Subsidy schemes extendend for apparel, sugar

The union cabinet approved the extension of three schemes towards incentivising exports of apparel, providing sugar subsidy, and energizing investments in animal husbandry activities.

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It also approved the signing and ratification of a bilateral investment treaty with the UAE.

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The RoSCTL scheme for the export of apparel, and a sugar subsidy scheme for Antyodya Anna Yojna families were extended for two years up to 31 March 2026.

Source: winter clothes

The animal husbandry infrastructure development fund (AHIDF) has been extended for another three years, also till 31 March 2026.

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The RoSCTL scheme will provide a stable policy regime to help in long-term trade planning, so in textiles where orders can be placed in advance for long-term delivery.

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RoSCTL compensates exporters by way of rebates for state and central taxes and levies in addition to the duty drawback scheme on the export of garments and made-ups.

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The central taxes covered are central excise duty on fuel used in transportation, and embedded CGST paid on inputs such as pesticides and fertilizer, among others.

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Under the sugar subsidy scheme, the Centre gives subsidy of ₹18.50 per kg per month of sugar to AAY families of participating states.

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The approval is expected to extend benefits of more than ₹1,850 crore during the period of the 15th Finance Commission (2020-21 to 2025-26).

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The treaty with the UAE is expected to improve the confidence of investors, especially large investors, resulting in an increase in foreign investments and ODI opportunities.

Source: AP