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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 229] NEW DELHI, WEDNESDAY, OCTOBER 11, 1972/ASVINA 19, 1894

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

MINISTRY OF FOREIGN TRADE

PUBLIC NOTICE

IMPORT TRADE CONTROL

New Delhi, the 11th October 1972

SUBJECT.—Licensing conditions under DM 30 Million Credit for Capital Goods for 1971-72.

No. 145 ITC(PN)/72.—The licensing conditions under DM 30 Million Credit for Capital Goods for 1971-72 as given in the Appendix to this Public Notice are notified for the Information of the trade.

(1713)

APPENDIX

Conditions to be stipulated in the Import Licenced) issued for contracts) to be financed under DM 30 million Credit for Capital Goods for 1071,-72.

I. These conditions will be applicable to imports of goods and services from the Federal Republic of Germany which have been approved by the Capital Goods Committee of the Government of India.

Where approval given by the Capital Goods Committee in an individual case execi^a Rs. 22.6 lakhs (DM 1 million), prior concurrence of the German authorities, to the allocation is necessary which is obtained by the Department of Economic Affairs on the basis of information to be supplied by the Indian importer in the form as at Annexure—II. Till such concurrence from the German authorities is communicated to them, the Licensing authorities shall not issue the import licence in favour of the Indian importer.

2. The goads and services to be financed under the import licence must be- Clippllr'l omy by firms domiciled in the Federal Republic ot Germany Including Land Berhn.

M. The import licence will be issued at the rate ol' exchange of DM I=Rs. 2.2K until further orders.

4. The value of each contract must not be less than Rs. 67.8uii lUAi ,,0,(100) and must no) exceed Rs. 67 i\ lakhs (DM 3,000 00(V>

5. Orders must be placed with suppliers in Federal Republic of Germany after obtaining comparable bids.

10 Payments to West German suppliers under the import licence should be completed by 30th June, 19/4 Suitable provision would theiefore, be made in tha puichase ordeis/contracts regarding completion d shipments by 31st March, 1974 In case if it anticipated that payment cannot be completed by that da'e, lequest for extension with adequate justification must De made to the Department of Economic Affairs (Contiolier of Aid Accounts Jeevan Deep Building, Parliament Street, New elhi), by 3ist March, 1974 Such reques s will be considered on merits

11 (a; I he contracts under the import are tubiect to the approval of the Government of India and the Kreditanstalt fur Wiederaufbau (the German Develop- ment Bank through which the creuit of DM 30 million has been made a\ailablei and should incorporate a clause 1o this efiert

(b) In the case of contracts entered into against an import licence ot a value of upto Rs 22 6 lakhs (DM 1 000 000) the approval of the contracts w41 not be speci- fically communicated, and once trip Government of India have forwarded the contract to the KreJitans'i'+ *ut r^, .„=._, - , p -j ce-> ez if cbc contracts have been approved, the contracts should be trea'ed as provisional until they have been so forwarded

(C> In the case of contracts (or purchase oicters suppported by Suppliers confirma- tion thereto) °ntered mio against an import licence oi a value above Rs 22 6 lakhs (DM 1,000 000) the .approval of Krecbianstalt will be obtained and specifically communicated by the Government oC India to the Indian importers, and until then the contracts should be treated as provisional For this purpose four copies of such contracts should be sent to tb" Ministry of Finance Department of Economic Affairs (WE I Section, Room No 270, North Block) as roon as contracts are signed

12 (a) Goods to be fiaamed under the credit should be tranpoHed by Indian end/or Federal Republic of Germany s vessels only even though shipment may take place from a third-country West European port The following clauses shall be mseited m the supply conlrccts rib well as 111 the letters of credit—

"Shipments have to be made only by West German or Indian Shipping Companies on their own <>i chartered vessels Only m these cases ths freight charges will be paid from loan funds '

Failure to comply witb this pro\i ion will amount to serious contravention of the conditions ot the licence arvi will involve the risk that no payment at all will be made to the suppliers

(b) Where the German suppli"i^ have failed to comply with the relative shipping conditions, the authorised dealers op_mng Lettei 0/ Credit should specifically instruct their correspondents not to make any payment to the beneficiary German suppliers under "reserve" and later send the documents to India on collection basis.

