Reserve Bank Of India
A.P. (DIR Series) Circular No. 21
August 12, 2013
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 28.60 million
to the Republic of Zimbabwe
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated June
21, 2013 with the Republic of Zimbabwe, for making available to the latter, a
Line of Credit (LOC) of USD 28.60 million (USD Twenty- eight million six hundred
thousand only) for financing eligible goods, services, machinery and equipment
including consultancy services from India for the purpose of financing
upgradation of Deka Pumping Station and River Water Intake System in Zimbabwe.
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 percent goods
and 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 July 25, 2013 and the
date of execution of Agreement is June 21, 2013. 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 (June 20, 2019) 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,
(C. D. Srinivasan)
Chief General Manager
RBI/2013-14/177