a. |
To encourage the export manufacturing firms exporting at least 80% of their products will be eligible for the following incentives and facilities:
i) They will be entitled financial incentives and facilities including Bank credit as 100% export oriented industries. But the taxation facilities allowable to 100% export oriented industries will not be applicable for them.
ii) These industries will be able to sell 20% of their products in the local market subject to payment of normal duties and taxes. |
b. |
Exporters have been given following three types of coverage under Export Credit Guarantee scheme : |
|
Export Credit Guarantee ( pre-shipment)
Export Credit Guarantee ( post-shipment)
and Comprehensive Guarantee . |
c. |
Facilities for import of raw materials |
d. |
Income tax rebate on export earnings. |
e. |
Reduced air freight for export of all crash program items. |
f. |
Enhancement of time limit of export credit from 180 days to 270 days. |
g. |
Reduction of bank interest rates: interest on loan for export is fixed at 8%-10%. |
h. |
Opportunity for use of foreign exchange by the exporters. Exporters are given
opportunities to retain 50% of the export earning in their own account in normal cases
and 10% of export earning in cases of lower value addition . |
i. |
Fifteen percent (15%) Cash incentives is allowed for some handloom items. |
