News Article
$1.4 Billion in transactions in India supports 10,000 American jobs
Export-Import Bank in Washington is providing a $16 million, 16.5-year loan to Azure Power Rajasthan Pvt to purchase thin-film solar cadmium telluride based First Solar modules for the construction of a 5 MW solar PV plant in Rajasthan.
Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank), is leading a business-development mission this week in India.
He announced $25 million in Ex-Im Bank loans for two new solar-energy projects and is promoting the Bank's financing products to support the purchase of U.S. goods and services by Indian buyers.
Hochberg is in New Delhi today for the U.S. - India Strategic Dialogue headed by Secretary of State Hillary Rodham Clinton.
"India is a key country for U.S. exports and an increasingly important market for Ex-Im Bank. In the first nine months of fiscal year 2011, the Bank has approved $1.4 billion in transactions on behalf of American exporters and their Indian buyers. This financing has increased our overall exposure in India to $5.5 billion and supported over 10,000 American jobs," said Chairman Hochberg. "With this kind of growth in demand, we anticipate that next year India may very well become Ex-Im Bank's biggest single market."
Hochberg added, "As the world's two largest democracies, the United States and India have a solid and unique partnership. There are tremendous opportunities for investments in projects that create jobs and help address India's growing energy and infrastructure needs."
Renewable-energy projects are a top priority for Ex-Im Bank. In FY2011 until June 30, the bank has approved $75 million in solar transactions in India, which will produce approximately 35 MW of solar power. The Bank also has approximately $500 million in upcoming Indian solar transactions, which will generate 315 MW of solar power.
In New Delhi, Hochberg announced authorisations totalling more than $25 million for two separate solar transactions. Ex-Im Bank is providing a $16 million, 16.5-year loan to Azure Power Rajasthan Pvt to purchase thin-film solar modules from First Solar based in Tempe, Arizona, for the construction of a five-MW solar photovoltaic plant in the state of Rajasthan.
Additionally, Ex-Im Bank authorised a $9.2 million, 18-year loan for thin-film solar modules from Abound Solar in Loveland, Colorado, to Punj Lloyd Solar Power for the construction of a 5 MW photovoltaic solar power plant in Rajasthan.
Later in the week, Hochberg will travel to Mumbai to meet with Anil Ambani, chairman of Reliance Power. As part of President Obama's trip to India last November, Ex-Im signed a $5 billion Memorandum of Understanding (MOU) with Reliance for the purchase of U.S.-manufactured equipment for a power project that will produce 8,000 MW. The MOU also covers the purchase of renewable-energy (solar and wind) equipment from U.S. manufacturers and service providers for projects that will produce 900 MW of clean energy.
In New Delhi, Hochberg met with officials from the General Electric Co. to discuss rail and energy projects. And in Mumbai, Hochberg will meet with officials from the Infrastructure Development Finance Corporation (IDFC) to discuss collaborative efforts on a number of infrastructure projects throughout India. This relationship dates back to IDFC's selection by Ex-Im Bank as one of nine Indian financial institutions to participate in its $2.45 billion India Infrastructure Facility.
Hochberg will also meet with officials in Mumbai from the Indian Merchant Chamber, the State Bank of India, Tata Capital, CitiBank India and ICICI Bank to discuss Ex-Im's role in financing renewable energy and infrastructure projects.
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
In the first nine months of FY 2011 through June, Ex-Im Bank authorized over $215 million to finance U.S. environmentally beneficial exports, including approximately $100 million for renewable-energy products and services.
Through June 30, 2011, Ex-Im Bank has approved 173 India related transactions totalling $1.4 billion and supporting over 10,000 U.S. jobs,
Overall, in FY 2011 through June, Ex-Im Bank has approved nearly $22 billion in total authorisations – a historic year-to-date record – to support $28.1 billion in U.S. export sales. These sales will support approximately 189,700 American jobs in communities across the country.
