Reserve Bank Of India
A.P. (DIR Series) Circular No.57
December 11, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 178.125 million to the
Government of the United Republic of Tanzania
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated October
2, 2012 with the Government of the United Republic of Tanzania, making available
to the latter, a Line of Credit (LOC) of USD 178.125 million (USD one hundred
seventy–eight million and one hundred twenty –five thousand) for the purpose of
augmentation of water supply scheme of Dar-es-Salaam and Chalinze regions in
Tanzania. 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 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 November 21, 2012 and
the date of execution of Agreement is October 2, 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 (October 1, 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,
(Dr. Sujatha Elizabeth Prasad)
Chief General Manager-in-Charge
RBI/2012-13/323