The Governments of the United States and India are actively engaged in concrete activities to support private sector initiatives that strengthen trade, create employment, and foster economic growth in each of our countries. The Export-Import Bank of the United States (EX-IM) provides financing, which enables procurement of U.S. goods and services in cases where private financing is unavailable. EX-IM’s overall commitment to India has totaled over $12 billion since 2002, supporting energy and infrastructure projects as well as the purchase of aircraft and other goods and services. The United States Overseas Private Investment Corporation (OPIC) has invested $2.6 billion in 140 projects in India since 1974, focused primarily in three critical areas: clean technology and renewable resources; microfinance and access to capital for small and medium-sized enterprises; and infrastructure development. The U.S. Trade and Development Agency (USTDA) provides support for infrastructure feasibility studies, reverse trade missions, and other technical assistance in the Indian market, that has translated into over $1.3 billion in U.S. exports through its project commitments since 1992.
EX-IM Support for India’s Transportation Sector
EX-IM has provided $6.4 billion since 2006 to Air India and Jet Airways to rejuvenate their respective aircraft fleets and to expand their domestic and international route networks using the latest state of the art aircraft technology. This includes Boeing 787 Dreamliners that Air India has introduced into its fleet since September 2012.
EX-IM Support for Petro-Chemicals & Energy
EX-IM has approved $2.1 billion in direct loans and loan guarantees for Reliance Industries’ new Jamnagar petro-chemical plant. In addition, EX-IM has provided an aggregate value of over $353 million in export financing, supporting 289 MW of generation since January 2011. These are just a few examples of the work that our countries have done together which support both important projects and U.S. jobs.
OPIC Support for Renewable Energy
OPIC has committed over $500 million, and mobilized more than $450 million in additional private sector capital, in India’s clean energy sector. In 2012, OPIC committed $250 million in financing to help Infrastructure Development Finance Company (IDFC), India’s premier infrastructure lender, expand its lending to renewable energy and infrastructure projects, providing much needed long-term capital in a dynamic sector. To date, IDFC has been deploying the funds largely to support power generation activities, however, we expect that some of the funds will be deployed to support energy efficiency programs. OPIC anticipates that it will support additional projects in 2013.
USTDA Support for Clean Energy and Energy Security
In 2013, USTDA supported India’s deployment of modern smart grids by financing innovative demand side management feasibility studies and pilot projects and was able to sign the Smart Grid Test Bed project with the Central Power Research Institute in Bangalore during the Strategic Dialogue. Over the past two years, USTDA has also helped foster smart grid feasibility projects with Kolkata, North Delhi, and Bangalore, as well as solar power and micro-grid development projects in three Indian states.
USTDA also provided financing in 2013 for new initiatives to chart India’s development of shale gas and oil resources with leading private sector energy companies and was able to sign a grant during the Dialogue that will support Deep Industries Limited in its search for commercial shale deposits in its conventional oil and gas concession areas.
USTDA Support for Aviation Sector Growth
Under the public-private U.S. - India Aviation Cooperation Program (ACP), USTDA is sponsoring the fourth U.S. - India Aviation Summit in 2013. Past summits have facilitated purchases of aircraft, engineering services, and airport expansion equipment for India’s infrastructure development. This year, USTDA has also financed three new initiatives with U.S. ACP member companies and India’s civil aviation agencies that focused on modernization of air navigation, airspace capacity, and regulatory upgrades and was able to announce a Procedure Based Navigation Design Feasibility study with the Airports Authority of India during the Strategic Dialogue.