• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Chennai , Feb. 16

THE 100-per cent export-oriented units (EOUs) have asked the Union Government to permit them to take product liability insurance cover from foreign insurance companies.

They want this permission because "Indian insurance companies charge at least ten times as much as some of the foreign companies and the foreign companies also settle claims faster," Mr Rafeeque Ahmed, former President of the Federation of Indian Export Organisations (FIEO), said on Wednesday.

Speaking at an open house meeting with the Union Minister of State for Commerce, Mr E. V. K. S. Ilangovan, Mr Ahmed pointed out that units in special economic zones (SEZs) are allowed to take insurance cover from foreign companies. The same should be allowed for EOU units also.

Commerce Ministry officials present at the meeting responded to this, saying that they would take up the matter with the RBI and the Insurance Regulatory and Development Authority.

Exporters demanded parity with SEZ units on some other counts also. One exporter said that the provision allowing SEZ units to issue equity shares as payment for capital goods to overseas companies ought to be extended to EOUs also.

Another wanted overseas banking units set up in SEZs to extend credit to EOUs on the same terms as they would to SEZ units. The exporter said that the Foreign Trade Policy itself allows such credit extension, but the RBI is yet to issue guidelines on it.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee recovers; securities dull

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line