Sakthivel urges Karunanidhi to announce Export Policy for Tamil Nadu

Mr. A. Sakthivel, FIEO Vice President (right) honouring Tamil Nadu Chief Minister Dr. M. Karunanidhi

With a view to resolving the problems arising in industries and commerce and to ensuring hassle-free growth of industries, a Special Task Force has been constituted by the Government of Tamil Nadu under the Chairmanship of the Hon’ble Chief Minister with representatives of Industry Associations and Commercial Chambers. The Special Task Force Committee has been assigned the responsibility of looking into the areas of infrastructure development, public private partnership, investment promotion, foreign direct investment, manufacturing competitiveness, export promotion, etc.

Addressing the first meeting of the Special Task Force held under the aegis of Tamil Nadu Chief Minister Dr. Kalaigner M. Karunanidhi on 12th March 2007, FIEO Vice President Mr. A. Sakthivel requested the Chief Minister to announce an exclusive State Export Promotion Policy for imparting a long-term direction to exports from the State. He said FIEO had already submitted a Draft Export Promotion Policy for Tamil Nadu with the CM office. Mr. Sakthivel is a member of the Task Force and is also serving as the Chairman of FIEO’s Southern Region office.

Mr. Sakthivel further suggested setting up of ‘Tamil Nadu Export Promotion Board’ under the Chairmanship of the Chief Minister with the Chief Secretary, Secretaries of Industry, Finance, etc., and Chairman of FIEO Southern Region alongwith and Presidents of all leading Trade Associations actively involved in exports, as members.

Talking about the labour laws, FIEO Vice President said the UPA Government under the National Employment Guarantee Act intends to provide a legal guarantee for at least 100 days of rural employment at a minimum daily wage of 60 rupees. He felt a similar scheme might be extended to textile and garment sector with 200 days job guarantee at a minimum daily wage of 70 rupees. At the same time, he said, contract labour should be allowed in the textile sector, especially for apparel manufacturing units, which provide at least 200 days employment to the labour in one year. "The employer should be allowed to adjust its workforce due to structural and other changes and intra-enterprise and inter-enterprise job transfers should be facilitated. The workers should also be allowed to work up to 60 hours in a week." Mr. Sakthivel added.

With regard to the training of skilled manpower, FIEO official demanded that ITIs should be empowered to provide training in the areas such as fabric designing, blending, garment designing, fabric processing, production, tailoring etc. by conducting 6-8 weeks courses, especially for women. He hoped that the announcement made in the recent Union Budget for upgradation of ITIs into centers of excellence in specific trades and skills under public-private partnership would help the process of training of skilled workforce.

For augmenting the power supply to the industry, Mr. Sakthivel suggested that small and medium scale industries should be encouraged to set up Windmill Plants alongwith HT users at present.

Under the provision of Section 18(2) of the Tamil Nadu Value Added Tax Act 2006, the exporter can claim the refund of input tax paid for purchase of those goods/items used for manufacturing exportable goods and finally the department is supposed to refund the amount within 90 days from the date of receipt of the input tax refund application. Calling this procedure cumbersome for the exporting community, Mr. Sakthivel suggested that exporters should instead be directed to give a Form (like Form "H" under TNGST Act) to the suppliers of raw materials, packing materials etc. and on acceptance of the specified declaration form, the supplier should be allowed to raise his invoice without charging VAT. He said, this procedure would save both exporters and the department from unnecessary exercise of refund.

FIEO official called for supporting R&D and brand building for the emerging Siddha medicines. He also sought establishment of an industrial park for gem & jewellery at Coimbatore with modern testing laboratory saying that most of the manufacturing activities for gem & jewellery in the area were being carried out by unorganized units which ought to be brought in the mainstream of industrial development. In order to ease the congestion at Chennai Port due to increased vehicular movement, Mr. Sakthivel requested the Chief Minister to improve the backup facility of the approach road to the Port. Dr. Karunanidhi assured that FIEO’s suggestions would be considered favourably. 

FIEO Chief lauds permitting

international transshipment of LCL cargo

 

FIEO President Mr. Ganesh Kumar Gupta has lauded the new directives issued by the Central Board of Excise & Customs (CBEC) allowing international transshipment of imported goods in Less than full Container Loads (LCL). The new directive will initially apply for Cochin, Chennai, Tuticorin and Nhava Sheva ports.

 

"This new trade facilitation measure would provide transshipment facility to international shipping lines and enable these ports to act as transshipment hubs in the Indian Ocean," said Mr. Gupta. He also said that the new directive would lower transshipment costs and thus increase the traffic at Indian ports which would eventually help the country earn more foreign exchange and attract more foreign investment. At present, Colombo is the nearest transshipment hub for the country which attracts maximum transshipment cargo in the region.

 

FIEO Chief has on the other hand called for additional measures for making Indian Ports further attractive. He said that in order to accommodate large container vessels, container hub ports must have access channels of sufficient depth, along with advanced and highly efficient terminal facilities. He also calls for adequate drafts for large ports.

 

With respect to providing better rail-road connectivity to ports, FIEO Chief said all major ports and the ports being considered for trans-shipment hubs should have sufficient availability of rakes and space for segregation of cargo within or near port premises. The 10th Plan envisages a minimum four-lane road connectivity and double line rail connectivity for major ports.

Mr. Shoket Hossain A Jamati has joined FIEO as Deputy Director General (Western Region) on 15 March 2007. A Graduate in Commerce and Law having Diplomas in Business Administration and Export Management, Mr. Jamati has the experience in working with Export House for over nine years. He has also been practicing Law (civil) in Bombay High Court for about six years. He worked as Regional Director (Western Region) with Council for Leather Exports for over 16 years.

ATTN: EXPORTERS

Last date for filing application under Focus Market scheme as per Para 3.20.1 and Focus Product scheme as per Para 3.21.1 for export effected from 01.04.2006 till 31.03.2007 is extended to 31.03.2008. Kindly refer DGFT Public Notice No. 91 (RE-2006)

 

2004-09 dated

29th March 2007.

Shoket Jamati takes over as FIEO DDG (Western Region)


Federation of Indian Export Organisations
New Delhi, INDIA.