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PARLIAMENT OF INDIA
RAJYA SABHA
DEPARTMENT RELATED PARLIAMENTARY STANDING COMMITTEE
ON COMMERCE
Rajya Sabha Secretariat, New Delhi
September, 2021/ Bhadra, 1943 (Saka)
REPORT NO.
164
ONE HUNDRED AND SIXTY FOURTH REPORT
Augmenting Infrastructure Facilities to Boost Exports
(Presented to Hon'ble Chairman, Rajya Sabha on 11th
September, 2021)
(Forwarded to Hon'ble Speaker, Lok Sabha on 13th
September, 2021)
PARLIAMENT OF INDIA
RAJYA SABHA
DEPARTMENT RELATED PARLIAMENTARY STANDING
COMMITTEE ON COMMERCE
ONE HUNDRED AND SIXTY FOURTH REPORT
Augmenting Infrastructure Facilities to Boost Exports
(Presented to Hon'ble Chairman, Rajya Sabha on 11th
September, 2021)
(Forwarded to Hon'ble Speaker, Lok Sabha on 13th
September, 2021)
सत्यमेव जयते
Rajya Sabha Secretariat, New Delhi
September, 2021/ Bhadra, 1943 (Saka)
CONTENTS
PAGES
1. COMPOSITION OF THE COMMITTEE (i)
2. INTRODUCTION
(ii)
3. ACRONYMS
(iii)-(xii)
4.
REPORT
1-107
5. RECOMMENDATIONS/ OBSERVATIONS - AT A GLANCE
108-147
6.
7.
MINUTES
ANNEXURES/APPENDICES
148-185
186-225
i
COMPOSITION OF THE COMMITTEE (Constituted w.e.f. 13
th September, 2020)
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Priyanka Chaturvedi
3. Shrimati Roopa Ganguly
4. Shri Sushil Kumar Gupta
# 5. Shri Mallikarjun Kharge
6. Shri Jugalsinh Mathurji Lokhandwala
7. Shri Om Prakash Mathur
8. Shrimati Mausam Noor
9. Shri Deepak Prakash
$10. Shri Vayalar Ravi
&11. Shri John Brittas
LOK SABHA
@ 12. Shrimati Sumalatha Ambareesh
13. Shri Prasun Banerjee
14. Shri Raju Bista
15. Shri Rajkumar Chahar
16. Shri Rameshbhai Lavjibhai Dhaduk
17. Shri Arvind Dharmapuri
18. Shri Manoj Kishorbhai Kotak
19. Shri Ajay Kumar Mandal
20. Shrimati Manjulata Mandal
21. Shri Nakul K. Nath
22. Shri Hemant Patil
23. Shri Gautham Sigamani Pon
24. Dr. Manoj Rajoria
25. Shri Nama Nageswar Rao
26. Shri Ashok Kumar Rawat
27. Shri Magunta Sreenivasulu Reddy
28. Shri Prajwal Revanna
29. Shri Gowdar Mallikarjunappa Siddeshwara
30. Shri Kesineni Srinivas
*31. Shri Shantanu Thakur
32. Shri Mansukhbhai Dhanjibhai Vasava
SECRETARIAT
Shri S. Jason, Joint Secretary
Shri T.N. Pandey, Director
Smt. Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
Shri V. Summinlun, Assistant Committee Officer ______________________________________________________________________________________
# Resigned w.e.f. 18th March, 2021
$ Retired w.e.f. 21st April, 2021
& Nominated w.e.f. 14th June, 2021
@ Nominated to Committee on Information Technology w.e.f. 30th December, 2020.
* Inducted in Council of Ministers w.e.f. 7th July, 2021
ii
INTRODUCTION
I, the Chairman of the Department Related Parliamentary Standing
Committee on Commerce, having been authorised by the Committee, present
this One Hundred and Sixty Fourth Report of the Committee on 'Augmenting
Infrastructure Facilities to Boost Exports'.
2. The Committee selected the subject for detailed examination on
25th March, 2021 and the same was notified vide Parliamentary Bulletin
Part-II dated 26th
March, 2021. As a part of examination of the subject,
the Committee considered the subject in detail in its seven meetings wherein it
heard the views of Department of Commerce, Ministry of Commerce and
Industry; Ministry of Civil Aviation; Ministry of Road, Transport and
Highways; Ministry of Ports, Shipping and Waterways; Department for
Promotion of Industry and Internal Trade, Ministry of Commerce and Industry;
Federation of Indian Exports Organisation (FIEO); Railway Board; and PHD
Chamber of Commerce and Industry. The Committee also sought written inputs
from Department of Border Management, Ministry of Home Affairs and
Department of Revenue, Ministry of Finance through questionnaires sent to the
said Departments.
3. The Committee also undertook one study visit to Srinagar and Leh from
24th to 28
th August, 2021 on the subject and had interactions with various
stakeholders as well as representatives of the UT administrations of
Jammu & Kashmir, and Ladakh.
4. The Committee considered the draft Report and adopted the same at its
meeting held on 7th
September, 2021.
NEW DELHI;
7th
September, 2021
Bhadra 16, 1943 (Saka)
V. VIJAYASAI REDDY
Chairman,
Department Related Parliamentary
Standing Committee on Commerce
Rajya Sabha.
iii
ACRONYMS
AAI Airports Authority of India
AAICLAS AAI Cargo Logistics and Allied Services Company Limited
ACFI Air Cargo Forum India
AD Authorized Dealer
AERA Airports Economic Regulatory Authority
AI Artificial Intelligence
AKIC Amritsar Kolkata Industrial Corridor
ANPR Automatic Number Plate Recognition
APEDA Agricultural And Processed Food Products Export Development
Authority
API Application Programming Interface
ASIDE Assistance to States for Development of Export Infrastructure and
Allied Activities
AVSEC Aviation Security
BGF Border Guarding Force
BMIC Bengaluru Mumbai Industrial Corridor
BOT Build-Operate-Transfer
BRICS Brazil, Russia, India, China and South Africa
BRO Border Roads Organisation
BSM Buyer Seller Meet
CAGR Compounded Annual Growth Rate
CBIC Chennai Bengaluru Industrial Corridor
CCV Compulsory Compliance Verification
iv
CEU Coastal Employment Unit
CFSs Container Freight Stations
CIAL Cochin International Airport Limited
CONCOR Container Corporation of India
CRISIL Credit Rating Information Services of India Limited
CRTs Container Rail Terminals
CSLA Container Shipping Line Association
CST Central Sales Tax
CTOs Cargo Terminal Operators
DGCA Directorate General of Civil Aviation
DGCI&S Directorate General of Commercial Intelligence and Statistics
DGFT Directorate General of Foreign Trade
DGR Dangerous Goods Regulations
DIAL Delhi International Airport Limited
DMIC Delhi Mumbai Industrial Corridor
DNIC Delhi Nagpur Industrial Corridor
DPD Direct Port Delivery
DPE Direct Port Entry
DPIIT Department for Promotion of Industry and Internal Trade
DPR Detailed Project Report
DSIR Dholera Special Investment Region
DTA Domestic Tariff Area
EAP Externally Aided Project
v
e-BL Electronic Bill of Lading
eBRC Electronic Bank Realization Certificate
ECIC East Coast Industrial Corridor
EDFC Eastern Dedicated Freight Corridor
EDI Electronic Data Interchange
e-DO Electronic Delivery Order
EDPMS Export Data Processing and Monitoring System
EEFC Exchange Earners' Foreign Currency
EIA Export Inspection Agency
EIC Export Inspection Council
ELCIA Electronics City Industries Association
EMI Electromagnetic Interference
EOU Export Oriented Units
EPCs Export Promotion Councils
EPCG Export Promotion Capital Goods
e-RD Electronic Registration of Demand
eT-RR Electronic Transmission of Railway Receipt
EU European Union
EVFTA EU-Vietnam Free Trade Agreement
EXIM Export Import
FAC Fuel Adjustment Component
FBTS Full Body Truck Scanning System
FDA Food and Drug Administration
vi
FDI Foreign Direct Investment
FFFAI Federation of Freight Forwarders Association of India
FIEO Federation of Indian Export Organisations
FOIS Freight Operation Information System
FSSAI Food Safety and Standards Authority of India
FTAs Free Trade Agreements
FY Financial Year
GDP Gross Domestic Product
GST Goods and Services Tax
HBIC Hyderabad Bengaluru Industrial Corridor
HDNs High Density Networks
HNIC Hyderabad Nagpur Industrial Corridor
HSD High-Speed Diesel
HUMS Health and Usage Monitoring System
HUNs Highly Utilized Networks
HWIC Hyderabad Warangal Industrial Corridor
I3MS Integrated Mines and Minerals Management System
IATA International Air Transport Association
IBP Indo-Bangladesh Protocol
ICDs Inland Container Depots
ICEGATE Indian Customs Electronic Gateway
ICES Indian Customs EDI System
ICMS Integrated Cargo Management System
vii
ICPs Integrate Check Posts
IEBR Internal and Extra Budgetary Resources
IEC Importer-Exporter Code
IES Interest Equalization Scheme
IGST Integrated Goods and Services Tax
IICCL India International Convention and Exhibition Centre Limited
IIP Indian Institute of Packaging
IIT-GN Integrated Industrial Township –Greater Noida
IIT-VUL Integrated Industrial Township –Vikram Udyogpuri
IMLH-NC Integrated Multi-Modal Logistics Hub –Nangal Chaudhary
ITC Input Tax Credit
ITPO India Trade Promotion Organisation
IWT Inland Water Transport
JIMMS Jharkhand Integrated Mines and Mineral Management System
JKTPO Jammu & Kashmir Trade Promotion Organisation
JNCH Jawaharlal Nehru Custom House
JNPT Jawaharlal Nehru Port Trust
JV Joint Venture
KIAB Kempegowda International Airport, Bengaluru
KINFRA Kerala Industrial Infrastructure Development Corporation
KTPO Karnataka Trade Promotion Organisation
LC Letter of Credit
LCL Less than Container Load
viii
LCS Land Customs Station
LEO Let Export Order
LPAI Land Ports Authority of India
LPMS Land Port Management System
LSSC Leather Sector Skill Council
MAI Market Access Initiative
MBIU Mobile Bridge Inspection Unit
MCBs Miniature Circuit Breakers
MEIS Merchandise Exports from India Scheme
MIAL Mumbai International Airport Limited
MLA Member of Legislative Assembly
MMLPs Multi-Modal Logistics Parks
MoPSW Ministry of Ports, Shipping and Waterways
MoU Memorandum of Understanding
MP Member of Parliament
MPA Major Ports Authorities
MSME Micro, Small and Medium Enterprise
MT Million Tonnes
MTPA Million Tonnes Per Annum
NE North East
NGR Non-Government Rail
NH National Highway
NHAI National Highways Authority of India
ix
NHIDCL National Highways & Infrastructure Development Corporation
Limited
NHLML National Highways Logistics Management Limited
NID National Institute of Design
NITI National Institution for Transforming India
NSDC National Skill Development Corporation
NWs National Waterways
ODOP One District One Product
OEC Odisha Economic Corridor
OEMs Original Equipment Manufacturers
PCB Printed Circuit Board
PCR Ports Connectivity Road
PCS Port Community System
PGAs Partner Government Agencies
PHO Port Health Officer
PIWTT Protocol on Inland Water Transit and Trade
PLI Production Linked Incentive
PMC Project Monitoring Committee
PMKVY Pradhan Mantri Kaushal Vikas Yojana
POL Petroleum, Oil and Lubricant
PPP Public Private Partnership
PPP Purchasing Power Parity
PSU Public Sector Undertaking
PV Photovoltaic
x
PWD Public Works Department
QCL Quality Control Laboratory
QE Quick Estimates
QELs Quality Evaluation Laboratories
QP-NOSs Qualification Packs and National Occupational Standards
RA Registration Authority
R&D Research and Development
RBI Reserve Bank of India
RCS Regional Connectivity Scheme
RDE Radio Detection Equipment
RFID Radio Frequency Identification Device
RGNAU Rajiv Gandhi National Aviation University
RITES Rail India Technical and Economic Service Limited
RMCC Risk Management Centre of Customs
ROBs Road-Over-Bridges
RoDTEP Remission of Duties and Taxes on Export Products
RPL Recognition of Prior Learning
RSV River-Sea Vessel
RTK Revenue Tonne Kilometre
SARDP-
NE
Special accelerated Road Development Program in North East
SBIA Shendra Bidkin Industrial Area
SCoR South Coast Railway
SEZ Special Economic Zone
xi
SION Standard Input Output Norms
SOP Standard Operating Procedure
SPV Special Purpose Vehicle
SSI Small Scale Industries
STS Station to Station
SWIFT Single Window Interface for Trade
SWS Single Window System
TAC Terminal Access Charge
TAMP Tariff Authority for Major Port
TEU Twenty feet Equivalent Unit
TEFD Traditional Empty Flow Directions
TIES Trade Infrastructure for Export Scheme
TMA Transport and Marketing Assistance
TNTPO Tamil Nadu Trade Promotion Organisation
UN United Nations
UP Uttar Pradesh
USA United States of America
USD United States Dollar
VAT Value Added Tax
VCIC Vizag Chennai Industrial Corridor
VIP Very Important Person
VoCPT V. O. Chidambaranar Port Trust
xii
WDFC Western Dedicated Freight Corridor
WTO World Trade Organization
1
INTRODUCTION
The global economic scenario witnessed an extensive integration of
national economies during the last few decades. This development in the global
economic dynamics has resulted in remarkable growth in trade, and at present
nearly one-fourth of the global production is exported. With expanding
international trade, exports constitute an integral part of a country’s economy.
Moreover, the level of economic growth, employment, distribution of wealth as
well as balance of payments is greatly influenced by export performance of a
country. Exports are also significant to modern economies because it offers
more markets for their goods.
1.2 The export performance of India has not been satisfactory with its
economic growth relying heavily on domestic demands. A report by NITI
Aayog illustrates that domestic demands constituted 59.1 per cent of the
country’s Gross Domestic Product (GDP) during 2017-18 and exports
contributed only 19 per cent during the same period. This heavy reliance on
domestic demand has limitation as it might lead to burgeoning of imports faster
than exports resulting in further widening of trade deficits. Further, elasticity of
domestic demand is not infinite and India would not be able to achieve the
desired level of economic growth in the long run through heavy dependence on
domestic demand. Hence, boosting of exports is imperative to bridge trade
deficit, attract investment to domestic manufacturing and services, and attain a
level of economic growth that spurs employment generation and higher per
capita income.
1.3 Realizing the significance and potential of exports, India has introduced a
number of export incentives schemes and taken policy measures to strengthen
its exports. However, the country has not achieved the desired level of growth
in exports sectors and requires strategic interventions especially for
strengthening its support infrastructures. Further, the COVID-19 pandemic has
induced massive transformations in the global trade scenario with many
countries seeking diversification of their markets beyond China. The Indian
exports sector has a potential to become a viable alternative supplier to such
countries. In order to capitalize on the export opportunities, India needs to
improve its export competitiveness in the global market in the face of stiff
competition from other countries.
1.4 The trade related infrastructure plays vital role in exports. The presence
of adequate and robust infrastructure and services are integral elements for
attaining increased productivity and growth in the exports arena. Investments
and improvements in infrastructure has the potential to significantly lower
production as well as transaction costs, thereby enhancing export
competitiveness and expanding market access. The availability of a good
2
logistics infrastructure and an effective logistics management system facilitates
uninterrupted movement of goods. Further, the efficient management and
integration of data related to exports facilitates prompt clearance process,
enhance transparency, maintain accountability and improve business
environment. Infrastructure development is, therefore, key to reducing costs of
exports and enhance export competitiveness in global market thereby boosting
our exports.
1.5 In view of the crucial role played by exports in our economy and the
significance of quality infrastructure in enhancing exports, the Department
Related Parliamentary Standing Committee on Commerce selected this subject
for detailed examination and Report. The Committee, in this Report, carried out
sector-wise analysis of infrastructural gaps that hindered the movement of
export consignments from point of production to gateway ports, airports and
land ports. The Report also touches upon various procedural and documentary
requirements at various points of export and suggested measures to streamline
the process. The presence of a robust regulatory mechanism and other support
infrastructure for exports as well as efficacy of various export incentive
schemes has also been analysed.
OVERVIEW OF EXPORTS
2.1 The Department of Commerce informed that the financial year 2019-20
saw a global economic slowdown due to onset of the COVID-19 pandemic,
which saw our exports declining by (-)5.1 per cent. During April-December
2020, exports were USD 200.8 billion as against USD 238.3 billion during the
corresponding period in 2019, registering a negative growth of (-) 15.7 percent.
India’s exports have been under stress in the current financial year.
2.2 Prior to the onset of the COVID-19 pandemic, merchandise exports have
been growing on a regular basis since 2016-17 for almost three years and have
been estimated at USD 330.08 billion for the year 2018-19, the highest ever,
surpassing the earlier peak of USD 314.41 billion achieved in 2013-14 for the
first time. In-spite of the challenges posed by pandemic, India’s total exports of
goods and services crossed half a trillion dollars for a second year in a row in
2019-20. The broad trends of Merchandise Exports, Imports and Trade Balance
during the last ten years are given in table below:
(Value in USD billion)
Sl.
No. Year Exports
Growth
(%) Import
Growth
(%)
Trade
Balance
1. 2010-11 249.82 39.76 369.77 28.23 -119.95
2. 2011-12 305.96 22.48 489.32 32.33 -183.36
3. 2012-13 300.40 -1.82 490.74 0.29 -190.34
4. 2013-14 314.41 4.66 450.20 -8.26 -135.79
5. 2014-15 310.34 -1.29 448.03 -0.48 -137.69
3
6. 2015-16 262.29 -15.48 381.01 -14.96 -118.72
7. 2016-17 275.85 5.17 384.36 0.88 -108.50
8. 2017-18 303.53 10.03 465.58 21.13 -162.05
9. 2018-19 330.08 8.75 514.08 10.42 -184.00
10. 2019-20 313.36 -5.06 474.71 -7.66 -161.35
April-Dec.
2019
238.27 364.18 -125.91
April-
Dec.2020(
QE)
200.80 -15.73 258.27 -29.08 -57.47
Source: DGCI&S; QE stands for Quick Estimates
2.3 The Department further informed that consequent upon the continued
effort of the Government, the share of India in the global overall export has
been increasing since 2014 and commanding 2.15 per cent share of the global
exports in 2019 as depicted in the table below: (Value in per cent)
Years India's Share in World overall Exports
2014 1.98
2015 1.97
2016 2.02
2017 2.09
2018 2.08
2019 2.15 Source: WTO
2.4 The Committee is concerned that our exports have contracted since
2019-20, registering a negative growth rate of (-) 15.73 per cent in 2020.
The Committee also observes that though the share of India has shown
marginal increase, it has commanded only a meagre share of 2.15 per cent
share in global exports. In view of the crucial role played by exports in the
overall economic growth of a country, the Committee opines that India
needs to step up its effort in export promotion, expand its export baskets
and penetrate new export markets to recover from its current slump and
increase its share in global exports. The Committee also feels that India
needs to revamp its overall domestic manufacturing conditions and
logistics chain to enable our products to be competitive in the global
markets. The Committee, therefore, recommends the Department of
Commerce to take appropriate measures, relook its export strategies and
policies to achieve positive growth rate of exports and higher share in
global exports markets.
4
LOGISTIC SECTOR AND NATIONAL LOGISTICS POLICY
3.1 The Committee was informed that the logistics sector has been growing
at Compounded Annual Growth Rate (CAGR) of 10.5 per cent as per
assessment done by NITI Aayog. The logistics cost in India has been estimated
at 13 per cent of GDP in 2018 as per report published by Armstrong &
Associates. In developed economies, logistics as a share of GDP is about 8–10
per cent and logistics costs as a share of the final price of goods is 9–10 per
cent. As per industry estimates, a reduction in logistics cost by 10 per cent,
could increase the country’s exports by 5-8 per cent.
3.2 The Department of Commerce informed that India’s logistics sector is
complex with more than 20 Government agencies, 37 export promotion
councils and more than 10,000 commodities. It further informed that the
carriage of goods by various modes has been governed by different laws which
have resulted in the fragmentation of the regulatory environment, presence of
multiple governing bodies, complex processes and varying documentation
requirements and liabilities under the respective laws, leading to sub-optimal
performance and utilization of logistics assets.
3.3 The Government of India has set the task of reducing logistics cost in
India and has accordingly created the Logistics Division under the Department
of Commerce, Ministry of Commerce and Industry with the objective of
addressing the issues concerning logistics and for the integrated development of
logistics sector. In pursuance of this objective, the Logistics Division has been
working towards a National Logistics Policy, after wide consultations with
Government and other stakeholders.
3.4 The Department informed during interaction with the Committee that
Logistics policy envisaged a comprehensive strategy for transforming the
logistic sector in the country encompassing both the domestic as well as EXIM
logistics chain. The policy also puts in place a robust mechanism for facilitating
coordination between different Ministries/Departments as well as with State
Government on issues concerning logistics sector. Further, processes of
digitization have already been initiated and Unified Logistics Interface Platform
is being developed in partnership with other Ministries and Departments. The
draft National Logistics Policy has been circulated to all concerned Ministries in
November 2020 and is currently being finalized on the basis of comments /
suggestions from concerned Ministries and other stakeholders.
3.5 The Committee notes that the logistics cost in India is higher in
comparison with developed countries and reducing it is crucial for bringing
down overall cost in exports and achieving a competitive edge in the export
markets. It also takes note that the Department has formulated a National
Logistic Policy to address logistical issues in a holistic manner. However,
the Committee is deeply discontented to learn that the policy has not been
5
finalized despite the Committee’s repeated recommendation in its 158th
and
163rd
Reports to finalize the policy. The Committee, therefore, reiterates its
recommendation to finalize the policy and an action taken note in this
regard may be furnished to the Committee.
STATUS OF EXPORT INFRASTRUCTURE OF COMMODITY
BOARDS AND AGRICULTURAL AND PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY (APEDA)
4.1 The Department of Commerce informed that commodity boards and
bodies under the Department have a robust and adequate infrastructure.
Adequate allocation has been made to these bodies for undertaking the required
infrastructure upgradation. Between 2017-18 and 2020-21, 268 projects at the
cost of Rs. 103.71 crore have been undertaken by Agricultural and Processed
Food Products Export Development Authority (APEDA) under various heads,
namely, Common Infra Facilities, Integrated Post Harvesting System/Pack
House, Specialized Transport Unit and Mechanize Handling for
Sorting/Grading/Missing Gap.
4.2 As part of the infrastructure development, a Quality Control Laboratory
(QCL) has been established at Siliguri, West Bengal under Assistance to States
for Development of Export Infrastructure and Allied Activities (ASIDE)
scheme at a cost of Rs 9.47 crore by Tea Board. The Quality Control Laboratory
is a state of the art laboratory, set up with the objective of testing of tea as a step
towards facilitating export quality tea and caters to the needs of the Industry by
testing commercial tea samples in compliance with FSSAI standards.
4.3 Under the Coffee Board, state of the art Coffee Quality and Export
Certification Laboratory has been established to bridge the existing gap in
quality laboratory infrastructure in coffee export at a total cost of Rs. 10.46
crore of which 50 per cent is grants from Government of India under TIES
project. The main objectives of the establishment of laboratory is to enhance
export competitiveness by bridging gaps in export infrastructure and to provide
reliable, consistent and efficient coffee testing service using state-of-the-art
instruments. The lab infrastructure will be sufficient to meet the demand of the
coffee exporters of the country. As regard to spice board, the Committee was
informed that 8 spice parks and 9 Quality Evaluation Laboratories (QELs) have
been established at the cost of Rs. 196.20 crore and 263.12 crore respectively.
4.4 The Committee observes that the total budgetary support provided
to commodity Boards and Agricultural and Processed Food Products
Export Development Authority (APEDA) for infrastructure development
since 2017-18 is only Rs. 582.96 crore. The budgetary support provided to
Tea Board and Coffee Board is particularly found to be abysmally low. It is
the firm opinion of the Committee that availability of robust infrastructure
for the commodity Boards and APEDA is crucial for augmenting our
6
exports in view of the fact that these products constitute a major portion of
our export basket. The Committee, therefore, recommends that budgetary
allocation to the Boards and APEDA should be enhanced to enable them to
develop a robust and vibrant infrastructure for meeting the demands of
our exports. The Committee further recommends APEDA and commodity
Boards to take concerted steps to generate revenue through marketing and
selling of products, holding events, etc.
INSPECTION, TESTING AND CERTIFICATION
5.1 The Committee was informed that Product testing is integral to the export
inspection and certification services being rendered by Export Inspection
Council (EIC). The pre-export samples are tested either at In-house laboratory
of the establishment (wherever facility available) or at Export Inspection
Agency (EIA) laboratories/EIC approved laboratories. At present, there are
seven accredited laboratories of EIC and 54 EIC approved private and
government laboratories which are involved in pre-export testing.
5.2 The Export Inspection Council (EIC) exercises quality control and
inspection in respect of products notified under Export (Quality Control &
Inspection) Act, 1963, in order to ensure that the products meant for export are
in compliance to the importing country’s requirements. Currently, the list of
products notified for mandatory pre-shipment inspection and certification prior
to export from India, includes fish and fishery products, honey, milk products,
egg products, fresh poultry and poultry meat products, basmati rice, black
pepper, raw meat (chilled/frozen) and processed meat products, animal casings,
crushed bones, ossein, gelatine, fruit products, feed additives and premixtures,
peanut and peanut products.
5.3 Upon enquiring about the steps taken for augmenting testing, inspecting
and certification infrastructure, the Department informed that EIC has recently
established new laboratory at sub office in Bhubaneswar and Visakhapatnam as
well as started the antibiotic testing facility at Bhimavaram sub office. Further,
the establishment of laboratories at Ahmedabad and Faridabad are also under
process. It further informed that EIC operates through its field organizations and
Export Inspection Agencies (EIAs) headquartered at Chennai, Delhi, Kochi,
Kolkata and Mumbai, with a network of 24 sub offices at strategic locations in
the country. Further, to facilitate ease of export, permission is granted to issue
the Certificate of Export by the establishment itself in case of approved
establishments. The Health Certificates as per the importing country’s
requirements is issued through online by EIAs.
5.4 The Committee acknowledges the steps taken by the Department for
augmenting testing, inspecting and certification infrastructure. The
Committee recommends the Department to continue its effort in this
direction and also ensure the timely completion of establishment of
7
proposed laboratories at Ahmedabad and Faridabad. The Committee also
recommends the Department to take proactive measures to promptly
identify any commodity/regional specific requirement of inspection and
testing services and bridge the infrastructural gaps accordingly.
PACKAGING TECHNOLOGY
6.1 Packaging is an essential part of the life cycle of many goods. It protects
them from breakage or spoiling, and makes them more attractive for consumers.
It also determines how much space an item will take up in a truck or warehouse.
6.2 The Indian Institute of Packaging (IIP), Mumbai is an autonomous body
set up by the leading packaging and allied industries and the Department of
Commerce, Ministry of Commerce and Industry. The Institute is involved in
various activities like testing and certification of packaging materials and
packaging for domestic and export market, including mandatory UN
certification of packaging for transport of hazardous/dangerous goods, training
and education, consultancy and projects, and research and development in the
area of packaging. The Institute also imparts training in innovative and aesthetic
packaging to the artisans, weavers, exporters, stakeholders, etc., involved in the
handloom and handicrafts sectors.
6.3 The Committee learnt that efficient packaging helps in optimizing
warehouse space and improves the load factor of vehicles without
compromising the safety and integrity of cargoes. The Committee
recommends the Department through the Indian Institute of Packaging
(IIP) and in consultation with stakeholder to formulate standardized
packing guidelines for different categories of cargoes to be followed by
logistics operators. The Committee further recommends that best practices
in packaging around the world that are suitable for our logistics chain may
be studied and adopted.
PRODUCT AND REGIONAL SPECIFIC EXPORT INFRASTRUCTURE
7.1 India, with its large geographical area and varied agro climatic conditions
has the advantage of producing diverse crops round the year. Agricultural,
marine and plantation commodities sectors are the driving engine of India’s
growth and economy. With the maximum population of India engaged in these
sectors, the economic growth of India is significantly dependent on the
development of these sectors. Further, the manufacturing sector has started
picking up since the launch of Make in India programme and further boosted by
the introduction of Production Linked Incentive Scheme (PLI). A robust export
infrastructure is required for linking our domestic production to the export
market.
8
FRUIT PRODUCTS OF JAMMU & KASHMIR
7.2 The Union Territory of Jammu and Kashmir has a surplus production of
fruits which can be exported by providing the required export infrastructure.
The Committee was informed that the present trade infrastructure is inadequate
and attention is required in warehousing, cold storage and existing infrastructure
that need to be upgraded. The Akhnoor region, which is the mango hub of
Jammu, has huge export potential. However, due to lack of storage capacity,
only 50,000 kg is being preserved. It was suggested to the Committee that
enhancing the storage capacity and creating such facilities near mandis for
facilitating producers can double or even triple the current volume of pickle
exports from Jammu district.
7.3 The Committee recommends the Department to undertake a study
on the quantum and types of infrastructural requirements to facilitate the
export of fruit products from the Union Territory of Jammu & Kashmir.
The Committee further recommends the Department to provide the
required budgetary support to bridge the infrastructural gap and consult
with the concerned stakeholders and administration of the Union Territory
for augmenting the export infrastructure.
AGRO PRODUCTS FROM NORTH EASTERN REGION
7.4 The Committee was informed that North Eastern region has a potential
for export of various agro products. As per Directorate General of Commercial
Intelligence and Statistics, the region in 2020-21 exported agro products such
as, spice, fruits and vegetables seeds, marine products, tea, coffee, groundnut,
fresh fruits and vegetables, etc.
7.5 In a written reply to the Committee, the Federation of Indian Export
Organisations (FIEO) mentioned that lack of proper collection centres and
storage facilities adversely affects the collection and transfer of perishable
commodities from the region. Further, lack of adequate cold storage facility,
testing laboratory and certification services have hindered the promotion of
exports. The region also has a huge potential for promotion of export of
horticulture crops such as orange, banana, kiwi, etc., and also leveraging
indigenous capacity of organic farming to cater to organic premium markets of
USA and EU.
7.6 The Committee recommends the Department to coordinate with the
concerned Ministries/ Departments to identify strategic locations in the
region and set up the required warehousing and cold chain infrastructure,
integrated testing laboratories equipped with modern irradiation facility
and compliant to Food and Drug Administration (FDA) and EU norms,
and also provide necessary export inspection and certification services to
boost exports of agricultural and horticultural products from the region.
