RBI/2016-17/68
A.P. (DIR Series) Circular No. 03
September 29, 2016
To
All Category - I Authorised Dealer Banks
Madam/Sir,
Exim Bank's GoI supported Line of Credit of USD 87.00 million to the
Government of the Republic of Zimbabwe
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
October 27, 2015 with the Government of the Republic of Zimbabwe for making
available to the latter, a Government of India supported Line of Credit (LOC) of
USD 87.00 million (USD Eighty Seven million) for financing
renovation/up-gradation of Bulawayo Thermal Power Plant in Republic of Zimbabwe.
Subsequently, Exim Bank has signed First Amendatory Dollar Credit Line Agreement
with the Government of the Republic of Zimbabwe on May 31, 2016 on account of
the revision of the Guidelines on Lines of Credit extended by the Government of
India to various countries under its Indian Development and Economic Assistance
Scheme (IDEAS) dated December 7, 2015. 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 may be procured by the seller for
the purpose of the eligible contract from outside India.
2. The credit agreement under the LOC is effective from August 19, 2016.
Under the LOC, last date for opening letters of credit disbursement is 60 months
after the scheduled completion date of the project.
3. 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.
4. 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.
5. 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.
6. 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,
(Shekhar Bhatnagar)
Chief General Manager-in-Charge
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