Mr Maran proposes to provide funds to states for boosting exports as also to provide funds for those exporters who are likely to be hit by scrapping of some schemes from April 1, 2001 and others from April 1, 2002. A third strategy on the anvil is framing of a medium-term export strategy.

What has lent a further sense of urgency is the phasing out of the removal of tax deductions available to exporters under Section 80-HHC of the Income-Tax Act, 1961.

Around Rs 100 crore funds are expected from the Planning Commission for assisting those states which provide better infrastructure to promote exports on a recurring basis from the next fiscal.

Similarly, the commerce minister is holding discussions with the finance minister for getting Rs 300-crore fund for making exporters globally competitive especially in the wake of the slowdown in the US and Japanese economies.

In addition to this, a new `market access initiative' scheme to take effect from the last year of the Ninth Plan and from the beginning of the Tenth Plan has also been formulated for the purpose. The medium-term strategy for a period of five years from 2001-06 is expected to be announced by the middle of next month.

The new policy will also see the dismantling of the quantitative restrictions on the remaining 715 tariff lines from April 1.

The Union Budget proposed a number steps to mitigate the corporate sector from the impact of the removal of QRs. Some among them are raising customs duty on used-cars to 180 per cent and on on edible oils and other items to 80 per cent.

A bill to amend the Foreign Trade (Regulation & Development) Act is also proposed to be introduced in Parliament, enabling the government to reimpose QRs if there is a surge in imports. These measures are in addition to the initiatives already taken in this regard in November last, which include bringing all the pre-packaged items within the ambit of local laws and regulations which are already applicable to the domestic industry.

The government is maintaining a `close' watch on some `sensitive' items to ensure that the country is not swamped by imports. These items include umbrellas, writing instruments, toys etc.