Export-Import Bank of India (Exim Bank India) has extended a line of credit (LOC) of US$72.55 million to exports of eligible goods and services to Laos.

This will make letters of credit (L/Cs) more available to Indian exporters to major power projects in the southeast Asian country.

Power projects

Under the LOC, up to US$34.68 million will be available for exports for the 230 KV double circuit transmission line from Nabon to Thabok and associated substations.

A total of US$37.86 million will be available for the Nam Boun 2 hydropower projects.

L/C deadlines

The LOC was effective from 2 November 2010 and the last date for the opening of L/Cs will be 48 months from the scheduled completion date of contract for exports of goods and 72 months from the execution date of the credit agreement for services.

Exim Bank India signed the agreement for the LOC with the government of Laos on 13 September 2010.

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