Anand Sharma Announces New
Incentives for Exporters
Anand Sharma, Union Minister of
Commerce and Industry, while addressing the media on 12 January, has announced a series of new incentives for exporters.
These are as follows:
1. New Products under Focus Product Scheme (FPS):
1.1. 112 new products added
under FPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports
to all markets.
Major sectors include
Engineering, Electronics, Rubber, Chemicals, Plastics, Carton boxes and Egg
powder.
1.2. 113 new products at 8 digit level
given higher benefits @ 5% of FOB value of exports under Special FPS on exports
to all markets.
Major sectors include Hand
Tools, parts of agriculture & horticulture machinery, sewing machines and
parts, liquid pumps, nuts, bolts, washers, screws, staplers, and parts of
machinery for soldering, brazing and welding.
2. New Products and New Markets under Market Linked
Focus Product Scheme (MLFPS):
2.1. 1837 new products added
under MLFPS at 8 digit level, eligible for benefits @ 2% of FOB value of
exports to specified markets.
Major sectors include Machine
Tools, Earth moving equipments, Transmission towers, Electrical and Power
Equipments, Steel Tubes, pipes and galvanized sheets, Compressors, Iron and
Steel Structures, Auto components, Three wheelers and cotton woven fabrics.
(Chemicals have been included for providing benefit for a limited period of 6
months).
1. Two new major markets viz. China and Japan added under MLFPS.
3. New products under Vishesh
Krishi and Gram Udyog Yojana (VKGUY):
Sesame seeds and minor coconut
products added under VKGUY scheme, eligible for benefits @ 5% of FOB value of
exports to all markets.
4. New market added under Focus market Scheme
(FMS):
Timor Leste
added as new FMS country, eligible for benefits @ 3% of FOB value of exports of
all products.
5. Support under Market Access Initiative (MAI) scheme, for setting up
of Warehouse in Latin America by Export Promotion Council for Handicrafts.
6. Issues taken up with Ministry of
Finance (on which MoF is still to take a final view)
6.1 To allow reduced rate of interest for Dollar credit at LIBOR
plus 1% (instead of LIBOR plus 3.5%).
6.2 Continuation of Interest Subvention of 2%
provided to labour incentive sectors viz. Textiles (including handlooms),
Handicrafts, Carpets, Leather, Gems & Jewellery, Marine products and SMEs.
6.2 Providing interest
subvention of 2% to some additional sectors viz. specified Engineering sectors
and Chemicals.
6.3 To request RBI to instruct
commercial banks for non-crystallization of overdue export proceeds for a
period of 6months from due date (instead of 1 month at present) in respect of
two sectors viz. Carpets and handicrafts.
[Source: PIB Press Releases
dated 12 January 2010]
Machine Tufted
Bathmats to be Treated as “Hand Made”
Chemicals Eligible for Market
Linked Focus Products (2%) Incentive
Cotton Woven Fabrics
Eligible for Market Linked Focus Products (2%)