| Date: |
13-08-2002
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| Notification No: |
RBI A P D (Series)Circular No 9/2002
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
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| Subject: |
Assured Spare Parts Supply Agreements – Opening of Stand-by Letters of Credit by Independent Power Producers
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Assured Spare Parts Supply Agreements � Opening of Stand-by Letters of
Credit by Independent Power Producers
A.P.
(DIR Series) Circular No. 9 dated 13th August 2002
Authorised
Dealers are aware that as per extent guidelines, opening of stand-by Letters of
Credit is permitted only in exceptional cases, such as for import of crude oil
and petroleum products, subject to certain conditions.
2.
We have been receiving enquiries from authorised dealers whether they can
open stand-by Letters of Credit on behalf of their clients who are Independent
Power Producers, in favour of overseas suppliers, under arrangements involving
assured supply of spare parts.
3.
It has been decided that authorised dealers may open stand-by Letters of
Credit on behalf of their constituents who are Independent Power Producers, in
cases involving assured supply of spare parts.
4.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
5.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999).
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