9
7.7 The Committee recommends that packing house with pulping units
approved by Agricultural and Processed Food Products Export
Development Authority (APEDA) may be set up specifically for the
production and packing of better grade products to cater to domestic and
global premium markets.
7.8 The Committee recommends the Department to leverage on the
indigenous capacity of organic farming in the region and provide the
inspection and testing services required for adhering to international
standards and certifications to facilitate the export of organic products to
premium markets of USA and EU.
CHILLI EXPORT FROM GUNTUR, ANDHRA PRADESH
7.9 The Committee was informed that chilli is a major item exported from
Guntur District and around 1.8 lakh tonnes of chilli has been exported per
month. There is an urgent requirement of cold chain warehouse instead of
normal warehouses to cater to the huge volume of chilli exported from Guntur.
7.10 The Committee recommends the Department of Commerce to
coordinate with Ministry of Food Processing Industries to provide
adequate number of cold chain warehouses for exports of chillies in Guntur
District of Andhra Pradesh.
TEXTILE EXPORT FROM SOLAPUR, MAHARASHTRA
7.11 The Committee was informed that Solapur has a big cluster for Terry
towels and Chaddar which have a Geographical Indication tag. Moreover, the
city also has an edge, skill and capacity in the field of uniforms. However,
infrastructure shortage in terms of a Design Centre is the need of the hour as
manufacturing is carried out currently using traditional methods and industries
are carrying out design process on their own incurring a significant amount of
expenditure.
7.12 The Committee recommends the Department for Promotion of
Industry and Internal Trade via the National Design Institute (NID) to lend
necessary assistance to textile industries for modernisation of its design
process. The Committee also recommends the Department of Commerce to
provide assistance under the Trade Infrastructure for Export Scheme to
install digital printing units for the textile industrial clusters and
coordinate with the State Government of Maharashtra in this regard.
ELECTRONICS SECTOR IN BANGALORE
7.13 The Committee was informed that the electronics component industry in
India has, for decades, been heavily dependent on imports from China,
Singapore, USA, Japan, and Taiwan. However, the industry has recently
witnessed some promising initiatives by Government as part of ‘Make in India’
initiative to build capabilities as a manufacturing hub and scale up production
10
within the country. As the industry expands, there arises the corresponding
requirement for expansion of capabilities and expertise to meet the quality
testing, inspection and certification requirements of the industry.
7.14 It was informed that there are very few laboratories in India that are
accredited to international standards for components like connector, Printed
Circuit Board (PCB), Relay, Photovoltaic (PV) Junction box, Cables, Wires,
Miniature Circuit Breakers(MCBs), Switches, Motor capacitors, etc., and a few
of them offering a complete end-to-end testing, inspection and certification
solution for the component sector. The Electronics City Industries Association
(ELCIA) cluster has environmental testing for small products (temperature,
humidity and vibration). However, there are no Electromagnetic Interference
(EMI) chambers as they are capital intensive. Further, internationally
recognized laboratories in India have insufficient capabilities and the samples
collected for testing are sent elsewhere for further testing, which takes about 6-8
months.
7.15 The Committee notes the critical requirements of robust testing and
certification infrastructure to cater to the expanding manufacturing
capacity of the electronics sector. The Committee, therefore, recommends
the Department of Commerce to coordinate with the Ministry of
Electronics and Information Technology to identify the infrastructural
gaps in the electronics sector and take measures to augment the same.
EXPORT INCENTIVE SCHEMES
8.1 The Department of Commerce has undertaken various measures and
provided incentives under various schemes for boosting our exports and
expanding export basket.
ADVANCE AUTHORIZATION SCHEME
8.2 The Advance Authorization scheme allows duty free import of inputs,
which are physically incorporated or used in making export products. Under the
scheme, all import duties on inputs, such as Basic Customs Duty, Integrated
Goods and Services Tax (IGST), cesses, anti-dumping duty, etc., are outright
exempted. Also, local procurement of inputs in place of direct imports is
allowed under the scheme wherein IGST for input are refunded.
8.3 The Committee was informed that exporters are facing problem in
achieving minimum value addition of 15 per cent which is mandated under the
scheme. In certain cases, even if exporters achieve its export obligation in
quantity terms and utilized the duty-free material completely in process of
manufacturing export goods, the penalty/regularization for not achieving value
addition of 15 per cent is still imposed. The requirement of payment of
GST/IGST by exporters for domestic sourcing of inputs blocks the availability
of capital. It was also informed that exporters are facing problem due to delay in
11
fixation of Standard Input Output Norms (SION) by the Norms Committee as
regularization of such cases remains pending even after completing the export
obligation.
8.4 The Committee recommends that the value addition criteria may be
relaxed and instead of fixing a 15 per cent weightage, a positive value
addition in itself may be accepted. The Committee further recommends
that procurement against advance license should be allowed from any
manufacturer in India without payment of IGST to incentivise substitution
of imported goods with that of locally produced goods and motivate local
procurement.
8.5 The Committee also recommends that the Norms Committee should
finalize the Standard Input Output Norms (SION) at the earliest and
accept the Norms of the exporters until it is able to do so.
EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
8.6 Export Promotion Capital Goods (EPCG) scheme facilitates import of
capital goods for producing quality goods and services to enhance India’s
export competitiveness. EPCG Scheme allows import of capital goods for pre-
production, production and post-production at zero customs duty.
8.7 The Committee was informed that installation and commissioning of new
machinery takes six months to one year or even more and the stipulation of
producing Installation Certificate within six months from date of completion of
import is causing hardships to the exporters as installation of the machinery
sometimes get delayed due to unavoidable circumstances. Even after
commissioning of machinery, it takes time to set up the plant and further
marketing new products is an uphill task making it difficult for manufacturers to
fulfill the stipulated 50 per cent Export Obligation in first block. In the above
context, it was further informed that exporters are facing difficulty in fulfilling
their export obligation as the time period for fulfilling export obligation counted
from the day of issuing authorization for import of capital goods.
8.8 It was also submitted to the Committee that exporters faced issues in
maintaining annual average level of exports mandated under the scheme due to
slow down/fluctuations in global market conditions. Further, the removal of
allowing fulfilling up to 50 per cent of export obligation by the export of other
goods manufactured by the same company/firm has caused difficulty to the
exporters. Exporters are facing difficulty in submitting Chartered Accountant
certified statements of exports and imports for redemption due to lengthy and
costly process involved and large volume of the physical exports.
8.9 The Committee recommends that export obligation period should be
started from the date of commissioning of the machinery and time period
for submission of Installation Certificate for Export Promotion Capital
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Goods (EPCG) Authorization holder for capital goods should be relaxed
further.
8.10 The Committee also recommends the Department to consider
providing relaxation on requirement of annual average and it may be
reduced to 50 per cent based on preceding 3 years average export
performance. The Committee further recommends that the requirement of
block-wise fulfillment of export obligation should be relaxed and instead 6
years time in total should be provided without any restriction for
fulfillment of the export obligation.
8.11 The Committee recommends that the provision of allowing fulfilling
upto 50 per cent of export obligation by export of other goods
manufactured by the same company/firm may be reintroduced. It further
recommends that submission of a self-certified statement of export and
imports along with all original export documents such as Electronic Bank
Realization Certificate (eBRC), invoices and copies of imports bill of
entries to the Registration Authority (RA) office should be accepted for
redemption purpose post completion of export obligation.
REMISSION OF DUTIES AND TAXES ON EXPORT PRODUCTS (RoDTEP) SCHEME
8.12 Under this scheme, a mechanism to digitally refund to exporters, duties
and taxes levied at the Central, State and local levels, such as electricity duties
and Value Added Tax (VAT) on fuel used for transportation, which are not
getting exempted or refunded under any other existing mechanism would be
available. Though the scheme came into effect from 1st January, 2021, the
Department of Commerce notified the rates under the scheme for 8555 export
items with a budgetary allocation of Rs. 12,500 crore only on 17th
August, 2021
vide Notification No. 19/2015-20.
8.13 The Committee is discontented that notification of rates under the
scheme has been delayed by more than seven months and benefits under
the scheme have not been passed on to exporters till date. The Committee,
therefore, recommends the Department of Commerce to expedite
implementation of the scheme to enable exporters to avail benefits under
the scheme. The Committee also opines that the budget allocation of Rs.
12,500 crore for the scheme would be inadequate to meet its objectives. The
Committee, therefore, recommends the Department of Commerce to
engage with the Ministry of Finance to provide additional allocation for the
scheme.
INTEREST EQUALIZATION SCHEME (IES)
8.14 The Interest Equalization Scheme (IES) for pre- and post-shipment rupee
export credit is being implemented by the Directorate General of Foreign Trade
(DGFT) through the Reserve Bank of India (RBI). The scheme came into effect
from 01.04.2015 and was for a period of 5 years. Under the scheme, interest
13
equalization @ 3 per cent per annum has been made available to eligible
exporters in the identified 416 four-digit tariff lines and all MSME exporters
across all their merchandise exports. Thus, banks provide loans to eligible
exporters by way of pre and post shipment rupee export credit, and in respect of
exporters covered under the IES, the rate of interest is reduced by 3 per cent per
annum.The scheme was extended with the same scope and coverage till 30th
June, 2021 and the extension of the scheme beyond the given date is still under
consideration. The detail of the amount of subvention provided to exporters
during the last six years is as below:
(₹ in crore)
Financial Year Actual Expenditure
2015-16 1100
2016-17 1000
2017-18 2000
2018-19 2600
2109-20 2890.30
2020-21 1667
Total 11257.30 Source: Department of Commerce, Ministry of Commerce and Industry
8.15 The Committee is discontented to note that a decision on the
continuation of the scheme has not been taken till date even though current
period of operation of the scheme has already ended. The Committee
strongly opines that such uncertainty in business environment is not
conducive for our overall export ecosystem and causes hardship to
exporters as they face uncertainty on whether or not to factor the benefit of
the scheme in their costing. The Committee recommends the Department,
in future, to notify its decision regarding the extension or discontinuation
well in advance. The Committee further recommends the Department to
consider extending the scheme for at least five years or till the time our
interest rates are at par with rates of the competing countries.
TRADE INFRASTRUCTURE FOR EXPORT SCHEME
8.16 The Department of Commerce has been implementing a scheme namely,
Trade Infrastructure for Export Scheme (TIES) from 2017-18 with the objective
of assisting Central and State Government agencies for creation of appropriate
infrastructure for growth of exports. The scheme provides assistance for setting
up and up-gradation of infrastructure projects with overwhelming export
linkages like the Border Haats, Land customs stations, quality testing and
certification labs for exports, trade promotion centres, etc., Under the scheme,
Central Government assistance is provided in the form of grant-in-aid upto the
matching equity being put in by the implementing agency in the total project
cost, upto 50 per cent of the total equity subject to a ceiling of Rs. 20 crore for
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each project (upto 80 per cent of the total equity for North Eastern and
Himalayan States/UTs). Central Government Agencies including Export
Promotion Councils, Commodities Boards, SEZ Authorities, Apex Trade
Bodies recognized under the EXIM policy of Government of India and the State
Government undertakings are eligible for financial support under this scheme.
8.17 On enquiring about the status of projects and measures taken to ensure
timely completion of projects under TIES, the Department informed that a total
of 44 projects (including 2 projects subsequently cancelled due to inordinate
delay in implementation) situated across 18 States/UTs have been approved
under the Scheme. As on 11th
June, 2021, a total of 12 projects have been
completed and 30 projects have been under various stage of implementation.
The details of the 44 projects are attached at Annexure I. The Department
further informed that the Empowered Committee of TIES periodically reviews
the progress of the approved projects in the scheme and takes steps to ensure
that the projects are completed without any cost and time overruns. Besides, a
Project Monitoring Committee (PMC) at the project level, consisting of the
representatives of Implementing Agency and a representative of Department of
Commerce has been mandatorily put in place. The PMC ensures timely and
proper implementation of the project without any cost and time overruns. A
third party evaluation of the Scheme has been conducted and the evaluation
Report has been submitted in January, 2021 to the Department.
8.18 The Committee observes that two projects, namely, Establishment of
Coastal Cashew Research & Development Foundation, Kumta, Karnataka
and Upgradation of infrastructure at Land Customs Station (LCS)
Muhurighat, South Tripura has been delayed due to various issues. The
Committee, therefore, recommends the Department to coordinate with the
respective stakeholder to resolves these issues at the earliest and ensure
timely completion of these projects. The Committee further recommends
the Department to ensure the completion of the remaining projects within
the scheduled time frame. A status note on the 30 projects which are
currently implemented may be furnished to the Committee in action taken
replies. Further, the outcome of the third party evaluation of the Scheme
may be shared with the Committee.
8.19 The details of the budget allocated and actual expenditure under the
scheme from 2017-18 to 2021-22 (May, 2021) is as follows:
(₹ in crore)
2017-18 2018-19 2019-20 2020-21 2021-22
(Till May, 2021)
BE 100 80 50 75 75
RE 80 75 85 75 -
Actual Expenditure 80 75 64.99 59.99 NIL Source: Department of Commerce, Ministry of Commerce and Industry
15
8.20 The Committee notes that the scheme has wide coverage, providing
assistance for setting up and up-gradation of infrastructure projects with
overwhelming export linkages like the Border Haats, Land customs
stations, quality testing and certification labs for exports, trade promotion
centres, etc. Further, it is the only scheme that is specifically meant for
trade infrastructure. In view of this, the Committee opines that the budget
allocations under the scheme is grossly inadequate to fulfil the objectives of
the scheme and support trade infrastructures in 28 States and 8 Union
Territories. The Committee, therefore, recommends Department to
enhance the budgetary allocation under the scheme.
MARKET ACCESS INITIATIVE (MAI) SCHEME
8.21 The Market Access Initiative (MAI) scheme is an export promotion
scheme, formulated to act as a catalyst to promote India’s exports on a sustained
basis. Under the scheme, assistance is granted to Export Promotion Councils
(EPCs), Commodity Boards and Apex Trade Organizations for carrying out
various export promotion activities.
8.22 The Committee was informed that the role of the Commercial Section of
our Missions abroad is not significant which could be attributed to their limited
knowledge of various products and also the production processes/standards
attached to such products. Further, restricting participation of EPCs in a
particular fair to only three times have been a limiting factor to an extent that by
the time an EPC has been able to sensitize the exporting community about the
fair, their participation is stopped.
8.23 The Committee recommends the Department to consider appointing
product-market specific experts to be stationed at our Missions abroad to
assist and guide exporters before entering new markets and introduce new
products in such markets. The Committee further recommends that the
restriction of three participations in a particular fair should be applied
only for individual exporter/companies and relaxation should be provided
to Export Promotion Councils (EPCs) in this regard.
TRANSPORT AND MARKETING ASSISTANCE (TMA) SCHEME
8.24 Under this scheme, transport assistance at a fixed rate is provided for
export by air and sea through direct transfer of money into beneficiaries’ bank
account.
8.25 The Committee was informed that assistance for export of products by
sea is based on the freight paid for full Twenty feet Equivalent Unit (TEU)
containers and is not made available for Less than Container Load (LCL) and
container having both eligible and ineligible category. Exporters shipped
together both eligible and ineligible products in a single container and export
16
the same so as to reduce the transport cost as it is not economical to segregate
and export only eligible products in a single container. The exporters thus
forego the benefits even for the eligible products as they are shipped in a single
container along with ineligible products.
8.26 The Committee observes that assistance under the scheme is
provided based on the freight paid for full Twenty feet Equivalent Unit
(TEU) containers for export of products by sea. The Committee opines that
this provision is unlucrative to exporters as they are unable to claim the
benefit under the scheme when both eligible and ineligible products are
shipped together. The Committee, therefore, recommends the Department
to take a relook at the scheme and provide relaxation and extend benefits
based on the volume/weight of the eligible product that is shipped in the
container.
EXPORT ORIENTED UNITs (EOUs)
9.1 The Export Oriented Units (EOU) scheme has been introduced to boost
exports, increase foreign earnings and create employment in India. Under the
scheme, units undertaking to export their entire production of goods and
services may be set up. Further, only projects having minimum investment of
Rs. 1 crore in plant and machinery have been considered for establishment as
EOUs.
9.2 The Committee was informed that 1,580 EOUs are in operation as on 10th
June, 2021 and 116 EOUs are in the process of implementation. It was also
informed that EOUs are provided incentives such as, exemption from Customs
and Central Excise duties on import/local procurement of capital goods, raw
materials, consumable, spares, packing materials, etc.; reimbursement of
Central Sales Tax (CST) on goods manufactured in India; exemption from
Central Excise duty on goods, falling in fourth schedule of Central Excise Act;
exemption from industrial licensing for manufacturing of items reserved for
Small Scale Industries (SSI) sector; retention of 100 per cent export earnings in
Exchange Earners' Foreign Currency (EEFC) account;100 per cent FDI through
automatic route; and sharing of infrastructural space based on approvals.
9.3 The export performance from EOUs for the last six year is as under:
(₹ in crore)
Year No. of EOUs Export by EOUs
2015-16 -- 97,493.23
2016-17 1,866 1,03,277.94
2017-18 -- 86,083.06
2018-19 1,700 87,371.74
2019-20 1607 1,02,492.92
2020-21 1,580 1,06,529.80 Source: Department of Commerce, Ministry of Commerce and Industry
17
9.4 The Committee enquired about the reasons for the decline in performance
of Export Oriented Units (EOUs) after 2016-17. The Department of Commerce
informed that one of the reasons for decline of export from EOUs may be due to
decrease in number of functional EOUs. The number of functional EOUs in
2016 was 1,866 which came down to 1,700 in 2019 and to 1,607 in the year
2020. The number of functional EOUs further declined to 1,580 in 2021. Other
reasons for the decline in performance can be attributed to the fact that Income
Tax benefit enjoyed by EOUs came to an end on 31st March, 2011 and they are
no longer eligible for duty free procurement of goods and services from
Domestic Tariff Area (DTA) post introduction of GST in 2017. During the
evidence, the Committee was informed that there is a tendency for migration to
non-EOU status because of export incentives given to regular exporters outside
the EOU system.
9.5 The Committee finds the replies furnished by the Department with
regard to the reasons for decline in export from Export Oriented Units
(EOUs) to be unsatisfactory as exports from EOUs show an increase in
2019-20 and 2020-21 in spite of the number of functional EOUs declining.
The Committee is discontented to note that the Department furnished
replies to the Committee based on speculation and not supported by
accurate data. The Committee, therefore, recommends the Department to
observe due diligence in furnishing accurate replies to the Committee. The
Committee further recommends the Department to conduct a detailed
study on reasons for decline in performance of EOUs during 2017-18 and
2018-19 and furnish revised reply to the Committee.
9.6 In view of the major role played by EOUs in boosting our exports,
generating employment, attracting foreign investment and enabling
transfer of latest technology to domestic industries, the Committee
recommends the Department to revamp its efforts on promoting EOUs and
provide necessary support/incentives, including tax incentives, to enable the
sustained increase of exports from these units.
SPECIAL ECONOMIC ZONES (SEZs)
10.1 With a view to overcome the shortcomings experienced on account of
multiplicity of controls and clearances; absence of world-class infrastructure;
unstable fiscal regime; and to attract larger foreign investments in India, the
Special Economic Zones (SEZs) Policy was announced in April 2000. The
policy intends to make SEZs an engine for economic growth supported by
quality infrastructure complemented by an attractive fiscal package, both at the
Centre and the State level, with the minimum possible regulations.
10.2 The Department of Commerce informed the Committee that there were 7
Central Government Special Economic Zones (SEZs) and 12 State/Private
Sector SEZs prior to the enactment of the SEZs Act, 2005. Currently, 426
18
proposals for setting up of SEZs in the country have been accorded formal
approval under the SEZ Act, 2005 out of which 377 SEZs are notified, 35 are
accorded in-principle approval and 265 operational. As per data provided in
SEZs website, a total of 23,58,136 persons have been provided employment
under SEZs till 31st March, 2021.
10.3 On enquiring the performance of exports under SEZs since its inception,
the Committee was informed that the SEZs have contributed 20 per cent in the
total exports of the country. The export performance of SEZs from 2005-06 to
2020-21 is as under:
(₹ in crore)
Export performance of SEZs from 2005-06 to 2020-21
Financial Years Exports from SEZs
2005-2006 22,840
2006-2007 34,615
2007-2008 66,638
2008-2009 99,689
2009-2010 2,20,711
2010-2011 3,15,868
2011-2012 3,64,478
2012-2013 4,76,159
2013-2014 4,94,077
2014-2015 4,63,770
2015-2016 4,67,337
2016-2017 5,23,637
2017-2018 5,81,033
2018-2019 7,01,179
2019-2020 7,96,669
2020-2021 7,59,524 Source: Department of Commerce, Ministry of Commerce and Industry
10.4 The Committee notes that Special Economic Zones (SEZs) play a
significant role in our exports contributing 20 per cent of the total exports
of the country. The Committee, therefore, recommends the Department to
operationalize all the 426 SEZs at the earliest and necessary assistance
given by the Department and other relevant Ministries/ Department for
acquiring all clearances and approvals for the same. The Committee,
further, recommends the Department to provide necessary infrastructures
within the SEZs for enabling a plug and play facility and also ensure that
adequate and quality power supply is provided to the industries within the
SEZs.
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FREE TRADE AGREEMENTS (FTAs)
11.1 With a broad aim of providing better and easier access to export markets
while at the same time balancing the concerns of domestic players, the
Government has undertaken the task of evaluating and discussing trade
agreements with partner countries. The Department of Commerce informed that
India is currently a party to Multilateral Trade Agreement under World Trade
Organization. Further, India has signed eleven Free Trade Agreements and six
Preferential Trade Agreements with countries/regional conglomerate. The
details of international/ regional/ country-specific Trade Agreements which are
currently in operation and which are under negotiation are given at
Annexure II.
11.2 The Committee was informed by relevant stakeholders that Free
Trade Agreements provide an opportunity for better market access from
export perspective. However, Government has to look at a broader picture
of its impact domestically. As on date, India can export under preferential
treatment to more than 60 partner countries including Generalized Systems
of Preferences Scheme of Australia, Eurasian Economic Union, European
Union, Japan, New Zealand and Switzerland. However, the absence of
specific trade agreements with USA and Europe posed challenges for
Indian exporters as they have to compete with other countries having trade
agreements with USA and Europe. The recent EU-Vietnam Free Trade
Agreement (EVFTA) is an example where duty was lifted on 71 per cent of
Vietnamese exports to Europe. It was, therefore, suggested to the Committee
that there should be headway in signing trade agreements with our leading trade
partners, i.e., USA and European Union.
11.3 The Committee notes that our exporters are at a disadvantage in the
USA and European markets while competing with other exporting
countries due to absence of Free Trade Agreements (FTAs) with USA and
EU countries. The Committee also notes that there are issues that need to
be addressed in negotiating free trade agreements with USA and EU in
view of the concerns expressed by some domestic sectors. The Committee
opines that while it is crucial to protect the domestic sector, it is equally
important to address the disadvantages faced by exporters in global
markets. The Committee, therefore, recommends the Department to iron
out the issues that hindered the signing of FTAs with our leading trade
partners and enter into trade agreements that is beneficial for our country
while balancing the interest of the domestic market with that of our
exporters.
INDUSTRIAL CORRIDORS
12.1 The Department for Promotion of Industry and Internal Trade has been
developing various Industrial Corridors as part of National Industrial Corridor
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programme which is aimed at development of futuristic industrial cities in India
which can compete with the best manufacturing and investment destinations in
the world. The program is aimed at providing multi-modal connectivity with
complete plug and play infrastructure till the plot level along with building
resilient and sustainable future ready cities.
12.2 Under the National Industrial Corridor programme, the Department for
Promotion of Industry and Internal Trade (DPIIT) has planned to develop 11
Industrial Corridors spanning over 32 Projects and to be developed in 04
phases. The list of the 11 industrial corridors is given below:
i. Delhi Mumbai Industrial Corridor (DMIC);
ii. Chennai Bengaluru Industrial Corridor (CBIC);
iii. Amritsar Kolkata Industrial Corridor (AKIC);
iv. East Coast Industrial Corridor (ECIC) with Vizag Chennai Industrial
Corridor (VCIC) as Phase 1;
v. Bengaluru Mumbai Industrial Corridor (BMIC);
vi. Extension of CBIC to Kochi via Coimbatore;
vii. Hyderabad Nagpur Industrial Corridor (HNIC);
viii. Hyderabad Warangal Industrial Corridor (HWIC);
ix. Hyderabad Bengaluru Industrial Corridor (HBIC);
x. Odisha Economic Corridor (OEC); and
xi. Delhi Nagpur Industrial Corridor (DNIC).
STATUS OF THE PROJECTS
12.3 Under Phase I of the programme, the Department has undertaken the
development of 5 projects, namely, Dholera Special Investment Region (DSIR)
(22.5 sq. km); Shendra Bidkin Industrial Area (SBIA) (18.55 sq. km);
Integrated Industrial Township –Greater Noida (IIT-GN), (747.5 acres);
Integrated Industrial Township –Vikram Udyogpuri (IIT-VUL), (1,100 acres);
and Integrated Multi-Modal Logistics Hub –Nangal Chaudhary (IMLH-NC),
(886 acres). The Department informed that the first four projects are under
advanced stage of completion and the fifth project is ready for implementation.
Details of the projects are attached at Annexure III.
12.4 Under Phase II of the programme, the Department has undertaken the
development of 8 projects out of which 3 projects are ready for implementation,
and preparation of Master Plan and Detailed Project Report are underway for
the rest of the projects. Further, under Phase III and Phase IV of the programme,
the Department has undertaken the development of 19 projects which are at
various stage of implementation. Details of the projects are attached at
Annexure III.
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12.5 The Committee feels that the implementation and operation of the
Industrial Corridors projects is sluggish and not progressing at a desired
pace. The Committee has made repeated recommendations to the
Department to accelerate the implementation of the projects in its 153rd
,
158th
and 160th
Reports. The Committee reiterates its earlier
recommendations and urge the Department to take concerted effort to
speed up the implementation of the Industrial Corridor projects. The
Committee also notes with concern that delay in the project causes cost
overrun. Therefore, the Committee recommends that efforts should be
made to complete the projects in time bound manner.
ONE DISTRICT ONE PRODUCT (ODOP)
13.1 The Department for Promotion of Industry and Internal Trade (DPIIT)
initiated the One District One Product (ODOP) programme which has been
envisaged to be a transformational step towards realizing the true potential of a
district, fuel economic growth and generate employment and promote rural
entrepreneurship. The Department aimed at creating a pool of 739 products
from 739 districts in India that could be promoted for manufacturing/exports.
13.2 The Department informed that 106 Products have been identified from
103 Districts across the country as part of initial phase of the ODOP
programme. Detailed action reports for 43 products, documenting the existing
bottlenecks in the supply chain and possible recommendations have been
prepared, and field visits have been carried out for 23 products. The Department
further informed that the ODOP has made various headways in the
implementation of the programme such as, successfully facilitating the
procurement of 13,146 kg of dried turmeric from West Jaintia Hills to
Ernakulam, Kerala; promotion of Indian mangoes in Japanese market by
conducting Virtual Buyer Seller Meet (BSM), and organizing mango tasting
sessions, sales, and sampling at supermarkets across 25 locations in Tokyo;
successfully exporting the first-ever promotional and commercial consignment
of Bhagalpuri-Jardalu mangoes to United Kingdom via Lucknow; in
coordination with the Desk for District as Export Hubs under the Directorate
General of Foreign Trade, sellers were onboarded on different e-Commerce
platforms to increase the online visibility of products identified under ODOP;
and successfully conducting a virtual Buyer-Seller Meet for exporting Indian
Silk to Tunisia. The details of the 106 products and 103 Districts are given in
Annexure IV.
13.3 The Committee recommends the Department for Promotion of
Industry and Internal Trade to coordinate with the Department of
Commerce and take proactive measures to bridge the specific
infrastructural requirements to facilitate large scale export of the identified
22
products. The Committee further recommends the Department to
undertake steps to identify products in the remaining districts.
INDIA INTERNATIONAL CONVENTION AND EXHIBITION CENTRE
LIMITED (IICCL)
14.1 The Committee was informed by the Department for Promotion of
Industry and Internal Trade that the India International Convention and
Exhibition Centre Limited (IICCL) is envisioned as a world class, transit
oriented, mixed use complex, providing one of the largest facilities of its kind in
India and Asia. The IICC is developed in 89.72 hectare land with facilities like
exhibition halls, convention centre (comprising plenary hall, ball room and
meeting rooms), a multipurpose arena, open exhibition spaces, mixed use
commercial spaces like star hotels, F&B outlet, retail services and grade “A”
offices. The Project is under construction phase and likely completion date is
31st May 2022.
14.2 The Committee recommends the Department to ensure the
completion of the convention centre within the stipulated time period. The
Committee further recommends the Department to study the feasibility
and benefits of constructing additional convention and exhibition centre in
the southern region of the country for promotion of trade in the region.
14.3 Emphasizing the role of exhibition centres in States to showcase their
export products to the international market, the Department informed that India
Trade Promotion Organisation (ITPO) has its own exhibition centre at Pragati
Maidan in Delhi. Further, ITPO has set up exhibition-cum-convention centres at
Tamil Nadu and Karnataka, viz. Tamil Nadu Trade Promotion Organisation
(TNTPO) and Karnataka Trade Promotion Organisation (KTPO). The
Government of Assam had also set up exhibition-cum-convention centre in
which ITPO had given only technical assistance. ITPO has also invested in the
equity of Jammu & Kashmir Trade Promotion Organisation (JKTPO). Further,
ITPO has committed to invest Rs. 10 crore from their own funds as part of SPV
along with Kerala Industrial Infrastructure Development Corporation
(KINFRA), a State PSU of Kerala. The Committee was further informed that
many other States had also set up exhibition-cum-convention centres by getting
ASIDE/TIES grant from the Department of Commerce and their State
Governments directly. Regarding the steps being taken to set up exhibition
centres in all States/UTs, ITPO provides technical and financial assistance
whenever any State Government sends a proposal for setting up of an exhibition
centre.
23
14.4 The Committee notes the initiatives taken by the ITPO in assisting
the States to set up Exhibition centres. However, many States are left
behind in utilising the scheme. With the emphasis on ODOP, and Make in
India initiative, there is urgent need to involve all the States in showcasing
their products to reach out to foreign buyers. India has a unique
opportunity to capture the emerging trends of globalisation and realise
the export potential of the states. The Committee, therefore,
recommends that concerted efforts should be made with the State
Governments to encourage them to set up Exhibition centres.
