Business IdeasGovt extends time period for incentive schemes
In order to give a boost to exporters, reeling under the impact of the global financial meltdown, the government today said that various schemes like DEPB that provide incentives to exporters would continue.
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"We have taken conscious decision to continue with the DEPB scheme up to December 2010, and also income tax benefits under section 10(A) for the IT industry," Commerce Minister Anand Sharma said while unveiling the Foreign Trade Policy here.
The Duty Entitlement Passbook (DEPB) Scheme, under which duty credit is provided to exporters, has been extended for another year. This scheme was to end on December 2009.
The Minister further said that 100 per cent Export Oriented Units (EOUs) and STPI (Software Technology Park) units would be entitled to various tax benefits in the next fiscal.
"Under section 10(B) for 100 per cent export oriented units would continue for one more additional year till 31st March 2010," the policy added.
India has set a target of $200 billion worth exports for next fiscal, a feat that it failed to achieve in 2008-09 due to a slump in global demand in the face of financial crisis.
Meanwhile, the adjusted assistance scheme which was initiated in December last year for the adversely affected sectors will continue till March 2010, the policy said.
"Enhanced insurance coverage and exposure for exports through Export Credit Guarantee Corporation (ECGC) Scheme has been ensured till 31st March 2010," the Minister said.
ECGC provides a range of credit risks insurance cover to exporters against loss in exports of goods and services. It also guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.
Also, another benefit given to the exporters in the form of interest subvention of two per cent for preshipment credit for seven specified sectors has been extended till March 2010.
The government also proposed to relax the EPCG Scheme to facilitate export of second hand plant and machinery.
"Export obligation on import of spares, moulds and others under the EPCG scheme has been reduced to 50 per cent of the normal specific export obligation," the trade policy said.