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Chris John

Expert

Published on: Sep 17, 2026

Trade Infrastructure for Export Scheme

Following the cessation of the Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme in 2015, there was a concerted call from State Governments for the establishment of robust export infrastructure. The Central Government's support acts as a catalyst, motivating states to channel increased funds toward developing necessary infrastructure. Initiated in March 2017, the Trade Infrastructure for Export Scheme (TIES) enhances export competitiveness by filling critical infrastructure gaps across the nation.

Scheme Objective

Adequate infrastructure is pivotal to a country's ability to efficiently produce and transport goods, significantly reducing trade costs. Aligned with the latest Foreign Trade Policy goal of growing exports to $900 billion by 2020, TIES focuses on strengthening India's role in World Trade. The scheme includes the creation of export-focused infrastructure and encourages states to tackle export-oriented projects, addressing quality and certification concerns to enhance export competitiveness.

Scope of the Scheme

The scheme provides financial assistance for the establishment and upgrade of infrastructure with significant export linkages. These include Border Haats, Land Customs Stations, quality testing labs, trade promotion centers, cold chains, and export warehousing facilities. Projects also include enhancing export logistics through last and first-mile connectivity.

Studies related to identifying sector-specific infrastructure gaps and asset mapping may also receive funding. However, the scheme excludes projects covered under specific sector schemes like textiles and IT, general infrastructure projects like highways, and those without established export linkages.

Eligible Agencies

Eligible for financial support under TIES, these agencies will act as Implementing Agencies:

  1. Central Government Agencies, including Export Promotion Councils, SEZ Authorities, Commodity Boards, and Apex Trade Bodies recognized under India's EXIM policy.
  2. State Government-owned agencies.
  3. Joint Ventures involving Government agencies, provided a significant stake is held by the Government. PPP projects are also eligible.

These agencies must own and be responsible for the operations and maintenance of the facilities created under TIES. Exploring partnerships among these stakeholders is anticipated to enhance project implementation efficiency and effectiveness.

Documents Required

To secure benefits under TIES, submission to the Empowered Committee requires:

  1. An Executive Summary in the prescribed format.
  2. Designation of Project Head and signatory for the Utilisation Certificate.
  3. Detailed Project Report (DPR).
  4. Approval from the appropriate State's Export Commissioner.
  5. Proof of financial closure for the Implementing Agency.
  6. Undertakings by the Implementation Agency's head.
  7. Two years' annual reports and audited financial statements.
  8. Details of any financial aid from the Department of Commerce in prior years, including ongoing project details under ASIDE/TIES.

The Extent of Financial Assistance

Per Annex-A, the Committee decides the extent of financial assistance, providing it in the form of grant-in-aid:

  1. Central Government aid can cover up to 50% of the project capital or may increase to 80% in Northern and Himalayan states, including Jammu and Kashmir.
  2. Grants usually cap at INR 20 Crores per project.
  3. Cost of land is excluded from the project’s cost calculation under TIES.
  4. Priority goes to projects with substantial stakeholder contributions and bank financing.
  5. Recurrent or establishment costs aren't funded under the Scheme.
  6. Extending funding for studies on infrastructure gaps and asset mapping receives finalization by the Empowered Committee.

Submission of Project Proposal

Proposals must be carefully crafted for scheme benefits, detailing the infrastructure gaps it aims to bridge. Successful proposals demonstrate:

  1. A robust export linkage using credible modalities.
  2. Resolution of infrastructure gaps that, if unresolved, impact export competitiveness.
  3. Defined measurable outcomes for project evaluation.
  4. Clearly articulated and certified Project Head resolves.
  5. A concise Executive Summary and detailed project report.
  6. A clear plan for monitoring and proposed timelines, including financial closure.
  7. Comprehensive details on Operations and Maintenance (O&M) of planned infrastructure.
  8. Complete documentation ready for submission.

