| Date: |
13-08-2015
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| Notification No: |
RBI/2015-16/151 A.P.(DIR Series) Circular No.8
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2015-16/151 |
| Subject: |
Exim Bank's GoI supported Line of Credit of USD 6.20 million to Myanma Foreign Trade Bank
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RBI/2015-16/151
A.P.(DIR Series) Circular No.8
August 13, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's GoI supported Line of Credit of USD 6.20 million to
Myanma Foreign Trade Bank
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
May 22, 2015 with the Myanma Foreign Trade Bank, Republic of Union of Myanmar,
for making available to the latter, a Government of India supported Line of
Credit (LOC) of USD 6.20 million (USD Six Million and Two Hundred Thousand) for
financing the implementation of a microwave radio link on the Rhi-Mindat route
to be carried out by Telecommunication Consultants India Limited in the Republic
of Union of Myanmar. The goods, machinery, equipment and services including
consultancy services from India for exports under this agreement are those which
are eligible for export under the Foreign Trade Policy of the Government of
India and whose purchase may be agreed to be financed by the Exim Bank under
this agreement. Out of the total credit by Exim Bank under this agreement, the
goods and services including consultancy services of the value of at least 75%
of the contract price shall be supplied by the seller from India and the
remaining 25% goods and services (other than consultancy services) may be
procured by the seller for the purpose of the eligible contract from outside
India.
- The credit agreement under the LOC is effective from July 27, 2015
and the date of execution of agreement is May 22, 2015. The last date for
opening of letters of credit and disbursement will be 48 months from the
scheduled completion date of contract in the case of project exports and
March 21, 2021 (72 months from the execution date of the credit agreement)
in the case of other supply contracts.
- Shipments under the LOC will have to be declared on EDF/ SDF Forms as per
instructions issued by the Reserve Bank from time to time.
- No agency commission is payable under the above LOC. However, if
required, the exporter may use his own resources or utilize balances in his
Exchange Earners’ Foreign Currency Account for payment of commission in free
foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may
allow such remittance after realization of full payment of contract value
subject to compliance with the prevailing instructions for payment of agency
commission.
- AD Category-I banks may bring the contents of this circular to the notice
of their exporter constituents and advise them to obtain full details of the
Line of Credit from the Exim Bank’s office at Centre One, Floor 21, World
Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to
www.eximbankindia.in.
- The Directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of
1999) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(A.K. Pandey)
Chief General Manager
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