Saturday, January 16, 2016
Export of Goods and Services – Project Exports
Export of goods or services on deferred payment terms or in execution of a turnkey project or a civil construction contract requires prior approval of the approving authority.
The structure of Working Group (consisting of representatives from Exim Bank, ECGC & RBI), which was earlier permitted to consider such projects for contracts exceeding USD 100 Million has been dispensed with.
AD banks / Exim Bank have now been permitted to consider awarding post-award approvals without any limit and permit subsequent changes in the terms of approval.
As it has been advised by the Government of India that
i) The ‘OCCI’ has been renamed as ‘Project Export Promotion Council’ (PEPC) and
ii) Civil construction contracts may include turnkey engineering contracts, process and engineering consultancy services and Project construction items (excluding steel & Cement) along with civil construction contracts,
It has been decided to make the necessary changes in Memorandum of Instructions on Project and Service Exports (PEM) accordingly.
Based on RBI Circular dt 14/01/16. Please visit www.rbi.org.in for any further clarification if required….. Poppy