Aid To Be Linked To States & #8217; Exports

The commerce department has decided to link central assistance for exports to a state's quantum of exports and growth rate from the current fiscal itself.

A 50-50 weightage will be given to the exports level and the growth rate while sanctioning the assistance, a senior commerce department official told Business Standard.

Sources said the Centre would provide the entire fund to a state without allocating it to particular schemes. A committee headed by the state chief secretary will then allocate funds to various schemes.

The details of the new assistance plan will be chalked out at a meeting with finance ministry officials over the next few weeks.

Officials said the move had been initiated to increase the state governments' participation in increasing India's exports and also to curb wastage of funds.

Senior officials in the ministry said the objective of the exercise was to make the state governments draw out their own plans for export promotion.