On the 30th of January, Tata Power, an Indian power production firm, said that it has collaborated with Contour, a leading digital trade finance network headquartered out of Singapore, in order to make its financial management process more resilient, transparent, and efficient.
According to a statement, Contour’s network makes use of decentralized technology to bring together corporations, banks, and ecosystem partners on a trusted network to assist in the creation of a more efficient digital trade finance process.
As stated in the statement, the integration will make it possible for verified data to move across the commerce routes of the globe and the currently fragmented ecosystems.
Sanjeev Churiwala, Chief Finance Officer of Tata Power, said:
“Tata Power’s collaboration with Contour will pave the way for a seamless trade finance process – one that can be made significantly efficient with the robust blockchain-based solution.”
Churiwala claims that by joining Contour’s network, Tata Power is establishing an end-to-end digital Letter of Credit (LC) settlement procedure. He explains that manual and paper-based processes in finance limit trade development by introducing extra complexity and expenses.
The use of a digital LC will be beneficial to the business since it will allow the corporation to provide papers in less than 24 hours, which is much faster than the old approach, which may take anywhere from five to ten days.
Tata Power would be able to unlock more value and create better efficiency in trade thanks to our digital solution, according to Contour, which said that Tata Power would be able to do so after joining their network of more than 130 corporates.