Lok Sabha Question No. 102 (STARRED), answered on 2019-02-11
Subject: Promotion of Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: RAJEEV SHANKARRAO SATAV, SUPRIYA SADANAND SULE

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

## LOK SABHA STARRED QUESTION NO. 102 TO BE ANSWERED ON  11 th  FEBRUARY, 2019

## PROMOTION OF EXPORTS

## *102.  SHRI SATAV RAJEEV:

SHRIMATI SUPRIYA SULE:

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

- (a) whether the  Government has any scheme to assist the States  in  promotion of exports and if so, the details thereof;
- (b) the  details  of  total  funds  allocated  to  various  States  for  export  promotion,  sector  and State-wise during each of the last three years and the current year along with the steps taken by the Government to engage the States in export promotion;
- (c) the measures taken by the Government to improve the logistic constraints to achieve the export target of the country;
- (d) whether  the  Government  has  also  made  provisions  for  tax  rebate  for  promotion  of exports and if so, the details thereof; and
- (e) the value of rebate provided during the last three years along with the role of the said rebate  in  increasing  the  exports  and  the  monitoring  system  in  place  to  ensure  proper utilisation of the said rebate?

## ANSWER

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## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI SURESH PRABHU)

- a) to  e):  A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO. 102    FOR ANSWER ON 11 th  FEBRUARY, 2019 REGARDING  ' PROMOTION OF EXPORTS '.

- (a)  & (b) The  Government  of  India  has  recently  launched  a  scheme  namely  'Trade Infrastructure for Export Scheme (TIES)' w.e.f. FY 2017-18 with the objective to  assist Central  and  State  Government  agencies  in  creation  of  appropriate  infrastructure  for growth  of  exports  from  the  States.    The  scheme  provides  financial  assistance  to Central/State  Government  owned  agencies  (or  their  Joint  Ventures  with  major  stakeholding by them) for setting up or up-grading export infrastructure, subject to the project being  compliant  of  the  scheme  guidelines.The  scheme  guidelines  are  available  at https://commerce.gov.in.The  Scheme  can  be  availed  by  the  States  through  their agencies,  for  export  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.

Under  the  TIES  Scheme,  so  far  in  total  24  export  infrastructure  projects  have  been provided financial assistance during FY 2017-18 and 2018-19. The state-wise and Yearwise details of projects, located in various States/UTs, is given at Annexure-I & II.

Also  with  the  objective  to    engage  with  the    State  Governments  on  measures  for promoting exports and create a  trade enabling environment in the State,  a Council for Trade Development and Promotion has been constituted  under the chairmanship of the Union Commerce and Industry Minister, in which the Trade & Commerce Ministers of all the states are members.  Regular annual meetings of the Council have been conducted to enable  the States to articulate their views on the Foreign Trade Policy.

- (c)  Improving logistics is an ongoing and continuous process. The Government reviews and removes  the  bottlenecks  to  make  the  logistics  more  efficient.  Some  of  the  recent measures taken have been :
- (i) In  May,  2018,  the  Ministry  of  Shipping  lifted  restriction  on  foreign  registered vessels  for  transportation  of  loaded  or  empty  containers  between  Indian  ports. This can lead to increase in container trade volumes in the country.
- (ii) Implementation of 'Sagar Mala' and 'Bharat Mala' programmes are also expected to bring down logistics cost and improve export competitiveness.
- (iii) Further  cold  chains,  multi-modal  logistics  parks  etc.  have  been  included  in  the Harmonized  Master  List  of  Infrastructure  sub-sectors'  and  has  been  granted infrastructure  status  in  November  2017.  This  would  enable  the  sector  to  avail infrastructure  lending  at  terms  with  enhanced  limits,  access  larger  volume  of funds as External Commercial Borrowings (ECB) and access longer tenure funds from insurance companies.
- (d)  & (e): Yes Madam, provisions have been made under the Central Excise Act 1944 and rules made there under to provide rebate to exporters. To ensure that the provisions for the rebate are not misused, suitable safeguards have been built in the law. The purpose of rebate of duty to exporters is to make our exports zero rated and therefore the exports become more competitive in the international markets.

The value of rebate during the last three years is given below.

|   Sl No | Year    | Rebate of duty sanctioned ( Rs. in Lakhs)   |
|---------|---------|---------------------------------------------|
|       1 | 2015-16 | 24,39,441                                   |
|       2 | 2016-17 | 21,28,806                                   |
|       3 | 2017-18 | 16,54,488                                   |

Source: CBIC, Department of Revenue.

