Category: Startups

Norms fixed for implementation of Ease of Doing Business (EoDB) in country to enable state-specific reforms

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Norms fixed for implementation of Ease of Doing Business (EoDB) in country to enable state-specific reforms


20 States allowed additional borrowing of Rs 39,521 crore during 2020-21 for implementation of EoDB reform

The Union Government has fixed norms for implementation of Ease of Doing Business (EoDB) in the country to enable state-specific reforms. This was stated in a written reply by Union Minister of State for Finance Shri Pankaj Chaudhary to a question in Lok Sabha today.

The Minister stated that in order to strengthen resources in the hands of State Governments in the wake of unprecedented COVID-19 pandemic, the Union Government addressed to all the States, laid out an additional borrowing of 0.25% for each reform of the Gross State Domestic Product (GSDP) to the States for FY 2020-21 subject to implementation of following specific state level reforms:

  1. Implementation of One Nation One Ration Card System;
  2. Ease of Doing Business reform;
  3. Urban Local body/ utility reforms and
  4. Power Sector reforms.

The Minister stated that twenty (20) states were allowed additional borrowing of Rs 39,521 crore during 2020-21 for implementation of EoDB reform and it is a continuous process and its outcome would be visible in due course. The list of States that have completely implemented the reform on EoDB are below: –

S. No.

State /UT

Status on Implementation of EoDB Reforms -Fully implemented.

1

Andhra Pradesh

Fully Implemented.

2

Karnataka

3

Madhya Pradesh

4

Tamil Nadu

5

Telangana

6

Rajasthan

7

Kerala

8

Odisha

9

Himachal Pradesh

10

Haryana

11

Assam

12

Gujarat

13

Punjab

14

Arunachal Pradesh

15

Uttar Pradesh

16

Uttarakhand

17

Meghalaya

18

Chhattisgarh

19

Tripura

20

Goa

Ministry of Finance Press Release dated 26 July 2021

In 2020-21, India exported fruits and vegetables valued at Rs 11,019 crore compared to Rs 10,114 crore worth of exports in 2019-20

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In a big boost to AgriBusiness, First consignment of vegetables exported to UAE from Uttarakhand


In 2020-21, India exported fruits and vegetables valued at Rs 11,019 crore compared to Rs 10,114 crore worth of exports in 2019-20

In a major boost to agricultural produce exports from Uttarakhand, first consignment of vegetables including curry leaf, okra, pear and bitter gourd sourced from the farmers of Haridwar, was exported today to Dubai, United Arab Emirates.

The exports of vegetables come after a consignment of millets grown in Uttarakhand was exported to Denmark in May, 2021.

APEDA, in collaboration with Uttarakhand Agriculture Produce Marketing Board (UKAPMB) & Just Organik, an exporter, sourced & processed ragi (finger millet), and jhingora (barnyard millet) from farmers in Uttarakhand for exports, which meets the organic certification standards of the European Union.

The Uttarakhand government has been supporting organic farming. UKAPMB, through a unique initiative, has been supporting thousands of farmers for organic certification. These farmers produce mainly millets such as Ragi, Barnyard millet, Amaranthus etc.

Agricultural and Processed Food Products Export Development Authority (APEDA) has been carrying out promotional activities to bring Uttarakhand on the agricultural and processed food products export map of India. APEDA is planning to provide financial assistance for setting up a pack house in Uttarakhand which would fulfil the mandatory requirement or infrastructure for export of fresh fruits and vegetables to the international market.

APEDA would continue to focus on the Uttarakhand region both in terms of capacity building, quality upgradation, and infrastructure development by linking buyers to farmers through strengthening the entire supply chain of agricultural produce.

In 2020-21, India exported fruits and vegetables valued at Rs 11,019 crore compared to Rs 10,114 crore worth of exports in 2019-20, which is an increase of close to 9%.

APEDA undertakes market promotion activities for export of food products, market intelligence for making informed decisions, international exposure, skill development, capacity building and high-quality packaging. 

Ministry of Commerce & Industry 26 July 2021

Kandla becomes first Green SEZ

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Achieves CII’s IGBC ( Indian Green Building Council) Green Cities Platinum Rating

IGBC Green Platinum rating awarded to Kandla SEZ

Government of India working towards ensuring environmentally sustainable development

Kandla SEZ (KASEZ) was awarded IGBC Platinum Rating today. KASEZ is the First Green SEZ to achieve the IGBC Green Cities Platinum Rating for Existing Cities.

