Rs1400cr package announced for exporters
New Delhi: The finance ministry has announced a set of measures to mitigate the loss of exporters due to an appreciating rupee. The measures include decreasing the pre- and post-shipment credit by 2 percentage points, raising duty drawback rates and doing away with monthly and quarterly ceilings on deemed exports reimbursements like central sales tax.

The package will cost the state exchequer Rs1,400 crore. While the reduction of interest rates on pre export and post export credit will cost Rs600 crore, the increased duty drawback rates will cost between Rs500 crore and Rs600 crore.

While the benefits of the lower interest rates on pre- and post-shipment credit will be applicable to all small and medium exporters, who account for nearly 90 per cent of the community, nine sectors including textiles, toys and ready-made goods will also be eligible for it. The relief will be available from April 1, 2007 to December 31, 2007.

Rates for duty drawbacks — a scheme through which an exporter gets back a part of the duty paid on inputs — have been enhanced by up to 3 percentage points on most items while Rs600 crore will be released to the commerce ministry for reimbursements of deemed export benefits.
Back to News Review index page  

Retirement age raised for employees of profitable PSUs
New Delhi: The Union Cabinet has approved to empower the Ministers concerned in various administrative Departments to increase the retirement age of employees of profitable Central public sector undertakings (PSUs) from 58 to 60.

In order to qualify for this, the PSUs should have posted profit and positive net worth in the previous three financial years.

This benefit would be restricted to PSUs that have not taken Budgetary support in the last three years for their non-Plan expenditure for salary, wages, payment of statutory dues, payment for voluntary retirement/separation schemes and payment to meet cash losses.

No Budgetary support for the same will be availed by the PSUs in future, according to an official release.
Back to News Review index page  

Russia to lift ban on Indian rice after quality assurance
New Delhi: Russia will soon lift the ban on Indian rice, groundnut and sesame seeds as the two countries last week signed a protocol in Moscow wherein India assured that future consignments will be free of contamination. The Russian government has promised India that the lifting of the ban on the three products will be announced shortly.

The ban was imposed in May this year, following alleged detection of pesticides in Indian rice and pests and harmful fungus in groundnut and sesame seeds.

Though the ban was imposed in May orders booked before the date of ban were exempted. This allowed consignments to be cleared till last month. Since then, there has been no export of rice to Russia. India, however, maintained that it adhered to international sanitary & phytosanitary norms and the next crop of rice expected in November will be totally free of the identified pesticide. India exports about 50,000 tonne of rice to Russia every year.

Earlier last year, Russia's federal agency of veterinary and phytosanitary control, Rosselkhoznadzor, issued a press release announcing the suspension of rice imports from Thailand, Vietnam, Sri Lanka and the US.
Back to News Review index page