Agartala, Aug 13 - Bangladesh will export 400 million bricks to Tripura, with the first consignment reaching the bordering state Aug 20, officials said here Thursday.

'To boost the brick trade, the Indian government has removed the 2.5 percent central custom duty from this month while the Tripura government reduced the value-added tax (VAT) to 4 percent from 12.5 percent,' said Tripura Commerce and Industry Minister Jitendra Chowdhury.

To commence brick exports to northeast India, a formal function will be held Aug 20 at the Akhaurah check post, where Chowdhury will be present along with Bangladesh commerce minister Faruk Khan.

The India-Bangladesh Chamber of Commerce and Industry (IBCCI) expects Bangladesh's exports to the northeastern Indian states to increase to $1 billion by 2011.

'We are ready to supply 40 crore pieces of bricks worth Bangladeshi Taka 2 billion (Rs.140 crore) to Tripura and a deal has been signed with the Tripura government last month,' said IBCCI president Abdul Matlub Ahmad, who led a team here.

Explained Chowdhury: 'Since Tripura's existing brick fields are not able to cater to the demand, the state government has decided to import bricks from Bangladesh.