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Tuesday,
April 1, 2003, Chandigarh, India  
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Exim policy focuses on services exports
Industry welcomes Exim policy
Exim policy to benefit engineering industry
HSIDC team’s visit to Hong Kong put off |
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SEZ rules codified New Delhi, March 31 The government today allayed fears that the concept of Special Economic Zones (SEZs) has failed in India despite criticism from certain quarters that delay in implementing greenfield SEZ projects have not yet taken off. EPCG
scheme made flexible
Allahabad Bank to tie up with LIC
Overseas Bank public issue in September
GDP growth slows down
Markfed to pay ex gratia to staff Pawan Hans pays 10 pc
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Exim policy focuses on services exports
New Delhi, March 31 At the same time Special Economic Zones (SEZs), modelled on the Chinese success story, continues to remain as the main instrument for furthering merchandise exports. Significantly, though the Exim policy for 2003-04 unveiled by Commerce and Industry Minister Arun Jaitley here steers clear of making even a cursory mention on the possible affects of the ongoing Iraq war on India’s trade prospects. Speaking to newspersons later, the minister, however, indicated that the government was concerned with the developments in West Asia and its possible adverse impact on India’s external sector. “It will really depend on how long the war lasts”, Mr Jaitley said. The Gulf region accounted for as high as 11 per cent of India’s total exports and during April to December, exports from India to this region grew by 6.33 per cent. At present, export orders to the tune of Rs 1,000 crore were in various stages of execution. Of this, orders of approximately Rs 600 crore were currently in transit and the government was discussing ways and means to enable the landing of these shipments in Syria and Jordan, away from the conflict zone of Iraq. In an attempt to give an impetus to services exports, the policy has provided for duty-free import facility for the service sector having a minimum foreign exchange earning of Rs 10 lakh. “We propose to allow import of consumables, office and professional equipments, spares and furniture up to 10 per cent of the average foreign exchange export earning in the previous three years”, Mr Jaitley said. In addition, the minister said since many sectors had not even made a beginning in the direction of exports, it had been decided to extend the facility even to new comers against bank guarantee to the extent of the revenue sacrificed. To promote export of education and entertainment, suitable tax incentives and contributions to venture capital funds which will provide finance to the sector. For the farm exports, the government has proposed to rein in corporates with proven credentials in the implementation of Agri Export Zones “to give a boost to productivity and quality of specified agro products leading to accelerated exports”. Another initiative has been proposed to modify the norms for fixing the Duty Entitlement Passbook (DEPB) scheme rates for export of agriculture, horticulture and allied products. “In fixing the DEPB rates for such products, we will take into account inputs such as fertilisers, pesticides, certified seeds, etc. used by farmers prior to processing of the products for exports”, Mr Jaitley said. The policy said the government would explore the possibility of developing a scheme with features akin to the SEZ regime for export- oriented units in selected sectors with capital investment in plant and machinery of over Rs 25 crore. The policy has also removed quantitative restrictions on export of five items: paddy (except Basmati), cotton liners, rare earth, silk cocoons, etc. He said special focus would be given to certain sectors having potential for accelerated export growth, such as textiles, auto components, gems and jewellery, chemicals, drugs and pharmaceuticals and electronic hardware. The minister also announced the launch of “Focus CIS” programme effective tomorrow.  |
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Industry welcomes Exim policy New Delhi, March 31 “The Exim policy has put in place the building blocks for India to achieve one per cent share in the global export market by 2007”, said FICCI. Terming the policy as ‘pro-active’, which has kept long term objectives in focus, the Federation said the government has successfully identified key engines for long term export growth. PHDCCI President Mr P.K. Jain said the focus on services sector — entertainment, tourism etc would give a boost to the exports. Describing the policy as bold and pragmatic, Assocham said the removal of five items from the restricted list of exports would contribute towards the overall export effort and help attain the country one per cent share in the global market. National President of the
Indo-American Chamber of Commerce Mr Vinod Chandiok said the policy would provide fillip to the international trade and business. The special attention given by the government to Special Economic Zones was the need of the hour as SEZs in various countries have had a significant contribution towards export development, said Mr Jain. MAIT, the association of IT Hardware industry said the measures announced by the Commerce and Industry Minister Mr Arun Jaitely are of special significance to the
electronic hardware industry which has been suffering due to negative duty differentials. “The policy includes an altogether new
framework for EOU, EHTP, STP and SEZ units, which would benefit the hardware sector”, said Mr Vinnie Mehta, Executive Director, MAIT.
