Export of Goods and Services – Project Exports

RBI/2014–15/534
A.P.(DIR Series) Cir­cu­lar No.93 April 1, 2015

Atten­tion of Autho­rised Deal­ers is invit­ed to A. P. (DIR Series) Cir­cu­lar No. 11 dat­ed July 22, 2014 in terms of which AD banks / Exim Bank have been per­mit­ted to con­sid­er accord­ing post-award approvals with­out any mon­e­tary lim­it and per­mit sub­se­quent changes in the terms of post award approval with­in the rel­e­vant FEMA guide­lines / reg­u­la­tions. Fur­ther, in terms of para B. 11 (i) of the revised Mem­o­ran­dum of instruc­tions on Project and Ser­vice exports, Exim Bank in par­tic­i­pa­tion with com­mer­cial banks in India may extend Buyer’s cred­it upto the lim­it of USD 20 mil­lion to for­eign buy­ers in con­nec­tion with export of goods on deferred pay­ment terms and turn key projects from India.

2. With a view to fur­ther lib­er­al­is­ing the pro­ce­dure and as the Work­ing Group struc­ture has been dis­man­tled, it has been decid­ed to with­draw the lim­it of USD 20 mil­lion for Buyer’s cred­it which may be extend­ed to for­eign buy­ers in con­nec­tion with export of goods on deferred pay­ment terms and turn key projects from India.

1. Mem­o­ran­dum of Instruc­tions on Project and Ser­vice Exports (PEM) has been revised accordingly.

2. Autho­rised Deal­ers may bring the revised guide­lines in the Mem­o­ran­dum to the notice of their con­stituents concerned.

5. The direc­tions con­tained in this cir­cu­lar have been issued under sec­tions 10(4) and 11(1) of the For­eign Exchange Man­age­ment Act (FEMA), 1999 (42 of 1999) and are with­out prej­u­dice to per­mis­sions / approvals, if any, required under any oth­er law.

Yours faith­ful­ly,

(A.K.Pandey)
Chief Gen­er­al Manager