Speaking at the economic editors' conference, the minister said that such a zone will free companies from all authorities. There will be no red tape in the area, the minister stressed. The ministry has asked chambers of industry, including CII and Ficci, to submit a blueprint for building the zone.

Companies setting up units in these specified zones will be given special incentives and will not be bound by the country's tax laws, he said. In order to make free trade zones more efficient, the ministry proposes to amend some labour laws specifically for export-oriented units (EOUs) and export-processing zones (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 will encouragethe formation of large units to cater to export markets, he said.

The ministry is also working on an extensive plan to woo large companies to help boost exports. The minister proposes to personally hold discussions with a host of such 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 that I have 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 hindrance to 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 is the highest export earning sector.

Theminister said that he has proposed that certain key sectors which have huge export potential, such as soft toys and electronic toys, leather and garment sectors, be de-reserved. But this will not be at the cost of the small-scale industry (SSI) which will be given incentives to grow, he added.

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.