Line of Credit to Madagascar secures India sourced exports with prescribed local content and FEMA compliance for remittances. Exim Bank's USD 25 million Line of Credit to Madagascar finances two projects with exports eligible under India's Foreign Trade Policy; at least 85% of contract value must be supplied from India and up to 15% (excluding consultancy) may be procured abroad. The Credit Agreement is effective from December 4, 2008; LCs/disbursements must be opened within 48 months from project completion for project exports and within 72 months from execution for supply contracts. Shipments require GR/SDF declarations. No agency commission is payable under the LOC, though exporters may remit commission from their own resources or EEFC balances after realization. AD Category I banks must inform exporters and implement these directions 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 to Madagascar secures India sourced exports with prescribed local content and FEMA compliance for remittances.
Exim Bank's USD 25 million Line of Credit to Madagascar finances two projects with exports eligible under India's Foreign Trade Policy; at least 85% of contract value must be supplied from India and up to 15% (excluding consultancy) may be procured abroad. The Credit Agreement is effective from December 4, 2008; LCs/disbursements must be opened within 48 months from project completion for project exports and within 72 months from execution for supply contracts. Shipments require GR/SDF declarations. No agency commission is payable under the LOC, though exporters may remit commission from their own resources or EEFC balances after realization. AD Category I banks must inform exporters and implement these directions under FEMA.
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