Govt may soon come out with comprehensive gold policy Air India receives `1,000 cr from NSSF

NEW DELHI: The government is expected to come out with a comprehensive gold policy soon to promote the metal industry and the gems and jewellery sector, which is a major contributor to the export basket, sources said. The policy also aims at creating jobs in the gold sector.

It is likely to focus on promoting domestic gold industry and exports of gems and jewellery, which contributes about 15 per cent to total merchandise outbound shipments, they said.

In February, Finance Minister Arun jaitley had announced formulation of a comprehensive gold policy to develop gold as an asset class. Government thinktank NITI Aayog in August suggested the government to bring down import duty on gold from the existing level of 10 per cent and also asked to slash the GST rate on the precious metal from the current 3 per cent.

Besides, it had recommended review and revamp of the gold monetisation scheme, sovereign gold bond scheme besides setting up of a gold board and bullion exchanges across the country to have greater financialisation of the yellow metal. The report had also suggested exemption of 3 per cent Integrated Goods and Service Tax (IGST) to be paid by exporter in line with customs duty with a provision of bank guarantee.

To promote exports, the Gems and Jewellery Export Promotion Council (GJEPC) has asked for support in terms of increasing incentives under the Merchandise Exports from India Scheme (MEIS) to boost shipments.

Under MEIS, the government provides duty benefits depending on product and country. Rewards under the scheme are payable as percentage of realised free-onboard value and MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty. MUMBAI: Cash-strapped Air India has raised Rs 1,000 crore from the National Small Savings Fund and expects to mop up Rs 500 crore through shortterm borrowings next week, an airline source said Thursday.

The ailing national carrier would be utilising the funds to mainly meet its working capital requirements.

The fresh funds are in addition to the Rs 980 crore received towards equity infusion by way of supplementary grants from the central government in September.

"We have received Rs 1,000 crore by way of loan from the National Small Savings Fund last week. This loan has been availed at a lower interest rate. However, we have to repay the the loan amount by March next year," the official said.

In early September, the carrier sought bids for garnering Rs 500 crore through shortterm borrowings to meet its working capital requirements. The carrier had fixed September 10 as the deadline for submission of bids.

However, the deadline was extended the date to October 31 after it failed to get any response.