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Export-Import Bank of India has extended a line of credit of US$50mn to the government of Chad. Out of this, US$24.5mn have been earmarked for setting up a cotton yarn plant, US$11.5mn for a steel billet plant and rolling plant mill, US$10mn for an agricultural assembly equipment plant and US$4mn for a bicycle plant.
Under the Team-9 initiative, India provides credit lines through India Exim Bank to Team-9 countries to finance setting up of various projects by Indian companies in those countries. Under the credit to Chad, India Exim will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of goods.
Chad, located in Central Africa, had the world’s highest GDP growth rate of 31% in 2004, which was mainly due to the first year of full oil production and construction activities related to the oil project. Exploitation of the Doba oilfields has contributed to the economic development of the country. The oil revenue is being channeled into various development projects. Cotton is the mainstay of Chad’s rural economy, accounting for 35-50% of the country’s total foreign exchange earnings. India’s exports to Chad rose to US$3.63mn in 2004-05 from US$2.64mn in 2003-04.
The exports mainly constituted drugs, pharmaceuticals and fine chemicals, gems and jewellery, cosmetics and toiletries and transport equipment.