Export Credit of
US$ 448mn to Uzbekistan for Social Infrastructure and Other Development
Projects
[A.P.
(DIR Series) Circular No.15 dated September 15, 2022]
Exim
Bank’s GOI-supported Line of Credit of USD 448 million to the Government of
Republic of Uzbekistan for Social Infrastructure and Other Development Projects
Export-Import
Bank of India (Exim Bank) has entered into an agreement dated December 10, 2020
with the Government of Republic of Uzbekistan, for making available to the
latter, Government of India supported Line of Credit (LoC) of USD 448 million
(USD Four Hundred and Forty-Eight Million Only) for the purpose of financing
the social infrastructure and other development projects. The export of
eligible goods and services from India, as defined under the agreement, would
be allowed subject to their eligibility 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.
The
Agreement under the LoC is effective from September 12, 2022. Under the LoC,
the terminal utilization period is 60 months from the scheduled completion date
of the project.
Shipments
under the LoC shall be declared in Export Declaration Form/Shipping Bill as per
instructions issued by the Reserve Bank from time to time.
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 (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.
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
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.