The plaque was presented to KASEZ team consisting of Shri Satyadeep Mahapatra, Joint Development Commissioner and Shri Chandan Singh, Appraiser in the presence of senior officials of the Department Commerce and DGFT.

The efforts of KASEZ team were applauded especially noting the fact that this was accomplished in Bhuj region where water conservation and afforestation are critical interventions. This was major achievement and is part of activities envisaged under the commitment of the Government to the Green SEZs Mission as part of celebrations marking India@75 – Azadi ka Amrut Mahotsav.  It may be noted that Government of India working towards ensuring environmentally sustainable development through a series of measures and efforts that encompass many Ministries.

IGBC Platinum rating has been awarded for ‘Green master planning, policy initiatives and implementation of green infrastructure’ by CII’s Indian Green Building Council (IGBC).

The recognition is set to pave way for all the other SEZs in the country to emulate the green initiative and efforts of Kandla SEZ.

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Ministry of Commerce & Industry Press Release dated 26 July 2021

Government takes various initiatives to boost Industrial Manufacturing

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Government takes various initiatives to boost Industrial Manufacturing.


Takes steps to uplift the Startups and promote ‘vocal for local’ campaign and e-Commerce

Government of India has taken several steps to improve the quality standards of products manufactured under the AatmaNirbhar Bharat Campaign. These inter alia include :


  1.     Quality Control Orders (QCOs): Since the announcement of AatmaNirbhar Bharat campaign, Central Government through its various Ministries/Departments has notified 156 products under compulsory BIS certification through issuance of QCOs. As per these QCOs, the products specified therein shall conform to the requirements of relevant Indian Standards and bear a Standard Mark under a license from Bureau of Indian Standards.

2.             Production-Linked Incentive (PLI) Scheme: To provide a major boost to manufacturing, Government has launched Production Linked Incentive (PLI) Scheme for 13 sectors with an outlay of Rs 1.97 lakh crore over the next five years.

3.        Udyog Manthan: DPIIT in collaboration with D/o Commerce, QCI, NPC, Bureau of Indian Standards, Industry Chambers and line ministries conducted Udyog Manthan, a two- month long series of webinars comprising 46 sessions, focused on Quality and Productivity in all major sectors of manufacturing and services.

The steps taken by Government to uplift the startups and to promote ‘vocal for local’ campaign are as under:

i)       Government of India has extended relaxations on prior experience, prior turnover and earnest money deposit as per the provisions of GFR to ease public procurement fromstartups.

ii)       Government of India has taken up Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund Scheme (SISFS) to uplift the startups in the country . The objectives of Fund of Funds scheme include accelerating innovation driven entrepreneurship and business creation, mobilizing larger equity- like resources for startups. The SISFS aims to provide financial assistance to startups for proof of concept, prototype development, product trails, market entry and commercialization.

The steps taken by Government to help startups and other local manufacturers in using the e- Commerce and online platforms are as under:

  1. Government e-Marketplace (GeM) is set up for providing an online platform for procurement of common use goods and services by government organizations. Any entity including DPIIT recognized startups can register on GeM as sellers and sell their products and services directly to government entities.
  2. Startup Runway is developed by GeM in collaboration with DPIIT, which is a unique initiative for promoting entrepreneurship through innovation. It has been developed as a dedicated platform for startups to list their products and services for government procurement with relaxed procurement norms and regulations.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Rajya Sabha today.

Ministry of Commerce & Industry Press release dated 23 July 2021

‘Startup India’ a symbol of “National Participation & National Consciousness

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“There is a new energy in our startups space. In just first 6 months of 2021, India has seen 15 more unicorns” – Shri Piyush Goyal


“Indian startups are more than commercial success stories and they are key to India’s transformation” – Shri Goyal

‘Startup India’ a symbol of “National Participation & National Consciousness” – Shri Piyush Goyal

Despite COVID-19 disruptions, there are clear indications of economic revival in India-Shri Piyush Goyal

Indian Industry must rest on strong foundations of Quality, Productivity & Economies of Scale – Shri Goyal

PLI Schemes worth $26 bn covering 13 sectors will be operationalised in the next 5 years – Shri Piyush Goyal

Shri Piyush Goyal, Union Minister for “Commerce and Industry, Consumer Affairs and Food& Public Distribution and Textiles” addressed the Plenary Session of CII- Horasis India Meeting 2021

Ministry of Commerce & Industry Press Release dated 24 July 2021

One District One Focus Product Scheme

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The One District One Focus Product (ODOFP) programme cover products of agriculture and allied sectors for 728 districts of the country. The Government has decided to converge resources from ongoing centrally sponsored schemes such as Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), Rashtriya Krishi Vikas Yojana (RKVY), Paramparagat Krishi Vikas Yojana (PKVY), schemes of Ministry of Fisheries, Animal Husbandry and Dairying for ODOFP.

