Owned Subsidiaries for part financing for acquisitionof assets, working capital, equity investments,brands/patents/IPRsd) Guarantee to Joint Ventures and Wholly OwnedSubsidiaries for raising working capital term loans6.3.Finance for Financial IntermediariesThis includes refinance to commercial banks, and export billsrediscounting for commercial banks.6.4.MSMEsEXIM Bank extends multiple services to support micro, small andmedium enterprises.SME ADB LineEXIM Bank has arranged for a credit line from Asian DevelopmentBank for facilitating term loans in foreign currency to MSMEborrowers in certain states of India (Uttar Pradesh, Orissa,Rajasthan, Madhya Pradesh, etc.). These loans can be utilised forcapital expenditure of the MSMEs in INR as well. This assistancewill aid in increasing the welfare of MSMEs and help in integrationof these economically backward states in the mainstream Indianeconomy.9
Alongside facilities to MSME EOUs, the bank provides financial aidto SPVs for a cluster of MSMEs for following activities:a)Development of new integrated clusters or industrial parks –creation and maintenance of infrastructure facilitiesb) Development of industrial estates by Government bodiesand othersc)Upgradation of existing estatesd)Development and upgradation of specific infrastructure liketreatment plants, power plants, hazardous waste disposale)Development of facilities like cold storage centres, testingcentres for a cluster(s) or for industries with commonoperations and interests.TIEID – Technology and Innovation Enhancement andInfrastructure Development FundA fund of USD 500 million has been exclusively setup for MSMEsby EXIM Bank to enable credit flow, to strengthen their exportcapabilities and globalisation efforts, in collaboration with banksand foreign institutions. TIEID aims at meeting long-term foreigncurrency loan demands of MSME EOUs through refinancing ofBanks and FIs.Lending for Creative IndustriesThe Creative Industry includes those that have individual creativityand a potential for job creation and wealth creation, e.g.,Architecture, Advertising, Designing, Film and Video, Arts andEntertainment, Software and Computer Services, amongst others.In order to provide a strategic focus to this sector, EXIM hasdevised a programme specifically for this industry segment.6.5.Finance for Grassroot Level EnterprisesThrough its GRID programme, the bank aims to support theglobalisation of companies in rural areas. The goal of this10
programme is to help small enterprises realise remunerativereturn on their products by exporting them. This includesaccepting credit proposals from such enterprises and offercustomized products for their needs. The group has a holistic androbust approach at every stage of the business development cycle.6.6.Lines of CreditA safe financing mechanism (non-recourse financing option toexporters without payment risk from overseas importers) wherebyEXIM Bank extends aid for export of projects, equipment andgoods and services. These are extended by EXIM on its own andon behalf of GOI to – foreign governments and nominatedagencies, national and regional development banks, overseas
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