| Date: |
21-11-2014 |
| Subject: |
Export Import Bank of India plans to set up Rs 1.500 crore shipping fund |
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MUMBAI: The Export Import (Exim) Bank of India plans to set up a shipping fund with Rs 1,500 crore of capital support from the government to help the ailing shipbuilding industry and strengthen its export potential.
The export finance institution also plans to start SME advisory services to assist small and medium enterprises in small cities and towns in accessing global markets and increase contribution of exports to the 'Make in India' campaign of the government.
The proposal on the dedicated shipping fund is "at an advanced stage", Exim Bank's chairman and managing director Yaduvendra Mathur has told reporters. The fund will be for financing the construction and refitting and repair of ships, Mathur said on the sidelines of the Asian Exim Banks Forum in Jodhpur. He said the government has decided to set aside Rs 1,500 crore, which when combined with Exim Bank's capability to leverage 10 times can result in the availability of Rs 15,000 crore in fresh liquidity to the sector.
"The National Manufacturing Council is strongly supporting creation of this fund within Exim Bank," Mathur said, adding that the Prime Minister's Office is also supporting Exim Bank. Additionally, the government can also take advantage of Exim Bank's capabilities like raising funds through bond issues abroad, he said.
The shipping industry in India is going through a severe slowdown, according to a recent study by Exim Bank. Many companies in the industry are in financial trouble. The study also noted the strong potential the industry has.
Citing South Korea as an example, Mathur said the ship-building sector has a tremendous potential to emerge as a strong foreign currency earner for India. Exim Bank is also helping state governments which have been lagging in exports draft an export policy, Mathur said. It has already helped Assam draft such a policy.
Mathur said Exim Bank is looking to increase its presence in Delhi and may be shifting some officials from the line of credit department to Delhi as their work involves close coordination with Union ministries. The institution is based in Mumbai.
Source : economictimes.indiatimes.com
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