Lok Sabha Question No. 736 (UNSTARRED), answered on 2018-07-23
Subject: Assistance to States for Export Promotion
Ministry: COMMERCE AND INDUSTRY
Asked by: ALOK SANJAR

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 736(H) TO BE ANSWERED ON 23 rd  JULY,2018

## ASSISTANCE TO STATES FOR EXPORT PROMOTION

## 736(H).  SHRI ALOK SANJAR:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the details of schemes and the incentives being given to promote the exports;
- (b) whether the Government provides any assistance/facilities to States for development and promotion of export;
- (c) if so, the details thereof along with the assistance provided to States during each of the  last  three  years  and  the  current  year  including  the  details  of  State  agencies implementing the same; and
- (d) whether  the  Government  has  paid  attention  towards  the  problems  faced  by  the exporters in availing these facilities and if so, the details of complaints registered in this regard and the action taken thereon?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) Under  the  Foreign  Trade  Policy  2015-20,  the  Government  of  India  has  provisions under  which  incentives  and  schemes to  promote exports.  The  Merchandise  Exports from India Scheme (MEIS) incentivizes exporters in terms of Duty Credit Scrips at the  rate  2,  3,  4,  5  and  7%  of  realized  FOB  value  of  exports.  These  scrips  are transferable  and  can  be  used  to  pay  certain  Central  Duties/taxes  including  customs duties, but not IGST/CGST/SGST. The Scheme covers approx 8052 tariff lines at 8 digits level. During the mid-term review of Foreign Trade Policy, export incentives under Merchandise Exports from India (MEIS) have been increased by 2% for labour intensive and MSME sectors leading to additional annual incentive of Rs 4,567 crore. This was in addition to already announced  increase in MEIS incentives from 2% to 4% for Ready-made Garments and Made Ups in the labour intensive Textiles Sector with an additional annual incentive of Rs 2,743 crore. Recently, the rates for MEIS incentives  for  soya  products,  milk  products  and  onions  were  enhanced  and  certain new products from the milk sector were added under the MEIS. Under the Service Exports  from  India  Scheme  (SEIS)  rewards  on  Net  foreign  exchange  earnings,  to service providers of notified services who are providing service from India to the rest of the World, in the form of Duty Credit scrips are provided which are utilizable just like  MEIS.In  the  Mid-term  review  of  the  FTP,  the  rates  for  all  these  services  have

been  further  increased  by  2%  for  exports  from  01.11.2017,  leading  to  additional annual  incentive  of  Rs  1,140  crore.  Under  the  Advance  Authorization  and  related schemes,  the  importer  of  a  raw  material  is  provided  the  facility  of  importing  raw materials  without  payment  of  duty,  provided  the  imported  material  is  used  for manufacturing export products. Under the Export promotion Capital Goods Scheme (EPCG),  the exporters are allowed to import duty free capital goods, which can be used for pre-production, production and post production stages of the manufacture of export  product  and  services  provided,    they  commit  to  fulfill  an  export  obligation equal to six times of the duty saved in six years.

(b)  &  (c)  The  Regional  Authorities  of  DGFT  have  been  given  additional  mandate  for enhanced engagement with State Governments on behalf of Department of Commerce. The Commerce Secretary has written to Chief Secretaries of all State Governments / UTs, requesting  the  State  Governments  to  constitute  a  State  Export  Promotion  Committee under  the  chairmanship  of  Chief  Secretaries  for  focusing  on  export  promotion.  The Regional Authorities of DGFT are working with the State Governments in implementation/  monitoring  of  State  Export  Policy,  identifying/addressing  the  gaps  in trade related infrastructure and logistics and to facilitate the engagement of exporters with the State Governments.

Further, the Department of Commerce implements a scheme namely Trade Infrastructure for  Export  Scheme (TIES). The scheme was launched during BE 2017-18, for 3 years, with  the  objective  to  enhance  export  competitiveness  by  bridging  gaps  in  export infrastructure,  creating  export  focused  infrastructure,  inducing  states  to  take  up  more export-oriented projects including those required for addressing quality and certification concerns. It provides financial assistance for setting up and up-gradation of infrastructure projects with overwhelming export linkages like the 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. In 2015-16 and  2016-17,  ASIDE  (Assistance  to  States  for  Infrastructure  for  Exports)  was  present under which such funds were granted. List of projects approved under TIES and ASIDE during last three years and the current year are in the Annexure  I

(d)  Yes  Madam,  the  Government  has  multiple  platforms  on  which  the  exporters  can submit  their  problems  for  quick  redressal.    The  contact  us  @DGFT  service  has  been made functional wherein exporters are submitting their problems and a ticket is raised. This  ticket  is  closed  after  resolution  of  the  problem.    Similarly,  the  Ministry  has  a Grievance cell, which monitors the effective disposal of such grievances. Additionally, in June  2018,  all  the  major  regional  offices  of  DGFT  has  conducted  Export  obligation discharge camps to dispose pending applications and resolve issues of exporters.

