RBI/2010-11/233
A.P. (DIR Series) Circular No. 15
October 13, 2010
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 21.80 million
to the Government of the Islamic Republic of Mauritania
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated
February 09, 2010 with the Government of the Islamic Republic of Mauritania
making available to the latter, a Line of Credit (LOC) of USD 21.80 million (USD
twenty one million eight hundred thousand) for financing eligible goods and
services including consultancy services from India for the purpose of financing
(i) Potable drinking water project (USD 6.80 million); and (ii) Agriculture
development project (USD 15 million) in Mauritania. 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 including consultancy 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 per cent goods and services (other than consultancy
services) may be procured by the seller from outside India for the purpose of
Eligible Contract.
- The Credit Agreement under the LOC is effective from September 03,
2010 and the date of execution of Agreement is February 09, 2010. 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 the case
of project exports and 72 months (February 08, 2016) from the execution date
of the Credit Agreement in the case of supply contracts.
- Shipments under the LOC will have to be declared on GR / SDF Forms as per
instructions issued by the 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 in 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 the 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,
(G. Jaganmohan Rao)
Chief General Manager