16-Sep-2019: ECGC Introduces Nirvik to Enhance Loan Availability for Exporters
Ministry of Commerce & Industry through Export Credit Guarantee Corporation (ECGC) has introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK to enhance loan availability and ease the lending process.
The details of the scheme were shared by the Commerce & Industry and Railways Minister, Piyush Goyal and Minister of State for Commerce & Industry, Hardeep Singh Puri. The scheme was announced by the Finance Minister Nirmala Sitharaman to boost exports on 14th September 2019 in New Delhi.
Piyush Goyal said that the gems, Jewellery and diamond(GJD) sector borrowers with limit of more than Rs. 80 crore will have a higher premium rate as compared to non-GJD sector borrowers of this category due to the higher loss ratio. The ECGC cover provides additional comfort to banks as the credit rating of the borrower is enhanced to AA rated account.
Enhanced cover will ensure that Foreign and Rupee export credit interest rates will be below 4% and 8% respectively for exporters.
Under ECIS, insurance, cover percentage has also been enhanced to 90% from the present average of 60% for both Principal and Interest.
22-Jul-2019: Direct Sale of Biodiesel
The Government has allowed the direct sale of biodiesel (B100) for blending with high speed diesel to all consumers, in accordance with the specified blending limits and the standards specified by the Bureau of Indian Standards, with effect from 29th June, 2017. For this purpose, “Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes-2019” have been issued vide Notification dated 01.05.2019.
Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL) had entered into Joint Ventures (JVs) / Limited Liability Partnerships (LLPs) to carry out jatropha plantation with the help of Gram Panchayats in Uttar Pradesh. BPCL had formed a Joint Venture (JV) Company named “Bharat Renewable Energy Ltd. (BREL)” which entered into agreement with the Panchayats to grow Jatropha / Pongamia plantations in their fallow lands. The JV company closed down due to poor yields and high operating cost.
Similarly, IOCL had formed 'Indian Oil Ruchi Biofuels LLP', a LLP firm, to participate in `Jeevan Jyoti Yojana' Project of Government of Uttar Pradesh, for Jatropha plantation by Gram Panchayats on Panchayat wasteland. The LLP facilitated jatropha plantation in 1818 hectares. IOCL has to exit from LLP since no seeds were made available by Gram Panchayats for biofuel production.
10-Jun-2019: Commerce Minister emphasizes on reciprocal market access for Indian goods.
Union Minister of Commerce & Industry and Railways, Piyush Goyal, held a series of bilateral talks with a number of countries on the side lines of the two day G20 Ministerial on Trade and Digital Economy in Tsukuba, Ibaraki, Japan on 8-9 June, 2019.
During the bilateral meetings with host Japan and countries like USA, UK, China, France, Singapore, Korea, Spain, Canada, EU, Mexico, Saudi Arabia, South Africa, Chile and Australia, Piyush Goyal emphasized the need for reciprocal market access for Indian products.
He said that the slowdown in global trade and investment is of serious concern to all of us as it adversely affects economic growth, development and job creation. He called for de-escalating trade tensions and reviving confidence in the rules based multilateral trading system which all countries had so painstakingly created.
While India is committed to working towards building free trade, that is inclusive and development centric to bring prosperity to people around the world, focus on the imperatives of meeting the goals of SDGs, and eliminating poverty and deprivation must not be lost.
He further reiterated that with the advent of digital technologies, services are vital drivers of growth. Servicification of the manufacturing sector is enhancing the importance of services in global trade. Major investment is also being driven by the services sector. Thus, we need to remove barriers and facilitate temporary movement of highly skilled professionals to sustain this investment and growth.
Piyush Goyal pointed out another way to go about correcting this, is by supporting greater participation of MSMEs in developing countries both in domestic and global trade, because they are crucial for jobs and income generation, on which livelihood of millions are dependent. India urges G20 to provide preferential market access to MSMEs in developing countries to be part of the Global supply chains.
At the end of the 2 day sessions Commerce Minister congratulated Japan for taking initiative of putting forward the forward looking agenda, of the growing interface, between Trade and Digital Economy. For the first time a joint session with ministers of digital economy and trade and investment was held in G20 to discuss the interface between digital economy and trade. The Union Minister of Commerce & Industry and Railways represented India in both the Joint sessions.
In his address Piyush Goyal said that there is no doubt that digital technologies are impacting our economies in a significant way and nations that fail to adapt to these changing realities run the risk of being left behind. Technologies can be disruptive if not harnessed in right time. The Minister further said that concerns over loss of jobs, revenue, erosion of competitiveness are real.
The deliberations on trade, investment and digital economy will feed into the Osaka Summit Declaration which will be adopted on 29th June, 2019.