AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 22 October 2009, the Japan Bank for International Cooperation (JBIC) signed a USD 90 million overseas investment loan agreement with Toshiba JSW Turbine and Generator Private Limited. The company is a joint venture between the two Indian companies JSW Energy Limited and JSW Steel Limited and Japanese Toshiba Corporation.
The loan will finance the joint venture company's manufacturing of steam turbines and power generators. Toshiba Corporation will additionally be involved in this business project by providing pressure technology used to increase the efficiency in power generation. The proceeds from this loan will primarily be used for constructing a steam turbine and power generator manufacturing facility.
In this context the Bank stated: 'JBIC has provided a broad range of support for Japanese trade and investment activities in India, including a direct loan to this joint venture business project between a Japanese firm and an Indian partner.'
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment loans.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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