DEPB relief for cement, steel exporters

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New Delhi, Nov 14: To bail out the steel and cement industries, reeling from under crash in prices and lack of demand, the government on Friday announced export incentives for the two sectors.

Exporters of cement and several steel items will again be entitled for tax refunds through Duty Entitlement Passbook Scheme (DEPB). DEPB benefits were withdrawn earlier this year when prices of these two commodities had shot up.

The two sectors have also been included in the Focus Market Scheme of the government, allowing them to boost their exports to the third world, the directorate general of foreign trade said in a statement.

The focus market incentives will come in the form of 2.5% duty credits, which can be used for customs payments by the industry.

The export sops are however limited only to shipments to Latin America, Africa and eastern Europe.

The move is expected to be significant for the steel industry, which is plagued by high inventories due to lower global demand and a sharp correction in prices.

Prices of the metal have halved in the last two months from a high of Rs 10,000 per tonne in May to Rs 5,000 per tonne now.

Consequently, the government has in recent weeks announced a number of incentives for the sector such as lowering the export duty on them and providing rail freight discounts to iron ore meant for exports.

•The focus market incentives will come in the form of 2.5% duty credits

• The export sops are limited only to shipments to Latin America, Africa and eastern Europe