By IANS,
New Delhi: The Cabinet Committee on Economic Affairs Thursday approved Rs.1,400 crore interest subsidy to augment exports of labour intensive products.
“The measure will mitigate the effects of global meltdown across labour intensive export sectors and help them to be internationally competitive and achieve their export targets,” the Ministry of Commerce and Industry said in a statement.
The CCEA approved provision of Rs.404 crore and also approved an additional amount of Rs.996 crore for meeting pending interest subvention claims of banks, as requested by the Reserve Bank of India, the statement said.
Under the first scheme of subvention, the RBI had originally estimated the requirement as Rs.1,350 crore for the period from July 1, 2007 to Sep 30, 2008.
As regards the second scheme of subvention from Dec 1, 2008 to March 30, 2010, the RBI estimated the requirement of an amount Rs.1,250 crore.
CCEA approved release of Rs.800 crore and Rs.450 crore in its meetings dated 21.2.2008 and 23.2.2009, respectively, for interest subvention.
“The balance amount to be released to Reserve Bank of India is Rs.1,400 crore,” it said.