Refund mechanism for state-specific duties mooted

15,000 acres earmarked for chemical complex in Vizag

The department of foreign trade would soon approach the Government of India with a proposal to devise a refund mechanism for state-specific duties, according to K T Chaco, director-general of foreign trade.

Addressing a seminar on 'Export Excellence' organised by the state chapter of the Confederation of Indian Industry (CII), he suggested setting up of inter-state trade councils to sort out issues coming in the way of exports at local level.

He said that all these measures, including bringing in a duty-free and consumer-friendly environment into the foreign trade, are required to achieve the objective of doubling the country's foreign trade by 2009.

Explaining the advantages of foreign trade, Chaco said that the additional exports registered in the last one year alone created 10 lakh new jobs in the country and suggested to states that they offer duty exemptions and other incentives to boost exports.

"Customs duties have been reduced to 15 per cent from 80 per cent on an average and a situation could come where the duties on export items would become redundant," he said.

Chief minister Y S Rajasekhara Reddy, who spoke on the occasion, cited the vast untapped export potential in the state and invited investors, especially in the garment sector, to set up their export-oriented units in the state.Though the share of the state in the country's total exports is still a meagre 4 per cent, it witnessed a 16.86 per cent growth during the last couple of years, he said.

He announced that Vizag had been selected by the Government of India for establishing a world-class mega chemical complex and the state government has decided to allot 15,000 acres of land for the purpose.

According to him, the project is being promoted jointly with the Centre to attract FDI in the chemical sector. The chief minister offered all support to export trade and industry in the state.

According to Laxmiparthasarathy, principal secretary of Industries department, the state government is also setting up an export wing in the commissionerate of Industries to give more thrust to export trade.