Line of credit conditions require majority Indian-sourced supplies and set disbursement timelines, governed under FEMA directions. Exim Bank provided a Line of Credit of USD 30 million to finance a rural electrification project in Togo, requiring at least 75 per cent of contract value to be supplied from India and permitting up to 25 per cent procurement from outside India. The Credit Agreement is effective from August 21, 2014 and sets the last dates for opening Letters of Credit and disbursement by reference to contract completion or 72 months from execution for supply contracts. Shipments under the LOC must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from their own funds or EEFC balances subject to realization and instructions. AD Category I banks must notify exporters and may obtain details from Exim Bank; directions issued under FEMA.
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.
Line of credit conditions require majority Indian-sourced supplies and set disbursement timelines, governed under FEMA directions.
Exim Bank provided a Line of Credit of USD 30 million to finance a rural electrification project in Togo, requiring at least 75 per cent of contract value to be supplied from India and permitting up to 25 per cent procurement from outside India. The Credit Agreement is effective from August 21, 2014 and sets the last dates for opening Letters of Credit and disbursement by reference to contract completion or 72 months from execution for supply contracts. Shipments under the LOC must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from their own funds or EEFC balances subject to realization and instructions. AD Category I banks must notify exporters and may obtain details from Exim Bank; directions issued under FEMA.
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