Major changes in export marketing and infrastructure schemes

New Delhi, May 8 (UNI) Government has introduced major changes in the rules governing the existing market and infrastructure assistance schemes for the exporters, bringing focus to the backward states like Bihar,Uttaranchal, Himachal Pradesh, Orissa and Chhatisgarh.

'' Two-third of the government funded schemes like Assistance to States for Infrastructure Development (ASIDE), Market Development Assistance (MDA) and Market Access Initiative (MAI) goes to five states of Gujarat, Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu'', Minister of State for Commerce Jairam Ramesh told newspersons here today.

This is because the incentive schemes are based on the export performance and these states are ahead of others in terms of the export figures.

After a meeting with all the 23 Export Promotion Councils, the Commerce Ministry has decided that the criteria for the incentive schemes would be changed from the past performance to that of employment generation.

The Commerce Ministry is not only impressing upon the backward states to come forward with viable projects for availing benefits of the schemes, but would also help them. Bihar is likely to come up with a plan for setting up cold storages in the Muzzarfur areas for promoting 'leechies'. Likewise, Uttaranchal would be given help for setting up a Rs 15-crore facility for testing and standardisation of the aromatic plants.

Besides, between Rs 50 crore and Rs 75 crore would be released for promoting the Agri Export Zones, the scheme which has so far remained a non-starter.

As regards kickstarting SAFTA (South Asia Free Trade Agreement), India would invest Rs 15 crore to Rs 20 crore in improving infrastructure at Petropol (for Bangladesh), Rexaul (for Nepal) and Atari (for Pakistan).

Mr Ramesh said the success of the SAFTA would depend on Pakistan doing away with the Positive List and restrictions on the movement of the border goods.

UNI PC RA RS1846