Announcement of Six Million Sixty Thousand US Dollars IFC Loan for Indian Firm Escorts to Improve Technology, Expand on October 6, 1976

International Finance Corporation 1818 H Street. NW e - Washington. D.C. 20433. tJ.SA 202-393-6360 IFC Press Release No. Wednesd·ay, October 6, w.._.,,.._,i } 1 ·\ \ Ji I~. . .,/. •;·. ':i\ 1 .(rf $6.6 Million IFC Loan for Indian Firm Escorts to Improve Technology, Expand The International F~Lnance Corporation (IFC), an affiliate of the World Bank, is lending $6.6 million to Escorts, Ltd., of India to help finance the construction of a new plant which will double the Company's capacity to produce engine pistons and pins and upgrade its technology. Total project cost is approximately $19.1 million, of which $17.3 million is for new plant construction. Escorts is a publicly-held, diversified manufacturing and trading company serving the transportation and agricultural sectors. It presently has the capacity to produce annually 1 million units each of engine pistons and pins at its Patiala plant in northern India. • The new plant is to be built near Bangalore in southern India and will also have an annual capacity of 1 million units each of engine pistons and pins. project is introducing new technology to India in that about 45 per cent of the new production will be advanced "ring-carrier'' types and larger, more complex diesel The engine pistons which are not now produced domestically. Five Indian financial institutions are lending approximately $7.4 million for the project. They are Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, Indust 'ial Finance Corporation of India, Life Insurance Corporation of India, and Unit Trust of India. About $5.1 million from internal Company sources completes the financing. The project is expected to benefit the Indian economy by helping to produce more durable and efficient engines; permit production of larger and more complex pistons currently imported and thereby save some $1 million a year in foreign exchange; help meet growing domestic demand for pistons and pins; and provide employment for almost 900 persons. {Any inquires strictly relating to IFC's participation in this project should be • directed to the IFC Bmd aef!~ Hele:1'ion" tm.i'S, 1818 H Street, N. W. , Washington, D. C. 20433, Telephone ( 2 0 2 ) / ) . (;.-::,i(;Jl7 I/ ./ .y. C. ._(_ / r,"'"lt/,.(t.,(<.,~ t £.~~,K)ti •. t CR