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RBI/2005-06/191
A.P. (DIR Series) Circular No. 14
October 27, 2005
To
All Banks Authorised to Deal in Foreign Exchange
Madam/Sir,
Exim Bank's Line of Credit of USD 50 Million
to The Government of the Republic of Chad
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with the Government of the Republic of
Chad making available to the latter a Line of Credit (LOC) upto an aggregate
sum of USD 50 Million (US Dollar Fifty Million only). The credit agreement has
become effective on September 27, 2005. The credit is available for financing
equipment, goods and services eligible for being exported from India under the
Foreign Trade Policy of the Government of India for four projects in Chad viz.(a)
cotton yarn plant valued at USD 24.5 million (b) steel billet plant and rolling
mill valued at USD 11.5 million, (c) plant for assembly of agricultural equipment
valued at USD 10 million and (d) bicycle plant valued at USD 4 million. Full
details of the Line of Credit are available at the Exim Bank's office or its
website (www.eximbankindia.com).
2. The terminal utilization period will
expire at the end of 48 months from the completion date in case of project exports
and 72 months from the date of execution of the Agreement i.e. August 29, 2011
in case of other supply contracts.
3. Shipments under the credit will have
to be declared on GR / SDF Forms as per instructions issued 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 commission
in free foreign exchange. The ADs may allow such remittance after realisation
of full payment of contract value subject to compliance of prevailing instructions
on payment of agency commission.
5. Authorised Dealers may bring the contents
of this circular to the notice of their exporter constituents. Full details
of the Line of Credit are available at the Exim Bank's office or its website.
6. The directions contained in this circular
have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management
Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals,
if any, required under any other law.
Yours faithfully,
B. P. Kanungo
General Manager- in - Charge
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