Focus: GS-III: Indian Economy
Why in News?
Recently, the central government has released Rs 206 crore to states for the promotion of exports under the Trade Infrastructure for Export Scheme (TIES) initiative.
- Under the TIES, financial assistance for 27 export infrastructure projects have been approved during FY 2019-20 to 2022-23.
About Trade Infrastructure for Export Scheme (TIES)
- The Trade Infrastructure for Export Scheme (TIES) was introduced by the Union Ministry of Commerce and Industry in 2017.
- The State Governments have been requesting the Center’s assistance in the development of export infrastructure ever since the Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme was delinked in 2015.
- The scheme can be availed by States through their implementing agencies, for infrastructure projects with significant export linkages like Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, export warehousing and packaging, SEZs and ports/airports cargo terminuses.
- The Central Government will provide grant-in-aid for infrastructure creation, typically not exceeding the equity contributed by the implementing agency or 50% of the project’s total equity.
- This grant may make up to 80% of the total equity for projects in North Eastern and Himalayan States, including the UT of J&K and Ladakh.
Negative List of Projects that will not be Considered under this Scheme:
- Projects which are covered under sector specific schemes like textiles, electronics, IT.
- General infrastructure projects like highways, power etc.
- Projects where an overwhelming export linkage cannot be established.
To assist Central and State Government agencies in the creation of appropriate infrastructure for the growth of exports.