New Delhi, Mar 9 (Mayank Nigam) In a relief to exporters, the government has extended the scheme offering pre and post-shipment rupee export credit to exporters till March, 2024. The Reserve Bank of India (RBI) has issued the circular extending the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit. “The extension takes effect from October 1, 2021 and ends on March 31, 2024,” the RBI said. As per the revised scheme, MSME manufacturer exporters will get an interest subsidy of 3 per cent as against 5 per cent earlier on pre- and post-shipment rupee credit for the outbound shipments.
Manufacturer exporters and merchant exporters will get an interest subsidy of 2 per cent as compared to 3 per cent earlier for the outbound shipment of 410 products. Telecom instruments sector having six HS lines shall be out of the purview of the scheme, except for MSME manufacturer exporters. Banks, while issuing approval to the exporter, will necessarily furnish the prevailing interest rate, the interest subvention being provided, and the net rate being charged to each exporter, so as to ensure transparency and greater accountability in the operation of the scheme, the RBI said.
“The extended scheme will not be available to those beneficiaries who are availing the benefit under any Production Linked Incentive (PLI) scheme of the government,” the RBI said. Interest equalisation scheme on pre and post shipment rupee export credit was introduced in 2015 providing interest subsidy of 3 per cent for labour intensive and MSME sectors. The rate was increased to 5 per cent for MSME sectors in November, 2018 and merchant exporters were covered under the scheme later. With directions from the government, RBI had in June last year extended the scheme for three months till September 30, 2021. While confirming that interest subsidy scheme for exporters would be extended, Commerce Minister Piyush Goyal had earlier said that interest rates had significantly fallen since the old scheme was announced and hence needed to be calibrated to current requirements and current interest rates.