(c) In case the German suppliers aneticipate any difficulty m comp¹ying with the provision for shipment -. car'o hy Indian/Wert German vessels, the services of Messis Schenker and O, IlTj'bur^, should be availed ot

13 (a) Th° German supplier*; should be made responsible for payment of fieigfrt chasges m D Ms to lh° agents of the Tndian and/or Federal Repuhlic of Germanj shipping companies c a m v :! thf rarf) through ,* suitable pioViSion in the supply order as also in the Letter of Credit

1716 THE GAZETTE OF INDIA EXTRAORDINARY LPART I—SEC. 1^

upto 1 million in value) should be sent to the Department of Economic Affair" (WE. I Section, Room No. 270. North Block), Ministry of Finance, New Delhi:

(a) Name and address of the importer;

(b) Number, date and value of the lirwiee (along wifh a cony thereof),

(c) Value in DM of the order placed and accepted by the suppliers, lnrilrating

the payment terms, viz , c.i.f etc.;

(d) Short description of the goods to be importer;

(e) Name and address of the yuppher(s);

(f) A certificate that the orders have been placed on the basis of competitive bidding procedure, or after compel able bid.-, have l.t/en obtained;

(gj Expected date ol completion of deliveries; and (h) A schedule of payments showing probable dates with amounts, on which, payments under the contract will fall due.

If !he above-mentioned report is not received within the period mentioned above i he licence may be deemed to have lapsed, either wholly, oi in uart.

15. (a) The report called for in paia^raPh 14 above .should bo accompanied by a request (in the form as in Annexure II) for the issue of a Letter of Authority by the Ministry of Finance (Department of Economic Affairs) for opening a letter of credit in favour of the Suppliers on any one oi the following five Banks. The request should be accompanied by a Bank Guarantee fiom A Scheduled Bank In India, which is authorised to dsal in foreign exchange (in the form as in Annexure IV).

(I) Tho Bayerische Veremsbank. Munich.

(ii) The Commerzbank A. G., Frankfurt,

(iii) The Deu'sche Bank A. G., Hamburg,

(iv; The Dresdner Bank A. G., Jungfernatief, Hamburg.

(v) Beiliner Handles Gazellschaft Frankfurter Bank.

(b) No Bank Guarantee is required for Public Sector Importers provided the request for the Issue of a Letter of Authority from them is routed through, a nomina- ted Branch of any of the nationalised Banks or the Stale Bank of India and its subsidiaries.

(c) The imporlsis and their bankers should specifically indicate the German Bank selected by them.

(d) The Bank Guarantee where necessaiy, should be for an amount representing the rupee equivalent of the value of D.M. of the proposed Letter of Authority plus 1 per cent of that amount towards incidental and commitment charges and in addi- tion interest and other charges as mentioned in Annexure IV. The prevalin" rate of conversion shall be at the rate indicated in para 3 above i.e. 1 DM— Rs. 2.£(J until further notice. This rate is meant only for purpose of arriving at the value of the guarantee to be issued. For purposes of making rupee deposits into Government decount towards the DM cost of imports 'made under the licence, the nlpee equivalent will have to be worked out in terms of Public Notice No. 15-ITC (PN)/12, dated 28th January, 1972 until further notice. Any change in this regard will be notified as and when necessary.

, ,lfl. If the Bank Guarantee, contemplated in para 15 is found to be In order, the Ministry of Finance (Controller of Aid Accounts, Depa-tment of Economic Affairs) will issue a Yetter of Authority to the German Bank concerned (as in Annexure V), authorising payment upto the specified amount to the German suppliers on the basis of a "special" letter of credit to be opened by the importer's bank in, India. A copy of such authorisation will be sent to Indian Licensee. The original Letter of Authority along with a copy thereof will be sent to the concerned Indian bank authorised

[PART I—SEC. I] .. THE GAZETTE OF INDIA EXTRAORDINARY 1717

17. The "special" Letter of Credit on the German bank should be opened within thirty days from the date of the issue 0} the Letter of Authority, under intimation tu the Controller of Aid Accounts. Department of Economic Affairs, Ministry of Finance, Jeevan Deep Building, Parliament Street, New Delhi, otherwise the Letter of Authority already issued will be deemed to be no longer valid.

18. The payments to the suppliers will be made by the German Bank concerned on collection of requisitp documents and statements. The negotiable set of import documents will be sent by it to the importer's bank in India, alongwith an Advice Note giving details of amongst disbursed and the dates of such disbursements.

