REGISTERED No. D.(D)-72
The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 691 NEW DELHI MONDAY, MARCH 19, 1979/PHALGUNA 28, 1900
Separate paging is given to this Part in order that it may be filed as a separate compilation.
(407)
1321 GI/78
408 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]MINISTRY OF COMMERCE, CIVIL SUPPLIES AND CO-OPERATION
(Department of Commerce) IMPORT TRADE CONTROL
PUBLIC NOTICE NO. 18 lTC(PN)/79
New Delhi, the 19ih March, 1979
Subject: Import licences issued under the IDA Credit or Rail-
ways.
[F.No.IPC/39/4/76].—Attention is Invited lo paras I and 2 cftheMinistryofCommcrce,PublicNotice No. 6-ITC(PN)/76, daled 12-1-1976 according to which the import licences under IDA Credits for Railways Nos. 162-JN, 280-IN, 448-1N ard 582-1N could be issued/extended in accoidancc with the foreign exchange releases/extensions as conveyed by the Minis- try of Railways (Railway Board).
2. The Railways have obtained the Credit 844-IN for $ 190 million equivalent. The schemes which will be financed under the new IDA Credit 844-IN are as follows —
Categorj Percentage of expenditure to
be financed
(1) Workshop Modernisation:
(a) Plant and machinery 100% of foreign expendi- tures and 100% of local expenditures (ex-factory)
(b) Components for unit 100% of foreign expendi-
exchange system. tures.
(2) Plant,machinery andma- 100% of foreign expenditure terials for the Yelahanka and 100% of local expendi-. Plant.
tures 9 (ex-factory).
(?) Proprletory items for the 100% of foreign expenditures
Yolahanka Plant.
(4) Wheels, tyres, axles and 100% of foreign expenditu es
wheelsets.
(5) Development Support:
(a) Thyristor Control 100% by foreign expenditures.
Transformer sets.
(b) Equipment and com- 100% of foreign expend ituies"
ponents for product and 100% of local expend
improvement. tures (ex-factory).
(c) Technical Advisory 100%
services and staff training.
3. As part of the abov^ schemes, the new IDA Credit will finance the balance payment, if any, against the import licences
409
already issued under the previous IDA Credits in respect of tht import of the following ilems:—
(a) Spares for the maintenance of diescl and electric loco
motives on global/limited tender basis.
(b) Wheels, wheelsets, tyres and axles on global tendei
basis.
(c) Plant and Machinery for modernisation of Workshops
on global/limited tender basis.
The credit will also finance contracts placed on other than global or limited tender basis in respect of the above items if the value of the contract is $ 1,00,000 or less, within the ceiling of J 5 million equivalent.
4. All other items for which import licences have already been issued but payments have not been completed are beinu diverted to other sources of financing. Suitable amendments in the import licences already issued will be rnade on request by the importing Railways/Railway Production Units.
5. As regards the new IDA Credit 844-IN also, foreign exchange releases and their extension from time to Lime will continue to be conveyed by the Ministry of Railways (Railway Board) as hitherto, having regard to the conditions of credit and its availability. The import licences will be issued/extended in accordance with such foreign exchange releases/extensions as conveyed by the Ministry of Railways (Railway Board), the criterion for the validity of the licences being the date upto which the foreign exchange release has been made available or extended, as the case may be.
6. Tt will be seen from para 2 that the new IDA Credit 844-IN, the Projects have been divided into two groups by (he IDA for the purpose of financing as under:—
(i) Projects for which 100% foreign exchange expenditure
will be financed by the IDA; and
(ii) Projects for which 100% foreign exchange expenditure and 100% local expenditure (ex-factory) will bo financed by the IDA.
7. For the purpose of payment to the Suppliers, Project undor item 6(ii) above are divided into two sub-groups as under •- (a) Procurement through contracts placed on foreign sup-
pliers.
(b) Procurement through contracts placed on Indian Sup-
pliers.
