Govt lowers SSI export obligation

LUDHIANA: In order to enhance the competitiveness of the Small Scale Industries (SSI) engaged in exports, the Central government has lowered the export obligation of SSI units under the Export Promotion Capital Goods (EPCG) scheme if they import capital goods.

"A SSI unit would now have to export six times of duty saved as compared to an ordinary unit exporting eight times of duty saved under EPCG scheme. This initiative is taken to give fillip to the export," said K T Chacko, Director General of Foreign Trade (DGFT).

To boost the exports of agri-based products, the Central government will also provide duty entitlement of five per cent of total value of exports to SSI units under Vishesh Krishi Upaj Yojna, he added.

Admitting that the growth of export of agri-based products in the country is below the average level of export growth, Chacko said that the government had just started focusing on the promotion of export of agri-products during last two years.

For the development of infrastructure in the country, the government has also earmarked Rs 500 to Rs 1000 crore for the infrastructure development under Assistance to States for Infrastructure Development for Exports (ASIDE), Chacko said. The government is also focusing on the setting up of cold chains and Agri Export Zones in the country, he added.