holds meeting with Shri Vinod Rai, Additional Secretary (Banking)
delegation comprising Mr. R. Veeramani, Chairman EPCES, Mr. Sharad
Jaipuria, Vice Chairman, EPCES, Mr. L. B. Singhal, Director General,
EPCES, Mr. R. K. Sonthalia, Working Committee Member, Mr. P. C.
Nambiar, Working Committee Member and Mr. Sunil Jain, Managing
Director, I. C. Textiles Ltd, met Shri Shri Vinod Rai, Additional
Secretary (Banking) on December 17, 2003. In the meeting, following
issues were taken up with the Additional Secretary (Banking):-
Providing Pre-shipment Credit in Foreign Exchange on priority
to EOUs and SEZ Units
ii) Making operational Textile Restructuring Fund
iii) Whole Turnover Packing Credit Guarantee Commissioner (WTPCGC)
should not be passed to the EOUs/SEZ Units.
iv) High transaction cost for banking
v) Cost of finance
vi) Crystalisation of export bills
vii) Stamp duty on export DA bills
viii) Interest on bill discounting
ix) Extending the facility of Offshore Banking Units (OBUs) to
x) Doing away with the requirement of Collateral Security.
xi) Long term financial requirements for EOUs & SEZ Units
xii) Availability of Packing Credit limit on adhoc basis
xiii) Impact of appreciation of Indian rupees on exports
xiv) Export bills discounting
xv) Import bill payment
the meeting Shri Vinod Rai, Additional Secretary (Banking) observed
Shri Vinod Rai, Additional Secretary (Banking) appreciated the
contribution of EOUs/SEZ Sector and assured that he will explore
the possibility of making Pre-shipment Credit in Foreign Exchange
to EOUs/SEZ Units on priority. He will also request RBI to explore
the possibility of making available finance to EOUs from OBUs.
Shri Vinod Rai, Additional Secretary (Banking) has taken prompt
action immediately after the meeting. He has sent a communication
to Shri A.K. Purwar, Chairman, State Bank of India, Shri S.S.
Kohli, CMD, Punjab National Bank, Shri M. Venugopalan, CMD, Bank
of India, Shri R.V. Shastri, CMD, Canara Bank, Shri P.S. Shenoy,
CMD, Bank of Baroda and Shri S.C. Gupta, CMD, Indian Overseas
Bank informing that the difficulty of EOUs and SEZ Units appear
to be major deterrent in their capacity to compete in the foreign
market especially so when the dollar premium has declined considerably.
In this context, low cost finance in the form of pre-shipment
credit becomes very critical for such units. He has requested
that difficulty of EOUs and SEZ Units appears to be genuine and
they deserve to be provided Pre-shipment Credit in Foreign Exchange
on priority basis.
Shri Vinod Rai, Additional Secretary (Banking) while appreciating
the problems of EOUs/SEZ Units has again very promptly written
to RBI, immediately after the meeting, that EOU/SEZ Sector has
registered a very convincing growth in exports and their contribution
to the GDP has been very substantial. He has stated that easy
availability of finance to EOUs/SEZ Units would help export sector
in very large measures. It would also take care of their need
for availing long term loans in foreign currency at reasonable
rates. He has requested RBI to explore the possibility of extending
EOUs the facility of availing finance from OBUs.
Shri Vinod Rai, Additional Secretary (Banking) also informed to
EPCES that problems relating to availability of funds for the
Textile Restructuring has been resolved and funds would be made
available from Monday, December 22, 2003 onwards.
may also draw your attention to our Circular dated 12-12-2003
wherein we have informed you about the participation of India
Trade Promotion Organisation (ITPO) in Cairo International Fair,
Cairo (Egypt) from March 16 to 26th 2004 and Electronics and Computer
Software Export Promotion Council (ESC) fourth series of its annual
INDIASOFT 2004 from 10 to 12th February 2004 in New Delhi Please
send your response at the earliest, in case you are interested