Exploiting the opportunity of Rs 350-crore package that has been sanctioned by the Centre under the National Export Insurance Account for the benefit of exporters to counter the global meltdown and deteriorating market conditions, the Associated Chambers of Commerce and Industry (ASSOCHAM) has arranged an interactive session with the experts from the Export Credit Guarantee Corporation of India Ltd (ECGC) for the benefit of SMEs engaged especially in the spices sector.
The Export Credit Guarantee Corporation of India Ltd (ECGC) has operationalised this stimulus package. Giving additional benefit to the exporters, the percentage of cover will be enhanced by 5% under the Export Credit Insurance Policies issued to the exporters, as part of its efforts to help Micro, Small and Medium Enterprises (MSMEs), especially those engaged in exports of spices.
A series of seminars on the new stimulus package announced by the government to help exporters of spices has arranged by ASSOCHAM in six cities, namely New Delhi, Ludhiana, Bangalore, Ahmedabad, Jaipur and Kolkata from April 28 to May 29, 2009.
With the operationalisation of the new package, SMEs in the spice sector will get several benefits like more interest loan subsidies on exports, enhanced reimbursement of duties, cheaper loans to labour intensive sectors, faster reimbursement of taxes paid on exports, additional guarantee for export related insurance, enhanced working capital support from the banks and enhanced cash credit limits as well as overdraft facilities from the banks. During the interactive meeting, the experts will be able to explain and guide the SMEs on new facilities.
There will be an Expert Panel from the Union Ministry of Micro, Small and Medium Enterprises, ECGC, UNIDO, EXIM Bank of India, SMEs, Small Industries Development Organisation, National Small Industries Corporation Ltd, Small Industries Development Bank of India and Industry Associations, it is learnt.
The Government of India, under the stimulus package, has sanctioned utilisation up to Rs 350 crore out of the corpus available under the National Export Insurance Account for the benefit of exporters and banks. This will result in additional benefits to the exporters and banks.
The percentage of cover is enhanced by 5% under Export Credit Insurance Policies issued to exporters and by 10% under Export Credit Insurance Covers for banks. The maximum percentage of cover for the exporters is enhanced to 95% and for the banks to 85%.
The additional benefits are made available to the exporters for shipment made between January 2009 and June 2009. The benefits to exporters under Export Credit Insurance Policy (ECIP) covers issued by ECGC will be made available to all the exporters classified falling under MSME categories.
Source : www.fnbnews.com