RBI/2020-2021/96
A.P. (DIR Series) Circular No. 09
February 11, 2021
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank's Government of India supported Line of
Credit (LoC) of USD 400 million to the Government of the Republic of Maldives
Export-Import Bank of India (Exim Bank) has
entered into an agreement dated October 12, 2020 with the Government of the
Republic of Maldives, for making available to the latter, Government of India
supported Line of Credit (LoC) of USD 400 million (USD Four Hundred million
only) for the purpose of undertaking the Greater Male Connectivity – (Male’ to
Thilafushi Link) project in the Republic of Maldives. 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 January 28, 2021. 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. S. Amar)
Chief General Manager
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