India Cuba Relations

1. Trade Statistics
Indias major exports to Cuba include pharmaceutical products, fine chemicals,
organic chemicals, vehicles other than railways or tramways, rubber manufactured
products and plastic products. The major items of import from Cuba are tobacco and
manufactured tobacco substitutes, fruits, nuts, vegetables, leather, raw hides and
skins. [2] [6]

[5]

India's Total Export ( in US$ mn.)

350,000.00
300,000.00
250,000.00
200,000.00
150,000.00

India's Total Export

100,000.00
50,000.00
0.00

India's Total Import ( in US$ mn.)

600,000.00
500,000.00
400,000.00
300,000.00

India's Total Import

200,000.00
100,000.00
0.00

2. Indian loans to Cuba

Government of India approved a Line of Credit (LoC) of US$ 5 million for the setup of
a milk powder processing plant in Camaguey Province of Cuba. The LOC became
effective with effect from 28-02-2013. An agreement between M/S Angelique

International Ltd. of India & M/S ALIMPEX of Cuba was signed for commissioning the
plant.(For Details refer Annexure 1)
In October 2014, Export-Import Bank of India (EXIM Bank), extended two additional
Lines of Credit (LOCs) to Banco Exterior De Cuba at the behest of the Government of
India. One line amounted to USD 2.71 Million for financing the setting up of a bulk
blending fertilizer plant. The Credit Agreement under the LOC is effective from
February 27, 2015.
The other Line of Credit amounted to USD 5.05 Million for financing the
modernization of an injectable products plant. The Credit Agreement under the LOC
is effective from February 3, 2015.
With these two additional Lines of Credit, Indian Government has extended three
lines of credit to Cuba, which amount USD 12.76 million. (For Details refer
Annexures 2 and 3)
Under the LOC, Exim Bank will reimburse 100 per cent of contract value to the
Indian exporters, upfront upon shipment of goods. The LOC will be used for sourcing
of goods and services from India. [7][1][3]
3. Indian Companies investing in Cuba
The major Indian presence in Cuba since 2009 is ONGC Videsh Limited (OVL). It is
engaged in oil exploration in one of the blocks off the northern coast of Cuba,
assigned to it on a nomination basis by the Government of Cuba. The investment
(as reported in July 2013) amounted to US $130 million and further US $200 million
would be required for commencing exploratory drilling, for which OVL is looking for
an Exploration and Production(E&P) partner, having being granted an extension
from Cuba for starting the drilling. OVL had earlier surrendered six blocks which
were held in consortium. [1]
Biocon Biopharmaceuticals Limited (BBL) was set up in 2002 as a Joint Venture
company of Biocon Limited in collaboration with CIMAB SA, Cuba. Biocon s equity
participation in this joint venture was 51%. In March 2010, Biocon Limited acquired
CIMABs 49% stake via its subsidiary Biocon SA. BBL is now a wholly-owned
subsidiary of Biocon Limited. The paid-up capital of BBL as on March 31st 2012 is
Rs. 176 million. CIMAB SA has provided technical knowhow and expertise on monoclinical antibodies for cancer treatment to BIOCON. [1] [4]

Annexure 1
RBI/2012-13/463
A.P. (DIR Series) Circular No. 92
Exim Bank's Line of Credit of USD 5 million to Banco Exterior De Cuba
April 1, 2013
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated October 10, 2012 with
Banco Exterior De Cuba, for making available to the latter, a Line of Credit (LOC) of USD 5 million (USD
Five million) for financing eligible goods, services, machinery and equipment including consultancy
services from India for the purpose of setting up of a milk powder processing plant in Camaguey Province
of Cuba. The goods, services, machinery and equipment 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 including
consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the
seller from India and the remaining 25 percent 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 February 28, 2013 and the date of execution of
Agreement is October 10, 2012. 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 the case of
project exports and 72 months (October 09, 2018) from the execution date of the Credit Agreement in the
case of supply contracts.
3. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by
the 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 in his Exchange Earners Foreign Currency Account for payment of
commission in free foreign exchange. Authorised Dealer Category-l (AD Category-l) banks may allow
such remittance after realization of full payment of contract value subject to compliance with the prevailing
instructions for payment of agency commission.
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 the Exim Banks office at Centre One,

Floor 21, World Trade

to www.eximbankindia.in.

