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Date: 11-07-2019
Notification No: A.P. (DIR Series) Circular No.2
Issuing Authority: RBI  
Type: A.P.D.(Series) Circulars
File No: RBI/2019-20/15
Subject: Exim Bank's Government of India supported Line of Credit of USD 24.50 million to the Government of the Republic of Senegal

RBI/2019-20/15
A.P. (DIR Series) Circular No.2

July 11, 2019

All Category – I Authorised Dealer Banks

Madam/Sir

Exim Bank's Government of India supported Line of Credit of USD 24.50 million to the
Government of the Republic of Senegal

Export-Import Bank of India (Exim Bank) has entered into an agreement dated August 20, 2018 with the Government of the Republic of Senegal for making available to the latter, a Government of India supported Line of Credit (LoC) of USD 24.5 million (USD Twenty Four Million and Five Hundred Thousand only) for the purpose of financing up-gradation and rehabilitation of Health Care System in the Republic of Senegal. 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 the agreement, goods and services of the value of at least 65 per cent of the contract price shall be supplied by the seller from India and the remaining 35 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India. The purchase of equipment should be from Indian manufacturers with provision for 3 years warranty plus 10 to 12 years of comprehensive maintenance contract, so as to ensure proper functioning for adequate period. Further, the drugs (preferably generic) should also be sourced from Indian manufacturers.

2. The Agreement under the LoC is effective from June 26, 2019. Under the LoC, the terminal utilization period is 60 months after the scheduled completion date of the 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 complete 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

(R K Moolchandani)
Chief General Manager

       

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