The government has launched a new scheme named as the Trade Infrastructure for Export Scheme (TIES) for the development of export linked infrastructure in states with a vision to promote outbound shipments.
The Trade Infrastructure for Export Scheme (TIES) launched on March 15, 2017, by the Commerce and Industry Minister Nirmala Sitharaman. Basically, aims to link the infrastructure gap and provide forward and backwards linkages to units engaged in trade activities.
The procedure is going to be on participation basis and the focus is not just to create infrastructure and leave it, but make sure that it is professionally run and maintained as reported by the team.
via Objective
The main objective of the Trade Infrastructure for Export Scheme is an appeal for a clear definition and linkage with export industries.
The biggest costs incurred by the exporters is basically because of the absence of good infrastructure, whether it is testing or handling or cold storage at ports.
The idea of this scheme is to address those gaps and flaws in infrastructure which are not informed by any other scheme.
Budget
The implementation of the scheme started from April 1, 2017, and budget of Rs 600 crore for three years was set with an annual outlay of Rs 200 crore.
It has been planned that 5% of the grant approved would be used for appraisal, review and monitoring. It will be implemented from the year 2017 till 2020.
Implementation
- Under the scheme, preference will be given to the projects involving major contribution by the implementing agency and bank financing for achieving the financial conclusion.
- The other prominent features of the scheme include endorsement of leveraging of funds from other sources including
- Bank financing
- No recurrent costs of the land will be included and
- Operating & maintenance costs are to be met through pay and use charges.
- Eligible agencies for economic support under this scheme
- The central and state agencies,
- Export Promotion Councils,
- Commodities Boards,
- SEZ authorities and apex trade bodies recognised under the EXIM policy of government
- States are very accessible to this scheme as it will be utilised for their benefits.
Other Details
The implementing agencies would provide details of the financing tie-ups for the projects, which will be considered before approval of the project. Expenditure of funds shall be done after financial closure is achieved.
Assistance would be provided for setting up and promoting the infrastructure projects like
- Border heats,
- Land customs stations,
- Trade promotion centres,
- setting up of dry ports,
- export warehousing,
- Infrastructure in SEZs
- Ports/airports.
The commerce ministry is planning to hire a professional agency for project management on a pan India or regional basis.
There are infrastructural gaps related to export promotion like adequate testing and certification labs, cargo handling facilities and last mile connectivity as stated by the ministry explaining the need for the scheme.
The number of technical regulations and standards adopted by countries has grown significantly as stated in the details.