With exporters in the region experiencing financial setback, Haryana is banking on 57 Special Economic Zones (SEZ) which have been granted in principal approval to increase its export potential. An investment of about Rs 2 lakh crore would be pumped into the state through these SEZs with an employment potential of 30 lakh jobs.
The exporters discussed their woes with the bank representatives and government officials at the 3rd meeting of the sub-committee of state level bankers’ for export promotion in Haryana and Chandigarh convened by Punjab National Bank.
The exporters lamented about no benefits being given to the Export Oriented Units (EOU) at par with the SEZs. The state had received 82 proposals for setting up of SEZs and so far 57 have been approved, 12 SEZs have been notified and five are already functional. “But we find it very difficult to dislocate ourselves and set up a unit within the SEZ and start afresh. We want that the fiscal benefits should be extended to all- EOU, SEZ, or a normal exporter. The controlled mechanisms should also be diluted to various sectors to promote exports at the lower levels as well. Moreover, we want that there should be timely execution of our loan applications. And the interchangeability of currency should be fast when we apply for foreign currency loans,” rued an exporter.
JM Garg, executive director Punjab National Bank informed that to tackle the problem RBI has taken various steps for expeditious provision of financial assistance to the export sector at competitive rate of interest and for removing procedural hassles. “Ceiling has been prescribed by RBI on interest rates on export credit in rupees and in foreign currencies. Scheme for subvention in rate of interest for export credit by 2% to all small and medium enterprises and other units in specified sectors has been announced. Banks have been advised to issue Gold Card to all eligible exporters, including those under small and medium sector, with good track record,” said Garg.
He further added that all the banks have been advised by the RBI to achieve export credit to net bank credit ratio of 12% on an average basis. Although outstanding export credit increased to Rs 86,207 crore on March 2006 from Rs 10,695 crore as on March 1992. The export credit to net bank credit ratio, which was over 13% during 1994-95 and 1995-96 has declined over the years and is around 6% ? 7% in March 2006. He urged upon the bankers to initiate urgent steps for increasing export credit disbursement and outstanding in order to achieve the target of 12% prescribed by RBI.
Meanwhile talking about the increase in exports in the state, DR Dhingra, special secretary and director industries, Haryana said, “The exports from Haryana have been pegged at about Rs 25,000 crore in 2005-06, and we hope that it will touch Rs 30, 000 crore this fiscal. The state enjoys 3rd place in India in Software exports, which were for Rs 12,000 crore, 10% of total Software exports in India. The freight subsidy is also provided by the department to the exporters and various other incentives have been declared in the Industrial policy of the state.”