Why in the News
- Government approved RELIEF (Resilience & Logistics Intervention for Export Facilitation) under Export Promotion Mission (EPM)
- Aim: Support exporters amid West Asia crisis and maritime logistics disruption
Background
- Disruptions in Strait of Hormuz region
- Issues:
- Vessel diversion
- Longer shipping routes
- Port congestion
- High freight cost + insurance premium + war-risk surcharge
- Increased export uncertainty
Objective
- Ensure export continuity
- Reduce logistics cost escalation
- Provide risk mitigation
- Protect MSME exporters and employment
Coverage
- Regions:
- UAE, Saudi Arabia, Qatar, Oman, Kuwait, Israel, Bahrain, Iraq, Iran, Yemen
- Covers:
- Past shipments (disruption period)
- Future consignments
Key Components
1. Enhanced Risk Coverage (Insured Exporters)
- Up to 100% additional coverage
- For shipments during disruption period
2. Support for Upcoming Exports
- Up to 95% risk coverage
- Encourages export flow continuity
3. MSME Support (Non-Insured)
- Up to 50% reimbursement
- Covers:
- Freight escalation
- Insurance surcharge
- Cap: ₹50 lakh per exporter
| [2023] Consider the following statements with reference to India: 1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
