Govt caps interest subvention amount at Rs 10 cr per IEC in a fiscal

The government on Thursday capped the amount of interest subvention at Rs 10 crore per IEC import-export code holder in one financial year.In March last year, the RBI extended the interest equalisation scheme for pre and post-shipment rupee credit for MSME exporters till March 2024 with the objective of boosting outbound shipments.

The government on Thursday capped the amount of interest subvention at Rs 10 crore per IEC (import-export code) holder in one financial year.

In March last year, the RBI extended the interest equalisation scheme for pre and post-shipment rupee credit for MSME exporters till March 2024 with the objective of boosting outbound shipments. Exporters get subsidies under the 'Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit'. ''The annual net subvention amount would be capped at Rs 10 crore per IEC in a given financial year. All disbursements made from April 1, 2023, shall be counted for an IEC for the current financial year,'' the directorate general of foreign trade (DGFT) said in a trade notice.

The interest equalisation rates under the scheme have been revised to 2 per cent and 3 per cent for specified categories of MSME manufacturer exporters.

Import-Export Code (IEC) is an important document required to undertake the business of inbound and outbound shipments.