RBI/2016-17/237
A.P. (DIR Series) Circular No. 32
March
02, 2017
To
All Category - I Authorised
Dealer Banks
Madam / Sir,
Exim
Bank's Government of India supported Line of Credit of USD 29.95 million to
the Government of the Republic of Kenya
Export-Import Bank of India
(Exim Bank) has entered into an agreement dated July 11, 2016 with the
Government of the Republic of Kenya for making available to the latter, a
Government of India supported Line of Credit (LOC) of USD 29.95 million
(USD Twenty Nine million and Nine hundred Fifty thousand only) for
financing up gradation of Rift Valley Textiles factory (RIVATEX East Africa
Limited) in the Republic of Kenya. The goods including plant, 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, goods and services of the
value of at least 72 per cent of the contract price shall be supplied by the
seller from India and the remaining 28 per cent of 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 February 17, 2017. Under the LOC, the terminal
utilization period is 60 months after the scheduled completion date of the
project.
3. Shipments under the LOC will
have to be declared on Export Declaration Form 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 its
own resources or utilize balances in its 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 payment of contract value 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 full 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 on their website eximbankindia.in.
6. The directions contained in
this circular have been issued under Section 10(4) and Section 11(1) of the
Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.
Yours
faithfully,
(Deepak
Kumar)
Chief General Manager
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