RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A. P. (DIR Series) Circular No.116
May 04, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 382.37 million to the
Government of the Democratic Socialist Republic of Sri Lanka
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated January
17, 2012 with the Government of the Democratic Socialist Republic of Sri Lanka,
making available to the latter, a Line of Credit (LOC) of USD 382.37 million
(USD three hundred eighty two million three hundred seventy thousand) for
financing export of eligible goods and services including consultancy services
for the purpose of (i) Track-laying on the Pallai-Kankesanthurai Railway Line
(USD 149.34 million), (ii) Setting up of signaling and telecommunications system
for the Northern Railway Line (USD 86.52 million) and (iii) any other contracts
that may be mutually approved by the Government of the Democratic Socialist
Republic of Sri Lanka and the Government of India in Sri Lanka (USD 146.51
million). 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 75 per cent of the contract price shall be
supplied by the seller from India and the remaining 25 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 April 11, 2012 and the
date of execution of Agreement is January 17, 2012. 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 (January 16, 2018) 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
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/2011-12/533