RAIL SECTOR
15.1 Railways play a key role in providing reasonably fast, economic and safer
mean of conveyance and are the preferred mode for transport of larger and
bulky cargo over long distances. It enjoys advantages like wider coverage,
reliable, environment friendly and cheaper mode of transport. The rail segment
also plays a very important role in boosting India’s exports, particularly for
exporting units which are situated in landlocked areas such as Jammu &
Kashmir, Bihar, Jharkhand, Punjab, UP, etc. Besides, for large exporters with
container load, railways with its large network offer efficient and cost-effective
movement of containers to gateway ports.
15.2 The Committee was informed that the daily average volume of freight
traffic handled by railways in 2019-20 was 1,028 rakes per day and 1,081 rakes
per day in 2020-21 which is about 3.31 Million Tonnes in 2019-20 and 3.38
Million Tonnes in 2020-21.
15.3 The yearly freight loading during last two years is as under:
Year Total freight loading in Million Tonnes
2019-20 1210.22
2020-21 1233.24 Source: Ministry of Railways
15.4 On enquiring about the share of rail vis-à-vis road in the freight market,
the Ministry of Railways has informed that the share of rail has been on the
decline as a result of lower investment in rail infrastructure in comparison with
road. Currently, nearly 65 per cent of our freight is moved by road and about 35
per cent by rail. In developed countries, however, the trend is reversed with 60-
65 per cent of freight moved by rail.
15.5 The Committee notes with concern that the share of rail vis-à-vis
road is only 35 per cent whereas the trend is reversed in developed
countries. The advantages accorded by rail, i.e., wider coverage, reliable,
environment friendly and cheaper mode of transport have not been fully
capitalized in India. The Committee, therefore, recommends the Ministry
of Railways to undertake a detailed study on the reason for low share of
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rail and take concerted effort to increase the share of rail in freight traffic.
The Committee observes that Railway being the pillar of infrastructure
sector is not getting its due share in terms of investment. The Committee
recommends that more funds should be provided to the sector for its
growth.
RAIL FREIGHT CLASSIFICATION AND FREIGHT RATES
16.1 The Committee was informed that classification of rail freight is
effectuated based on cardinal principles which includes the cost of service,
value of service, socio-economic aspects of the commodity to be transported,
competition from other mode of transportation, etc. At present, goods
transported by rail are classified under 25 classification groups. Freight charge
on goods is made based on its classification, distance traversed by goods and the
rate per tonne notified based on different distance slabs for different classes of
the commodity. On an average, freight by rail is Rs 1.41 per ton-km in
comparison to road freight of Rs 2.50 per ton-km as per NITI Aayog Report in
2018.
16.2 On a query raised to provide freight rates for transportation of different
classes of cargo and corresponding freight rates in developed and developing
countries, the Committee was informed that the freight rates of other developed
and developing countries are not comparable as economic, political and social
conditions of those countries are different from India.
16.3 Over and above the freight rates, the Ministry of Railways has informed
that the following charges are levied at railway terminal and container depots:
GOODS TRAFFIC
Type of Charge Rate
Demurrage Charge Rs. 150/ wagon/hour or part
of hour
Wharfage Charge Rs.150/ wagon / hour for
Group-I
Rs.120/ wagon / hour for
Group-II
Rs. 75/ wagon / hour for
Group-III
Stacking Charge Levied prevailing rates of
Wharfage Charge
Terminal Charge Rs. 20/ tonne
CONTAINER TRAFFIC
Terminal Access Charge Rs.1,60,000/ rake / terminal
Detention Charge Levied at prevailing rate of
Demurrage Charge
Ground Usage Charge Levied on per rake basis at
25
prevailing rates of Wharfage
Charge Source: Ministry of Railways
16.4 The Committee finds it disheartening to note that the Ministry of
Railways is unable to provide competitive freight rate for movement of
export consignment. The Committee feels that this will adversely affect the
competitiveness of our exports in the global markets as freight cost plays a
crucial role in determining the final price of the product. The Committee,
therefore, recommends the Ministry of Railways to take necessary
measures to ensure that a competitive freight rate is provided for
movement of export cargo to destination ports.
16.5 The Committee observes that the basic cost of rail freight is cheaper
compared to road transport. However, it was informed that the landed cost for a
customer using rail is higher than that of road. The Committee was informed by
the stakeholders that during the last few years, free time periods have been
reduced and tariffs for demurrage and detention charges have been increased
considerably. The free period provided to customers was found to be shorter
and demurrage and detention charges to be higher in India compared to other
countries. The Committee further observes that wharfage charge, stacking
charge, terminal access charge, ground usage charge has been levied at terminal
and container depots. The Committee opines that these charges have made the
movement of consignment via rail to be costly and impact the competitiveness
of our exports.
16.6 To enable the Rail sector to compete with Road, the Committee
recommends the Ministry of Railways to extend the free time period in case
the terminal is unable to release / receive a container. The Committee
further recommends that the different charges levied at terminals and
container depots be reduced to a level comparable to other modes of
transport.
16.7 The Committee was informed that the rail freight rate for moving
container shipment from inland dry ports to sea ports is very high. For shipment
of single container between the two stations, the average rail freight is about
Rs. 80,000 to Rs. one lakh. The high rail freight rate for movement of products
from hinterland to sea ports impacts the competitiveness of exporters situated
inland vis-à-vis exporters located near the coastal areas as they have to bear the
cost of excessive inland freight charges. The Committee, therefore,
recommends that a distance based concession in the rail freight should be
provided to the exporters located away from the sea port to ensure that
they are able to deliver their export at a competitive rate.
26
CHARGES ON MOVEMENT OF EMPTY CONTAINERS FROM PORTS TO INLAND
CONTAINER DEPOTS (ICDs)
16.8 With regard to movement of empty container from port to Inland
Container Depots (ICDs), the Committee was informed that the Railways has
reduced the cost of moving empty containers by 50 per cent which has been
widely appreciated by exporters. However, there have been practical problems
faced by exporters and importers. During interaction with stakeholders, it was
brought to the attention of the Committee that now (after the Covid-19)
exporters and importers are not dealing directly with the Railways but with the
shipping line. Earlier, only importers were required to deal with the shipping
lines and pay charges of the inland haulage movement at the rate prescribed by
Container Corporation of India (CONCOR). Now, both exporters and importers
are required to pay the inland haulage charge and the rate is fixed by the
shipping line which is above the CONCOR rate.
16.9 The Committee is deeply concerned by the exorbitant rates charged
by the intermediary, i.e., the shipping lines on movement of empty
containers from port to Inland Container Depots (ICDs). The Committee
observes that the rate charged by the shipping lines negated the 50 per cent
concession provided by Railways for movement of empty containers and
might have impacted the profitability and overall competitiveness of our
exports. The Committee, therefore, recommends the Ministry of Railways
to consult with relevant stakeholders and address the issue on an urgent
basis. The Committee further recommends that the requirement of an
intermediary in this case may be abolished and appropriate strategy may
be worked out to enable importers/exporter to deal directly with Railways,
i.e., CONCOR for movement of empty container from ports to ICDs.
FREIGHT INCENTIVE SCHEMES
16.10 The Committee was informed that in order to attract freight traffic and
increase the share of railways, the Ministry of Railways has introduced the
following freight incentives schemes:
(i) Busy Season Charge@15 per cent which was levied during October-
June (with some exceptions) on all goods traffic has been withdrawn
from 01.10.2019 for all traffic; except Iron Ore and POL traffic. This
has provided a direct and huge reduction in freight charges.
(ii) 40 per cent discount in freight is granted to fly ash traffic booked in
Open Stock; both in bagged condition as well as bulk/loose condition.
(iii) Short lead concession has been re-introduced from 01.07.2020 under
which discount in freight at the rate of 50 per cent, 25 per cent and 10
per cent is granted to the traffic booked up to 0-50 km, 51-75 km and
76-90 km respectively except Coal & Coke and Iron ore traffic.
(iv) Concession on long lead traffic has been introduced from 01.07.2020
for Coal & Coke, Iron ore and Iron & Steel traffic under which
27
discount in freight is granted for long lead traffic. Coal & Coke traffic
for distance >1400 km is granted 20 per cent concession, Iron & Steel
for distance >1600 km is granted 20 per cent concession; and Iron Ore
traffic for distance from 701 to 1500 and >1500 km is granted 15 per
cent and 20 per cent concession respectively.
(v) Distance base graded concession @20 per cent to 25 per cent for
transportation of Clinker for lead of 1000 km & more is also graded
under certain terms and conditions w.e.f 07.12.2020.
(vi) Distance base graded concession @25 per cent for transportation
of limestone for lead of 1500 km & more is also graded under certain
term & condition from w.e.f. 01.04.2021.
(vii) Non-levy of Terminal charges at unloading point for the traffic
booked to and from notified alternate goods shed instead of busy
goods shed. Terminal charge is otherwise levied at Rs. 20 per tonne
for goods sheds and Private Freight Terminals (PFTs). This intends to
offer efficient and faster handling of goods at less busy terminals for
benefit of customer. This will also help Indian Railway in better
utilization of its terminal infrastructure.
(viii) Premium indent implemented w.e.f 11.12.2020 for benefit of freight
customers in sidings and goods sheds on payment of 5 per cent
premium on base freight. Now, the rate has been revised from 5 per
cent to 15 per cent w.e.f. 26.02.2021. The scheme is optional.
16.11 The Committee takes cognizance of the efforts taken by the Ministry
for easing rail freight charges and opines that the incentives provided are
in the right direction for expanding the share of rail in freight traffic. The
Committee, however, observes that most of the incentives provided has
been implemented recently and seem to be a reactive measure to the
hardship caused by the COVID-19 pandemic. The Committee further
observes that there has been no mention of the time period for operation of
these incentives which can disincentivize potential investors in the sector as
they look at the long-term opportunity in the sector. The Committee is of
the view that a more proactive, rather than reactive approach, along with
long term strategy is required to attract freight traffic in the rail sector.
The Committee also opines that transparency and clarity in the incentive
schemes are required to attract investment. The Committee, therefore,
recommends that time period for operation of these incentives may be
clearly specified along with the guidelines for availing the incentives so that
exporters as well as potential investors can plan their investment in the
sector accordingly. This will incentivize exporter to plan their mode of
transport accordingly and enable them to shift to rail in the long run.
28
EXPANSION OF FREIGHT BASKET
16.12 In order to gain larger share of new traffic under Container traffic,
Ministry of Railways has undertaken the following action:
(i) In view of its condition due to COVID19, there was no Haulage Charge
for movement of empty containers and empty flat wagons from
24.03.2020 till 31.05.2020. This is expected to give a boost not only to
Indian Railways but also the economy by aiding exports. Thereafter, 25
per cent concession has been permitted on Haulage Charge for movement
of empty containers and empty flat wagons till 30.04.2021.
(ii) 5 per cent concession on Haulage Charge per Twenty-foot Equivalent
Unit (TEU) rates has been permitted on loaded containers with effect
from 04.08.2020 to 30.04.2021.
(iii) Terminal Access Charge (TAC) - Concession at 50 per cent has been
granted on container traffic handled at Group-III CRTs (Container Rail
Terminals).
(iv) Round trip-based charging implemented to provide an economical and
reliable alternative for ultra-short lead (up to 50 km) container traffic
which is moving at Haulage Charge per TEU rates. This policy has
extended up to 30.04.2022.
(v) Introduction of Cube Container for two wheeler automobile traffic: To
attract the two wheeler automobile traffic, Indian Railway has introduced
new innovative cube container. Six cube containers shall be loaded in
one BLC wagon together. Guideline of haulage charge of cube container
has been notified on 7.01.2021.
(vi) Stabling charges for container traffic are not being levied from
18.05.2020 to 31.03.2021 as a relief measure during difficult economic
conditions prevailing currently. Stabling Charges are levied for
occupation of railway lines by container wagons.
16.13 The Committee appreciates the measures taken by the Ministry for
expanding the freight basket of rail freight. A closer analysis of the
measures taken by the Ministry, however, reveals that most of them are
time-bound and short-term measures without any indication/assurance of
extending them in the long run. The Committee opines that these time-
bound relaxations/measures, while they may be beneficial in the short-run,
will not attract exporters/investors to take long term commitments and
invest their resources in the long run. The Committee, therefore,
recommends the Ministry to work together with relevant stakeholders and
institute a proactive and long-term strategy to gain larger share under the
new container traffic.
CROSS-SUBSIDIZATION OF PASSENGER AND FREIGHT TRAINS
29
16.14 The Ministry of Railways submitted that railways have traditionally
cross-subsidized passenger business through their freight business as a result of
which Railway freight rates have increased regularly. The last freight
rationalisation was implemented with effect from 01.11.2018 wherein base
freight rate was increased by 8.75 per cent. However, the base freight rate of
certain commodities such as Food grains, Fertilizers, Petroleum, Oil and
Lubricant (POL), Sugar, Salt, Edible oils and Cement were kept unchanged.
16.15 The Committee was informed that Indian Railways is committed to
providing affordable transportation to the poorest section of the society. In
fulfillment of this commitment, the passenger fares have traditionally been kept
at low level particularly for second class ordinary and suburban passengers who
constitute about 80 per cent of the total passenger traffic. Further, Indian
Railways also carried out certain transport activities which are uneconomic in
nature and are carried out in the larger interest of the country. The tariff policy
of Indian Railways has traditionally been one of restraint with regard to increase
in passenger fare. Indian Railways continues to incur losses every year by
performing a variety of un-remunerative service, which imposes a heavy burden
on Indian Railways’ finances. The overall losses incurred on coaching operation
services and on essential commodities carried below the cost of operation was
Rs. 20,438 crore in 2009-10 & Rs. 58,729 crore in 2019-20.
16.16 Year-wise change in freight rate since 2011-12 is given below:
Year Change in Freight Rate
2011-12 The Base Class (Class 100) revised with
Rationalization of Distance Slabs with effect from
06.03.2012 by average increase of 25 per cent.
2013-14 With a view to rationally insulate Railways’
finances particularly in the context of deregulation
of High-Speed Diesel (HSD) oil, Ministry of
Railways has introduced Fuel Adjustment
Component (FAC)-linked tariff revision since
April 2013. The following revision in tariff has
been carried out:
(i) Fuel Adjustment Component (FAC) –
linked revision was introduced only in
the case of freight tariffs with effect from
1.04.2013.
(ii) Fuel Adjustment Component (FAC) –
linked revision was introduced in freight
tariffs with effect from 07.10.2013; an
across-the-board increase of about 1.7
per cent in freight rates has been done.
2014-15 Freight rates have been rationalized w.e.f
30
Year Change in Freight Rate
25.06.2014 by a flat 5 per cent increase in freight
rates. Inclusive of FAC (i.e., 1.4 per cent), the
increase in freight rates has been 6.5 per cent for
major commodities.
2015-16 Freight rates have been increased by 10 per cent
with effect from 01.04.2015 along with
rationalization in distance slabs. The increases in
case of major commodities have been lower, as
classifications of these commodities have been
reduced.
2018-19 Freight rate has been rationalized w.e.f.
01.11.2018 by increasing 8.75 per cent on all
commodities except food grain, fertilizers, POL,
sugar, salt, edible oils and cement. Source: Ministry of Railways
16.17 The Committee was also informed that evaluation of various alternatives
relating to rationalization of freight rates, reducing cost and to improve the
freight earnings is an on-going process. Recently, Indian Railways has taken a
number of initiatives to improve the traffic growth such as, adoption of rake
load concept, containerization, designing new wagons with higher payload,
Long Term Tariff Contract Policy, Own Your Wagon Scheme, Private Freight
Terminal Policy and Freight Incentive Schemes. Further, with the aim to
provide competitive rail freight rates, concessions like Automatic Freight
Rebate concession in traffic loaded in Traditional Empty Flow Directions
(TEFD), station to station (STS) rate, long lead concession, short lead
concession, Round trip policy, etc., has been introduced.
16.18 The Committee appreciates the commitment of the Indian Railways
for providing affordable mode of transport to the majority of the
population. It also takes cognizance of the measures taken by the Ministry
for reducing the freight rate and improving traffic growth without
compromising on providing affordable travel for passenger traffic. The
Committee, however, finds the rapid increase in freight rate to be
alarming. It observes that the rail freight rate witnessed a cumulative
increase of around 51.95 per cent since 2011-12 as a result of freight
rationalization. The Committee opines that reduction in freight rate and
providing freight rate comparable to other competing countries is crucial
for maintaining export competitiveness in the global market. The
Committee, therefore, recommends the Ministry to implement the outlined
policies/concessions to address the issues of continuous increase in freight
rate. The Committee further recommends the Ministry to look for other
31
avenues for raising revenue such as monetization of railway terminals and
stations, railway land parcels, multi-functional complexes and stadiums,
etc., to ease out the brunt of cross-subsidization on freight rate.
EXPORT TRAFFIC HANDLED BY INDIAN RAILWAYS AND LINE
UTILIZATION
17.1 On enquiring about the availability of trains for catering export traffic to
gateway ports, the Department informed that the total export traffic moved by
railways to ports was to the tune of 80 rakes per day during current fiscal 2021-
22 (till 15th
July 2021) as compared to 72 rakes per day during same period in
2020-21. It was further informed that the Indian Railways have a fleet of about
2.93 lakh wagons comprising open and covered wagons which are handled at
ports for carrying export cargo and about 0.37 lakh private container wagons
which are handled at Inland Cargo Depots/Container Freight Stations
(ICDs/CFSs) and various ports.
17.2 On enquiring about the utilization of various railway lines, it was
informed that 7 major routes which have been identified as High Density
Networks (HDNs), with a length of 11,295 km carries 60 per cent of freight
traffic of Indian Railways. Besides, another 36 per cent of the freight traffic is
carried by 11 Highly Utilized Networks (HUNs) routes having a length of
23,347 km. Therefore, 96 per cent of the freight traffic of the Indian Railways is
handled by the HDNs and HUNs with a total length of 34, 642 km comprising
of 51 per cent of the total route of Indian Railway. To ensure optimal utilization
of railway lines, the Indian Railways has prioritized works in the railway lines
identified as Super Critical (58 works) and Critical (68 works).
17.3 The Committee notes that 96 per cent of the freight traffic of the
Indian Railways is being handled by the High Density Networks (HDNs)
and Highly Utilized Networks (HUNs) with a total length of 34, 642 km
comprising of 51 per cent of the total route of Indian Railway. The
Committee, therefore, observes that there is an imbalance in capacity
utilization of the railway network and the capacity of 7 HDNs and 11 HUNs
must have been overutilized. NITI Aayog in its report titled, ‘Fast-
Tracking Freight in India’ has highlighted that 80 per cent capacity
utilization is considered to be ideal for seamless movement of freight
traffic. The Committee opines that the over-utilization of capacity in these
18 networks will compromise safety and efficiency in freight movement.
The Committee, therefore, recommends the Ministry to fast-track the
construction of railway lines identified as critical and super critical to ease
the load on these 18 networks. The Committee further recommends the
Ministry to consult with relevant stakeholders/Ministries/Departments to
formulate strategy for a better spatial distribution of freight traffic and
32
divert freight traffic from the 18 over-utilized networks to other railway
networks so as to address the imbalance in capacity utilization.
TRANSIT TIME AND PUNCTUALITY
18.1 Transit time is one of key drivers of the modal choice along with cost of
transportation. The Committee was informed that average freight speeds of
Indian Railway has stagnated at 23-24 km per hour for a long time primarily
due to oversaturation of the network and bottlenecks at important junction
points. Indian Railways has approached the issue of low freight train speeds in a
holistic manner and is addressing the issue through multiple synchronised
strategies. As a result of these efforts the average freight train speeds in 2020-21
have increased to the level of 43.03 km per hour as against 23.6 km per hour
achieved in 2019-20. Presently, it has stabilised around 45 km per hour and a
target of 50 km per hour has been set for freight trains. To sustain these
increased level of improved transit times Indian Railway has taken the
following steps:
a) Creation of Dedicated freight paths through Zero Based time table;
b) Increasing the maximum permissible speed of freight wagons to 75 km
per hour for loaded and 100 km per hour for empty wagons;
c) Completion of two dedicated freight corridors;
d) Targeted Completion of super critical and critical doubling, multi
tracking, and traffic facility works; and
e) Introduction of time tabled Container and parcel trains. Improvement of
goods sheds and development of alternate terminal to improve
loading/unloading of cargo is required.
18.2 The Committee observes that the average speed of freight trains has
increased to 45 km per hour in 2020-21 from 23.6 km per hour in 2019-20.
The Committee takes cognizance of this increase in freight speed and
appreciate the effort undertaken by Ministry to achieve this feat. The
Committee, however, is apprehensive that the gain achieved in freight
speed during 2020-21 might have been due to the non-operation of
passenger trains due to COVID-19 restrictions thus easing traffic
movement for freight train. If this is the case, the Committee opines that
the average speed of freight trains will reduce after the lockdown is lifted
and passenger trains start running in full capacity as passenger and freight
trains share the same tracks, and passenger trains often receive higher
priority. The Committee is of the view that the above five points outlined
by the Ministry can provide the long term solution to sustain the increase
in speed of freight train and attain the target of 50 km per hour. The
Committee, therefore, recommends the Ministry to give utmost priority to
upgradation and modernization of railway infrastructure and ensure that
33
the projects undertaken and targets set are implemented and achieved in a
time bound manner.
18.3 The Committee notes that the Indian Railways has released a draft key
performance indicator for private train operators wherein it has been proposed
that private players would have to maintain 95 per cent punctuality and
penalties would be charged if they reached late or early from the stipulated time.
On enquiring whether the same standard can be applied to Government run
trains, the Railway Ministry of Railways informed that punctuality of trains has
been accorded the highest priority on Indian Railways. The punctuality of trains
is being monitored at Divisional level, Zonal level and Board level. Analysis of
the cause responsible for loss of punctuality like asset failures, infrastructural
and safety works, law and order problems, run over incidents, bad weather,
alarm chain pulling and congestion en-route is also done and remedial steps
taken to improve punctuality. Some factors responsible for loss of punctuality
are beyond the control of Railways like bad weather, miscreant activities,
agitations, cattle run-over etc. In view of the above, the Ministry of Railways
informed in the written reply that incorporation of the clause for maintenance of
95 percent punctuality for Government run trains is not practical.
18.4 The Committee opines that punctuality of railways is critical in
timely delivery of export consignments and also timely clearance of cargoes
at gateway ports to avoid congestion. The Committee, therefore,
recommends that the Ministry formulate an applicable standard for
ensuring punctuality of Government run trains and levy a penalty for delay
beyond a reasonable time.
18.5 The Committee recommends the Ministry to adopt latest technology
and emulate best practices around the world to monitor railway assets so
that any malfunction in rail infrastructure can be detected in real time and
repair work carried out swiftly without causing undue delay in train
movement. Further, regulation of railway traffic can be done using latest
technology so as to ensure seamless management of railway traffic and
avoid congestions at choke points. To deal with the menace of law and
order and chain pulling, stringent law/rules should be instituted imposing
strict penalty on anyone or group causing disturbance on the movement of
railways and adequate security should be deployed along critical railway
networks to prevent unwanted law and order situation and ensure strict
enforcement.
LOADING AT TERMINALS AND INTER-TERMINAL SHIFTING
18.6 During interaction with stakeholders, the Committee was informed that
non-availability of skilled manpower to handle cargo at terminals, long time
taken during loading at terminals and inter-terminal shifting has adversely
34
impacted punctuality of railways and losses due to unskilled manpower that
loads/ handles the goods in unprofessional ways thereby damaging the goods.
18.7 The Committee opines that shifting from manual handling processes
and mechanization and technological upgradation of equipment will reduce
the time taken at terminals and during inter-terminal shifting. The
Committee, therefore, recommends the Ministry to fast-track technology
upgradation and mechanization of equipment and facilities and terminals.
Support may be provided to terminal operators by providing appropriate
incentives for acquiring the required equipment and to undertake
technology upgradation. Further, regular and neoteric trainings should be
provided through structured training programmes to field staffs posted at
freight stations/terminals in order to equip them to provide efficient
processing of cargos.
INTEGRATION OF CENTRAL-STATE PORTALS
18.8 The Committee was informed that Ministry of Railways have taken
various steps like integration of State Government modules, namely, Integrated
Mines and Minerals Management System (I3MS) of Government of Odisha,
and Jharkhand Integrated Mines and Mineral Management System (JIMMS) of
Government of Jharkhand with Railway’s Freight Operation Information
System (FOIS) for loading of iron-ore from Odisha and Jharkhand areas thereby
reducing paperwork to large extent and facilitating ease of doing business.
18.9 The Committee opines that the integration of State Government
modules with Railway’s Freight Operation Information System (FOIS) for
loading of iron-ore from Odisha and Jharkhand are in the right direction
for attaining better multi-modal operations. The Committee, therefore,
recommends the Ministry to take measures for wider coverage of such
integration and involve other States and cover wider number of
goods/products.
TIME TAKEN BY RAIL VIS-À-VIS ROAD
18.10 During deliberations with the stakeholders, the Committee was informed
that with the exception of a couple of major Inland Container Depots (ICDs),
where a proper time-table and scheduled trains is maintained, in the smaller
ICDs, there are no proper time table and schedule of trains. Trains are available
only twice a week i.e., Monday and Tuesday and there is a gap of around four-
five or six-seven days. Therefore, exporters do not find shipments by rail as a
viable mode.
18.11 The Committee is of the view that the longer time taken by train vis-
à-vis road needs to be addressed urgently to increase the share of rail
freight. The Committee, therefore, recommends the Ministry to conduct a
cross-country study on the issues identified above and address the same in
a structured manner. The Committee also recommends that the frequency
35
and availability of trains from ICDs to ports must be increased and a
proper time-table for running of trains should be worked out for each ICD
depending on the volume of cargo handled at each ICD. Further, to reduce
the transit time of railways, the Committee recommends the Ministry to
work out a feasible method to provide door to door services using railway
logistics in consultation with relevant stakeholders.
REGISTRATION OF DEMAND (e-RD) & ELECTRONIC
TRANSMISSION OF RAILWAY RECEIPT (eT-RR)
19.1 The Committee was informed that the Ministry of Railways has provided
digital platform for registering demand for wagon and paperless transaction of
railway receipt through the Registration of demand for wagons electronically (e-
RD) and Electronic Transmission of Railway Receipt (eT-RR) portal. The
Registration of demand for wagons electronically (e-RD) has been implemented
to provide electronic demand facility through Freight Operations Information
System (FOIS) website, wherein, customer can register their demand for
wagons electronically. This facility has been extended to Container traffic,
Freight Forwarders, Iron & Steel, Iron Ore, Salt and Granite traffic. The
Electronic Transmission of Railway Receipt (eT-RR) has been launched to
provide paperless transaction system where Railway Receipt is generated and
transmitted electronically to customer through FOIS, and even delivery of
goods is given through e-surrender of eT-RR. This facility has been extended to
container traffic, Freight Forwarders, Iron & Steel, Iron Ore, Salt and Granite
traffic. Zonal Railways have been asked to take necessary steps for proliferation
of eT-RR. As on 30th
June, 2021, the number of customer registered under e-RD
was 12,060 and around 94 per cent demand has been registered through e-RD
mode for goods traffic other than Railway Material Consignment and Container
Traffic (for which demand is placed through Demand cum Release option).
19.2 The Committee takes cognizance of the measures taken by the
Ministry for easing the process of cargo movement by providing online
platforms, namely, Registration of demand for wagons electronically (e-
RD) and Electronic Transmission of Railway Receipt (eT-RR). For
enhancing the functioning and seamless transaction of business in the
portals, the Committee recommends the following:
(i) The portal has been reported to be functional only between 6
A.M. to 10 P.M. This should be functional round the clock to
facilitate exporters to effectively utilize the portal;
(ii) Payment of Demurrage Charge and Wharfage Charge should
be available online as it causes lot of difficulty to outstation
customers;
(iii) Waiver applications for Demurrage Charge, Wharfage Charge
and other such charges should be made available online;
36
(iv) Customers should be made aware, through online system, 48
hours before placement of rake, to enable the customer to make
arrangements for rake loading in a timely manner and avoid
detention of rake;
(v) Refund of withdrawn indent should be made in a time bound
manner and in case of delay, interest may be provided; and
(vi) The restriction on the number of indent placement by
Northeast Frontier Railway and East Central Railway in online
system in their zones needs to be removed.
DEDICATED FREIGHT CORRIDOR (DFC)
20.1 The Ministry of Railways has been implementing two Dedicated Freight
Corridor projects, viz., Eastern Dedicated Freight Corridor (EDFC) from
Ludhiana to Sonnagar (1,337 km) and Western Dedicated Freight Corridor
(WDFC) from Dadri to Jawaharlal Nehru Port Trust (JNPT) (1,506 km). The
Sonnagar-Dankuni (538 km) extension of EDFC has been planned for execution
on Public Private Partnership (PPP) mode.
STATUS OF THE PROJECT
20.2 The Committee was informed that the estimated cost of the two
Dedicated Freight Corridors has been assessed at Rs. 81,459 crore (Western
Dedicated Freight Corridor - Rs. 51,101 crore and Eastern Dedicated Freight
Corridor - Rs. 30,358 crore) as per the Revised Cost Estimate approved in June,
2015. The project was initiated in 2005 at a cost of Rs.21,140 crore. However,
the cost was increased to Rs. 81,459 in 2015. Currently, 70 per cent of total
allocation has been disbursed, 99.9 per cent of the land required for the project
has been acquired and 100 per cent contracts valued Rs.56,952 crore has been
awarded. The total expenditure on the project till 31.03.2021 has been Rs.
74,177 crore (including cost of land). Further, three more Dedicated Freight
Corridors from Bhusawal to Kharagpur, Chennai to Vijaywada and Vijaywada
to Kharagpur are being considered and DPR being prepared.
20.3 On enquiring about the status of the project, the Committee was informed
that 1,110 km of the Dedicated Freight Corridor, 451 km of EDFC and 659 km
of WDFC, have been completed out of the total 2,843 km. Further, New
Bhaupur-New Khurja section (approx. 351 km) of the EDFC and New Rewari -
New Kishangarh- Madar (306 km) section of WDFC has been commissioned
for traffic on 29th December, 2020 and 7
th January, 2021 respectively.
Further, Ganjkhwaja-Chirailpathu (100 km) section of EDFC and Madar-
Palanpur (335 km) have also been completed and will be ready for
commissioning in July, 2021 and all sections of EDFC (excluding Sonnagar-
Dankuni section) and WDFC are targeted for completion in phases by June
2022.
