Appreciated Rupee, harried exporters and Government's succour
In the recent months, the Indian Rupee has appreciated vis-a-vis the US Dollar. Exporters of goods and services from India have brought to the notice of the Government the difficulties they face as a result of rupee appreciation. The Government has decided to provide relief to the exporters in the following sectors:-
(i)Textiles (including Handlooms), (ii) Readymade Garments, (iii) Leather Products, (iv) Handicrafts, (v) Engineering Products, (vi) Processed Agricultural Products, (vii) Marine Products, (viii) Sports Goods, (ix) Toys and All exporters from the SME Sector.
As per the existing guidelines, banks charge interest rate not exceeding BPLR minus 2.5% on pre-shipment credit upto 180 days and post-shipment credit upto 90 days. Banks will now charge interest rate not exceeding BPLR minus 4.5% on pre-shipment credit upto 180 days and post-shipment credit upto 90 days on the outstanding amount for the period April 1, 2007 to December 31, 2007 to the above mentioned sectors. Government will provide the requisite interest subvention of 2 percentage points to scheduled commercial banks in this respect.
The amount of subvention will be calculated on the amount of export credit from the date of disbursement upto the date of repayment or upto the date beyond which the outstanding export credit becomes overdue i.e., for pre-shipment credit upto 180 days and post-shipment credit upto 90 days, whichever is earlier.
This was announced by VinodRai, Secretary, Financial Sector, Ministry of Finance at a Press Conference yesterday.