Raw material policy for engg units on cards
Engineering goods exporters, who have been lobbying for a steady supply of raw materials at competitive prices, seem to have finally convinced the government about the need for evolving a raw material policy.
By Ratna Ganguli, TNN |
KOLKATA: The commerce ministry has asked the Engineering Export Promotion Council (EEPC) to draw up a wishlist, delineating in what form and shape the industry wants support from the government. However, the ministry has cautioned that the sops should be compatible with the WTO framework. The draft proposals are likely to be submitted by September.
While working out its proposals, EEPC has so far come to the conclusion that it will seek duty-free import licence for raw materials against exports of value-added engineering goods.
It also wants to reintroduce an old scheme under which major steel producers were bound to supply long and flat steel products to engineering units.
EEPC chairman Rakesh Shah told ET that with the withdrawal of the scheme few years ago, engineering units are now finding it difficult to get their steel-based raw materials.
Thus, the council will suggest the government to issue a guideline wherein major steel producers will be obliged to supply long and flat steel products to those units on a priority basis.
While working out its proposals, EEPC has so far come to the conclusion that it will seek duty-free import licence for raw materials against exports of value-added engineering goods.
It also wants to reintroduce an old scheme under which major steel producers were bound to supply long and flat steel products to engineering units.
EEPC chairman Rakesh Shah told ET that with the withdrawal of the scheme few years ago, engineering units are now finding it difficult to get their steel-based raw materials.
Thus, the council will suggest the government to issue a guideline wherein major steel producers will be obliged to supply long and flat steel products to those units on a priority basis.
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