EEPC seeks currency exchange, Re convertibilty

Engineering Export Promotion Council (EEPC), the apex body of Indian engineering exporters, has urged the central government to set up a currency exchange where traders can buy and sell foreign currency.

"We made a recommendation to the centre last week for setting up a currency exchange to facilitate the trading of foreign currency by traders without the involvement of banks. The currency exchange will enable traders to carry out hassle-free buying and selling of foreign currency. Currently, traders are unaware of the margins kept by banks during currency transactions," Rakesh Shah, chairman, EEPC, said.

EEPC has also pitched for full convertibility of the rupee vis-a-vis other foreign currencies.

EEPC has also presented a proposal for constituting a separate regulator for the shipping sector. "A regulator for the shipping sector will help reduce shipment costs," Shah said, adding that feeder operators were involved in some form of obscure cartelisation to raise costs.

Speaking on engineering exports, Shah said going by the current value of the rupee against the dollar, engineering exports are expected to grow at the rate of 12-13% per annum. Engineering exports stood at $27 billion in 2006-07 contributing to around 32% of total exports.

EEPC will hold its mega industrial exhibition called INDEE (India Engineering Exhibition) in Johannesburg from October 23.