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Govt rules out SIL extension, alternate to DEPB on cards

The government will soon constitute a high-powered committee for suggesting an alternative to the duty entitlement pass book (DEPB) scheme for exporters, Director General of Foreign Trade N L Lakhanpal said on Monday.

The committee will also start work on formulating the new medium-term Exim Policy for a five-year period 2002-2007, Lakhanpal said at an interaction with the PHD Chambers of Commerce and Industry. Exporters have been clamouring for the extension of the DEPB scheme, which the government has allowed to run for one more year.

Meanwhile, commerce secretary Prabir Sengupta on Monday ruled out any extension to the special import licences.

"SILs are just not extended,'' Sengupta said at another seminar on the Exim Policy, organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).

Since the premium on SILs has drastically come down, the exporters were not able to cash in on this transferable incentives.

He also declined the request from a section of the industry that the import of second hand machinery be allowed under the export promotion capital goods (EPCG) scheme. Under the scheme, duty-free import of capital goods is allowed for facilitating exports.

The commerce secretary said that the government has also to keep the interest of the domestic capital goods in mind while looking at any other request.

UNI

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