Nath indicates abolition of Target Plus Scheme from April 2006

17 May '07

2 min read

Duty Free Credit Entitlement (DFCE) Scheme for status holders was started from 1/4/2003. The scheme was limited to Status Holders who had exports of at least Rs.25 crore in 2003-04 and incremental growth of 25%.

The scheme was tightened, modified and renamed as Target Plus Scheme in September 2004. Target Plus Scheme was designed with objective to reward incremental growth in exports.

Status Holders contribute more than 60% to India's export efforts and to achieve substantial higher exports, fillip to these exporters was granted by Target Plus Scheme. As on 30/4/2007, out of 1923 applications received, 897 claims have been disbursed by grant of duty credits of Rs.4725 crore, 229 applications have been rejected wherein claim amount was Rs.574.63 crore.

Applications complete in all respects received till 31/3/2007 have been considered by Zonal Committee and decided. A total of 797 applications, where the claim amount is Rs.3792.10 crore, were found deficient and incomplete.

Government has modified Target Plus Scheme for exports during 2005-06 by providing duty credit benefits at 5% of incremental exports, removing petroleum, cereals, ores, sugar and gems & jewellery from purview of the scheme, and by lowering eligibility criteria to Rs.5 crore from Rs.10 crore.

After being in operation for exports during 2004-05 and 2005-06, Target Plus Scheme has been abolished for exports from 1/4/2006 onwards.

This was indicated by Shri Kamal Nath, Union Minister of Commerce & Industry, in the Lok Sabha.

Press Information Bureau Government of India

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