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RBI/2017-18/28
A.P. (DIR Series) Circular No. 02
July 27th, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 24.54 million
to the Government of the Republic of Ghana
Export-Import Bank of India (Exim Bank) has entered into an agreement on
November 22nd, 2016 with the Government of the Republic of Ghana for making
available to the latter, a Government of India supported Line of Credit (LoC) of
USD 24.54 million (USD Twenty four million and five hundred forty thousand only)
for the purpose of financing sugarcane development and irrigation project in the
Republic of Ghana. The credit is available for financing export of eligible
goods and services from India for the purpose of financing sugarcane development
and irrigation project in terms of the agreement and 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. The
goods include plant, machinery and equipment and services include consultancy
services. 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 and the remaining 25 per cent of goods and
services may be procured by the seller for the purpose of the eligible contract
from outside India.
2. The Agreement under the LoC is effective from July 07th, 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 for export 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 eligible value of export 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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