RoSCTL amendment to ease working capital requirement for garment exporters
As per media reports, in case of RoSCTL, the garment exporters demand of removing the liability of the transferee in the case of non-realisation of export proceeds has been accepted by the government.
The earlier rule had made the scrips unattractive due to default risk. Therefore, exporters were forced to sell these scrips in the open market at a discount extending up to 20%. Post the recent amendment, the liability would reside with the original beneficiary of the credit scrip . The value of credit scrips has increased to 97.5% after the change in the rule. The amendment will provide much needed relief to the garment sector and ensure maximum refund of RoSCTL amount, which will help exporters meet their working capital requirements.