Confederation Indian Industry president Rajesh Shah and Federation of Indian Chamber of Commerce and Industry president KK Modi stated that there were several positive measures in the package which the exporting community has been seeking for some time.

Shah termed the policy as ``landmark'' and said the government decision to pay interest to exporters for delayed payment of duty drawback or refund if terminal excise duty beyond two months was path-breaking and historic. He said the exporters would be relieved of enormous financial burden with the release of large accumulated funds blocked with the government.

Modi on the other hand said that there had to be a focussed attempt to help Indian exporters overcome their infrastructural difficulties so that their export competitiveness is even with their counterparts abroad. Uninterrupted supply of power, moreinvetment in sophisticated equipment for port handling, banning strikes in ports etc deserve focussed attention.

On the policy side, Modi observed that the DEPB scheme had to be more broadbased so as to include the unrebated commodity taxes being levied by the state governments. The EPCG scheme under the lower threshold limit of Rs 1 crore should cover all extreme focus items, he said.

The dollar zones can be implemented whereby all the transactions in these zones including the payment to the labour can be done in dollar terms. This would give these zones the insularity from labour laws so as to right size their labour depending on the market conditions, Ficci president said.

FIEO joins chorus

The Federation of Indian Export Organisations (FIEO) has welcomed the special package of measures for boosting exports. The package was announced by commerce minister Ramakrishna Hedge in Lok Sabha on Wednesday.

FIEO president Ramu S Deora has said the special package would boost the morale of theexporting community as much awaited demands of the exporters have been, at least partly, met. These include reduction in the rate of pre and post shipment credits from the existing 11 per cent to 9 per cent; payment of interest on delayed (beyond two months) disbursement of exporters' dues on account of duty drawback or refund of terminal excise duties legal undertaking (LUT) facility for manufacture-exporters having good track record of exports; facility of single mother bond on annual basis instead of giving separate bond for fulfillment of annual basis instead of giving separate bond for fulfillment of different obligations with the excise and customs authorities and allowing manufacturer-exporters with specified turnover, clearance of goods on the basis of self-certification.

FIEO chief said that the procedural changes as a promotional measure in respect of EOUs and electronic sector which would help these sectors to enhance their export efforts and enable them to compete in the internationalmarket.

Deora hoped that the banks would immediately extend the facility of reduced rate which was available only up to March 31, 1999 in the case of pre and post shipment credits and the exporters would get sufficient funds to meet their requirements for execution of their export obligations.

The FIEO chief, however, pleaded for measures to enhance the premium of special import licence. He added that the steps should be announced soon as the current low premium was making exports uncompetitive.