Dear All,
We are executing Hydro Power plant contract in Nepal, order is received against bidding and funding by Joint venture of Govt of Nepal and Govt of India. All payment will be received against supply in INR.
We want confirmation for :-
(1) As a manufacturer , Is Advance Authorisation under Physical Export allowed for Import of Raw material & components for manufacturing of Power Plant equipment ?
(2) If allowed , Documents required for EODC,
In this case , we will fulfill value addition condition but payment is only in INR.
Regards,
BM Goyal
Clarification on Advance Authorization: INR Transactions Allowed for Nepal Hydro Power Project Imports Per RBI Guidelines, Consult Updated Directions. A company involved in a hydro power plant project in Nepal, funded by the governments of Nepal and India, sought clarification on using Advance Authorization for importing raw materials for manufacturing equipment, with payments in INR. Responses confirmed that Advance Authorization is permissible, even with INR transactions, as per RBI guidelines. One reply advised consulting updated RBI Master Directions instead of outdated circulars. The company confirmed that payments would be made in INR by the Nepalese government, allowing import under Advance Authorization without involving free foreign currency. (AI Summary)
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