The Engineering Export Promotion Council (EEPC) today demanded restoration of the interest subvention scheme for export credit which will be withdrawn from September 30.
"With rising inflation and interest cost we have urged the government to restore the interest rate subvention benefit of two per cent till March 2009," EEPC chairman Rakesh Shah said here today.
The government in April had extended the interest subvention scheme till March 2009.
The Reserve Bank of India has also decided not to offer the 3.5 per cent interest on the Export Earning Foreign Currency accounts.
These two benefits were offered to exporters to counter the Rupee appreciation but after the domestic curreny depreciated, the government decided to curb those benefits.
However, Shah said with pressure on input cost, the withdrawal of benefits will have compunding impact on the cost and competiveness.
Meanwhile, EEPC will organise All India Export Excellence Award for 2006-07 on August 9.
Union External Affairs miniter Pranab Mukherjee will be present at the award function. A total 89 companies will be felicitated at the function.
