MEASURES TO BOOST PROJECT EXPORTS
UNDER CONSIDERATION
Government had constituted
a Task Force under the Chairmanship of the Joint Secretary (Foreign
Trade & Investment) in the Department of Economic Affairs
to give recommendations on export promotion of project exports.
The Report of the Task Force submitted in January, 2003 has,
inter-alia, recommended establishment of a Project Export Promotion
Council (PEPC) and also creation of Export Development Fund.
The Task Force has
recommended that the PEPC will act as an apex organisation for
enhancing project exports. Regarding modalities of PEPC, Task
Force has recommended that, PEPC will be an autonomous body and
the main function of the body would be to create an effective
synergy among Indian Missions, Government of India, Exim India,
Export Credit Guarantee Corporation (ECGC), Industry Associations
and Commercial banks to ensure early identification of projects,
intelligence collection, maintenance of centralised database,
encouragement to consortia approach etc. Task Force has further
recommended that a Director General, who would be a permanent
invitee of the High Powered Standing Committee, would head PEPC.
The PEPC will also include divisions to handle Consultancy
and Technology Development. As per the recommendations of Task
Force, the equity contribution for creation of this body would
come from Government, Industry/Industry Associations and Institutions.
Under the Exim Bank
Act of Exim India, the government has appointed Exim India to
administer the Export Development Fund (EDF) on behalf of Government
of India. With a view to enabling Exim India to provide long-term
funding on competitive soft terms for project exports, the Task
Force has suggested that Government of India may consider funding
the EDF in US dollars over a period. According to the Task Force,
EDF could be an appropriate vehicle for making available substantial
funds for the identified purpose of supporting project exports.
