Super free trade area on anvil

Companies setting up units in these specified zones will be given special incentives and will not be bound by Indian tax laws, he said.

To make free trade zones more efficient the ministry proposes to amend some labour laws specifically for EOUs and EPZs so that they do not face any threat of sudden stoppage of work and are able to honour their commitments of delivery schedules abroad, the minister said. This measure will encouragethe setting up of large-sized units to cater to export markets, he underscored.

For wooing large companies on giving additional ballast to exports the ministry is working on an extensive plan for involving large companies. The minister proposes to personally hold discussions with a host of companies. “Large enterprises should enter the exports arena in a big way, to facilitate this I have begun interactions with captains of industry, of the four leading groups I met so far, three have promised to achieve an export growth of 25 per cent this year,” he said.

Hegde has scheduled a meeting with chief ministers and state finance ministers to thrash out the various state specific duties levied on manufacturing which act as a brake on exports. “Various parts of the country must offer the same advantages for pushing exports, there cannot be an unlevel playing field within the country,” he said. He expressed dismay that Maharashtra has levied an 8 per cent sales tax on exporters of gems and jewellery which isthe highest export earner.

The minister said that he has proposed that certain key sectors which have huge export potential like soft toys and electronic toys, leather and garment sectors be de-reserved. But this will not be at the cost of the SSI sector which will be given incentives to grow, he underscored.

The ministry is working on a long-term agro export policy, Hegde said. “I am convinced that such a policy will be in the interest of the farming community and good for the country, though concerns about food security have to be addressed before we finalise this policy,” he said.