37
20.4 The Committee takes note that the Dedicated Freight Corridor was
announced way back in April, 2005. The Committee is discontented to note
16 years has passed since the announcement of the project and only 39.04
per cent of the targeted length has been completed till date. Further, only
23.10 per cent of the targeted length has been commissioned for traffic as
on date. The Committee is deeply distressed by the slow pace in
construction of such crucial project. The Committee is also concerned with
the rising cost of completion of Dedicated Freight Corridors as it is lagging
behind schedule and resulting in cost overrun. The complete
commissioning of the project is crucial for easing the congestion in railway
traffic and bringing down logistics cost, particularly rail freight. The
Committee, therefore, recommends the Ministry to fast-track the
construction of the project, undertake real-time monitoring of progress
and ensure that all sections of the project are completed and commissioned
for traffic by June, 2022 without any further delay.
SPECIAL DESIGN FEATURES
20.5 The Committee was informed that the Dedicated Freight Corridor has
been designed for running of heavier trains of 25 tonne axle load with a
maximum moving dimension more liberal and comparable to world standards.
Further, the DFC will have a trailing load of 13,000 metric tonnes as against the
present trailing load of 5,400 metric tonnes on Indian Railways and will have
the capacity to run 120 trains each way with long haul trains (1.5 km vis-à-vis
700 m). Also, the WDFC is designed to run double-stack container trains. The
maximum permissible speed on DFC is 100 km per hour.
20.6 The following table compares the features of existing Indian Railways
network with DFC:
Features Existing DFC network
Axle Load 22.9 t
(mostly)
25 t
(Bridges and formation 32.5 t)
Track Loading Density 8.67 t/m 12 t/m
Maximum Moving Dimensions
Height 4.265 m EDFC – 5.1 m
WDFC – 7.1 m - (WDFC Fit
for Double Stack Container
Movement)
Width 3200 mm 3660 mm
Train Length 700 m 1500 m
Train Load 5000 t 13,000 t
Maximum Speed 75 Kmph 100 kmph Source: Ministry of Railways
38
20.7 On complete commissioning of Dedicated Freight Corridors, Indian
Railways will be able to offer higher transport output with faster transit time
and increase in average speed of trains. This would greatly improve the supply
chain efficiency for the industries/logistics players, etc., in its catchment areas
leading to additional freight volumes. Improved connectivity for the ports with
the planned double stack container trains on WDFC and its feeder routes will
boost the EXIM traffic as well. Once fully operational, 70 per cent of the goods
trains will shift to the DFC, thereby freeing up the existing tracks entirely for
passenger trains.
20.8 The Ministry of Railways informed the Committee that the progress of
DFC projects faced severe setback during the second wave of COVID-19 in
April-May 2021, as the workforce has been reduced to 50 per cent and large
number of staff/contract workers were affected by the pandemic. Further,
lockdowns, curfew and restrictions by State Governments have severely
affected the progress. Despite above setbacks, several mitigation measures were
undertaken to keep up the momentum of project implementation and to
minimise the impact of pandemic, which primarily include following strict
COVID-19 safety protocol, creation of bio-bubble work environment,
arrangement for oxygen concentrators and tele-consultation for remote
locations. Apart from these, the implementation of the projects faced other
challenges including balance land acquisition of 14 patches covering 10.2 km in
the state of Maharashtra and Uttar Pradesh and delay in construction of Road-
Over-Bridges (ROBs) by State Governments.
20.9 The Committee recommends the Ministry to address the issues of
acquisition of land in the state of Maharashtra and Uttar Pradesh and
delay in construction of Road-Over-Bridges (ROBs) by State Governments
by coordinating with the respective State Governments and ensure that the
progress of the project does not delay any further due to these issues.
20.10 During the deliberations, the Committee came to know that Road-Over-
Bridges (ROBs) are built in the Dedicated Freight Corridors and also in other
places on rail line to facilitate smooth movement of vehicular traffic and trains
simultaneously. However, most of the RoBs were faulty, resulting in stagnation
of water, accidents due to faulty curves, etc.
20.11 The Committee recommends that survey should be made of all the
RoB built under the Dedicated Freight Corridors and MPs/MLAs may be
consulted while proposing a RoB so that the local conditions may be put
forward at the initial stage and RoB worked out in consultation with
stakeholders.
KISAN RAIL
21.1 The Committee notes that India’s agriculture exports grew by 17.34 per
cent (USD 41 billion) in 2020-21. Considering the vast potential of the sector,
39
the Committee enquired whether the Ministry of Railways has undertaken any
specific measures for catering to agricultural export traffic through its Kisan
Rail scheme. The Committee was informed that Kisan Rail trains have been
conceptualized to transport perishables and farm-produce from production/
surplus regions to consumption/deficit regions within the country and are being
operated on routes decided in consultation with Ministry of Agriculture,
concerned departments of State governments, and other stake-holders such as
farmers’ organizations, mandis, and traders’ associations. So far no demand for
running of Kisan Rail trains to ports has been received.
21.2 The Committee opines that leveraging the Kisan Rail scheme for
catering to our agricultural export traffic will provide a huge boost to our
exports. The Committee, therefore, recommends the Ministry to formulate
the required guidelines/rules for the use of Kisan Rail for agricultural
export through ports as per requirement. The Committee further
recommends the Ministry to create awareness among exporters regarding
the scheme so that more number of exporters and producers avail the
scheme.
OTHER RAIL PROJECTS
22.1 The Committee was informed that a participative policy for execution of
rail connectivity project has been in place comprising of models, namely, Non-
Government Rail (NGR), Joint Venture (JV), customer funded, Build-operate-
Transfer (BOT) & Annuity model. These schemes enable execution of rail
connectivity project through participation of stakeholders and investors. Under
these models, 14 projects valued at Rs. 9,234 crore have been completed and 10
projects valued at Rs. 19,417 crore are currently under implementation and 8
project valued at Rs. 13,421 crore have been given in-principal approval.
22.2 During interaction with stakeholders and in reply to written queries, the
Committee was informed that several critical railway projects were stalled due
to various issues which need immediate attention to augment the railway
infrastructure and ease the movement of export consignments. The various
pending projects are listed below:
(i) Hassan Mangalore tunnel Project: The project has been stalled due to
pending environment clearance by the forest Department. The Completion of
the project will ease cargo movement form Bangalore and hinterland of
Karnataka to Mangalore Port faster. Currently, the entire cargo generated in
Bangalore and surrounding areas need to move to Chennai Port for export due
to this bottleneck.
(ii) Container Trains: The proposal to start container trains from
Coimbatore to Tuticorin, Coimbatore to Kattupallai, Ennore, Chennai and
Cochin has been pending for several years.
40
(iii) Mumbai Ahmedabad High-Speed Rail: The 508.17 km Mumbai-
Ahmedabad High-Speed Rail Corridor connecting Mumbai with the city of
Ahmedabad through 12 stations at an estimated cost of Rs 1.1 lakh crore has not
made notable progress. Trains on the line will operate at a speed of 320 km per
hour on an elevated viaduct 10-15 m above.
(iv) Railway line from Khandwa to Dhar via Khargone and Barwani: In
2014, the clearance to this line was given and a report was forwarded to the
Ministry of Railway. This railway line will be laid on 157-km Chhota Udaipur-
Dhar rail line to be built at a cost of Rs. 1,286 crore. Currently, the first section
of this line between Chhota Udaipur and Alirajpur with the length of 49 km was
opened on 30th
October 2019 and the second section between Alirajpur–Dhar
with a length of 108 km of this line is under construction. The completion of
this line will reduce the distance between Indore (which includes ICD) to
Mumbai resulting in reduction in cost for movement of goods.
22.3 The Ministry of Railways in their written reply to the Committee
mentioned that execution depends on various factors which includes expeditious
land acquisition by State Government, forest clearance by officials of forest
department, shifting of infringing utilities, statutory clearances from various
authorities, geological and topographical conditions of area, law and order
situation in the area of project site, number of working months in a year for
particular project site due to climatic conditions, etc. Further, as the funding for
the project is entirely arranged through equity and debt of the SPV company,
delay in financial closure has also affected the project execution. Regular
monitoring with the Special Purpose Vehicles (SPVs) is being done to expedite
the execution of the projects undertaken by the SPVs under participative policy.
22.4 The Committee takes note of the issues faced by the Ministry in
execution of the railway projects. The Committee recommends the
Ministry to address the same in coordination with the concerned
stakeholder and take proactive steps to resolve the issues in a timely
manner and ensure that execution of the project does not get delayed due
to such issues.
22.5 The Committee recommends the Ministry to promptly address the
issues in consultation with stakeholders with regard to Hassan Mangalore
tunnel Project, container trains from Coimbatore to Tuticorin, Coimbatore
to Kattupallai, Ennore, Chennai and Cochin, Mumbai Ahmedabad High-
Speed Rail and Railway line from Khandwa to Dhar via Khargone and
Barwani. The Committee further recommends the Ministry to furnish a
status note on these issues in its action taken reply.
REORGANISATION OF RAILWAY ZONES
23.1 The Committee was informed that setting up of a new South Coast
Railway (SCoR) Zone with headquarter at Visakhapatnam has already been
41
approved. Further, a Detailed Project Report (DPR) has been submitted for
setting up of new SCoR Zone and is currently under examination by the
Ministry of Railways. In the meantime, an umbrella work titled “Creation of
new South Coast Railway Zone and new Rayagada Division in East Coast
Railway” has been included in Budget 2020-21 at an estimated cost of Rs.170
crore. It was further informed that the DPR is still under examination and no
time-frame can be fixed for operationalisation of the new zone.
23.2 On enquiring about the reasons for dismantling of Waltair Divison, which
is the 5th highest revenue generating division of the Indian Railways, the
Ministry of Railways informed that the present divisional establishment at
Visakhapatnam is being discontinued purely on administrative grounds with the
setting up of new zonal headquarters at Visakhapatnam. The Ministry of
Railways further informed that the continuance of Waltair Divison will no
longer bring any value addition either in day-to-day operations or in long term
railway development of the area. With the widespread usage of Information
Technology based systems on railways, the merger of truncated Waltair division
with the neighbouring Vijayawada division as a part of South Coast Railway
can be achieved seamlessly without any difficulty. While forming new South
Coast Railway Zone, most of the present railway establishment based at
Visakhapatnam, barring the divisional office, would be retained. The
Committee was further informed that majority of the railway staff presently
based at Visakhapatnam, including Waltair Divisional office will be retained at
Visakhapatnam itself to the extent feasible. The decision for formation of a new
Railway Zone, namely, South Coast Railway (SCoR) with headquarter at
Visakhapatnam and its territorial jurisdiction had been taken after due
consideration taking all relevant factors into account including administrative
and operational requirements.
23.3 The Committee is discontented to note that the Ministry is still in the
process of examination of Detailed Project Report on setting up of a new
South Coast Railway (SCoR) Zone with headquarter at Visakhapatnam.
The Committee, therefore, recommends the Ministry to fast-track the
process of setting up the SCoR Zone and a status note on the same may be
furnished in action taken replies.
23.4 The Committee fails to understand the logic behind the dismantling
of Waltair Division as the new South Coast Railway (SCoR), which is the
new zone within which the Waltair Division is proposed to be merged with,
is still at an examination of Detailed Project Report (DPR) stage with no
definite timeline for operationalization. The Committee, therefore,
recommends the Ministry of Railways to revisit the decision to dismantle
the Waltair Division and defer the process till the new zone is finalized and
operationalized.
42
RAILWAYS AND PORTS CONNECTIVITY
24.1 All major Ports are connected to rail networks and projects have been
undertaken to increase the capacity of connectivity as per priority. The
Committee enquired to the Ministry of Railways regarding rail connectivity
between manufacturing units to Vizag ports to which the Ministry of Railways
replied that traffic meant for various manufacturing units to Vizag Port moves
via Raipur, Jharsuguda, Kharagpur and Vizayawada. To facilitate uninterrupted
movement, East Coast Railway has taken up some works in its geographical
territory.
24.2 The Committee observes that the projects of East Coast Railways are
under various stages of development. The Committee recommends the
Ministry to ensure that these projects undertaken by East Coast Railways
are completed within the specified timeline. The Committee also observes
that Brundamal-Jharsuguda Flyover has been delayed due to land
acquisition problem. The Committee, therefore, recommends the Ministry
to coordinate with the concerned State Government to address the issue. A
status note in this regard may be furnished in the action taken replies.
CONGESTION AT PORTS
24.3 The Ministry of Railways informed that there are issues of handling
constraints at ports which impact the unloading performance of export cargo
thereby affecting punctuality or its timely arrival at concerned ports.
24.4 The Committee recommends the Ministry to identify the issues of
handling constraints at ports affecting the punctuality of railways and
work in coordination with Port Authorities and other relevant stakeholders
to address the issues effectively to improve unloading performance at port
terminals.
RAIL INFRASTRUCTURE IN NORTH EASTERN REGION
25.1 With an emphasis on providing rail connectivity to the entire North
Eastern (NE) region, Indian Railways has accelerated the construction of rail
infrastructure in the region bringing all the North Eastern States on the Indian
rail network. To facilitate better rail connectivity, the Ministry of Railways in
their replies to the Committee informed that 20 (New Lines/Doubling) Projects,
covering a length of 2,011 km, at a cost of Rs. 74,485 crore, falling fully/partly
in North East Region are under different stage of planning/approval/execution.
These includes, 14 New Line Projects covering a length of 1,181 km at a cost of
Rs. 56,553 crore and 6 Doubling Projects, covering a length of 830 km at a cost
of Rs. 17,932 crore.
25.2 The total budget allocation for Infrastructure projects & safety works,
falling fully/ partly in North East Region in 2019-20 , 2020-21 and 2021-22 has
been Rs 4,909 crore, Rs 4,669 crore and Rs 6,913 crore respectively. The
43
details of rail projects that were completed between 2014-15 and 2020-21 are
given at Annexure V.
25.3 New Line projects have been taken up for connectivity of capital city of 5
States of North Eastern States, namely, Meghalaya (Shillong), Manipur
(Imphal), Nagaland (Kohima), Mizoram (Aizawl) and Sikkim (Gangtok) are
currently undertaken as shown below:
Sl.
No. Project State & Capital
Length
(in km)
1. Jiribam-Imphal Manipur (Imphal) 111
2. Bhairabi-Sairang Mizoram (Aizwal) 51
3. Dimapur (Dhansiri)-Kohima
(Zubza)
Nagaland (Kohima) 51
4 Teteliya-Byrnihat Meghalaya (Shillong) 22
Byrnihat-Shillong Meghalaya (Shillong) 108
5. Sivok-Rangpo Sikkim (Gangtok) 44 Source: Ministry of Railways
25.4 The Committee appreciates the measures taken by the Ministry for
augmenting rail infrastructure in the North Eastern region. The
Committee is hopeful that the expansion of the railway line will give a boost
to export from the region and provide much needed fillip for increased
industrialization in the region. The Committee is also hopeful that the
expansion of railway line will also boost our trade with neighbouring
countries, especially, Myanmar and further facilitate the realization of the
Act East Policy. The Committee recommends the Ministry to ensure that
ongoing projects are completed within a specified timeframe and that
adequate budgetary support is provided to this end.
25.5 The Committee is concerned about the upkeep and maintenance of
rail infrastructure in the region due to the geographical terrain and
climatic condition as the region is prone to flood and landslide. The
Committee, therefore, recommends that adequate budgetary allocation is
provided for maintenance of rail infrastructure in the region so that the full
potential of the railway line is realized.
25.6 The Committee also recommends that old tracks of Heritage trains in
North Eastern region may also be maintained and made functional along
with new routes/plans in North Eastern sector.
TRADE WITH BANGLADESH AND NEPAL
26.1 During the year 2020-21, Bangladesh and Nepal stood as the 9th and 10
th
largest export destinations for India. Therefore, the importance of these two
countries for our exports is extremely important. The imports of Bangladesh
44
from the world has increased from USD 20 billion to USD 46 billion in last ten
years and India occupies over 17 per cent share of Bangladesh imports. Similar
is the case for Nepal where its imports doubled to around USD 12 billion and
India’s share in their imports is over 70 per cent.
26.2 In order to facilitate cross-border trade with these two neighbouring
countries, the Committee was informed that freight trains has been in operation
between India and Bangladesh via four rail interchange points, namely, Gede-
Darsana, Petrapol-Benapole, Singhabad-Rohanpur and Radhikapur-Birol.
During the year 2020-21, 3.3 Million Tonnes of goods were exported to
Bangladesh via these four rail-interchange points in 1,290 freight trains.
Further, a fifth rail interchange point between India and Bangladesh has also
been reopened since 15th July, 2021 at Haldibari-Chilahati and freight trains will
start moving from 1st August, 2021. Freight train service between India and
Nepal has been in operation via Raxaul-Birganj. During the year 2020-21, 3.7
Million Tonnes of goods was exported to Nepal via this rail-connectivity.
26.3 The Committee observes that trade with Bangladesh has been
carried out via four rail interchange points with a fifth interchange point to
be operational from 1st August, 2021. The Committee recommends the
Ministry of Railways to ensure that adequate infrastructural support are
provided to these crucial interchange points and any issues/inadequacies in
infrastructure are promptly addressed in coordination with concerned
stakeholders/Departments/Ministries.
26.4 The Committee was informed that a number of rake allotments for export
consignment to Bangladesh via rail have been pending and the current allotment
has been inadequate to cater to the export volume. The Committee, therefore,
recommends the Ministry of Railways to examine the issue in detail in
consultation with concerned stakeholders and address the same so as to
maintain our foothold in the Bangladesh market.
26.5 The Committee also observes that only one rail interchange point is
available between India and Nepal. In view of the current trade volume
with Nepal and potential for expanding our export with the country, the
Committee opines that additional rail interchange points could be added
between India and Nepal. The Committee, therefore, recommends the
Ministry of Railways in consultation with the concerned
Departments/ministries to identify potential rail interchange point(s) and
undertake a detailed study to construct additional interchange points with
Nepal.
26.6 Apart from the cross-border trade, Bangladesh can play an important role
in transit of goods from North Eastern Region to destination ports because of
the shape of borders in the region. Bangladesh could serve as a transit country
for trade between North Eastern region and the rest of India as well as for
45
Bhutan and Nepal. Currently, trucks are not allowed to transit through
Bangladesh as a result of which North Eastern region is connected with the rest
of India only through the Siliguri corridor. The transit restriction leads to long
and costly routes between North Eastern region and the rest of India and the
world. For instance, goods from Agartala travel 1,600 km through the Siliguri
corridor to reach Kolkata Port instead of 450 km through Bangladesh.
26.7 The Committee finds that the issue of cross-border transit through
Bangladesh needs to be addressed urgently as it observes that the transit
restriction proved to be costly for movement of goods across the country as
well as for cross-border trade with Bhutan and Nepal. The Committee,
therefore, recommends the Government to discuss the issue with our
neighbouring counterparts at the appropriate level and address it at the
earliest.
26.8 The Committee, during interaction with stakeholders, was informed that
several transport and trade challenges exist while trading with Bangladesh
which account for the high cost of trade between Bangladesh and India. These
include inadequate transport infrastructure, protective tariffs and nontariff
barriers, and a broad trust deficit throughout the region. The Ministry of
Railways also informed that major trade with Bangladesh takes place through
the Petrapole border. However, there are challenges mainly due to limitations of
infrastructure on the Bangladesh side thereby limiting the cross border
movement of cargo trucks. Removing these constraints and integrating South
Asia have the potential of delivering significant economic gains.
26.9 The Committee observes that several transport and trade challenges
such as inadequate transport infrastructure, limitations of infrastructure
on the Bangladesh side, protective tariffs and nontariff barriers, and a
broad trust deficit throughout the region exist while trading with
Bangladesh resulting in high cost of trade between Bangladesh and India.
The Committee, therefore, recommends the Department of Commerce to
identify the tariff and non-tariff barriers and work out trade agreements
which is beneficial to both parties and stakeholders involved to ensure
uninterrupted trade between the two countries. Further, the Committee
recommends the Department of Commerce to identify the infrastructure
deficit on both side of the border and work in coordination with
neighbouring countries to augment the same. The Committee also opines
that peace and a sense of trust in the region is critical for ensuring
uninterrupted cross border trade. The Committee, therefore, recommends
the Government to work together with Bangladesh at appropriate level to
discuss the issues that hindered peaceful and cordial relationship with our
neighbour.
46
ROAD SECTOR
27.1 Road Transport plays a critical role in the economic growth of any
country. A robust, safe and well-maintained road network is key for providing
seamless movement and timely delivery of goods and ensuring the
competitiveness of our exports in the global market. The development and
maintenance of road in our country is overseen by the Ministry of Road
Transport and Highways. The tasks and responsibilities of the Ministry
encompass, inter alia, construction and maintenance of National Highways
(NHs); administration of the National Highways Act, 1956; National Highways
Authority of India Act, 1988; National Highways Fee (Determination of Rates
and Collection) Rules, 2008; Motor Vehicles Act 1988; and Central Motor
Vehicles Rules 1989, as also formulation of broad policies relating to road
transport and automotive norms, besides making arrangements for movement of
vehicular traffic with neighbouring countries.
27.2 The Committee was informed that India has the second largest road
network in the world, spanning a total of 62.18 lakh kilometers of which
1,39,299 km is National Highway, 1,76,818 km is State Highway and 59,02,539
km is other roads. Details on National Highways are given in the table below:
Year At present
Total NH Length in country (km) 1,39,299
NH Density (Country) in km / 1,000 sq. km 42.38
NH Density (Country in km / lakh population 11.53
State Roads approved “In-Principle” as new NH 42,916 Source: Ministry of Road Transport and Highways
CONSTRUCTION AND MAINTENANCE OF NATIONAL HIGHWAYS
28.1 The Committee enquired about the Departments/organizations/agencies
responsible for maintenance and upkeep of the roads as well as the year-wise
budget allocated and expenditure incurred for maintenance of roads. The
Ministry of Road Transport and Highways informed that the development and
maintenance of National Highways are taken through various agencies, such as
the National Highways Authority of India (NHAI), National Highways &
Infrastructure Development Corporation Ltd. (NHIDCL), State Governments /
UTs (through PWDs/ Road Construction Departments, etc.), Border Roads
Organization (BRO). The details of funds allocated/utilized for development as
well as maintenance of National Highways during each of the last five years and
current year from budgetary outlay and Internal and Extra Budgetary Resources
(IEBR) of NHAI are provided in the tables below-
47
Details of funds allocated/ utilized for development of National Highways
(₹ in crore) 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Alloc. Expd. Alloc. Expd. Alloc. Expd. Alloc. Expd. Alloc. Expd. Alloc.
Expd.
(Till
June,
2021)
Budget 41,327 40,623 50,160 49,645 67,582 66,774 72,600 66,584 91,297 88,204 73,212 31,466
IEBR 59,279 33,118 59,279 50,533 62,000 61,217 75,000 74,988 65,000 65,036 65,000 9,897
Total 1,00,606 73,741 1,09,439 1,00,178 1,29,582 1,27,991 1,47,600 1,41,572 1,56,297 1,53,240 1,38,212 41,363
Source: Ministry of Road Transport and Highways; IBER: Internal and Extra Budgetary Resources
Details of funds allocated/utilized for maintenance of National Highways (₹ in crore)
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Alloc. Expd. Alloc. Expd. Alloc. Expd. Alloc. Expd. Alloc. Expd. Alloc.
Expd.
(Till June,
2021)
2,847 2,503 2,967 2,655 2,331 1,697 2,000 1,594 2,654 2,660 2,361 507 Source: Ministry of Road Transport and Highways
28.2 The Ministry informed that the development and maintenance of National
Highways (NHs) is a continuous process and works are accordingly taken up on
as per availability of funds and inter-se priority to keep the NHs in traffic
worthy conditions. In order to ensure that the roads are in good condition, visual
as well as equipment based periodical monitoring of the highways has been
mandated. Under the equipment based monitoring, road condition survey and
roughness of pavement using Network Survey Vehicle and Laser Profilometer
is carried out twice a year. Further, strength of pavement using Falling Weight
Deflectometer is done annually and bridge inspections using Mobile Bridge
Inspection Unit (MBIU) is carried out twice a year.
28.3 The Committee observes that the budget allocated for maintenance
of National Highways (NHs) witnessed a reduction in 2021-22. The
Committee opines that with completion of the Bharatmala Pariyojana and
other road projects, the total length of NHs will increase further by 34,800
km in the next few years requiring enhance allocation for maintenance of
roads. The Committee, therefore, recommends the Ministry to ensure that
adequate budgetary allocation is provided for maintenance of NHs and that
the maintenance work are not impacted due to paucity of funds. The
Committee further recommends that the budgetary allocation for
maintenance should be increased correspondingly with the increasing
length of the NHs.
FREIGHT TRAFFIC AND FREIGHT RATES
29.1 The Committee was informed that majority of freight in India is handled
by road with a share of around 64 per cent of the total freight traffic. Upon
enquiring about the year-wise detail of the volume and value of goods
48
transported through roads during the last 5 years, the Ministry of Road
Transport and Highways in their written reply informed the Committee that it
does not have readily available data on this aspect. It further informed that the
Ministry has sourced the relevant data from publicly available resources, which
is as below:
Volume of goods transported in India vis-à-vis Europe, USA and China
Volume of Freight movement by Road
(in billion metric tons kilometre)
Year India Europe USA China
FY 2010-11 1287 1558 3668 4339
FY 2011-12 1408 1542 3860 5137
FY 2012-13 1516 1482 2660 5953
FY 2013-14 1652 1518 2927 5574
FY 2014-15 1823 1527 2857 5685
FY 2015-16 2027 1561 2899 5796
FY 2016-17 2260 1621 3009 6108 Source: As provided by Ministry of Road Transport and Highways
29.2 The Committee is perturbed to note that the Ministry of Road
Transport does not have readily available data on the year-wise value and
volume of goods that is transported through road in India and other
countries and has to rely on publicly available data. It is the strong opinion
of the Committee that such data is critical in taking impactful policy
decisions regarding the construction of roads, maintenance of vehicle
movements, to address issues of traffic congestions along various road
networks and face global challenges of competitive level in the export
sector. The Committee, therefore, recommends the Ministry to collate and
maintain data on these aspects to facilitate data based policy decision
making.
29.3 The Committee enquired about the average freight rates that are
applicable for movement of goods by way of road. The Ministry informed that
the average freight rate for road transport in India ranges between Rs. 2.50 per
ton / km. It further informed that the average freight rate in European Union
(EU) countries is € 0.189 per ton/km [Approx. Rs 5.48 per ton / km on PPP
(Purchase power parity) basis] and that of USA is 18.83 cent per ton/km
[Approx. Rs 3.94 per ton / km on PPP (Purchasing power parity) basis]. The
Ministry of Road Transport and Highways charged user fee for goods vehicles
at toll plazas at a rate as provided below:
49
(Value in ₹)
Vehicle Type Rate / Km
Car/Jeep/Van/LMV 1.24
LCV/LGV/Mini Bus 2.00
Truck/ Bus (2 axles) 4.18
Three axle Commercial Vehicles 4.56
HCM/EME/MAV (4 - 6 axles) 6.56
Oversized Vehicles (7 or more axles) 7.98 Source: Ministry of Road Transport and Highways
29.4 The Committee was informed that the presence of strong truckers unions
has hindered the movement of cargo in some States leading to increased
transaction cost. It was further informed that the truckers’ union restricts
participation of transporters from other States and charged freight rates much
higher than the market rates.
29.5 The Committee is elated to observe that the road freight rate in India
is lower than that of USA and European Union (EU) countries. This will
have a positive impact on our exports and provide the much needed
leverage for maintaining the competitiveness of our exports in the global
market. The Committee recommends the Ministry to ensure that a
competitive freight rate is maintained and other charges levied by the
Ministry are also fixed in such a way that it does not cause undue burden
on exporters.
29.6 The Committee is deeply concerned that truckers’ union restrict the
free movement of cargo trucks in certain States and levy freight charges
higher than market rates. The Committee recommends the Ministry
investigate on the issues and consult with the respective State Governments
to address the cartelisation of truckers’ union.
29.7 The Committee also recommends that a transparent policy measure
may be ensured for uniform rate structure for inter State freight
movement and any infringement dealt with strictly under the relevant Act
to deter any transport union from flouting the rules.
TRANSPORTATION EFFICIENCY
30.1 The transportation efficiency of a truck is determined by how much
distance it can cover daily, how much distance it covered with or without load,
and to what extent a truck is loaded. It is given to understand that the higher
utilization of trucks, i.e., longer distance covered by truck per day lowers cost of
transportation, a load factor close to 100 per cent is most effective and safe, and
a lower share of empty running translates to higher productivity. A comparative
50
data of these parameters vis-à-vis USA, China, BRICS and EU countries are
provided in the table below:
Sl.
No. Parameter India China USA & EU
1.
Daily Utilization- The
average daily distance
covered by truck (km)
164 km 180 km 820 km
2.
Empty running-
percentage of distance
travelled by truck without
any load (percent)
28-43% 20% 20%
3.
Load factor- The average
share of vehicle loading
capacity that is
productively used.
**Trucks in
India are
overloaded
i.e. > 100%
--
**USA < 100%
cent
**Europe 50-80%
Source: Ministry of Road Transport and Highways, ** Fast Tracking Freight in India: A Roadmap for
Clean and Cost-Effective Goods Transport, NITI Aayog, RMI and RMI India
30.2 The Ministry informed that the low daily distance covered by trucks has
resulted in low utilisation of assets/fleet leading to higher running/logistics cost,
and wastage of kilometres, increased consumption of fuel, and thereby resulting
in higher petroleum import bill and CO2 emissions. Further, high percentage of
empty running leads to business losses and higher logistics cost, congestion on
roads, higher fuel consumption per ton kilometer, higher pollution and higher
petroleum import bill. On enquiring about the measures taken to address these
issues, the Ministry informed that technology-driven initiatives have been
implemented by the industry to improve asset utilisation through asset sharing
among companies, route optimisation and truck aggregation. These solutions
allow truck operators to reduce empty trips and partial loads by combining trips
based on aggregated requirement.
30.3 The Committee observes that the performance of India under the
average daily distance covered and percentage of empty running are not
satisfactory in comparison with other competing countries. The Committee
further observes that improving the performance of India on these
parameters has a knock on effect by reducing the petroleum import bill
and carbon emission apart from efficient asset utilisation, reducing logistics
cost and road congestions. The Committee opines that the adoptions of
technology-driven measures by the Ministry to address these issues are in
the right direction. The Committee, therefore, recommends the Ministry to
continue to leverage technology and big data analytics for attaining better
route planning and load matching, selecting the right type of vehicle and
improving schedule of truck movements. The Committee further
recommends the Ministry to adopt best practises around the world in this
51
aspect to improve the performance of India and bring it on par with other
competing countries.
