RBI/2017-18/92
A.P. (DIR Series) Circular No. 12
November
16, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim
Bank's Government of India supported Line of Credit of USD 500 million to
the SBM (Mauritius) Infrastructure Development Company Ltd.
Export-Import Bank of India
(Exim Bank) has entered into an Agreement on May 27, 2017 with the SBM
(Mauritius) Infrastructure Development Company Ltd. for making available to
the latter, a Government of India supported Line of Credit (LoC) of USD 500
million (USD Five hundred million only) for the purpose of financing its
participation through Redeemable Preference Shares in public sector
entities to implement infrastructure or other projects in Mauritius. Under
the arrangement financing export of eligible goods and services from India
would be allowed 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 October 03, 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
|