The commerce ministry has received five proposals from states like Karnataka and Andhra Pradesh under its new scheme to develop infrastructure for promoting exports, a senior official said.
Commerce and Industry Minister Nirmala Sitharaman had in March launched Trade Infrastructure for Export Scheme (TIES), extending financial assistance to bridge the infrastructure gap and provide forward and backward linkages to various units.
According to the official, the projects have been given in-principal approval.
The five implementing agencies are -- Karnataka Fisheries Development Corporation Ltd (KFDC); Visvesvaraya Trade Promotion Centre (VTPC), Bengaluru; Cochin SEZ; Airport Authority of India (AAI) and Andhra Pradesh Med Tech Zone (AMTZ).
KFDC Managing Director V K Shetty said the corporation will modernise infrastructure facility for marine exports at Tadadi, Kumta Taluk, Karnataka.
"We have got the approval from the union commerce ministry and state government. We will shortly start the project. We will be establishing a modern marine processing and export unit. We will be investing Rs 5 crore and the centre will is also providing assistance of Rs 5 crore," Shetty told PTI.
Similarly, VTPC has submitted a proposal to set up coastal cashew research and development foundation in Kumta district of Karnataka.
While Cochin SEZ have planned to construct a standard design factory building, AAI would set up an integrated cargo terminal at Imphal International Airport.
AMTZ has submitted a plan to set up an electrical safety facility, biomaterials testing facility, 3D design and rapid prototyping facility and a centre for Gamma irradiation.
Unlike Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme, which was funded by the Centre, the cost of projects under TIES are equally shared between the Centre and the states.
The central and state agencies, including Export Promotion Councils, Commodities Boards, SEZ authorities and apex trade bodies are eligible for financial support under the scheme.
The Central government funding will be in the form of grant—in—aid, normally not more than the equity being put in by the implementing agency or 50 per cent of the total equity in the project.
The proposals of the implementing agencies for funding is being considered by an empowered committee, chaired by the commerce secretary.
The scheme helps involve states in promoting export activities in the country.
Source: moneycontrol.com