The Cabinet Committee on Economic Affairs today approved the provision of additional funds, to the tune of Rs.450 crore, to provide immediate relief to the exporters by way of providing interest subvention to mitigate hardships on account of global melt down.
As a measure to boost exports, pre and post shipment export credit for labour intensive exports i.e. textiles (including handlooms, carpets and handicrafts), leather gems and jewellery, marine products and SME sector have been provided an interest subvention of 2% upto 31.3.2009 subject to minimum rate of interest of 7% per annum. Since the interest subvention scheme which was originally sanctioned for an outlay of Rs.800 crore, has been extended upto March 2009, the present proposal approved by CCEA is for providing additional funds to the tune of Rs.450 crore. With this, the total financial support provided under Interest Subvention Scheme, so far, will be Rs.1250 crore.
Government of India has been concerned about the impact of global financial crisis on the Indian economy and a number of steps have been taken to deal with this problem. The steps announced included infusion of liquidity into the banking system addressing the problem being faced by various non-bank financing companies, RBI taking steps to ensure that bank credit is available to meet the expanded credit requirements of the economy keeping in view the contraction in credit from non bank sources, provision of adequate liquidity to the banks, easing of access to external commercial borrowing, increase in plan expenditure etc.
*****
"Loved reading this piece by anu?
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"