19. Within 10 days of the receipt of the documents the Bank in India shall arrange to deposit into Government account as indicated in para 20 below teh rupee equivalent of the amount disbursed to the suppliers calculated at the rate of conver- sion between DM and Rupee prevailing on the date of -payment to the West German suppliers together with 1 per cent thereof towards incidental and commitment charges, along with interest at B per cent per annum for the period from the date of payment to the West Gomin suppliers upto the date on which rupee equivalents are deposited. For this pu-noge the DM payments will have to be conver'ed into Rupees as per Instructions contained in Public Notice No. 15-ITC(PN)/72 dated 28th January, 1972. Any change m this rate of conversion will be notified through Public Notice aa nnd when necessary. It will be the responsibility of the bankers to ensure that the amounts due are correctly deposited into Government account before the import douments are handed over to the importers. The importer should also ensure that the amounts due are eorectly deposited into Government account before taking delivery of the documents from their bankers.

20. The deposit pnvlsn^ed in para 19 may be made in cash either at the Reserve Bank of India, New Delhi, or the State Bank of India, Tis Hadari, Delhi, or the amount may be remitted by menns of a demand draft drawn on and in favour of the Agent, S'ate Bank of India, Tis Hazari, Delhi-6, for credit to Government account as contemplated In Public Notice No. 233-lTC(PN)/68, dated the 24th October. 1968. The Head of Account to be credited is "T-Deposits and Advanes—Part II—Deposits not bearing interest—Direct Payment Procedure" under the detailed head "Deposit for cost of suppplies and equipment obtained under German Capital Goods Credit for 1971-72 (DM 30 million Credit)".

In the treasury challans. the following particulars should invariably be

furnished: —

(a) Ministry of Finance letter of authorily No. and date.

(b) Amount of foreign currency in respect of which rupee deposits are to be

made together with the rate of conversion adopted.

(c) Date of payment to the foreign suppliers. (a; The amount or interest paid and the period for which it has been calculated.

(e) The total amount deposited.

(Interest Is to be calculated for the period from the date of payment to the suppliers upto the date of deposit of rupee equivalents Into Government account.)

21. One copy of the Challan from the Reserve Bank of India, New Delhi Or the State Bank of India, Tii Hazari Delhi-6, or Intimation regarding the submission of Demand Draf* to the State Bank of India. Tis Hazari. Delhi-6 should be sent by the Bank, which has iftued the guarantee, to the Controller of Aid Accounts Deptt. of Economic Atfairs, Ministry of Finance. Jeevan Deep Building, Parliament Street, New Delhi-l along with a forwarding letter giving full details of the Advice Notes received from the concerned nominated German Bank.

22. It will be obligatory for the importers to make the requisite rupee deposits throueh authorised, dealers only and also to set the exchange fontrol copy of the Ueence endorsed by them, as required In Public Notice No. 184-ITC(PN)/68, dated the 30th August. 1968 They should also fill in the requisite "S" % ms as nre"crlh"M__ by the Reserve Bank of IndJn

23. Alter the Imports under a licence are completed and the importers/bankers have deposited Into Government acuounti all the amounts due, details of the imports received and of rupee deposits made should be furnished to the Controller of AM Accounts, Ministry of Finance, Deptt. of Economic Affairs, Economic Aid Accounts Branch, Parliament Street, New Delhi-1 In the proforma prescribed in Annexure VII to enable the Ministry of Finance to verify and arrange for release of the bank guarantees furnished by the Importers wherever necessary.

24. A quarterly report commencing; from the date of issue of the licence should be furnished In duplicate as in Annexure VIII to the Ministry of Finance, Deptt. of Economic Affairs (WE. I Section, Boom No. 270, North Block), New Delhi showing progress of ordering delivery of poods, payments to German suppliers etc. and should be continued till all shipments and payments under the con+rnrt have been completed.

25. For special conditions to be observed while finalising the purchase contract* against the licence Annexure I may be referred to.

ANNEXURE I

Special conditions to be observed while finalising the Purchase Contracts under DM 30 million Credit for Capital Goods:

(i) The conditions for payment contained in contract must conform to customary standards.