30.4 On enquiring about the adverse implication of overloading of trucks, the
Ministry informed that overloaded vehicle will be less stable, difficult to steer
and take longer to stop. Further, overloaded vehicles can cause tyres to overheat
and wear out rapidly, which increases the chances of premature, dangerous and
expensive failure or blow- outs. Brakes have to work harder due to ‘the riding
of brakes’ and whole suspension system comes under stress and, over time, the
weakest point can give way. These compromise the integrity of goods on board
the truck and also the safety of trucks and bystanders leading to high prevalence
of road accidents. To address the issue of overloading, the Government has
undertaken various measures such as installation of weigh-in motion bridges
and other necessary equipment near key toll plazas and instituting a graded
penalty system for overloaded vehicles plying on the National Highways. The
penalty imposed for overloading has been increased from Rs. 2,000 to Rs.
20,000 in the Motor Vehicle (Amendment) Act, 2019.
30.5 The Committee is concerned by the prevalence of overloading of
truck as it compromises the safety of the truck, people and goods on board.
The Committee acknowledges the measures taken by the Ministry to
address this issue. The Committee recommends the Ministry to ensure that
these measures are strictly enforced and also undertake initiative to spread
awareness among truck operators about the danger and demerits of
overloading trucks. The Committee also opines that the adoption of larger
and heavy duty vehicles will provide a long term solution to this issue. The
Committee, therefore, recommends the Ministry to work out appropriate
strategy and incentives in consultation with stakeholders to increase uptake
of heavy duty vehicle in our cargo fleet.
REGULATORY MECHANISM FOR MOVEMENT OF CARGO BY
ROAD
31.1 The Committee was informed that Ministry of Road Transport and
Highways is mainly involved in framing of Acts/Rules for facilitating operation
of motor vehicles and the movement of cargo by way of road which is governed
by acts, namely, the Motor Vehicle Act, 1988 pertaining to process of
registration of vehicles and driving licence for all kinds of vehicles, and the
Carriage by Road Act, 2007 pertaining to regulation and permits of goods
vehicles. Further, Ministry of Road Transport and Highways oversee the rules
and regulation for registration of vehicles, road taxes and tolling on National
Highways; the Central Board of Indirect Taxes & Customs (CBIC) deals with
taxation on vehicles and goods transported; and the Ministry of Commerce and
Industry take steps to ensure Integration of multi-modal logistics, improvement
in existing procedures and introduction of modern technology in logistics
52
sector. Apart from the above-mentioned acts, other Rules and Acts pertaining to
other Ministries, local bodies of cities and States are also involved in governing
the movement of goods.
31.2 The Ministry informed the Committee that it had undertaken active
stakeholder consultation with all the relevant Ministries / Departments /
agencies and industry to take their viewpoint in formulating and amending the
relevant Acts/Rules to ensure a coordinated effort amongst stakeholders in
governing the movement of goods. The Ministry further informed that it has
taken various steps to ease the compliance process in movement of vehicles,
such as, issuance of National Permit for goods/vehicle has been digitized
through VAHAN database; increasing the validity of certificate of fitness from
one to two years to reduce the burden of compliance on goods vehicle
operators; and digitization of tolling on Highways through FASTag resulting in
significant savings of time (reduction in average wait time at Toll Plazas from 3
mins to 45 secs) and reduction in fuel consumption.
31.3 The Ministry has also taken specific measures for ensuring seamless
movement of export consignment along the road, namely, formulation of rules
for standardising forms and permits required for transport vehicles and their
drivers to reduce the compliance burden at inter-country borders, and
digitisation of register of trade certificate which Original Equipment
Manufacturers (OEMs) required to move vehicles from manufacturers to
dealers or to ports for export.
31.4 The Committee takes note of the measures taken by the Ministry to
ease the compliance process in movement of vehicles and movement of
export consignment along the road. The Committee recommends the
Ministry to consult with stakeholders to identify the practical issues faced
by exporters and truck operators in availing the facilities provided by the
Ministry and take prompt corrective measures to address the same.
31.5 The Committee also recommends the Ministry to undertake
proactive consultation with relevant Ministries / Departments / agencies to
address issues related to failure or technical snag with FASTags leading to
long queues; tampering of tag reader by toll operators; availability of
FASTags; unauthorized vehicles in FASTag lanes, misuse of
VIP/emergency vehicle lane, etc.
BHARATMALA PARIYOJANA
32.1 The implementation of an umbrella programme for the National
Highways, namely, “Bharatmala Pariyojana Phase-I” has been approved on 24th
October 2017, for construction/ up-gradation of National Highways of 34,800
km length over a period of 5 years (2017-18 to 2021-22) at an estimated outlay
of Rs. 5,35,000 crore. The timeline for completion of the project has now been
revised to 2025-26. The programme focuses on optimizing efficiency of freight
53
and passenger movement across the country by bridging critical infrastructure
gaps through effective interventions like development of Economic Corridors,
Inter Corridors and Feeder Routes, National Corridor Efficiency Improvement,
Border and International Connectivity roads, Coastal and Port Connectivity
roads and Green-field expressways. Multi-modal integration is also built into
this program. Special attention has been paid to fulfilling the connectivity needs
of backward and tribal areas, areas of economic activity, places of religious and
tourist interest, border areas, coastal areas and trade routes with neighbouring
countries.
STATUS OF THE PROJECT
32.2 The Committee was informed that 496 projects with a length of 17,724
km and total cost of Rs. 4.84 lakh crore have been awarded and an additional 58
projects with a length of 1,708 km worth Rs. 84,529 crore approved and
targeted to be awarded shortly. Of the 17,724 km length of projects awarded,
construction for 5,963 km has been completed as of date. All remaining projects
of Pariyojana is targeted to be awarded by Financial Year (FY) 2023-24 and
construction completed by FY 2025-26. Detail overview of various projects is
given at Annexure VI.
32.3 The Committee was informed that 191 points of local congestion
corresponding to 153 towns/cities have been identified as a part of Bharatmala
Pariyojana. Out of 191 Choke points; 44 choke points will be addressed through
development of ring roads for 29 towns / cities, 56 choke points will be
addressed through development of bypass for 54 towns / cities, 91 choke points
will be addressed through development of structures / lane expansion for 76
towns / cities. Work has been completed on 21 choke points while project work
is ongoing for 68 choke points and works on 12 choke points have been
awarded.
32.4 The Committee enquired about the details of projects under Ministry of
Road Transport and Highways which has been delayed and has suffered a cost
over-run. It was informed that 152 projects under the Ministry have been
delayed from the original projected date of completion and 26 projects have
suffered a cost over-run from the original estimated cost. The Committee was
further informed that 136 projects have been delayed for more than 12 months
and 6 projects have suffered a cost over-run of more than 50 per cent above the
original estimated cost. As per the data provided by Ministry of Commerce and
Industry, the project which has witnessed the highest delay under the Ministry
of Road Transport and Highways has been delayed by 128 months i.e., 10 years
and 8 months and the project which has the highest cost over-run has suffered a
cost over-run of 93.8 per cent above the original cost estimate.
32.5 The Ministry of Road Transport and Highways informed that proactive
measure has been taken in identifying and resolving potential hurdles such as
54
land acquisition, environmental clearance, wildlife clearance, etc., for
implementation of program through continuous interaction with multiple
stakeholders across different Ministries, agencies and State Governments. It has
also taken measures for creating a positive climate for private investors through
policies to encourage private participation in the highway sector.
32.6 The Committee opines that the completion of the road projects under
the Bharatmala Pariyojana is critical in addressing our overall logistics
issues and movement of EXIM traffic. The Committee finds it
disheartening to observe that only 17.13 per cent of the projects have been
completed and only 54.22 per cent of the projects approved even after
implementation of the projects for nearly 5 years and having to revise the
timeline for completion of the entire project by 2025-26. The Committee
strongly feels that the Ministry should reinvigorate its commitment to the
projects and expedite its implementation if it is to complete the projects
within the targeted time period. The Committee, therefore, recommends
the Ministry to undertake real time monitoring of these projects,
coordinate with the concerned Ministries/Department/agencies and State
Governments and promptly identify and address the issues that caused
delay in the projects. The Committee further recommends the Ministry to
ensure that these projects are completed in a time bound manner.
32.7 The Committee is dissatisfied to note that 152 road projects under
the Ministry of Road Transport have been delayed and 26 projects suffered
a cost over-run. The Committee is astounded to observe that there exists a
project which has been delayed for more than 10 years and project which
has resulted in cost over-run as high as 93.8 per cent. The Committee
strongly opines that such projects has a huge impact on the exchequer of
the Ministry and has dented the financial viability of the project. The
Committee, therefore, recommends the Ministry to identify these 152
projects which have been delayed and address the reasons for their delay to
expedite the construction of these projects in a priority manner. A status
note and steps taken to speed up these 152 projects may be furnished by the
Ministry in its action taken replies.
PORT CONNECTIVITY ROAD PROJECTS
33.1 On enquiring about the details of the Ports Connectivity Road (PCR)
projects, the Ministry informed that 38 projects with a total length 564 kms had
been planned for implementation under National Highways Authority of India
(NHAI) which was later increased to 40 projects with the addition of 2 more
projects of 8 km length as per the request of port trusts. Now, a total of 40 Port
Connectivity Road projects with total length of 572 kms are under NHAI for
implementation. These projects have been envisaged to connect most of the
major and minor ports as well as inland water terminals in the country to create
55
an integrated network of ports to support continuous and free flow of freight
through the waterways, both inside the country as well as across international
trade routes. Some key ports and terminals connected are Mumbai JNPT,
Chennai, Vishakhapatnam, Tuticorin, Kochi, Kandla and Paradip. The Ministry
has incorporated a dedicated company, named National Highways Logistics
Management Limited (NHLML) as a 100 per cent subsidiary of NHAI, for
implementation of the Port Connectivity Projects and MMLPs under the
Bharatmala Pariyojana.
33.2 Out of the 40 projects, 14 projects of total length 277 km are with Andhra
Pradesh, 3 projects of total length 86 km are with Karnataka, 11 projects of total
length 119 km are with Kerala, 5 projects of total length 53 km are with Tamil
Nadu and the remaining 8 projects of total length 37 km are with West Bengal,
Odisha, Gujarat, Telangana, Uttar Pradesh and Bihar. The detailed synopsis of
these 40 projects along with the present status and length is enclosed at
Annexure VII.
33.3 The Ministry informed 42 per cent i.e., 17 out of 40 projects identified for
Port Connectivity Road projects are shorter than 10 km. The shorter length of
these projects has affected the monetization aspect of the project since shorter
length roads provide fewer opportunities for monetization for the developer.
The Ministry also faced challenges due to encroachments in the port lands for
the planned projects and also difficulty in procuring required clearances to
initiate work / progress with the current timeline as many of the road projects
have been planned through already built-up area / forest area.
33.4 The Committee observes that most of the Port Connectivity Road
projects are at initial stage of implementation with 4 projects still at
bidding stage, and preparation of Detailed Project Report (DPR) yet to be
awarded for 7 projects. The remaining projects are under various phases of
implementation such as preparation of DPR. The Committee opines that
the completion of these projects are critical for ensuring seamless
movement of EXIM traffic as majority of merchandise trade is undertaken
through ports. The Committee, therefore, recommends the Ministry to
expedite the completion of these projects and priority should be accorded
for the same. The Committee further recommends the Ministry to monitor
and review the implementation of these projects at the highest level.
33.5 The Committee takes cognizance of the challenges faced by the
Ministry in implementation of the project. The Committee, however, feels
that the issues highlighted by the Ministry could be resolved with concerted
effort of the Ministry and with proper coordination with other concerned
stakeholders. The Committee, therefore, recommends the Ministry to take
necessary measures to address the challenges and ensure the completion of
these projects in a time bound manner.
56
DELHI-MUMBAI EXPRESSWAY
34.1 The Ministry of Road Transport and Highways has undertaken the
development of 1352 km long Delhi-Mumbai expressway. The project holds
critical importance in ensuring a seamless connection and cargo movement
between the national capital with the financial capital of India. The expressway
will not only shorten the overall distance between the cities but also cut down
travel time by almost half. The expressway will start from Haryana's Sohna and
will end around Mira Bhayander near Mumbai, Maharashtra.
34.2 On enquiring about status of the project, the Ministry informed that 350
km length is completed till date and the total length of the project is targeted to
be completed by March, 2023. During interaction with the Committee, the
Ministry of Road Transport and Highways also informed that it has faced
problems in acquisition of land required for the projects due to issue of
difference in compensation in different states resulting in delay of the projects
by six months. The detail status of the project is given below:
Corridor
Name
Construction
Completed
(km)
Under
Construction
(km)
Awarded - Not
Appointed
(km)
Under
Bidding
(km)
DPR in
Progres
s (km)
Total
(km) Completion Target
Delhi-
Mumbai
Expressway
350 539 285 163 15 1,352 i. Delhi - Jaipur (Dausa)
- Lalsot: December,
2021
ii. Vadodara -
Ankleshwar: December,
2021
iii. Overall Corridor:
March, 2023
Source: Ministry of Road Transport and Highways
34.3 The Committee opines that the completion of the Delhi-Mumbai
expressway is critical to addressing our logistics constraints and ensuring
seamless movement of exports cargo especially from hinterland to
Jawaharlal Nehru Port. The Committee recommends the Ministry of Road
Transport and Highways to take concerted efforts to ensure completion of
the project within the stipulated time frame. The Committee further
recommends that the issues of land acquisition are swiftly resolved in
coordination with concerned State Governments to avoid further delaying
of the project.
MULTI MODAL LOGISTICS PARKS (MMLPs)
35.1 The Committee was informed that the Ministry of Road Transport and
Highways has undertaken development of 35 Multi-Modal Logistics Parks
(MMLPs) at various locations across the country. These MMLPs are developed
on a 'Hub and Spoke' model and implemented by National Highways Authority
57
of India (NHAI), and National Highways and Infrastructure Development
Corporation Limited (NHIDCL) in North-East India. The development of these
MMLPs has been undertaken to eradicate logistics related deficiencies in India,
to bring down the associated costs and to strategically integrate highway
projects and other connectivity initiatives like inland waterways, railways, etc.,
in tandem with the freight distribution ecosystem. The MMLPs shall act as
regional inter-modal freight handling facilities with mechanized material
handling provisions which shall contain warehouses, specialized cold chain
facilities, freight / container terminals and bulk / break-bulk cargo terminals.
The MMLPs are planned to foster intermodal connectivity with inclusions such
as dedicated railway line, access from prominent highway(s) / expressway(s) to
allow movement of commercial vehicles and connectivity to airport or seaport
(or Inland Waterway Terminal). The MMLP Jogighopa, Guwahati, Assam is the
first project for which the development work has been initiated. The project is
implemented by NHIDCL. The Government of Assam has allocated 190 acres
of land and the Ministry of Road Transport and Highways has sanctioned Rs.
693.97 crore for the project. The MMLP Chennai, Nagpur and Bangalore are at
advanced stage of Special Purpose Vehicle (SPV) formation and work for the
same shall be awarded within the year 2021. The status of the 35 MMLPs are
given in Annexure VIII.
35.2 The Ministry informed that the MMLPs have been implemented on a PPP
basis wherein the land for development is planned to be provided by the
respective State Governments / Partner Government Agencies (PGAs). It has
faced issues in liaisoning with respective State Governments for finalization of
sites/land acquisition for green field development delaying the process of
development of the logistics park. Currently, sites MMLP at 4 locations have
been finalized and recommendations from various State Governments are
awaited for other locations. The Ministry further informed that the signing of
Memorandum of Understanding (MoU) for MMLP Nagpur is awaited due to
pending approval of Ministry of Ports, Shipping and Waterways to Jawaharlal
Nehru Port Trust (JNPT) for signing of the MoU and the issue is being
discussed at the Ministerial level.
35.3 The Committee observes that, with the exception of Multi-Modal
Logistics Park (MMLP) Jogighopa, most of the projects are at initial stage
of implementation with pre-feasibility study still to be undertaken for some
of the projects. The Committee strongly opines that these MMLPs will play
a critical role in augmenting our logistics infrastructure and also facilitate
multi-modal integration addressing issues in inter-modal shifting between
various modes of transport. The Committee, therefore, recommends the
Ministry to assign highest priority to the implementation of these projects
and complete them in a time bound manner.
58
35.4 The Committee notes that acquisition of land required for the parks
has hindered the progress of the projects with only 4 locations out of 35
projects finalized till date. The Committee recommends the Ministry to
step up its effort in coordinating with the concerned State Governments
and resolve the issues in land acquisition. The Committee further
recommends the Ministry of Road Transport and Highways and the
Ministry of Ports, Shipping and Waterways to resolve the pendency with
regard to MMLP Nagpur. It is also the strong opinion of the Committee
that such important projects should not be kept pending at the Ministry
level and therefore recommends the Ministry of Ports, Shipping and
Waterways to accord the necessary approval for signing of Memorandum
of Understanding to Jawaharlal Nehru Port Trust (JNPT).
ROAD INFRASTRUCTURE IN NORTH EASTERN REGION
36.1 The Committee was informed that the Ministry of Road Transport and
Highways set up the National Highway Infrastructure Development Corporation
Limited (NHIDCL) to augment road infrastructure in North Eastern Region.
Further, Government has set up two regional offices of Ministry of Road
Transport and Highways and regional offices of NHIDCL headed by Executive
Director level officer in each of the North Eastern States, with a view of having
a better coordination with the concerned Departments of the State Government,
to expedite all the clearance required for road construction. Further, Ministry
has initiated mega road development program in North East as “Special
Accelerated Road Development Program in North East (SARDP-NE)”.
Currently, 260 National Highways works expanding for a length of 5,363 km at
an estimated cost of Rs. 80,007 crore are under construction in North Eastern
States.
36.2 The details of Budget allocated and expenditure incurred in North Eastern
States during last 5 years are given below: (₹ in crore)
Year Scheme
NH(O) SARDP EAP Total
2016-17
Allocation 456.69 4773 5.9 5235.6
Expenditure 347.35 3719 5.9 4072.3
2017-18
Allocation 1146.8 5281 42.27 6467
Expenditure 1146.8 3334.51 42.27 4481.3
2018-19
Allocation 2181.07 5642 160.78 7823.1
Expenditure 2180 4566 160.78 6746
2019-20
Allocation 4268 4500 255.81 8768
Expenditure 4228.73 4462 255.81 8690.7
Allocation 7803 6561.93 1805 14365
59
2020-21 Expenditure 5752.55 5561 1676.82 11314 Source: Ministry of Road Transport and Highways
Legend:
SARDP: Special accelerated Road Development Program; NH (O): National Highway (Original);
EAP: Externally Aided Project
36.3 The Committee opines that road transport plays a critical role in
facilitating movement of export traffic and providing last mile connectivity
due to the geographical terrain of the region which is largely dominated by
hilly or mountainous area. Further, the region is prone to landslide
hindering accessibility especially during monsoon season. The Committee,
therefore, recommends that roads constructed in these regions are
provided with appropriate structural support to ensure all weather
connectivity. The Committee further recommends the Ministry to
undertake proper maintenance of roads in the region and provide adequate
budgetary allocation for the same.
36.4 The Committee observes that the Ministry has undertaken various
road construction projects in the region. It further observes that the
Ministry has failed to fully utilise the budget allocated for the region during
the last 5 Financial Years with Rs. 3051 crore left unutilised during the
Financial Year 2020-21. The Committee opines that this gross
underutilization of allocation would impact the progress of the projects.
The Committee recommends the Ministry to ensure that the allocated
budgets are utilised in a timely manner. The Committee further
recommends the Ministry to closely monitor the progress of road
construction and ensure their timely completion.
AVIATION SECTOR
ROLE AND GROWTH OF AIR CARGO IN INDIA
37.1 Air cargo plays an important role in the economy as a whole and in
export of goods from the country. It supports trade, investment, and inventory
management, promotes connectivity, and improves efficiency and
competitiveness of a country. It serves as a vital link between domestic and
international markets, especially for cross-border trade in high value and high
time-dependency goods. The role of air cargo is particularly enormous in time-
sensitive products such as agri-perishables, horticulture and floriculture, marine
products, pharmaceuticals, electronics, etc., and even greater for trade in
advanced industrial, high value goods, and other sectors that rely on rapid,
reliable and secure transport. Growth in air cargo is also critical for the financial
sustainability of airlines given the importance of revenues realized from it.
Currently, the share of air cargo in global trade is 2 per cent by volume and 35
per cent by value.
60
37.2 The Global Air freight market was valued at USD 270.2 billion in 2019
and is projected to reach USD 376.8 billion by 2027, registering a Compounded
Annual Growth Rate (CAGR) of 5.6 per cent as per International Air Transport
Association (IATA) air freight market statistics 2021-27 published by Allied
Market Research. The domestic air cargo sector has also been growing at an
exponential rate registering a double-digit growth of 12.1 per cent in 2018-19
over 2017-18. As per CRISIL report, the dedicated air freight market in India is
estimated at Rs. 6-7 billion currently. The Committee was informed that the air
cargo business is likely to strengthen further with the growth of e-commerce,
manufacturing industry, trade, investment and consumption, including
significant demand from small and medium B2B segments.
37.3 India can aspire to become an international cargo hub due to its
prominent geographical location since many neighbouring countries do not have
regular services to Europe, US and South East Asia. The growth rate of Indian
air freight vis-à-vis global air freight market, volume of cargo handled as well
as share of domestic and international cargo during the last five years are given
in the subsequent tables.
(Value in per cent)
Year Growth rate of domestic air
cargo market
Growth rate of global air
cargo market
2015-16 7.1 2.3
2016-17 10 3.6
2017-18 12.79 9.7
2018-19 6.26 3.4
2019-20 -6.74 -3.3 Source: Ministry of Civil Aviation
(Value in Million Tonnes)
Annual volume of Air Cargo handled during the last five years (in MT)
Fiscal Year 2016-17 2017-18 2018-19 2019-20 2020-21
Domestic Cargo 11,23,180 12,13,060 13,61,714 13,25,506 9,52,487
International Cargo 18,55,061 21,43,968 22,00,187 20,03,123 15,21,424
Total 29,78,241 33,57,028 35,61,901 33,28,629 24,73,911 Source: Ministry of Civil Aviation
(Value in per cent)
Share of International and Domestic Air Cargo handled during last five
years
Fiscal Year 2016-17 2017-18 2018-19 2019-20 2020-21
Domestic Air Cargo 37.71 36.13 38.23 39.82 38.50
International Air Cargo 62.29 63.87 61.77 60.18 61.50 Source: Ministry of Civil Aviation
61
37.4 To cater to the increasing growth in air cargo market, the deployment of
dedicated freighter by Indian carrier has also increased from 7 in 2018 to 26 in
2021. Further, Government has been encouraging Indian carriers to acquire
more wide-body aircraft to increase the capacity of belly cargo or cargo-on-seat
flights.
37.5 The Ministry of Civil Aviation informed the Committee that the share of
Indian carriers in international freighter movements has increased from 2
percent to 19 per cent during the last two years and the share of Indian carriers
in international air cargo movement has increased from 10.9 percent in June
2020 to 15.9 percent in May, 2021.
37.6 In terms of Revenue Tonne Kilometre (RTK), dedicated freighters have
15 per cent share of the air freight market in India, compared with 50-55 per
cent globally. This is because global peers move cargo across countries/
continents while Indian freighters operate on shorter distances and lead times,
leading to competition from other modes of transport.
37.7 The Committee observes that the domestic air cargo market had
witnessed an impressive and robust growth since 2015-16, registering a
higher pace than the global air cargo market. However, the growth rate has
shown a decline from 2018-19 and has registered a negative growth rate in
2019-20. The Committee expresses its concern on this sharp contraction
and recommends the Ministry of Civil Aviation to take remedial measures
to align the industry back on its growth path.
37.8 The Committee observes that the volume of air cargo handled had
witnessed a sharp dip in 2020-21. The Committee is hopeful that the air
cargo will regain its previous volume with gradual recovery of the economy
and assisted by the increased share of Indian carriers in international
cargo. India’s image as a reliable supplier in international market is linked
to the performance levels of the infrastructure available at the air cargo
terminals. The Committee, therefore, recommends the Ministry to take
necessary steps to augment the air cargo infrastructure to further increase
the air cargo volume and the share of India in the global air cargo market.
37.9 The Committee notes that the share of dedicated air freighter is only
15 per cent share in the air freight market in India compared to 50-55 per
cent globally. The Committee opines that steps towards consolidation of
domestic air cargo and carving out higher share in international air cargo
will facilitate the further development of dedicated air freighter. The
Committee, therefore, recommends the Ministry to undertake a structured
study to enable the dedicated air freighter fleet carve out the required
niche market of both the international and domestic air cargo and increase
their share in the air cargo market.
62
37.10 The Committee opines that India needs to adopt a well-equipped
infrastructure across the new airports which are going to be built in future
and also upgrade infrastructure at existing airports to be at par with
international level to capitalise on the expanding global and domestic air
freight markets. The Committee, therefore, recommends the Ministry to
ensure adequate planning is undertaken so that upcoming airports are
equipped with specialized infrastructure to handle time-sensitive,
perishables, high value cargoes and regional express facilities to suit the
need of the growing air cargo market and exports.
SKILLED MANPOWER IN AIR CARGO LOGISTICS
38.1 The air cargo industry is catering to high-value, time-sensitive,
perishable, dangerous and sometimes radioactive goods. The presence of
adequate and skilled manpower is essential for ensuring the efficient processing
of such items without compromising the quality and value of the products. The
Committee during its deliberations was informed by the stakeholders that they
are facing problems while loading/unloading of such cargo due to unskilled
manpower at the airports which results in mishandling and losses to the
exporter. They further apprised that there is shortage of manpower in both
skilled worker and office staff and the vacancies are not being filled up.
38.2 On enquiring about the availability of skilled manpower in the air cargo
logistics chain, the Ministry of Civil Aviation informed that it has created a
portal under the name of Aviation Jobs to bring together job seekers and
prospective employers in the Indian civil aviation sector to attract skilled
manpower in the sector. Further, Rajiv Gandhi National Aviation University
(RGNAU) has been empowered to provide skilled manpower through university
degrees specializing in the field of civil aviation.
38.3 The Ministry further informed that Government has taken following steps
to ensure availability of skilled manpower:
i. Qualification Packs and National Occupational Standards (QP-NOSs)
defined for the air cargo jobs through Aviation and Aerospace Sector
Skill Council;
ii. Continuous up-skilling of screeners and other workforce for quality
enhancement and increased efficiency;
iii. Trade bodies such as ACFI, FFFAI, etc. are constantly involved in
skilling and providing various trainings for the cargo fraternity; and
iv. AAI Cargo Logistics and Allied Services Company Limited (AAICLAS)
training manpower via industry specific trainings such as IATA
Dangerous Goods Regulations (DGR), Aviation Security (AVSEC),
Special Cargo equipment handling, palletization, basic and advanced
cargo handling, etc.
63
38.4 The detail of the type of training, name of the training programme and the
number of workers provided training provided by AAICLAS during the last five
years are attached in Annexure IX.
38.5 The Ministry further informed that various trade bodies such as Air Cargo
Forum India (ACFI), Federation of Freight Forwarders Association of India
(FFFAI) and Express Industry Council of India (EICI) have also been
constantly involved in skilling and providing various trainings for the cargo
fraternity. The ACFI has organized 77 training programmes and around 3,486
candidates have been benefited by the programme. The FFFAI has organized
three training programmes on “Handling of Cargo and Dangerous Goods
Regulations” in a calendar year and around 1500 candidates have been
benefited by the programme. The EICI has aligned with Government on the
following express industry skilling initiatives:
i. EICI has established Express Industry Skill Centre under National Skill
Development Corporation (NSDC) driven Pradhan Mantri Kaushal Vikas
Yojana (PMKVY) for the Indian Express Industry sector. The Skill
Centre provides skill trainings for seven job roles, namely, Warehouse
Picker, Warehouse Packer, Consignment Booking Assistant,
Consignment Tracking Executive, Courier Delivery Executive,
Documentation Assistant and Inventory Clerk based on NSDC
guidelines. Between November, 2019 and March, 2020, a total of 63
candidates have been successfully trained and certified.
ii. EICI implemented the Recognition of Prior Learning (RPL) Program for
the express industry. EICI along with Leather Sector Skill
Council (LSSC) initiated the RPL training program across India, from
May 2019 and trainings were conducted in respective employer premises.
These RPL training programs have been conducted for direct and indirect
employees of express and e-commerce companies and approximately
2,039 candidates has been provided training till January 2020.
38.6 The Committee feels that short term training programs provided by
AAI Cargo Logistic and Allied Services Company Limited (AAICLAS) will
be inadequate to instill the skills required for handling time-sensitive,
valuable, dangerous and radioactive cargo. Further, with the increased
adoption of modern technology in logistics process, the requirement of
skilled and professional manpower will be paramount. The Committee,
therefore, recommends the Ministry undertake a study of the existing skill
gaps in the air cargo industry and prepare a training framework/
recruitment process in consultation with relevant stakeholders to attract/
provide competent workforce to the air cargo logistics process.
64
38.7 The Committee also recommends that all existing staff should be
provided on the job training on the specialized skills required for handling
dangerous goods, special cargo equipment handling, security compliance,
etc., in a comprehensive manner.
38.8 The Committee notes about the creation of portal by Airports
Authority of India as ‘Aviation Jobs’. The Committee recommends that
there is need to create awareness about this portal to the aspirants of this
category of staff.
CLASSIFICATION OF AIR CARGO AND FREIGHT RATES
39.1 The Committee was informed that export consignments have been
classified into nine classes as below:
i. General Cargo
ii. Perishable Cargo
iii. Pharmaceutical Cargo
iv. Valuable Cargo
v. Live Animals
vi. Dangerous Goods
vii. Special Cargo
viii. Radioactive Material
ix. Health and Usage Monitoring System (HUMS), etc.
39.2 On enquiring about the charges, including terminal handling charges,
levied by different Government agencies as well as terminal operators at airport
on an export consignment, the Ministry of Civil Aviation has submitted the
following detail. It has further submitted that tariff for terminal handling is
controlled by Airports Economic Regulatory Authority (AERA) for major
airports and Ministry of Civil Aviation for non-major airports. The cost of air
freight is commercial decision between the airlines and the customers and tariffs
rates are determined at airline’s discretion.
