The Hindu Business Line : Exim policy by April 10: Kamal Nath

The Minister for Commerce and Industry, Mr Kamal Nath, welcoming the Consultant, World Bank, Dr Clell Harral, along with the Senior Vice-President of FICCI, Mr Saroj Kumar Poddar (centre), at a meeting on `India infrastructure summit' in the Capital on Monday. — Kamal Narang

New Delhi , March 28

THE Commerce Ministry today ruled out any differences with the Finance Ministry on certain provisions of the Foreign Trade Policy.

Speaking to reporters on the sidelines of India Infrastructure Summit, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), here on Monday, the Commerce Minister, Mr Kamal Nath, said the policy would be announced before April 10. "There are no differences with the Finance Ministry but discussions are going on some issues," he said.

The Minister was responding to a query on whether differences with the Finance Ministry had delayed the Exim Policy, which is traditionally unveiled by end-March. While the Commerce Ministry wants to give some sops to the exporting community in the form of tax exemptions to achieve the target of $150 billion exports by 2008-09, the Finance Ministry is concerned over the fiscal implications of these tax sops.

Mr Kamal Nath stressed that the policy had not been delayed and would incorporate the final trade figures for 2004-05, which would be available after March 31. Regarding the much-awaited special economic zone (SEZ) Bill, he said the Ministry was grappling with some issues that would be resolved shortly. The Bill would be introduced in Parliament in the current session when it meets after the recess, he said.

"The India-specific legislation on SEZs would seek to foster competition with Asian countries and not replicate the Chinese SEZ law," the Minister said.

"Such projects have long gestation period and are sometimes commercially unviable. The Government has introduced the facility of viability gap funding to support public-private partnership initiatives in this sector," he added.

When asked about the viability funding, the Minister said it could be of many types such as a mix of capital and revenue support. He also invited potential investors to look at the infrastructure sector, particularly roads, seaports, airports and power.

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