Centre

Complex,

Cuffe

Parade,

Mumbai

400

005

or

log

on

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. [8]

Annexure 2
RBI//2014-15/518
A.P. (DIR Series) Circular No.89
March 27, 2015
Exim Bank's Line of Credit of USD 2.712 million to the Banco Exterior De Cuba
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated September 2, 2014 with
the Banco Exterior De Cuba, for making available to the latter, a Line of Credit (LOC) of USD 2.712
million (USD Two Million and Seven Hundred and Twelve Thousand) for financing the setting up of a bulk
blending fertilizer plant in the Republic of Cuba. The goods, machinery, equipment 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 including consultancy services of the value of at least 75 per cent of
the contract price shall be supplied by the seller from India and the remaining 25 percent goods and
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 February 27, 2015. 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 the case of project exports and 72 months from the execution date of the Credit
Agreement in the case of supply contracts.
3. Shipments under the LOC will have to be declared on EDF/ SDF Forms as per instructions issued by
the 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 in his Exchange Earners Foreign Currency Account for payment of
commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow
such remittance after realization of full payment of contract value subject to compliance with the prevailing
instructions for payment of agency commission.
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 the Exim Banks office at Centre One,
Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 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. [10]

Annexure 3
RBI/2014-15/502
A.P. (DIR Series) Circular No.84
March 17, 2015
Exim Bank's Line of Credit of USD 5.0492 million to the Banco Exterior De Cuba
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated September 2, 2014 with
the Banco Exterior De Cuba, for making available to the latter, a Line of Credit (LOC) of USD 5.0492
million (USD Five Million and Forty Nine Thousand two hundred) for financing the modernization of
injectable product plant in the Republic of Cuba. The goods, machinery, equipment 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 including consultancy services of the value of at least 75 per cent of
the contract price shall be supplied by the seller from India and the remaining 25 percent goods and
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 February 3, 2015 and the date of execution of
Agreement is September 2, 2014. Under the LOC, the last date for opening of Letters of Credit and
Disbursement will be 48 months from the scheduled completion date of contract in the case of Project
exports and 72 months from the execution date of the Credit Agreement in the case of supply contracts.
3. Shipments under the LOC will have to be declared on EDF/ SDF Forms as per instructions issued by
the 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 in his Exchange Earners Foreign Currency Account for payment of
commission in free foreign exchange. Authorized Dealer Category- l (AD Category-l) banks may allow
such remittance after realization of full payment of contract value subject to compliance with the prevailing
instructions for payment of agency commission.
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 the Exim Banks office at Centre One,
Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 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. [9]

References:
1. http://mea.gov.in/Portal/ForeignRelation/India-Cuba_Relations.pdf (as
retrieved on May 26, 2015)
2. http://www.ndtv.com/india-news/india-seeks-to-boost-economic-ties-with-oilrich-cuba-489102(as retrieved on May 26, 2015)
3. http://www.thehindubusinessline.com/economy/exim-bank-extends-776-mnline-of-credit-to-cuban-bank/article6481548.ece(as retrieved on May 26,
2015)
4. http://www.biocon.com/biocon_press_factsheet.asp?subLink=down(as
retrieved on May 26, 2015)
5. http://commerce.nic.in/eidb/iecnt.asp(as retrieved on May 19, 2015)
6. http://timesofindia.indiatimes.com/business/india-business/Exim-bankextends-line-of-credit-to-Cuba/articleshow/16834719.cms(as retrieved on May
26, 2015)
7. http://www.eximbankindia.in/node/1227(as retrieved on May 26, 2015)
8. https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=7914(as retrieved
on May 26, 2015)
9. https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=9603&Mode=0(as
retrieved on May 26, 2015)
10.https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=9620(as retrieved
on May 26, 2015)