AAICLAS Tariff
for AERA
Regulated Airports
INTERNATIONAL CARGO
EXPORT
Standard Charges for Processing and Handling at Air Cargo
Terminal
General
Cargo
(Rs per Kg)
FY 2021-22
Perishable
Cargo
(Rs per Kg)
FY 2021-22
Special &
Valuable
Cargo
(Rs per Kg)
FY 2021-22
Amritsar 1.16 1.16 2.30
Bhubaneswar 0.98 0.98 1.94
Chennai 0.74 0.74 1.47
Goa Airport 1.07 1.07 2.13
65
Guwahati 0.97 0.97 1.93
Jaipur 0.98 0.98 1.94
Kolkata 1.01 1.01 2.00
Lucknow 0.97 0.97 1.93
Manglore 0.90 0.90 1.79
Patna - - -
Pune 0.74 0.74 1.76
Trivandrum 0.98 0.98 SPL: 1.94
VAL: 3.96
Varanasi 1.19 1.19 2.36
AAICLAS Tariff
for Non-AERA
Regulated Airports
INTERNATIONAL CARGO
EXPORT
Standard Charges for Processing and Handling at Air
Cargo Terminal
General
Cargo
(Rs per Kg)
FY 2020-21
Perishable
Cargo
(Rs per Kg)
FY 2020-21
Special &
Valuable
Cargo
(Rs per Kg)
FY 2020-21
Aurangabad 0.95 0.95 1.88
Bagdogra 0.95 0.95 1.88
Bhopal 0.95 0.95 1.88
Coimbatore 0.95 0.95 1.88
Indore 0.95 0.95 1.88
Jammu 0.95 0.95 1.88
Madurai 0.95 0.95 1.88
Port Blair 0.95 0.95 1.88
Ranchi 0.95 0.95 1.88
Srinagar 0.95 0.95 1.88
Surat 0.95 0.95 1.88
Vijaywada 0.95 0.95 1.88
Visakhapatnam 0.95 0.95 1.88
AERA Tariff for JV
Airports
INTERNATIONAL CARGO
EXPORT
Standard Charges for Processing and Handling at Air
Cargo Terminal
General
Cargo
(Rs per Kg)
FY 2020-21
Perishable
Cargo
(Rs per Kg)
FY 2020-21
Special &
Valuable
Cargo
(Rs per Kg)
FY 2020-21
Delhi (DCSC) 2.22 4.96 3.97
Mumbai
(AAITSL/MCSCAPL) 0.81 2.67 1.61
66
Bangalore (Menzies) 1.10 2.87 1.65
Hyderabad (GMR) 1.00 2.43 1.40
Calicut (KSIEL) 0.80 0.70 6.00
Cochin (CIAL) 0.95 0.70 SPL: 2.00
VAL: 5.00
Ahmedabad (CSC) 0.70 1.75 2.00
Kannur (KIAL) 0.95 0.70 SPL: 2.00
VAL: 5.00 Source: Ministry of Civil Aviation
39.3 The Committee observes that no standard rate is available across
airports for processing and handling of cargo at air cargo terminal which it
feels will be counterproductive to the competitiveness of our exports and to
the air cargo logistics cost as a whole. The Committee, therefore,
recommends the Ministry to fix a standard benchmark for fixing
processing and handling charges which will be applicable across all
airports. The Committee further recommends the Ministry to ensure that
these charges are comparable to other airports around the world so that
our export competitiveness is not impacted due to high terminal charges.
39.4 The Committee takes cognizance of the fact that the cost of air
freight is a commercial decision between the airlines and the customers,
and tariffs rates are determined at airline’s discretion. However, the
Committee opines that a regulatory body to keep check on unwarranted
increase in freight rate is required. The Committee, therefore, recommends
the Ministry to have a closer look on this issue and consult with relevant
stakeholder and conduct a detailed study on the benefit of giving the role of
regulatory oversight on air freight tariff to AERA.
DWELL TIME AND THROUGHPUT EFFICIENCY OF AIR CARGO
TERMINALS
40.1 Dwell time is the measure of the time elapsed from the time the cargo
arrives at the airport to the time the goods leave the port premises after all
permits and clearances have been obtained. At a time when a growing
proportion of world trade has been carried via air, reducing average dwell time
of cargo at airport terminals could save consequent costs and enable speedy
movement in terms of import and export of goods. The Committee has been
informed that the average Dwell Time across Indian airports has seen a
significant reduction as a result of various steps taken by Government and
supported by various measures implemented by customs, Cargo Terminal
Operators (CTOs), airports, airlines, freight forwarders and all other
stakeholders.
40.2 The Dwell time statistics at Major airports (AAI/JVs) are as follows:
67
Airport Dwell Time
Mumbai International
Airport Ltd. (MIAL)
The average overall export dwell time is 22 hours and
the time taken by custodian/terminal operator to
process the cargo is 8-10 hours.
Delhi International
Airport Ltd. ( DIAL)
The export processing time at Delhi Airport Cargo
Terminal is around 17 hours.
Cochin International
Airport Ltd. (CIAL)
The average dwell time at export section is around
15.62 hours but 90 per cent of the cargo departs in less
than 10 hours.
Kempegowda
International Airport,
Bengaluru (KIAB)
The average dwell time for exports at the KIAB is
around 16 hours.
Chennai and Kolkata Air Cargo Complex
Time Export (in %) Import (in %)
Chennai Within 48 hours
free storage
period
83.32 72.27
Kolkata 96.4 62.03
Chennai Beyond 48 hours
16.68 27.73
Kolkata 3.6 37.97 Source: Ministry of Civil Aviation
40.3 The Ministry of Civil Aviation informed the Committee that following
steps have been taken to reduce dwell time at airports:
i. Automated clearance of Bills of Entry - It has been implemented on an
all India basis from March, 2020. The system will automatically give
clearance after CCV (Compulsory Compliance Verification) and
confirmation of payment of duty.
ii. Machine release/ automated clearance of Bills of Entry - Implemented
on a pilot basis in Chennai and Jawaharlal Nehru Customs House (JNCH)
from 06.02.2020 and made effective pan India w.e.f. 05.03.2020.
iii. Faceless Assessment – The process has been introduced since
November, 2020 and is part of the CBIC's Turant Customs programme.
This system will ensure anonymity and enhance speed in Customs
assessment.
iv. Advance filing of Bill of Entry - Legislative changes has been carried
out to facilitate pre-arrival processing and assessment of Bills of Entry by
mandating their advance filing thus leading to significant decrease in the
Customs clearance time. The amended Section 46 of Customs Act would
require an importer to file a Bill of Entry before the end of the day
(including holidays) preceding the day of arrival of the
vessel/aircraft/vehicle carrying the imported goods at a Customs
68
port/station at which such goods are to be cleared for home consumption
or warehousing.
40.4 International standard for throughput efficiency, measured in terms of
tonnage handled per square meter, is linked to the total volume of cargo handled
in that terminal in a year. The throughput efficiency has been used as a
parameter for measuring the cargo handling efficiency of air cargo terminals.
According to the World Bank Report on Air Freight Market Study, 2009, the
efficiency norms for air cargo terminal warehouse has been given as shown in
the table below:
Efficiency norms for Air Cargo Terminal Warehouse
Annual Throughput (Tonnes) Throughput per Sq. meter of Covered
area (Tonnes)
Less than 50,000 5
50,000 to 100,000 8
100,000 to 250,000 10
More than 250,0000 17 Source: World Bank Report on Air Freight Market Study, 2009
40.5 On enquiring about the volume of export cargo and average area of
outbound cargo handling terminal at each of the major airports, the Ministry of
Civil Aviation has provided data which is tabulated below:
Airport-wise Export Volume and Terminal Area during 2019-20 & 2020-21
Airport
Export Export Volume
handled (in MT)
Throughput per Sq.
meter of Covered area
(Tonnes)
Area
(Sq. M)
Capacity
(MT)
FY 2019-
20
FY 2020-
21 FY 2019-20 FY 2020-21
AAICLAS airports
Ahmedabad 3,617 66,017 35,513 19,298 ** **
Amritsar 899 16,407 1,111 389 ** **
Aurangabad 700 12,775 - -
Bhubaneswar 232 4,239 72 18 ** **
Chennai 18,533 3,51,094 1,43,721 1,06,556 7.75 5.74
Coimbatore 2,220 40,515 2,539 528 ** **
Goa 245 4,465 852 166 ** **
Guwahati 162 2,957 1 - ** **
Indore 658 12,009 573 61 ** **
Jaipur 1,244 22,703 1,781 333 ** **
69
Airport
Export Export Volume
handled (in MT)
Throughput per Sq.
meter of Covered area
(Tonnes)
Area
(Sq. M)
Capacity
(MT)
FY 2019-
20
FY 2020-
21 FY 2019-20 FY 2020-21
Kolkata 8,516 1,55,417 40,856 26,922 ** **
Kozhikode 1,060 19,345 24,299 8,482 ** **
Lucknow 685 12,501 2,951 884 ** **
Madurai 201 3,670 1,616 171 ** **
Mangaluru 593 10,822 2,830 589 ** **
Pune 400 7,300 341 - ** **
Tiruchirappalli 1,985 36,223 8,059 2,714 ** **
Varanasi 165 3,011 5 4 ** **
Visakhapatnam 286 5,220 389 7 ** **
JV Airports
Delhi 58,000 6,46,000 3,18,350 2,21,826 5.488 3.82
Mumbai 30,000 7,90,000 3,52,775 2,50,703 11.75 8.35
Cochin 5,160 75,000 47,726.7 29,410.4 9.24 5.69
Bengaluru 22,057 2,81,000 1,23,442 1,23,162 5.59 5.58
Hyderabad 4,600 70,000 63,058 49,473 13.7 10.75 Source: Ministry of Civil Aviation; ** Calculation not carried out due to minimal export volume.
40.6 The Committee observes that the dwell time of Indian airports are
distressingly high with most of the major international airports registering an
export dwell time of more than 15 hours. Further, with the exception of Cochin
and Hyderabad Airports, the throughput efficiency of all other major airports
which handled more than 50,000 Metric Tonnes of export volume has not been
satisfactory. The Committee was informed that various issues contributed to
high dwell time and low throughput efficiency including airlines booking and
accepting cargo much ahead of flight departure; reduction in floor space of
cargo terminal operators due to 30 per cent space demarcated for customs
examination; lack of flexibility in use of cargo space in terminals; non-
availability of adequate parking areas for trucks; agents’ warehouses located
within the city away from cargo terminals; lack of fixed model in terminal
operations and dependence on decision of individual airport operators; and
inadequacy of dedicated freighter parking bays. The Committee was also
briefed about the inadequacy of warehousing space at terminals and lack of
systematic process in stacking of cargos. Further, there is dearth of specialised
storage for hazardous radioactive and valuable cargo.
40.7 The Committee recommends the Ministry to issue direction to
airlines to not accept cargo well ahead of departure time. It further
70
recommends the Ministry to determine and provide a specified time period
for acceptance of cargo and penalty may be imposed on airlines accepting
cargo prior to the specified time period.
40.8 The Committee observes that conducting custom examination within
the cargo terminal led to reduction in available floor space by 30 per cent.
The Committee, therefore, recommends that adequate space should be
allocated to terminal operators and customs to enable efficient handling of
cargoes. The Committee further recommends that the unutilized land
parcels of Airports Authority of India (AAI) at airports can be effectively
used for expansion of cargo terminal space.
40.9 The Committee also observes that lack of flexibility in use of terminal
space hindered the efficient use of terminal space. The Committee,
therefore, recommends that the number of landside truck-loading facilities
at air cargo terminal should be increased and flexibility in use of truck
docks should be provided by facilitating interchangeability in use of export
and import truck dock.
40.10 The Committee recommends the Ministry to undertake an airport-
wise study on availability of dedicated parking bays for freighter aircrafts
and allocate space for the same based on the requirement and volume of
cargo handled at the airports and terminals. The Committee further
recommends that adequate space may be allocated for agents’ warehouse
near terminals for ensuring efficient integration and coordination in the
logistics process.
40.11 The Committee is startled to note that there is no fixed model in
terminal operations across airports and that it is left at the discretion of
individual airport operators. The Committee strongly opines that the lack
of a fixed model in terminal operations hindered the integration of air
cargo logistics chain. The Committee, therefore, recommends the Ministry
to consult with stakeholder and institute standard guidelines to be followed
across all airports for operation of air cargo terminals.
40.12 The Committee opines that adoption of modern, state of the art
technology will address the issues underlying the high dwell time and low
throughput efficiency in the long run and, therefore, recommends the
Ministry to work towards the adoption of the modern technology such as,
automated sorting system, collaborative robots/cobots and autonomous
guided vehicle. The Committee further recommends the Ministry to
undertake revision of the inventory and storage management to ensure that
the system of First In - First Out is implemented at warehouse.
71
DOCUMENTARY & REGULATORY COMPLIANCE AND TIME
TAKEN
41.1 The Committee was informed that the Ministry has been committed to
providing seamless and faceless business transaction and logistics process at
airports and air cargo terminals. Regulatory authorities such as Customs,
FSSAI, APHO, Plant Quarantine, Animal Quarantine, Drug Controller, etc., are
available within the international air cargo terminals at Indian airports for
getting necessary clearances without delays under a Single Window System
(SWS). Clearances have been processed through online systems such as Indian
Customs EDI System (ICES) and Indian Customs Electronic Gateway
(ICEGATE) which have been integrated to other regulatory authorities for quick
single window clearance. This has helped exporters process their shipments
from their locations. Central Board of Indirect Taxes and Customs (CBIC) has
been undertaking integration of all Participating Government Agencies (PGAs)
into ICEGATE to make Single Window System successful for ensuring
paperless transactions and to avoid manual Interaction. This will reduce
processing time and will increase the overall efficiency. Additionally, in line
with Government of India’s Digital India initiative, AAICLAS has implemented
Integrated Cargo Management System (ICMS) at their facilities across India,
for ease of access and trade, with online access and payments, mobile
accessibility, etc. This has provided exporters the ability to process terminal
storage and processing charges and other related information from the ease of
their locations.
41.2 On enquiring about the list of documents and regulatory requirements to
be complied with for clearing an export cargo from the moment it enters the
airport till it is loaded to the air freighter/aircraft as well as the regulatory
authorities involved in the process, the Ministry of Civil Aviation informed that
twelve authorities are involved and the PHD Chamber of Commerce and
Industry has informed that twelve documents at six sections are required to be
complied with during the process. Details are given in the table below:
List of regulatory authorities involved in the export cargo process
Sl.
No. Name of the Regulatory Authority
1. Customs Let Export Order (LEO)
2. Drug Controller
3. Plant Quarantine
4. Animal Quarantine
5. Leather Experts & Jewellery Experts
6. Food Safety and Standards Authority of India (FSSAI)
7. Drug Controller
8. Port Health Officer (PHO)
72
9. Forest and Wildlife Authorities
10. Textile Committee
11. Pollution Control Board
12. Directorate General of Foreign Trade (DGFT) Source: Ministry of Civil Aviation
List of documents required for clearing an export cargo
Sl.
No. Section Documents Required
1. Quality Check Proforma Invoice
Customs Packing List
2. Mandatory Requirement Customs Invoice
Shipping Bill
Export License
3. Shipping Requirement Country of Origin
Bill of Landing
Bill of Sight
4. If ICD is involved Warehouse Receipt
5. For Food Essentials Health Certificate
6. Payment Requirement Bill of Exchange
Letter of Credit Source: PHD Chamber of Commerce and Industry
41.3 The Committee was also informed that, as per the World Bank data, the
average time taken for completing documentation and regulatory requirement is
11.6 hours in India whereas it is 1.5 hours, 1.7 hours and 8.6 hours in USA, EU
and China respectively for clearing the documents. The cost for completing
export documentary compliance for India is USD 58 while it is USD 73.6, USD
60 and USD 16.6 for China, USA and EU countries respectively.
41.4 The Committee was also informed that the Indian Customs EDI System
(ICES) and Indian Customs Electronic Gateway (ICEGATE) systems witnessed
frequent breakdown resulting in delayed clearance of the export consignments.
It was also informed that large business enterprises choose to work only with
those which have implemented the Electronic data interchange (EDI) systems,
leaving out the small business enterprises which could not adopt the system due
to the high cost involved. This has limited the trading partners of the small
business enterprises.
41.5 The Committee observes that the time taken for completing
documentation and regulatory requirement is much higher than other
countries which may be attributed to the involvement of twelve authorities
and twelve documents in clearing export consignments. The Committee,
therefore, recommends the Ministry to take measures to shorten and
simplify the documentation process. The Committee further recommends
73
the Ministry to reduce the number of documents by carrying out required
rationalization process.
41.6 The Committee also recommends that the Information Technology
infrastructure at airports may be adequately equipped and regularly
updated to handle the growing digital traffic and ensure smooth
functioning of Indian Customs EDI System (ICES) and Indian Customs
Electronic Gateway (ICEGATE). The Committee further recommends the
Ministry to ensure the integration of all processes and systems of
Participating Government Agencies (PGAs) and stakeholders under the
single window system to create synergy and uniformity in the documentary
and regulatory process.
41.7 The Committee notes that Electronic data interchange (EDI) systems
are expensive, making it difficult for small businesses to adopt. It also notes
that inability to adopt the EDI system has limited the business
opportunities of small enterprises as large enterprises chose to conduct
business with others which have adopted the system. The Committee,
therefore, recommends the Ministry to provide incentives/assistance to
small companies to acquire the required EDI system.
TRACKING, SAFETY AND SECURITY OF CARGO
42.1 Majority of products handled by air cargo are valuable and time-sensitive
requiring security and visibility of movements of cargo. A robust tracking
system and security is therefore required in the air cargo logistics chain. Upon
enquiring about the tracking systems in place at airports and air cargo terminals,
the Ministry of Civil Aviation informed that all airlines have a system for
tracking the status of shipment status at their respective websites. Additionally,
operational tracking systems at cargo terminals are available in Integrated Cargo
Management System (ICMS) of AAICLAS which is accessible through the
website. The ICMS provides the complete status of the shipment along with
relevant shipment data just by entering the Airway bill number. Details right
from acceptance till release within the cargo terminal, including the current
location of the shipment/cargo, payment details, customs’ shipping bill details,
time of entry/exit, acceptance time, etc., are available in this tracking feature.
Mumbai International Airport Ltd. (MIAL) management is highly advanced
through the use of e-Freight, digital flow of cargo information by web based air
cargo, digital corridor, cargo mobile application for real-time tracking of cargo
and, digital messaging with regulatory, airlines and other stakeholders.
42.2 On enquiring about the operational efficiency of tracking systems
provided at airports, stakeholders in their written reply have highlighted that
issues such as high down time due to system failure because of an unplanned
event, or because of routine maintenance and systems not working properly due
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to technical or human errors, led to time loss to the whole process of managing
cargo.
42.3 The Committee recommends that tracking services provided by
airlines and airport operators are efficiently managed to reduce system
failure and technical glitches. The Committee further recommends the
Ministry to direct such service providers to carry out necessary
technological upgradation to their respective systems to provide
uninterrupted service.
42.4 The Committee is of the view that the air cargo system should keep
pace with the latest technology in order to achieve a competitive edge in the
global export market. The Committee, therefore, recommends the Ministry
to undertake a study on the feasibility of leveraging and adopting state-of-
the art technology in the air cargo logistics process such as, robotics to
detect package defects at higher speed; Internet of Things to manage and
enhance supply chain productivity; cloud integration for real time
monitoring of cargo; autonomous tracking for better route and load
planning; Application Programming Interface (API) for better
harmonization and integration of data; Artificial Intelligence (AI);
predictive networks; block chain; drone fleets for enhancing warehouse
operations; and augmenting cyber security for providing protection to our
IT networks at airports.
REGIONAL AIR CONNECTIVITY
43.1 The Committee took note of the Regional Connectivity Scheme (RCS)
whose primary objective is to facilitate / stimulate regional air connectivity by
making it affordable. The Committee was also informed about the 'open sky
cargo policy' of the Ministry.
43.2 The Committee during its deliberations came to know that a notification
was issued on 17th
September, 2020, by the Director-General of Civil Aviation
regarding revoking of general permission to foreign non-scheduled cargo
carriers from landing at airports in India except Bengaluru, Chennai, Delhi,
Kolkata, Hyderabad and Mumbai. Further, during the discussions it came up
that no stakeholders and Chambers of Industries were consulted by the DGCA
before finalizing the order. When the Committee specifically asked about the
rationale behind the move, the representatives of the Ministry of Civil Aviation
informed that the order is only for non-scheduled cargo aircraft which is about
5-7 per cent of total load. The scheduled carriers which constitute bulk of the
cargo movement, about 90 per cent are coming to all the Airports.
43.3 In a written reply, the Ministry informed that the decision to restrict
access to non-scheduled operations by foreign registered freighter to six metro
airports has been taken to address the issue in international air cargo trade
which has been heavily skewed in favour of foreign airlines and proving
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detrimental for registered airlines. The restriction has been further necessitated
by the COVID-19 pandemic which has devastating impact in the aviation
industry. The Ministry further informed that Indian airlines are allowed to
operate non-scheduled and scheduled international all cargo services from any
airport in India with customs/immigration facility, and cargo carried by belly
passenger aircraft operated by both Indian and foreign airlines has not been
impacted by the decision.
43.4 With the advent of industrialization, technological advances in Internet
sector and government emphasis on Agri Export Policy, Tier II and Tier III
cities have come on the World Map for exporting goods. Around 80 per cent of
the goods carried by Air cargo comprises of perishable goods.
43.5 The Committee notes with concern that due to abrupt debarring of
non-scheduled flights to non-metros, exporters had to face problem in
transporting goods to nearby metro airport to fulfill its business
commitment. The Committee is of the view that the matter should have
been first discussed with the stakeholders and only after due consensus,
modifications in the policy should have been carried out. The Committee
recommends that in future the stakeholders may be consulted and
necessary modification may be made in the policy to make a balanced
arrangement. The Committee further recommends that a non-partisan
approach is adopted towards non-metro airports to ensure inclusive
development of the country.
PORTS, SHIPPING AND WATERWAYS SECTOR
44.1 India has a robust maritime sector with 12 Major and more than 200 Non-
Major Ports situated along its 7500 km long coastline and a vast network of
navigable waterways. The Ministry of Ports, Shipping and Waterways
(MoPSW) has been entrusted with the responsibility to formulate policies and
programmes relating to ports, shipping and waterways sectors which include
shipbuilding and ship-repair, Major Ports, National Waterways and Inland
Water Transport. The country’s maritime sector plays a crucial role in its
overall trade and growth, with 95 per cent of the trade volume and 65 per cent
of the trade value of the country being undertaken through maritime transport.
TRAFFIC HANDLED AT PORTS
45.1 The total traffic handled at Indian Ports rose from 885 Million Tonnes Per
Annum (MTPA) in 2010-11 to 1,300 MTPA in 2019-20. The traffic handled by
the Major ports during 2020-21 was 672.61 Million tonnes (MT) and the total
installed capacity of the Major ports is 1560.61 Million Tonnes Per Annum
(MTPA) which is sufficient to handle the existing cargo traffic at the Major
ports. The 12 Major Ports handled nearly 54 per cent of the total cargo in 2019-
20 and have witnessed about 4 per cent Compounded Annual Growth Rate
(CAGR) in overall cargo traffic over last 5 years. The details on the capacity
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utilization, total handling capacity and total traffic handled at all Major ports is
at Annexure X. The non-Major ports are under the jurisdiction of respective
State Maritime Boards/State Government. As per information available with the
Ministry, the details on the total handling capacity, total traffic handled and
capacity utilization of Minor ports is at Annexure XI.
45.2 The Ministry informed that infrastructure development and capacity
augmentation of Major ports is an ongoing process. The process inter-alia
involves construction of new berths and terminals, mechanization of existing
berths and terminals, dredging for deepening of drafts for attracting large
vessels in port channels, development of road and rail connectivity, etc. A
number of infrastructure development/capacity augmentation projects of the
Major ports have been awarded in the last 5 years with total project cost of Rs.
20,882.46 crore and with a capacity creation of 178.22 MTPA. Similarly, a
number of infrastructure development/capacity augmentation projects of the
Major ports have been completed in the last 5 years with a capacity addition of
302.08 MTPA.
45.3 The Committee is perturbed to observe that while the traffic
handling capacity at Major ports has increased by 302.08 Million Tonnes
Per Annum (MTPA) during the last 5 years, the capacity utilization has
witnessed a constant decline during the same period. Further, the Major
ports have failed to utilize even 50 per cent of its capacity. The Committee
recommends the Ministry of Ports, Shipping and Waterways to take
concerted efforts to enhance the port processes and ensure the optimal
utilization of the capacity at ports.
CONTAINER TRAFFIC
46.1 The Committee enquired about the share of container traffic in our total
maritime traffic. The Ministry of Ports, Shipping and Waterways informed that
container traffic handled was 105 Million Tonnes (MT) during 2020-21 which
constitute 19.94 per cent of the total maritime traffic. The Ministry further
informed that container traffic has been growing at a much faster pace than
overall maritime traffic registering a growth rate of 64 per cent vis-à-vis 25 per
cent growth rate for the overall maritime traffic during the last seven years.
Details of container traffic handled at Indian ports during 2019-20 and 2020-21
is given below:
Details of container traffic handled at Indian ports (Value in Million Tonnes)
Indian
Ports
Container Traffic Total Traffic % Share of
Total Traffic
2019-20 2020-21 2019-20 2020-21 2019-20 2020-21
Major Ports 146.91 143.80 704.93 672.60 20.84 21.38
Non Major 99.72 105.00 613.17 575.04 16.26 18.26
77
Ports
Total 246.63 248.80 1318.10 1247.64 18.71 19.94
Source: Ministry of Ports, Shipping and Waterways
46.2 The Committee was informed by stakeholders that there is dearth in
availability of container during the pandemic leading to exorbitant increase in
container traffic freight rate. Upon enquiring about the same, the Ministry of
Ports, Shipping and Waterways informed the Committee that it has received
complaints from individual shippers, consignees and trade bodies about
shortage of containers due to congestion at various ports and increased
turnaround time of ships which is affecting the timely export and imports
movement, delay in supply of EXIM containers and increase in freight rates.
The Directorate General of Shipping periodically held meetings with trade
bodies, individual shippers, consignees, and shipping lines and their
associations namely Container Shipping Line Association (CSLA). The
Ministry further informed that it has requested the Federation of Indian Export
Organisations (FIEO) to institute a quick study on various issues including
container shortages, pricing, practices by shipping lines, impact on different
industries, impact on logistic chains, etc., and give specific recommendations to
improve the situation.
46.3 The Committee requested inputs on the issues from Federation of Indian
Export Organisations (FIEO) and the organization in its written reply informed
that container shortage and high container freight have affected exports as well
as profitability of exporters. The waiting time to get a container has been
increased to 10-20 days and instant availability attracts over 100 per cent
premium. The organization during interaction with the Committee informed that
container manufacturing is dominated by China accounting for roughly 90 per
cent of the total world container manufacturing. It was suggested to the
Committee that the container manufacturing should be encouraged to reduce the
container cost and address the issue of container shortage in the long run.
46.4 The Committee opines that the robust growth of container traffic has
presented an opportunity for promotion of domestic container
manufacturing. It further opines that promotion of domestic container
manufacturing will address container shortage and reduce dependence on
other countries in the long run. The Committee, therefore, recommends the
Ministry of Ports, Shipping and Waterways to provide the required
incentives and R&D support to industries to enable domestic
manufacturing of containers.
DOMESTIC SHIPPING LINE
47.1 The Ministry of Ports, Shipping and Waterways informed the Committee
that the total number of ships under Indian flag is 1488 with gross tonnage of
12.96 Million Tonnes. Out of these, the number of vessels plying on coastal
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waters of India (domestic fleet) is 1021 with gross tonnage of 1.54 Million
Tonnes and the number of foreign going ships is 467 with a gross tonnage of
11.42 Million Tonnes. As regards domestic shipping line, it was informed that
the Merchant Shipping Act, 1958, allows registration of mechanically propelled
sea-going vessels. Such vessels are free to operate within Indian coastal waters
(domestic trade) or for foreign trade based on certificates of the vessel and
compliance of applicable international conventions. Every Indian vessel is
allowed to operate in coastal waters for domestic trade, which meets the
purpose of operation of domestic shipping lines.
47.2 During its verbal submission to the Committee, the Ministry informed
that the numbers of vessels that are flagged in India are limited and the total
cargo that are transported by ships under Indian flag is less than 10 per cent. To
address this, the Government of India has come out with a scheme for flagging
of vessels under which it has undertaken efforts to promote Indian ship building
and Indian repair of ships. It also informed that getting these vessels flagged
and registered is important so as to exercise control and regulation on these
vessels.
47.3 The Committee notes that only 10 per cent of Indian cargo is moved
via Indian flagged vessels which shows that 90 per cent of the charges on
maritime freight goes to foreign entity resulting in revenue loss for India.
The Committee also notes that only 467 domestic vessels with a gross
tonnage of 11.42 Million Tonnes are available for movement of EXIM
trade. With the clarion call of Atmanirbhar Bharat, the Committee
strongly opines that an Indian Shipping line of global repute is the need of
the hour. The Committee, therefore, recommends the Ministry of Ports,
Shipping and Waterways to consider the promotion of Indian Shipping line
and consult with the relevant Ministries/Department and stakeholders to
work out the required fiscal or other support to achieve the same.
FIXATION OF MARINE TARIFF RATES
48.1 On enquiring about the process of fixing marine tariff rates, the Ministry
of Ports, Shipping and Waterways informed the Committee that the Major Port
Authorities (MPA) Act, 2021 has been notified on 18th
February 2021 and this
act shall replace the Major Port Trusts Act, 1963. Under the said Act, the tariff
setting functions of Major ports and Public Private Partnership (PPP)
Concessionaires operating in Major ports mandated on the Tariff Authority for
Major Port (TAMP) has been removed. An Adjudicatory Board shall be
constituted by the Government which shall adjudicate upon disputes between
Major Ports and Public-Private Partnership (PPP) Concessionaires and look into
complaints of port users against Major ports/ PPP Concessionaires.
48.2 The Committee recommends the Government to constitute the
Adjudicatory Board at the earliest. The Committee further recommends
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that a time period should be stipulated for disposal of disputes and
grievances/complaints raised by port users.