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## Annexure-I

## Project approved under TIES during FY 2017-18

| S. No.      | Name of Agency                                                            | Name of Project                                                                                                        |   Total Project Cost (in Rs. Crore) |   TIES fund approved (in Rs. Crore) | 1 st instalment released                |
|-------------|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------|-----------------------------------------|
| 1.          | Karnataka Fisheries Development Corporation (KFDC), Govt. of Karnataka    | Modernization of infrastructure facility for Marine Exports at Tadadi, Kumta Taluk, Uttara Kannada District, Karnataka |                               13.34 |                                5    | Rs. 2 Cr.                               |
| 2.          | Visvesvaraya Trade Promotion Centre (VTPC), Bengaluru, Govt. of Karnataka | Establishment of 'Coastal Cashew Research & Development Foundation, Kumta', District Uttara                            |                                9.55 |                                3.31 | Rs. 1 Cr.                               |
| 3.          | Cochin SEZ                                                                | Kannada, Karnataka Construction of SDF Building at Cochin SEZ, Kerala                                                  |                               61.63 |                               20    | Rs. 6.50 Cr.                            |
| 4.          | Airport Authority of India (AAI)                                          | Establishment of Integrated Cargo Terminal (ICT) at Imphal International Airport, Imphal, Manipur                      |                               16.2  |                               11.92 | Rs. 6 Cr.                               |
| 5.          | Andhra Pradesh Med tech Zone Ltd (AMTZ)                                   | Common Scientific Facilities in AMTZ, Andhra Pradesh                                                                   |                              168.87 |                               40    | Rs. 4.0 Cr.                             |
| 6.          | HLL Medipark Ltd.                                                         | Setting up of EMI/EMC Lab for Medical Technology at Chengalpattu, Tamil Nadu                                           |                               21.07 |                                9.56 | Rs. 4.78 Cr.                            |
| 7.          | Tamilnadu Trade Promotion Organisation (TNTPO)                            | Expansion of Chennai Trade Centre Tamil Nadu                                                                           |                              288.16 |                               20    | Rs. 10.00 Cr.                           |
| 8.(i) 8(ii) | M.P. State Tourism Development Corporation, Govt. of M.P                  | 'Establishment of Trade Promotion Centre at Minto Hall, Bhopal'                                                        |                               49.39 |                               17.67 | Rs. 9.00 Cr. (1 st instal) Rs. 8.67 Cr. |
| 9.          | Coffee Board                                                              | Establishment of 'Laboratory Infrastructure for Coffee Quality & Export Certifcation, Bangalore                        |                               11.4  |                                5.7  | Rs. 2.85 Cr.                            |
| 10.         | Noida SEZ Authority                                                       | Establishment of Solid Waste Management System at Noida SEZ                                                            |                                4.25 |                                2.13 | Rs. 1.07 Cr.                            |

| 11    | Export Inspection Council                          | Establishment the facility for analysis of origin and authenticity of various food products, Mumbai    | 8.10   | 3.04   | Rs. 1.52 Cr                                    |
|-------|----------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------|
| 12.   | Tripura Industrial Development Corporation Ltd.    | Upgradation of Infrastructure at LCS Muhurighat, Belonia, South Tripura                                | 16.85  | 12.29  | Rs. 6.15 Cr                                    |
| 13    | Export Inspection Council                          | Construction of office cum laboratory complex of Export Inspection Agency at Vishakapatnam             | 16.52  | 8.15   | Rs. 4.15 Cr.                                   |
| 14.   | M.P. Audyogik Kendra Vikas Nigam (Indore), Limited | establishment of Cold Chain at Pithampur, SEZ Phase II, Madhya Pradesh                                 | 32.16  | 16.08  | Rs. 8.04 Cr.                                   |
| 15.   | Land Ports Authority of India                      | Development of Integrated Check Post Petrapole: Proposal for construction of additional truck parking' | 32.24  | 13.66  | Rs. 4.27 Cr. (1 st tranche of 1 st instalment) |
| TOTAL | TOTAL                                              | TOTAL                                                                                                  | TOTAL  | TOTAL  | Rs. 80 Cr.                                     |

## Project approved under TIES during FY 2018-19

|   S. No. | Name of Agency                          | Name of Project                                                                                        |   Total Project Cost (in Rs. Crore) |   TIES fund approved (in Rs. Crore) | 1 st /2 nd instalment released                 |
|----------|-----------------------------------------|--------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------|------------------------------------------------|
|        1 | Land Ports Authority of India           | Development of Integrated Check Post Petrapole: Proposal for construction of additional truck parking' |                               32.24 |                               13.66 | Rs. 2.56 Cr. (2 nd tranche of 1 st instalment) |
|        2 | Andhra Pradesh Med tech Zone Ltd (AMTZ) | Common Scientific Facilities in AMTZ, Andhra Pradesh                                                   |                              168.87 |                               40    | Rs. 9.0 Cr. (2 nd instalment)                  |

TOTAL amount released under TIES during FY 2018-19 = Rs. 11.56cr.

