New Delhi, Feb 23 Worried over job losses in the exporting units, the government today announced additional interest subsidy of Rs 450 crore, taking the total allocation on this count to Rs 1,250 crore for the current fiscal.
The additional funds for giving interest subvention to exporters were approved the Cabinet Committee on Economic Affairs (CCEA).
Originally the interest subsidy of two per cent subject to a minimum rate of seven per cent was to cost the exchequer Rs 800 crore. However, with the extension of the scheme the total financial support on this count would be Rs 1,250 crore in the current fiscal.
"The government has been concerned about the global financial crisis.," Home Minister P Chidambaram said after the CCEA meeting.
A separate budget provision has been made for the next fiscal beginning April for the interest subsidy because the scheme will remain valid till September 30.
According to exporters body, Federation of Indian Export Organisations over 10 million people would be out of job by March.
Source : www.indopia.in