LOAN SOME

New Delhi, Feb. 21: The government today approved a fresh package of Rs 500 crore to subsidise interest rates on loans to rupee-hit exporters.

Under the scheme, exporters will be given a 2 per cent waiver on pre-shipment and post-shipment credit.

According to a release of the Cabinet Committee on Economic Affairs, the move will mitigate the effects of rupee appreciation on exports, making them internationally competitive and enabling exporters to achieve targets.

SBI rights offer

The government today decided to subscribe to the State Bank of India rights issue through non-SLR bonds worth Rs 9,995.99 crore.

The cabinet, which met here today, modified its earlier decision to give slr (statutory liquidity ratio) status to the government securities and accepted the finance ministry’s proposal to change the subscription mode from “SLR marketable government securities” to “special marketable government securities”.

The change in rights issue plan came after the RBI had said the proposed subscription could not be notified as “approved securities” under the banking regulation act and given SLR status.

Low-cost credit

The government today also cleared a Rs 1,000-crore proposal to set up two funds of Rs 500 crore each to provide low-cost credit to the weaker sections under its financial inclusion programme.

The cabinet also agreed to release the arrears, in wages and other allowances, of the employees of 12 public sector firms, including Andrew Yule, Bharat Wagon Engineering and HMT.