FinMin eager to support exporters at its best

Secretary, Banking & Financial Services, D K Mittal addressing at an Interactive Session on Export Credit, in New Delhi on July 19.

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Saurabh Gupta | 20 Jul, 2012
At a time when Indian exports are sailing in difficult market conditions, the Finance Ministry Thursday assured them of the support of banks to sail through.

Speaking at the Interactive Session on Export Credit organized by the Federation of Indian Export Organisations (FIEO), D K Mittal, Secretary, Banking & Financial Services said, "I am not committing any thing but assures you that you will get the best."

He said, "Credit should be available to all exporters at all level." He, however, requested that only the deserving sector should seek the support from the Government as there is already much pressure on its finance.

He also said that the government will set up a group that will streamline procedures to make available cost-effective credit to exporters. The group will also formulate credit-related policies that will aid exporters to remain competitive in global trade even in the long term.

The group will have officials of finance ministry, RBI, exim bank, export credit guarantee corporation (ECGC) and public sector banks apart from exporters from FIEO. First meeting of the group will be held next month.

Mittal agreed with the view to augment the flow of credit to export sector but ruled out putting any cap on the lending rates hoping that the market forces will ensure availability of such credit at most competitive rates. Secretary, Financial Services asked FIEO to organize workshop in clusters to address the day to day problems of the exporters with the banks.

Mittal advised the exporters to concentrate on their core business and not to play with currency.

He agreed for a meeting among bankers, ECGC, RBI, FIEO, and other exporting Institutions to look at implementation issues and also address concern of the exporters in view of changing dynamics of international trade.

Earlier, M Rafeeque Ahmed, President, FIEO highlighted the problems emanating from imposition of restriction on EEFC and Forward Contracts which has added to the burden on the exporters. President, FIEO welcomed the initiative to encourage exports/imports in local currency thus saving on cross currency charges. Mr Ahmed added that the availability of PCFC in tier-II and tier-III cities needs to be looked into so that dollar denominated credit is available to exporters located there.

During the interaction, exporters raised their concern regarding Packing Credit, Collaterals, Delay in Swift Payment, Problems of exporting to Iran. FIEO was asked to collate all the issues and forward it to Department of Banking & Financial Services for appropriate redressal.