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RBI/2021-2022/26
A.P. (DIR Series) Circular
No.02
April 29, 2021
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank's Government of India supported Line of
Credit (LoC) of
USD 250 million to the Government of the Republic of
Mozambique
Export-Import Bank of India (Exim Bank) has
entered into an agreement dated August 03, 2020 with the Government of the
Republic of Mozambique, for making available to the latter, Government of India
supported Line of Credit (LoC) of USD 250 million (USD Two Hundred and Fifty
million only) for the purpose of financing improving of quality of power supply
in the Republic of Mozambique. Under the arrangement, financing of export of
eligible goods and services from India, as defined under the agreement, would be
allowed subject to their being 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 the agreement, goods, works and 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 of goods and services may be procured by the seller
for the purpose of the eligible contract from outside India.
2. The
Agreement under the LoC is effective from April 09, 2021. Under the LoC, the
terminal utilization period is 60 months after the scheduled completion date of
the project.
3. Shipments under the LoC shall be declared in Export
Declaration Form as per instructions issued by the Reserve Bank from time to
time.
4. No agency commission is payable for export 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- I (AD Category- I) banks may
allow such remittance after realization of full eligible value of export subject
to compliance with the extant instructions for payment of agency commission.
5. AD Category – I banks may bring the contents of this circular to the
notice of their exporter constituents and advise them to obtain complete details
of the LoC from the Exim Bank’s office at Centre One, Floor 21, World Trade
Centre Complex, Cuffe Parade, Mumbai 400 005 or from their website
www.eximbankindia.in.
6. The directions contained in this circular have
been issued under section 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
(R. S. Amar)
Chief
General Manager
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