Mumbai, October 10, 2019– Export-Import Bank of India [Exim Bank] has, on behalf of the Government of India, extended an additional Line of Credit [LOC] of USD 236 million, for the ‘Petrochemical Refinery’ Project, to the Government of Mongolia. The LOC Agreement to this effect was signed and exchanged between Shri Saroj Khuntia, General Manager, Exim Bank and H.E. Mr. Chimed Khurelbaatar, Hon’ble Minister of Finance, Government of Mongolia, in presence of Shri Dharmendra Pradhan, Hon’ble Minister of Petroleum and Natural Gas, Government of India, Shri Mohinder Pratap Singh, Indian Ambassador to Mongolia, H.E. Mr. Ganbold Gonchig, Ambassador Extraordinary and Plenipotentiary of Mongolia to India, in Ulaanbaatar on Wednesday, October 09, 2019.
As the first crude oil refinery, the project is expected to lay the foundation of the Petrochemical Industry in Mongolia. The refinery, being established in the southern Dornogovi province of Mongolia, will be capable of processing 1.5 MMTPA of domestic crude oil per year, and is expected to contribute significantly in reduction of petroleum import bills of the country, which currently constitutes 25-30 percent of its total imports. The spin-off benefits of this critical project is expected to usher an era of energy independence in Mongolia and shall also generate new economic opportunities, create employment and enrich the socio-economic fabric. The project will also showcase India’s technological prowess.
With the signing of this LOC Agreement for USD 236 million, Exim Bank, till date, has extended 3 (Three) Lines of Credit to the Government of Mongolia, on behalf of the Government of India, taking the total value of LOCs to USD 1.256 billion. Projects covered under the LOCs extended to the Government of Mongolia include Information Technology, and Petrochemical Refinery.
Exim Bank has in place 256 Lines of Credit, covering 63 countries, in Africa, Asia, Latin America and the CIS, with credit commitments of around USD 25.20 billion, available for financing exports from India. Besides promoting India’s exports, Exim Bank’s LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.