A.P. (DIR Series) Circular No. 03
All Category - I Authorised
Bank's GoI supported Line of Credit of USD 87.00 million
to the Government of the Republic of Zimbabwe
Export-Import Bank of India
(Exim Bank) has entered into an Agreement dated October 27, 2015 with the
Government of the Republic of Zimbabwe for making available to the latter,
a Government of India supported Line of Credit (LOC) of USD 87.00 million
(USD Eighty Seven million) for financing renovation/up-gradation of
Bulawayo Thermal Power Plant in Republic of Zimbabwe. Subsequently, Exim
Bank has signed First Amendatory Dollar Credit Line Agreement with the
Government of the Republic of Zimbabwe on May 31, 2016 on account of the
revision of the Guidelines on Lines of Credit extended by the Government of
India to various countries under its Indian Development and Economic
Assistance Scheme (IDEAS) dated December 7, 2015. 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% of the contract
price shall be supplied by the seller from India and the remaining 25%
goods and services may be procured by the seller for the purpose of the
eligible contract from outside India.
2. The credit agreement under
the LOC is effective from August 19, 2016. Under the LOC, last date for
opening letters of credit disbursement is 60 months after the scheduled
completion date of the project.
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 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.
Chief General Manager-in-Charge