Cabinet approves long-awaited interest subvention scheme for exporters

The interest subvention (subsidy) scheme now re-named interest equalisation scheme was approved by the Cabinet Committee on Economic Affairs (CCEA).

• It will be implemented with retrospective effect from April 1, 2015 and will cost the exchequer an estimated Rs.2,500 crore-Rs.2,700 crore, annually.

Interest Equalisation Scheme :

• The scheme would be available to all exports of micro small and medium enterprises (MSME) and 416 other items spread across 25 sectors.
• The sectors covered are mostly labour intensive and include agriculture/food items, auto-components, bicycle parts, handicrafts, electrical engineering items and machinery, telecom equipment, handmade carpet (including silk), handloom products, coir items, jute, readymade garments and made ups, toys, sports goods, paper and stationary, leather goods and ceramics. The scheme, however, will not be available for merchant exporters.