IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 25 Jan 2014 | Removal date: open ended
Still in force

Trade finance

The buyer’s credit loan agreement between JBIC and NTPC Limited has a total maximum value of JPY 4.8 billion (USD 47 million). Additionally, the loan is co-financed by a private financial institution amounting to JPY 8 billion (USD 78 million). The governmental agency Nippon Export and Investment Insurance will provide a Buyer's Credit Insurance and Overseas Untied Loan Insurance for the co-financed portion.

The loan finances the purchase of gas turbines and control systems produced by Japanese Mitsubishi Heavy Industries Ltd. and export by the Japanese company the Marubeni Corporation.

In this context, JBIC stated: "This loan aims to contribute to maintaining and improving the international competitiveness of Japanese industries through export to India by Japanese companies. It is also expected that various cooperation between NTPC and Japanese companies in the area of power infrastructure will be further deepened by strengthening the relationship between JBIC and NTPC through this loan."

Buyer's credit agreements
JBIC provides direct loans named buyer’s credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank stated that these loans are intended to “positively contribute to Japanese companies”. Further information can be found on the Bank’s website under export 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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

431 Engines & turbines & parts
8411 Turbojets, turbopropellers and other gas turbines.
841182 Of a power exceeding 5,000 kW
462 Electricity distribution & control apparatus; parts
8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and nu
853710 For a voltage not exceeding 1,000 V
853720 For a voltage exceeding 1,000 V

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