RoDTEP likely to get be extended by a year with higher allocation, officials say

Notified in 2021, RoDTEP is a WTO-compliant scheme to refund unrebated duties and taxes incurred at the central, state and local levels on exported products.

The Centre is likely to increase the allocation for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, as it looks to extend the incentive for a year, through FY27, government officials told Moneycontrol.

“The allocation is likely to increase. The government may make a realistic estimate of how many exporters are likely to claim the benefit and provide for that in the scheme’s allocation,” a senior government official said on condition of anonymity.

The official acknowledged that capped allocations and delays have created challenges, with some eligible exporters missing out on the incentives because the budget had run out.

“When you promise a benefit, you cannot have a situation where one exporter gets it and another does not only because of budget constraints. The intention is to support all eligible exporters,” the official added.

For FY26, the government allocated Rs 18,232 crore under the RoDTEP scheme to support exporters.

The second government official said, “It will be extended before March, we are working on it. It has to follow the new Finance Commission’s cycle.”

Notified in 2021, RoDTEP is a WTO-compliant scheme to refund unrebated duties and taxes incurred at the central, state and local levels on exported products.

The scheme operates within a fixed annual budget approved by the finance ministry, with rates and coverage calibrated each year to ensure payouts remain within the allocated outlay without any provision to carry forward unmet claims.

Since its launch, the RoDTEP scheme has faced a number of implementation challenges.

Certain exporters have reported delays in receiving benefits and, in some cases, missing out entirely due to capped allocations within the annual budget, which cannot be carried over to the next financial year.

Procedural complexity and sectoral prioritisation have also left smaller exporters struggling to claim benefits.

The scheme applies to all eligible exporters under the Domestic Tariff Area (DTA), Advance Authorisation holders, Export Oriented Units (EOUs), and Special Economic Zone (SEZ) units.

“These are the kinds of implementation problems that are likely to be addressed so that the scheme works smoothly on the ground,” the first official said.

The Directorate General of Foreign Trade (DGFT) as extended the RoDTEP scheme beyond its earlier deadline of September 30, 2025 to March 31, 2026.

While the first official indicated that the extension may be announced in the upcoming Budget, the second said it could be announced separately, outside the annual financial statement.