Economy

TIES funding to be capped at ₹ 20 crore per project

Our Bureau New Delhi | Updated on January 15, 2018 Published on March 15, 2017

nirmala

Scheme will support projects with export linkages such as border haats, land customs stations, quality testing and certification labs, cold chains

The Centre’s new scheme —Trade Infrastructure for Export Scheme (TIES) — for financing State’s infrastructure projects, will provide grant-in-aid up to half of the equity being put in by implementing agencies with a ceiling of ₹ 20 crore per project, Commerce & Industry Minister Nirmala Sitharaman has said.

The scheme, to be implemented from next month for a three-year period, has been designed to meet the demand of States for infrastructure funding after the Centre stopped funding an earlier scheme called the Assistance to States for creating Infrastructure for Development and growth of Exports (ASIDE).

“The focus is not just to create infrastructure but to make sure it is professionally run and sustained,” Sitharaman said this while addressing a press conference on Wednesday.

The scheme would provide assistance for setting up and upgradation of infrastructure projects with "overwhelming export linkages'' like border haats, land customs stations, quality testing and certification labs, cold chains, trade promotion centres, dry ports, export warehousing and packaging, SEZs and ports/airports cargo terminuses, Commerce Secretary Rita Teaotia said.

“The last and first mile connectivity projects related to export logistics will also be considered,” she said.

Financial support from the Centre will match the equity being put in by the Central or State implementing agency (project proponent) in States. For North East and Himalyan States, up to 80 per cent financial support would be provided.

The grant-in-aid shall be subject to a ceiling of ₹ 20 crore normally for each project, the Minister added.

Central government agencies, State government agencies, Export Promotion Councils, Commodities Boards and apex trade bodies of India shall be eligible for financial support under the scheme will be known as implementing agencies.

The cost of land shall not be included in the project cost for the purpose of calculating the extent of contribution of the implementing agency under the scheme.

Proposals of the implementing agencies for funding will be considered by an empowered committee specially constituted for the scheme. It will be chaired by the Commerce Secretary and have the Director General of Foreign Trade and representatives from Niti Aayaog, the Ministry of Development of North East Regions and the Department of Industrial Policy & Promotion as members.

Published on March 15, 2017
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