11th September 2021, Mumbai:
The Central Government has agreed to allocate Rs. 56,027 crore in FY21-22 alone to distribute all pending export incentives owed to exporters, providing a significant boost to exporters.
This figure comprises claims for MEIS, SEIS, RoSL, RoSCTL, and other scrip-based schemes from previous policies, as well as remission support for RoDTEP and RoSCTL for exports in the fourth quarter of FY20-21. According to the government, rewards would be distributed to over 45,000 exporters, with roughly 98 percent of them being small exporters in the MSME category.
The government said in a statement that the Rs. 56,027 crore arrears are for various export promotion and remission schemes, including MEIS (Rs. 33,010 crore), SEIS (Rs. 10,002 crore), RoSCTL (Rs. 5,286 crore), RoSL (Rs. 330 crore), RoDTEP (Rs. 2,568 crore), and other legacy schemes such as Target Plus (Rs. 4,831 crore).
This sum is in addition to the Rs. 12,454 crore in duty remission for the RoDTEP program and Rs. 6,946 crore for the RoSCTL scheme already announced for shipments produced this year (FY21-22).
Under RoSCTL and RoSL, the clothing sector would catch up on backlogs, and all players in the interrelated supply chains would be bolstered to satisfy holiday season demand in foreign markets. Export claims for previous years must be filed by December 31, 2021, or they will become time-barred.
The online IT site will soon be able to accept MEIS and other script-based applications, and it will be linked to a strong mechanism established by the Ministry of Finance to track the allocation and disbursement of export incentives within a budgetary framework.
The decision to clear all pending export incentives within this fiscal year, notwithstanding other financial constraints deriving from the epidemic, is intended to provide timely and critical assistance to this important pillar of the Indian economy.
It should be noted that many trade associations and business leaders have repeatedly recommended the clearing of these monies. Tirupur, India's largest textile manufacturing cluster, has a RoSCTL claim for Rs. 3,750 crores outstanding.
Since January 1, 2021, RoSCTL benefits have been pending. Exporters will have additional working capital as a result of the availability of these monies. Exporters of apparel have applauded the government's move. Dr. A. Sakthivel, Chairman of the Garment Export Promotion Council (AEPC), stated that it will assist apparel exporters in securing more export orders for the next festive season, allowing the nation to meet its $400 billion goods export objective.