The Hindu Business Line : `Liberalisation key to fuel economic growth'

To fuel the country's economic growth ambitions and achieve the gross domestic product (GDP) growth rate of 10 per cent, liberalisation was the way forward and large investment in ports, roads and related infrastructure was essential, Mr Jayant Patil, Minister for Finance and Planning, Government of Maharashtra, asserted.

He was addressing the members of All India Liquid Bulk Importers Exporters Association (AILBIEA) who are mainly engaged in liquid bulk trade and services related thereto.

Robust growth of 8 per cent has already led to expanding volumes of foreign trade in liquid bulk cargoes making the role of the ports and related infrastructure critical.

India is a major importer of liquid bulk cargoes, including mineral oil (energy), vegetable oils (food) and industrial oils (soaps), in addition to chemicals and other commodities such as ethanol.

Growth can be achieved with inflow of money and policies of internal liberalisation, Mr Patil emphasised, adding that quality and speed in service delivery would make the country rival China's growth.

Octroi duty

Commenting on the demand for abolition of Octroi duty in Mumbai, the Minister said that there was yet to find a solution in the matter.

The Chief Minister had last month assured abolition of Octroi duty in about 12 months.

Mr Patil assured that stamp duty rates in Maharashtra would be brought on par with the neighbouring States.

Earlier, in his address to members, Mr Jayant Lapsia, AILBIEA President, said there was a flight of business out of Mumbai because of heavy fiscal burden on the industry and trade in the form of Octroi duty, APMC cess, stamp duty and so on. He pleaded for abolition or rationalisation of the tax structure.

Mumbai port handling

Ms Rani Jadhav, Chairperson, Mumbai Port Trust and acting chairperson Jawaharlal Nehru Port Trust, informed participants that the performance of Mumbai port has considerably improved as a result of which the port now ranks third in traffic handling. Mumbai port plans to double its handling capacity in the next five years, she announced.