Export-Import Bank of India (Exim Bank) is aiming at Rs 275-crore disbursements in Andhra Pradesh during the current financial year. It will meet fund-based long-term working capital requirements, equipment finance and re-finance needs etc. During the last fiscal, the bank’s total disbursements in the state were at Rs 210 crore.
Exim Bank sees a great demand in agri-business exports from the state comprising grapes, mangoes, aromatic and medicinal plants. “Andhra Pradesh has a huge export potential with its inherent strengths in sectors like construction, pharma, textiles and agriculture etc. Exim Bank's main exposure has been in these sectors. This fiscal we are anticipating a growth rate of morethan 20 per cent,” J Samuel Joseph, the regional head of Exim Bank, told Business Standard.
According to him, the construction activity is very active in the state when compared with the neighbouring states. AP-based construction companies are upbeat over the Golden Quadrangle project, which provides immense opportunities to the local companies. Overseas contracts of above Rs 50 crore require Exim Bank's approval as per the RBI norms.
“Most of the contracting companies involved in execution of mega projects under Golden Quadrangle are being funded by Asia Development Bank and World Bank. The projects being funded by international agencies are considered as deemed exports, that require mobilisation guarantee and performance guarantee from Exim Bank. Also, the construction companies from the state are executing projects, each not less than worth Rs 200 crore, in countries like Afghanistan and other Gulf countries. Pharma companies are also expanding their presense in the international market. “We are supporting them through various schemes,” Joseph said.
“In order to enhance the export competitiveness of AP-based companies, we offer loans to export-oriented units (EoUs), conduct special schemes for technology upgradation, research and development, export marketing, and overseas investment finance etc,” he said.
Once the Special Economic Zone (SEZ) is fully operational, the export activity would further intensify in AP, he observed. With various measures being taken up by the state government like setting up a number of apparel and textiles parks, and with a major thrust on agri-exports, the exports would grow manifold, he anticipated.
Exim Bank has nine domestic offices in the country and five overseas offices. Set up in October, 2001, the AP office of Exim Bank covers Andhra Pradesh and Orissa states. So far, it financed 37 companies in the state with major exposure in pharma and construction sectors.
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