8. For payment of foreign exchange component which is stipulated in the import licence in respect of schemes under 6(i) above, one of the three following procedures shall be followed:
(i) Case I—Reimbursements Procedure:
Under this procedure, the payment is initially made to otherwise specified, in the currency of the country of origin of goods to the foreign suppliers through normal banking channel or against letter of credit or otherwise, as may be con- tractually due and is marked off in the exchange control copy of the Import Licence. Within fifteen days of such remittance, the licences shall forward to the Additional Director, Finance (L&F), Railway Board, Rail Bhavan, New Delhi, following documents for claiming reimbursement from IDA:—
(a) Invoice.
(b) Billof ladingor Airway bill.
(c) Bankor's certificate showing remittance to foreign
suppliers.
(d) Copy of contract.
The authorised dealer in foreign exchange, through whom the remittance is arranged, shall also send a copy of the Invoice
4 i| THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—Sag. 1]Bill of lading and certificate of payments to the Additional Director, Finance (L&F), Railway Board, Rail Bhavan, New Delhi, as soon as a remittance in foreign exchange is made against the Import Licence.
(ii) Case III—Direct Payment Procedure: -
Under this procedure, no remittance in foreign exchange from India h permitted. Then-Pore, no letter of credit can be opened under this payment procedure. For making payments to foreign suppliers whore clue, a payment authority in accor- dance with the procedure prescribed by the Ministry of Railway (Railway Board) from time to time, shall be sent by the autho- rised Accounts Officer of the concerned Railways, Production Unit etc. to the Additional Director, Finance (L&F), Railway Board, Rail Bhavan, New Delhi, who will in turn arrange with International Development Association for making the payment d irectly to the foreign suppliers.
In case of f.o.b shipments, where payment of ocean freight is made in Indian rupees in India, the authorised dealers in foreign exchange shall issue necessary freight certificate indi- cating that the amount has been marked off in the Import Licence.
(iii) Case VI—Qualified Agreement of IDA to Reimburse: According to this procedure, IDA will give a qualified agree- ment to reimburse the negotiating bank for payments made by them under a letter of credit. This qualified agreement to reimburse shall be given by the IDA, onl> on a request made throughthe authorised representatives of the Ministry of Rail- ways, by the Banks opening and negotiating the letter of credit-
9. In view of what has been stated in para 5 above, opening/ extension of letter of credit shall be done by the authorised dealer in foreign exchange upto the period of validity of the Import Licence for shipments and payments, where the payment pro- cedure prescribed in Case I—Reimbursement Procedure, and the requisite documents forwarded as stated in para 8(i) above.
10. For payment under contracts against Item 7(a) above, payment procedure as outlined in para 8 will be followed except that ocean freight in respect of shipments made in Indian vessels . will also be reimbursed by the IDA.
11. Payments under contracts against item 7(b) above shall be made in Indian rupees only through normal banking chaiirejs or letter of credit or otherwise as may be contractually due- Within fifteen days of such payment, the purchaser shall forward to the Additional Director, Finance (L&F), Railway Board, Rai) Bhavnn, New Delhi, the following documents for chiming reimbursement from IDA:
(a) Invoice.
(b) Banker's certificate of payment.
(c) Copy of contract.
The bank, through which ihe payment is made to the con-
tractor shall also supply a copy of invoice on
Board, Rail Bhavan, New Delhi.
I ?. procedure for shipment will be as follows:—
(i) Where the shipment is made on C&F basis on vessels beloiifiine to a member country of the World Bank olher than India, the ocean freight should be prepaid. If the shipment is made by an Indian vessel, the invoice should be drawn on f.o.b basis only, ard the freight pak1 in Indian rupees at the destination in lndin.
(ii) In case of f.o.b shipments, where payment of ocean freight is made io Indian rupees, (here in no objection to shipments being made by any vessel incIudJDg Indian or non-member country vesscK.
(iii) Shipment on C&F basis, against contracts placed on suppliers belonging to member countries of World Bank and Switzerland, shall in no case be made by a vessel belonging to a non-member country of the World Bank.
K.V. SESHADRI, Chief Controller of Imports and Export