A P (DIR Series)
CIRCULAR NO
03/RBI., Dated: September 29, 2016
Exim 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 www.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.
RBI/2016-17/68
(Shekhar Bhatnagar)
Chief General Manager-in-Charge
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