The popular Duty Entitlement Pass Book (DEPB) scheme for exporters is likely to face the axe after it ends on June 30 as the Finance Ministry has pitched against its continuation.
The DEPB, under which exporters get sops to the extent of 8-9 per cent of the value of shipments, has been extended year after year by the Finance Ministry on the recommendation of the Commerce and Industry Ministry.
Officials said indications that the scheme will face the axe had been coming for the last few months when during discussions the Finance Ministry officials had given strong hints that the scheme would not be continued beyond the June 30 deadline. Although, the Commerce Ministry has advocated continuation of the scheme and come out in support of exporters, the Finance Ministry has shown no inclination for continuing with the scheme.
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However, exporters are not giving up hope and will lobby hard in the coming weeks for continuation of the benefit, which makes their exports competitive in the global market. According to the Federation of Indian Export Organisations (FIEO), the DEPB scheme should continue for at least five more years in light of tough conditions in the international market.
“If the government is committed to a stable policy environment, the DEPB scheme should be extended immediately so that exporters can negotiate with the buyers for better costing,” FIEO President Ramu Deora said.
He said the withdrawal of the scheme would mainly hurt exports of automotive components and engineering. The Finance Minister, Pranab Mukherjee had indicated during his budget speech that the popular DEPB scheme would be phased out.
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