New Delhi, March 6 MSMEs with a proven track record of at least six months of exports through postal or courier channels and having inventory in overseas warehouses for e-commerce fulfillment will be eligible for credit assistance under the Rs 25,060 crore Export Promotion Mission, the DGFT said on Friday.
To support exporters using digital channels, the commerce ministry last month announced credit facilities with interest subvention and partial credit guarantees. This is part of the export promotion mission (EPM).
The intervention aims to enhance access to working capital for Micro, Small and Medium Enterprises (MSMEs) involved in international value chains through e-commerce, enabling them to manufacture goods in anticipation of demand and scale their participation in global markets.
Under this, credit guarantee cover will be available to banks for credit assistance extended to eligible beneficiary entities in the form of cash credit, overdraft, or other working capital facilities, in accordance with the coverage parameters.
These facilities will also be supported through interest subvention with notified ceilings.
The intervention is being operationalized on a pilot basis through the Export-Import Bank of India (Exim Bank).
In a trade notice, the Directorate General of Foreign Trade (DGFT) said that new MSMEs, involved in international value chains through e-commerce with prior domestic e-commerce experience, shall also be eligible, subject to a minimum of one year of regular domestic e-commerce operations.
"Support will be available to exporters as per eligibility criteria... Proven track record of at least six months in exporting through postal or courier; current inventory placed in overseas warehouses for e-commerce export fulfillment; and current stock placed in warehouses set up under e-commerce export hub facility," it said.
The DGFT has also issued guidelines for the launch of support for emerging export opportunities under the mission.
The intervention will provide risk-sharing support for eligible trade finance transactions supported by banks.
It added that Exim Bank, along with the National Credit Guarantee Trustee Company Ltd, shall be the implementing agency for the intervention.
