(Business Standard, New Delhi, 23 September 2008) Indian companies will have to stagger their expansions as financial instutions have started tightening lending to cope with the liquidity crunch in the aftermath of the turmoil in financial markets. But what’s interesting is that funds from ECAs are significantly cheaper and are available for a longer tenure (10-13 years, including three years of construction). Typically, imports form 30-40% of project costs (large, industrial project) and corporate groups like JSW are using ECAs to fund the debt component (85%) of project imports.
Date
10 September 2008