(ii) Where the nature of supplies/services covered by the contract/project require a performance fiuaramee, a provision should be; made in the purchase ^contract to the effect that! the last instalment of payment shall not fall due prior "to the end of an, adequate period ('which period shall not be less than six months •of start up of the equipment/project) after completion of the delivery of goods or of the project. Where a Bank Guarantee is furlshed by the suppliers in respect "of last instalment such payment can be made on completion of shipment, suoject to the condition that the Bank Guarantee shall be discharged at the end of an adequate period after delivery of the capital goods or completion of the individual project. An attested coppy of the Bank Guarantee should be appended to eacu copy of the contract to be forwarded to the Ministry of Finance Depaitment of Economic Affairs (WE. I Section Room No. 270, North Block), New Delhi-1.

According to VDMA (German Machine Manufacturer's Association) Regulations. the German supppliers arc required as a general nile to provide a pei torm ant i guarantee to the importer, for a period of six months from the date of start up of the equipment /machine. The licensee is, therefore, advised to insist on such a guarantee at the time of entering into a purchase contract. If a performance guarantee in accordance with the VDMA Regulations is given by tae Geiman suppliers. 100 per cent payment can be made on completion of shipment, 'jvitout the requirement of a Bank Guarantee for the last instalment of payment as specified in the preceding paragraph.

(Iii) In respect of GIF orders, the German supppliers should be asked to take Out insurance with a Federal Republic of Germany insurance compunj.

(iv) Payment if any, arisinn out of the Bank Guarantee referred *o at (ii) above, or arising out of claims on account of insurance referred to in (iii) above shouK tie made to the Kreditanstalt fur Wiederaufbau (Account No. 504 09100 with Deu'sclv- Bundesbank, Frankfurt/Main) directly by the Bank/Insurance Company.

(v) In the case of C&F orders, insurance must be> taken out wl'h an Indinr- Insurance Company. The Indian Insurance Company should give the following undertaking to the importer:

"We shall make remittances in foreign currency to the overseas suppliers for any replacement necessitated by loss or darntige to goods."

(vi) The Indian Importer should take no+e of the following conditions :---

(a) Any material alteration in the contracts pertaining to list of goods, terms or schedule of payments, value of goods, etc. will rcqucr? the prior approval of the Ministry of Finance and German authorised, whether it. results in earlier payments, or in postponemprvt of payment.

ttb) Such alteratton(s) should be promptly Intimated to the Department of Economic Affairs, Ministry of Finance, New Delhi (WE. I Section, P o in No. 270, North Block).

ANNEXUHE II

KiREDITANSTALT FUR WIEDERAUFBAU 8-Frankfurt/Main, Federal Republic of Germany Palmengartenstrasse 5—9.

Application fw Foreign Exchange from GeT-vnan Capital Good* Loan

PKOJECT DATA

(1) Applicant:

fflrm)

fa) Registered Office:

(b) Public or private undertaking:

(c) Business Line:

(d) Partners of Company:

(name of collaborator; kind and duration of aareement).

(2) Type of capital goods to be financed.

(3) Choice of capital goods based on

(a) Competitive bidding procedure: (b) Comparable bids:

(4) Suppliers:

(name and address)

(5) Short description of the wholo projei t

(for which such capital Roods are required).

(6) Cost of the whole project: __

Local Cost Foreign Total::

Exchange:

(a) Plant and property.

(b) Machinery and equipment.

(c) Operating funds.

(d) Miscellaneous

TOTAL : —

(7) Local and foreign financial sources for the whole project:

(8) Letter of Intent, Industrial Licence and Import Licence received?

(9) Annual reports with balance sheets and profits and loss accounts for the last two years, and cash-flow forecast, Jf available:

(10) Capacity:

(a) Average utilisation of existing capacity during the last two yearn; (b) In case of under-utilisation, please give main reasons.

(11) Sales

(last two years):

—exports thereof (percentage gf total sales and values in Rupees).

(12) Market position of the products to be manufactured—

(a) Main domestic and foreign competitors on the Indian market. (b) Main customers and sales regions in India: (c) Main export countries;

(13) Employment—

(a) Present number of employees:

(b) Additional employment after completion of project:

(14) Sources oC raw material supplies:

(15) Time-table for the execution of the project:

I y ^2 1 i^ i -1 fc "i 1 __A ^ ." 1 KA *-^_ AR . L"AH. .. ,-. J."

ANNEXURE III

To

The Cotroller of Aid Accounts, Ministry of Finance, Department of Economic Affairs, Jeevan Deep Building, Parliament Street, NEW DELHI-1.

