Govt un­veils 3rd eco booster, fo­cuses on hous­ing, ex­ports

20,000cr Fund To Help Fin­ish Held-Up Flats

The Times of India (New Delhi edition) - - Front Page - TIMES NEWS NET­WORK

New Delhi: The gov­ern­ment on Satur­day an­nounced a set of mea­sures to boost sag­ging ex­ports, in­clud­ing a new WTO-com­pat­i­ble scheme to re­fund cen­tral and state levies. These mea­sures were part of the gov­ern­ment’s strat­egy to re­vive growth and ex­ports which have slumped, trig­ger­ing con­cerns about the health of the econ­omy.

Fi­nance min­is­ter Nir­mala Sithara­man also un­veiled steps to re­vive the sag­ging real es­tate sec­tor and pro­vide re­lief to home­buy­ers.

Sithara­man’s third booster shot for the econ­omy came a day af­ter the lat­est trade data re­vealed poor trade per­for­mance, with ex­ports fall­ing for the sec­ond time in three months, while im­ports have slid for three straight months now. One of the key an­nounce­ments was a new scheme, Re­mis­sion of Du­ties or Taxes on Ex­port Prod­uct to re­place Mer­chan­dise Ex­ports from In­dia Scheme.

The gov­ern­ment will also set up a nearly Rs 20,000-crore

stress fund for com­ple­tion of stalled af­ford­able and mid­dlein­come hous­ing projects that have not been clas­si­fied as non-per­form­ing as­sets and are not fac­ing in­sol­vency ac­tion.

Sithara­man said RoDTEP, which fol­lows a dis­pute at the WTO, with the US ac­cus­ing the gov­ern­ment of of­fer­ing sub­si­dies, will kick in from Jan­uary with prod­uct-wise de­tails to be an­nounced over the next few weeks. RoDTEP will re­sult in the gov­ern­ment fore­go­ing rev­enue of up to Rs 50,000 crore an­nu­ally — 36% higher than the Rs 36,615 crore bud­geted for MEIS.

The FM also an­nounced an au­to­mated mech­a­nism for re­fund of GST-re­lated tax credit of ex­porters to ad­dress acom­plaint that had not been ad­dressed for over two years. “...If fully au­to­mated re­fund mo­d­ule can de­liver GST re­funds to ex­porters in a timely man­ner, this should go a long way in im­prov­ing their work­ing cap­i­tal thereby pro­vid­ing much needed im­pe­tus to ex­ports” said Harpreet Singh, a part­ner at con­sult­ing firm KPMG.

Akey ini­tia­tive pi­loted by com­merce and in­dus­try min­is­ter Piyush Goyal — cheaper and eas­ier credit — was al

If fully au­to­mated re­fund mo­d­ule can de­liver GST re­funds to ex­porters in a timely man­ner, this should go a long way in im­prov­ing their work­ing cap­i­tal

HARPREET SINGH

so part of Sithara­man’s 24slide pre­sen­ta­tion, which will help ex­porters ac­cess ru­pee-based loans at around 7.6%, while forex loans may cost around 3.5%. The Rs 1,700-crore ini­tia­tive will see the Ex­port Credit Guar­an­tee Cor­po­ra­tion ex­pand the scope of the Ex­port Credit In­sur­ance Scheme. With the RBI’s sup­port, ad­e­quate forex re­sources will be made avail­able at rea­son­able cost to banks, which will sup­port ex­pan­sion of ex­port credit at lower rates, said an of­fi­cial.

“The scheme will pro­vide much-needed sup­port to ex­porters for ex­port­ing to coun­tries with lit­tle or more risks,” said FIEO pres­i­dent S K Saraf.

Full re­port on www.toi.in

To be linked to 10-year govt bonds, which is cur­rently at 6.63%

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