The Ministry of Food Processing Industries (MoFPI) provides financial support  under Centrally Sponsored Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme) for One District One Focus Product. PM FME provides financial, technical and business support for upgradation of existing micro food processing enterprises etc. The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products.

The identified products have potential for both domestic demand and export. PM FME scheme envisages strengthening backward and forward linkages, provision of common facilities, incubation centres, training, research and development (R&D), marketing and branding. The enhanced capacity of processing and value addition in agriculture and allied sector products is for better price realization by the farmers. This scheme is being implemented for a period of five years from 2020-21 to 2024-25.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Lok Sabha today.

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Ministry of Agriculture & Farmers Welfare Press Release dated 21 July 2021

National Project on Organic Farming

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Under Capital investment Subsidy Scheme (CISS) of National Project on Organic Farming (NPOF), 100% assistance is provided to State Government / Government agencies for setting up of mechanized fruit/vegetable market Agro waste compost production unit  up to a maximum limit of Rs.190.00 lakh /unit (for 3000 Total Per Annum (TPA) capacity).  Similarly, for individuals/ private agencies assistance up to 33% of cost limit to Rs 63 lakh/unit as capital investment is provided. Under CISS until now, 12 Fruit and vegetable compost units have been established including 4 units in the State of Tamil Nadu and Rs. 148.332 lakh has been released to the State for this purpose.

Completed Projects of Production Units under CISS since 2012-13 till date (as per NABARD)

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1737286&RegID=3&LID=1

Ministry of Agriculture & Farmers Welfare Press Release dated 21 July 2021

Stand Up India Scheme extended up to the year 2025

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Key Highlights:

  • Stand Up India Scheme was launched by the Prime Minister on 05th April, 2016 and extended up to the year 2025.
  • Stand Up India Scheme facilitates loans to Scheduled Caste, Scheduled Tribe and women borrowers. 
  • A total of 1,16,266 loans amounting to Rs. 26204.49 crore extended under the Scheme since inception.
  • Margin Money requirements for Scheme loans reduced in the Budget Speech for FY 2021-22
  • Activities allied to agriculture included in the Scheme in the Budget Speech for FY 2021-22.

As informed by the Department of Financial Services, Ministry of Finance, the Stand Up India Scheme was launched by the Prime Minister on 05th April, 2016 and has been extended up to the year 2025. The objective of the Stand Up India Scheme is to facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch for setting up a green field enterprise in manufacturing, services or trading sector. As on 28.06.2021, a total of 1,16,266 loans amounting to Rs. 26204.49 crore have been extended under the Scheme since inception.

Pursuant to an announcement made by the Finance Minister in the Budget Speech for F.Y.2021-22, the margin money requirement for loans under the Scheme has been reduced from ‘upto 25%’ to `upto 15%’ and activities allied to agriculture have been included in the Scheme. Apart from this, no other change is contemplated in the scheme.

Government does not allocate funds for loans under the Stand Up India Scheme. Loans under the Scheme are extended by SCBs as per commercial parameters, Board approved policies of respective banks and extant RBI guidelines. An amount of Rs. 500 crore each was however released by Government in FY 2016-17 and FY 2017-18 and Rs 100 crore in FY 2020-21 towards the corpus of Credit Guarantee Fund for Stand Up India (CGFSI).

The Government has taken various steps towards effective implementation of the Scheme, these, inter alia, include provision for submission for online applications by potential borrowers through http://www.standupmitra.in portal, hand-holding support, intensive publicity campaign, simplified loan application form, Credit Guarantee Scheme, convergence with State and Central government Schemes wherever feasible, reduction in margin money and inclusion of activities allied to agriculture etc.

