Punjab exporters ask for sops at par with IT

Exporting firms of Punjab are now asking for benefits that are given to the IT sector. Units that are 100 per cent export-oriented and registered with the Directorate of Industry & Commerce, Punjab, hope that with the relaxation, there will be a quantum jump in exports.

As per the state government's industrial policy, 2003, exporters can get registered as 100 per cent export-oriented units (EOUs) with the state government's department of industry and commerce.

At the same time, the policy grants relaxations and exemptions to IT and IT-enabled services like rationalisation of octroi, power at industrial tariffs, exemption from electricity duty for five years, no power cuts or restrictions even during peak load hours, exemption from stamp duty and registration fee for three years, relaxation in the floor spacing index up to 50 per cent, functioning in three shifts, and employment of women.

Exporters registered as 100 per cent EOU with the state government demand that they should be considered at par with IT Industry of the state, in order to accelerate exports, which contribute 3.5 per cent of national exports, and which are expected to touch around Rs 13,000 crore by the end of this fiscal.

Exports from Punjab during 2004-05 were to the tune of Rs 10, 728 crore. Engineering goods, hosiery items, pharmaceuticals, leather goods, food and agro products, textiles, electronics, hand and machine tools were some prominent items which Punjab exported to other countries.

Speaking to Business Standard, A K Kohli, Senior Vice President, Punjab Chamber of Small Exporters said," If we are given benefits at par with IT sector, we are hopeful, that export turnover would touch about Rs. 16,000 crore by the end of next fiscal. If the government wants to accelerate the exports, it is necessary they should be given certain relaxation's as IT Sector have. Ultimately, this would benefits thousands of workers engaged in the manufacturing process and definitely result in revenue generation for the government."

When Chief Minister, Punjab, Amarinder Singh contacted and asked whether the government is thinking of granting relaxation to the exporters at par with IT sector, he said," It is only possible if they put up their unit in SEZ. Already the central government has given a nod to set up three SEZ in the state.