| Date: |
16-11-2017
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| Notification No: |
A.P. (DIR Series) Circular No. 12
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2017-18/92 A.P. (DIR Series) Circular No. 12 |
| Subject: |
Exim Bank's Government of India supported Line of Credit of USD 500 million to the SBM (Mauritius) Infrastructure Development Company Ltd.
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RBI/2017-18/92
A.P. (DIR Series) Circular No. 12
November 16th, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 500 million
to the SBM (Mauritius) Infrastructure Development Company Ltd.
Export-Import Bank of India (Exim Bank) has entered into an Agreement on May
27, 2017 with the SBM (Mauritius) Infrastructure Development Company Ltd. for
making available to the latter, a Government of India supported Line of Credit
(LoC) of USD 500 million (USD Five hundred million only) for the purpose of
financing its participation through Redeemable Preference Shares in public
sector entities to implement infrastructure or other projects in Mauritius.
Under the arrangement financing export of eligible goods and services from India
would be allowed 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 October 03, 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 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,
(J K Pandey)
Chief General Manager
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