SUBJECT.—Import of

from West Germany, under West German Capital Goods Credit for 1971-72 (DM 30 million credit):

Sir,

In connection with the import of

from West Germany under the above credit, we furnish ihe following particulars to enable you to issue the Letter of Authority for opening a letter of credit on the BBayerische Verelnsbank, Munich, or Commerzbank A. G. Frankfurt or Deutsche Fank A. G. Hamburg or the Dresdner Bank A. G., Jungfertief, Hambu-g or Berliner Handles Gozellschaft Frankfurter aBnk, ti-Frankfurt A. M. Main:

(a) Name and address of the importer.

(b) Number, date and value of the licence.

(c) Value in DM and date of the order placed and accepted by the suppliers, indicating payment terms viz., (c.i.f. or c&f) (in no case, letter of authority should be applied for f.o.b. value only).

(d) Short description of the goods to be imported.

(e) DM amount for which Letter of Authority is required.

(f) Name and address of the supppliers and the DM amount payable for such suppliers.

(g) Expected date of completion of deliveries.

(h) A schedule shoeing probable dates on which payments under the contract will fall due.

The Letter of Credit will be opened through—

(Name and address of the Indian Scheduled bank, authorised to

deal in foreign exchange)

and the Bank Guarantee No dated for Rs furnished by the above mentioned bank and which has been duly adjudicated by the Collector of Stamps, in acocrdance with Section 31 of the Stamp Act, 1899 is attached.

(Licensee)

Copy forwarded to

Bank for Information.

U J ..

ANNEXURK IV

Guarantee Bond

To

The PreEideiH of India,

In consideration of the President of India (hereinafter called 'the Government') having agreed to arrange for payment in DM for the import of (hereinafter called the importer') against the licence by No. dated issued under the terms and conditions of West German Capital Goods Credit for 1971-72 and in pursuance of import in favour of the importer against the above mentioned agreement, Bank, at the request of the importer We hereby undertake to arrange to deposit the amount of the disbursements made by the

,

(Name of the German Bank nominated by the importer),

plus 1 per cent thereon converted at the prevailing rate of exchange calculated as per instructions issued by the Government ]n the matter from time to time within 10 days of the receipt of advice of payments, for credit to the Government account, in the manner and against to appropriate Heads of Account as indicated by the Government of India under the said credit together with interest thereon at the rate of 0 per cent per annum, from the date of payment to the German supplier to the date of payment of Rupee equivalent for credit to the Government account The negotiable set of import documents received from the German Bank will be released to the importer only aftr the rupee deposits contemplated above have been made.

2. We. the Bank also undertake to indemnify and keep indemnified the Government against any default in payment by the Importer of any sum that may be due and payable from time to time by the importer to the Government at such place and in such manner as the Government may from time to time direct, such sums not exceeding Rs or any part thereof, for the time being due and payable by the importer, together with interest thereupon at the rate of six per cent per annum, from the date of payment to the German supplier. The decision of the Government as to any default in the said payment by the Importer, or on his part and in the said payment by the importer, or on his part and in regard to the amount payable to the Government by us Bank shall be final and binding on us

Bank.

3. We,

Bank further agree that in case ol increase in the value of imports or increase in the value of unfulfilled deliveries under the contract as a result of change in the composite rate of exchange, the amount of this guarantee bond will be adjusted as on the date when the change takes place, In proportion to this change.

4. We

Bank further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said Agreement/contract and that it shall continue to be enforceable till all the dues to the Government under, or by virtue of this guarantee have been fully paid and its claims satisfied or discharged.

5. The guarantee herein contained shall not be affected by any change in the constitution of the importer or the Bank and the Government shall have the fullest liberty without affecting the guarantee to postpone for any time and from time to time any of the powers excrcisable by it against the importer and the Bank shall not be released from its liability under this guarantee bv any exercise of the Government of the liberty with reference to the matters aforesaid or by rason of time bring given to the Importer or any oter forebearance, act or omission on the part of the Government or any indulgence by the Government to the Importer or by any other matter or thing whatsoever which under the Jaw relating to sureties shall, but for this provision have the effect of so releasing the

. ' Bank from, its such liability.

6. We

Bank lastly undertake not to revoke this guarantee during its currency, except with previous consent of IJie- Government, In writing.

7. Our liability under this guarantee is restricted to Rs

(plus interest and other charges, not expected to exceed 1 per cent of th guarantee amount) and it Will remain in force till the day of * (month of 197 . Unless claims under the guarantee are made in writing within (j months of this date and unless a suit or action to enforce these claims is commenced within another six months thereafter i.e. upto , all Government rights under this guarantee shall be forfeited and we shall be relieved and discharged from all liability thereunder.

