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With Economy looking up, the Government decides to clear Exporters dues to the tune of rs 56,000 crores in the next few months

The Government has decided to budget Rs 56,027 crore in the current financial year 2021-22 itself in order to disburse all pending export incentives due to exporters. It has decided to  clear unpaid incentives worth over Rs 56,000 crore to exporters with some arrears as old as two years.

A statement released by the Commerce  Ministry said the government has decided to budget Rs 56,027 crore in this Financial Year 2021-22 itself in order to disburse all pending export incentives due to exporters. This decision to clear all pending export incentives within this financial year, will lead to even more rapid export growth in coming months, it added.

The move will create Rs 75,000 crore liquidity for exporters

Commerce Minister Piyush Goyal said along with tax refunds, the move will create Rs 75,000 crore liquidity for exporters.

While Commerce Ministry was pushing the move for quite some in a bid to boost exports, it was being stalled by revenue department which had not released funds to clear the dues. The Finance Ministry, however, changed its stance after economic activity picked up after the second wave of the Covid-19 pandemic.

Goyal said claims will have to be filed by exporters on the portal until December 31, which means the payment will be made in the following months.

More than 45,000 exporters to benefit

Benefits would be disbursed to more than 45,000 exporters, out of which about 98 per cent are small exporters in the MSME category. The amount of Rs 56,027 crores of arrears is for different export promotion and remission schemes: MEIS (Rs 33,010 crore), SEIS (Rs 10,002 crore), RoSCTL (Rs 5,286 cr), RoSL (Rs 330 crore), RoDTEP (Rs 2,568 crore), other legacy Schemes like Target Plus etc (Rs 4,831 crore). This amount is over and above duty remission amount of Rs 12,454 crore for the RoDTEP scheme and Rs 6,946 crore for RoSCTL scheme already announced for exports made in this year i.e. FY 2021-22.

For Merchandise Exports, all sectors covered under MEIS, such as pharmaceuticals, iron and steel, engineering, chemicals, fisheries, agriculture and allied sectors, auto and auto components Export claims relating to earlier years will need to be filed by the exporters by December 31, 2021 beyond which they will become time barred.

The online IT portal will be enabled shortly to accept MEIS and other scrip based applications and would be integrated with a robust mechanism set up by the Ministry of Finance to monitor provisioning and disbursement of the export incentives under a budgetary framework.

Objective of this decision to provide timely support to the vital pillar of Indian economy

A decision to clear all pending export incentives within this Financial Year itself despite other budgetary commitments arising out of the pandemic is with the objective of providing timely and crucial support to this vital pillar of Indian economy.

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