Indian Govt to launch new scheme to fund export infrastructure

Export Scheme details
1. Introduction1.1 Exports have come to be regarded as an engine of economic growth in the wake of liberalization and structural reforms in the economy. A sustained growth in exports is, however, not possible in the absence of proper and adequate infrastructure as adequate and reliable infrastructure is essential to facilitate unhindered production, cut down the cost of production and make our exports internationally competitive. 2. Objective2.1 The objective of the scheme is to involve the states in the export effort by providing assistance to the State Governments for creating appropriate infrastructure for the development and growth of exports. 3. Scheme3.1.The scheme shall provide an outlay for development of export infrastructure which will be distributed to the States according to a pre-defined criteria. The existing EPIP, EPZ and CIB schemes shall be merged with the new scheme. The scheme for Export Development Fund (EDF) for the North East and Sikkim (implemented since 2000-2001) shall also stand merged with the new scheme. After the merger of the schemes in respect of EPIP,EPZ,CIB and EDF for NER and Sikkim with the new scheme, the ongoing projects under the schemes shall be funded by the States from the resources provided under the new scheme. 4. Approved purposes for the scheme4.1 The activities aimed at development of infrastructure for exports can be funded from the scheme provided such activities have an overwhelming export content and their linkage with exports is fully established. The specific purposes for which the funds allocated under the Scheme can be sanctioned and utilised are as follows:
![]() 5. Allocation of funds5.1 The outlay of the scheme will have two components. 80% of the funds (State component) shall be earmarked for allocation to the States on the basis of the approved criteria as indicated in para 6 to be utilised for the approved purposes ( para 4). The balance 20% (central component), and amounts equivalent to un-utilised portion of the funds allocated to the States in the past year(s), if any, shall be retained at the central level for meeting the requirements of inter state projects, capital outlays of EPZs, activities relating to promotion of exports from the NER as per the existing guidelines of EDF and any other activity considered important by the Central Government from the regional or the national perspective. 6. Criteria for State-wise allocation6.1 The State Component will be allocated to the States in two tranches of 50% each. The inter-se allocation of the first tranche of 50% to the States shall be made on the basis of export performance. This shall be calculated on the basis of the share of the State in the total exports. The second tranche of the remaining 50% will be allocated inter-se on the basis of share of the States in the average of the growth rate of exports over the previous year. The allocations will be based on the data of exports of goods alone and the export of services will not be taken into account. 7. Release of Funds7.1.The release of the funds to the States shall be subject to the limit of the entitlement worked out on the basis of the laid down criteria. On receipt of the pre-receipt bill from the Nodal Agency nominated by the State Government funds will be directly disbursed to it. Format of the bill is given at ANNEXURE – III. The funds will be kept in a separate head in the accounts of the Agencies. The unutilised funds, if any, out of the allotted funds will be counted against allocations for the next year and suitable deductions for equivalent amounts may be made from the allocations next year. 8. Approval of Projects and Implementation8.1.There shall be a State Level Export Promotion Committee (SLEPC) headed by the Chief Secretary of the State and consisting of the Secretaries of concerned Departments at the State level, & a representative of the States cell of the Department of Commerce (DoC) and the Joint Director General of Foreign Trade posted in that State/region and the Development Commissioners of the SEZ/EPZ in the State as per Annexure – IV as Members. SLEPC will scrutinise and approve specific projects and oversee the implementation of the Scheme. 9. Criteria for approval of projects9.1 The proposals must show a direct linkage with the exports. The proposed investments should also not duplicate the efforts of any existing organisation in the same field. The funding for the project should generally be on cost -sharing basis, if the assistance is being provided to a non-government agency. However, the SLEPC/Empowered Committee may consider full funding of the project on merits. 10. Eligible Agencies10.1 Under the scheme, funds for the approved projects may be sanctioned to: –
![]() 11. Administrative expenses11.1 All administrative expenses connected with the implementation of the scheme will be met by the concerned State Governments from out of their own budget and no part of the scheme funds shall be used to meet such expenditure. 12. Submission/scrutiny of project proposals12.1 The project proposal should be exhaustive and precise. All aspects related to projects should be supported by data, surveys and projections for future etc.
