Extension of IDEA scheme will boost export from MSMEs
Updated: Nov 19, 2015 04:14:28pm
New Delhi, Nov 19 (KNN) The Union Cabinet’s decision to extend for five years Indian Development and Economic Assistance Scheme (IDEAS) will be a boon for the MSME exporters as many of them are into exporting projects on Power and other infrastructure sector to Africa and other developing countries.
“It is expected extension of IDEAS will boost project export by Indian Companies to Africa and other developing countries. Leading MSMEs are exporting projects in Power and other infrastructure sector and there export plans were at stake due to delay in extension of the scheme,” said Debashish Bandopadhyay, Consultant with FISME.
The Cabinet on Wednesday extended for five years Indian Development and Economic Assistance Scheme (IDEAS) under which line of credit is provided to African as well as other developing nations with interest subvention.
Government has been providing Line of Credit (LoC) under the (IDEAS). “since the objectives of the scheme continue to be relevant, it has been decided to give second extension to the scheme for another five years i.e. from 2015-16 to 2019-20,” an official statement said.
Financial support under the scheme includes the interest equalisation support on existing LoCs as well as new LoCs to be issued during 2015-16 to 2019-2020.
The Ministry of External Affairs will select specific projects keeping in view diplomatic considerations and requests received from various developing countries and shall forward the proposal to DEA for seeking the approval of the Finance Minister.
The LoC will be operated through Export Import Bank of India or any other willing bank/ lending agency. The lending bank will raise resources from the market to finance the LoCs. Government will provide the Interest Equalisation Support (IES) to the lending bank under the scheme. (KNN Bureau)
“It is expected extension of IDEAS will boost project export by Indian Companies to Africa and other developing countries. Leading MSMEs are exporting projects in Power and other infrastructure sector and there export plans were at stake due to delay in extension of the scheme,” said Debashish Bandopadhyay, Consultant with FISME.
The Cabinet on Wednesday extended for five years Indian Development and Economic Assistance Scheme (IDEAS) under which line of credit is provided to African as well as other developing nations with interest subvention.
Government has been providing Line of Credit (LoC) under the (IDEAS). “since the objectives of the scheme continue to be relevant, it has been decided to give second extension to the scheme for another five years i.e. from 2015-16 to 2019-20,” an official statement said.
Financial support under the scheme includes the interest equalisation support on existing LoCs as well as new LoCs to be issued during 2015-16 to 2019-2020.
The Ministry of External Affairs will select specific projects keeping in view diplomatic considerations and requests received from various developing countries and shall forward the proposal to DEA for seeking the approval of the Finance Minister.
The LoC will be operated through Export Import Bank of India or any other willing bank/ lending agency. The lending bank will raise resources from the market to finance the LoCs. Government will provide the Interest Equalisation Support (IES) to the lending bank under the scheme. (KNN Bureau)
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