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## Project approved under TIES during FY 2017-18

## Annexure-I

(in Rs. Crore)

| S. No.   | State          | Name of Agency                                                            | Name of Project                                                                                                        | Total Project Cost   | TIES fund approved   | Amount released    |
|----------|----------------|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|----------------------|----------------------|--------------------|
| 1.       | Karnataka      | 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                | 5.00                 | 2.00               |
| 2.       | Karnataka      | Visvesvaraya Trade Promotion Centre (VTPC), Bengaluru, Govt. of Karnataka | Establishment of 'Coastal Cashew Research & Development Foundation, Kumta', District Uttara Kannada, Karnataka         | 9.55                 | 3.31                 | 1.00               |
| 3.       | Karnataka      | Coffee Board                                                              | Establishment of 'Laboratory Infrastructure for Coffee Quality & Export Certification, Bangalore, Karnataka            | 11.40                | 5.70                 | 2.85               |
|          |                |                                                                           | TOTAL (Karnataka )                                                                                                     |                      |                      | 5.85               |
| 4.       | Kerala         | Cochin SEZ                                                                | Construction of SDF Building at Cochin SEZ, Kerala                                                                     | 61.63                | 20.00                | 6.50               |
|          |                |                                                                           | TOTAL (Kerala)                                                                                                         |                      |                      | 6.50               |
| 5.       | Manipur        | Airport Authority of India (AAI)                                          | Establishment of Integrated Cargo Terminal (ICT) at Imphal International Airport, Imphal, Manipur                      | 16.20                | 11.92                | 6.00               |
|          |                |                                                                           | TOTAL (Manipur)                                                                                                        |                      |                      | 6.00               |
| 6.       | Andhra Pradesh | Andhra Pradesh Med tech Zone Ltd (AMTZ)                                   | Common Scientific Facilities in AMTZ, Andhra Pradesh                                                                   | 168.87               | 40.00                | 4.00               |
| 7.       | Andhra Pradesh | Export Inspection Council                                                 | Construction of office cum laboratory complex of Export Inspection Agency at Vishakapatnam, AndhraPradesh              | 16.52                | 8.15                 | 4.15               |
|          |                |                                                                           | TOTAL (Andhra                                                                                                          |                      |                      | 8.15               |
| 8.       | Tamil Nadu     | HLL Medipark Ltd.                                                         | Setting up of EMI/EMC Lab for Medical Technology at Chengalpattu, Tamil Nadu                                           | 21.07                | 9.56                 | 4.78               |
| 9.       | Tamil Nadu     | Tamilnadu Trade Promotion Organisation (TNTPO)                            | Expansion of Chennai Trade Centre, Tamil Nadu                                                                          | 288.16               | 20.00                | 10.00              |
|          |                |                                                                           | TOTAL (Tamil Nadu)                                                                                                     |                      |                      | 14.78              |
| 10.(i)   | Madhya Pradesh | M.P. State Tourism Development Corporation, Govt.                         | 'Establishment of Trade Promotion Centre at                                                                            | 49.39                | 17.67                | 9.00 (1 st instal) |
| 10(ii)   |                |                                                                           | Minto Hall, Bhopal',                                                                                                   |                      |                      | 8.67               |

|     |               | of M.P                                             | Madhya Pradesh                                                                                                      |       |       | (2 nd instal)                          |
|-----|---------------|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-------|-------|----------------------------------------|
| 11. |               | M.P. Audyogik Kendra Vikas Nigam (Indore), Limited | establishment of Cold Chain at Pithampur, SEZ Phase II, Madhya Pradesh                                              | 32.16 | 16.08 | 8.04.                                  |
|     |               |                                                    | TOTAL (Madhya Pradesh)                                                                                              |       |       | 25.71                                  |
| 12. | Uttar Pradesh | Noida SEZ Authority                                | Establishment of Solid Waste Management System at Noida SEZ, Uttar Pradesh                                          | 4.25  | 2.13  | 1.07                                   |
|     |               |                                                    | TOTAL (Uttar Pradesh)                                                                                               |       |       | 1.07                                   |
| 13  | Maharashtra   | Export Inspection Council                          | Establishment the facility for analysis of origin and authenticity of various food products, Mumbai                 | 8.10  | 3.04  | 1.52                                   |
|     |               |                                                    | TOTAL (Maharashtra)                                                                                                 |       |       | 1.52                                   |
| 14. | Tripura       | Tripura Industrial Development Corporation Ltd.    | Upgradation of Infrastructure at LCS Muhurighat, Belonia, South Tripura                                             | 16.85 | 12.29 | 6.15                                   |
|     |               |                                                    | TOTAL (Tripura)                                                                                                     |       |       | 6.15                                   |
| 15. | West Bengal   | Land Ports Authority of India                      | Development of Integrated Check Post Petrapole: Proposal for construction of additional truck parking', West Bengal | 32.24 | 13.66 | 4.27 (1 st tranche of 1 st instalment) |
|     |               |                                                    | TOTAL (West Bengal)                                                                                                 |       |       | 4.27                                   |
|     |               |                                                    | TOTAL (FY 2017-18)                                                                                                  |       |       | Rs. 80 Cr.                             |