This information was given by Minister of State for Social Justice and Empowerment Sushri Pratima Bhoumik in a written reply in Lok Sabha today.                                                                                                          

Ministry of Social Justice & Empowerment Press release dated 20 July 2021

PM inaugurates and lays foundation stone of various development projects in Varanasi

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PM inaugurates and lays foundation stone of various development projects in Varanasi


Lauds Kashi and Uttar Pradesh for their efforts in fight against the pandemic

Kashi is becoming a big medical hub of Purvanchal: PM

Cleanliness and beauty of Maa Ganga and Kashi is an aspiration and priority: PM

Work is on for schemes worth 8000 crore in the region: PM

Uttar Pradesh is fast emerging as the leading investment destination of the country:PM

Rule of law and focus on development is ensuring that people of UP are getting benefits of the schemes: PM

Reminds people of UP to remain vigilant against the virus

The Prime Minister, Shri Narendra Modi inaugurated and laid the foundation stone of various development projects in Varanasi. He inaugurated various public projects and works, including a 100 bed MCH wing in BHU, multi-level parking at Godauliya, Ro-Ro Vessels for tourism development on River Ganga and three lane flyover bridge on the Varanasi Ghazipur Highway. Projects worth around Rs. 744 crores.

He also laid the foundation stones of several projects and public works worth around Rs. 839 crores. These include the Centre for Skill and Technical Support of Central Institute of Petrochemical Engineering and Technology (CIPET), 143 rural projects under Jal Jeevan Mission and mango and vegetable integrated pack house in Karkhiyaon.

Addressing the gathering, the Prime Minister recalled the difficult last few months when the mutated coronavirus attacked with full force. The Prime Minister lauded the efforts of Uttar Pradesh and Kashi in dealing with the challenge. He praised the efforts of the Government of Uttar Pradesh in dealing with the pandemic. He praised his team from Kashi, the administration and the entire team of Corona warriors for the way they mobilized day and night to create arrangements in Kashi. “Even in the difficult days, Kashi has shown that it never stops and never tires”, said the Prime Minister.He contrasted the unprecedented handling of the second wave with the earlier instances when Japanese encephalitis type of diseases used to wreak havoc. Even the small challenges used to acquire massive proportions in the absence of medical facilities and political will.  Today UP is the state with the highest number of tests and vaccinations, he said.

बीते कुछ महीने हम सभी के लिए बहुत मुश्किल भरे रहे हैं।

कोरोना वायरस के बदले हुए और खतरनाक रूप ने पूरी ताकत के साथ हमला किया था।

लेकिन काशी सहित, यूपी ने पूरे सामर्थ्य के साथ इतने बड़े संकट का मुकाबला किया: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

कोरोना से निपटने में उत्तर प्रदेश के प्रयास उल्लेखनीय हैं।

मैं काशी के अपने साथियों का, यहां शासन-प्रशासन से लेकर कोरोना योद्धाओं की संपूर्ण टीम का विशेष रूप से आभारी हूं।

आपने दिनरात जुटकर जिस प्रकार काशी में व्यवस्थाएं खड़ी कीं, वो बहुत बड़ी सेवा है: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

Shri Modi enumerated the rapidly improving medical infrastructure in Uttar Pradesh. Number of medical colleges in the last four years has grown four-fold. Many medical colleges are in various states of completion. Shri Modi talked of about 550 oxygen plants that are being established in the state out of which 14 were inaugurated today.He also praised the efforts to improve pediatric ICUs and oxygen facilities by the state government.  He said that the recently announced Rs  23000 crore package will help Uttar Pradesh. He said that Kashi city is becoming a big medical hub of Purvanchal. He added that the treatment for some diseases for which one had to go to Delhi and Mumbai is now available in Kashi. Some projects that were inaugurated today will further augment the medical infrastructure of the city.

काशी नगरी आज पूर्वांचल का बहुत बड़ा मेडिकल हब बन रही है।

जिन बीमारियों के इलाज के लिए कभी दिल्ली और मुंबई जाना पड़ता था, उनका इलाज आज काशी में भी उपलब्ध है: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

The Prime Minister said that Many projects are propelling the ancient city of Kashi on the path of development while keeping its essence safe. He said projects like highways, flyovers, railway overbridges, underground wiring, solving the problems of sewer and drinking water, promoting tourism have seen unprecedented push from the government. “Even currently, work is on for schemes worth 8000 crore” The Prime Minister informed.

He said that cleanliness and beauty of Ganga and Kashi is the aspiration and priority. For this, work is being done on every front like roads, sewage treatment, beautification of parks and ghats.Broadening of Panchkosi Marg, Bridge on Varanasi Ghazipur will help many villages and adjoining cities.

