Chapter 21



21.1 The Peoples Republic of Romania started its financial and technical assistance to India in 1958. Upto 31.3.84 two credits for a total amount of Rs.45.59 crores were extended out of which Rs. 5.59 crores were for the establishment of refinery at Gauhati with a capacity of 0.75 million tonnes per annum and Rs. 40 crores were for economic and technical cooperation. Against the latter credit of Rs. 40.00 crores, only one contract for purchase of 10 ships was signed in 1969 for value of Rs. 39.10 crores, of which Rs. 33.24 crores (representing 85 per cent of the contract value) was covered by the credit. Of these 10 ships, four were for Shipping Corporation of India, five for the Moghal Lines and one for the Chowgules. All the ships had been delivered.

21.2 Presently there are no credit lines on Government-to-Government basis from Romania.

21.3 The significant feature of the Romanian Credit is that the debt servicing payments are made in Indian Rupee for utilisation by the Romanian authorities to purchase Indian goods for export to Romania under the Indo-Romanian Trade Agreement in force from time to time The rupee payment arrangement with Romania was extended for a further period of five years from 1st January 1986 to 31st December, 1990 and continued till 31.3.1993. The Rupee payment arrangement with Romania has ceased to exist with effect from 1.4.1993. From 1st April 1993, the trade with Romania is being conducted in freely convertible currency.

.21.4 The details of the credits are given in Annexure-I.