Sub : Market Development Assistance (MDA) Scheme guidelines – amendments thereto regarding

As you are aware that Ministry of Commerce has designated our Council as a nodal agency for processing and disbursing of MDA claims for export promotion activities abroad. As per MDA guidelines, units whose turnover is upto Rs.5 crore were eligible for participation in EPCES/FIEO/ITPO led activities. EPCES took up the matter with Ministry of Commerce and requested to increase the limit of Rs.5 crore. Ministry of Commerce has agreed to increase the limit of eligibility from Rs.5 crore to Rs.10 crore. In this regard, a letter No. 2/1/2004-E&MDA dated April 12, 2005 has been received from Ministry of Commerce and a copy of the same is enclosed for your information.

This will come into force with effect from 1st April, 2005.

__________

No. 2/1/2004-E&MDA

Government of India
Ministry of Commerce & Industry
(Department of Commerce)
New Delhi, the 12th April, 2005

To,

The Executive Director/Secretary ofAll Export Promotion Councils/FIEO/ITPO& Other Trade Bodies.

Sub : Market Development Assistance (MDA) Scheme guidelines – amendments thereto – regarding

Sir/Madam,

The undersigned is directed to intimated that various proposals for modification to the existing MDA Scheme guidelines circulated vide letter No. 2/1/2004-E&MDA dated 19.2.2004 (effective from 1.4.2004) have been under consideration of the Government and it has since been decided to modify the MDA Scheme guidelines w.e.f. 1st April, 2005 as under:

(i) Exporting companies with an f.o.b. value of exports upto Rs. 10.00 crore in the preceding year will be eligible for MDA assistance.

(ii) The ceiling of these consecutive participation in a particular trade fair/exhibition abroad by an EPC in all areas has been withdrawn. The present restriction of not more than three consecutive participations for an individual exporter shall, however, continue

(iii) Under “Reverse Trade Visits” of prominent foreign buyer/delegates/ journalists to India for participation in BSMs/exhibitions etc., MDA grant shall be considered for return airfare (in economy excursion class) and hotel charges, etc with ceiling of Rs. 90,000/- (for LAC) and Rs. 60,000/- (for other focus areas) per buyer.

(iv) For events within India or abroad venue cost and other organizing expenditure 60% of actual expenditure shall be reimbursed, subject to a ceiling of Rs. 10.00 lakh per event.

(v) When EPC conducts an event abroad in more than one country during the same tour, additional event cost shall be allowed @Rs.10.00 lakh per country subject to 60% reimbursement.

(vi) At present MDA for one official of EPC is available if minimum of five exporters participate in any EPC led activity abroad. It has now been decided that, in case the number of participants goes beyond twenty, MDA for one additional official of EPC for every block of 20 participants, etc shall be permitted.

2. The above amendments will come into force with effect from 1st April, 2005.

Yours faithfully,

Sd/-
(ASHOK MEENA)
Deputy Secretary to the Government of India