Reserve Bank Of India
A. P. (DIR Series) Circular No.61
December 27, 2011
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 40 million
to the Government of the Republic of Maldives
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated August
12, 2011 with the Government of the Republic of Maldives, making available to
the latter, a Line of Credit (LOC) of USD 40 million (USD forty million) for
financing eligible goods, services, machinery and equipment including
consultancy services to be exported from India for the purpose of financing the
construction of 500 housing units in Maldives. 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 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 October 25, 2011 and the
date of execution of Agreement is August 12, 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 (August 11, 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/2011-12/318