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Exim policy to benefit engineering industry Chandigarh, March 31 Welcoming the policy initiatives, Mr S.C. Ralhan, Regional Chairman, Engineering Export Promotion Council (EEPC), said, “We are satisfied that the Commerce Minister has accepted most of our suggestions including to continue the DEPB scheme and duty free import of second hand machinery, up to 10 years period. It would help upgradation of technology and improvement in production efficiency.” The exporters have urged the state government that to get full benefits from the new exim policy. It should come forward to set up a special economic zone (SEZ) in the state. They said Ludhiana could be easily developed as a SEZ to promote the exports of auto parts, machine tools and other engineering goods. Other exporters said though prolonged Iraq war had badly affected the export to middle east countries, but the new exim policy has given a relief to the industry. Further government’s decision to announce package for the revival of sick units would also benefit the industry, they said.
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HSIDC team’s visit to Hong Kong put off Chandigarh, March 31 Significantly, besides meeting Taiwanese investors in connection with setting up of a proposed park of Taiwanese industries in Haryana, the visiting team from the Haryana State industrial Development
Corporation (HSIDC) is also expected to set right a botched joint venture project between a Chinese two wheeler company and a controversial Haryana entrepreneur. The itinerary of the Haryana team will include a meeting with representatives of the Chinese company in Hong Kong regarding finding an alternative Indian associate for the foreign investors. The Chinese company, PMI-Asia Co., had earlier signed a MoU with one Mr Mewa Singh Bedhian, Chairman cum Managing Director of Dayan Nagakawa Ltd, regarding setting up a plant at Manesar. The MoU was signed in the presence of the Haryana Chief Minister, Mr Om Prakash Chautala when he led an official delegation to Shanghai last year. This, however, triggered off a controversy with Mr Karan Singh Dalal, an Opposition MLA of Haryana, alleging that Mr Mewa Singh had been declared a proclaimed offender by the court following a complaint made by the Bank of Punjab. He said that Panipat Police had registered a case against Mewa Singh for taking Rs 40 lakh as loan from the bank in a fraudulent manner. Mewa Singh’s version that he had himself filed a case against the Bank of Punjab in the Chandigarh Debt Recovery Tribunal and that he was not aware of the case registered against him at Panipat was also challenged by Dalal. Meanwhile, the state government clarified that though the Chief Minister was present at the function in which MoU was signed between Mewa Singh and his Chinese collaborators, the entrepreneur was not a member of the visiting Haryana Government delegation. It is not clear why the PMI-Asia has developed cold feet about setting up a joint venture with Mewa Singh’s company despite signing an MoU. When contacted, Mr M K Miglani, chairman of the HSIDC claimed that he had no idea about why the Chinese company wanted to snap ties with its Indian partner. “It is an internal matter between the two companies”, he said and added that the HSIDC did not play any role in bringing the two companies together. He also added that since Mr Chautala and other members of the Haryana Government delegation “happened to be” in Shanghai when the MoU was signed, they had taken part in the function. “Land has been allotted at Manesar to the PMI-Asia only and the plant is coming up. They have requested us to help them find an alternative partner and it is in our interest to respond to their request so that the project gets going”, Mr Miglani said. He said that PMI-Asia intended to manufacture motorcycles that would be cheaper than the motorcycles currently available in India. The proposed tour by the two-member team, comprising of himself and Mr Harbaksh Singh, MD of HSIDC, would be given final shape depending upon how soon the SRAS epidemic was brought under control in Hong Kong and elsewhere in south east Asia, the HSIDC Chairman said. It would be a whistle stop tour and they were likely to spend one day each in Hong Kong and Taipei, he added.
