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THE retention of 100 per cent export-oriented units in the new Exim
Policy scheme is good but the Government should have granted similar status to all units that are exporting more than 50 per cent of their
production so as to create a level playing ground among EOUs and DTA units, Mr T. Kannan, Chairman of the Cotton Textiles Export Promotion
Council (Texprocil), said.
The scheme to rebate high power cost by permitting import of fuel for captive power generation as a percentage of the f.o.b value of exports
was timely and Mr Kannan wanted this facility be allowed with availment of DEPB credit rates especially as the duty on fuel was not included
while calculating the DEPB rates for various textile products.
Continuation of DEPB, ALS, EPCG and the assurance that these schemes would continue till full implementation of VAT would deliver stability
to the policy and encourage exporters to get into long term contracts. Doing away with DEEC book will smoothen export obligation discharging.
The Texprocil chairman felt that facilities such as income-tax concession, exemption from CST for supplies from DTA, setting up of
overseas banking units would also go into making India a favoured destination for attracting foreign investments in textiles and clothing
projects.
Extension of export obligation under the EPCG for units referred under the BIFR and enhancement in normal repatriation of export earnings from
180 days to 360 days in case of status holders are among the positive features of the new Exim policy.
Though textiles is the single largest foreign exchange earner, the Exim policy has not contained any specific package for the textile industry,
the Southern India Mills Association (SIMA) has said.
Reacting to the long-term Exim policy unveiled by the Commerce Minister, the SIMA Deputy Chairman said that the fuel cost
neutralisation with a three to seven per cent rebate on f.o.b value of exports would mitigate one of the major burdens faced by the textile
exporters.
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