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  • CCI AD FROM 5th April 2021

Extension of Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit

Circular No. ES/267/2021-22                                                                           10th March, 2022     

 

 To: Members of the Council         

     

Sub: Extension of Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit  

 

Dear Member,    

 

We are glad  to inform you that the Govt. of India has extended the IES for Pre and Post Shipment Rupee Export Credit (‘Scheme’) up to 31st March, 2024 or till further review, whichever is earlier. The extension takes effect from 1st October, 2021. In this connection, Notification No. RBI/2021-22/180 dated 8th March, 2022 has been issued by the Reserve Bank of India.  

  

However, please note that the interest equalisation rates under the scheme have been revised and details of the same are as follows: 

 

Details 

Earlier rates 

Revised rates 

MSME manufacturers exporters exporting under any HS tariff items 

5%  

From 2.11.2018 to 30.9.2021 

3% 

w.e.f. 1.10.2021 

Manufacturer exporters exporting under 410 HS lines 

3%  

From 1.4.2015 to 30.9.2021 

2% 

w.e.f. 1.10.2021 

Merchant exporters exporting under 410 HS lines 

3%  

From 2.1.2019 to 30.9.2021 

2% 

w.e.f. 1.10.2021 

 

As you are aware, the Interest Equalisation scheme (IES) was announced on 4th December, 2015 and it was effective from 1st April, 2015 to 31st March, 2020. IES provides interest subsidy to manufacturing and merchant exporters on pre-and post-shipment export credit ranging between 3%-5%. Due to pandemic, this scheme was extended from time to time. Lastly, it was made available upto 30th September, 2021. 

 

In this regard, it may be informed that this Council had made ceaseless efforts by representing the matter at various levels for extension of the Interest Equalisation Scheme. 

 

SRTEPC thanks the Govt., various Ministries and RBI for extending IES till 31st March, 2024. 

 

Members may kindly make a note of the above. 

    

Thanking you,                    

   

Yours faithfully,                     

   

S. BALARAJU             

EXECUTIVE DIRECTOR