in Senegal.
i.It is a scheme that has been set up by the Government of India to facilitate medium and long-term exports, due to the limitations of the Export Credit Guarantee Corporation of India (ECGC) Limited in providing adequate cover on its own.
ii.Medium and Long-term export projects which are viable and don’t have reinsurance are eligible for inclusion under NEIA.
Recent Related News:
On 3rd March 2021, on behalf of the government of India, the Export-Import Bank of India (Exim Bank) signed a soft loan deal of 10.40 million USD (around Rs.75.99 crore) with Eswatini (former Swaziland).
About Export-Import (Exim) Bank of India:
Establishment – March 1982
Headquarters – Mumbai, Maharashtra
CEO – David Rasquinha
Capital – Dakar
President – Macky Sall
Currency – West African CFA franc