काशी की, मां गंगा की, स्वच्छता और सुंदरता, हम सभी की आकांक्षा भी है और प्राथमिकता भी है।

इसके लिए सड़क हो, सीवेज ट्रीटमेंट हो, पार्कों और घाटों का सुंदरीकरण हो, ऐसे हर मोर्चे पर काम हो रहा है: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

The Prime Minister said Large LED screens installed all over the city and latest technology information boards on the ghats will be of great help to the visitors to Kashi. These LED screens and information boards will present the history, architecture, crafts, art, every such information of Kashi in an attractive way and will be of great use to the devotees. The broadcast of the aarti at the Ghat of Maa Ganga and at Kashi Vishwanath temple will be possible in the entire city through big screens. The Prime Minister also informed that Ro-Ro service and cruise service that were inaugurated today will boost tourism and Rudraksh center that is being inaugurated today will provide a world class platform to the artists of the city.

शहर में जगह-जगह लग रही बड़ी-बड़ी LED स्क्रीन्स और घाटों पर लग रहे टेक्नॉलॉजी से लैस इन्फॉर्मेशन बोर्ड, ये काशी आने वालों की बहुत मदद करेंगे।

काशी के इतिहास, वास्तु, शिल्प, कला, ऐसी हर जानकारी को आकर्षक तरीके से प्रस्तुत करने वाली ये सुविधाएं श्रद्धालुओं के काफी काम आएंगी: PM— PMO India (@PMOIndia) July 15, 2021

बड़ी स्क्रीन्स के माध्यम से गंगा जी के घाट पर और काशी विश्वनाथ मंदिर में होने वाली आरती का प्रसारण पूरे शहर में संभव हो पाएगा: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

The Prime Minister also talked about the development of Kashi as a centre of learning in modern times. Today Kashi also got model school, ITI and many such institutions. CIPET’s Centre for Skilling & Technical Support will help the area in industrial development. The Prime Minister said Uttar Pradesh is fast emerging as the leading investment destination of the country. He added that UP which was considered difficult to do business in till a few years ago is becoming a favorite place for Make in India today. The Prime Minister credited the Yogi government for this as the focus on infrastructure development has been relentless in recent times. Shri Modi listed Defence Corridor, Purvanchal Expressway, Bundelkhand Expressway, Gorakhpur Link Expressway and Ganga Expressway as some examples of the recent push.

उत्तर प्रदेश, देश के अग्रणी इन्वेस्टमेंट डेस्टिनेशन के रूप में उभर रहा है।

कुछ साल पहले तक जिस यूपी में व्यापार-कारोबार करना मुश्किल माना जाता था, आज मेक इन इंडिया के लिए यूपी पसंदीदा जगह बन रहा है: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

The Prime Minister said that a special fund of Rs 1 lakh crore has been created for modernizing agricultural infrastructure in the country which will now benefit our agricultural markets as well. This is a big step towards making the system of agricultural markets of the country modern and convenience-rich

देश में आधुनिक कृषि इंफ्रास्ट्रक्चर के लिए जो 1 लाख करोड़ रुपए का विशेष फंड बनाया गया है, उसका लाभ अब हमारी कृषि मंडियों को भी मिलेगा।

ये देश की कृषि मंडियों के तंत्र को आधुनिक और सुविधा संपन्न बनाने की तरफ एक बड़ा कदम है: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

Noting the long list of fresh development projects in Uttar Pradesh,  the Prime Minister said earlier also schemes and finances were planned for the state   But then in Lucknow they used to get blocked. The Prime Minister praised the Uttar Pradesh Chief Minister for his energy and efforts to make sure that the result of development reaches all.  .

काशी और पूरे यूपी के विकास के इतने सारे कामों की चर्चा मैं इतनी देर से कर रहा हूँ, लेकिन ये लिस्ट इतनी लंबी है कि इतनी जल्दी खत्म नहीं होगी।

जब समय का अभाव होता है तो मुझे भी कई बार सोचना पड़ता है कि यूपी के कौन से विकास कार्यों की चर्चा करूँ, कौन से कार्यों को छोड़ूँ: PM— PMO India (@PMOIndia) July 15, 2021

ऐसा नहीं है कि 2017 से पहले यूपी के लिए योजनाएँ नहीं आती थीं, पैसा नहीं भेजा जाता था!

