The Duty Entitlement Pass Book (DEPB), duty benefit scheme for exporters, is not likely to be continued beyond June 30, as reports indicate that the Finance Minister is against extending the scheme.
The DEPB scheme, under which companies get refunds of customs duty paid on imported raw material for manufacturing products meant to be exported, will expire on June 30.
In recent months, the thinking in the finance ministry seems to be that the global economy has recovered and exports have shown robust growth, exceeding the 2010-11 targets.
On the other hand, the commerce ministry seems to believe the trade deficit is still high and there is continued uncertainty regarding international crude oil prices, impact of the earthquake in Japan and sustainability of global economic recovery.
Exporters are demanding for continuation of DEPB scheme for another five years.
Speaking exclusively to CNBC-TV18, Rajiv Bajaj of Bajaj Auto said the impact of discontinuation of the scheme will be quite significant.
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