The Central Government of India recently allocated Rs 206 crore to various states for the purpose of promoting exports as part of the Trade Infrastructure for Export Scheme (TIES) initiative. Under TIES, financial support was approved for 27 export infrastructure projects between the fiscal years 2019-20 and 2022-23.
Exploring the Trade Infrastructure for Export Scheme (TIES)
Launched in 2017 by the Union Ministry of Commerce and Industry, the Trade Infrastructure for Export Scheme (TIES) came into existence after the Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme was delinked in 2015. Post its termination, State Governments continually sought the Centre’s support to develop export infrastructure.
Aims of TIES
The primary objective of TIES is to assist both Central and State Government agencies in the creation of infrastructure that is conducive to the growth of exports.
Scope of the Scheme
The scheme can be availed by States through the agencies they have tasked with its implementation. TIES can be utilised for infrastructure projects that have significant export linkages, such as Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, export warehousing and packaging, SEZs and ports or airports cargo terminuses.
Extent of Financial Assistance Provided
Under TIES, the Central Government provides assistance for infrastructure creation in the form of grant-in-aid. Typically, this does not exceed the equity contributed by the implementing agency or 50% of the total equity in the project. However, in the case of projects located in North Eastern States, Himalayan States including UT of J&K, Ladakh, this grant can amount to up to 80% of the total equity.
Projects Excluded from TIES
Certain types of projects are not considered under the purview of TIES. These include projects that fall under sector specific schemes, such as textiles, electronics, and IT. General infrastructure projects like highways and power are also excluded from the scheme. Moreover, projects that do not have a compelling export linkage are not considered under this scheme.
The information provided in this article is sourced from the Press Information Bureau (PIB).