MSMEs exporting units located in the state have to incur additional transportation cost due to large distances from sea ports which make their products uncompetitive in comparison to the exporting units located in the coastal area. In order to enhance competitiveness of exporting units, this scheme will defray the transportation cost.
The freight assistance to the extent of 1% of Free on Board (FOB) value or actual freight excluding government fee and taxes on transportation of goods from place of manufacture to the sea port from where they are shipped, whichever is less and maximum upto Rs. 20 lakh per annum will be provided for export of goods, manufactured by the exporting MSME set-up anywhere in the State.
The scheme shall commence with effect from 15th August 2015 and shall remain in operation for a period of 05 years or till the time Government decides otherwise. The freight assistance shall be admissible on goods shipped (i.e. bill of lading) on or after 15th August 2015 and before 14th August. 2020.
|Manufacturing Sector||Investment in Plant and Machinery not exceeding Rs. 25 Lakhs.||Investment in Plant and Machinery exceeding Rs. 25 Lakhs but not exceeding Rs. 5 crores||Investment in Plant and Machinery exceeding Rs. 5 crore but not exceeding Rs. 10 crores|
An enterprise shall forfeit its entitlement for the Freight assistance, if it does not submit its claim, complete in all respects within three months from the date of closing of the Financial Year in which the products were shipped for exports.