The Department of Commerce, part of the Union Ministry of Commerce and Industry, has sanctioned financial aid for three distinguished trade promotion centres under the aegis of the Trade Infrastructure for Export Scheme (TIES). These projects will have significant implications for the respective regions and for India’s trade infrastructure as a whole.
Recent Approvals
The approved projects cover a spectrum of trade-related initiatives across multiple Indian states. The Manipur Industrial Development Corporation (MANIDCO) will oversee the establishment of the Main Exhibition Building (Phase-II) at the Trade cum Permanent Exhibition Centre situated in Imphal, Manipur. Meanwhile, the Tamil Nadu Trade Promotion Organisation has been entrusted with the expansion of the Chennai Trade Centre. Similarly, the M.P. State Tourism Development Corporation will be responsible for setting up a Trade Promotion Centre at Minto Hall in Bhopal.
About the Trade Infrastructure for Export Scheme (TIES)
In response to requests from state governments for support in creating export infrastructure, the Union Ministry of Commerce and Industry launched the TIES in March 2017. This initiative came about after the Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme was delinked in 2015.
The TIES aims to provide assistance for the setting up and improvement of infrastructure projects that have substantial export linkages. This ranges from Border Haats and land customs stations to quality testing and certification labs, cold chains, trade promotion centres, dry ports, export warehousing and packaging, special economic zones (SEZs), and ports or airport cargo terminals.
Eligibility and Funding
Entities eligible for financial support under this scheme include Central and State Agencies, Export Promotion Councils, Commodity Boards, SEZ Authorities, and Apex Trade Bodies recognised under the EXIM policy of the Government of India. Proposals for funding from the implementing agencies are to be considered by an inter-ministerial Empowered Committee.
The Central Government funding will usually not exceed the equity being injected by the implementing agency or 50% of the total equity in the project. This percentage can rise up to 80% for projects located in North Eastern States and Himalayan States including Jammu and Kashmir. Each infrastructure project can receive a grant-in-aid up to Rs. 20Cr.
Past Approvals
| Year | Number of Projects Approved | Key Implementing Agencies |
|---|---|---|
| 2018 | 16 | Karnataka Fisheries Development Corporation Ltd, Visvesvaraya Trade Promotion Centre, Cochin SEZ, Airport Authority of India, Coffee Board, Exports Inspection Council and Andhra Pradesh Med Tech Zone (AMTZ) |
Implementation Strategy
An Empowered Committee periodically reviews the progress of the approved projects under the scheme. Necessary steps are taken by this committee to ensure that the objectives of the scheme are achieved. The use of grant-in-aid is strictly supervised to ensure that funds are efficiently allocated and utilised for the promotion of trade infrastructure.