| ASIDE Central Component (F.Y. 2015-16)   | ASIDE Central Component (F.Y. 2015-16)   | ASIDE Central Component (F.Y. 2015-16)                                                                          | ASIDE Central Component (F.Y. 2015-16)   |
|------------------------------------------|------------------------------------------|-----------------------------------------------------------------------------------------------------------------|------------------------------------------|
|                                          |                                          |                                                                                                                 | (Rs. in Cr.)                             |
| S. No.                                   | Agency concerned                         | Name of the Project                                                                                             | Fund Released                            |
| 1                                        | Chennai Port Trust                       | Development of Construction of Exim Godown at Chennai Port Trust, Tamil Nadu                                    | 3.75                                     |
| 2                                        | Cochin Port Trust                        | Modification of Container Freight Station at CPT, Kerala                                                        | 2.02                                     |
| 3                                        | Cochin SEZ                               | Construction of New Warehouse, Kerala                                                                           | 2.38                                     |
| 4                                        | Govt. of Manipur                         | Establishment of Trade cum Permanent Exhibition Centre at Lambai- Khongnangkhong, Imphal West District, Manipur | 7.49                                     |
| 5                                        | HLL Lifecare Ltd.                        | EMI/EMC Testing lab for medical equipments in HLL campus, Noida, Uttar Pradesh                                  | 2.00                                     |
| 6                                        | Kandla SEZ                               | Dismantling and reconstruction of 16 CIB sheds, Gujarat                                                         | 1.14                                     |
| 7                                        | Kandla SEZ                               | Construction of One No. SDF Building Unit-VII, Gujarat                                                          | 8.24                                     |
| 8                                        | Kandla SEZ                               | Construction of One No. SDF Building Unit-VI, Gujarat                                                           | 4.98                                     |
| 9                                        | Mormugao Port Trust                      | Development of Storage Areas for Containers at Mormugao Port, Goa                                               | 3.00                                     |
| 10                                       | New Mangalore Port Trust                 | Construction of Business Development Park, Karnataka                                                            | 7.50                                     |
| 11                                       | Spices Board, Kochi                      | Establishment of Quality Evaluation Laboratory for Spices at MIDC Area, Navi Mumbai. Maharashtra                | 7.50                                     |
|                                          |                                          | TOTAL                                                                                                           | 50.00                                    |

## ASIDE-Central Component (F.Y. 2016-17)

| S. No.   | Agency                                               | Name of the Project                                                                                                                    |   Fund Released |
|----------|------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|-----------------|
| 1        | VTPC, Karnataka                                      | Export Infrastructure facility to exports of perishable cargo and cold chain at Kempegowda International Airport, Bangalore. Karnataka |          5      |
| 2        | HPSIDC, Himachal Pradesh                             | Container Parking Facility at BaddiBarotiwala, HP                                                                                      |          3.33   |
| 3        | CLE, Chennai                                         | Creation of Additional Capacity of ZLD System in VISHTEC-CETP., Tamil Nadu                                                             |          2.3    |
| 4        | TIDC, Tripura                                        | Upgradation of Manughat LCS, Tripura                                                                                                   |          3.3    |
| 5        | SEEPZ                                                | Electronic Surveillance System ... CCTV Camera, Maharashtra                                                                            |          1.05   |
| 6        | SEEPZ                                                | Security system , Control System with integration CCTV Cameras', Maharashtra                                                           |          1.25   |
| 7        | KSEZ                                                 | Dismantling and reconstruction of 16 CIB sheds', Gujarat                                                                               |          3.99   |
| 8        | HPSIDC, Himachal Pradesh                             | Ware House Project for exporting units located in Baddi-Barotiwala, Nalagarh, HP.                                                      |          4.5    |
| 9        | Spices Board                                         | Eliminating Export Rejections due to Microbiological Contamination in Indian Spice Export, Kerala                                      |          5.35   |
| 10       | NICS                                                 | Development of System for online submission and processing of application                                                              |       3089      |
| 11       | HLL                                                  | EMI/EMC Testing lab for medical equipment's in HLL campus, Noida.                                                                      |         12      |
| 12       | SEEPZ                                                | Construction of a new SDF Tower in SEEPZ SEZ near Plot A-1, Maharashtra                                                                |          9.945  |
| 13       | Spices Board, Kochi                                  | Setting up of Quality Evaluation Laboratoty cum Training Centre, Kolkata, W.B.                                                         |          2.1247 |
| 14       | Cochin Port Trust                                    | Construction of a barge berth for handling bunkers in Cochin Port, Kerala                                                              |          0.8813 |
| 15       | CLE                                                  | Establishment of Trade Centre at Agra (Uttar Pradesh)                                                                                  |          1.3505 |
| 16       | Mormugao Port Trust Development of Storage Areas for | Mormugao Port Trust Development of Storage Areas for                                                                                   |          4      |
| 17       | IIPM                                                 | Establishing Spices Exporters Entrepreneurship facility, Bangalore, Karnataka                                                          |          4.3196 |
|          | TOTAL                                                | TOTAL                                                                                                                                  |         65      |

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(Rs. in Cr.)