RBI/2017-18/77
A.P. (DIR Series) Circular No. 09
October
12, 2017
To
All Category - I Authorised
Dealer Banks
Madam / Sir,
Exim
Bank's Government of India supported Line of Credit of USD 318 million to
the Government of Sri Lanka
Export-Import Bank of India
(Exim Bank) has entered into an Agreement on June 06, 2017 with the
Government of Sri Lanka for making available to the latter, a Government of
India supported Line of Credit (LoC) of USD 318 million (USD Three hundred
and eighteen million only) for the purpose of financing (i) Procurement of
rolling Stock for Sri Lanka Railway USD 177 million (USD One hundred
seventy seven million only) (ii) Upgrading railway track from
Moho-Anuradhapura-Omanthai or any other sector USD 136 million (USD One
hundred thirty six million only) and (iii) Utilization of the balance
amount in Sri Lanka as may be agreed between the borrower and Government of
India. The credit is available for financing export of eligible goods and
services from India for the purpose of financing rolling stock and
upgrading railway track in terms of the Agreement and 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. The goods include plant, machinery and equipment and
services include consultancy services. Out of the total credit by Exim Bank
under this agreement, goods 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 August 22, 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 for export 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 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 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 from their website 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,
(J
K Pandey)
Chief General Manager
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