Current issues with RoDTEP
RoDTEP was introduced in good faith to set right the compliance issues of WTO agreements. However, there has been a certain delay in getting it off the block and thus creating uncertainty and confusion among the export community.
Though the Government announced that the scheme will take effect from January 01, 2020, nothing has been clarified about the refund rates and from when exporters will start getting the said benefits. One of the primary reasons for this delay is the differences between Commerce and Finance ministries in the total budget that is to be allocated for this scheme.
While the initial planned outlay for RoDTEP was Rs.50,000 crore per annum, the G.K. Pillai panel suggested benefits around Rs.30,000 crores per annum. But the Ministry of Finance is looking at ceiling those benefits to around Rs.13,000 crores to Rs.15,000 crores and it has already budgeted Rs.13,000 crores for RoDTEP benefits for the year 2021-22. This is way below the 2019-20 budget for the MEIS scheme which was Rs. 39,097 crores. Textile exporters get an estimated Rs.7,500 crore of benefits per year under RoSCTL. With this chunk of benefits going to just the textile industry, other manufacturing industries will have very little left.
As industry experts feel, the low budget figure could be because of Government’s prior commitments towards various economic stimulus measures and Productivity-Linked Incentives as part of Atmanirbhar Bharat Abhiyan.