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REGISTERED No. D.(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 219] NEW DELHI, THURSDAY, DECEMBER 9, 1976/AGRAHAYANA 18,1898

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

as a separate compilation

MINISTRY OF COMMERCE

PUBLIC NOTICE

IMPORT TRADE CONTROL New Delhi, the 9th December 1976

SUBJECT.—Terms and conditions applicable to import licences issued under the

West German Capital Goods Credit of DM 25 million for 1976-77.

No. 124-ITC(PN)/76— The terms and conditions governing the issuance of import licences under the West German Capital Goods credit of 25 million for 1976-77 as given in Appendix to this Public Notice are notified for information.

APPENDIX

CONDITIONS ATTACHED TO IMPORT LICENCES ISSUED UNDER THE WEST GERMAN CAPITAL GOODS CREDIT OF DM 25 MILLION FOR 1976-77.

Section I—General Conditions 1. (I), These conditions will apply to such cases of import by public and private sector undertakings as have been specifically approved by the Capital Goods Com- mittee of the Government of India for financing under the West German Capital Goods of DM 25 million for 1976-77.

1 (ii) Where the value of allocation approved by the Capital Goods Committee exceeds the rupee equivalent of DM 1 million the rupee equivalent being deter- mined at the exchange rate notified by the Department of Revenue (Customs)

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under Section 15 of the Customs Act, 1962], the prior concurrence of the West German authorities (Kreditanstalt fur Wlderaufbau (KFW) to the allocation is obligatory, and this would be obtained by the Department of Economic Affairs on the basis of the project data to be supplied by the Indian importer in the form at Annexure—I Till such concurrence from the West German authorities is com- municated to the licensing authorities (CCI&E) by the Department of Economic Affairs, no import licence can be issued in favour of the Indian importer.

l(iii). The licence shall bear the superscription "DM 25 million West German Capital Goods Credit for 1976-77". The licence code for thes first.and^corid suffix will be "S/GN". These will also be repeated in the CCI&E'S letter forward- ing the import licence.

f °® ^ "t l(iv). No remittance of foreign exchange will be vermitted against t^ import licence, except bank charges which may be remitted through normal.banking channel. Payments towards Indian agent's commission if any, s h^ ,d in Indian rupees to the agents in India. Such payments however will foim part of the licence value and will therefore be charged to the licence.

l(v) The goods and related services to be procured under this import licence can be 'imported from the Federal Republic of Germany including the Land Berlin or any other country. The overseas supplier is, therefore, free to procure material, etc. from a third country, if found necessary, for the execution of the contract.

1 (vi). The minimum value for which an import licence can be issued under this Credit is the rupee equivalent of DM 30,000 [rupee equivalent being calculated at the rate of exchange notified by the Department of Revenue (Customs)] which rate of exchange should be indicated in the import licence as Der para 1 of the Public Notice No. 78-ITC(PlN;/74, dated 6th June, 1974 issued by the Chief Controller of Imports and Exports.

l(vii). The import licence will be issued on CIF basis with an initial validity of 24 months or the last date of shipment as indicated in para 2 (xii) below, which ever is less subject however to the condition that the import licence will have a minimum validity of 12 months from the date of issue.

l(viii). Firm orders (meaning thereby Purchase Order by the Indian Licensee on the foreign supplier supported by order confirmation from the latter or pur- chase contract duly signed by both thc Indian importer and the foreign supplier) must be finalised within a period of 4 months from the date of issue of the import licence [u?da Para 1 (ix) below]. Orders on Indian Agents of overseas suppliers and/or order confirmation by such Indian Agents are not acceptable.