Release of Funds

During disbursement, the implementing agency must have reached financial closure and established a Project Monitoring Committee (PMC). Fund release proceeds in these steps:

  1. Funds are disbursed in multiple installments to the implementing agency for approved projects.
  2. A bond regarding fund usage is required from the agency.
  3. Submission of a pre-receipt bill and a certificate of honest practice.
  4. Fund management responsibility lies with the agency's Head of Accounts.
  5. First installment follows Empowered Committee approval; subsequent installments are based on their recommendation.
  6. Utilisation Certificate (UC) submission is mandated for continued funding.
  7. Final installments depend on the U.C., PMC report, and proof of agency's stake in funds.
  8. Physical and financial progress certification from the Project Monitoring Agency is necessary.

Administrative Expenses

The Implementing Agency funds all administrative expenses related to Scheme implementation from their resources, prohibiting the use of Scheme funds for this purpose.

Assets

Upon project completion, the implementing agency will own assets created with Government aid. These assets must not be encumbered or misused post-procedure, necessitating maintenance of a permanent and semi-permanent asset register as per Form GFR 19. If a project is canceled, all assets and unutilized funds must return to the Government.

Operation and Maintenance of Assets

The implementing agency ensures assets under their purview are operational, maintained, and equally accessible for exporter use under a pay-and-use basis, maintaining fairness and functionality within established facilities.

Recall of the Central Grant

The Empowered Committee can reclaim the central grant with penal charges for unsatisfactory project execution, including low quality or incomplete realization of project objectives.

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Frequently Asked Questions

Common questions about Trade Infrastructure for Export Scheme in India.

The Trade Infrastructure for Export Scheme is a scheme launched by the Government of India in March 2017 to enhance export competitiveness by bridging gaps in export infrastructure and creating export-focused infrastructure. Its objective is to induce states to take up more export-oriented projects, including those required for addressing quality and certification concerns.
The scheme provides financial assistance for setting up and upgrading infrastructural projects with overwhelming export linkages, such as Border Haats, Land Customs Stations, quality testing and certification labs, trade promotion centers, cold chains, dry ports, export warehousing and packaging, Special Economic Zones (SEZs), and ports/airports cargo terminuses, as well as related last and first-mile connectivity projects.
The eligible agencies for financial support under this scheme include Central Government agencies (like Export Promotion Councils, SEZ Authorities, Commodity Boards, and Apex Trade Bodies), agencies owned by State Governments, joint ventures involving government agencies (with significant stakeholding), and Public-Private Partnership (PPP) projects.
The required documents include an executive summary in a prescribed format, Detailed Project Report (DPR), recommendation of the Export Commissioner of the respective state, proof of financial closure, undertakings by the head of the implementing agency, annual reports and audited statements of accounts, and details of any past or ongoing projects under similar schemes.
The Central Government assistance is in the form of a grant-in-aid, generally less than the equity provided by the implementing agency or 50% of the total project capital cost (up to 80% for projects in North Eastern states, Himalayan states, and Jammu & Kashmir), subject to a limit of INR 20 Crores per project.
The funds are released in two or more equal installments, with the first installment released after project approval and subsequent installments based on utilization certificates, project monitoring committee reports, and proof of matching contribution by the implementing agency.
The assets created by the implementing agency under the scheme are owned by the agency itself. However, the assets cannot be encumbered, disposed of, or utilized for purposes other than those for which the funds were granted.
The implementing agency is responsible for the operations and maintenance of the assets created under the scheme, including collecting user charges from members and ensuring non-discriminatory services to exporters on a pay and use basis.
Yes, the Empowered Committee has the right to recall the Central grant along with applicable penal interest in case of unsatisfactory use of the grant, compromise with the promised quality, or incomplete implementation of the proposed project.
The implementing agency must prepare a detailed project proposal, including an executive summary, Detailed Project Report (DPR), export linkage justification, measurable outcomes, project head and authority details, financial and technical aspects, timelines, monitoring mechanism, and operations and maintenance plan, along with required documents.