To,
All Category - I Authorised Dealer Banks
Madam
/ Sir,
Exim Bank's Line of Credit (LOC) of USD 60 million
to Myanma Foreign Trade Bank, Myanmar
Export-Import
Bank of India (Exim Bank) has concluded an agreement dated October 29, 2007 with
Myanma Foreign Trade Bank, Myanmar, making available to the latter, a Line of
Credit (LOC) of USD 60 million (USD Sixty million only) for financing export of
goods and services for financing the Thahtay Chaung Hydropower Project in Myanmar
to be executed by M/s. Bharat Heavy Electricals Limited. The goods and services
for export under the 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 Exim Bank under this agreement. Out of the total credit under
this Agreement, the goods and services of the value of at least 85 per cent of
the contract price shall be supplied by the seller from India.
2. The Credit Agreement under the LOC is effective from December 19, 2007. Under
the LOC, the last date for opening Letters of Credit will be 48 months from the
scheduled completion dates(s) of contracts(s) in case of Project exports and 72
months (October 28, 2013) from the execution date of the Credit Agreement in case
of other supply contracts.
3. Shipments under the credit
will have to be declared on GR / SDF Forms as per instructions issued by Reserve
Bank from time to time.
4. No agency commission is payable
under the above line of credit. However, if required the exporter may use his
own resources or utilize balances of his EEFC account for payment of agency commission
in free foreign exchange. Authorised Dealer Category –I (AD Category – I ) banks
may allow such remittance after realisation of full payment of contract value
subject to compliance of prevailing instructions on 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 Exim Bank's office at Centre One, Floor 21, World Trade Centre
Complex, Cuffe Parade, Mumbai 400 005.
6. The directions
contained in this circular have been issued under sections 10(4) and 11(1) of
the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and is without prejudice
to permissions / approvals, if any, required under any other law.
Yours
faithfully,
(Salim Gangadharan)
Chief General Manager