The
Presidents / CEOs,
All Banks
Dear
Sirs / Madam,
EXPORT
FINANCE SCHEME-RELAXATIONS TO
THE EXPORTERS OF LEAHTER GARMENTS FOR FY 2006-07
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.