ul'-i X )iJf f l rm T³^' a s, explained in Para l(viii) above, cannot be finalised (

within the time limit of four months, the licensee should submit to the Chief Controller of Imports and Exports (CCI&E), or other licensing authorities af the case may be, a proposal seeking an extension in the. ordering period aior?E With justification and explanation as lo why ordering could not be completed within the initial validity period. Such requests for extension in the ordering period will be considered On merits by the licensing authorities who may grant extension upto a further maximum period of 4 months. If however extension •s sought beyond 8 months from the date of issue of the Import licence such proposals will invariably be referred by the licensing authorities to the Depart- ment of Economic Affairs (WE—I Section), Ministry of Finance North Block New Delhi, who will consider such extension on the merits of each case and con- vey its decision, to the licensing authorities for communication to the licensee Only on production by the licensee of such letters of the licensing authorities sanctioning extension, will the authorised dealers in foreign exchange and depart- mental authorities permit the facility of bank guarantee, letters of auhnrity for the establishment of letter of credit, acceptance of deposits of rupee equivalent, etc.

l ( x ). It will be in the interest of the licensee to ensure that firm order is finalised within the stipulated time limit for ordering. In cases where this cannot be done the licensee should, of his own approach the licensing authorlles for a suitable extension in the period of ordering. The authorised dealers in foreign exchange/departmental authorities concerned will exercise necessarv checks to ensure that the licensee complies with the requirements of placing orders within 4 months.

Kxi). In cases where firm orders have not been placed for the full value of the licence during the initial validity, period of the licence, it will be necessary for the licensee to obtain the permission of the licensing authorities in the manner

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as explained in para I(ix) above before placing orders against such unordered balance value of the licence.

Section n.—Special points to be kept In view while concluding purchase contracts.

2(i). The contract price should invariably be expressed in the currency of the country in which the foreign supplier is situated. The contract price should be firm and final and no provision for any escalation would be permitted. If any commission, is payable to an Indian Agent of the foreign supplier it must be dis- tinctly shown in the contract as an item of cost payable in Indian Rupees in India and the net amount payable to the foreign supplier in foreign currency should therefore be shown exclusive of such Indian Agent's commission, For the purpose of calculating the value in foreign exchange upto which purchase orders can be placed against tho import licence, the value of the import licence should be computed at the rate of exchange notified by the Department of Reve- nue (Customs) under Section 15 of the Customs Act 1962 and indicated in the import licence as per para 2 of the Public Notice No. 78-ITC(PN)/74 dated 6th June, 1974 issued by the Chief Controller of Imports and Exports.

2(ii). Supply orders should be placed either on CIF or on C&.F basis in the

case of private sector importers. In the case of public sector importer® the orders

tihoald be placpd only on C&F basis.

2(iii). It should clearly be understood that the purchase contracts under the import licence should be placed after obtaining comparable bids from overseas suppliers. In this connection, it may be noted that the Indian importer is free to import from any country of his choice, as approved by the Capital Goods Com- mittee of the Government of India.

2(iv). Minimum value of eligible contract—Provided that the aggregate value of purchase contracts under an import licence is not less than DM 30,000 (in the case of purchases made wholly from the Federal Republic of Germany) or equivalent to DM 30,000 (in the case of purchases made wholly or partly from countries other than the Federal Republic of Germany), it is permissible for the importer to enter into individual purchase contracts for a value of lesn than uvu 30,000 or equivalent of DM 30,000, This is however subject to the condition pres- cribed In para 2(xiii) below in respect of purchase contracts under an import licence the value of which does not exceed the rupee eauivalent of DM 1 million.

2(v). The purchase contract under the import licence Is required to be speci- fically approved by the Government of India and the Kreditanstalt fur Wiederau- fbau (KFW) (the West German Bank Development Loan Corporation through which the West German Capital Goods Credit of DM 25 million has been made available) and therefore should incorporate a specific clause to this effect in the purchase contract.

(b) In the case of contracts entered into against an import licence whose VBlue is the rupee equivalent of DM 1 million or less (calculated at thp exchange rate of notified by the Department of Revenue (Customs), the approval of the contracts will not be specifically intimated to the Importer. Once the Ministry of Finance, Department of Economic Affairs have forwarded thp contract docu- ments t0 the KFW under intimation to the importer, he may Droceed as if the contract has been approved by the KFW also unless the KFW raises any objection subsequently in which event the importer will be informed suitably.

