Trade Credit the Companies in the Infrastructure Sector – (ECB) Are Allowed to avail of Trade Credit up to a Maximum Period of Five years for Import of Capital Goods
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Trade credit extension allows five-year finance for infrastructure capital imports, with relaxed initial contracting for existing credits. Trade credit for infrastructure-sector companies is permitted up to five years for imports of capital goods (DGFT classified), provided the credit is contracted ab initio for the prescribed minimum period and AD Category I banks do not issue LC/guarantees/LoU/LoC for the extended period beyond three years; existing trade credits benefit from a temporary relaxation reducing the abinitio contracting minimum from fifteen months to six months, while the fifteen month requirement continues for future credits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Trade credit extension allows five-year finance for infrastructure capital imports, with relaxed initial contracting for existing credits.
Trade credit for infrastructure-sector companies is permitted up to five years for imports of capital goods (DGFT classified), provided the credit is contracted ab initio for the prescribed minimum period and AD Category I banks do not issue LC/guarantees/LoU/LoC for the extended period beyond three years; existing trade credits benefit from a temporary relaxation reducing the abinitio contracting minimum from fifteen months to six months, while the fifteen month requirement continues for future credits.
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