Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
2011-05-27

FIEO demands export credit

The popular Duty Entitlement Pass Book (DEPB) scheme is due to end on June 30 and the Finance Ministry is against giving it any extension.

A report in today's issue of The Hindu Business Line said that the Government is considering a proposal to bring back the 2 percent interest subvention scheme soon and possibly with retrospective effect from April 1. The Finance Minister and the Commerce and Industry Minister are scheduled to meet on May 30 in this regard, sources told the newspaper

Exporters are complaining that the withdrawal of the interest subsidy from April 1 has resulted in the rate of pre and post-shipment export finance increasing by over 50 percent.

According to the Federation of Indian Export Organisations (FIEO), the net interest rate on pre and post-shipment rupee credit to exporters has gone up from 7 percent (with the 2 percent interest subsidy) on April 1, 2010 to 10.75-11.25 per cent on May 12 (after the interest subsidy was withdrawn on April 1)

Meanwhile the FIEO is demanding export credit at 7 percent for small and labour-intensive sectors and 9 percent for other exporters. Export credit as a percentage of net banking credit has fallen from 9.8 percent on March 24, 2000, to 4.1 percent on December 31, 2010, it said.

Mr Ramu S. Deora, President, FIEO, said he has written to the Prime Minister, the Finance Minister and the Cabinet Secretary on the issue. He said it will be tough to achieve the Government's ambitious target of doubling exports to $500 billion by 2013-14 if exporters are burdened with high interest rates.

The popular Duty Entitlement Pass Book (DEPB) scheme is due to end on June 30 and the Finance Ministry is against giving it any extension.

The government is considering a hike in all-India drawback rates. Exporters also pitched for continuation of the DEPB scheme till the introduction of the Goods and Services Tax, the sources told the newspaper.

Related opportunities
  • Gyms and Fitness Centres
    Chisel- An initiative by Virat KohliWith celebrity-backed ventures becoming the..
    Locations looking for expansion Karnataka
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 3500 sq ft- 7000 sq ft
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • HR & Recruitment
    About Us: SMVA Consultants is a MSME Certified. professional human resource..
    Locations looking for expansion West Bengal
    Establishment year 2013
    Franchising Launch Date 2018
    Investment size Rs. 2lac - 5lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater kolkata West Bengal
  • Quick Service Restaurants
    About Us: Pizza is easily recognised food item in the world,..
    Locations looking for expansion Gujarat
    Establishment year 2012
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
  • Juices / Smoothies / Dairy parlors
    About Us: Ranging from Super Tasted Bubble Tea’s to Shakes, Sandwiches,..
    Locations looking for expansion Andhra pradesh
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater hyderabad Andhra pradesh
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts