(News Today, Chennai, 4 January 2019) The Indian government has to provide three per cent [export credit] interest subsidy to merchant exporters, entailing an expenditure of Rs600 crore (US$84 million), to enhance liquidity with a view to boosting outbound shipments. Sectors that will be benefited from the decision include agriculture, textiles, leather, handicraft and machinery. The interest equalisation or subsidy scheme for pre- and post-shipment rupee export credit started on 1 April, 2015 and will end in March 2020. Other news sources indicated that interest subsidies had dropped from Rs434 crore in 2017 to Rs197 crore in 2018 (US$60m to US$28M). The Union Cabinet in mid-Janurary committed to infusing US$840 million into the Exim Bank over 2 years and doubling its authorized capital from US$1.4 billion to US$2.8 billion (Rs10,000 crore to Rs20,000 crore)
India
Africa-India trade to double by 2021 with ECA help
(Southern Times, Windhoek, 29 October 2018) Trade between Africa and India has risen over the past 10 years and is highly likely to double its total of US$60 billion in 2017 to US$120 billion in 2021, according to a report released by the African Export-Import Bank (Afreximbank) and the Export-Import Bank of India (Exim India). The impressive growth in trade between Africa and India stems from a mix of factors… Against the backdrop of increasing uncertainty in the global economy, reliance on innovative and non-traditional financing solutions developed by export credit agencies, including the Export-Import Bank of India (Exim India) and the African Export-Import Bank (Afreximbank), not only helps in mitigating risks in international trade but also contributes to promoting regional trade and investment.
Adani’s coal mining project in Australia may hinge on court
(Business Standard, New Delhi, 9 August 2018) For the Ahmedabad-headquartered Adani group, the fate of its ambitious coal mine-to-rail project in Australia could hinge on a court case filed by native owners of the land in question, near the Carmichael mine in the province of Queensland. Environment groups and others in opposition have alleged the current ruling party in Australia has helped Adani in getting regulations and clearances for the project, including possible EFIC support. Adani had signed a land agreement with the local authorities now being contested in court by native Wangan and Jagalingou land claimants. Wangan and Jagalingou (W&J) Traditional Owners in the area did not consent to the Carmichael mine. Since 2012, their claim is that group meetings rejected a Land Use Agreement with Adani four times, the latest in December 2017. Five members of the W&J Native Title filed case in the high court on behalf of the claim group in August 2017. Sources said Adani had not been able to tie up any financing for the coal project. Jeyakumar Janakraj, chief executive and country head, Adani Group Australia, told this publication last year that the company was in talks with leading global financers and export credit funds from China and Korea in this regard.
Indian Export Opportunities from US-China Trade Differences Need Export Credit Support
(Business Standard, New Delhi, 7 August 2018) India can focus on numerous goods for expanding its exports to the US and China markets following the hike in duties by both countries on imports from each other, said the Confederation of Indian Industry (CII). With the US imposing additional duty of 25% on imports worth $34 billion from China, certain Indian products may become more competitive, according to CII. It was noted that Indian companies require better access to export credit to intensify the export effort.
Anti-Adani NSW protest outside EFIC office
(The Australian, Sydney, 29 June 2018) Protesters worried about potential taxpayer funding of Adani’s mega-mine in central Queensland have picketed the Sydney offices of Australia’s export credit agency. About 40 Frontline Action on Coal activists on Friday demanded to meet with the boss of the Export Finance and Investment Corporation. The group claim federal Trade Minister Steven Ciobo has directed EFIC to assess “putting public money” behind the Indian mining giant’s proposed thermal coalmine. They say the Adani coalmine would fail EFIC’s three investment rules requiring projects to be commercially viable, in the national interest and in the public interest. There were more than 20 similar protests held across Australia on Friday and Saturday.
Anti-Adani NSW protest outside Australian ECA office
(The Australian, Sydney, 29 June 2018) Protesters worried about potential taxpayer funding of Adani’s mega-mine in central Queensland have picketed the Sydney offices of Australia’s export credit agency. About 40 Frontline Action on Coal activists on Friday demanded to meet with the boss of the Export Finance and Investment Corporation. They chanted “money for health and education, not for mining corporations” and unfurled a large banner reading “No Future In Coal #NoNewCoal” before being moved on by NSW Police after an hour. The group claim federal Trade Minister Steven Ciobo has directed EFIC to assess “putting public money” behind the Indian mining giant’s proposed thermal coalmine.
Indian company defrauds banks despite Indian ECA caution list
(Financial Express, New Delhi, 5 April 2018) The CBI today said it had registered a criminal case against a Vadodara-based company dealing in electric cable and equipment and its directors for allegedly cheating various banks to the tune of Rs 2,654 crore (US$400 million). The company and its directors managed to get the term loans and credit facilities in spite of the fact that they were named in the Reserve Bank of India’s defaulters list and ECGC (Export Credit Guarantee Corporation) caution list at the time of the initial sanction of credit limits by the consortium, the agency alleged.
Britain doubles ECA backing for India
(India Times, New Delhi, 11 January 2018) The UK government today announced the doubling of its national credit support for UK businesses exporting to India, during the visit of Commerce and Industry Minister Suresh Prabhu. As part of the deliberations, UK trade minister Liam Fox announced that the UK’s national export credit agency, UK Export Finance (UKEF), has more than doubled its financial support to enable UK businesses to trade with India. This means 4.5 billion pounds will now be available for UK companies exporting to India as well as Indian buyers of UK goods and services.
Great Barrier Reef Pitted Against Coal Jobs in Australia Vote
(ABC, Sydney, 22 November 2017) As the world grapples with the fossil fuel’s role in the future energy mix, Indian bilionaire Guatam Adani’s proposed Carmichael coal mine became a defining issue in Australia’s Queensland election. An unnamed Adani Mining director was quoted as saying the company is close to securing a deal with Chinese enterprises and export credit agencies to fund both the mine and the rail link, and that Adani wouldn’t need a loan of up to $1 billion from the federal Northern Australian Infrastructure Facility (NAIF) for the rail line. A formal announcement about the financing deal is said to be imminent, but the ABC reports that reliance on funds from Chinese enterprises and export credit agencies could cost Australia jobs associated with the project. Such Chinese interests invariably require that materials for key infrastructure are sourced from China and that effective shifts work out of Australia. Coal and the impact of climate change on Australia’s Great Barrier Reef were an issue in the election.
EXIM Banks of India and Korea sign MOU for export credit of USD 9 billion
(OpenGovAsia, Singapore, 16 June 2017) The Export-Import Bank of India (EXIM Bank) and the Export-Import Bank of Korea (KEXIM) have signed a Memorandum of Agreement (MoU) for export credit of USD 9 billion to support infrastructural development in India and for the supply of goods and services as part of projects in third countries.
