RBI/2010-11/358
A.P. (DIR Series) Circular No. 37
January 05, 2011
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 5 million to
the Government of the Republic of Senegal
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated
March 15, 2010 with the Government of the Republic of Senegal making available
to the latter, a Line of Credit (LOC) of USD 5 million (USD five million) for
financing eligible goods and services including machinery, equipment and
consultancy services from India for the purpose of financing supply of medical
equipments, furniture and other accessories to four hospitals in Senegal. 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 for the purpose of
Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from December 8, 2010
and the date of execution of Agreement is March 15, 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 (March 14, 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