Export-Import Bank of India- Agri Business Group The EXIM bank of India was established by Govt of India for

providing financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the countrys international trade. It is further classified into Operating Groups namely: Corporate Banking Group, which handles a variety of financing programmes for Export Oriented Units (EOUs), Importers, and overseas investment by Indian companies. Project Finance / Trade Finance Group handles the entire range of export credit services such as supplier's credit, pre-shipment credit, buyer's credit, finance for export of projects & consultancy services, guarantees, forfeiting etc. Lines of Credit Group Lines of Credit (LOC) is a financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters, especially to SMEs, and serves as an effective market entry tool. Agri Business Group, to spearhead the initiative to promote and support Agriexports. The Group handles projects and export transactions in the agricultural sector for financing. Small and Medium Enterprises Group to the specific financing requirements of export oriented SMEs. The group handles credit proposals from SMEs under various lending programmes of the Bank. Export Services Group offers variety of advisory and value-added information services aimed at investment promotion Fee based Export Marketing Services Bank offers assistance to Indian companies, to enable them establish their products in overseas markets. Support Services groups, which include: Research & Planning, Corporate Finance, Loan Recovery, Internal Audit, Management Information Services, Information Technology, Legal, Human Resources Management and Corporate Affairs. Some of the Agri Business related Schemes run by EXIM Bank: The Indian agri sector can avail of a comprehensive range of products and services that Exim Bank offers. Broadly, these can be classified into three categories: 1. Export Credit Exim Bank provides pre shipment and post shipment credit in Indian rupees and foreign currency. Finance is extended for short term i.e. upto 6 months as also

for medium/long term i.e. beyond 6 months for eligible products and projects. Medium/long term export credit is extended by way of supplier's credits i.e. through the Indian exporter with recourse to the exporter or buyer's credits i.e. directly to the overseas buyer with no recourse to the Indian exporter. Certain RBI guidelines apply for such medium/long term export credit.

Exim Bank has been recently permitted by RBI to cover inter alia agricultural commodities and processed foods under the Lines of Credit. Export contracts under Lines of Credits are financed without recourse to the exporter i.e. off balance sheet finance whilst the importer gets credit. Exim Bank extends loans for executing deemed export contracts. Exim Bank also issues guarantees overseas on behalf of Indian exporters. 2. Finance for Export Oriented Companies Exim Bank also offers loans for financing Export Oriented Companies which may be categorized as under: i. Project Finance Finance for new projects, expansion, and modernization projects. Finance for purchase of equipment both imported as well as indigenous. Working Capital both short term as well as medium term. ii. Overseas Investment Finance Overseas investment by Indian companies may be in the form of Joint Ventures (JVs) or Wholly Owned Subsidiaries (WOS). Exim Bank extends term loans against equity contribution/loan extended by Indian companies to their JVs/WOS. Term finance is provided directly to the JVs/WOS with corporate guarantee of the Indian promoter companies. Exim Bank can also participate in the equity of the overseas JV/WOS of the Indian company selectively subject to certain conditions. iii. Special Programmes

Export Marketing Finance (Finance for developing strategic forward linkages): Term loans are extended to important strategic marketing plan covering inter alia, overseas market research, participating in international trade fairs, promotion of product, brand positioning, international quality certification, mirror product adaptation, preoperative expenses for overseas offices, prospective buyers visits to India, etc. Export Product Development: Term Loan for product adaptation, pilot plants, product/process development, etc. Backward Linkage/ Vendor Development Programme:

The Export Vendor Development Programme aims to support development of backward linkages by exporters. Rupee term finance is available on competitive terms to exporters for implementing strategic vendor development plans i.e. backward linkage for production of goods for exports in order to increase exports. Export/Trading Houses or manufacturer-exporters with satisfactory track record and strategic plan for development of backward linkages for exports are eligible to seek finance under this programme. Exim Bank may provide farm finance to exporters entering into backward linkages through contract farming with farmers on partnership basis for exports. o Finance for Research & Development: Exim Bank also provides lending for Research & Development activities for facilitating exports. 3. Advisory Services Exim Bank offers advisory services to Indian exporters for facilitating forward linkage for agri exports. Exim Bank's international network comprising overseas office, co-operation partners, correspondent banks and financial institutions is leveraged to provide export information on: o o o o Overseas markets/market segments. Direct marketing of product. Overseas business opportunities. Information on export/import regulations, finance, etc

Agro Division at Exim Bank can be contacted at Agri Business Group, Maker Chamber IV, Floor 8, 222, Nariman Point, Mumbai- 400 021 India. Tel. No. 91-22-2285 4784 Extn: 113 Fax 91-22- 2285 5584 E-mail : agrigroup@eximbankindia.com Url: www.eximbankagro.com