CNBC-TV18 has learnt that exporters have reiterated concerns over Remission of Duties and Taxes on Export Products (RoDTEP) rates as the wait for clarity continued even after a delay of eight months.
The exporting community of the country is currently facing a double-whammy. Firstly, the announcement of the much-awaited RoDTEP rates is facing a delay. Despite the scheme came into action from January 1, 2021, till now the rates have not been announced. Exporters feel that the delay in the announcement of rates is hurting their liquidity position, as they are unable to book fresh orders because of discounting of the rates since the rates are not available.
The second issue that they are facing is the dues that are still pending from the previous scheme that is the MEIS scheme. According to them, nearly Rs 15,000 crore of dues is pending with the Government of India. The government is yet to release these funds, dues for the period between April and December 2020.
Replacing the Merchandise Exports from India Scheme (MEIS), the government had announced RoDTEP scheme in line with the WTO norms.
Exporters approached finance ministry, commerce ministry, PMO for the clearance of the MEIS dues, and for clarity on RoDTEP rates.
There is now a new uncertainty on fund reallocation as the government announced ROSCTL scheme for garments segment (for export of apparels and made-ups from India). The government had allocated Rs 17,000 crore to the scheme in the Budget to clear the pending dues of exporters. In addition, Rs 2,000 crore was provided to clear the arrears of services exporters for 2019-20 under the now-defunct Service Exports from India Scheme (SEIS).
CNBC-TV18’s Timsy Jaipuria has more details.