Circular No.ES/379/2018-19 February 07, 2019
To: Members of the Council
Sub.: Cabinet allows inclusion of merchant exporters under Interest Equalisation Scheme (IES) for Pre and Post Shipment Rupee Export Credit
Dear Member,
The Council has received a communiqué from the Ministry of Textiles informing us about the extension of Interest Equalisation benefit to merchant exporters.
As you are aware, the Council has been urging the Government to include Merchant Exporters under the Interest Equalisation Scheme (IES) for availment of Pre and Post Shipment Rupee Export Credit at lower rates. The Cabinet Committee on Economic Affairs (CCEA) had finally approved the proposal for inclusion of merchant exporters under the Interest Equalisation Scheme (IES) for Pre and Post Shipment Rupee Export Credit by allowing interest equalisation rate of 3% on credit for export of products covered under 416 tariff lines identified under the scheme.
The Council has prepared a list of MMF Textiles items falling under the purview of SRTEPC which is entitled for Interest Equalisation Scheme (IES) in Annexure ‘A’.
This step will entail benefits of around Rs. 600 crore to exporters on interest equalisation, for the remaining period of the scheme. Inclusion of Merchant exporters under the scheme is expected to make them more competitive and encourage export of more products manufactured by MSMEs adding to country's exports. Additional exports by them will increase production by MSME giving a fillip to employment generation.
The Council therefore requests its members to avail the benefit of the Interest Equalisation Scheme extended by the Government and make exports of MMF Textiles more competitive.
Thanking you,
Yours faithfully,
S. BALARAJU
EXECUTIVE DIRECTOR
