New Delhi, Apr 12: The government today said ban on cement exports, announced to check rising prices, will not impact the Special Economic Zones which are considered to be bonded territories by the customs authorities.

"No, the ban will not impact the SEZs," Commerce and Industry Minister Kamal Nath said here at the CII seminar on the Foreign Trade Policy.

Nath said the Directorate General of Foreign Trade has issued the notification banning export of cement. There was a confusion whether the sale of cement from the 'Domestic Tariff Area' to SEZs would attract the ban.

Asked whether a similar ban on steel export was under consideration of the government, Nath said the Steel Ministry was working on the specific steps. The decision would be taken by the Cabinet Committee on Prices meeting next week.

"The message is clear that the government is ready to take whatever steps are required to control inflation," he said.

On export target, Nath said the Indian economy has adequate momentum to sustain growth rate of 22-23 per cent in the export sector. "If we maintain the same growth rate or raise it by one or two per cent, we will reach 200 billion dollars," he said.

The Foreign Trade Policy has set a target of 200 billion dollars export for 2008-09 despite missing the 160-billion target in the previous year when exports totalled 155 billion dollars in the face of rupee rise and US slowdown.

Govt, FICCI to set up JV to boost investment

The government has decided to set up a joint venture company with industry body FICCI for encouraging investment in the country.

"The invest India company, a joint venture between the Department of Industrial Policy and Promotion and FICCI, would be funded by the government and managed by the chamber," Commerce & Industry Minister Kamal Nath said at the national seminar on foreign trade policy here today.

The company would be set up in the next two months, Nath said. He said the foreign trade policy review unveiled yesterday seeks to enlarge India's trade basket with the inclusion of high value-added manufactured products and items such as fruits and vegetables.

"We invite suggestions from industry within 15 days on the focus product & focus market schemes announced in the trade policy review," Nath said, adding that these schemes would help exporters to access existing markets with new products and penetrate the hitherto untapped regions.

The government's objective, he said, was to continue to build on the economic momentum that the country has gained and make a serious bid to attain the export target of 200 billion dollars in 2008-09.