RBI/2009-10/104
A.P. (DIR Series) Circular No.04
July 21, 2009
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 25 million to
the Government of the Republic of Sudan
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated
January 26, 2009 with the Government of the Republic of Suda n making available
to the latter, a Line of Credit (LOC) of USD 25 million (USD twenty five
million) for financing eligible goods and services including consultancy
services from India for Elduem Sugar Project at White Nile State in Sudan. 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 July 6, 2009
and date of execution of Agreement is January 26, 2009. 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 (January 25, 2015) 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