Kolkata, December 26 - The border trade between India and China through the Nathu La pass in northern Sikkim is expected to start after March, 2006, Union Commerce Secretary S N Menon said today.

''Both India and China will be ready sometime after March, 2006 to start trade through Nathu La route,'' he said.

The number of traded items through the reopened route would, however, initially be restricted to around 30.

Menon, who was here on the occasion of the golden jubilee celebration of the Engineering Export Promotion Council (Eastern Region), said besides Nathu La, 12 more border areas were being developed in the Northeast for facilitating trade with Bangladesh and Myanmar.

To a question about extending the DEPB scheme for exporters to March 31, 2006, which is not WTO compliant, Menon said given that India's per capita GDP was less than $ 1,000, subsidy could be given to exporters but it should not be counterveiling duties.

Meanwhile, experts have stressed on developing proper infrastructure along the Nath La pass for reopening of border trade between India and the Tibet Autonomous Region of China.

According to Mahendra P Lama, professor of South Asian Economies at JNU and leader of the Nathu La Trade Study Group, an investment of Rs 1,700 crore was required for the purpose.

Lama, who had submitted a detailed report to the Sikkim government in this regard, said Sikkim would be the biggest beneficiary of the border trade which is expected to touch US$ 527 million by the year 2010.