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Informist, Wednesday, Aug 14, 2024

 

--DGFT: To review extension of RoDTEP scheme once new fin secy joins 
--DGFT: Considering proposal to extend interest equalisation scheme 

 

NEW DELHI – The commerce department is considering a proposal to extend the interest equalisation scheme for exporters from micro, small and medium enterprises, and include merchant exporters as well, Director General of Foreign Trade Santosh Sarangi said today. In June, the government had extended the scheme only for exporters from micro, small and medium enterprises till Aug 31. 

 

Till June, both merchant exporters and MSME exporters got interest subvention under the scheme. Under the interest equalisation scheme, merchant exporters and manufacturers got subvention of 2% on pre- and post-shipment credit for certain tariff lines. Exporters from micro, small, and medium enterprises get subvention of 3% on shipment credit for all tariff lines.

 

The commerce department will also review the extension of the Remission of Duties and Taxes on Exported Products, or RoDTEP, scheme after the government names a new finance secretary, Sarangi said. The scheme is set to end on Sep 30. 

 

Under RoDTEP, the government reimburses the duties and taxes paid by exporters on imported inputs. Recently, the government had also expanded the benefits of the scheme to exporters from special economic zones and export-oriented units. 

 

The Appointment Committee of the Cabinet is likely to name a finance secretary by the end of August. The committee appointed T.V. Somanathan, who currently holds the position of finance secretary, as Cabinet Secretary for a tenure of two years from Aug 30.

 

Sarangi did not specify the extension period for either of the two schemes. The government, in the Budget for 2024-25 (Apr-Mar), has allocated 17 bln rupees to the commerce department for interest equalisation scheme. For RoDTEP, the government allocated 165.75 bln rupees in the Budget.  End

 

 

Reported by Krity Ambey

Edited by Deepshikha Bhardwaj

 

 

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