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RBI/2017-18/77
A.P. (DIR Series) Circular No. 09
October 12th, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 318 million
to the Government of Sri Lanka
Export-Import Bank of India (Exim Bank) has entered into an Agreement on June
06, 2017 with the Government of Sri Lanka for making available to the latter, a
Government of India supported Line of Credit (LoC) of USD 318 million (USD Three
hundred and eighteen million only) for the purpose of financing (i) Procurement
of rolling Stock for Sri Lanka Railway USD 177 million (USD One hundred seventy
seven million only) (ii) Upgrading railway track from Moho-Anuradhapura-Omanthai
or any other sector USD 136 million (USD One hundred thirty six million only)
and (iii) Utilization of the balance amount in Sri Lanka as may be agreed
between the borrower and Government of India. The credit is available for
financing export of eligible goods and services from India for the purpose of
financing rolling stock and upgrading railway track 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 August 22, 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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