RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A. P. (DIR Series) Circular No.125
May 10, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 13 million to the
Government of the Republic of Mozambique
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated
September 1, 2011 with the Government of the Republic of Mozambique, making
available to the latter, a Line of Credit (LOC) of USD 13 million (USD thirteen
million) for the purpose of financing of Solar Photo Voltaic Module
Manufacturing
plant in Mozambique. The goods, machinery, equipment 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 23, 2012 and
the date of execution of Agreement is September 1, 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 31, 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/2011-12/549