The following is the text of the opening remarks by Shri Vinod Rai, Secretary, Financial Sector, Ministry of Finance at a Press Conference, here.
"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 matter has been considered by the Government and it has been decided to provide relief to the exporters in the following sectors:-
I.
• Textiles (including Handlooms)
• Readymade Garments
• Leather Products
• Handicrafts
• Engineering Products
• Processed Agricultural Products
• Marine Products
• Sports Goods
• Toys
II. 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.
The subvention would be provided to the banks through the Reserve Bank of India. The Reserve Bank of India is being requested to issue a circular to the Scheduled Commercial Banks in this respect."
Press Information Bureau Government of India
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