The Government has approved the extension of Interest Equalization Scheme (IES) for Pre- and Post-Shipment Rupee Export Credit, with the same scope and coverage, for a further period of three months, i.e., up to 30 September 2021.
The extension takes effect from 1 July 2021 and ends on 30 September 2021 covering a period of three months.
The move will be beneficial for those exporters who have rupee account for pre- and post-shipment credit.
The Apparel Export Promotion Council (AEPC) has welcomed this step. Dr. A. Sakthivel, Chairman, AEPC said, As the MSME sector is still struggling from lack of affordable working capital, this move will help them.”
He further added that it is a good move by the Government. The interest subvention scheme will help apparel exporters to reduce their cost of capital in these difficult times and thereby make them more competitive in international markets.
The Council has been updating the Government about the needs and concerns of the apparel exporters, maximum of which are in the MSME segment, and extension of the IES export credit was one of them.