To put the record straight, Lakhanpal said there had been defaults only to the extent of about 6 to 7 per cent of the total export onus so far since 1991-92. In value terms, the unfulfilled portion of the obligation is just about Rs 2,000 crore.

During the above period, the country's total exports were estimated at about a million crore, he explained adding that the obligation remaining to be completed was therefore quite negligible.

In any case, under the EPCG scheme, the export commitments were still continuing as the export obligation in some cases were to be fulfilled in a period of eight years from the date of import of capital goods allowed under the scheme.

It was against thisbackdrop, DGFT had issued a notification allowing extension of the period of export obligation by one-a-half years in the case of advance licence scheme and by two years in the case of the EPCG scheme both having taken effect from April 1 this year. The extension was subject to exporters executing a bank guarantee.

"It is not the government's intention to dislodge those exporters who have defaulted on their obligation. We want them to remain in business so that they contribute to the country's exports", Lakhanpal pointed out. The notification follows the new provisions in the revised Exim policy notified by commerce minister Ramakrishna Hegde on March 31.

The policy has allowed continuation of imports of capital goods at 10 per cent duty and at zero duty under the EPCG scheme. The only difference is that no second-hand capital goods will be allowed under the 10 per cent duty scheme, while no such restrictions will apply to imports under the zero duty window.

The continuation of the 10 per cent dutyscheme is notwithstanding reports that there has been a lack demand for imports under it because of recessionary trends at home. Reports also have it that some exporters have been staggering their imports due to uncertainty about the rate of return on investment.