India Fin Min: Exempts Mobile Handset Parts From 4% CVD

NEW DELHI -(Dow Jones)- India's lower house of parliament Monday approved a finance bill that would abolish a 4% duty on parts imported into the country for mobile phone assembly, heeding a call by Finance Minister P. Chidambaram

"I have received a number of representations seeking exemption of parts and components for mobile handsets from the (counterveiling duty)" he said. "In order to facilitate manufacture of mobile handsets, I propose exempting their parts..." he told the parliament chamber.

Finland's Nokia Oyj (NOK) recently said it will invest between $100 million and $150 million to set up a manufacturing facility for mobile devices at Chennai.

Chidambaram also said the excise duty on molasses will be cut to INR750 a metric ton from INR1000 a ton proposed in the budget speech.

Now, the upper house will consider the bill and suggest changes to the lower house before it goes to the president for his signature.

- By Santanu Choudhury and V. Ramakrishnan, Dow Jones Newswires; 91-11-23074020; ve.ramakrishnan@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 2nd May 2005