A. P. (DIR Series) Circular No. 14
August 13, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 40.32 million
to the Government of the Republic of Chad
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated January
19, 2012 with the Government of the Republic of Chad, making available to the
latter, a Line of Credit (LOC) of USD 40.32 million (USD forty million three
hundred and twenty thousand) for financing eligible goods, services, machinery
and equipment including consultancy services from India for the purpose of
financing of four projects viz, (i) Compost Production Unit (USD 7.20mn), (ii)
Rural Electrification (solar energy) (USD 15 mn), (iii) Production Unit of Live
Stock Feed (USD 2.22 mn) and (iv) Extension of Spinning Mill (addition of
weaving and processing capacities) (USD 15.90 mn) in Chad. 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 sellers from India and the remaining 25 percent goods and services (other
than consultancy services) may be procured by the sellers for the purpose of
Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from July 26, 2012 and the
date of execution of Agreement is January 19, 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 18, 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 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/2012-13/166