The Hindu : Tamil Nadu News : Chidambaram warns exporters

Online edition of India's National Newspaper
Saturday, Jul 01, 2006

Tamil Nadu

Tamil Nadu

Chidambaram warns exporters

Staff Reporter

"Those involved in duty drawback scam cannot escape the law"

GROWTH MACHINE: Union Finance Minister P. Chidambaram, inaugurating an Automated Teller Machine at the 2000th branch of Allahabad Bank in Tirupur on Friday. The bank's Chairman and Managing Director, O.N. Singh, looks on. — Photo: M. Balaji

TIRUPUR: Union Finance Minister P. Chidambaram on Friday said that exporters involved in the "duty drawback scam,'' which runs into several hundred crores, could not escape from the law.

"One person has been arrested under COFEPOSA and another industrialist is on the run. When the noose tightens a few more will be arrested. No one can escape from the clutches of law,'' he said.

Inaugurating the 2000th branch of Allahabad Bank, Mr. Chidambaram said that it was public money that had been given to exporters as duty drawback to promote exports.

Stringent action was being taken against the offenders and it would continue. Now the Government offered 6 per cent of the value of the garment exported as drawback.

He said that nationalised banks such as Canara Bank and Punjab National Bank transacted over Rs. 2,000 crore worth business because of phenomenal growth in the southern States and in Punjab and Haryana.

The eastern States such as West Bengal, Assam, Orissa, Bihar and Eastern Uttar Pradesh did not witness such growth.

Mr. Chidambaram said it was the desire of the United Progressive Alliance Government to have a uniform growth in all States, and the banks should contribute to achieve this, he said. Farm loans would be given to the tune of Rs. 1.80 lakh crore in this fiscal and farmers could get short-term crop loan at 7 per cent interest. "The country is witnessing a rapid growth in the last couple of years. We saw 8 per cent annual growth continuously in the last three years. This has never happened before. I hope this year also we could achieve 8 per cent growth,'' he said.

Chairman and Managing Director of the bank O.N. Singh said that the 142-year-old bank was opening more branches in south India.

Six branches were opened last year and 10 more would be opened shortly in the State, he said.

Tirupur Exporters' Association president, A. Sakthivel, appealed to Mr. Chidambaram to extend Textile Upgradation Fund Scheme and exemption for exporters from service tax.

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