(c) In the case of contracts entered Into against an import licence whose value is for an amount exceeding the rupee eauivalent of DM 1 million (caluculated at the rate of exchange notified bv fhe Department of Revenue (Customs) the approval of the KFW will be first obtained by the Government of India, Ministry of finance, Department of Economic Affairs and specifically communicated tp the Indian importer and until then the contracts should be treated as provisional. For this purpose 3 copies of the purchase contract alongwith a certificate (in triplicate) that, order have been placed after obtaining comparable bidq from foreign suppliers are required to be sent bv the Indian importer to the Ministry of Finance, Department of Economic Affairs (WE-I Section) Room No. 270. North Block) within a fortnight from the date of conclusion of the purchase contract.

2(vl). Where contract is placed on CIF basis and accordingly the foreign sup- plier takes out the marine insurance, the foreign supplier should arrange to take out insurance in a freely convertible currency and obtain an undertaking from

the insurance company concerned that payment if any arising out of insurance claims, would be made directly in DM to KFW (Ac/No. 50409100 with Deutsche Bundesbank, Frankfurt/Main).

2(vii). Where contracts are placed on C&F basis, the marine insurance should be taken out with an Indian insurance company and the premium should accord- ingly be paid in Indian Rupees. However, the Indian importer should obtain the foUowiriff undertakings from the Indian insurance company and furnish it (in triplate) to the Department of Economic Affairs, Ministry of Finance (WE-I Section) alongwith the contract documents: —

"We shall make remittance in foreign currency to the overseas suppliers for any replacement that may be necessitated by loss or damage to goods."

2(viii). As the contracts are required to be placed either on GIF basis or on C&F basis as per para 2(ii) .bove, foreign supplies should be made responsi- ble to pay the freight charges In foreign currency, even where Indian ships are used. In no circumstances the freight charges should be paid in Indian rupees.

2(ix). Payments to foreign suppliers against the licence will b& made by means

°f a 'Special' letter of Credit, as explained in Section HI below and no remittance

facility will be permitted against the import licence for this purpose.

2(x). As regards transportation of goods purchased against the import licence, the party responsible for arranging shipment of the goods under the purchase contract' will be free to choose the carriers- Shipment can be made from the country in which suppliers are created or from a third country.

2(xi). For contracts whose value exceeds DM 1 million in the case of pur- chases from the Federal Republic of Germany Including Land Berlin or, in the case of purchases from other countries, for contracts the DM equivalent of whose value exceeds DM 1 million, the purchase contracts should provide for furnishing of performance guarantee by the foreign supplier in regard to the performance of the goods supplied, (in the case of other contracts, namely for contracts whose value is less than the limit indicated above, the Indian importer is free to decide the question whether or not he needs a performance guarantee from the foreign supplier). The form of the performance guarantee can however be settled by the Indian Importer with the foreign supplier by mutual consent. It should how- ever, be ensured by the Indian importer that payments, if any, due to him from the foreign supplier arising from the performance guarantee stipulations should be made direct to Kreditanstalt fur Wiederaufbau (Account No, 50409100 with Deutsche Bundesbank, Frankfurt/Main).

2(xii). Payments to the foreign suppliers under the import licence should be completed by the 31-12-1979. A suitable provision should, therefore, be made in the purchase orders/contracts to ensure completion of shipments and payments by 31-12-197&. In case it is anticipated that payments cannot be completed by that date, a request for extension with adequate justification must be made to the Department of Economic Affairs (Controller of Aid Accounts and Audit, U.C.O Bank Building, Parliament Street, New Delhi), by 31-12-77. Such requests will be considered on merits.