तब भी दिल्ली से इतने ही तेज प्रयास होते थे।

लेकिन तब लखनऊ में उनमें रोड़ा लग जाता था।

आज योगी जी खुद कड़ी मेहनत कर रहे हैं: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

The Prime Minister said today there is rule of law in UP. The mafia raj and terrorism, which were once going out of control, are now under the grip of law. The way parents always lived in fear and apprehensions regarding the safety of sisters and daughters, that situation has also changed. Today the government in UP is run by development not on corruption and nepotism. That is why, today in UP, the people are getting the benefits of the schemes directly. That is why, today new industries are investing in UP and employment opportunities are increasing, said the Prime Minister.

The Prime Minister concluded by reminding the people of Uttar Pradesh about their responsibility of not allowing Corona to gain strength once again. He cautioned that despite slowing down, any carelessness can invite a massive wave. He called upon everyone to strictly follow the protocol and get vaccinated under “Vaccine for all-Free for All” Campaign.

आज यूपी में कानून का राज है।

माफियाराज और आतंकवाद, जो कभी बेकाबू हो रहे थे, उन पर अब कानून का शिकंजा है।

बहनों-बेटियों की सुरक्षा को लेकर माँ-बाप हमेशा जिस तरह डर और आशंकाओं में जीते थे, वो स्थिति भी बदली है: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

यूपी में सरकार आज भ्रष्टाचार और भाई-भतीजावाद से नहीं विकासवाद से चल रही है।

इसीलिए, आज यूपी में जनता की योजनाओं का लाभ सीधा जनता को मिल रहा है।

इसीलिए, आज यूपी में नए-नए उद्योगों का निवेश हो रहा है, रोजगार के अवसर बढ़ रहे हैं: PM @narendramodi— PMO India (@PMOIndia) July 15, 2021

PMO Press Release dated 15 July 2021***

Government approves continuation of Rebate of State and Central taxes and Levies (RoSCTL) on Export of Apparel/ Garments and Made-ups

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Government approves continuation of Rebate of State and Central taxes and Levies (RoSCTL) on Export of Apparel/ Garments and Made-ups


RoSCTL extended till 31st March 2024 at existing rates

Ensures a stable and predictable policy regime

Fillip for exports of globally competitive Indian textiles

Promote exports by start-ups and entrepreneurs

Creation of lakhs of jobs and boost economic growth

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated 8th march 2019, on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters. The scheme will continue till 31st March 2024.

The other Textiles products (excluding Chapters-61, 62 & 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, under RoDTEP along with other products as finalised by Department of Commerce from the dates which shall be notified in this regard. 

Continuation of RoSCTL for Apparel/Garments and Made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters. Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs.

Tax Refund for Exported Products

It is a globally accepted principle that taxes and duties should not be exported, to enable a level playing field in the international market for the exporters. In addition, to import duties and GST which are generally refunded, there are various other taxes/duties that are levied by Central, State and Local Government which are not refunded to the exporters.  These taxes and levies get embedded in the price of the ultimate product being exported. Such embedded taxes and levies increase the price of Indian Apparel and Made-ups and make it difficult for them to compete in the international market.

Some of the cess, duties for which taxes and levies are not refunded and are part of embedded taxes directly and indirectly, are as follows:-

  1. Central & statetaxes, duties & cesses on fuel used for transportation of goods, generation of power and for the farm sector.
  2. Mandi Tax
  3. Duty on electricity charges at all levels of the production chain
  4. Stamp duty
  5. GST paid on input such as pesticides, fertilizers, etc.
  6. GST paid on purchases from unregistered dealers, etc.
  7. Cess on coal or any other products

Realizing the importance of refund of embedded taxes, cesses and duties, the Ministry of Textiles first launched a scheme by the name of Rebate of State Levies (ROSL) in 2016. In this scheme the exporters of apparel, garment and made-ups were refunded embedded taxes and levies through the budget of the Ministry of Textiles. In 2019, the Ministry of Textiles notified a new scheme by the name Rebate of State and Central Taxes and Levies (RoSCTL). Under this scheme, the exporters are issued a Duty Credit Scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic Customs duty for the import of equipment, machinery or any other input.

Just one year after launch of RoSCTL the pandemic set in and it has been felt that there is a need to provide some stable policy regime for the exporters.  In the textiles industry, buyer places long term orders and exporters have to chalk out their activities well in advance, it is important that the policy regime regarding export for these products should be stable. Keeping in view the same, the Ministry of Textiles has decided to continue the scheme of RoSCTLupto 31st March, 2024 independently as a separate scheme.

Continuation of RoSCTL scheme will help generate additional investment and give direct and indirect employment to lakhs especially women.

Ministry of Textiles Press release dated 14th July 2021