The government has decided to infuse Rs 1,500 crore capital into state-owned Export-Import Bank of India (Exim Bank) in the next financial year.
The amount is Rs 200 crore higher than the provision made by the government for the current fiscal. The government has earmarked Rs 1,300 crore capital infusion for the bank.
"The (Rs 1,500 crore) provision is for Exim Bank as equity support/ subscription to increase the paid up capital of the bank to the level of its authorised capital," as per the Budget documents presented in Parliament earlier this month.
The government doubled the authorised capital of the bank from Rs 10,000 crore to Rs 20,000 crore in 2019.
Exim Bank is the principal export credit agency in India and the capital infusion will give an impetus to new initiatives such as supporting Indian textile industry, likely changes in the concessional finance scheme, likelihood of new letters of credit in future in view of the country's active foreign policy and strategic intent.
Established in 1982, the bank primarily lends for exports from India, including supporting overseas buyers and Indian suppliers for export of developmental and infrastructure projects, equipment, goods and services from the country.
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