'Develop Engineering Process Outsourcing sector'

Chennai, Aug 10: Union Minister of Commerce and Industry Kamal Nath today said the development of the Indian Engineering Process Outsourcing (EPO) sector would have a far reaching impact on the engineering industry.

Presenting All India Award For Export Excellence to best performing exporters, at a function at Chennai Convention Centre organised by Engineering Export Promotion Council (EEPC) here,he said the EPO would enable other companies to take advantage of low labour cost, quality talent pool, fast delivery capabalities, large domestic market and expanding technical capacity, which were abundant in India.

He said the engineering sector had surpassed the gems and jewellery sector in terms of exports and was poised to show a rapid growth in the coming years.

He said the exports of engineering goods and services was estimated to cross US Dollar five billion mark in the first quarter.

He said the Department of Industrial Policy and Promotion had launched a new scheme in the name of Industrial Infrastructure Upgradation Scheme (IIUS) during the tenth plan to enhance international competitiveness of the domestic industry by providing quality infrastructure through public-private partnership in select functional clusters and locations.

Earlier, in his welcome address, Chennai Convention Centre Chairman Rakesh Shah said the introduction of service taxes on pre-production and on inland haulage provided by foreign transporters for transporting the goods to landlocked countries had badly affected the export sector.

He said the 80 HHC issue and the fringe benefit tax continue to irk exporters.

He requested the minister to consider advancement of implementation GST to 2008, scheduled to be implemented by 2010.

He said the implementation would reduce transaction cost and also ensure smooth refund of taxes and duties to exporters.

UNI

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