EEPC seeks restoration of interest rate subvention

The Engineering Export Promotion Council (EEPC) today demanded restoration of the interest subvention scheme for export credit, which will be withdrawn from September 30.

“With rising inflation and interest cost, we have urged the government to restore the interest rate subvention benefit of 2 per cent till March 2009,” EEPC chairman Rakesh Shah said here today.

The government in April had extended the interest subvention scheme till March 2009.

The Reserve Bank of India (RBI) has also decided not to offer the 3.5-per cent interest on the Export Earning Foreign Currency accounts.

These two benefits were offered to exporters to counter the appreciation of rupee against the dollar but after the domestic currency depreciated, the government decided to withdraw those benefits.

However, Shah said with pressure on input cost, the withdrawal of benefits will have compounding impact on the cost and competitiveness.

Meanwhile, the EEPC will organise All India Export Excellence Award for 2006-07 on August 9, which will be also attended by External Affairs Minister Pranab Mukherjee. A total 89 companies will be felicitated at the function.