Dated t h e . . .. , ,.. .day of

for Bank:

Accepted for and on behalf of the President of India by Shrt CName and designation)

Signature

Signature

*This date shall be arrived at by adding one month to the date upto which the Letter of Authority is required to be kept valid.

NOTE.—The value of the stamped paper in which this guarantee is to be executed is to be adjudicated by the Collector of Stamps under Section 31 of the IndJaa. Stamps Act.

I9ftfcr I—SEC 1] . THE GAZETTE OF INDIA EXTRAORDINARY 1725

ANNIXUWH V

Letter of Authority No

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Economic Affairs)

New Delhi, the 197

To

(Name and address of the German Bank)

Dtar Sirs, SUBJECT.—Procedure for payments to German supppliers through the Letter of Credit Cover Deposit Account with you under Capital Goods Credit for 1971-72 (AL 710 ) from the Federal Republic of Germany,

under the letter of credit to be opened for covering the import of againsL In accordance with the terms and conditions of the above procedure, agreed upon through letter Nos dated the addressed to your Bank by the Chief Accounting Officer, High Commission of India, London, we hereby authorise you to pay an amount of DM to toy contract entered into by

2. After each payment, the shipping and other documents (negotiable; may be forwarded direct to.. ., and a payment advice alongwlth one set of documents (non-negotiable) (sent to the undersigned for information.

with you by the

3. Your banking charges under the above letter of credit will be settled-directly by remittance from India.

4. This authority will remain valid upto 197 .

Yours faithfully,

Account Office!

ANNEXUHE VI

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Economic Affairs)

New Delhi, the

To

SUBJECT.—Imports from West Germany—DM 30 Million Credit for Capital Goods—

Issue of Lttter of Authority for opening Letter Of Credit—Import Licence

No.

Dear Sirs,

With reference to letter No. —.—— dated the — — from M/s —• —in which they have requested permission for opening a letter of credit through your Bank: under the DM 30 million Credit for Capital Goods, I am enclosing the Department of Economic Affairs Letter of Authority No —— dated the issued to the — <• —•— authorising them (with one spare copy) to arrange payments upto DM . to the Wi t German suppliers. This Letter of Authority should be sent by you tj the „„.—.—— alongwith the Letter of Credit opened by you,

2. You are hereby authorised to open the Letter of Credit for an amount not exceeding DM ——•—-—— within a period of thirty days from the date of this letter under intimation to this Department. In terms of para 10 Section VII of Exchange Control Manual, you are required to ensure that the date of expiry of the Letter of Credit Is not later than 30 days after the final date lor shipment as stated in Vie re ative import licence or the date indicated in the Letter of Authority whichever Is earlier. Before Opening the Letter of Credit, it may please be ensured that the importer is in possession ot a valid Import Licence. The LETTER OF CREDIT TO BE OPENED MUST CONTAIN A CLAUSE TO THE EFFECT THAT THE SHIPMENT IS TO BE EFFECTED IN AN INDIAN/WEST GERMAN VESSEL and that the supplier should be made responsible for payment of freight charges in DM.

.'•!. You are requested to arrange to deposit the rupee equivalent Of the DM payments to ihe German suppliers together with 1 per cent thereof towards incidental and commitment charges in terms of the Guarantee furnishes l)y you, within 10 days of the receipt of documents from the — — — The rupee equivalent of amounts disbursed to the suppliers will have to be calculated by applying the prevailing rate of conversion as instructed in Public Notice No. 15-TTC(PN)/72 dated 28th January 1972 until further orders. This rate is subject to revision if and when the IMF parity rate of exchange undergoes change. Interest at the rate of 6 per cent p.a. for the period between the date of payment to the supplier and the date on which the rupee equivalents are deposited is also required to be deposited Into Government account, It will be your responsibility to arrange for the deposit of thete amounts and to ensure that the deposits so made are correct in all respects, before the import documents are handed over to the importer.

