To
All Category - I Authorised Dealer Banks
Madam
/ Sir,
Exim Bank's Line of Credit of USD 33 million
to
the Government of Lao People’s Democratic Republic (Lao PDR)
Export-Import
Bank of India (Exim Bank) has concluded an Agreement dated August 27, 2008 with
the Government of Lao People’s Democratic Republic, making available to the latter,
a Line of Credit (LOC) of USD 33 million (USD thirty three million) for the purpose
of financing supply of equipments, goods and services including consultancy services
from India for (i) Paksong S/S -Jiangxai 115 KV, double circuit Transmission Line
Project ; (ii) Nam Song 7.5 MW Hydropower project and (iii) Equipment for Rural
Electrification Phase 2 Project in Lao PDR . The goods 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
of the value of at least 85 per cent of the contract price shall be supplied by
the seller from India, and the remaining 15 percent goods and services (other
than consultancy services) may be procured by the seller for the purpose of Eligible
Contract from outside India.
2. The Credit Agreement under
the LOC is effective from October 14, 2008 and date of execution of Agreement
is August 27, 2008. Under the LOC, the last date for opening of Letters of Credit
and Disbursement will be 48 months from the scheduled completion date(s) of contract(s)
in case of project exports and 72 months ( August 26, 2014) from the execution
date of the Credit Agreement in case of supply contracts.
3.
Shipments under the LOC 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 LOC. However, if required, the exporter may use his
own resources or utilize balances of 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 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 sections 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,
Salim Gangadharan
Chief
General Manager-in-Charge