(FE)
After offering a relief package to the poor and the vulnerable, the government is gearing up for the next round of economic measures that will likely focus on the needs of specific sectors — including MSMEs, exports, tourism, civil aviation and animal husbandry — that have been battered by the Covid-19 outbreak.
Sources told FE that some of the proposals being considered are interest subsidy on loans to MSMEs and collateral-free advances to eligible small businesses with a good repayment history. The government might also impress upon the central bank to consider extending beyond December 2020 a loan restructuring scheme for MSMEs, if the crisis stretches deep into the next fiscal. The government has already asked state-run banks to ensure adequate credit flow to MSMEs.
For exporters, the commerce ministry is considering a slew of proposals, including extending the validity of import permits in certain cases and relaxing the re-export deadline against the duty-free import of inputs under certain schemes, such as the Advance Authorisation Scheme (AAS) and the Export Promotion Capital Goods (EPCG) Scheme. It is also considering a proposal to waive or defer the payment of ECGC insurance premium on pre–shipment credit.
