Exim Bank- Credit use condition relaxed

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    Exim-Bank-India1KATHMANDU: India has agreed to relax the condition on use of credit extended to Nepal through Export Import (EXIM) Bank of India, which will pave the way for the country to use more domestic goods while implementing projects supported by the southern neighbour. Currently, the EXIM Bank of India has extended a line of credit of $250 million to Nepal for building and maintenance of 11 roads, construction of Koshi and Solu corridor transmission lines, and implementation of the 32MW Rahughat Hydroelectric Project. But as per the condition laid while extending the line of credit, Nepal had to use 75 per cent of Indian goods while building these projects. “It was not feasible to meet this condition, as many domestic products are used during the construction of infrastructure projects. We had, thus, asked the Indian government to relax the provision, to which India has agreed,” said Madhu Kumar Marasini, joint secretary at the International Economic Cooperation Coordination Division of the Ministry of Finance. As per the new condition, only 50 per cent of Indian products could be used while implementing projects financed by the EXIM Bank of India.

    Source : The Himalayan Times