If at all the rising oil price has done some good to the world economy it is through booming project exports. For example, Angola, a small African country that depends mainly on oil exports, is earning nearly $45 million per day, thanks to rising oil prices. Similarly, UAE spent nearly $10 billion last year on construction. 
T.C. Venkat Subramanian, Chairman and Managing Director, EXIM Bank of India, says, "The project export business is booming and this is likely to prevail for the next five years at least." According to him, 35 Indian companies are currently doing 140 contracts worth $4 billion in 38 countries. Remember, in the 1970s there were as many as 100 companies involved in project exports, especially to the Middle East. But the Gulf war and Iran-Iraq war forced most of these companies to pull out of the region. 
But things are changing. Today, KEC International Ltd is the world's largest project exporter in power transmission contracts in terms of contracts and execution. The company's order book position is swelling with orders worth Rs 3,000 crore. Nearly 80 per cent of the company's turnover comes from project exports. The success of KEC had a spill over effect on other companies like Jyoti Structures, which has also become a leading exporter of transmission lines. 
Another important aspect in project exports, according to Subramanian, is the entry of new players into the field like IVRCL, Progressive Constructions and Seenaiah & Company. Incidentally, most of the new entrants are from Andhra Pradesh. 
The Indian government is also taking active interest in project exports. Subramanian observes, "Earlier most of the government's aid to foreign nations was in the form of food credit. Now the scenario has changed. Recently, the government sanctioned a credit line of $63 million to Myanmar for building a road and ICT networks. Further, $53 million was given to a build railway network in the country." All these projects will be given to Indian companies as part of the agreement. A similar line of credit was given to Angola and Mozambique for railway network projects. For Guyana $19 million was given for constructing a cricket stadium which will hold the World Cup Cricket 2007. 
Project exports through counter trade are another possibility that is being explored. Subramanian says, "Project exports to countries like Malaysia and Indonesia through counter trade mechanism is possible." The import of palm oil from these countries against project exports is planned. 
EXIM Bank is encouraging Indian exporters to take up projects funded by multilateral agencies like the World Bank and ADB. The track record of Indian companies in this case is not too encouraging. However, Subramanian says, "The success rate of Indian companies bagging such projects is 20-30 per cent which is not a bad ratio. However, we participate only in 10 per cent of the projects funded by such agencies. That is the reason why Indian companies' participation in such projects is poor." The Task Force on Project Exports constituted by the previous NDA government had recommended equity participation of EXIM Bank in multilateral agencies. Accordingly, EXIM Bank gave $10 million credit and $1 million towards equity of the West African Development Bank (WADB). In fact, EXIM Bank is the first non-African and non-European bank to participate in WADB's equity. 
Also, EXIM Bank is encouraging Indian project exporters to take up projects in developed countries like USA, Japan, Korea and Europe. "So far Indian companies have taken up only sub-contracting jobs in these countries. In fact, USA is the biggest market for project exports. But to bag contracts in USA, presence in USA is essential," says Subramanian. However, exports to erstwhile Soviet nations are not encouraging. According to Subramanian, "It is because most of the projects there are funded by EBRD and those contracts go to European companies." 
According Subramanian, operational maintenance consultancy contracts, with a huge potential, is one area which is yet to be tapped by Indian companies. ACC, for example, has been maintaining a cement plant in the Gulf region for the past 25 years. Similarly, BHEL has bagged the maintenance contract of power plant in Saudi Arabia. But such instances are rare.