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| DEPB |
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 Ministry.
However, sources said that this time around, the Finance Ministry is not yielding to exporters' demand, which was supported by the Commerce Ministry.
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.
The withdrawal of the scheme would mainly hurt the exports of automotive component and engineering, he said.
The Finance Minister in the last Budget had made it clear that the popular DEPB scheme would be phased out. The scheme has been in vogue for over a decade.
The DEPB scheme, under which companies get refunds of customs duty paid on imported raw material for manufacturing products meant to be exported, will expire on June 30.
