By IANS,
Hyderabad : The US Export-Import Bank is looking to diversify its India portfolio, financing projects in education, healthcare and agriculture, its chairman and president Fed P. Hochberg said here Friday.
With a $7 billion commitment, India is currently the second biggest investment destination for the bank after Mexico.
“In India, our commitments are $7 billion and at the rate India is growing this will be the single largest market in 12 to 18 months,” said Hochberg.
Exim Bank focuses its efforts on nine countries that are building infrastructure and growing rapidly. It has already disbursed most of the $7 billion funds it committed for various projects in India.
It is considering more projects worth $2 billion.
“We have many projects in the pipeline. Right now $2 billion projects in the full range of projects in the entire countryside from renewable energy to conventional energy to water treatment,” he said.
The projects of $2 billion that the bank is considering do not include its commitment to Air India. He said Exim Bank would continue to support Air India. “Air India has been very good customer. We have supported Air India over many years. They are passing through difficulties.”
“That is the case that we have dealt in the court in the US,” he remarked when asked about the opposition from the US airlines to the commitment to Air India.
He pointed out that Exim Bank had also financed Jet Airways and SpiceJet. The two are among 36 airlines around the world being financed by the bank.
Hochberg said 30 percent of the projects the Exim Bank was financing in India were power projects. Since the US is one of the leaders in renewable power and petrochemicals, it is looking to invest more in these areas.
“We are excited by power sector in India. India’s growth has been extraordinary. It is possible to continue more investment in power,” he added.
Hochberg said solar power would be another key area of interest for Exim Bank as India has set a target of 20,000 MW of solar power by 2020. “We were impressed with the progress made in 2011. With new five-year plan beginning this week, we are seeing more interest.”
He also said that Exim Bank would not fund a project which is detrimental to the environment. “Environmental concerns are of primary interest to us. Environment is part of our mandate. Will not do projects which we believe are environmentally detrimental,” he said when asked about environmental impact of power projects.
On corruption, the Exim Bank chief said that was something the bank was concerned about in every place in the world.
“This is something that we take very seriously in doing our transactions and we do a lot of due diligence.”
Hochberg was talking to reporters in Hyderabad, his third and last stop in his first-ever visit to South India. He met Chief Minister Kiran Kumar Reddy and Industries Minister J. Geeta Reddy and discussed infrastructure projects in the state.