Date: |
30-08-2018
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Notification No: |
A.P. (DIR Series) Circular No. 7
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Issuing Authority: |
RBI
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Type: |
A.P.D.(Series) Circulars
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File No: |
RBI//2018-19/43 |
Subject: |
Exim Bank's Government of India supported Line of Credit of USD 90.3 million to Banco Exterior De Cuba
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RBI//2018-19/43 A.P. (DIR Series) Circular No. 7
August 30, 2018
To
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank's Government of India supported Line of Credit of USD 90.3 million to Banco Exterior De Cuba
Export-Import Bank of India (Exim Bank) has entered into an agreement dated April 11, 2018 with Banco
Exterior De Cuba (nominated agency of the Government of Cuba) for making available to the latter, a Government of India supported
Line of Credit (LoC) of USD 90.3 million (USD Ninety million three hundred thousand only) for the purpose of financing setting up
of a 50 MW cogeneration power plant in the Republic of Cuba. Under the arrangement, financing of export of eligible goods and
services from India, as defined under the agreement, would be allowed subject to their being 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 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 8, 2018 and the terminal utilization period is 60 months from the
scheduled completion date of the respective contract.
3. Shipments under the LoC shall be declared in 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 his own resources
or utilize balances in his 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 Line of Credit 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
(R K Moolchandani)
Chief General Manager
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