Govt extends scheme to support cos bidding

The Government on Wednesday extended the Concessional Financing Scheme (CFS) for five years till 2023 to support Indian entities bidding for strategically important infrastructure projects abroad.

Also, the scheme will now cover all Indian entities, compared to the earlier stipulation of minimum 75 per cent Indian shareholding. The decision was taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, Finance Minister Piyush Goyal said.

Under the scheme, the government provides counter guarantee and interest equalisation of 2 per cent to EXIM Bank to offer finance to any foreign government or foreign government owned/controlled entity if any Indian entity succeeds in getting a contract for the execution of the project.

Under the CFS, the government has been supporting Indian entities bidding for strategically important infrastructure projects abroad since 2015-16.

Since the objectives of the scheme continue to be relevant, it has been for another five years from 2018 to 2023, an official release said.

Earlier, only those companies which had a minimum of 75 per cent shareholding of Indians were eligible to take benefit of the scheme.