Centre launches Rs 497 crore RELIEF scheme to support exporters amid West Asia crisis<\/p>\n\n\n\n
CHANDIGARH, MAR 19 : The Union Government on Thursday launched the RELIEF (Resilience and Logistics Intervention for Export Facilitation) scheme with an outlay of Rs 497 crore to support Indian exporters facing disruptions due to the ongoing conflict in West Asia.<\/p>\n\n\n\n
According to a notification issued on March 19 by the Directorate General of Foreign Trade under the Ministry of Commerce and Industry, the scheme has been introduced under the Export Promotion Mission to address rising risks in exports caused by geopolitical tensions in the Gulf and West Asia maritime corridor.<\/p>\n\n\n\n
\u201cIn exercise of powers conferred by Section 3 and section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraphs 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby notifies a time limited Support for Indian Exporters, Resilience & Logistics Intervention for Export Facilitation (RELIEF), under the Export Promotion Mission(EPM). Details of the said intervention are submitted at Annexure enclosed. Effect of the Notification: A time-limited RELIEF intervention under the Export Promotion Mission, to be implemented through the Export Credit Guarantee Corporation of India (ECGC), is operationalised to address elevated export risks arising from geopolitical disruptions in the Gulf and West Asia maritime corridor,\u2019\u2019 the notification stated.<\/p>\n\n\n\n
The scheme will be implemented by the Export Credit Guarantee Corporation of India (ECGC) and will cover consignments meant for delivery or trans-shipment to countries including the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen.<\/p>\n\n\n\n
RELIEF consists of three main components aimed at easing the burden on exporters. The first component provides automatic extension of export obligations for Advance Authorisations and EPCG authorisations that are due between March 1 and May 31, 2026, extending them until August 31, 2026 without penalty. It also protects shipments already insured by ECGC during the period from February 14 to March 15.<\/p>\n\n\n\n
The second component focuses on encouraging ECGC coverage for upcoming export consignments over a three-month period from March 16 to June 15.<\/p>\n\n\n\n
The third component is designed to support MSME exporters who are not covered under ECGC. It offers partial reimbursement of increased freight and insurance costs during the period from February 14 to March 15. The estimated government support under this component is Rs 282 crore.<\/p>\n\n\n\n
The total expenditure of Rs 497 crore for the RELIEF scheme will be met from the existing budget under the Export Promotion Mission and will be released based on actual requirements, subject to verification and budget availability. The Export Promotion Mission Steering Committee may review the scheme based on evolving geopolitical conditions and recommend changes, extensions or withdrawal of any component if required.<\/p>\n\n\n\n
Speaking to the media in New Delhi, Secretary in the Commerce Ministry Rajesh Agarwal said, \u201cWe are announcing a new scheme under the export promotion mission, especially focused upon exporters exposed to these 17-18 geographies which have been impacted by the conflict to assuage some of the challenges that our exporters are facing.\u201d<\/p>\n\n\n\n
He also said that an inter-ministerial group (IMG), including representatives from various departments such as the commerce ministry, Ministry of Petroleum and Natural Gas, Ports and Shipping, Department of Financial Services, Ministry of External Affairs, the RBI and CBIC, has been formed. The group meets daily to monitor the situation based on cargo movement.<\/p>\n\n\n\n
Ranjit Singh Jossan, Vice President of the Basmati Rice Millers and Exporters Association, welcomed the move and thanked the government for its support during the crisis.<\/p>\n\n\n\n
\u201cAt a time when exporters were facing unprecedented uncertainty and rising logistics costs, the Government of India has stood firmly with us and ensured that the industry is not left to face these challenges alone.\u201d he said.<\/p>\n\n\n\n
He said that the scheme provides enhanced support for exporters already insured under ECGC for shipments between February 14 and March 15, including coverage of up to 100 per cent of losses due to war and political risks without any increase in premium, supported by an allocation of about Rs 56 crore.<\/p>\n\n\n\n
For new exporters, he said, the scheme offers up to 95 per cent loss coverage for shipments between March 16 and June 15, with premiums kept at pre-disruption levels and backed by an estimated Rs 159 crore.<\/p>\n\n\n\n
Jossan also highlighted the provision for MSME exporters not covered under ECGC. He said the scheme provides up to 50 per cent reimbursement of additional freight and insurance costs, or losses under FOB contracts, with a cap of Rs 50 lakh per exporter and a total allocation of Rs 282 crore.<\/p>\n\n\n\n
\u201cThe total allocation of around Rs 497 crore under the Export Promotion Mission reflects the government\u2019s strong commitment to sustaining exports, reducing the burden of extraordinary costs, preventing order cancellations, and protecting employment and supply chains,\u201d he said.<\/p>\n\n\n\n
-PTI<\/p>\n","protected":false},"excerpt":{"rendered":"
Centre launches Rs 497 crore RELIEF scheme to support exporters amid West Asia crisis CHANDIGARH, MAR 19 : The Union Government on Thursday launched the RELIEF (Resilience and Logistics Intervention<\/p>\n","protected":false},"author":1,"featured_media":149766,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[348],"tags":[1192],"class_list":["post-149765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national-news","tag-india"],"yoast_head":"\n