Date: 2022-11-17Category: Not ApplicableState: Union GovernmentCountry: India
Exim Bank’s GoI supported Line of Credit of USD 300 Mn to the SBM (Mauritius) Infrastructure Development Company Ltd. for Construction of Phase-IV of the Mauritius Metro Express Project in Mauritius
**Summary:**
This circular, RBI20222023137 A.P. DIR Series Circular No. 18, issued on November 17, 2022, by the Reserve Bank of India, informs all Category I Authorised Dealer banks and Exim Banks about a Government of India-supported Line of Credit (LoC) of USD 300 million to the SBM Mauritius Infrastructure Development Company Ltd. (SBMIDCL). The LoC, established through an agreement dated October 17, 2022, between the Export-Import Bank of India (Exim Bank) and SBMIDCL, is designated for financing SBMIDCL's participation, via Redeemable Preference Shares, in public sector entities involved in the construction of Phase IV of the Metro Express Project in Mauritius.
The LoC stipulates that at least 75% of the contract price for goods, works, and services must be supplied by Indian sellers; the remaining 25% may be procured from outside India. The agreement is effective from November 7, 2022, with a terminal utilization period of 48 months from the scheduled project completion date.
Exporters must declare shipments under the LoC in the Export Declaration Form/Shipping Bill as per RBI instructions. No agency commission is payable for exports under this LoC, but exporters may use their own resources or Exchange Earners Foreign Currency Account balances for commission payments in free foreign exchange, subject to AD Category I banks' approval upon realization of the full export value and compliance with existing agency commission payment guidelines.
AD Category I banks are instructed to inform their exporter constituents about this LoC and advise them to obtain complete details from 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. This circular is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999, and does not override any other legal requirements.
Key Entities Referenced
Exim Banks GoI supported Line of Credit of USD 300 Mn: Line of Credit from Exim Bank supported by the Government of India, amounting to USD 300 million.
SBM Mauritius Infrastructure Development Company Ltd.: The recipient of the Line of Credit for the Mauritius Metro Express Project.
Mauritius Metro Express Project: A construction project in Mauritius, specifically Phase IV, being financed by the Line of Credit.
Export-Import Bank of India: The Indian export credit agency providing the Line of Credit.
October 17, 2022: Date of the agreement between Exim Bank and SBM Mauritius Infrastructure Development Company Ltd.
Foreign Trade Policy of the Government of India: The export of eligible goods and services from India would be allowed subject to their eligibility under this policy
Foreign Exchange Management Act, 1999: The Act under which the directions in the circular are issued.
Mumbai, Maharashtra: Location of the Exim Bank office mentioned in the circular.
RBI/2022-2023/137
A.P. (DIR Series) Circular No. 18 November 17, 2022
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank’s GoI supported Line of Credit of USD 300 Mn to the SBM (Mauritius)
Infrastructure Development Company Ltd. for Construction of Phase-IV of the
Mauritius Metro Express Project in Mauritius
Export-Import Bank of India (Exim Bank) has entered into an agreement dated October
17, 2022 with the SBM (Mauritius) Infrastructure Development Company Ltd (SBMIDCL),
for making available to the latter, Government of India supported Line of Credit (LoC) of
USD 300 million (USD Three Hundred Million Only) for the purpose of financing its
participation through Redeemable Preference Shares in public sector entities to
implement the construction of Phase-IV of the Metro Express Project in Mauritius. The
export of eligible goods and services from India for the purpose of the construction of
Phase-IV of the Metro Express Project in Mauritius, 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.
2. The Agreement under the LoC is effective from November 07, 2022. Under the LoC,
the terminal utilization period is 48 months from the scheduled completion date of the
project.3. 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.
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 (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.
Yours faithfully
(Vivek Srivastava)
Chief General Manager