2(x'ii). in the case of import licences where value does not exceed the rupee eauivalent of DM 1 million the purchase contracts are required to be submitted by the Indian importer to the Department of economic Affairs in a .single lot. Submission of contracts piecemeal will not be entertained. In this connection the minimum value for eligible contracts explained in para 2(iv) above should be kept in view.

Section HI—Payment to foreign suppliers—"Special" Letter of Credit Procedure

30) Request for issue of letter of authority. —Within a fortnight of conclusion

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conveying the approval of KFW to the contracts placed against an import licence whose value exceed the rupee equivalent of DM 1 million (at the rate of exchange notified by the Department of Revenue (Customs), as the case may be, the licensee should submit the following documents to the Ministry of Finance Depart- ment of Economic Affairs (WE-1 Section, North Block) New Delhi with the re- quest for the issue of Letter of Authority for openin£ an irrevocable letter of credit in favour of the foreign supplier concerned.

(a) In respect of contracts against import licence whose value does not exceed the rupee equivalent of DM 1 million.

(i) Three copies of the Purchase Order; and three copies of the foreign supplier's confirmation thereto, dulv signed by the Importer and Sup- pliers respectively or photo copies thereof. Attested copies or the orders placed on the Indian Agents and confirmed by such agents are not acceptable,

OR

Three copies of the purchase contract duly signed by both the Indian importer and the foreign supplier or photo copies, thereof. Attested copies of the orders placed on the Indian Agents and confirmed by such Agents are not acceptable.

(ii) A request (In triplicate) for issue of Letter of Authority In the form prescribed in Annexure-II.

(iii) A Bank Guarantee in the prescribed form, as in Annexure-III from an Indian Bank authorised to deal in foreign exchange (not applicable in the case of Public Sector imports).

(iv) In the case of C&F contract, three copies of the undertaking from the Indian insurance company vide para 2(vli) above.

(v) A certificate in triplicate vide para 2(iii) above that orders have been placed after obtaining comparable bids from foreign supplier; and

(vi) A certificate that no further contracts will be placed under licence vide para 2(xlii) above,

(b) In respect of contracts against import licence whose valMe exceeds the rupee equivalent of DM 1 million.—In addition to the contract documents fur- nished earlier (in respect of which KFW's approval will have been obtained by the Ministry of Finance, Department of Economic Affairs, iHde para 2(v) (c) above, the following documents should be submitted: —

(i) A request (in duplicate) for the issue of letter of Authority in the form prescribed in Annexure-II.

(ii) A Bank Guarantee in the prescribed form as in Annexure-III from an Indian Bank authorised to deal in foreign exchange, (not applicable in the case of Public Sector Imports); and

(iii) In the case of C&F contract, three copies of the undertaking from the Indian Insurance Company vide para 2(vii) above.

3(ii). It Is clarified that in the case of public sector imports, no bank guarantee is required.

3(iii). Opening of Letter of Credit.—Letter of Credit can be opened on the strength of the Letter of Authority on any one of the following 7 commercial banks in West Germany designated for this purpose: —

(i) The Bayerische Vereir.sbank, Munich. (Ii) The Commerzbank A.G. Frankfurt, (iii) The Deutsche Bank A.G. Hamburg;, (lv) The Dresdner Bank A.G. Jungfernstief, Hamburg, (v) Berliner Handles Gasell-schaft Frankfurter Bank, (vl) State Bank of India, Frankfurt, (vli) Vereina-Und-West Bank, Hamburg.

The Importers (both In the public sector and private sectors) and their bankers should specifically indicate the Bank selected by them Out of the seven bank* mentioned In paral 3(111) above.

3(Iv). Failure to make the request for issue of Letter of authlorlty within a fortnight (a) from the date of placement of firm orders in the case ot£ orders against an import licence whose value is the rupee equivalent of DM 1 million or less or (b) from the date of communication of approval of contract by the Ministry of Finance, Department of Economic Aftalrs, in the case of contracts against an Import licence whose value exceeds the rupee equivalent of DM 1 million, as the case may be, may be deemed to be a violation of the Import Trade Control Regulations.

