New scheme for funding trade infra launched

TIES seeks to bridge infrastructure gap, provide forward & backward linkages to units part of trade

In order to plug gaps in export process, the government on Wednesday launched the Trade Infrastructure for Exports Scheme (TIES), which aims to fund crucial infrastructure focused on boosting exports.

Announced in the Budget, the scheme is essentially a revision of the older Assistance to States for Infrastructure Development of Exports (ASIDE) scheme. However, TIES will incorporate key features such as a monitoring mechanism, Commerce and Industry Minister Nirmala Sitharaman said.

TIES seeks to bridge the infrastructure gap and provide forward and backward linkages to units engaged in trade activities as well as address quality and certification measures. To be implemented from April 1, the scheme will run till 2019-20. It would have a budgetary allocation of Rs 600 crore for three years with an annual outlay of Rs 200 crore. Five per cent of the grant approved would be used for appraisal, review and monitoring.

Under the previous ASIDE scheme, the Centre funded the projects and worked with state governments to identify specific weak points in the trade infrastructure.

The scheme was scrapped in 2015-16 when in line with the 14th Finance Commission’s recommendations; states’ share in the Centre’s net tax revenues was increased to 42 per cent from 32 per cent.

This, however, did not address the issue of those projects which were in limbo, having been initiated under the old scheme. But on Wednesday, Sitharaman made it clear that older projects would not be under the purview of the scheme.