On Wednesday, the Union Cabinet headed by the Prime Minister of the country, Narendra Modi came to a conclusion and finally approved the first extension of Concessional Financing Scheme (CFS) to aid the Indian firms that intend to pursue ventures abroad for a duration of five years.  

The cabinet asserted, "Under the CFS, the Government of India 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 is proposed to extend the Scheme for another five years from 2018 to 2023.”

In the duration of 5 years, the execution of the various financial policies regarding the payment of Interest Equalisation Support (IES)  of the current ventures shall reach to a value of about 96 million dollars or Rs 625 crore.

As per the information provided, the policy of the government intends to provide a cross-check method to counter guarantee and interest equalization of about 2 percent to EXIM Bank that would, in turn, provide concessional finance to the foreign government of any country if the Indian firm manages to grab a contract for a venture.

The decision taken by the government is being highly appreciated.

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