Date:27/06/2004 URL: http://www.thehindubusinessline.com/2004/06/27/stories/2004062701590300.htm

Back EOU body presents pre-budget wishlist

Our Bureau

New Delhi , June 26

A DELEGATION led by the Chairman of the Export Promotion Council for Export-Oriented Units and Special Economic Zone (EPCES) met the Union Commerce & Industry Minister, Mr Kamal Nath, to present pre-Budget and pre-Exim Policy memorandum, demanding policy support for the balanced growth of the sector.

In their memorandum, the Chairman, EPCES, Mr Sharad Jaipuria, pleaded to do away with Sunset Clause of 2010 under Section 10B of the Income Tax Act for EOUs, since as per the extant provisions, income-tax exemption is available only until financial year 2009.

He also noted that domestic tariff area (DTA) sale from EOUs should be allowed based on the norm of duty foregone on imported inputs. Duty foregone could be arrived at on the basis of standard input-output norms on self-declaration basis, he said adding that EOU and SEZ units should be freely allowed to purchase power from Central Government agencies like NTPC at competitive rates without additional cost of wheeling charges and cross subsidy.

The Director-General, EPCES, Mr L.B. Singhal, demanded fast-track clearance for EOUs so that established units could focus on their exports without any hindrance. Timeframe needs to be prescribed for every activity, which is being performed, by customs and central excise field formations.