## Project approved under TIES during FY 2018-19 (as on 11.02.2019)

## Annexure-II

(Amt. in Rs. Crore)

| S. No.   | State/UT       | Name of Agency                                    | Name of Project                                                                                                         | Total Project Cost   | TIES fund approved   | Amount released/ Sanctioned            |
|----------|----------------|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|----------------------|----------------------|----------------------------------------|
| 1.       | West Bengal    | Land Ports Authority of India                     | Development of Integrated Check Post Petrapole: Proposal for construction of additional truck parking',West Bengal      | 32.24                | 13.66                | 2.56 (2 nd tranche of 1 st instalment) |
|          |                |                                                   | TOTAL (West Bengal)                                                                                                     |                      |                      | 2.56                                   |
| 2.       | Andhra Pradesh | Andhra Pradesh Med tech Zone Ltd (AMTZ)           | Common Scientific Facilities in AMTZ, Andhra Pradesh                                                                    | 168.87               | 40.00                | 9.0 (2 nd instalment) 9.0 (3 rd        |
|          |                |                                                   | TOTAL (Andhra Pradesh)                                                                                                  |                      |                      | 18.00                                  |
| 3.       | Tamil Nadu     | Madras EPZ SEZ                                    | Revamping of 1 MLD Sewerage Treatment Plant (STP) at Madras EPZ SEZ                                                     | 2.81                 | 1.25                 | 0.63                                   |
| 4.       | Tamil Nadu     | Madras EPZ SEZ                                    | Construction of 2.5 MLD Sewerage Treatment Plant (STP) at Madras EPZ SEZ                                                | 11.63                | 5.17                 | 2.59                                   |
| 5.       | Tamil Nadu     | Council for Leather Exports                       | Upgradation of Ranitec CETP project, Tamil Nadu                                                                         | 17.73                | 4.43                 | 4.43                                   |
| 6.       | Tamil Nadu     | ARSTPS- CIPET                                     | Common Facilities Centre for Design, Prototype & Tool Room for Automobile, Aerospace and Engineering Clusters', Chennai | 32.00                | 16.00                | 8.00                                   |
|          |                |                                                   | TOTAL (Tamil Nadu)                                                                                                      |                      |                      | 15.65                                  |
| 7.       | Kerala         | Cochin SEZ                                        | Construction of SDF Building at Cochin SEZ, Kerala                                                                      | 61.63                | 20.00                | 6.50 (2 nd instal)                     |
|          |                |                                                   | TOTAL (Kerala)                                                                                                          |                      |                      | 6.50                                   |
| 8.       | Delhi          | CSIR-NPL                                          | Production of Certified Reference Materials - Bharatiya Nirdeshak Dravya (BND), Delhi                                   | 32.55                | 16.27                | 8.00                                   |
|          |                |                                                   | TOTAL (Delhi)                                                                                                           |                      |                      | 8.00                                   |
| 9.       | Manipur        | MANIDCO, Govt. of Manipur                         | Establishment of Main Exhibition Building (Phase II) at Trade cum Permanent Exhibition Centre, Imphal , Manipur         | 15.86                | 11.26                | 5.63                                   |
|          |                |                                                   | TOTAL (Manipur)                                                                                                         |                      |                      | 5.63                                   |
| 10.      | Rajasthan      | Gems & Jewellery Export Promotion Council (GJEPC) | Establishing Advance Testing Facilities for Gemstones, Pearls and Diamonds in Jaipur                                    | 5.44                 | 2.72                 | 2.72                                   |
| 11.      |                | RSIC, Govt. of Rajasthan                          | Upgradation/Modernization of Air Cargo Complex, Jaipur                                                                  | 0.6962               | 0.3481               | 0.3481                                 |
|          |                |                                                   | TOTAL (Rajasthan)                                                                                                       |                      |                      | 3.0681                                 |
| 12.      | Chandigarh     | CHIAL, Chandigarh                                 | Setting up of Centre for Perishable Cargo at Chandigarh International Airport                                           | 11.99                | 5.63                 | 2.81                                   |

|     |           |              | TOTAL (Chandigarh)                                                                                          |       |      | 2.81                   |
|-----|-----------|--------------|-------------------------------------------------------------------------------------------------------------|-------|------|------------------------|
| 13. | Karnataka | Coffee Board | Establishment of 'Laboratory Infrastructure for Coffee Quality & Export Certification, Bangalore, Karnataka | 11.40 | 5.70 | 2.85 (2 nd instalment) |
|     |           |              | TOTAL (Karnataka)                                                                                           |       |      | 2.85                   |
|     |           |              | PMA expenses                                                                                                |       |      | 0.767                  |
|     |           |              | TOTAL (FY 2018-19 till date)                                                                                |       |      | Rs. 65.8351 cr.        |

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