ISLAMABAD: Defence Export Promotion Organization (DEPO) request to grant additional subsidy of Rs311 million has been rejected by Export Development Fund (EDF) board, headed by the commerce minister.
Depo sources revealed that balance of Rs311 million on account of subsidy to be settled for IDEAS in 2012, 2014 and 2016 at priority, reported Business Recorder.
DEPO stated Rs18.36 million had been deducted from approved funds of Rs70 million for IDEAS 2016 and requested the commerce ministry to repay the remaining amount.
According to sources, Minister for Defence Production, Rana Tanvir Ahmed had met the Minister for Commerce and urged him to continue providing subsidy for defence exhibitions.
An EDF board meeting held on January 24th, 2018 had aired serious reservations over the recommendations sent by DEPO in their proposal. The board members remembered that DEPO had been informed that there was no concept of outstanding liabilities on part of EDF.
Furthermore, the EDF board members had granted go-ahead for Rs70 million for DEPO on condition that it won’t ask for any funds in future, besides the fact that earlier EDF had decided not to provide any funding to DEPO.
As per the sources, the matter was forwarded to Finance Committee for further investigation. DEPO on the other hand maintained it had successfully staged IDEAS 2012, 2014 and 2016 exhibitions.
And it added that for promoting local defence industry, DEPO gives them space at discounted rates compared to international exhibitors, for which Commerce Ministry provides funding equal to subsidy given to domestic manufacturers.
And Defence Production Ministry argued DEPO had been allotted Rs60 million against Rs125 million subsidy provided to local manufacturers for IDEAS 2012 exhibition, leaving an outstanding amount of Rs65 million.
The Commerce Ministry for IDEAS 2014 exhibition had assigned Rs60 million against the Rs130 million subsidy, with over Rs70 million still pending.