The Automotive Component Manufacturers Association of India (ACMA) wants the alternative scheme in place of the DEPB to be put in place at the earliest and not wait till September.
ACMA, the nodal agency for the auto component industry, feels it will help maintain the export competitiveness.
The Duty Entitlement Pass Book, a refund scheme for exporters has been extended by three months till September 30. ACMA has welcomed the Government's move to extend it. This scheme was to be withdrawn by the Government from June 30. The DEPB scheme is expected to be replaced by a modified duty drawback scheme.
Auto components, engineering and chemicals will be impacted as they form 60 per cent of the benefit from this scheme. Auto components exports reported a growth of 18-20 per cent growth in the last two years. In 2010-11 auto components export moved up to $5 billion compared with $3.8 billion the previous year.
Mr Srivats Ram, President, ACMA, told Business Line, “If the alternative scheme to be launched is shared with exporters before September 30, it will help iron out issues and also save disruptions usually found when a new scheme is launched.”
He said that if the appropriate rates of the new scheme are shared it will help exporters include it in their business plan for the year ahead. Mr Ram highlighted that India's auto component exports were running at higher cost compared with countries like China, Brazil and Thailand due power deficit and infrastructures constraints.