Concessions to Exporters

12-8-2013

Contents

The details of amount released to each of the States//Union Territories under Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme during last three years and the current year are enclosed as Annexure-I.

Under the ASIDE scheme, a major portion of the fund allocation is provided to all the States / UTs on the basis of a formula of last 4 years’ export plus the population of the State. Funds are not released project-wise to State and it is left to the State Level Export Promotion Committee (SLEPC) Chaired by the Chief Secretary of the State to scrutinise and approve export linked projects out of this allocation given by Department of Commerce. A small proportion of the fund is earmarked for Central Government agencies undertaking export infrastructure projects in the States / UTs. A couple of proposals, complete in all respects with land documentation and duly vetted Detailed Projects Reports, are pending for consideration by the Department of Commerce subject to availability of funds (Annexure-II).

The incentives provided under the EOU Scheme include duty free sourcing of inputs including capital goods, procurement of goods from DTA without payment of Central Excise Duty, reimbursement of Central Sales Tax, DTA sale (including advance DTA Sale) upto 50% of F.O.B. value of physical exports permitted on payment of concessional rate of duty. The income of EOUs was exempted from payment of Income Tax upto 31.3.2011. The State-wise break up of number of functional EOUs, as on 31.3.2011 are enclosed as Annexure-III.

The Units are required to achieve positive Net Foreign Exchange (NFE) during a five years period and those Units who do not achieve the positive NFE have to pay/refund the tax benefits availed by them in addition to penal action which may be taken against them Government has taken steps to review the functioning of EOUs and ensuring that the export targets are achieved. These include joint monitoring of the performance of the EOUs by the Ministry of Commerce (represented by the Development Commissioner) and the Ministry of Finance (represented by the Commissioner, Central Excise, Customs & Service Tax). There is statutory framework to monitor and prevent misuse of the EOU scheme through legal provisions made under the provisions of Foreign Trade (Development & Regulation) Act 1992, Customs Act 1962, Central Excise Act 1944 and Rules made thereunder. In the event of any EOU found violating any norm such as non/short fulfillment of export obligation, excess and inadmissible imports irregular and unauthorized DTA sales, excess reimbursement of CST, drawback on DTA sales, non-realization of export proceeds, irregular de-bonding, non receipt of re-warehousing certificates, etc. duty exemptions are withdrawn and necessary recoveries are made after following due process of law in addition to imposition of penalties etc. as per provisions of Foreign Trade (Development & Regulation) Act, 1992, Customs Act 1962, Central Excise Act 1944 and Rules made there under.

Annexure-I referred to in reply to Lok Sabha Provisional Starred Question No. 1002 for 12.08.2013

State Component (Rs. in crores)

S.No.	Name of the Stats/UT	Released 2010-11	Released 2011-12	Released 2012-13	Released 2013-14
1	Andaman & Nocobar	0.00	0.00	0.00	0.00
2	Andhra Pradesh	31.21475	40.82	36.44	19.545
3	Bihar	0.00	0.00	3.915	0.00
4	Chandigarh	0.00	0.00	0.00	0.00
5	Chhattisgarh	5.22	6.66	5.84	0.00
6	Dadar & Nagar Haveli	0.00	0.00	0.00	0.00
7	Daman & Diu	2.42	0.00	0.00	0.00
8	Delhi	0.00	0.00	0.00	0.00
9	Goa	5.41	7.13	6.12	2.535
10	Gujarat	59.57	55.28	64.00	32.00
11	Haryana	34.68	20.85	21.10	10.63
12	Himachal Pradesh	5.70	5.10	5.27	1.095
13	Jammu & Kashmir	5.51	0.00	0.00	0.00
14	Jharkhand	0	0.00	3.145	0.00
15	Karnataka	70.34475	52.39	45.77	19.28
16	Kerala	9.26	18.52	16.62	10.47
17	Lakshadweep	1.02	0.00	0.00	0.00
18	Madhya Pradesh	14.06	22.16	19.40	8.505
19	Maharashtra	81.22	68.00	64.00	32.00
20	Orissa	14.14	17.90	18.00	7.30
21	Pondichery	0.00	0.00	0.00	0.00
22	Punjab	12.73	16.26	14.28	7.10
23	Rajasthan	29.3907	24.42	21.58	10.70
24	Tamil Nadu	49.10	67.27	59.77	30.33
25	Uttar Pradesh	20.99	34.13	18.95	0.00
26	Uttranachal	5.51	6.02	2.54	0.00
27	West Bengal	29.89475	35.91	31.530	14.195
	Total	487.38225	498.82	458.27	205.685
North East Region
1	Arunanchal Pradesh	1.38	0.00	0.00	0.00
2	Assam	13.83	27.66	29.41	24.42
3	Manipur	2.27	4.54	4.56	2.00
4	Meghalaya	9.17	9.44	11.61	2.75
5	Mizoram	3.56	3.50	4.30	0.00
6	Nagaland	2.20	3.63	3.63	1.815
7	Sikkim	2.20	2.69	2.70	0.70
8	Tripura	8.01	10.04	10.25	2.54
	Total	42.62	61.50	66.46	34.225
	Grand Total	530.00	560.32	524.73	239.91

Central Component

S.No.	Name of the Stats/UT	Released 2010-11	Released 2011-12	Released 2012-13	Released 2013-14
1.	Manipur	19.54
2.	Meghalaya	0.79		4.50	4.56
3.	Tripura			5.10
4.	West Bengal	2.71
5.	Gujarat				8.50
6.	Himachal Pradesh				6.50
7.	Madhya Pradesh	1.50	2.50
8.	Punjab				5.00
9.	Sikkim	3.95	1.96	9.06

Annexure-II

Central Component

Sl.No.

State

Name of the Project

Assistance sought under ASIDE

Reasons for pendency

Tamil Nadu (Chennai Port Trust)

(a) Construction of EXIM godown in

CPT

(b) Procurement of 15,25 and 30T capacity diesel fork lift trucks in CPT

14.50

14.35

To be considered by the Empowered Committee after Additional Secretary, DoC to visits Chennai Port and makes a report based on need of exporters and financial strengths of CPT.

(Rs. in crores)

Annexure-III

The State-wise break up of number of functional EOUs, as on 31.3.2011 is as under:-

States / UTs	Units	States / UTs	Units
Andhra Pradesh	258	Tamil Nadu	427
Chhattisgarh	1	Pondicherry	26
West Bengal	63	A&N Island	4
Bihar	1	Maharashtra	395
Jharkhand	2	Goa, Daman & Diu	61
Orissa	20	Dadra & Nagar Haveli	23
Assam	-	Delhi	48
Tripura	-	Haryana	95
Mizoram	-	Uttar Pradesh	92
Manipur	-	Punjab	21
Meghalaya	1	Rajasthan	73
Nagaland	-	Himachal Pradesh	5
Arunachal Pradesh	-	Jammu & Kashmir	3
Sikkim	-	Chandigarh	3
Gujarat	266	Uttarakhand	3
Kerala	77	Madhya Pradesh	15
Karnataka	463	Total	2446