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The EEPC has sought an alternative to the existing interest subvention scheme. The scheme, currently provided by the Centre, has been objected to by the WTO.
According to Ravi Sehgal, Chairman, EEPC, the Centre provides interest subvention to the extent of three to five per cent on bank credit.
“We need an alternative to the interest subvention scheme for availing of bank credit, since this has been objected to by the WTO. This will not remain for long,” he said, on the sidelines of an award ceremony organised by the council here on Saturday.
Banks are working on the matter, he said, adding that the MSME sector could get an interest rate of around 7 per cent.
Apart from the interest subvention scheme, the WTO has also objected to the Merchandise Exports from India (MEIS) scheme. MEIS, too, is expected to be replaced soon.
“We want a refund of embedded taxes,” Sehgal said. Embedded taxes vary between 12–23 per cent for export goods.
Engineering exports are expected to be at $85 billion this fiscal. In FY19, engineering exports stood at $81 billion.
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