1.
Introduction
1.1 Exports have come to be regarded as an engine of economic growth
in the wake of liberalization and structural reforms in the economy.
A sustained growth in exports is, however, not possible in the absence
of proper and adequate infrastructure as adequate and reliable infrastructure
is essential to facilitate unhindered production, cut down the cost
of production and make our exports internationally competitive.
1.2
While the responsibility for promotion of exports and creating the
necessary specialised infrastructure has largely been undertaken
by the central Government so far, it is increasingly felt that the
States have to play an equally important role in this endeavour.
The role of the State Governments is critical from the point of
view of boosting production of exportable surplus, providing the
infrastructural facilities such as land, power, water, roads, connectivity,
pollution control measures and a conducive regulatory environment
for production of goods and services. It is, therefore, felt that
coordinated efforts by the Central Government in cooperation with
the State Governments are necessary for development of infrastructure
for exports promotion.
1.3
Department of commerce currently implements, through its agencies,
schemes for promotion and facilitation of export commodities and
creation of infrastructure attendant thereto. The Export Promotion
Industrial Parks Scheme (EPIP), Export Promotion Zones scheme (EPZ),
and the Critical Infrastructure Balancing Scheme (CIB) are also
implemented to help create infrastructure for exports in specific
locations and to met specific objectives. However, the general needs
of infrastructure improvement for exports are not met by such schemes.
With a view, therefore, to optimizing the utilization of resources
and to achieve the objectives of export growth through a coordinated
effort of the Central Government and the States this scheme has
been drawn up. The features of the Scheme and the Guidelines for
consideration of proposals in respect of the Scheme are given below.
2.
Objective
2.1
The objective of the scheme is to involve the states in the export
effort by providing assistance to the State Governments for creating
appropriate infrastructure for the development and growth of exports.
2.2
States do not perceive direct gains from the growth in exports from
the State. Moreover, the States do not often have adequate resources
to participate in funding of infrastructure for exports. The proposed
scheme, therefore, intends to establish a mechanism for seeking
the involvement of the State Governments in such efforts through
assistance linked to export performance.
3.
Scheme
3.1. The scheme shall provide an outlay for development of export
infrastructure which will be distributed to the States according
to a pre-defined criteria. The existing EPIP, EPZ and CIB schemes
shall be merged with the new scheme. The scheme for Export Development
Fund (EDF) for the North East and Sikkim (implemented since 2000-2001)
shall also stand merged with the new scheme. After the merger of
the schemes in respect of EPIP,EPZ,CIB and EDF for NER and Sikkim
with the new scheme, the ongoing projects under the schemes shall
be funded by the States from the resources provided under the new
scheme.
4. Approved purposes for the scheme
4.1
The activities aimed at development of infrastructure for exports
can be funded from the scheme provided such activities have an overwhelming
export content and their linkage with exports is fully established.
The specific purposes for which the funds allocated under the Scheme
can be sanctioned and utilised are as follows:
i. Creation of new Export Promotion Industrial Parks/Zones (including
Special Economic Zones (SEZs)/Agri-Business Zones) and augmenting
facilities in the existing ones.
ii. Setting up of electronic and other related infrastructure in
export conclave.
iii. Equity participation in infrastructure projects including the
setting up of SEZs.
iv. Meeting requirements of capital outlay of EPIPs/EPZs/SEZs
v. Development of complementary infrastructure such as roads connecting
the production centres with the ports, setting up of Inland Container
Depots and Container Freight Stations,
vi. stabilising power supply through additional transformers and
islanding of export production centres etc.
vii. Development of minor ports and jetties of a particular specification
to serve export purpose.
viii. Assistance for setting up common effluent treatment facilities
for which separate guidelines will be issued.
ix. Projects of national and regional importance
x. Activities permitted as per EDF in relation to North East and
Sikkim
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