RBI/2019-20/134 A.P. (DIR Series) Circular No. 14
January 01, 2020
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank's Government of India supported Line of Credit (LOC) of USD 75
million to Banco Exterior De Cuba
Export-Import Bank of India (Exim Bank) has entered into an agreement dated July
16, 2019 with Banco Exterior De Cuba (nominated agency of the Government of
Cuba), for making available to the latter, Government of India supported Line of
Credit (LoC) of USD 75 million (USD Seventy Five Million only) for the purpose
of financing installation of 75 MW Photovoltaic Solar Parks 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 the agreement, goods,
works 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 December 12, 2019. Under the LoC, the terminal utilization period is 60
months after the scheduled completion date of the project.
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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