48.3 With regard to Major ports, the Committee was informed that the Major
Port Authorities Act, 2021 empowers the Government to make rules/ norms to
be issued to Major Port Authorities for fixation and implementation of the Scale
of Rates. For this purpose, the Tariff Policy/ Guidelines for Major Port
Authorities to be issued by the Ministry of Ports, Shipping and Waterways are
being formulated. Further, the Act also provides that the tariff fixation by
Major Port Authorities shall not be inconsistent with the provisions of the
Competition Act, 2002 and Major ports shall continue to be governed by the
policy directions issued by the Ministry of Ports, Shipping and Waterways as
regards concession in tariff to coastal vessel/ coastal cargo, etc.
48.4 Under the MPA Act, 2021, PPP Concessionaires shall fix the tariff based
on market conditions and such other conditions as may be notified by the
Government. The Tariff Policy/ Guidelines to be followed by PPP
Concessionaires after the MPA Act, 2021 comes into effect are being
formulated. The PPP Concessionaires shall also be governed by the policy
directions issued by the Ministry of Ports, Shipping and Waterways as regards
concession in tariff to coastal vessel/ coastal cargo, etc. and tariff fixation by
PPP Concessionaire shall not be inconsistent with the provisions of the
Competition Act, 2002.
48.5 The Committee recommends the Ministry of Ports, Shipping and
Waterways to consult with relevant stakeholders before finalizing the tariff
policy/ guidelines. The Committee further recommends the Ministry to
monitor the scales of rates fixed by Major Port Authorities as well as tariff
rates fixed by Partnership (PPP) Concessionaires and ensure that they are
in consonance with the Competition Act, 2002. The Committee also
recommends that a competitive tariff rates which is on par with other
competing countries are fixed by the authorities.
48.6 The Committee recommends the Ministry of Ports, Shipping and
Waterways to insert a provision in the tariff policy/guidelines for
imposition of appropriate penalty on Major Port Authorities and
Partnership (PPP) Concessionaires indulging in unfair trade practices and
charging tariff rates above the fixed scale.
PORTS EFFICIENCY
49.1 The Ministry of Ports, Shipping and Waterways informed that it has
been striving to improve the operational efficiencies through mechanization,
digitization and process simplification. As a result, key efficiency parameters
have improved considerably during the last 5 years. The Average Turnaround
Time at Major ports in 2020-21 improved to 55.67 hours as against 82.32 hours
in 2016-17 and the Average Output Per Ship Berth Day at Major ports has
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increased from 14,576 Tonnes in 2016-17 to 15,373 Tonnes in 2020-21.
However, the average container dwell time has increased to 3.49 days in 2020-
21 as against 2.81 days in 2019-20. The Major port-wise detail of container
dwell time, average output per ship per-berth day, average turn-around time for
containers and average pre-birthing time is given at Annexure XII. The average
performance of major ports in key efficiency parameters is given below:
Indicators 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Average Output per ship per-
berth day
(in Metric Tonnes)
13156 14576 15333 16541 16419 15373
Average Turn Around Time
for Containers (in Hours) 44.64 43.44 40.26 37.81 36.94 25.20
Average Pre-Berthing Time
(in Hours) -- 5.77 8.46 5.74 7.23 5.57
Source: Ministry of Ports, Shipping and Waterways
49.2 The Committee observes that the performance of Major ports in the
key efficiency parameters is far from satisfactory though it has shown
improvements during the last five years. The Committee strongly opines
that improvements in these key parameters are critical in boosting our
exports. The Committee, therefore, recommends the Ministry of Ports,
Shipping and Waterways to take concerted efforts to augment
infrastructural gaps at ports and streamline the port processes to enhance
operational efficiencies of ports thereby improving performance in key
parameters.
DOCUMENTATION AND PORT DIGITIZATION
50.1 On enquiring about the list of documents required to be complied along
with procedure to be followed at ports for export consignments, the Ministry
informed the Committee that the exporter prepares the Commercial Invoice and
the Packing List with which the Shipping Bill is filed online using the customs
ICEGATE server. Post filing of shipping bill, the trader submits physical copies
of shipping bill, invoice, packing list, form-13 (acquired from Shipping Lines)
and country of origin certificate (for duty drawback) with the customs to get the
Let Export Order.
50.2 On the basis of Commercial Invoice, Packing List and the Customs
Export Declaration, the Bill of Lading can be obtained from the shipping lines
and the same can be transferred to the buyer in another country. In case the
exported commodity is eligible for any kind of duty drawback, the exporter
needs a Certificate of Origin which can be obtained from trade bodies
authorized by the Ministry of Commerce. The list of documents along with the
level of digitization is given below:
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Name of
Documents Issued By Issued To Status of Digitization
Commercial
Invoice
Exporter Importer Partially Digitized
Packing List Exporter Transportation
Companies & Other
Stakeholders
Partially Digitized
Form-13 Shipping
Lines
Terminal Fully Digitized
Country of
Origin
Certificate
DGFT Shipper Partially Digitized
Let Export
Order
Custom Exporter Fully Digitized
Bill of Lading Shipping
Lines
Exporter Fully Digitized
Certificate of
Origin
Shipping
Lines
Exporter Fully Digitized
Source: Ministry of Ports, Shipping and Waterways
50.3 The Committee strongly opines that the complete digitization of all
documents as well as integration of all processes of various stakeholders
under an integrated single window system is vital for swift and timely
clearance of export consignments. The Committee, therefore, recommends
the Ministry of Ports, Shipping and Waterways to take steps for ensuring
complete digitization of documentary process at ports in coordination with
the concerned stakeholders. The Committee further recommends the
Ministry to work towards providing a single window platform for
integration of all documentary processes.
50.4 The Committee also recommends the Ministry to provide a
mechanism to exporters to raise their issues/grievances with regard to
compliance with port processes. It is further recommended that such
issues/grievances are redressed effectively in a time bound manner.
PORT COMMUNITY SYSTEM (PCS)
50.5 The Port Community System (PCS) is intended to integrate the electronic
flow of trade related document/information and function as the centralized hub
for the ports and other stakeholders like Shipping Lines/Agents, Surveyors,
Stevedores, Banks, Container Freight Stations, Inland Container Depots,
Customs Brokers, Importers, Exporters, Railways/CONCOR, Government
regulatory agencies, etc., for exchanging electronic messages in a secure
manner. The centralized web-based system has been operationalized across all
Major ports. An upgraded version of the system, namely, PCS1x has been
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launched in December 2018. The PCS 1x has digitized processes such
as Electronic Invoice (e-Invoice), Electronic Payment (e-Payment) and
Electronic Delivery Order (e-DO) for physical release of cargo by custodians.
Further, the process of generation of electronic Bill of Lading (e-BL) and Letter
of Credit (LC) process digitally have been implemented in the PCS 1x. Partial
integration of PCS 1x and Indian Customs EDI Gateway (ICEGATE) has been
completed and complete integration between the two has been planned.
50.6 The Committee recommends the Ministry of Ports Shipping and
Waterways to assist the respective port authorities in implementing Port
Community System (PCS) at all Minor ports. The Committee further
recommends the Ministry to reinforce its IT infrastructure and resolve
glitches in the system promptly for facilitating uninterrupted and seamless
transmission of trade information/data.
50.7 The Committee opines that complete integration of the Port
Community System (PCS) with Indian Customs EDI Gateway (ICEGATE)
is critical in ensuring a seamless Customs clearance process at gateway
ports. The Committee, therefore, recommends the Ministry of Ports,
Shipping and Waterways to coordinate with Department of Revenue to
accord utmost priority for complete integration of the two systems.
50.8 The Committee was informed that Container Freight Stations (CFSs)
constitute an integral part of system in movement of cargo to gateway ports.
However, the Port Community System (PCS) has not been implemented at
CFSs requiring the submission of hard copies of documents at the stations.
50.9 The Committee recommends the Ministry of Ports, Shipping and
Waterways to integrate the Container Freight Stations (CFSs) into the Port
Community System (PCS). The Committee further recommends the
Ministry to initiate measures for complete digitization of documentary
process at the CFSs.
DIRECT PORT ENTRY (DPE) AND DIRECT PORT DELIVERY (DPD)
50.10 One of the key measures towards EXIM procedure is Direct Port Entry
(DPE) and Direct Port Delivery (DPD) and the facilities are envisaged to be
initiated across all Major ports. The percentage of DPD at JNPT has increased
from 5.42 per cent in April 2016 to 56.72 per cent in 2019-20 and further to
59.74 per cent in 2020-21. The importers have benefitted by saving around
Rs.8,000- Rs.20,000 per container and reducing the clearance time by an
average of 5 days while clearing under DPD. The facility of DPE is also well
received by trade and the percentage of containers cleared at Jawaharlal Nehru
Port Trust (JNPT) under DPE was 50.52 per cent in FY 2019-20 and 47.63 per
cent in 2020-21.
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50.11 The Federation of Indian Export Organisations (FIEO) in its reply to the
Committee informed that Direct Port Entry (DPE) facility without any routing
through parking plaza is available only at Mundra port, Kakinada port and
Pipava port. In other ports such as Mumbai port, Chennai port, Kolkata port,
Paradip port, Hazira port, Kandla port, New Mangalore port, Cochin Port and
Visakhapatnam port, the DPE facility is not implemented in the true sense as
container are routed through a parking plaza. The organization further informed
that sealed containers are examined by Customs on random basis which require
the container to be re-routed to the Custom designated Container Freight Station
(CFS) thereby incurring additional cost on transportation.
50.12 The Committee recommends that the DPE facility should be
extended to all Major and Minor ports in a phased manner. The
Committee further recommends that, in case of unavoidable requirement
of Customs examinations, required space and infrastructure facilities
should be put in place within the port terminal for carrying the required
customs examination process without having to route it to Container
Freight Stations (CFSs).
50.13 The Committee was also informed that the Direct Port Entry (DPE)
facility is available only for containers transported via road. In the case of
container movement via rail, exporters are required to send their container only
through Inland Container Depots (ICDs) and the DPE facility is not extended
for such containers.
50.14 The Committee recommends the Ministry of Ports, Shipping and
Waterways to coordinate with the Ministry of Railways to extend the
Direct Port Entry (DPE) facility to rail bound containers. The
infrastructural gaps and procedural requirements for facilitating the same
should be addressed in consultation with the concerned
Ministries/Department and relevant stakeholders.
DIGITIZATION OF OTHER PORTS PROCESS
50.15 The Committee was informed that the Radio Frequency Identification
Device (RFID) solution has been implemented at all Major ports to enable
seamless movement of traffic across port gates resulting in substantial
reductions in documentation checks. Further, upgradation and integration with
recent technologies- Internet of Things, Block Chain to ease transaction and real
time tracking has been envisaged in Maritime India Vision 2030. The
Committee was, however, informed by relevant stakeholders that although
many ports have implemented RFID systems, the system is still not fully
automated.
50.16 The Committee recommends that the automated gate in facility is
provided at all ports to enable seamless movement of traffic across port
gates. It further recommends the Ministry of Ports, Shipping and
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Waterways to identify the infrastructural and procedural gaps at ports that
hindered the complete automation of gate in facility and take remedial
measures to address the same.
50.17 The Ministry informed the Committee that 8 Mobile X-ray Container
Scanners (in addition to existing 4 X-ray container scanners previously installed
by customs) have been installed recently at various Major ports to streamline
the process of scanning and reduce the time for scanning and checking of
containers. Currently, majority of the ports are well equipped with specialized
equipment to handle specific commodities.
50.18 The Committee learnt that fixed scanners are more efficient than mobile
scanners achieving 100 per cent scanning and speedy clearance of cargo. Per
hour output of a fixed scanner is comparatively much higher, and therefore is
expected to be an important alternative to mobile scanners, given the growth in
traffic at the port. The operational aspects of Mobile and Fixed Scanners are
given below:
Particulars Mobile Scanner Fixed Scanner
Scanning Method Subject is static and scanner
moves on wheels by a
vehicle
Subject drives through
the scanner
Throughput 20 trucks per hour 30-180 trucks per hour
(depending on design)
Approximate Time
Taken to Scan One
Truck
3 minutes 20 seconds
Source: Bridging Infrastructural Deficits at Select Trade Ports in India, Bureau of Research on
Industry and Economic Fundamentals (BRIEF)
50.19 The Committee observes that fixed scanners are much more efficient
than mobile scanners. The Committee, therefore, recommends the Ministry
of Ports, Shipping and Waterways to invest in fixed scanners and install
adequate scanners at gateway ports to meet the requirement of the
expanding export traffic.
SAGARMALA PROGRAMME
51.1 Sagarmala is a national Programme aimed at accelerating economic
development in the country by harnessing the potential of India’s 7,500 km long
coastline and 14,500 km of potentially navigable waterways. The programme
was approved on 25th March 2015.
STATUS OF THE PROJECTS
51.2 Currently, there are 802 projects with total cost of Rs. 5.52 lakh crore for
implementation under the Sagarmala Programme by 2035. The projects under
Sagarmala Programme are categorized into five pillars, namely, port
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modernization and new port development, port connectivity enhancement, port-
led industrialization, coastal community development, and coastal shipping and
inland water transport. Till date, 168 projects worth Rs. 87,863 crore have been
completed and 242 projects worth Rs. 2.16 lakh crore are under implementation.
Further, 395 projects worth Rs. 2.48 lakh crore are under various stages of
development. Overview of the status of the Sagarmala Programme is given
below:
Sl.
No. Project Theme
Total Completed Under
Implementation
Number
of
Projects
Project cost
(₹ in crore)
Number
of
Projects
Project cost
(₹ in crore)
Number
of
Projects
Project cost
(₹ in crore)
1. Port
Modernization &
New Port
Development
242 2,59,815 75 25.394 59 37,008
2. Port Connectivity
Enhancement
208 1,36,223 48 14,939 78 88,865
3. Port-Led
Industrialization
33 1,19,845 8 45,300 22 73,270
4. Coastal
Community
Development
88 8,090 18 1,423 29 1 ,375
5. Coastal Shipping
& IWT
231 28,356 19 806 54 16,009
Total 802 5,52,330 168 87,863 242 2,16,529 Source: Ministry of Ports, Shipping and Waterways
51.3 The Committee observes that only 20.94 per cent of the targeted
projects have been completed after nearly 6 years of its implementation.
The Committee opines that, the Ministry will be unable to complete the
projects within the stipulated time period at the current pace. The
Committee, therefore, recommends the Ministry to accelerate the
implementation of the projects, undertake real time monitoring, rigorously
follow up with the concerned Ministries/Department and implementing
agencies, promptly identify and address issues that hindered project
implementation to avoid delay in the process.
NATIONAL WATERWAYS
52.1 To promote Inland Water Transport (IWT) in the country as an
economical, environment friendly supplementary mode of transport to rail and
road, 111 inland waterways spreading across 24 States in the country were
declared as National Waterways (NWs), thus, increasing the total length of
NWs in India to 20,275 km. Based on the outcome of techno-economic
feasibility and Detailed Project Reports (DPRs) prepared for NWs, 23 NWs
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have been found to be viable for cargo and passenger movement and
developmental activities have been taken up/ initiated in 13 viable NWs. Detail
status of development of National Waterways (NWs) is given at
Annexure XIII.
COST OF INLAND WATER TRANSPORT VIS-À-VIS ROAD AND RAIL
52.2 The Committee was informed that Inland Water Transport is found to be
more economical vis-à-vis road and rail. As per Rail India Technical and
Economic Service Limited (RITES) Report, 2014 on “Integrated National
Waterways Transportation Grid”, the cost comparison between Inland Water
Transport (IWT) mode and other dominant modes of surface transport is as
below:
Mode Railways Highways IWT
Freight (Rs./T.km) 1.41 2.50 1.06
Source: Ministry of Ports, Shipping and Waterways
FREIGHT TRAFFIC OF NATIONAL WATERWAYS
52.3 The Committee was informed that the total traffic handled by the
National Waterways increased from 55.03 Million Tonne (MT) in 2017-18 to
83.61 MT in 2020-21, registering an increase of 52 per cent. It is targeted to
enhance inland water cargo to 120 Million Tonnes Per Annum (MTPA) by
2030. The key commodities being transported on waterways are iron ore, coal
and coke, fly ash, steel, lime stone, construction material and over dimensional
cargo, etc. The year-wise details of volume of cargo transported through inland
waterways for the last five years is given below:
(Value in Million Tonnes)
Year 2016-17 2017-18 2018-19 2019-20 2020-21
Cargo Handled 55.47 55.03 72.30 73.60 83.61
Source: Ministry of Ports, Shipping and Waterways
52.4 The Committee was informed that the Ministry has faced various
challenges in implementation of the National Waterways projects. Such
challenges includes varying and limited depths during lean season, erosion of
river banks causing excessive siltation, lack of cargo earmarked for Inland
Water Transport, non-mechanization of navigation lock systems, insufficient
unloading facility at terminals hindering use of Inland Water Transport by
shippers, lack of vessel financing options, and apprehension of logistics and
shipping market to shift to Inland Water Transport in absence of policy support.
52.5 The Committee observes that Inland Water Transport offers a more
economic mode of transport especially for bulk cargoes. It is of the opinion
that this mode of transport is critical in addressing logistical constrains and
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in reducing the logistics cost in India. The Committee, therefore,
recommends the Ministry of Ports, Shipping and Waterways to take
measures to overcome the challenges faced and implement the National
Waterways projects in a time bound manner.
52.6 The Committee also recommends the Ministry to work out an
effective marketing strategy to attract logistic operators and also create
awareness about the cost benefits of Inland Water Transport vis-à-vis other
modes. The Committee further recommends the Ministry to lend the
required policy support and also provide necessary incentives to logistics
operators to shift from other modes of transport to Inland Water
Transport.
PORTS-INDUSTRY INTEGRATION
53.1 The Committee was informed that the Ministry of Ports, Shipping and
Waterways is developing a Special Economic Zone (SEZ) at Jawaharlal Nehru
Port Trust (JNPT) with an investment upto Rs. 12,554 crore and identified
Kandla and Paradip Ports for development of Smart Port Industrial Cities
(SPICs) with estimated investment of Rs. 11,147 crore and Rs. 7,600 crore
respectively. Further, Coastal Employment Unit (CEU) at V. O. Chidambaranar
Port Trust (VoCPT) is also under development. In addition, Ministry of Ports,
Shipping and Waterways has identified 6560 acres of land available with Major
ports and type of industries preferred to be set up based on scope of
development. Port-wise details are provided as Annexure XIV.
53.2 The Committee applauds the measures taken by the Ministry for
integration of ports and industry clusters. The Committee opines that these
projects have a huge potential to boost exports and also improve
competitiveness of exports by reducing transportation cost. The
Committee, therefore, recommends the Ministry of Ports, Shipping and
Waterways to initiate the development of these industrial projects at the
earliest. It further recommends that other supporting infrastructural
facilities such as uninterrupted electricity supply, Common Effluent
Treatment Plants, etc. are provided within the industrial clusters.
DRAFT INDIAN PORTS BILL, 2021
54.1 During interaction with the Ministry of Ports, Shipping and Waterways,
the Committee was informed that the Ministry had circulated the draft Indian
Ports Bill for seeking inputs from stakeholders. It was also informed that the
exercise of introducing a new Bill was based on the necessity to update the
outdated Indian Ports Act, 1908. The Bill pertains to safety and other regulatory
requirements which are required to be fulfilled under international conventions,
and also to have a legislative framework which is in tune with the global best
practices.
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54.2 The Committee raised concerns regarding the usurpation of control of
Minor ports from State Governments through the new Bill. The Ministry
informed that the non-major ports are under control of the respective State
Governments. The Ministry assured the Committee that the existing framework
regarding the control of Minor ports will remain unchanged under the new Bill.
The Ministry further informed that the newly introduced bill in no way dilute
the autonomy of the States with regard to administration of Minor ports.
54.3 The Committee recommends the Ministry of Ports, Shipping and
Waterways to ensure that provision of the draft Indian Ports Bill does not
in any way affect the autonomy of State Governments with regard to
control of Minor ports. The Committee further recommends that the
concerns and inputs of State Governments are carefully examined by the
Ministry and incorporated in the Bill, and also ensure that no decision is
taken without the prior concurrence of the State Governments.
INTERNATIONAL CO-OPERATION IN COASTAL SHIPPING AND
INLAND WATER TRANSPORT
INDO BANGLADESH PROTOCOL ON INLAND WATER TRANSIT AND TRADE
55.1 The Committee was informed by the Ministry of Ports Shipping and
Waterways that a Protocol on Inland Water Transit and Trade (PIWTT)
agreement exists between India and Bangladesh under which the two
Governments have made mutually beneficial arrangements for the use of their
waterways for movement of cargo between the two countries in accordance
with the laws of the country through the territory of which goods are moving.
Further, agreement has been made for extension of protocol routes, inclusion of
new routes, and declaration of new Ports of Call to facilitate trade between the
two countries and these agreements came into effect on 20th May, 2020. The
designated Inland Water Routes under this protocol are:
Route No. Inland Water Routes Distance (in km)
1 & 2 Kolkata – Silghat & vice versa 1720
3 & 4 Kolkata – Karimganj/Badarpur& vice versa
1339
5 & 6
Dhulian – Aricha& vice versa 270 km
7 & 8
Silghat – Karimganj/Badarpur& vice versa 1437 km
9 & 10 Sonamura- Daudkandi& vice versa 93 km Source: Ministry of Ports, Shipping and Waterways
55.2 The Ministry further informed that the inclusion of Sonamura-
Daudkhandi stretch of Gumti river (93 km) as Indo-Bangladesh Protocol (IBP)
route no. 9 & 10 in the Protocol will improve the connectivity of Tripura and
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adjoining States with Indian and Bangladeshi economic centres and will help
the neighbouring regions of both the countries. This route will also be
connecting all existing IBP routes from 1 to 8. Further, the operationalization of
Rajshahi-Dhulian-Rajshahi routes and their extension up to Aricha (270 km)
will facilitate the growth of infrastructure in Bangladesh as it would reduce the
transportation cost of stone chips/aggregate to northern part of Bangladesh
through this route. It will also decongest Land Custom Stations in both sides.
The cargo of 2.63 Million Tonnes can be diverted at the proposed IWT terminal
at Dhulian (Maia) with stone chips as the major commodity.
55.3 The Committee opines that the operationalization of routes identified
under the agreement is vital for our exports in view of the increased trade
volume with Bangladesh. Further, these routes have a potential for
increasing our exports footprint in our neighbouring country. The
Committee, therefore, recommends the Ministry of Ports, Shipping and
Waterways to take necessary measures for operationalization of the routes
under the agreement at the earliest.
COASTAL SHIPPING AGREEMENTS WITH BANGLADESH
55.4 The Committee was informed by Ministry of Ports, Shipping and
Waterways that a Coastal Shipping Agreement exist between India and
Bangladesh providing an alternative route for the transportation of EXIM cargo
as well as cargo to the North Eastern part of the country using River-Sea Vessel
(RSV) or equivalent class vessels. The Standard Operating Procedure for the
shipping agreement has already been finalized and the same is currently
operational.
55.5 The Ministry also informed that a Memorandum of Understanding (MoU)
was signed with Bangladesh to allow the use of Chittagong and Mongla ports
for movements of good to and from India. Under the MoU, movements of
goods to and from Mongla and Chittagong ports via waterways, rail, road or
multimodal transport subject to the relevant laws and regulations of Bangladesh
is allowed.
55.6 The Committee recommends the Ministry of Ports, Shipping and
Waterways to finalize the proposal regarding the administrative fee to be
charged by Bangladesh and simultaneously pursue with the Bangladesh
Government at appropriate level so that the Chittagong and Mongla ports
can be used for exports movements at the earliest.
KALADAN MULTIMODAL TRANSIT TRANSPORT PROJECT IN MYANMAR
55.7 The Inland Waterways Authority of India is the Project Development
Consultant for implementing the Kaladan Multi Modal Transit Project in
Myanmar. The Inland Water Transport (IWT) component of the project
comprising of construction of Sittwe Port and IWT terminal at Paletwa; fairway
development of Kaladan river (Sittwe - Paletwa stretch) and construction of six
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IWT vessels (300 tonnes each) is completed. The objective of the project is to
provide an alternate route to Mizoram from Kolkata / Haldia Ports through
Kaladan River in Myanmar.
55.8 The Committee strongly opines that the project is crucial for
movement of cargoes from the North Eastern Region and has a potential
for boosting exports from the region. The Committee, therefore,
recommends the Ministry of Ports, Shipping and Waterways to coordinate
with Myanmar Government at appropriate level and finalize necessary
procedures and guideline for facilitating trade through the Kaladan River
under the Kaladan Multi Modal Transit Project.
TRANSIT TREATY WITH NEPAL
55.9 The Ministry of Ports, Shipping and Waterways informed the Committee
that amendment to the Treaty on Transit with Nepal to include waterway as
mode of transportation along with rail and road and the list of ‘mutually agreed
routes’ has been agreed by the two countries. Through this treaty, inland
waterway connectivity to Nepal is to be provided through Sabhibganj, Kalughat
and Varanasi Terminals on National Waterway-1 and Kolkata Port Trust for
international sea trade.
55.10 The Committee is of the opinion that the inclusion of inland water
transport under the transit treaty provides opportunity to increase our
trade volume with Nepal. The Committee, therefore, recommends the
Ministry of Ports, Shipping and Waterways to undertake necessary
infrastructural developments and also to finalize the required procedural
guidelines for facilitating trade with Nepal through the Sabhibganj,
Kalughat and Varanasi Terminals on National Waterway-1 and Kolkata
Port Trust at the earliest.
INTEGRATED CHECK POSTS (ICPs)
56.1 Border checkpoints are an integral part of border management. Efficient
border checkpoints are crucial for promoting regional trade and a robust
infrastructure at border checkpoints is essential for growth of trade specifically
with our land neighbouring countries. As part of efforts to improve the
infrastructure at border checkpoints, the Government has been developing
Integrated Check Posts (ICPs). An ICP is intended to be a one-stop solution that
houses all regulatory agencies, such as immigration, customs and border
security. They are envisaged to provide all the facilities required to enable
smooth cross border movement of individuals, vehicles and goods within an
integrated complex. The Land Ports Authority of India (LPAI), a statutory body
under the Department of Border Management, Ministry of Home Affairs is
mandated inter-alia to plan, develop, construct, manage and maintain Integrated
Check Posts (ICPs); facilitate functions of various agencies working at such
check posts, coordinate with various concerned Ministries/ Departments/
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Agencies of Government of India or other agencies for regulating the entry and
exit of passengers and goods.
STATUS OF INTEGRATED CHECK POSTS (ICPs)
57.1 On enquiring about the number of Integrated Check Posts (ICPs) that are
currently in operation and the number of ICPs that are planned to be
constructed, the Department of Border Management informed that 9 ICPs are
currently in operation. Further, 2 ICPs are under construction and in-principle
approval has been accorded in 2018 for another 12 ICPs which are at various
stages of implementation. The status of these ICPs is attached in Annexure XV.
57.2 In their written reply to the Committee, the Department of Border
Management informed that delay in acquisition of land by the respective State
Governments and handing them over to Land Ports Authority of India (LPAI) is
the major issue impeding the establishment of ICPs.
57.3 The Committee is discontented to observe that most of the Integrated
Check Posts (ICPs) are at initial stage of implementation even after nearly
three years since approval has been accorded. The Committee notes that
delay in land acquisition has been the major issue that resulted in such
inordinate delay. The Committee, therefore, recommends the Department
of Border Management to take concerted effort to address this issue and
coordinate with the respective State Governments to resolve the same.
TRADE VOLUME AND STATUS OF INFRASTRUCTURE
58.1 The Department of Border Management informed the Committee that
around 3.77 per cent of India’s total export in 2020-21 has been undertaken
through the Integrated Check Posts (ICPs).
58.2 The year-wise and destination-wise value of goods through ICPs during
the past five years is given below:
(₹ in crore)
ICPs Destination 2016-17 2017-18 2018-19 2019-20 2020-21
Attari Pakistan 1063.63 744.2 726.2 227.77 0
Agartala Bangladesh 0.640 0.267 1.420 0.370 0.930
Petrapole Bangladesh 15654 16110 17437 15991 12610
Raxaul Nepal 19972 18726 24139 22821 20028.13
Jogbani Nepal 4280 5272 6979 5727 5558.16
Srimantapur Bangladesh 2.45 0.25 0.47 0.41 8.24
Sutarkandi Bangladesh 45.1 55.9 359.7 67 49.27
Moreh Myanmar 0.67 0.43 30.7 354.9 3.11
Total 41018.85 40908.78 49673.07 45189.08 38257.84 Source: Department of Border Management, Ministry of Home Affairs
58.3 The Department of Border Management also informed that modernisation
and strengthening of infrastructure at ICPs is a continuous process. It further
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informed that various initiatives have been taken to improve and bridge
infrastructural gaps at ICPs which includes conducting a study to identify the
gaps in infrastructure at the existing Land Customs Station (LCS) and preparing
a ten-year upgradation plan in a scientific manner to enhance trade and reduce
the dwell time; initiating a process for installation of Full Body Truck Scanning
System (FBTS) and Radio Detection Equipment (RDE) for nonintrusive
scanning; preparing a feasibility report along with Detailed Project Report
(DPR) for establishing railway siding at ICPs located at Raxaul, Jogbani and
Petrapole; initiating the process for designing and implementing Land Port
Management System (LPMS) which is an integrated online platform for all
stakeholders at ICP equipped with the provisions for 24X7 automated vehicle
tracking, parking slot management, one-time uploading of documents, real-time
collection of data, Automatic Number Plate Recognition (ANPR) facility, etc.;
providing mechanized handling equipment such as forklifts, weighbridges,
hydra-canes, etc., at all major ICPs; and planning to provide a dedicated and
secure network connectivity at ICPs for seamless connectivity of LPMS and
other systems.
58.4 The Committee notes that with a 3.77 per cent share in our total
exports, Integrated Check Posts (ICPs) plays a critical role in boosting our
exports. The Committee, therefore, recommends the Department of Border
Management to undertake the infrastructural upgradation measures in a
time bound manner to enable efficient handling of increasing exports
volumes at ICPs.