12.3. Details on each of the parameters indicated above should be included in the detailed project report. The report should also contain, inter alia, detailed cost benefit analysis, details of cost of each components of the project, benefits accruing from the projects in both qualitative and quantitative terms, for growth and exports. 13. Monitoring and Review13.1 Each State/UT/Agency/Central Agency shall submit a quarterly report in the prescribed format as given at Annexure-VI through the web site of Department of Commerce. This report will be used to review the progress of utilisation of the funds released as also the basis for further release of funds by the Ministry. The annual utilization of funds shall be submitted on Form GFR 19-A (Annexure VII) through the web site by using digital signatures” 14. Evaluation14.1 There may be a mid-term evaluation of the scheme at the end of three years. It is expected that, after implementation of this scheme, States will benefit from the cumulative impact of improved infrastructure for exports and the impact of increased exports in their economy on employment and overall prosperity. The evaluation would also be the basis for carrying out mid-term corrections in the scheme, if any. Annexure-IGUIDELINES FOR COMMON EFFLUENT TREATMENT FACILITIES
![]() Annexure IIGUIDELINES
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Sl. No.
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Development Commissioner |
States/UTs
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1.
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DC, Cochin
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Kerala, Karnataka, Lakshadweep, Mahe
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2.
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DC, Falta
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West Bengal, Orissa, Bihar, Jharkhand, Assam, Tripura, Manipur, Meghalaya, Nagaland, Mizoram, Sikkim
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3.
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DC, Noida
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Delhi, Uttar Pradesh, Uttaranchal, Punjab, Haryana, Himachal Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh, Chhattisgarh, Chandigarh
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4.
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DC, Vishakhapatnam
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Andhra Pradesh, Yanam
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5.
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DC, Kandla
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Gujarat
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6.
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DC, Chennai
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Tamil Nadu, Andaman & Nicobar Islands Pondicherry
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7.
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DC, SEEPZ
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Maharashtra, Goa, Daman & Diu, Dadra & Nagar Haveli
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Annexure V
Private Sector participation in projects to be taken up under ASIDE
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To leverage funds under ASIDE, these funds could be used for inviting private sector participation in the development, operation and maintenance of infrastructure projects. For this purpose, the State Government can choose IDFC or ILFS as a project development agency or any other agency as notified by Govt of India.
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The selected Agency would work with the Nodal Agency/Implementing Agency of the State government and shall prepare necessary documentation for inviting offers for the private sector participation.
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The funds under ASIDE could also be used for incurring cost towards project development. Since such costs are loaded to the final cost of the project, this amount would be treated as an advance to the project and would be adjusted towards the final payment to be made. In case it is found at the end of the selection process that the project does not require any support, the money spent on project development would be treated as support to the project.
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The projects for private sector participation could be taken by way of front loading of capital grant or to provide annuity payment or any other mode which may be agreed by the State Government. However, commitment under ASIDE should be made keeping in view the likely allocation under the 10th Plan only.
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Project operator could be a private agency or public sector agency or the Departments of Government, but such agency should be selected by a transparent system of competitive bidding.
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Presently 100% support is to be extended to projects from ASIDE and in addition, responsibility for operation and maintenance of the project is also being undertaken by the Government. If organisations are identified to take up the construction, operation and management of projects even with 100% support for capital works, it would mean privatization of operation and maintenance through user charges. Immediately it may be appropriate not to put any limit on support to be given under ASIDE to such projects as percentage of capital cost. However, this may be reviewed after a year after having some experience of such projects in the States.
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To provide incentive to States to take up private sector participation on an urgent basis, it has been decided that such expenditure for these projects (beyond project development expenditure) would be provided as an additional allocation next year. However, this would be limited to a maximum of ten per cent of the total allocation of the State under ASIDE.
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From the year 2003-04, it would be mandatory that States would spend at least 50% of their allocation on implementing such projects. States utilising full allocation on such projects would be given additional allocation subject to a maximum of ten per cent of the allocation of the State.

