Know all about Turnkey Project
Exports from India – Can it be a
better Solution?
www.homedelight.in
1. What is a Turnkey Project
In construction, the term TURNKEY refers to projects where the developer takes responsibility
from design to competition so that the building is ready to use for the buyer.
Alternatively, it can be described as a real estate development project in which a builder absorbs
all risks until a certain point has been reached. To begin using a facility, the owner simply turns the
key in the door once the job is finished. This usage is rooted in the construction industry. The
buyer of turnkey Property will occupy the home with furnishing and other objects already
installed.
In Turnkey-Projects, a private developer takes over all the responsibilities of the project, including
land purchases, plans, permit, and construction. After the structure has been built, he sells it to
the housing authority. In addition, to turnkey projects, there can be other types such as
Engineering Projects, Large construction Projects such as airports, ports, skyscrapers, bridges, and
information systems.
2. What is the process of establishing a
Turnkey Project
CONTRACTOR  ENDER FOR THE PROJECT  EXECUTION 
PROJECT DELIVERY AND FINAL EXECUTION
HIRE
CONTRACTOR
PROJECT DELIVERY
AND FINAL
EXECUTION
ENDER FOR THE
PROJECT
EXECUTION
3. Exports of Goods and Services in
Execution of a Turnkey Project
A project exports is an export of engineering goods with deferred payments terms or an export
of a Turnkey Project. Due to stiff international competitions, exporters conducting these
contracts must offer competitors credit terms to secure orders from foreign buyers. The
contracts are generally of high value.
In case the seller is offering deferred payment terms to an overseas buyer, or if the seller has
been awarded a Turnkey Project by an overseas party, credit terms must be approved by the
Authorized Dealer/Exim Bank prior to export.
An instruction memo relating to project exports and services exports outlines the requirements
for both.
4. Requirements Relating to Completed
Projects
After completing Turnkey Contracts abroad, exporters should take the following steps
1) Closing the foreign currency accounts and transfer the balances to India
2) Shut-down the foreign site and liaison offices
3) Cancelling and returning to exporters the Contracts’ guarantees for performance and other
guarantees issued
4) You must cancel the counter- guarantees as well as liquidate overseas borrowing and
overdrafts
5) Ensure compliance with taxes, customs, and other statutory obligations in the country of
the project should be made
6) In order to dispose of or arrange the importation of equipment, machinery, vehicles, etc.
purchased abroad.
7) Repatriate to India funds, if Any, transferred to other overseas projects.
Any Questions?
You can find us at:
• @homedelightofficial
• info@homedelight.in