IND. EX. DEV. FIN I

closed

The Industrial Export (Engineering Products) Project will consist of two loans as follows: a US$90 million IBRD loan to the Government of India (GOI) for financing (i) the foreign exchange costs of credits made to engineering ancillary firms by selected commercial banks for expansion and upgrading (US$70 million); (ii) a Productivity Fund, in the amount of $10 million, to finance up to 50 of the cost of activities aimed at improving quality and plant productivity; and (iii) an Export Marketing Fund, in the amount of US$10 million, to finance up to 50 of the costs of eligible development activities of firms engaged in exporting products identified for "export" thrust; and a US$160 million IBRD Loan to the Industrial Credit and Investment Corporation of India (ICICI), with Government guarantee, to finance the foreign exchange portion of subloans, for export-oriented subprojects, with US$100 million earmarked specifically for engineering subprojects.