PIB Release ID: 2242410 Date: 19 March 2026 Announced By: DGFT under Export Promotion Mission (EPM)Website: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2242410®=3&lang=1 Implementing Agency: ECGC Ltd. Total Outlay: ₹497 Crore (allocated across insurance support, risk coverage, and MSME reimbursement under the RELIEF scheme)
The RELIEF scheme for exporters helps reduce this sudden financial pressure and supports trade continuity.
Why This Scheme Was Introduced
Over the past few weeks, exporters dealing with Gulf and West Asia markets have faced a sudden cost shock.
Due to disruptions around the Strait of Hormuz, shipping routes became unstable. As a result:
- Freight rates increased sharply (in many cases 90–100%)
- War risk premiums and emergency surcharges were added
- Cargo movement slowed due to congestion and diversions
- Working capital pressure increased, especially for MSMEs
For businesses operating on tight margins, these disruptions did not just cause delays — they directly affected profitability and cash flow.
To address this, the government introduced the RELIEF Scheme (Resilience & Logistics Intervention for Export Facilitation) as a time-bound financial and risk support mechanism.
How the Scheme Is Structured
Instead of offering a single benefit, the scheme divides support into three components based on the exporter’s situation during the disruption period.
This ensures that support is targeted, not generic.
Component I For Exporters Already Covered Under ECGC
Eligible Period: 14 February 2026 to 15 March 2026
This applies to exporters who had existing ECGC insurance and completed shipments during the disruption window.
What changes for you:
- Existing ECGC cover remains in place
- Government provides top-up protection up to 100% risk coverage
- No additional premium is charged (pre-disruption rates continue)
Practical implication:
If you had partial insurance coverage earlier, the scheme now protects the remaining uncovered portion significantly reducing your exposure.
Component II For Upcoming Shipments
Eligible Period: 16 March 2026 to 15 June 2026 Outlay: ₹159 Crore
This component is forward-looking. It applies to exporters planning shipments during the ongoing uncertainty.
What you get:
- Up to 95% government-backed risk coverage
- Coverage available through new ECGC policies
- Premiums aligned to pre-disruption levels
Key point:
Insurance must be taken before dispatch. Post-shipment coverage is not available under this component.
Component III For MSMEs Without ECGC Cover
Eligible Period: 14 February 2026 to 15 March 2026 Outlay: ₹282 Crore
This addresses the most impacted segment — MSMEs who exported without insurance during the disruption.
What you get:
- Up to 50% reimbursement of additional freight and insurance costs
- Cap of ₹50 lakh per exporter
- Subject to documentary verification
What qualifies as “extra cost”:
- War risk premiums
- Emergency surcharges
- Freight increases linked to disruption
This is not a full recovery mechanism, but it directly reduces the financial burden.
Additional Relief Measures
Beyond the three components, the scheme includes operational support:
1. Export Obligation Relief
- Advance Authorisation and EPCG deadlines falling between 1 March to 31 May 2026
- Extended to 31 August 2026
- No penalty applicable
2. Port-Level Relief
- Waiver of storage and dwell time charges
- Applicable to cargo affected during the disruption period
3. Monitoring Mechanism
- ECGC to maintain a real-time dashboard
- Tracks:ClaimsFund utilisationScheme progress
Countries Covered Under the Scheme
The scheme applies only to exports connected with the following regions:
- UAE
- Saudi Arabia
- Qatar
- Oman
- Bahrain
- Kuwait
- Iraq
- Iran
- Israel
- Yemen
This also includes transshipment cargo linked to these routes.
Quick Eligibility Check
Before proceeding, verify the following:
- Shipment linked to one of the specified countries
- Dates fall within the relevant component window
- ECGC status (insured / not insured) is clearly identified
- MSME classification (for Component III) is valid
- Supporting documents are available
If these are clear, the next step is documentation and filing through ECGC.
What Scheme does:
- Reduces risk exposure
- Supports exporters facing unexpected cost escalation
- Provides short-term financial cushioning
What Scheme does not do:
- It does not eliminate commercial risk entirely
- It does not apply automatically application is required
- It does not extend beyond defined timelines (unless notified separately)
Conclusion
The RELIEF scheme is a targeted response to a specific disruption, not a long-term subsidy.
The scheme recognises that different exporters faced different levels of impact and addresses each case accordingly:
- Insured exporters get full risk protection
- Upcoming shipments get high coverage at controlled cost
- MSMEs get partial cost recovery support
For exporters, the key is timely action. The scheme is active, but the windows are fixed.
Delays in understanding eligibility or preparing documentation may result in missed benefits.