Interest Subvention Scheme under Export Promotion Mission (EPM) – Key Amendments for Export Credit Support

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has issued Trade Notice No. 33/2025-26 dated 20th March 2026 introducing amendments to the guidelines governing Interest Subvention Support for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Protsahan. The amendments aim to enhance operational clarity, ensure procedural transparency, and strengthen compliance mechanisms for stakeholders, including exporters and lending institutions.

The revised provisions align the eligibility of export credit for interest subvention with the prevailing Reserve Bank of India (RBI) guidelines, emphasizing that benefits shall apply strictly as per the applicable directions on the date of loan disbursal. A key clarification introduced is that interest subvention will cease from the date a loan account is classified as a Non-Performing Asset (NPA). Additionally, exporters availing credit from multiple lending institutions will be required to ensure that total subvention claims remain within the prescribed annual ceiling of ₹50 lakh per Importer Exporter Code (IEC), supported by an undertaking to be obtained by banks.

The notification further mandates the generation of a Unique Identification Number (UIN) prior to the disbursal of export credit, with strict provisions disallowing portability of UIN across banks. In cases of change in lending institution, a fresh UIN must be generated. The rate of subvention shall be applicable as per the rate prevailing on the date of disbursal, and claims will not be admissible where UIN generation is delayed. It has also been clarified that UIN and UDIN refer to the same identifier under the scheme, and earlier UINs issued under the Interest Equalisation Scheme (IES) will not be valid for EPM benefits.

Further, the amendments introduce detailed procedural guidelines for claim submission by banks through an online portal, including mandatory registration, borrower identification through UIN, and submission of loan-related data in prescribed formats. Provisions have also been added regarding eligibility conditions for tariff lines under the Positive List, explicitly stating that no retrospective benefits will be granted and that eligibility will apply only to credit disbursed after inclusion of the tariff line.

The Trade Notice also clarifies that interest subvention shall be applicable only for the actual period for which credit remains outstanding and will not apply to export credit disbursed prior to 2nd January 2026. In cases of loan renewal or top-up, only the incremental credit will qualify as fresh exposure for subvention purposes. Verification of IEC details will be enabled through system-based validation and API integration for banks.

These amendments are expected to streamline the implementation of the Interest Subvention Scheme under the Export Promotion Mission, ensuring greater accountability, improved monitoring, and ease of doing business for exporters. The Trade Notice has been issued with the approval of the Competent Authority.

The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Trade-Notice-Clarifications-on-EPM-Interest-Subvention-Support.pdf