New MSMEs can also avail credit assistance for ecomm exporters

New Delhi: Micro, Small and Medium Enterprises (MSME) 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 Directorate General of Foreign Trade (DGFT) said Friday.

In a trade notice, it said that 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 will also be given for current stock placed in warehouses set up under E-Commerce Export Hub (ECEH) facility.


“The annual subvention amount in a given financial year shall be capped at Rs 15 lakh


per beneficiary MSME involved in international value chains through e-commerce,” the DGFT said.

To support exporters using digital channels, the commerce and industry ministry last month announced credit facilities with interest subvention and partial credit guarantees under the EPM.

As per the guidelines, in case of Direct e-Commerce Credit Facility for exporters engaged in direct exports through postal/ courier route, credit limit shall be set at 20% of average e-commerce exports sales in the past two years.

“In case of Overseas Inventory E-Commerce Credit Facility, credit Limit shall be


assessed up to a maximum of 50% of the cost of inventory,” it said.

The intervention seeks to enhance access to working capital for 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.

“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.

Separately, the DGFT 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.