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RBI/2014-15/598
A.P. (DIR Series) Circular No.100
May 14, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 1 billion to the
Government of Nepal
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
November 25, 2014 with the Government of Nepal, for making available to the
latter, a Line of Credit (LOC) of USD 1 billion (USD One billion) for financing
of hydropower, irrigation and infrastructure development projects in Nepal. 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 except from civil works for which 50%
of the contract price shall be supplied by the Seller from India.
2. The Credit Agreement under the LOC is effective from March 27, 2015. Under
the LOC, the last date for opening of letters of credit and disbursement will be
48 months from the scheduled completion date of contract in the case of project
exports and November 24, 2020 (72 months from the execution date of the Credit
Agreement) in the case of other supply contracts.
3. Shipments under the LOC will have to be declared on EDF/ SDF Forms as per
instructions issued by the Reserve Bank from time to time.
4. 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.
5. 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.
6. 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,
(A. K. Pandey)
Chief General Manager
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