3(v). Bank Guarantee—amount for which it should be executed.—The Bank Guarantee, where necessary, should be for an amount representing the rupee equivalent of the amount In foreign exchange for which the Letter of Authority is sought plus 1 per cent of that amount towards Incidental and commitment charges and in addition Interest and other charges as mentioned in Annexure V. The prevailing rate of conversion shall be at the exchange rate notified by the Department of Revenue (Customs) under Section 15 of Customs Act, 1962 and indicated in the import licence as per para 2 of Public Notice No. 78-ITC(PN)/74, dated 6th June, 1974. This rate is meant only for purpose o/ arriving at the value of bank guarantee to be furnished by the Importer. For purposes of making rupee deposits into Government account towards the foreign exchange cost of imports made under the licence the rupee equivalent will have to be worked out at the composite rate for the DM. amounts spent by the designated commercial Banks in West Germany in arranging payments to the foreign supplier i.e. either in DM If the foreign supplier is situated in West Germany {including Land Berlin) or the DM amount for effecting payment in the currency of any other country in which the foreign supplier is located, in terms of the Public Notice No. 15-ITC(PN)/7A dated 28th January, 1972, Public Notice No. 108-ITC(PJV)/72, dated 21st July, 1872 and 48-ITC(PN)/70, dated 17th January, 1970 as amended from time to time. Any change in this regard will be notified as and when necessary.

3(vi). Issue of Letter of Authority.—It the documents specified in para 3(1)

S to the foreign suppliers on the basis of a "Special" letter of credit to hr opened by the- Importer's bank in India on the n o m,l n a t e^ c? ™ ™e^ Ss^ West Germany A copy of such authorisation will be senttoIndian Licensee. The o r iS Letter of Authority along with a copy thereof will be sent to the concerned Indian bank authorised to open the Letter of Credit a s k i n g^ to submit the original Letter of Authority to the designated commercial Bank in West German? alongwlth Letter of Credit opened by it (Such a direct on will be as In Annexure V). A copy of this communication will also be" addressed to the Importer.

• NT - R a t iV In I n d ia s h o u ld p r o v i de f a c i l i t i es to I t ie l i c e n s ee f or e s t a b l i s h i ng a

Department of Economic Affairs, Ministry of Finance.

3(vii) The "Special" Leftpr of Credit on the designated commercial Banfcin

pSarSsCet, New Delhi. Otherwise the letter of Authority already w s"ed

will be deemed t)o be no longer valid.

S r o v S r^ ^Ppltera In the currency of the country In. which, they are located.

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Republic of Germany, the designated Commercial Bank in West Germany will obtain reimbursement from the West German authorities oi the amounts in DM spent by it to make the payments to the overseas suppliers In the currency of the country in which they are located.

3T\% S.q papiBAUoj oq ^"[qspeAUi pjnoqs S)uamnoop auTddiqs leujSuo aqj, (j) -^ Federal Republic of Germany as well as for arranging the payment in third country wherever applicable will be remitted by the concerned bank in India to the design- ated commercial Bank in West Germany through the normal banking channel without affecting the Government of India's account.

Section IV—Responsibility for Rupee Deposits into Government Account

4. (i) The original shipping documents should invariably be forwarded by the designated commercial Bank in West Germany both in the case of Imports from West Germany including Land Berlin and other countries, to the concerned bank in India who should, within 10 days of the receipt of the documents, release these negotiable set of documents to the licensee but only after ensuring that the rupee equivalent of DM amount paid to the German supplier or the DM amount spent in arranging the payment to the supplier in third country by the designated com- mercial Bank in West Germany plus 1 per cent thereof towards Incidental and commitment charges, together with interest charges on the above aggregate amount as Indicated enclosed for the period from the date of payment to the foreign supplier to the date of deposit of the rupee equivalent into Government Account (both days Inclusive). In terms of Public Notice No. 46-ITC(PN)/76 dated the 16th June, 1976, the interest charges are to be calculated as under the rate of deposits made into the Government Account on or after 15th June, 1976.

