Govt announces Rs 1,050-cr sops for exporters

In the face of ‘fragile recovery' of the world economy, the Government today extended export sops worth Rs 1,050 crore.

The export policy support measures covered labour-intensive segments such as leather, handloom, and handicrafts, and some engineering sectors for both market diversification and technological upgradation. The popular Duty Entitlement Passbook (DEPB) scheme for imported inputs was extended by another six months.

The measures unveiled by the Union Commerce and Industry Minister, Mr Anand Sharma, in the Annual Supplement to the Foreign Trade Policy, include additional benefit of 2 per cent bonus over and above the existing benefits of 5 per cent (3 per cent for focus market scheme and 2 per cent for focus product scheme of f.o.b., or free-on-board, value), for 135 existing products.

The zero duty Export Promotion Capital Goods scheme introduced in August 2009 and valid for two years has been further extended by one more year till March 31, 2012 and would cover new units of paper and paperboard, ceramic products, refractories, glass, plywood, marine products, sports goods and toys and additional engineering products. As status holders contribute substantially to exports, the one per cent Status-Holder Incentive Scheme is extended by one more year to 2011-12. This scheme, to support status holders upgrade technology, was introduced in August 2009 and was valid for two years. It would now cover additional segments such as chemicals and allied products, paper and paperboard, glass and glassware, rubber, plywood, electronic products, sports goods and toys. It also provided for additional flexibility for transferability of duty credit scrips under Vishesh Krishi and Gram Udyog Yojana scheme by allowing transfer of scrip for import of cold chain equipment to units in the Food Park.

For the beleaguered readymade garment industry, the benefits under the Market-Linked Focus Product Scheme provided earlier for six months has been extended up to March 31, 2011 for exports to 27 countries of the European Union.