One of India's largest integrated energy companies, Tata Power, has partnered with digital trade finance network Contour to implement an end-to-end digital letter of credit (L/C) settlement process.

Tata says it is partnering with Singapore-based Contour to make its financial management process more robust, transparent and efficient. 

Digital benefits

Contour's network uses decentralised technology (blockchain) to bring together companies, banks and ecosystem partners, onto a trusted network, to help create a streamlined digital trade finance workflow. The integration enables trusted data flow across the world's trade routes and current fragmented ecosystems.

By joining Contour's network and implementing its end-to-end digital L/C settlement process, Tata will benefit by being able to present documents in less than 24 hours, as opposed to the usual 5-10 days of a traditional process. 

The partnership is also in line with the Indian government's vision of transforming the country's financial ecosystem into a digital one.

Broadening offering

Contour has been broadening and deepening its offering over recent months. Last May, it said it would combine its digital L/C solution and extensive trade finance network with Tradelens, which has direct access to major ocean carriers and offerings such as electronic bills of lading (DC World News, 23 May 2022).

In the following September, Contour announced it was acquiring the rulebook and other associated legal documents from the failed digital trade venture developed by the we.trade Innovation DAC joint-venture company, which marketed a bank payment undertaking product as an L/C alternative (DC World News, 14 September 2022).

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.