Line of credit terms require majority Indian-sourced supplies, specific disbursement timelines and FEMA compliance, and AD bank obligations. Exim Bank's USD 100 million LOC for Sri Lanka's Colombo-Matara railway requires at least 85% of contract value to be supplied from India; remaining non consultancy inputs may be sourced externally. The Credit Agreement is effective from October 3, 2008, with LC/disbursement cutoffs at 48 months from project completion for project exports and 72 months from execution for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission payments subject to realization and prevailing rules. AD Category I banks must inform exporters and may permit remittances; Directions issued under sections 10(4) and 11(1) of FEMA, 1999.
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 terms require majority Indian-sourced supplies, specific disbursement timelines and FEMA compliance, and AD bank obligations.
Exim Bank's USD 100 million LOC for Sri Lanka's Colombo-Matara railway requires at least 85% of contract value to be supplied from India; remaining non consultancy inputs may be sourced externally. The Credit Agreement is effective from October 3, 2008, with LC/disbursement cutoffs at 48 months from project completion for project exports and 72 months from execution for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission payments subject to realization and prevailing rules. AD Category I banks must inform exporters and may permit remittances; Directions issued under sections 10(4) and 11(1) of FEMA, 1999.
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