To take your ideas to Policymakers, Join the Campaign of #PolicyPulse Write to feedback@policypulse.com

PSBs to offer cheap loans to firms bidding for projects overseas

Firms looking for concessional finance also need to have a clean track record with no bad loans, says a report

Policy Pulse
Publish Date: Aug 16 2016 10:12AM | Updated Date: Aug 16 2016 3:06PM

PSBs to offer cheap loans to firms bidding for projects overseas

 PSB lenders may offer cheaper loans to private companies bidding for key projects abroad.

 
As per ‘The Economic Times’ report, this is likely to be done as part of a strategy to increase strategic investment overseas. 
 
The Centre is considering a apparatus to ensure the viability of such lending, officials aware of the matter, told the national daily. 
 
"A committee will be formed with the finance ministry which will look into the issue," it quoted one of them as saying. 
 
Panel members will include the deputy national security adviser and officials from other ministries including external affairs and commerce, it added. 
 
Funding will be less than market rates but accompanied by conditions.
 
The report further quoted the official as saying that firms looking for concessional finance also need to have a clean track record with no bad loans.
 
Government already offers concessional finance to private firms through the Export Import Bank of India (Exim Bank).