4. Th"se amounts should be deposited either with the Reserve Bank of India, New Delhi or the State Bank of India, Tis Hazari, Delhi or remitted by means of a demand draft obtained by you from any Branch of the State Bank of India or its subsidiaries (Drawer) drawn on and made payable to the State Bank of India, Tis Hazari Branch, Delhi-fi (Drawee & Payee). In this connection, your attention is also Invited to the provisions of the Public Notice No. 233-ITC(PN)/68. dated 24^h October, 1060. The head of account to be credited is "T-Deposits & Advances- Pt. II—Deposits not bearing interest—Civil Deposits—Deposlsts for purchases abroad under Direct Payment Procedure" under the detailed head "Deposit for cost of nupplies and equipment obtained under DM 30 million Credit for Capital Goods fi Dm West Germany."

5 One copy of the challan in original, in case where the rupee equivalent' are credited in cash at the [Reserve Bank of India, New Delhi or the State Bank of India Delhi should be sent by you to the adddress given below alongwith a forwarding letter giving full details of the Advice Notes received from the nominated German Bank

The Controller of Aid Accounts Ministry of Finance, Department of Economic Alfairs Jeevan Deep Bldg Parliament Street, New Delhi

In case¹; where the rupee eauivalents are remitted by means of demand drafts as laid down in the Public Notice dated the 24th October 1968 mentioned above, intimations thereof should be sent to the address given above In all rases, full particulars of the rupee equivalents deposited alongwith" the amount of interest paid and the period for which interest has been calculated should be furnished to this Department (Period for which Interest has been calculated and amount of interest paid should be clearly indicated)

6 A payment clause to the effect that the insurance claim, if any, received from the West German Insurance Company and/or claims arising out of Bank Guarantee relative to performance guarantee should be remitted bv the Insurance- Company and/or the Bank giving the guarantee in DM direct to Kteditanstalt (Account No 504 09100 with Deutsche Bundes Bank, Frankfurt/Main) under advice to the Controller of Aid Accounts Ministry of Finance Department of "Economic Affairs, New Delhi may be inserted in the Letter of Credit to bo opened by you

7 The receipt of this letter may T lease be acknowledged

Yours faithfully

Accounts Officer

Copy forwarded to —

M/s

for Information, with reference to their letter quoted above A copy of the Letter of Authority is also enclosed In case the German Suppliers anticipate any difflculy In complying with the transport of goods by Indian and/or German vessels,iteh services of M/s Schenkar and company may be availed of.

Accounts Officer

ANNEXUHE VII

Prof or ma

1. Name and full address of the importer/licensee on whose behalf the Bank •Guarantee was furnished.

2. The import licence number and date and value.

3. Number, data and amount of the guarantee furnished.

4. Particulars of the Letter of Authority, for opening Letter of Credit obtained irom ihe Ministry of Finance.

(a) Number and date of the Letter of Authority. (b) Amount of the Letter of Authority (In DM).

5. Particulars of Imports effected and rupee deposits made.

(a) Name of supplier(s), (b) Amount (in DM) actually paid to the suppller(s) mentioned at (a) above.

(<-) Date of payment to the supplier by the nominated German Bank. (d) Amount of rupee doposits: — (i) Rupee equivalent of DM amount paid to the supplier @ 1 DM=.

(ii) Interest paid. (iil) Period for which the interest has been calculated from

to

(lv) Total deposit made, (v) Date and place of deposit, (vi) Number and date of the Treasury Challan (to be enclosed).

If the Treasury Challan has already been sent, reference to the letter number and date with which it was sent may be quoted,

(vii) If the rupee deposit mentioned in (d)(iv) above was made by means of Demand draft the number, date and amount of the draft and particulars of your letter with which it was sent to the Accountant General. Central Revenues, to be indicated.

6. Amount utilised and balance untilised (in DM) against each Letter of Authority.

7. A certificate that the balance Indicated In 6 above, has not ¥>"en utilised and no shipment has been made thereof, and the same may be treated as lapsed.

(Authorised "I"naturei>

I

ANNEXDES VIH

PROfQRMA

J

Name of Cempany

Value

Category of Industry

Address of Cosnpany

Value Of I-C.

Private Sector/ Public Sector

Amount of Allo- cation (RsO

of Contract (DM)

Amount paid against theL-C (DM,

No date and value of IX. (Rs.)

i

2

6

3

7

4

S

9

b

Note—In respect of allocation exceeding Rs. 22J& l^hs(DMj Million), the licence will be required to submit in addi'ion half yearly

report on Special event, it any, on the progress ol the project and on adherence the time — schedule for completion of project. Annual Reports ( 2 copUs J will re also requrcd for at least three years until completion of the project.

I

M.M.SE*;,

,

Chief ControQer of Imports & Exports.

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