(i) where deposits are made within 30 days after from the date of payment to the supplier 9 per cent per annum.

(ii) where rupee deposits are made more than 30 days after the date of payment to the supplier:

(a) for the first 30 days 9 per cent per annum.

(b) for period in excess of 30 days 15 per cent per annum.

The exchange rate to be adopted for computing the rupee equivalent of the foreign currency payments made to the foreign supplier will be the composite rate of exchange as laid down in CCI&E's Public Notice No. 18-ITC(PN)/76 dated 17th January, 1976 or as may be notified by the Government from time to time through Public Notices of the CCI&E or through the Exchange Control Circulars of the Reserve Bank of India. It will be the responsibility of the Indian Bank concerned to ensure that the amounts due are correctly deposited into Government Account before the original shipping documents are handed over to the importers. The licensee should also ensure that the amounts due are correctly deposited Into Government account, before taking delivery of the documents from their bankers.

4. (ii) The deposits envisaged in para 4(i) above may be made in cash either at the Reserve Bank of India, New Delhi or the State Bank of India, Tig Hazarl, Delhi or if this is not feasible, the amounts may be remitted by means of a demand draft drawn on and in favour of the Agent, State Bank of India, Tis Hazarl, Delhi-6 for credit to Government account as contemplated In Public Notice No. 233- ITC(PN)/68 dated the 24th October, 1968 as amended vide Public Notice No. 74-ITC(PN)/74 dated 31st May, 1974 and Public Notice No. 132-ITC(PN)/71 dated the 5th October, 1971. The Head of Account to be credited is "K-Deposlts and Advances—Deposits not bearing interest-843-Civil Deposits—Deposits for purchases etc. abroad—Direct Payment Procedure Deposits for cost of supplies and equipment obtained under the West German Capital Goods Credit VIII for 1976-77 (DM 25 million Credit)".

4. (iii) Remittance will be made in the Challan form prescribed In Public Notice No. 74-ITC(PN)/74 dated 31st May, 1974.

4. (iv) One copy of the Challan from the Reserve Bank of India, New Delhi or the State Bank of India, Tis Hazari, Delhi-6 or intimation regarding the sub- mission of Demand Draft to the State Bank of India, Tis Hazarl, Delhi-8 should be sent by the Indian Bank, which has Issued the guarantee, to the Controller of

Aid Accounts & Audit, Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi-1 alongwlth a forwarding letter, giving full details of the Advice Notes received from the concerned nominated German Bank.

4. (v) II will be obligatory for the importers to make the requisite rupee deposits through authorised dealers only and also to get the exchange control copy of the licence endorsed by them, as required in Public Notice No. 184-ITC(PN)/68 dated the 30th August, 1908. They should also fill the requisite "S" forms as prescribed by the Reserve Bank of India.

4. (vi ) After the imports under a licence are completed and the importers/ban- kers have deposited into Government account all the amounts due, details of the imports received and of rupee deposits made should be furnished to the Controller of Aid Accounts & Audit, Ministry of Finance, Department of Economic Affairs, UCO Bpnk Building, New pe!hi-l in the proforma prescribed as Annexure-VI to enable the Ministry of Finance to verify and arrange for release of the bank gua- rantee furnished by the importers, wherever necessary.

Section V—Alternation in the contract

Any material alternation in the contracts pertaining to the list of goods, terms or schedule of payments, value of goods, etc. will require the prior approval of the Ministry of Finance and the KFW authorities, whether it results in earlier pay- ments, or in postponment of payments.

