RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A. P. (DIR Series) Circular No. 110
April 20, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 15 million to the
Government of the Republic of Togo
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated
November 23, 2011 with the Government of the Republic of
Togo, making
available to the latter, a Line of Credit (LOC) of USD 15 million (USD fifteen
million) for financing export of eligible goods,
services, machinery and
equipment
including consultancy services for the purpose of financing Rural
Electrification
Project in Togo. The goods, services, machinery and equipment 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
75
per cent of the contract price shall be supplied by the seller from India and
the
remaining 25 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 March 30, 2012
and
the date of execution of Agreement is November 23, 2011. 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 (November 22, 2017) 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,
(Rashmi Fauzdar)
Chief General Manager
RBI/2011-12/518