RBI/2016-17/246
A.P. (DIR Series) Circular No. 37
March 09th, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 750 million
to the Government of Nepal
Export-Import Bank of India (Exim Bank) has entered into an agreement on
September 16, 2016 with the Government of Nepal for making available to the
latter, a Government of India supported Line of Credit (LOC) of USD 750 million
(USD Seven hundred fifty million only) for financing the post-earthquake
reconstruction projects in Nepal. The goods including plant, 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, goods and services of the value of at least 75 per
cent of the contract price shall be supplied by the seller from India, except
for civil works for which 50 per cent of the contract price shall be supplied by
the seller from India.
2. The credit agreement under the LOC is effective from February 24, 2017.
Under the LOC, the terminal utilization period is 60 months after the scheduled
completion date of the project.
3. Shipments under the LOC will have to be declared on Export Declaration
Form 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 its own resources or utilize balances in its Exchange
Earners’ Foreign Currency Account for payment of commission in free foreign
exchange. Authorised Dealer Category- I (AD Category- I) banks may allow such
remittance after realization of full payment of contract value subject to
compliance with the extant 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 LOC
from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005 or from their website
www.eximbankindia.in.
6. 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) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(J. K. Pandey)
Chief General Manager
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