TEA thanks PM for extension of interest equalisation scheme
As per the revised rates, 3% interest subsidy is given on pre and post shipment rupee export credit for manufacturer MSMEs
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Coimbatore: The Tirupur Exporters Association (TEA) on Wednesday thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the approval given for extension of Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit up to March 31, 2024 with retrospective effect from October last year.
As per the revised rates, 3 per cent interest subsidy is given on Pre and Post Shipment Rupee Export Credit for Manufacturer MSMEs and 2 per cent interest subsidy for Non-MSME Manufacturer and Merchant Exporters.
The extension given up to 2024, as requested by the association in all its representations, will be helpful to knitwear exporters to work out their costing accordingly while taking up the orders, TEA President Raja M Shanmugham said in a statement here.
The interest subsidy will be helpful to enhance the competitiveness of the MSMEs as 95 per cent of readymade garment exporting units are in MSME sector, a major requirement to sustain in the highly-competitive global market, he said.
The Reserve Bank of India (RBI) had on Tuesday issued modified norms on Interest Equalization Scheme for export credit after the extension of the scheme till March 2024 by the government. Earlier, the government approved the extension of the Interest Equalization Scheme for pre and post-shipment rupee export credit up to March 31, 2024. The extension takes effect from October 1, 2021, and ends on March 31, 2024, the RBI said in a notification.
