The Central Government has decided to create a Project Export Promotion Council (PEPC) and an Export Development Fund to boost project exports from the country. The decision was based on the recommendations of a Task Force under the Chairmanship of the Joint Secretary (Foreign Trade & Investment) in the Department of Economic Affairs submitted three months ago.
The Task Force had recommended that the PEPC would act as an apex organisation for enhancing project exports.
According to an official press release, PEPC is to be an autonomous body with its major function 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.
It also 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.