Annexure-VI
FORMAT-I
Report for the quarter ending on __________________________________
from the Government of _________________________________________
Amount in Lakhs | ||
1. | Amount balance at the end of last year | |
2. | Allocation for the year | |
3. | Amount received during the year | |
4. | Total amount available | |
5. | Amount spent in the year up to the quarter | |
6. | Allocation of complimentary funds for the schemes from the State/UT Budget |
FORMAT-II
Report for the Quarter ending on from the
Govt of__________
Sl. No.
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Name of the Project
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Year of Approval
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Through Pvt. Sector
(Yes/No) |
Cost approved for funding
(in lakhs) ASIDE SG Pvt. Sector |
Amount spent upto last financial year
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Amount spent during the present financial year
Upto the quarter |
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Annexure-VII
Form GFR 19–A
{See Government of India’s Decision (1) below Rule 150}
“Form of Utilisation Certificate”
Sl. No | Letter No. & Date | Amount |
Total ____________
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Certified that of Rs. _________ of grants–in–aid sanctioned during the year _________ in favour of ___________ under the Ministry/Department’s letter no. given in the margin and Rs. _____ on account of unspent balance of the previous year a sum of Rs. _______ has been utilised for the purpose of _________________ for which it was sanctioned and that the balance of Rs. _________ remaining unutilised at the end of this year has been surrendered to government (vide no. _____________ date ______) will be adjusted towards the grants–in–aid payable during the next year _______.
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Certified that I have satisfied myself that the conditions on which the grants–in–aid was sanctioned have been duly fulfilled/are being fulfilled and that I have exercised the following checks to see that the money was actually utilised for the purpose for which it was sanctioned:
(Kinds of checks exercised)
Designation _______________
Date _______________
Annexure VIII
Sub: Evaluation of the projects sanctioned under CIB/ASIDE Scheme
- It has been decided to get the projects under ASIDE visited by field formations of Department of Commerce, with the following objectives:
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To evaluate progress in the implementation of the project;
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To assess the impact of the project on exports ;
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To make recommendation to State Government for effective implementation of scheme (e.g. selection of projects, review mechanism, fund flow mechanism, integration with State Government scheme etc.)
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To identify issues requiring changes in Policy for its speedier and effective implementation;
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The nominated officer would visit each of the projects on which funds have been spent under the Scheme during last financial year. Date of the visit would be fixed by him/her in consultation with the Nodal Department of the State Government. The list of such project alongwith other details shall be provided by DoC. The inspection report for each project would be prepared in the format given at Appendix-I
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After inspection of all projects of the State, consolidated report would be prepared for the State. The Report should contain:-
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Broad observations on the four points (a) to (d) above and give an overall assessment of the implementation of the Scheme in the State.
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Utilisation of funds under the Scheme as per Appendix-II.
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Implementation Report of each project on Appendix-I (as attachments to report)
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A copy of the same would be sent by e-mail to Department of Commerce, to the State Government and the Nodal Agency of the State. The State Government should place the inspection report before the SLEPC in its next meeting held after the submission of report for taking appropriate decisions and issuing appropriate directions to the concerned agencies, if so required.
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During the next visit, compliance of the observations so made by the Inspecting Officer in earlier visit should also be assessed.
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The names of the officers responsible for each of the State are given at Appendix-III.
Appendix-I
Proforma for evaluation of the project sanctioned under CIB/ASIDE Scheme
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Name of the State/UT/Agency
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Name of the Inspecting Officer
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Date of Visit
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Name of the Project
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Main Components of the project
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Physical Progress
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Date of start of project
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Scheduled period of completion
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Present Status
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Months/Year of completion
- Finance Details :
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Cost of the project
- Total cost
- Total funds released during the FY
- Fund released upto the FY
- Funds utilized upto the FY
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State’s share
- Total amount
- Funds released so far upto the FY
- Funds utilized upto the FY
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Share under ASIDE
- Total
- Funds released upto the FY
- Funds released during the FY
- Expenditure upto the FY
- Expenditure during the FY
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Share of private Sector
- Total
- Spent upto the FY
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Comments on physical progress of the project:
(It should cover implementation as per time schedule, inter-Agency/Department coordination in the implementation of the project, the quality of work as per visual inspection and any other observation which may be relevant for the physical progress. Specific suggestions for its implementation may also be given). -
Impact on Exports (for completed project)
(The assessment should mention direct or indirect benefit which the infrastructure is likely to extend to promotion of exports from the area. Any quantifiable results should be specifically mentioned). -
Policy Issues
(Any issue which is affecting the implementation or impact of the project because of certain provisions in guidelines should be specifically mentioned).
