Interest Rate Subvention Scheme on Pre & Post-Shipment Scheme has been approved

It will be called as Interest Equalisation Scheme (earlier called Interest Subvention Scheme) is effective from 1st April, 2015 for a period of five years.

The features are:

1. The rate of interest equalisation is 3%. (The scheme would be available to all exports of MSME and 416 specified tariff lines). The scheme would not be available to merchant exporters. The duration of the scheme is for five years with effect from 1.4.2015.

• On completion of three years of operation of the scheme, Department of Commerce may initiate a study on impact of the scheme on export promotion and its further continuation (study may be done through one of the IIMs.)
• Ministry of Commerce & Industry may place funds in advance with RBI for requirement of one month and reimbursement can be made on a monthly basis through a revolving fund system.
• The operational instructions of the scheme would be issued by RBI shortly.
• The scheme covers mostly labour intensive and employment generating sectors which includes handloom products, readymade garments and made ups covered under Chapter 61-63, fabrics of all types and all items manufactured by SMEs other than those covered above.

2. The list of tariff lines for textiles & clothing is given below:

When the scheme becomes operational after the issue of RBI, in case of any difficulty one can approach TEXPROCIL, so that the case can be proposed to the government.