EEPC plans for 15 per cent annual growth

In a bid to achieve 15 per cent consistent growth for next half a decade, Engineering Export Promotion Council (EEPC) has decided to come out with a consultation paper to assess the opportunities and challenges ahead of the engineering sector.

Informing this, Rakesh Shah, the newly elected chairman of the council said a consultant would be appointed soon to prepare the report.

"It will spell out the role council as well as the government should play to optimise the export potential. Moreover, it will lay special emphasis on China which is posing challenge before us," Shah said in his first interaction with media after taking over the charge. The report will be ready within three to five month time.

Engineering sector is one of the leading net foreign exchange earner for the country. In 2003-4, the sector exported $ 10 billion, registering a growth of over 27 per cent. It has set a modest target of $ 11.5 billion for the current financial year.

To facilitate export with the US, largest importer for India's engineering product (20 per cent of total export), the council has decided to set up a warehouse for Indian engineering goods "Indiamart" in Chicago, USA. It is expected to be operational in the next six months.

The total cost for 'Indiamart' was estimated at Rs 2.42 crore of which Rs 1.45 crore would come as government grant and the balance would be contributed by members.

Shah pointed out some policy changes at the Centre would help the export community further. The continuation of the DEPB scheme was essential to benefit the SME sector which neither had the required infrastructure to import raw material duty free nor were their requirements large enough for economical imports.

The council also wished exemption of profits derived from exports from income tax under section 80 HHC, 80 HHB and 80 O or some alternate scheme to be introduced so that the exporting units could use their surplus fund for modernisation of exporting units.

Shah also suggested that the government should come out with some package to avoid procedural hassles in bringing plant and machinery, technical know-how, training of people as outsourcing by developed countries was becoming increasingly popular.