Appendix-II
Sl. NO. | Name of Project |
Amt. Indicated by State Govt. as utilised during the FY
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Actual Amt. Released to the project during the FY
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Actual Amt. Utilised by the project during the FY
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Appendix – III
OFFICERS RESPONSIBLE FOR EACH OF THE STATE
S.No. | Name of Officer | Tele (Off.) | Fax No. | States | |
1. | DC, Cochin SEZ.Kakkanand, Cochin (Kerala) | 0484-42545 | 0484-422530 | e-mail@cscz.com | Kerala, Karnataka, Lakshadweep |
2. | DC, Falta SEZ.11, MSO Building 4th Floor, Nizam Palace, Kolkata |
033-2472263 | 033-2477923 | fepz@wb.nic.in | West Bengal, Sikkim |
3. | DC, NOIDA SEZ,Dadri Road, NOIDA | 95-120-4562315 | 95-120-4562315 | dcnepz@nda.vsnl.net.in | U.P., UttranchalDelhi |
4. | DC, Vizag SEZ, Administrative Building, DUVVADAVizag | 0891-754577 | 0891-751259 | dc@vepz.com | Andhra Pradesh |
5. | DC, Kandla SEZ,Gandhidham, Kutch, Gujarat | 02836-53300 | 02836-52250 | kafta@wilnetonline.net | Gujarat |
6. | DC, Madras SEZ,G.S.T. Road, Tambaram, Chennai | 044-262820 | 044-2628218 | mepz@vsnl.com | T.N., Andaman & Nicobar, Pondicherry |
7. | DC , SEEPZ SEZ,Andheri (East) Mumbai |
022-8290856 | 022-8291385 | dcseepz@vsnl.com | Maharasthra |
8. | Jt. DGFT4, Esplanade East, Kolkata | 033-2486426 | 033-2485892 | Jdgft@jdgft.wb.nic.in | Orissa, Bihar, Jharkand |
9. | Jt. DGFT, UdyogBhavan,IIIrd Floor, Tilak Marg, Jaipur |
0141-722276 | 0141-380601 | Jdgft@raj.nic.in | Rajasthan |
10. | Jt. DGFT, 3rd Floor, 52-A, Arena Hills (Behind Government of Press)Bhopal | 0755-553303 | 0755-553303 | Dgftbpl@mp.nic.in | M.P., Chhatisgarh |
11. | Jt. DGFT,R.B. Baruah Road, Gauhati, Guwahati |
0361-562583 | Dgftnet@asm.nic.in | Assam, Arunachal Pradesh & Nagaland | |
12. | Jt. DGFT,SCO-288, Sector 35-D, Chandigarh |
0172-602314 | 0172-602314 | dgft@chd.nic.in | Punjab, Haryana, Chandigarh |
13. | Jt. DGFT,Ashirwad Building, 18th June Road, Santa Inoz Panijim, Goa |
0832-224968 | 0832-224968 | Goa | |
14. | Jt. DGFT,24-C/C, Gandhi Nagar, Jammu |
0191-435834 | 0191-435834 | J & K, H.P. | |
15. | Jt. DGFT,Morollo Building, Shillong |
0361-223360 | 0361-223360 | Dgftshil@maghalaya.ren.nic.in | Meghalaya, Mizoram, Tripura & Manipur |
16. | Jt. DGFT,901-902, E-Block 9th Floor, Kuber Bhavan Kothi Char Rashta, Vadodara. |
0265-429368 | 0265-428789 | Daman & Diu & Dadra & Nagar Haveli |