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Vide
Circular IECD No.5/04.02.01/2001-02 dated Sept 24, 2001, the RBI announced
special financial package for large value exports of select products, which are
internationally competitive and have high value addition. The products eligible for special financial
package were pharmaceuticals, agro-chemicals, transport equipments, cement,
Iron and Steel, electrical machinery. Manufacturer-exporters of these products
with export contracts of Rs.100 Crore and above in value terms in one year will
be eligible for the special financial package.
The validity period of the financial package will be from Oct 1, 2001 to
Sept 30, 2002.
The
exporters covered under the special financial package will be extended credit
at concessional rate of interest for an extended period upto 365 days at
pre-shipment as well as post-shipment stages as against the maximum periods of
270 days and 180 days respectively applicable for normal export credits.
Further, the rate of interest of export credit for period beyond 270 days and upto 365 days at pre-shipment stage will be the same as for normal pre-shipment credit for period beyond 180 days and upto 270 days. Similarly, post-shipment credit will be extended for periods beyond 180 days and upto 365 days at the same rate of interest as applicable for normal post-shipment credit for the period beyond 90 days and upto 180 days.
Directions
were also given to the authorized dealers to extend general permission for
realization of export proceeds upto 365 days in respect of exports covered
under the special financial package.
It
is glad to inform that the RBI extended the aforesaid special financial package
to leather & leather products also, vide IECD No.12/04.02.01/2001-02 dated
Nov 22, 2001.
Interested
members may contact their banks for further details.
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