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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
Reading Time 1 mins
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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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