News: Exim Bank plans model to finance SMEs

(BS 15/08/2006) Kolkata - Export-Import Bank of India (Exim Bank) is working on a special model to finance small and medium enterprises (SME) in the country for tapping the export market in Africa and other continents.

Exim Bank chief manager Joginder Singh said on the sidelines of the seminar on India Africa Project Partnership, that it had joined hands with Geneva-based International Trade Co-operation (ITC) for the model.

"The model is unique in the world because there is some sector specific funds for SMEs. But this is the for the first time there will be a fund for SMEs across the board," he said.

According to Singh, there would be some eligibility criteria for the SME and SSIs. "We are now working on those criteria," he added.

According to Exim Bank chief manager, the bank was planning to create a corpus of Rs 50-60 crore for the fund.

The bank is hoping to start the project from October this year. "We are planning to give a credit of rupees five lakh to rupees one crore. The fund will start operations later this year," he added.

Singh said, Exim Bank had already got 50 applications for the fund. "We have shortlisted 50-60 companies. Later on, we could scan the list further," he added.

Incidentally, representatives from three African countries participated in the seminar. These were Burkina Faso, Ethiopia and Madagascar.

The ambassador of Ethiopia, G Zewide informed that 180 Indian companies had so far invested around $ 380 mn in that country.

"Gail has shown interest to acquire gas blocks in Ethiopia. Kirloskar is also interested in the field of engineering," she said.

"There is huge opportunity in textile, energy, infrastructure and agro products in our country," she added.