Home › Circulars › RBI/2008-09/221

Exim Bank's $64.07 Mn Line of Credit to Myanmar for Power Projects

Current · Source: Reserve Bank of India · RBI/2008-09/221 · issued 14 Oct 2008 · ~2 min read

Quick answerRBI notifies AD Category-I banks about Exim Bank's USD 64.07 million Line of Credit to Myanma Foreign Trade Bank for financing Indian exports of goods, services, and consultancy for three 230 KV transmission lines in Myanmar, with 85% local content requirement.

The rule, in the simplest words

Banks must inform exporters about a new Line of Credit (LOC) agreement between Exim Bank and Myanma Foreign Trade Bank.
Exporters must use at least 85% Indian content for goods and services sourced from India.
Banks can process agency commission remittances only after full contract value realisation and from exporter's own resources or EEFC accounts.

How it plays out — a real example

A forex & trade-finance officer in Indore, Mr. Kumar, helps an exporter, Mrs. Rao, by informing her about the new LOC agreement. Mrs. Rao uses at least 85% Indian content for her goods and services sourced from India. After realising the full contract value, Mr. Kumar processes Mrs. Rao's agency commission remittance from her own resources or EEFC account.

What changed

RBI has informed AD Category-I banks about a new Line of Credit agreement between Exim Bank and Myanma Foreign Trade Bank, effective September 19, 2008. The LOC of USD 64.07 million is for financing three transmission line projects in Myanmar executed by Power Grid Corporation of India. Key timelines: last date for L/C opening and disbursement is 48 months from project completion for project exports, or 72 months (June 23, 2014) from agreement execution for supply contracts.

What it means for you

Banks must facilitate export transactions under this LOC by handling GR/SDF form declarations and allowing remittance of agency commission from exporter's own resources or EEFC accounts after full contract value realisation. The 85% Indian content requirement ensures significant domestic sourcing. No agency commission is payable under the LOC itself, but banks can process such payments if exporters use their own funds.

What you must do

Inform exporter constituents about this LOC and advise them to contact Exim Bank for full details.
Ensure shipments under this LOC are declared on GR/SDF forms as per prevailing RBI instructions.
Process agency commission remittances only after full contract value realisation and from exporter's own resources or EEFC accounts.
Verify that at least 85% of contract value goods and services are sourced from India as per the agreement.

Who it affects

AD Category-I banks handling export transactions under this LOC, Exporters dealing with Power Grid Corporation of India's Myanmar transmission line projects, Exim Bank and Myanma Foreign Trade Bank

❓ Common questions

Regulatory timeline

Stated effective date effective September 19, 2008
Decoded by BankPulse 2026-06-19 12:01 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the last date for opening Letters of Credit under this LOC?

For project exports, the last date is 48 months from the scheduled completion date of the contract. For supply contracts, it is 72 months from the execution date of the Credit Agreement, i.e., June 23, 2014.

Can agency commission be paid under this LOC?

No agency commission is payable under the LOC itself. However, exporters may use their own resources or EEFC account balances to pay commission in free foreign exchange, and AD banks can allow such remittance after full contract value realisation.

What is the minimum Indian content requirement for exports under this LOC?

At least 85% of the contract price must consist of goods and services supplied from India. The remaining 15% (excluding consultancy services) may be procured from outside India.

📜 Read the original circular — full text as issued by RBI

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(DIR Series) Circular No.21 October 14, 2008 To All Category - I Authorised Dealer Banks Madam / Sir, Exim Bank's Line of Credit of USD 64.07 million to Myanma Foreign Trade Bank , Myanmar Export-Import Bank of India (Exim Bank) has concluded an Agreement dated June 24 ,2008 with the Myanma Foreign Trade Bank , Myanmar &nbsp;making&nbsp; available to the latter, a Line of Credit (LOC) of USD&nbsp; 64.07 million (USD&nbsp; sixty four&nbsp; million seventy thousand ) for financing export of eligible goods and services including consultancy services from India relating to&nbsp; financing&nbsp; of three transmission lines namely Thahtay Chaung &ndash;Oakshitpin 230KV ; Thahtay Chaung &ndash;Thandwe- Maei &ndash;Ann 230 KV and Thandwe-Athoke 230 KV to be executed by Power Grid Corporation of India in Myanmar. The goods and services including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services of the value of at least 85 per cent of the contract price shall be supplied by the Seller from India, and the remaining goods and services (other than consultancy services) may be procured by the Seller for the purpose of Eligible Contract from outside India. 2. The Credit Agreement under the LOC is effective from September 19, 2008 and date of execution of Agreement is June 24,2008 . Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in case of project exports and 72 months ( June 23, 2014) from the execution date of the Credit Agreement in case of supply contracts . 3. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by Reserve Bank from time to time. 4. No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances of his Exchange Earners&rsquo; Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realisation of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.&nbsp; 5. AD Category-I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from Exim Bank&rsquo;s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005&nbsp; or log on to www. eximbankindia. in. 6. 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.&nbsp;&nbsp;&nbsp;&nbsp; Yours faithfully, &nbsp;D. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/221 · issued 14 Oct 2008. The plain-English explanation above is BankPulse’s own independent summary.

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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks handling export transactions under this LOC, Exporters dealing with Power Grid Corporation of India's Myanmar transmission line projects, Exim Bank and Myanma Foreign Trade Bank), your first concrete step on “Exim Bank's $64.07 Mn Line of Credit to Myanmar for Power Projects” is: “Inform exporter constituents about this LOC and advise them to contact Exim Bank for full details.” (RBI issued this 14 Oct 2008).

Circular: RBI/2008-09/221 -- Exim Bank's $64.07 Mn Line of Credit to Myanmar for Power Projects
Issued: 14 Oct 2008
Action required: Inform exporter constituents about this LOC and advise them to contact Exim Bank for full details.
Action required: Ensure shipments under this LOC are declared on GR/SDF forms as per prevailing RBI instructions.
Action required: Process agency commission remittances only after full contract value realisation and from exporter's own resources or EEFC accounts.
Action required: Verify that at least 85% of contract value goods and services are sourced from India as per the agreement.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4537&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.