Line of Credit financing for defence procurement requires majority local sourcing and compliance with export and FEMA remittance rules. A Government-supported Line of Credit finances defence-related exports that are eligible under the Foreign Trade Policy and approved by Exim Bank; contracts must meet a Local Content Requirement-typically 75% supplied from India, with permitted reductions to 65% or further case-by-case reductions agreed before tendering. Shipments must be declared in the Export Declaration Form, no agency commission is payable from the facility, and AD Category I banks must ensure compliance and process permitted commission payments from exporters' own foreign exchange resources under existing remittance rules and FEMA directions.
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 financing for defence procurement requires majority local sourcing and compliance with export and FEMA remittance rules.
A Government-supported Line of Credit finances defence-related exports that are eligible under the Foreign Trade Policy and approved by Exim Bank; contracts must meet a Local Content Requirement-typically 75% supplied from India, with permitted reductions to 65% or further case-by-case reductions agreed before tendering. Shipments must be declared in the Export Declaration Form, no agency commission is payable from the facility, and AD Category I banks must ensure compliance and process permitted commission payments from exporters' own foreign exchange resources under existing remittance rules and FEMA directions.
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