Govt Launches Rs 497 Crore RELIEF Scheme For Exporters Hit By West Asia Crisis

(MENAFN- KNN India) New Delhi, Mar 19 (KNN) The government on Thursday approved Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme to support exporters affected by rising logistics costs and supply chain disruptions in West Asia.

The move comes amid heightened security concerns around the Strait of Hormuz, which have led to vessel diversions, longer routes, port congestion, and higher freight and insurance costs.

Targeted Support Under EPM

RELIEF has been introduced under the Export Promotion Mission (EPM) to address extraordinary freight escalation, increased insurance premia, and war-related export risks impacting shipments to the Gulf region.

The initiative aims to reduce the impact of logistics disruptions, maintain exporter confidence, and prevent order cancellations, particularly for MSMEs. It is also expected to help safeguard employment in export-linked sectors and ensure continuity in trade flows during a period of uncertainty.

The Government has also operationalised an Inter-Ministerial Group (IMG) on Supply Chain Resilience to monitor the situation and coordinate response measures, including procedural relaxations, port-level facilitation, and advisory support to exporters.

ECGC to Implement Scheme

The ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.) under the Commerce & Industry Ministry has been designated as the nodal agency for implementation, responsible for verification, claim processing, and disbursement.

Three-Pronged Relief Framework

The RELIEF scheme comprises three key components. It includes enhanced risk coverage for past shipments, under which exporters with existing ECGC insurance will receive up to 100 per cent coverage for eligible consignments shipped between February 14 and March 15, 2026.

It also provides support for upcoming exports, with exporters eligible for up to 95 per cent risk coverage for shipments planned between March 16 and June 15, 2026.

In addition, the scheme offers MSME reimbursement support, allowing exporters without ECGC cover during the disruption period to claim partial reimbursement of up to 50 per cent of additional logistics and insurance costs, subject to a ceiling of Rs 50 lakh per exporter.

Financial Outlay and Monitoring

The intervention will be implemented with an outlay of Rs 497 crore. A dashboard-based system will track claims and fund utilisation, while periodic reviews will be conducted to adjust the scheme based on evolving geopolitical conditions.

(KNN Bureau)

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