WASHINGTON, April 16 (Reuters) - The U.S. Export-Import Bank has approved a $2.2 billion loan guarantee program to support U.S. exports to help build energy and other infrastructure projects in India, the bank said on Wednesday.

"There is a rising demand for U.S. goods and services in India because of their high quality and competitive prices," Ex-Im Bank President James Lambright said in a statement.

The first transaction under the program is a $29.4 million long-term loan guarantee to support exports of U.S. medical, building and office equipment and services for the construction of Bhopal Medical College in Bhopal, India.

The program will also support U.S. exports for Indian projects in sectors such as power and renewable energy generation, oil and gas development, small aircraft, airport development and health care, the Ex-Im Bank said.

Eight Indian financial institutions will provide guarantees under the program to expedite processing of Ex-Im Bank-backed medium-term and long-term financing for Indian buyers of U.S. exports, the bank said.

Each financial institution has an underlying pre-approved credit line of $50 million to $250 million. One lender, Power Finance Co, has a pre-approved line of $800 million.

Financing provided under the facility is denominated in U.S. dollars, the Ex-Im Bank said.

India's Ministry of Finance has estimated that more than $500 billion will be needed to finance development of India's infrastructure, the Ex-Im Bank said.

The Indian financial institutions participating in the facility are Power Finance Co, Infrastructure Development Finance Corp, Industrial Development Bank of India (IDBI.BO: Quote, Profile, Research), India Infrastructure Finance Co Ltd, State Bank of India (SBI.BO: Quote, Profile, Research), Infrastructure Leasing & Financial Services, India Renewable Energy Development Agency, and Punjab National Bank.

The Washington-based Ex-Im Bank is the official export-credit agency of the United States. It supports U.S. exports, primarily to emerging markets by providing loan guarantees, export credit insurance and direct loans. (Reporting by Doug Palmer; Editing by Jonathan Oatis)