Such alternation(s) should be promptly Intimated by the Importer to the De- partment of Economic Affairs, Ministry of Finance, New Delhi, (WE-1 Section, North Block) for securing the approval of t^e Government of India/KFW In the same manner as explained in para 2(v) above.

Section VI—Reporting

A quarterly report commencing from the date of issue of the licence should be furnished in duplicate as in Annexure-VII to the Ministry of Finance, Department of Economic Affairs, (WE-1 Section, Room No,270-North Block), New Delhi showing progress of ordering, delivery of goods, payments to foreign suppliers, etc. and should be continued till all shipments and payments under the contract have been completed. In the case of allocation exceeding the rupee equivalent of DMl million at the exchange rate notified by the Department of Revenue (Customs) the licen- see would, in addition to the above mentioned quarterly reports, submit a half- yearly report as on 30th June and ,'Ust December each year In the prescribed pro- forma at Annexure-VIII (duplicate) on special event, if any, on the progress of the project and on adherence to the time-schedule for completion of project alongwith Annual Report (2copies) of the Indian importing company for at least three years until completion of the project.

Section VII—Miscellaneous Provisions

7(i). The licensee should apprise the supplier of any special provisional in the import licence which may affect the suppliers In carrying out the transactions.

7(ii) Disputes—It should be understood that the government of India will not undertake any responsibility for disputes if any that may arise between the Indian importer and the foreign supplier.

7(iii), Compliance with In$tmctions.~-The llcencee shall promptly comply with any d'rectlons, instructions or orders Issued by the Government of India from time to time regarding anv all matters arising from or pertaining to the import licence and for meeting all obligations under the DM 25 million Capital Goods Agreement with the KFW authorities,

7(iv) Breach or Violations Any breach or violation of conditions set forth in the above clauses will result in appropriate action under the Imports and Ex- port* (Control) Act.

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7(v). List of Annexures:

Annexure I—Project date form. Annexure It—Form of Request for issue of Letter of Authority. Annexure III—Form of Bank Guarantee. Annexure IV—Form of Letter of Authority. Annexure V—Letter of Instructions forwarding the Letter of Authority. Annexure VI—Form of report of rupee deposits-cum- application for release of Bank Guarantee,

Annexure VII-—Form for submitting quarterly report. Annexure VIII—Form of Half-yearly Progress Report (Applicable to cases exceeding rupee equivalent of DM 1 million).

ANNEXURE—I

PROJECT DATA FORM

KREDITANSTALT FUR WIEDERAUFBAU

6, Franjfurt/Maln, Federal Republic of Germany Palmengartenstrasse 6—9

Application for Foreign Exchange from German Capital Goods Loan

PROJECT DATA

(1) Applicant (Firm).

(a) Registered Office (address incl. State). (b) Public Sector or Private Sector undertaking. (c) Business Line/Branch of Industry. (d) Partners of Company. (e) Foreign Collaboration Agreement, (2) Type of Capital Goods to be financed.

(3) Choice of capital goods based on—please indicate the procurement procedure followed. Since the Capital Goods Loan is available for purchases from any coun- try, an indication should be given whether tender enquirlea were made/floated in varlo-us countries and the basis on which the selection of a particular supplier has been made,

(4) Suppliers (name and address).

(5) Short description of the whole project (for which such capital goods are required).

(6) Local and foreign exchange cost of the whole Project, with following break- down of figures.

— Land and building •— Machinery and equipment — Operating Funds — Miscellaneous

(7) Local and foreign financial sources for the whole, project (Quantitative statement concerning means of financing. It should be confirmed that Rupee-financ- ing Is secured and that foreign exchange requirements not covered by this applica- tion are met).

(8) Letter of Intent for Industrial Licence received.

(9) Annual reports with balance sheets and profit and loss accounts for the last two years. If available forecast of cash-flow and profitability.

(10) Capacity:

(a) Average utilization of existing capacity during the last two years. (b) In case of under-utilizatlon, please give main reasons.