Financial Daily from THE HINDU group of publications
Tuesday, Apr 18, 2006
Financial Daily from THE HINDU group of publications Tuesday, Apr 18, 2006 |
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Industry & Economy
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Exports & Imports Agri-Biz & Commodities - Agricultural Policy Sops removed for EOUs, SEZs under job scheme K.R. Srivats
New Delhi , April 17 EOUs and units in SEZs will not qualify for benefits under the Vishesh Krishi and Gram Udyog Yojana (VKGUY) even if they undertake exports of fruits, vegetables, flowers, poultry, dairy, and other specified value-added products. Such units will also cease to qualify for benefits under the newly introduced Focus Product Scheme and Focus Market Scheme. This policy stance has come as a setback for EOUs that enjoying the benefits under Vishesh Krishi Upaj Yojana thanks to a DGFT circular in August 2005. The circular, however, did not grant a similar dispensation for SEZ units. While the VKGUY aims to promote exports of fruits, vegetables, flowers, fruits, and other value-added products, the Focus Market and Focus Product schemes are designed to promote exports to specific markets of specific products, and to provide employment in semi-urban and rural areas. In the Annual Supplement to the Foreign Trade Policy, unveiled last week, the Government has made it clear that exports made by SEZ and EOU units would not be taken into account for duty credit entitlement under the VKGUY. Under the VKGUY, duty credit scrip equivalent to five per cent of the f.o.b. value of exports is granted to exporters. The Export Promotion Council for EOUs and SEZs (EPCES) has now represented to the Commerce Ministry that this policy move should be reviewed. "I don't see any reason why the EOUs and SEZ units should be denied benefits under all the three schemes," Mr L.B. Singhal, Director-General of EPCES, told Business Line. He said that a number of EOUs exporting gherkins, cut flowers, guargum, spices, and vegetables were enjoying benefits under the Vishesh Krishi Upaj Yojana ever since the DGFT circular.
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