DGFT issues guidelines to roll out credit assistance measure for e-commerce exporters under EPM

New Delhi, Mar 6 (PTI) MSMEs with a proven track record of at least six months of exports through postal or courier channels and having inventory in overseas warehouses for e-commerce fulfilment will be eligible for credit assistance under the Rs 25,060 crore Export Promotion Mission, the DGFT said on Friday.

To support exporters using digital channels, the commerce ministry last month announced credit facilities with interest subvention and partial credit guarantees. It is part of the export promotion mission (EPM).

The intervention seeks to enhance access to working capital for Micro, Small and Medium Enterprises (MSMEs) involved in international value chains through e-commerce, enabling them to manufacture goods in advance of anticipated demand and scale their participation in global markets.

Under this, credit guarantee cover will be available to banks for credit assistance extended by them in the form of cash credit, overdraft, or other working capital facilities to eligible beneficiary entities, in accordance with the coverage parameters.

These facilities will also be supported through interest subvention with notified ceilings.

The intervention is being operationalised on a pilot basis through the Export-Import Bank of India (Exim Bank).

In a trade notice, the Directorate General of Foreign Trade (DGFT) said new MSMEs, involved in international value chains through e-commerce with prior domestic e-commerce experience shall also be eligible, subject to a minimum of one year of regular domestic e-commerce operations.

"Support shall be available to the exporters as per eligibility... Proven track record of at least six months in exporting through postal or courier; current inventory placed in overseas warehouses for e-commerce export fulfilment; and current stock placed in warehouses set up under e-commerce export hub facility," it said.

The DGFT has also issued guidelines for the launch of support for emerging export opportunities under the mission.

The intervention will provide risk-sharing support for eligible trade finance transactions supported by banks.

It added that Exim Bank, along with the National Credit Guarantee Trustee Company Ltd, shall be the implementing agency for the intervention. PTI RR TRB