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June 2008

A.P. (DIR Series) Circular No. 39, dated 28-4-2008 — Bids in foreign currency for projects to be executed in India.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Chartered Accountants
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Part C : RBI/FEMA

Given below are the highlights of RBI Circulars and Notifications.

 

9 A.P. (DIR Series) Circular No. 39, dated 28-4-2008 — Bids in foreign currency for projects to be executed in India.

Presently, person resident in India can incur liability in foreign exchange and to make or receive payments in foreign exchange in respect of global bids only where the Central Government has authorised such projects to be executed in India and approval of the concerned Administrative Ministry has been obtained.

 

This circular has done away with the requirement of obtaining prior permission of Administrative Ministry/Authorisation from Central Govt. may not be necessary for International Competitive Bidding (ICB). Hence, 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 ICB.

 

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