Jaipur, March 30 (IANS) A Di-ammonium phosphate (DAP) plant worth Rs.4.25 billion is to be set up in Rajasthan's Chittorgarh district, Chief Minister Vasundhara Raje said.

"In a bid to tide over the recurring shortage of DAP in the state, the Rajasthan State Mines and Minerals Ltd (RSMM), in a joint venture with Rashtriya Chemicals and Fertilizers Ltd (RCF), will set up a Rs.4.25 billion plant to manufacture DAP," Raje told the state assembly Thursday during a debate on the finance bill.

The proposed plant would be constructed at Kapasan in Chittorgarh, around 330 km from here.

Highlighting the importance of handicraft exports from Jodhpur, the chief minister said a research and development cum skills upgradation institute would be established in the city.

"The state government would provide land free of cost for the project while the institute would be run by the private sector", Raje said.

She added that an international export exhibition centre was also envisaged for the capital.

Giving a boost to the bhujiya industry in Bikaner, she lowered value added tax (VAT) for Bikaneri Bhujiya from 12.5 percent to four percent.