Exporters request OMDC to relax BG norms
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| Mr. S K Jain, Chairman, FIEO (ER) (facing the camera at left) making a point. On his left are Mr. M.S.Barpanda and Mr. T K Chattopadhyay, DDG, FIEO(ER). |
Exporters have requested Orissa Mining Development Corporation to relax them from furnishing bank guarantees. In a meeting organised by FIEO with the CMD of the Corporation, Mr. M. S. Barpanda on 31st August at Kolkata, the exporters said that they were compelled to lock valuable cash with the Corporation in the form of bank guarantees for an unreasonably long period as the Corporation was clearing their invoices very late. The exporters suggested that the Corporation should relax the provisions of submitting bank guarantees, at least for those exporters who have good track records. They said, this would help them procure more iron ore from the Corporation, and thus boost the sale of the Corporation as well. There were about a dozen exporters, including the Vice president of Iron Ores Exporters Association, Mr. Pradip Singhania, who joined the interaction.
The exporters also demanded early refund of sales tax deposited by them with the Corporation and questioned why they were being asked to deposit 10% of the product value as sales tax while the product fetched only 4% sales tax. The exporters maintained that if they were exempted from paying sales tax then it would also save the Corporation from carrying out unnecessary exercises.
The exporters further pointed out that they were losing bank guarantee as well as sales tax on almost 200 tonnes of cargo as the railways were loading on an average only 3800 tonnes of cargo per rack while the Corporation was asking them to submit bank guarantee and sales tax on 4000 tonnes. They also informed that late arrival of railway rakes was causing them business losses. The Corporation CMD responded saying that the issue had already been taken up with the Ministry of Railways requesting it to allot more rakes to OMDC.
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A participant raising a point |
