CIR. NO. 39/2007-08-RB, DT. 28/04/2008
- Document type
- Circular
- Dated
- Category
- A.P. (DIR Series) Circulars
Bids in foreign currency for projects to be executed in India
Bids in foreign currency for projects to be executed in India
2. On a review, and as a measure for procedural simplification, it has been decided, in consultation with Government of India, that the prior permission of Administrative Ministry / Authorization from Central Government may not be necessary for International Competitive Bidding (ICB). Accordingly, persons resident in India are now permitted to incur liability in foreign exchange and to make or receive payments in foreign exchange in respect of global bids for projects to be executed in India without insisting on prior approval of the concerned Administrative Ministry for the International Competitive Bidding.
3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
4. The directions contained in this circular have been issued under Section 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge