The Presidents / Chief Executives,

All Banks

Dear Sirs/ Madam,

HANDKNOTTED CARPETS - MATCHING PERFROMANCE

REQUIREMENT UNDER EXPORT FINANCE SCHEME PART- II

Please refer to Para 2 of our SME & MFD Circular No. 03 dated 31st July, 2007 relating to roll over of refinance loans under Export Finance Scheme, Part II upon reporting on Form EP after completion of shipments equal to 70% of the loans availed from July till date.

2. It has been decided to revise the existing requirement of shipment for the exporters of Hand-knotted carpets for the FY2007-08 from 70% to 60% of average loans taken from July, 2007 till date. Thus the exporter of hand knotted carpets will be eligible for roll over of the refinance facility under Part II in case they show 60% of shipment on Form EP.
3. Further, the performance requirement of Hand knotted carpets for FY 2007-08 has also been revised from 2.0 times to 1.5 times.
4. All other instructions on the subject / Scheme shall, however, remain unchanged.

Please acknowledge receipt.