Please refer to the instructions on the Export Finance Scheme relating to the performance requirements against loans obtained under both parts of the Scheme.

2. In view of the circumstances particular to the Leather Garments industry in general and those impacting exporters of Leather Garments, the following relief is being provided in respect of refinance availed by them during FY 2006-07:-

a. In case of Part I, the exporters of leather garments shall be required to provide evidence of shipments of eligible goods to the extent of 75% of the refinance loans obtained during FY 2006-07 instead of 100% of the loan amount.
b. Under Part II of the Scheme, the required performance for financing facilities availed during FY 2006-07 has been reduced to 1.5 times as against existing performance requirements of 2.0 times.
c. In case the exporter has failed to make shipment as prescribed under Part I, including delay in shipment and achieve performance under Part II as per (a) and (b) above, fine shall be computed as per the rate prescribed under the Scheme. However, fine so computed shall be recovered to the extent of 75% of the amount involved.
3. The entitlement of limits for the FY 2007-08 shall, however, continue to be fixed as per existing criteria / instructions.
4. Other instructions on the subject shall remain unchanged.

Please acknowledge receipt.