US Ex-Im Bank approves USD 1.4 bn loans to Indian companies

NEW DELHI: The US Export-Import Bank today said it has approved loans worth USD 1.4 billion (about Rs 6,300 crore) to Indian companies, including Reliance and Punj Lloyd, in the nine months to June 30, 2011, as against USD 53 million in the entire 2010 financial year.

The US Ex-Im Bank follows a financial year beginning October.

"During the nine months of fiscal year 2011, Ex-Im Bank has approved 173 transactions totaling USD 1.4 billion in financing of US exports to India, which supports over 10,000 US jobs," the chairman of the export credit agency of the United States, Fred P Hochberg, told reporters here.

Some of the companies that have availed the loan facility during the current fiscal, which will end in September, 2011, include Reliance Industries, Punj Lloyd and Azure Power Rajasthan Ltd, he said.

Ex-Im Bank's total exposure in India is to the tune of USD 5.5 billion, up from USD 4.6 billion in the 2010 financial year.

Asked about total expected funding in the 2011 financial year, Hochberg said it is difficult to guess.

However, he said it is likely to go up given the robust economic growth witnessed by India.

The bank will provide a USD 16 million long-term loan to support the exports of First Solar Inc to Azure Power, he said.

Besides, the other solar power producers cleared to receive loans from the financial institution are Dalmia Solar Project, Punj Lloyd Solar Project and ACME Solar Technology.

"India has set ambitious goals to increase solar energy production and is creating incentives to encourage solar companies to develop this market. We are working with US exporters to make sure that they have the competitive financing they need to participate in these important initiatives," he said.