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of <h1>Exim Bank Grants $416.39M Line of Credit to Sri Lanka for Railway Projects, Sourcing 85% from India.</h1> Exim Bank has established a Line of Credit (LOC) of USD 416.39 million with the Government of the Democratic Socialist Republic of Sri Lanka. This agreement, effective from January 24, 2011, finances goods and services, including consultancy, for railway projects in Sri Lanka. At least 85% of these goods and services must be sourced from India, while the remainder can be procured internationally. The LOC stipulates specific timelines for opening Letters of Credit and disbursement. No agency commission is payable under this LOC, but exporters may use their resources for commission payments. The circular is issued under FEMA regulations.
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