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Centre revises guidelines for MAI Scheme to help export promotion
Our Bureau, New Delhi | Monday, February 2, 2004, 08:00 Hrs  [IST]

The central government has revised the guidelines for the Market Access Initiative (MAI) Scheme of the Department of Commerce to enhance its scope as a catalyst for the country's export promotion programmes. As per the revised scheme, more thrust would be given for intensive publicity campaigns for identified product/products in select markets for creating a brand identity for Indian products in international markets. The broad guideline prepared by the department allows 50 per cent assistance for publicity campaigns for the first two years in a particular market subject to a ceiling of Rs.50 lakh per year/per market. The specifics of the type of campaigns that can be considered for funding under MAI scheme is being worked out, it is learnt.

Partial reimbursement of the product registration charges incurred abroad for pharmaceutical and biotechnology items is the most attractive addition for the drug industry. Under the scheme, assistance is to be provided on reimbursement basis for registration charges paid by an Indian export of pharmaceuticals or biotechnology products. The exporter has to send the request through the concerned export promotion council (Chemexcil) attaching a certificate from the Indian Mission concerned certifying the amount paid towards registration charges. Preference is given for small and medium scale entrepreneurs. The level of assistance under the scheme is 50 per cent of the registration charge subject to a ceiling of Rs.5 lakh for each registration. An exporter can apply for five registrations in a year and the total ceiling for each exporter is Rs.25 lakh per year. The department is in the process of fine tuning the application formats and necessary details that need to be followed/furnished for availing the benefits.

The revised guideline has provision to provide financial assistance to any project/study which the Empowered Committee (EC) in its deliberation feels would further the objectives of MAI scheme. Though the government has said that the assistance would be decided by the EC and the assistance level would be restricted to 50 per cent of the project cost "subject to maximum of Rs.50 lakh in each case", the clause is yet to be finalized.

As per MAI Scheme, Rs.1 crore per year has been earmarked for WTO related studies. Such studies will receive 100 per cent assistance from the department, but has to be undertaken only on the recommendation of the committee constituted in the Department of Commerce for the purpose. Industrial clusters can apply for funds through respective export promotion councils (EPC) for activities such as market study, participation in trade fairs, opening of warehouse and showroom, display in international stores and publicity.

Selected exporters/EPCs/Trade Promotion Organisations would be assisted in modernizing and upgrading their products as per the needs of the specific markets. This would be considered as a separate proposal or as a component of the approved project under the scheme for the assistance.

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