Engineering exporters seek Rs 500 cr for tech upgrade, extension of interest subvention
Updated: Aug 25, 2014 11:54:46am
New Delhi, Aug 25 (KNN) Engineering exporters have sought a slew of measures including easy procedures for all tax refunds, Rs 500 crore technology fund for the engineering sector and extension of interest subvention in the ensuing Foreign Trade Policy.
EEPC India, an apex body for engineering exporters emphasized that the recent rebound should be used as a launch pad for a sustained and higher growth in exports.
In a letter to the Commerce Minister, Nirmala Sitharaman, EEPC India Chairman, Anupam Shah stated that cap of LIBOR (London Inter-Bank Offered Rate) plus two per cent should be administered on the bank interest rates for exporters with the intervention of the RBI and more incentives should be given to incremental exports.
“…to take our exports to the next stage of growth we need to really reward our exporters and motivate them with a message that it makes better business to reach out and sell in the global market than the domestic economy. In the coming policy, the Incremental Export Incentivisation Scheme should be continued and simplified. Further, a kind of gradation can be made so that the higher incremental exports are given higher benefits,” Shah said.
Engineering exports grew at over 24 per cent to USD 16.94 billion during the April-June quarter this fiscal year.
Shah, in his communication to Sitharaman, said certain types of benefits to the exporters are granted only after submission of payments that the buyers abroad have remitted the payment.
“This delay leads to cash flow problems for the exporters. It is suggested that like in the case of Drawback payment, all benefits should be released based on certification by Chartered Accountants,” he added.
Besides, for competing against China and other major export players, Indian manufacturing needs to upgrade technology, for which the industry requires support from the government. “TUF Scheme for the engineering sector should be provided under the new Foreign Trade Policy with an allocation of Rs 500 crore to begin with,” Chairman of the apex body for engineering exporters’ suggested.
He also said that the interest Subvention Scheme should be extended from April 1, 2014 in view of the high cost of credit. The Packing Credit in Foreign Currency does not have upper limit and as a result banks are charging interests, he added. (KNN/SD)
EEPC India, an apex body for engineering exporters emphasized that the recent rebound should be used as a launch pad for a sustained and higher growth in exports.
In a letter to the Commerce Minister, Nirmala Sitharaman, EEPC India Chairman, Anupam Shah stated that cap of LIBOR (London Inter-Bank Offered Rate) plus two per cent should be administered on the bank interest rates for exporters with the intervention of the RBI and more incentives should be given to incremental exports.
“…to take our exports to the next stage of growth we need to really reward our exporters and motivate them with a message that it makes better business to reach out and sell in the global market than the domestic economy. In the coming policy, the Incremental Export Incentivisation Scheme should be continued and simplified. Further, a kind of gradation can be made so that the higher incremental exports are given higher benefits,” Shah said.
Engineering exports grew at over 24 per cent to USD 16.94 billion during the April-June quarter this fiscal year.
Shah, in his communication to Sitharaman, said certain types of benefits to the exporters are granted only after submission of payments that the buyers abroad have remitted the payment.
“This delay leads to cash flow problems for the exporters. It is suggested that like in the case of Drawback payment, all benefits should be released based on certification by Chartered Accountants,” he added.
Besides, for competing against China and other major export players, Indian manufacturing needs to upgrade technology, for which the industry requires support from the government. “TUF Scheme for the engineering sector should be provided under the new Foreign Trade Policy with an allocation of Rs 500 crore to begin with,” Chairman of the apex body for engineering exporters’ suggested.
He also said that the interest Subvention Scheme should be extended from April 1, 2014 in view of the high cost of credit. The Packing Credit in Foreign Currency does not have upper limit and as a result banks are charging interests, he added. (KNN/SD)
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