Kathmandu, March 26
The Export Import Bank of India is interested in opening a representative office in Nepal, a country to which the Indian government has committed to provide $1 billion in concessional line of credit through the bank.
In an interview with the Economic Times, Chairman Yaduvendra Mathur said, “The bank is also shortly opening a representative office in Cote d’Ivoire, the headquarters of African Development Bank. As per the business requirements and with the approval of the bank’s board, other representative offices may be considered in countries like Sri Lanka, Nepal and China.”
Export-Import Bank of India extended an LOC of $1 billion to Nepal for financing Hydropower, Irrigation and Infrastructural Development Projects in Nepal during Indian PM Modi’s visit to Nepal in November 2014.
Exim Bank, till date, has extended three Lines of Credit to Nepal. The total value of LOCs extended stands at $ 1.35 billion.
According to the bank, the first LOC of $100 million was extended in September 2007 for financing road, rural electrification, power transmission and hydro power projects in Nepal. The second LOC of $ 250 million was extended in October 2011 for financing infrastructure projects such as highways, airports, bridges, irrigation, roads, railways and hydropower projects in Nepal.
Under the LOC, Exim Bank reimburses 100 per cent of contract value to Indian exporters, upfront upon shipment of goods. The LOC is used for sourcing goods and services from India.