Exim Bank’s Line of Credit of USD 25 Million to Vneshtorgbank, Russia

A.P. (DIR Series) (2002-2003) Circular No. 80, dated 18-2-2003, issued by EXCHANGE CONTROL DEPARTMENT, RBI

Export-Import Bank of India (Exim Bank) has concluded an agreement with Vneshtorgbank, Russia (Bank for Foreign Trade, Russia) on July 3, 2002 making available to the latter, a line of credit (LOC) up to an aggregate sum of USD 25 million (US Dollar Twenty five Million only). The credit has become effective from November 14, 2002 and is available for financing exports from India of eligible goods (listed in the Annexure) and related services to buyers in the borrower’s country i.e. Russian Federation. The eligible goods will include initial spares, drawings and designs, together with services related thereto.

2. The terminal dates for opening letters of credit and utilisation of credit are November 13, 2003 and May 13, 2004, respectively.

3. Shipments under the credit will have to be declared on GR/SDF Forms as usual.

4. No agency commission shall be payable in respect of exports financed under the above line of credit. However, Reserve Bank may consider on merit, requests for payment of commission upto a maximum extent of 5 per cent of the f.o.b./c & f/c.i.f value in respect of goods specified in the Annexure and which require after-sales service. In such cases, commission will have to be paid in the Russian Federation only by deduction from the invoice of the relevant shipment and the reimbursable amount by the Exim Bank to the negotiating bank will be 90 per cent of the f.o.b./c & f/c.i.f. value minus the commission paid. Approval for payment of commission should be obtained before the relevant shipment is effected.

5. Authorised Dealers may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain further details of the Line of Credit from Exim Bank’s office or their web-site.

6. The directions contained in this circular have been issued under section 10(4) and section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

   ANNEXURE

List of Eligible Goods for finance out of the Credit

PART‘A’

1. Air compressors

2. Air conditioning, heating, cooling, fume extraction, dust collection, humidification and ventilation equipment for industrial use including blowers and exhaust fans

3. Alcohol and brewery plant

4. Aluminium plant and equipment

5. Asbestos cement machinery

6. Cement machinery

7. Cinematographic equipment for motion picture and television studios

8. Chemical and pharmaceutical plant and machinery

9. Cigarette making machinery

10. Coffee processing machinery

11. Coke oven plant and equipment

12. Coke oven refractories

13. Control and Process Instruments including X-Ray equipment for Industrial Applications

14. Copper Ore concentration machinery

15. Dairy equipment and animal feed plant

16. Earth moving equipment like crawler tractors, shovels, excavators, loaders, dumpers etc.

17. Edible Oil Mill machinery and oil expellers.

18. Electric motors and pumps

19. Electronic Data Processing equipment

20. Fertilizer plant and equipment

21. Flour, rice and dal mill machinery

22. Food processing plant

23. Foundry equipment including mould making machinery, Sand and Shot blasting equipment

24. Freight containers

25. Garage equipment

26. Gas and air separation plants

27. Glass and Ceramic machinery

28. Heat Exchangers

29. Integrated Steel Plants (complete or in parts), mini steel plants (electric arc and reduction furnaces). Re-heating and heat treatment furnaces, Rolling Mills and other finishing lines for ferrous and non-ferrous metals

30. Ice-making machinery

31. Industrial boilers

32. Industrial furnaces

33. Industrial switchboards, Control panels, circuit breakers, air break switches

34. Jute machinery

35. Leather tanning and processing machinery

36. Machine tools

37. Machinery for manufacturing air conditioners, bicycles, corks, electrical goods, enamel-ware, hard board, metal containers, radios, razor blades, refractories and bricks, sewing machines, shoes, steel furniture, wire-ropes and cables etc.

38. Machinery for manufacturing any product figuring in Part B of this List, not specified separately in this Part

39. Material handling equipment like fork lifts, electric lifts, cranes, hoists etc. and conveyor systems

40. Metal working machinery

41. Mining machinery

42. Motor vehicles and chassis, including three-wheelers

43. Oil drilling rigs

44. Oil refinery equipment

45. Packaging and weighing machinery

46. Pile foundation machinery

47. Plastic machinery

48. Power generation, transmission and distribution equipment including boilers, generators, transformers, switchgears, transmission line towers, conductors, cables, sub-station equipment and protective equipment

49. Power line carrier communication equipment

50. Power station structures, hydraulic structures like penstocks, gates and gearings, sub-station structures

51. Pressure vessels

52. Printing and book-binding machinery

53. Pulp and Paper Mill machinery

54. Railway electrification equipment and structures and railway signalling equipment

55. Railway rolling stock including locomotives, wagons, coaches and trolleys

56. Refractories for use in hot blast stores, hot blast main and bustle pipes and blast furnace proper

57. Rubber machinery

58. Road and construction equipment including road rollers, tar boilers, continuous batch plants, stone crushers, asphalt mixers, concrete mixers and vibrators

59. Ships, boats, trawlers, steamers, launches, barges

60. Solvent extraction machinery

61. Spraying equipment

62. Steam, diesel and petrol engines

63. Steel fabrication for bridges, factories etc.

64. Steel rails and railway track equipment including sleepers, fishplates, points and crossings

65. Steel shuttering and scaffolding materials

66. Steel tanks

67. Sugar (including Khandsari) machinery

68. Telecommunication and signalling equipment

69. Textile machinery

70. Tractors and Trailers

71. Vending machines

72. Water supply equipment including pumping plant, large diameter fabricated steel pipes, C.I. spun pipes and storage tanks, water treatment and sewage treatment plant

73. Weigh bridges

74. Welding machinery

75. Wood working machinery

PART‘B’

1. Agricultural implements

2. Auto parts

3. Bicycles, motorcycles, scooters, mopeds and parts

4. Construction materials including sanitary ware, tiles and precast cement products, false ceiling, flooring materials, pipes, decorative laminates, fittings, electricals and steel/aluminium doors and windows, provided they are exported as separate items and not as items forming part of civil construction/turnkey projects

5. Agricultural chemicals and industrial chemicals

6. Pressure cookers, watches and clocks, knitting/sewing machines, vacuum flasks, cutlery, plastic moulded luggage

7. Domestic electric appliances

8. Drugs and Pharmaceuticals

9. Electrical equipment including low tension insulators, batteries and accumulators, parts of electrical machinery and lamps, fuses and electrodes for industrial application

10. Electronic components

11. Electronic goods including radios, TV, public address systems, record players, tape recorders

12. Fibreglass, PVC and plastics based products including pipes and tubes, tyre cord

13. Ferrous/non-ferrous castings, forgings, stampings, extrusions and rolled products

14. Ferrous/non-ferrous pipes, tubes, sheets, strips, foils, rods, wires, wire ropes

15. Heating and cooling equipment including air conditioners, refrigerators, water coolers

16. Industrial rubber products including tyres and tubes, cots and aprons, conveyor belts, rubber rollers, hose pipes

17. Instruments for measurement, scientific survey and for surgical applications

18. Industrial fasteners, bearings, valves, gears and gaskets

19. X-ray and other electro-medical and other hospital equipments

20. Office equipments including typewriters, calculators, duplicators, teleprinters

21. Metal and plastic furniture

22. Hand tools, cutting tools, grinding wheels, moulds dies

23. Gas cylinders, fire fighting equipment, photographic equipment, helmets, including fibreglass helmets

24. Any item not included in Part ‘B’ above may be financed by agreement between Exim Bank and the Borrower