New Delhi, Jan 28: In what could brighten India's prospects in the export of equipment and technology in power, railways, automobiles, cement and pharmaceuticals, Exim Bank has extended the largest ever line of credit to Iran of $200 million for financing exports to that country. The facility, which could be availed by any of the seven Iranian banks -- Bank Mellat, Bank Melli Iran, Bank Sepah, Bank Sedarat Iran, Bank Tejarat, Bank of Industry and Mine and Export Development Bank -- has a credit period of upto eight years, a bank release said on Tuesday.
This comes at a time when India is hard-pressed to attain one per cent share in world trade.
"India's exports to Iran are expected to receive a quantum jump with the establishment of this $200 million medium term L-o-C to Iran," Exim Bank said in the release.
India's exports to Iran rose by 13.5 per cent to $252 million in 2001-02 from $222 million in the previous financial year.
Major export items included drugs and pharmaceuticals, organic and inorganic and agro chemicals, iron ore and primary and semi-finished iron and steel, meat and preparations, paints and enamels, man-made yarn and fabrics, rice, processed minerals, tea and auto and bicycle parts.
It said a number of Indian companies were engaged in negotiations with their Iranian counterparts for export of equipment and technology to Iran in the sectors like power, railways, port, hydrocarbons, automobiles, cement and pharma. Bureau Report