RBI/2009-10/125
A.P. (DIR Series) Circular No.07
August 18, 2009
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 17.34 million to
the Government of Lao People's Democratic Republic
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated
February 20, 2009 with the Government of Lao People's Democratic Republic making
available to the latter, a Line of Credit (LOC) of USD 17.34 million (USD
seventeen million three hundred and forty thousand) for financing eligible goods
and services including consultancy services from India pertaining to inputs for
development of irrigation schemes in the Chamassack Province to be executed by
Water and Power Consultancy Services (WAPCOS) (India) Limited in Lao PDR. 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 60
per cent of the contract price shall be supplied by the seller from India or be
of Indian origin, and the remaining 40 per cent 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 24, 2009 and date
of execution of Agreement is February 20, 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 (February 19, 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