Cuba Gets USD 75mn Credit for Installation of
75MW Photovoltaic Solar Parks
[A.P. (DIR
Series) Circular No. 14 (RBI/2019-20/134) dated January 01, 2020]
Sub: Exim Bank's Government of India supported Line of Credit (LOC) of USD
75 million to Banco Exterior De Cuba
Export-Import
Bank of India (Exim Bank) has entered into an agreement dated July 16, 2019
with Banco Exterior De Cuba (nominated agency of the Government of Cuba), for
making available to the latter, Government of India supported Line of Credit
(LoC) of USD 75 million (USD Seventy Five Million only) for the purpose of
financing installation of 75 MW Photovoltaic Solar Parks in the Republic of
Cuba. Under the arrangement, financing of export of eligible goods and services
from India, as defined under the agreement, would be allowed subject to their
being 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 the agreement,
goods, works 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 December 12, 2019. Under the LoC, the terminal
utilization period is 60 months after the scheduled completion date of the
project.
3. Shipments
under the LoC shall be declared in 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 his own resources or utilize balances
in his 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 complete 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 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.