FM announces fresh concessions to exporters

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New Delhi, Nov 29 (UNI) Finance Minister P Chidambaram today announced an additional two per cent rebate in the rate of interest on export credit to the sectors of leather and leather manufacturers, marine products, handicrafts and all categories of textiles under the existing scheme, including RMG and carpets but excluding man-made fibre.

This was the third package that the government has announced for the exporters on account of rupee appreciation against dollar.

Replying to a debate on Supplementary Demands for Grants (General) for 2007-08 in the Lok Sabha, he said the government had already announced two packages for the affected categories of exporters in July and October this year.

After his reply, the House passed the Supplementary Demands for Grants (General) totalling Rs 33290.87 crore and related Appropriation Bill and additional demands of grants for 2005-06 for Rs 97205 crore.

Mr Chidambaram said the total subvention would be subject to the condition that the interest rate, after the rebate, would not fall below 7 per cent, which is the rate applicable to the agriculture sector under priority lending.

The period of validity would be November 1, 2007 to March 31, 2008.

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