New Delhi, Jan. 12 Releasing the incentive package for exporters in the Capital on Tuesday, the Commerce Ministry outlined the various issues taken up with Ministry of Finance:
Allowing reduced rate of interest for Dollar credit at LIBOR plus one per cent (instead of LIBOR plus 3.5 per cent).
Continuation of interest subvention of 2 per cent provided to labour incentive sectors for textiles (including handlooms), handicrafts, carpets, leather, gems and jewellery, marine products and SMEs.
Providing interest subvention of two per cent to some additional sectors including specified engineering sectors and chemicals.
Requesting RBI to instruct commercial banks for non-crystallisation of overdue export proceeds for a period of six months from due date (instead of one month at present) regarding two sectors – carpets and handicrafts.
New measures taken
China and Japan have been added under Market-Linked Focus Product Scheme (MLFPS).
New Products under Focus Product Scheme
112 new products added, eligible for benefits at the rate of 2 per cent of f.o.b. value of exports to all markets. Major sectors include engineering, electronics, rubber, chemicals, plastics, carton boxes and egg powder.
113 new products given higher benefits at the rate of five per cent of f.o.b. value of exports under Special FPS on exports to all markets. Major sectors include hand tools, parts of agriculture & horticulture machinery, sewing machines, liquid pumps, nuts, bolts, washers, screws, staplers, and parts of machinery for soldering, brazing and welding.
New Products and New Markets under MLFPS
1,837 new products eligible for benefits at the rate of 2 per cent of f.o.b. value of exports to specified markets. Major sectors include machine tools, earth moving equipments, transmission towers, electrical and power equipments, steel tubes, pipes and galvanised sheets, compressors, iron and steel structures, auto components, three-wheelers and cotton woven fabrics. (Chemicals have been included for providing benefit for a limited period of six months.)
New products under Vishesh Krishi and Gram Udyog Yojana
Sesame seeds and minor coconut products eligible for benefits at the rate of five per cent of f.o.b. value of exports to all markets.
Support under Market Access Initiative (MAI) scheme, for setting up of warehouse in Latin America by Export Promotion Council for Handicrafts.
Timor Leste added as new focus market scheme country, eligible for benefits at the rate of three per cent of f.o.b. value of exports of all products.
Source : Business Line