| Date: |
16-09-2015
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| Notification No: |
RBI/2015-16/177 A.P. (DIR Series) Circular No.14
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2015-16/177 |
| Subject: |
Exim Bank's GoI supported Line of Credit of USD 26.24 million to the Government of Republic of Nicaragua
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RBI/2015-16/177
A.P. (DIR Series) Circular No.14
September 16, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's GoI supported Line of Credit of USD 26.24 million to the
Government of Republic of Nicaragua
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
March 25, 2015 with the Government of Republic of Nicaragua, for making
available to the latter, a Government of India supported Line of Credit (LOC) of
USD 26.24 million (USD Twenty Six million and Two Hundred and Forty Thousand)
for financing building of Carlos Fonseca substation, 95 km transmission lines
and expansion of three substations (Villa El Carmen, Las Colinas & San Rafael
del Sur) in the Republic of Nicaragua. 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 August 10, 2015 and
the date of execution of agreement is March 25, 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 24, 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 section
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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