The Centre may extend further relief to exchange rate-hit exporters and come out with another package after receiving recommendations of Rangarajan Committee, which is looking into the problems relating to an incessant appreciation of rupee.

“Once the recommendations of Rangarajan Committee are received, the government will take some decisions to help the exporters tide over the crisis caused by an over 12-13 per cent appreciation of rupee during 2007,” a senior Commerce Ministry official told PTI.

Modalities soon

The government has so far doled out an over Rs 5,000 crore relief package to exporters, which include refund of service tax on a few items, two per cent interest subvention, upward revision of duty drawback and duty entitlement passbook scheme rates and import duty cut on a number of man-made fibres and their intermediates.

The new measures based on the recommendations of Chairman of Prime Minister’s Economic Advisory Council C Rangarajan are likely to be worked out in the next few weeks, the official added.

According to sources, Prime Minister Manmohan Singh had held a meeting with Planning Commission Deputy Chairman Montek Singh Ahluwalia, Finance Minister P Chidambaram and Commerce Minister Kamal Nath on December 18 to take stock of the situation arising out of rupee rise.

Sunset clause

Taking note of the problems of the exporting community, Mr Manmohan Singh has asked Mr Rangarajan to examine and give his recommendations on issues relating to rupee appreciation, service tax refund and the sunset clause on 100 per cent Export Oriented Units.

EOUs have been enjoying tax exemption for the past 15 years but these concessions are slated to discontinue in April 2009.

Commerce Minister Kamal Nath had also held talks with heads of various export promotion councils as well as exporters of handlooms, sports goods and toys. “We discussed various issues with exporters and took stock of the situation,” Mr Kamal Nath said.

The over 12-per cent rise in rupee this year has impacted exporters’ margins as well as resulted in decline in growth of several labour-intensive sectors like textiles, leather and handlooms.

Federation of Indian Export Organisations (Fieo), in its representation to Commerce Minister Kamal Nath, has asked for extension of the Duty Entitlement Passbook Scheme, valid till March 2008, up to 2010.