The Hindu : Shourie for continuation of DEPB scheme

Online edition of India's National Newspaper
Thursday, Dec 12, 2002

Business

Business

Shourie for continuation of DEPB scheme

By Our Special Correspondent

NEW DELHI DEC. 11. The Commerce and Industry Ministry, Arun Shourie, today supported exporters' demands for continuation of the DEPB (duty entitlement pass book) scheme while noting that it is compatible with World Trade Organisation regulations. This had also been conveyed to the Kelkar Committee, he said.

In the first series of interactive meetings with confederation of export units and chairpersons of the export promotion councils and commodity boards in the run up to the budget and the Exim Policy, he assured exporters that notifications would now be issued simultaneously with the policy. This would minimise the scope of further interpretations and speed up policy implementation.

Responding to the issue of pending notifications raised by participants arising out of the policy announced earlier this year, he said the matter had been taken up with the Finance Ministry and pending notifications for the current year would be issued within this week.

Mr. Shourie also proposed setting up of an implementation cell in the Ministry to follow up on implementation of policies. Commenting that the structure of regulations had grown like a "coral reef'' without any design, he underlined the need for simplification of policies and procedures. He also urged exporters to come forward with new thinking on export strategies.

Regarding labour reforms, he felt there was need to change public perception on this issue, particularly how the provisions of labour laws are hampering growth.

Apart from the sector specific issues, most participants felt that there should be consistency in the Exim Policy while

export incentives such as DEPB should be continued and the interface between Commerce and Finance Ministries strengthened to check delays in implementation of the Exim Policy.

The CEU President, R. Veeramani, felt that an export promotion council for export oriented units and export processing zones would help in better marketing of the scheme.

The chairman of the Electronics and Software Export Promotion Council said there was need to rationalise duties in the hardware sector in view of the immense potential to attract FDI.

The council said it would submit a detailed report on this issue to the ministry soon.

The Engineering Export Promotion Council said there was a need to ratify the existing policy that made it more profitable

for domestic aluminium companies to export rather than to sell domestically.

The Federation of Indian Export Organisations (FIEO) said provision of single window clearance to import and export related issues should be provided. Referring to reports of misuse of DEPB incentives, it said stern action should be taken against those who manipulate such export incentive schemes.

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