March 20, 2002

'16'

SCHEME FOR EXPORT-LINKED ASSISTANCE TO STATES FORMULATED

    The government in the Department of Commerce has recently formulated and notified a new scheme called ‘ASIDE’ (Assistance to States for Infrastructure Development and Exports). The scheme proposes to provide funds to State Governments/Union Territories for export promotion. Under the scheme, 20% of the total fund will remain with the Union Government and 80% of the funds will be given to State Governments/Union Territories. Out of this 80%, 50% will be given to State Governments/Union Territories on the basis of their export performance and 50% for their export growth. The ASIDE Scheme will encourage the State Governments/Union Territories to promote exports by creating appropriate export infrastructure and by providing facilitation for export promotion.

    The funds are to be allocated to the State Governments on the basis of a laid down criteria to enable them to take up projects for development of complementary infrastructure for exports, creation of new Export Promotion Industrial Parks and augmentation of facilities in the existing ones, development of minor ports, setting up of common facility centres for trade, for enhancement having regard to the price-rise and other relevant considerations A minimum of 10% of the Scheme outlay will be reserved for expenditure in the North -Eastern Region and Sikkim.

    The schemes in respect of Export Promotion Industrial Park, Export Promotion Zone, Critical Infrastructure Balance Scheme and Export Development Fund for North- Eastern Region and Sikkim will merge with the new scheme.

    80% of the funds (State component) shall be earmarked for allocation to the States on the basis of the approved criteria The balance 20% (central component), and amounts equivalent to unutilised portion of the funds allocated to the States in the past year(s), if any, shall be retained at the central level for the specified purposes and, especially the requirements of capital outlays of EPZs, activities relating to promotion of exports from the NER as per the existing guidelines of EDF, requirement of backward States needing specific attention and any other activity considered important by the Central Government from the regional or the national perspective.

    The State Component will be allocated to the States in two tranches of 50% each. The inter-se allocation of the first tranche of 50% to the States shall be made on the basis of export performance. This shall be calculated on the basis of the share of the State in the total exports. The second tranche of the remaining 50% will be allocated inter-se on the basis of share of the States in the weighted average of the growth rate of exports over the previous year.

    There shall be a State Level Export Promotion Committee (SLEPC) headed by the Chief Secretary of the State and consisting of the Secretaries of concerned Departments at the State level. Under the Scheme, funds for the approved projects may be sanctioned to, inter alia,