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SEZ rules codified New Delhi, March 31 Union Commerce Minister Arun Jaitley said that an initiative was being taken for the simplification and codification of rules, regulations and procedures applicable to SEZ and EOU units. “All these rules and regulations are being put in one place. This should greatly facilitate both potential investors as well as existing units these sectors”, Mr Jaitley said. Besides the government will also simultaneously explore the possibility of developing a scheme with features similar to the SEZ regime, for EOUs in selected sectors with capital investment in plant and machinery over Rs 25 crore. In addition, sales from domestic tariff area (DTA) to SEZs would be treated as exports and this would now entitle domestic suppliers to drawback/DEPB benefits etc. Further, horticulture and agriculture processing SEZ units would be allowed to provide inputs and equipments to contract farmers in DTA to promote production of goods as per the requirement of importing countries, which would help in promoting SEZs specialising in agro exports. A comprehensive legislation on SEZs was on anvil and to enable exporters access to funds at international rates, a suitable fiscal package for offshore banking units set up in SEZs are being worked out.
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EPCG
scheme made flexible New Delhi, March 31 Unveiling the Exim Policy 2003-04, Union Commerce and Industry Minister said that the scheme will now be more flexible and allow import capital goods for pre-production and post production facilities also. In addition, import of spares will be allowed under the scheme subject to the same conditions, thereby rendering the condition of allowing 20 per cent of spares along with the import of capital goods redundant. The existing condition of increase in export obligation by 50 per cent in case of export of a product higher up in the value chain is being done away with. “This is being done to allow for changing conditions in the international market in which the export of a particular product may not be remunerative or feasible at a particular point of time. This facility will be subject to the condition that average export of the substitute product will be taken into account in fixing the revised export obligation”, Mr Jaitley said. Capital goods upto 10 years will now be allowed under this scheme. In addition, existing manufacturer-exporters will be allowed to fulfil export obligation arising out of import of capital goods under the EPCG scheme for setting up of software units through export of manufactured goods of the same company.
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Allahabad Bank to tie up with LIC
Kolkata, March 31 “The board has approved on Saturday a proposal to sign an agreement with LIC to offer life insurance cover to all our depositors. A memorandum of understanding will be signed with LIC next week,” Bank chairman & managing director B. Samal told reporters here today. As per the proposal, all depositors having a minimum balance in their account would be offered the scheme under which they could avail life insurance cover by paying a modest premium and get “hassle free settlement for the Rs one lakh amount in case of loss of life within the period”.
CMD retires
B. Samal, the Chairman and Managing Director of Allahabad Bank, retires today. |
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Overseas Bank public issue in September Chandigarh, March 31 Addressing a press conference, he disclosed that the with the issue of Rs 100 crore, the share of government in the bank would come down from 75 per cent to 61 per cent. About 24,000 employees of the bank, he said, would be also offered about 10 per cent of the shares. The shares would be sold at a premium, and the actual rate of premium would be soon decided, he said. Mr Gupta said, the bank has decided to expand its ATM network and to open new branches in the profitable areas. It is planning to open two branches in Chandigarh and 2-3 branches in Ludhiana and surrounding towns.
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GDP growth slows down
New Delhi, March 31 The Gross Domestic Product during October-December 2002-03 amounted to Rs 3,52,637 crore, which was only 2.6 per cent higher than Rs 3,43,737 crore in the year-ago period. GDP, which grew by a robust 6 per cent in the first quarter followed by 5.8 per cent in the next quarter, could not sustain the growth momentum despite impressive performance of services and manufacturing sectors, figures released by Central Statistical Organisation revealed today.
PTI
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Markfed to pay ex gratia to staff Chandigarh, March 31 The ex gratia will be paid in lieu of bonus at 20 per cent of the wages, subject to a maximum of Rs 7,500 per employee, according to Mr S.S. Channy, Managing Director of the Punjab Markfed. The employees called off their dharna following the announcement by Mr Channy. The employees used to be paid bonus in terms of the provision of the Bonus Act. However, for the past few years, those who did not fall within the purview of the Act, were being paid ex gratia in lieu of bonus. The ex gratia for 2001-2002 could not be paid which led to an agitation by the employees.
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Pawan Hans pays 10 pc New Delhi, March 31 The dividend of Rs 11.38 crore constitutes 10 per cent of its paid up capital. Civil Aviation Minister Syed Shahnawaz Hussain was handed over the aggregate dividend cheque of Rs 26.79 crore by PHHL CMD Nagar V Sridhar here. An amount of Rs 7.35 crore is being paid separately to Oil and Natural Gas Commission (ONGC), holding 21.5 per cent share in the company. |
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Power pact Wine industry IDBI Bank Ceat tyres |
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New Delhi, March 31
