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Concessions to Exporters – A report

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 fulfillmentof 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

ArunanchalPradesh

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

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. D.Purandeswari in Lok Sabha today.

Tags: AnnexationDepartment of CommerceDomestic Tariff AreaGovernmentGovernment of IndiaInternational tradeNFEUnited States Department of Commerce

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