New Delhi, March 3 The Commerce and Industry Minister, Mr Anand Sharma, said on Wednesday that he wants the tax holiday to Export Oriented Units (EOU) and Software Technology Parks of India (STPI) extended by at least one more year from the present expiry date of March 31, 2011.
The Minister also pitched for a one-year extension of the interest subsidy scheme for some labour-intensive export sectors such as leather, which were left out in the Budget. Mr Sharma said he will soon take up these issues with the Finance Minister, Mr Pranab Mukherjee.
The Minister also said the proposed National Manufacturing Policy would be rolled out in August, while a comprehensive, simple and user-friendly Foreign Direct Investment (FDI) policy would be announced by March 31.
On the tax holiday for EOUs and STPs coming to an end on March 31, 2011, Mr Sharma said, “My recommendation is that the tax holiday to EOUs and STPs should be extended for one more year. But the Finance Minister has to take a view.” The Budget 2010-11 was silent on this issue. Mr Sharma was speaking to reporters on the sidelines of the CII National Council Meeting.
There are over 6,000 software units operating under the STPI scheme and they contribute 85-90 per cent of the software exports, which were around $47 billion last fiscal. On the extension of the interest subsidy scheme till March 31, 2011 for certain labour-intensive sectors that have been left out in the Budget, the Minister said, “Some of the sectors continue to get hurt, including the leather sector. I am going to take it up with the Finance Minister.” -
In the Budget, the Government had proposed to extend the interest subsidy of 2 per cent on pre-shipment export credit for one more year (till March 31, 2011) for exports covering handicrafts, carpets, handlooms and small and medium enterprises as they are still struggling.
The scheme was not extended for leather, gems and jewellery, marine products and textiles including garments on account of their recovery from the economic slowdown. For these sectors, the scheme ends on March 31, 2010. Now Mr Sharma wants these sectors also to be given an extension.
Mr Sharma said he expects exports to touch $165 billion in 2009-10 as against around $186 billion in 2008-09. “We are aiming at export growth of 20 per cent from next year. India's share in global exports is expected to double by 2014 in value terms and double in percentage terms by 2020,'' he said.
He said the Government will soon set up a taskforce with representatives from the National Manufacturing Competitiveness Council, CII and FICCI to work on the National Manufacturing Policy. A draft of this policy will be out by June, Mr Sharma said. The policy will help in setting up of National Manufacturing and Investment Zones.
The idea is to bring down the time period for granting different permissions and clearances to two weeks. In this regard, States have been asked to do zoning of land for industrial use. Only non-agricultural waste land should be used for industrial use, Mr Sharma said, adding that the Government would soon come out with a relief and rehabilitation policy for displaced persons.
Source : Business Line