RBI/2008-09/363
A. P. (DIR Series) Circular No. 49
January 29, 2009
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 29.50 million
to the Government of the Central African Republic
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated October
23, 2008 with the Government of the Central African Republic making available to
the latter, a Line of Credit (LOC) of USD 29.50 million (USD twenty nine million
five hundred thousand) for financing eligible goods and services including
consultancy services from India for (i) Setting up a modern dry process cement
plant of 400 TPD capacity and (ii) procurement of 100 buses for internal
transport in Central African Republic. The goods and services including
consultancy services from India for exports under this Agreement are 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. Out of the total credit by Exim Bank under this Agreement, the
goods and services of the value of at least 85 per cent of the contract price
shall be supplied by the seller from India, and the remaining 15 percent goods
and services (other than consultancy services) may be procured by the seller for
the purpose of Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from December 29, 2008 and
date of execution of Agreement is October 23, 2008. Under the LOC, the last date
for opening of Letters of Credit and Disbursement will be 48 months from the
scheduled completion date(s) of contract(s) in case of project exports and 72
months (October 22 , 2014) from the execution date of the Credit Agreement in
case of supply contracts.
- Shipments under the LOC will have to be declared on GR / SDF Forms as per
instructions issued by Reserve Bank from time to time.
- No agency commission is payable under the above LOC. However, if required,
the exporter may use his own resources or utilize balances of his Exchange
Earners’ Foreign Currency Account for payment of commission in free foreign
exchange. Authorised Dealer Category - l (AD Category - l) banks may allow such
remittance after realization of full payment of contract value subject to
compliance with the prevailing instructions for payment of agency commission.
- 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 Exim Bank’s office at Centre One, Floor 21, World Trade
Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to www. eximbankindia.
in.
- The directions contained in this circular have been issued under sections
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,
(Salim Gangadharan)
Chief General Manager-in-Charge