In order to avail subsidised foreign trips under the International Cooperation (IC) Scheme, industrialists are becoming members of various organisations and misuse of the scheme goes unchecked.
Under the scheme, the government gives 100 per cent subsidy on air fare and the leader of the group also gets 150 dollars per day.
One directly saves on the cost of the air ticket which ranges between Rs 40,000 to Rs 1 lakh depending upon the airlines and destination. The maximum limit of subsidy for one group is Rs 25 lakh.
“The major drawback of the scheme due to which small industrialists and manufactures are not able to avail the benefits is that the subsidy is released in the form of reimbursement which takes around two to four months. Small manufactures who do not have the sources, are left out and the benefit is availed by big industrialists,” said Krishan Jain, a small hosiery manufacturer.
A member of an organisation can avail subsidy once a year and by becoming members of more than one organisation, they avail subsidy more than once. Not only this, spouses are also made the members.
This has led to decrease in exports and increase in imports, especially from China, as not only exporters but importers also avail the scheme. The continual fall in exports of the country, is a testimony to the fact.
The principal objective of the scheme is technology infusion and/or upgradation of Indian MSMEs, their modernisation and promotion of exports. However, it is now misused by the industry.
Badish Jindal, Chairman of the Federation of Association of Small Industries of India, said many new industrial associations had spring up and some were being formed simply to avail concessions and subsidies.
“I have written to the Ministry of Micro Small and Medium Enterprises (MSME) in this regard that only one trip should be allowed per person in a year despite him/her applying under the head of various organisations. In addition to this, importers should not be allowed. China trips should also be banned as importers go to China and import stuff from there,” said Jindal.
Another city-based small scale manufacturer, Rajiv Dutta, said it was seen that only some people were availing benefits of the scheme and going abroad. The small sector which needed to explore offshore opportunities, seldom went due to work and other constraints.
“At times, an industrialist becomes a member of one association and makes his wife, a member of another. They both apply from different associations but go together. These trips are becoming more of leisure trips than business trips,” said Dutta.
Source: The Tribune