RBI/2013-14/353
A.P. (DIR Series) Circular No.66
October 31, 2013
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 149.72 million
to the Government of the Republic of Mozambique
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated July
04, 2013 with the Government of the Republic of Mozambique, for making available
to the latter, a Line of Credit (LOC) of USD 149.72 million (USD One Hundred and
Forty Nine million and Seven Hundred and Twenty Thousand) for financing eligible
goods, services, machinery and equipment including consultancy services from
India for the purpose of financing rehabilitation of road between Tica, Buzi and
Nova Sofala in Mozambique. 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 October 04, 2013 and the
date of execution of Agreement is July 04, 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 (July 03, 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