Mee Benefits Not Likely To Be Restored

The textile ministry is unlikely to do away with the new investors entitlement (NIE) as demanded by several exporters. The policy is to be announced once it is approved by the textile minister.

However, percentages allotted to different categories - past performance entitlement (PPE), first-cum-first-served basis (FCFS) and NIE are to be changed, said sources. The NIE is at present 10 per cent of the total quota entitlement. Ten per cent is on a first cum first served basis and 80 per cent is based on past performance.

While sources refused to disclose the exact entitlements suggested, it was pointed out that these percentages could vary widely - the PPE has been as low as 25 per cent in 1982. In 1992 and 1993 it was 40 per cent. The FCFS could also be raised by 5 per cent since it leads to higher unit value realisation.

 

Several suggestions such as a special quota for branded textiles/garments and another special allotment for ISO 9000 companies have also been made to the ministry.

The New Investor's Entitle-ment is unlikely to be abolished in the coming garment export quota policy to be announced soon.