PARKING SPACE AT INTEGRATED CHECK POSTS (ICPs) AND
CHARGES LEVIED
59.1 The Department of Border Management informed the Committee that
adequate parking space is available at ICPs for trucks passing through land
ports. However, keeping in view of the demand for more parking space at ICP
Petrapole, a new parking facility to accommodate more than 500 vehicles is
being constructed and is at the stage of completion. The details of ICP-wise
total parking area and average number of trucks passing through, ICPs are as
follows:
Name of ICP No. of Trucks that
can be accommodated
Average No. of trucks passing
through ICP per day
(approximately)
Attari 200 Nil at present
Agartala 100 Nil at present
Petrapole 600 400
Raxaul 200 200
Jogbani 150 150
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Name of ICP No. of Trucks that
can be accommodated
Average No. of trucks passing
through ICP per day
(approximately)
Srimantapur 50 10
Sutarkandi 100 40
Moreh 50 Nil at present
Source: Department of Border Management, Ministry of Home Affairs
59.2 On enquiring about the different charges levied and the concerned
authority responsible for levying such charges on an export consignment at
various points inside ICPs, the Department informed that charges levied on
export cargo vehicles depends on the capacity and size of the vehicle, and
nature of export goods. The Land Port Authority of India Act, 2010 authorized
the LPAI to determine and charge fees for the cargo handling, warehousing,
parking of trucks or for any other service or facility offered in connection with
transport operations involved in export. The Authority decides upon the rate
after conducting market research and survey of the prevailing rates in the nearby
areas and after due consultation with the stakeholders. Details of the charges
levied by concerned authorities are as follows:
Sl.
No.
Kinds of
charges levied Point
Charges in
Rs.
Authority
1. Entry-cum
parking charges
Entry of the vehicle in
the ICP complex and
parking of vehicles at the
designated area.
100 to 500
per vehicle
per day
LPAI
2. Weighment
charges
Weighment of cargo /
vehicle at the lorry
weighs bridge installed
in the ICP complex.
100 to 500
per vehicle
per day
LPAI
3. Warehousing
charges
Storage of cargo in the
godowns at the
designated place.
4 to 25 per
metric ton
per day
LPAI
4. Handling
charges
Unloading / loading of
the cargo from / to
vehicles, examination of
the cargo and inventory
thereof.
138 to 250
per metric
ton per
operation
LPAI
5. Customs duty Examination /
assessment of duty and
payment of customs duty
as per the Indian Custom
As per the
rates
decided by
Customs
Customs
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Sl.
No.
Kinds of
charges levied Point
Charges in
Rs.
Authority
Act. Authority
Source: Department of Border Management, Ministry of Home Affairs
59.3 The Committee opines that charges levied by Land Ports Authority
of India can have an overall impact on the price of our products at export
markets. The Committee, therefore, recommends the Department of
Border Management to take into account the overall competitiveness of our
exports as a factor for deciding and fixing the various charges at Integrated
Check Posts (ICPs) and ensure that our exports are not adversely impacted
due to high charges levied at such ports.
59.4 With regard to ICP Petrapole, the Committee was informed by relevant
stakeholders that despite the availability of parking at the ICP, cargo trucks do
not have direct access to parking space and trucks are routed through Kalitala
Parking which is managed by local Bongaon Municipal Authorities. Further,
movement of cargo trucks has been delayed due to limited intake capacity of
Bangladesh and resulted in incurring high cost as parking charges.
59.5 The Committee recommends the Department of Border Management
to explore the feasibility of providing direct access to cargo trucks to
parking space at ICP Petrapole and an online interface/ application to
facilitate exporters to book their parking slot for a particular day may also
be implemented. The Committee further recommends providing
relaxations for parking charges at ICP Petrapole in view of the delay in
movement of cargo trucks due to limited intake capacity of Bangladesh.
59.6 The Committee also recommends the Department of Border
Management to take up the issue of limited intake capacity of Bangladesh
with the concerned authority of that country for augmenting infrastructure
facilities on their side.
DOCUMENTARY AND REGULATORY PROCESS
60.1 The Committee enquired about the documentary and regulatory process
at Integrated Check Posts (ICPs) and the level of digitization of such process.
The Department of Border Management in their written reply informed the
Committee that there are 15 processes, 15 documents and 5
agencies/stakeholders are involved in clearing an export consignment at ICPs.
The Department further informed that only 5 of the 15 processes are digitized
and the rest are carried out manually. The average time taken for complying
with these documentary and regulatory processes for exports is 4 - 6 hours. The
details of documentary and regulatory processes which are to be complied with
for exports at ICPs are attached at Annexure XVI.
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60.2 On enquiring about the steps taken by the Department to ensure complete
digitization of the processes at ICPs, it was informed that the implementation of
Land Ports Management System (LPMS) would digitalize all the 15 processes,
thereby, reducing the dwell time of trade and cross border movement of
passengers.
60.3 The Committee opines that digitization of trade process at ICPs is
critical for ensuring seamless movement of exports cargo and reducing
dwell time. The Committee, therefore, recommends the Department of
Border Management to accord utmost priority to implement Land Ports
Management System (LPMS) across all ICPs and ensure that it is
implemented at the earliest.
60.4 The Committee opines that the documents required during the
security check of vehicle by Border Guarding Force (BGF) at check gates
can be easily digitized by utilizing the facilities provided under DigiLocker.
The Committee, therefore, recommends the Department of Border
Management to coordinate with the Ministry of Electronics and
Information Technology to leverage the facilities provided under
DigiLocker to digitize the documents checking at check gates.
60.5 The Committee also recommends the Department of Border
Management to provide efficient and secure internet connectivity at ICPs
to facilitate digitization of processes as well as ensure seamless and
uninterrupted flow of exports data.
CUSTOMS FACILITATION
61.1 The Central Board of Indirect Taxes and Customs (CBIC) plays a vital
role to manage international traffic swiftly and efficiently while guaranteeing
that all goods/passengers, etc., imported into the country or exported out of the
country by sea, air, land, or rail routes are in conformity with the laws of the
land. The Customs Act, 1962 is the basic statute which regulates the entry/exit
of different categories of vessels/crafts/goods/passengers, etc., into or outside
the country. The Board is given the powers to appoint customs ports, airports
and Inland Container Depots (ICDs) which is the designated for
loading/unloading export/import goods. It also has the power to notify places as
Land Customs Stations (LCSs) for clearance of goods imported or exported by
land or inland water.
61.2 The Committee was informed that the Foreign Trade Policy specifies
three mandatory documents for exports, namely, Bill of Lading/ Airway Bill/
Lorry Receipt/ Railway Receipt/Postal Receipt; Commercial Invoice cum
Packing List; and Shipping Bill/Bill of Export/ Postal Bill of Export. The
responsibility of issuing the above documents lies with different
Departments/Ministries. Besides, there are other regulatory agencies/Partner
Government Agencies (PGAs) which includes Textile Committee, Drug
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Controller, Food Safety and Standards Authority of India (FSSAI), etc., for
clearing an export consignment. The Indian Customs has created a system
called Single Window Interface for Trade (SWIFT) where PGA are digitally
connected and exchange of communication takes place between PGA and
customs before giving clearances to EXIM consignments.
INDIAN CUSTOMS EDI SYSTEM (ICES) & INDIAN CUSTOMS
ELECTRONIC GATEWAY (ICEGATE)
62.1 The Indian Customs EDI System (ICES) is designed to exchange/transact
customs clearance related information electronically using Electronic Data
Interchange (EDI). The system provides for internal automation of the custom
house for a comprehensive, paperless, fully automated customs clearance
system that makes the functioning of customs clearance transparent and
efficient. It also provides an online, real-time electronic interface with the trade,
transport, banks and regulatory agencies concerned with customs clearance of
import and export cargo through Indian Customs Electronic Gateway
(ICEGATE).
62.2 The Indian Customs Electronic Gateway (ICEGATE) is the portal of
Indian Customs of Central Board of Indirect Taxes and Customs (CBIC) that
provides e-filing services to the trade, cargo carriers and other trading partners
electronically. Through this facility, Indian Customs offers a host of services,
including electronic filing of the Bill of Entry (import goods declaration),
Shipping Bills (export goods declaration), e-Payment of customs duty, a free of
cost web-based Common Signer utility for signing all the customs documents,
facility to file online supporting documents through e-Sanchit, end to end
electronic Integrated Goods and Services Tax (IGST) Refund, etc. The portal is
internally linked with multiple partner agencies including Reserve Bank of India
(RBI), banks, Directorate General of Foreign Trade (DGFT), Directorate
General of Commercial Intelligence & Statistics (DGCIS), Ministry of Steel,
Directorate of Valuation and other various Partner Government Agencies
involved in EXIM trade enabling faster customs clearance. All electronic
documents/ messages being handled by the ICEGATE are processed at the
customs' end by the Indian Customs EDI System (ICES), which is running at
245 customs locations.
62.3 The Committee was informed by relevant stakeholders that they are
facing issues in utilizing the ICEGATE portal in case of export of bulk liquids
like petroleum/petro-chemical products due to the nature of the products. For
such products, the goods are loaded onto the ship through pipeline and the
quantity of goods loaded on ship is decided after the completion of loading, by
an independent surveyor. Permission for loading the goods on ship is granted
manually by the customs authorities based on export quantity indicated on the
shipping bill filed by exporter. However, given the nature of these products,
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there is always a difference in the quantity indicated on the Shipping Bill filed
provisionally and quantity finally exported, as assessed by the surveyor.
62.4 The process creates issues/problems for the exporters while availing
export benefits as the conversion of Foreign Exchange to Rupee happen to be
based on an incorrect data recorded by the customs authorities, i.e., quantity
indicated on the shipping bill filed by exporter. Further, in case of fulfilment of
fixed export obligation, the calculation is done based on the data entered by the
customs authorities and further creates issues in Advance Authorization
redemption process in view of automation of the process by Directorate General
of Foreign Trade (DGFT).
62.5 The Committee recommends that a module may be created in the
Indian Customs Electronic Gateway (ICEGATE) system for generating a
provisional shipping bill, which can later be finalized based on the final
price/quantity data provided by an independent surveyor and submitted by
exporters. The Committee further recommends that only the finalized
shipping bill generated on ICEGATE based on the final data submitted by
exporters be transmitted to Reserve Bank of India (RBI) and Directorate
General of Foreign Trade (DGFT) system for claiming export benefits.
62.6 The Committee was informed that exporters have to get themselves
registered for Authorized Dealer Codes (AD codes) of banks at Customs
Electronic Data Interchange (EDI) Port requiring them to register at all ports
where they export their products. Further, ICEGATE system does not allow
multiple registrations of Authorized Dealer Codes (AD codes) of banks for a
single Importer-Exporter Code (IEC) at a single port. This is creating
difficulties, as some companies have multiple banks for a single IEC. Further,
there are cases where the shipping bills transmitted from customs through
ICEGATE system are not appearing in DGFT system, causing hardships to
exporters in claiming export benefits.
62.7 The Committee recommends the Department of Revenue to explore
the feasibility to enable multiple registrations of Authorized Dealer Codes
(AD codes) of banks for a single Importer-Exporter Code (IEC) at a single
port under the system. The Committee further recommends the
Department to work towards implementation of system of Centralized
Electronic Data Interchange (EDI) registration that is applicable across all
airports, sea ports and land ports instead of exporters requiring to register
at each of the port.
62.8 The Committee recommends the Department of Revenue to fortify its
ICEGATE system to enable better and seamless integration with the other
partnering agencies including Directorate General of Foreign Trade
(DGFT). The Committee further recommends that a Nodal Officer
specifically designated with the task of resolving issues faced by exporters
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in utilizing the system should be appointed. The Committee also
recommends that the ICEGATE Helpdesk may be strengthened to enable
swift resolution of issues.
62.9 The Committee was informed that transmission of shipping bills in
Export Data Processing and Monitoring System (EDPMS) are sometimes
delayed, resulting in huge problem as the authorized dealer banks are not
processing the export documents for negotiation/collection. Thus, the export
proceeds from the buyer remain outstanding and exporters are facing shortage
of funds for execution of their other orders.
62.10 The Committee recommends the Department of Revenue to consider
the feasibility of issuing a certificate on the basis of which banks may
process the export documents in case of delay in transmission of shipping
bills in Export Data Processing and Monitoring System (EDPMS).
RISKY EXPORTERS
63.1 The Committee was informed by Federation of Indian Export
Organisations (FIEO) that sizable number of exporters have been classified as
risky exporters by an automated system based on the trail of the GST payment
of exporters which is evaluated against a pre-defined criteria and matrix adopted
by the Directorate General of Systems & Data Management. The list of the
exporters is then sent by the Directorate General (Systems) to the concerned
Chief Commissioner of the Central Tax and Risk Management Centre of
Customs (RMCC) departments, respectively. RMCC then insert alerts for all
such risky exporters and make 100 per cent examination mandatory of export
consignments relating to those risky exporters. Further, alert is also issued to
suspend IGST refunds in such cases.
63.2 The Committee was further informed that genuine exporters are facing
problems with the system as no communication is made to exporters when they
are classified as risky and they come to know about it only when they go to
customs office and file document for export clearance. Further, a Standard
operating Procedure (SOP) is in place to remove exporters from the risky tag
within a month if all criteria set by customs are met. However, the procedures
are not completed in time and exporters have to wait for as long as 12 months to
resolve the issue leading to delay in clearance of export consignments and also
refunds.
63.3 It was suggested to the Committee that a communication should be sent
to exporters on being classified as risky and an opportunity be provided to them
to explain and resolve the issue. Further, while the use of analytics and artificial
intelligence for such classification in welcomed, it was suggested to the
Committee that proactive measures should be taken to ensure timely
implementation of the SOPs for removal of risk tag at the ground level.
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63.4 The Committee welcomed the measures taken by the Department of
Revenue for identifying and penalizing fraudulent Input Tax Credit (ITC)
claims by some exporters. The Committee, however, opines that such
system should not come at the cost of punishing genuine exporters due to
error in identification. The Committee, therefore, recommends the
Department of Revenue to streamline its system to avoid error in
identification, send prompt communication to exporters who are identified
as risky, and provide opportunity to exporters for resolution before taking
further steps. The Committee further recommends that the implementation
of Standard Operating Procedure (SOP) at the ground level should be
completed within the stipulated time period, i.e., one month.
OTHER ISSUES IN CUSTOMS PROCESS
INTEGRATED GOODS AND SERVICES TAX (IGST) REFUNDS
64.1 The Committee was informed that IGST refund is automatic process
without the requirement of manual intervention. However, due to errors
committed by exporters in preparing invoices, filing shipping bills, filing
returns, etc., automatic system validation is hindered resulting delay in getting
refunds. It was suggested to the Committee that an alert may be sent to the
exporter wherever a mismatch is detected by the system so that the errors are
rectified promptly in order to make the process smooth and reduce the time in
crediting of refund to the exporter’s account.
64.2 The Committee recommends that necessary changes may be made in
the software in consultation with the stakeholders whereby an automatic
process of sending alert to the exporter may be worked out so that when an
error/mismatch is detected by the system the detailed information
regarding the same may be conveyed promptly to the exporters to enable
immediate rectification of the same by exporters.
REQUIREMENT OF PHYSICALLY SIGNED DOCUMENTS
64.3 The Committee was informed exporters are required to physically sign
Letters, Refund Claims, Bonds and Undertakings, High Sea Sales Agreements,
Appeals and other documents in the presence of a Notary and then get the
documents notarized in accordance with existing procedures for clearance of
exports. Exporters are facing problem to comply with this requirement
particularly during the pandemic period.
64.4 The Committee is perturbed to observe that the requirement of
physical signature has not been dispensed with despite the promotion of
faceless and contactless customs process, and electronic/digital signed
documents already recognized under the Information Technology Act,
2000. The Committee opines that acceptance of e-signature/digital
signature would enhance the customs clearance process. The Committee,
therefore, recommends the Department of Revenue to issues notification on
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acceptance of digitally/electronically signed signature on customs
documents.
MANUAL REGISTRATION PROCESS FOR UTILIZATION OF AUTHORIZATION/DUTY
CREDIT SCRIPS
64.5 The Committee was informed that exporters are required to register
manually with the customs authority for utilization of the authorization/duty
credit scrips despite the same being issued online by Directorate General of
Foreign Trade (DGFT) and transmitted digitally to the customs authority. This
increases the transaction time as well as transaction cost.
64.6 The Committee finds it perplexing to observe that the customs
authority insists for manual registration of authorization/duty credit scrips
when the same is transmitted online by Directorate General of Foreign
Trade (DGFT). The Committee, therefore, recommends the Department of
Revenue to accept the authorization/duty credit scrips transmitted online
by DGFT or digitize the registration process at the custom’s end.
MANUAL PROCESSING OF SHIPPING BILLS AT LAND CUSTOMS STATIONS
64.7 The Committee was informed that shipping bills are processed manually
and required to be uploaded by customs authority into system in case of exports
carried out through Land Customs Stations (LCS). The process of uploading the
manually provided shipping bills into the system is taking a lot of time resulting
in delay in getting refunds.
64.8 The Committee recommends the Department of Revenue to take
necessary measures for ensuring complete digitization of all customs
processes at Land Customs Stations (LCS) including processing of shipping
bills. The Committee further recommends the Department to ensure that
the manual shipping bill details are entered into the system by customs
official within a specified period and avoid delay in processing of refunds.
VISIT TO UNION TERRITORIES OF JAMMU & KASHMIR AND
LADAKH
SRINAGAR
65.1 The Committee visited the Air Cargo Complex at Bishambar Nagar,
Srinagar to have an overview of air cargo infrastructure. While interacting with
officials of the Custom Department, it learnt that the cargo complex is at a
considerable distance of 15 Kms from the airport of Srinagar. This results into
undue delay in exports due to custom facilitations and examination of the export
cargo at a faraway distance from the airport. The officials, therefore, urged that
a dedicated space at the airport may be allotted to the Custom Department on an
immediate basis which would be used for constructing an air cargo complex.
However, the Airports Authority of India submitted that the required space to
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Custom Department would be allotted only after the completion of new
constructions which may take considerable time (up to 3 years).
65.2 Considering the problems expressed by the Custom Department, the
Committee took an on-the-spot visit of the airport of Srinagar and surveyed the
existing cargo premises. It interacted with Airport Director, Srinagar [Airports
Authority of India (AAI)] and emphasized upon earmarking a dedicated space
to the Custom Department to facilitate air cargo operations at the airport. As a
result of the efforts of the Committee, an area previously used by the now
defunct Jet Airways, was allotted to Customs Department by AAI on a short
term basis.
65.3 The Committee notes with pleasure the favourable outcome of its
intervention in persuading the Airports Authority of India to allot space
for Custom Department at Srinagar Airport for setting up an Air Cargo
Complex. The earmarking of a dedicated area to the Custom Department,
albeit on a short term basis, would ensure smooth handling and airlifting of
export cargo from the region. It, therefore, recommends the Custom
Department to expedite the setting up of the Complex, at the earliest, in
order to facilitate air cargo operations at the airport.
65.4 The Committee was further informed about the construction work being
undertaken by AAI at the airport to expand the existing area following which it
would be provided to Custom Department for operations on a medium term
basis. The Committee was also informed that AAI would also explore the
possibility of applying for custodianship of the said area under Section 45 of the
Customs Act, 1962. Customs Department, hence, could also notify the area in
future as designated ‘Customs area’ under section 8 of the Customs Act, 1962.
The officials of Custom Department submitted that the present requirement is of
3000 square feet of area. Also, a provision of residential complex is also needed
for the officials of the Custom Department which would ensure their safety and
security in Srinagar.
65.5 The Committee recommends that the Airports Authority of India
should ensure promptitude in completing the construction work at the
airport within a reasonable time frame. It exhorts that the required land
should be allotted to the Custom Department on a priority basis which
would provide unhindered transition of air cargo from Srinagar since the
exports from the region comprises goods of extreme perishability such as
apples, apricots and other horticulture and floriculture items. It is also
imperative that an adequate land should be earmarked for building a
residential complex in view of the fragility of the region in matters of
security. The Committee is also of the considered view that an optimal
framework should be devised to undertake collaborative efforts by both
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Custom Department and Airports Authority of India to make Srinagar as
an air cargo export hub of the region.
65.6 The Committee was informed that due to absence of quality testing and
certification facilities in Srinagar the export products such as pashmina shawls,
carpets, etc., from Srinagar are being sent to Delhi or Mumbai. As a result, the
exporters have to bear the additional costs and time in exporting their products.
It was suggested that adequate number of quality testing labs should be set up
and certification facilities should be made available under the TIES Scheme in
Srinagar.
65.7 The Committee notes that the exports from the Union Territory of
Jammu & Kashmir mainly consists of high-end products which requires
adherence to various quality standards especially in regulated advanced
markets of the world. It, therefore, recommends establishment of adequate
National Accreditation Board for Testing and Calibration Laboratories
(NABL) labs and testing centres in the Union Territory of Jammu and
Kashmir which would play a vital role in enhancing the quality of products
in line with international standards. It also recommends that the
administration of the Union Territory and the Department of Commerce
should actively engage under the scheme of TIES to develop certification
and testing infrastructure in the region.
LEH
65.8 The Committee learnt that the Union Territory of Ladakh has a limited
international recognition. Hence, it was suggested that the administration in Leh
should work in coordination with the Embassies located in various countries of
the world in order to create synergies and to gain international exposure. This
would certainly boost our exports from Leh and would ensure tourism
opportunities in Ladakh.
65.9 The Committee is of the opinion that the export potential
commodities possessed by Ladakh includes vibrant range of high valued
unique products such as Ladakhi pashmina, walnut, dry fruits, etc. which
has a lucrative market in the world over. Hence, the export opportunities
for Ladakh would be significantly enhanced if it gains international
recognition and access in the global markets of the world. The Committee,
therefore, recommends that the administration of Ladakh and Department
of Commerce should make all out efforts to identify prospects of trade
synergies with the major global trade destinations and establish trade
linkages by conducting promotional events, fairs, etc. It also recommends
that the Trade Commissioners deployed in Embassies as well as the Indian
diaspora in major trading countries should be roped in for such
promotional efforts.
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65.10 The Committee is of the view that strategizing the Union Territory of
Ladakh as a crucial region for export promotion is the need of the hour.
Optimal harnessing of the export potential of Ladakh requires several
initiatives such as promoting production of export oriented commodities,
encouraging value-added processing, quality and organic certified
production, ensuring inter and intra state linkages and connectivity of
Ladakh with other ports/ airports in the country, identification and
development of trade junctions in the region, establishing dry ports, etc. It,
therefore, recommends that a specific export policy should be devised for
the Union Territory of Ladakh in order to make it an attractive destination
in global markets.
65.11 While interacting with the officials of Customs Department at Leh, the
Committee was informed that presently the Leh airport is not designated as
‘Customs Station’ as per the provision of Section 7 (1) (a) of the Customs Act,
1962. As a result, the exporters have to trade their goods from other custom
stations or ports of the country leading to increase in dwell time and high cost of
operations. It was further apprised that under Section 7 (1) (a) of the Act, the
Central Board of Indirect Taxes and Customs (CBIC) may appoint ports and
airports as custom ports or custom airports for the unloading of imported goods
and the loading of export goods or any class of such goods. It was, therefore,
proposed that the Leh Airport should be notified as a 'Customs Airport' under
Section 7 (1) (a) of the Customs Act, 1962 and necessary action should be taken
in this regard.
65.12 The Committee is of the view that efficacy of any trade and export
policy devised for the Union Territory of Ladakh would essentially depends
upon the robustness of the export infrastructure since the trans-himalayan
region of Ladakh occupies one of the most difficult terrain in the country.
The Committee, therefore, recommends that necessary action may be
undertaken by the Government to notify the airport of Leh as a 'Custom
Airport' under Section 7 (1) (a) of the Customs Act, 1962 which would play
a crucial role in boosting exports from Ladakh by ensuring hassle free and
rapid transit of cargo goods via airlines.
65.13 As per the provision of Section 7 (1) (e) of the Customs Act, 1962, CBIC
may appoint the post offices which alone shall be foreign post offices for the
clearance of imported goods or export goods or any class of such goods. The
Committee was informed that a sub-foreign post office (sub-FPO) in Leh for
exporting parcels has already been notified by CBIC but it is not yet operational
due to non-availability of space. The Customs department has, therefore,
requested the Postal Department to provide sufficient space inside the main Post
office in Leh. However, the space allotted was too small to conduct smooth
operation of exports. Hence, the matter is being taken up with Postal
Department to allocate a sufficient space for the functioning of sub-FPO.
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65.14 The Committee expresses its concern on the delay in allotting
adequate space for the functioning of sub-Foreign Post Office (sub-FPO)
which has already been notified by CBIC. It recommends that the Postal
Department should step up its efforts to allot sufficient space to the
Customs Department for the sub-FPO to begin its export operations at the
earliest.
65.15 While interacting with the export associations and exporters, the
Committee was informed that many of them lacked information and knowledge
about the export schemes. Further, the absence of a testing and certification lab
in the region was a major impediment to the exporters.
65.16 The Committee takes cognizance of the remote location of the region
and the lack of exposure to the exporters and recommends that awareness
programmes should be conducted for the young entrepreneurs located in
the region. Further, NABL accredited testing and certification labs should
be set up in the region to facilitate and boost exports from Ladakh.
65.17 The Committee notes that the erstwhile state of Jammu & Kashmir
enjoyed a special status as per Article 370 of the Indian Constitution and also
Special Category Status. With the revoking of Article 370 and 35A, and the
bifurcation of the State into Union Territories of Jammu & Kashmir and
Ladakh, the Special Category Status does not apply anymore. However, the
Committee observes that in the Union Budget for FY 2021-22 an allocation to
the tune of Rs. 1.08 lakh crore for the UT of J&K and Rs. 5958 crore for the UT
of Ladakh has been made. This substantially increased allocation would ensure
adequate development of the two UTs and would offset the disadvantages
caused due to the losing of capital (in the case of Ladakh).
65.18 The Committee appreciates the higher budgetary allocation in the
FY 2021-22 to the two newly formed Union Territories of J&K and Ladakh
which would be beneficial in spurring infrastructure development for
economic growth and boosting exports from the respective regions. The
Committee feels that similar compensation should be given to other newly
carved out States like Andhra Pradesh, Chhattisgarh and Jharkhand who
lost their capital due to bifurcation. The Committee, therefore,
recommends that Special Category Status be granted to the States of
Andhra Pradesh, Chhattisgarh and Jharkhand for a period of not less than
10 years. This would ensure holistic development and economic growth of
these states in terms of trade and export infrastructure.
SUMMATION
66.1 Exports constitute an integral component of India’s overall development
strategy and is a vital pillar upon which the country relies on to accelerate its
growth. Thrust to exports is critical to achieve target of USD 5 trillion economy
and attain the status of global powerhouse by 2024-25. To achieve this target
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and augment exports, Government of India introduced a number of export
oriented policies and support measures. This resulted in continuous growth of
exports until it was disrupted by COVID-19 pandemic and contracted sharply
during 2019-20, requiring a renewed effort to boost exports. In order to recover
from this export slump, India needs to realign its export strategies and improve
the competitiveness of its products at global markets to meet the demands of the
post-COVID economic era.
66.2 Promotion of exports through strategic policy interventions,
extending appropriate export incentives schemes that are compliant with
international trade policies, supported by a robust and efficient logistics
infrastructure is imperative to achieve the desired level of exports growth
and attain competitiveness in the global market. The Committee
recommends that evaluation of export strategies as well as assessment of
efficacy of both policy and incentive support measures in consultation with
exporters and relevant stakeholders is carried out to keep pace with the
changing domestic and global economic scenario.
66.3 In view of the critical role played by infrastructure in the overall economy
and also in facilitating exports, the country has increased its efforts in building a
robust infrastructure by investing heavily in various sectors through the
National Infrastructure Pipeline projects. Several infrastructural projects aimed
at expansion of railway lines and roads; modernization and capacity expansion
of ports; and strengthening of infrastructure at airports, air cargo terminals, and
land ports have been undertaken by concerned Ministries/ Departments. Further,
keeping in view the impact of exports on our proposed USD 5 trillion economy,
Prime Minister announced on 15th August, 2021 from the ramparts of Red Fort,
the ambitious ‘PM Gati Shakti Master Plan’ for developing 'holistic
infrastructure' with a proposed outlay of Rs. 100 lakh crore. Envisaged to raise
global profile of the domestic manufacturers, the plan proposes to help them
compete with their counterparts worldwide thereby boosting manufacturing and
exports.
66.4 The timely completion of these projects and the implementation of
the ‘PM Gati Shakti Master Plan’ are critical in addressing the
infrastructural gaps in our logistical chain and to enable seamless and cost-
effective movement of our export consignments. The Committee, however,
observes that the progress of projects undertaken so far by the respective
Ministries/Departments is unsatisfactory resulting in delays and cost over-
runs. The Committee feels that monitoring of progress of projects and
timely resolution of issues with regard to implementation is necessary to
avoid delays in such critical infrastructure projects. Further, issue in
acquisition of land required for infrastructural projects is found to be a
recurring issue that hindered implementation of projects. The Committee,
therefore, recommends that urgent attention at the highest level is paid to
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such issues and a long term strategy is formulated in coordination with the
respective State Governments.
66.5 Project planning is carried out by the respective Departments/Ministries
separately and the Committee found that there exists gaps in coordination
between different Ministries/ Departments. As a result, there is lack of proper
integration between different infrastructure projects and this result in the
infrastructure projects undertaken by different Ministries/ Departments failing
to complement each other. Further, there is lack of inter-departmental/inter-
ministerial coordination and communication at the implementation stage
causing delay in projects due to pendency of clearance from different concerned
Departments/Ministries.
66.6 The Committee recommends institution of a formal mechanism for
coordination and communication among different Departments/Ministries
specifically tasked with planning and implementation of infrastructural
projects in order to address issues of pending clearances at the level of
different Departments/Ministries so as to address delays in projects and
also in bridging infrastructural gaps in a holistic manner.
66.7 The Committee noted that competitiveness of our exports is adversely
impacted by high logistics cost. Improving our logistics performance, bringing
efficiency in the overall logistics chain and creating world class infrastructure is
vital to bring down logistics cost and improve our export competitiveness
thereby boosting our exports. The current logistical landscape in the country is
highly fragmented and complex with multiple Department/Ministries and other
participating agencies. Further, the level of integration among different modes
of transport is currently minimal resulting in delays in movement of goods due
to intermodal shifting. To address these issues and to facilitate integrated
development of logistics sector, the Department of Commerce has introduced
the draft Logistics policy.
66.8 The Committee is of the opinion that finalization of the Logistics
Policy and its timely implementation, and the completion of the Multi-
Modal Logistics Hubs/ Parks/ Terminals projects by the respective
Departments/ Ministries is, therefore, essential to address the fragmented
and complex logistics sector and bring down our logistics cost. The
Committee recommends that concerned Ministries/ Departments should
expedite finalization and implementation of the policy and projects without
delay.
66.9 The cumbersome regulatory procedures and documentary requirements to
be complied with at points of exports such as, sea ports, airports/air cargo
terminals and land ports caused delays in clearance of export consignments
resulting in increased dwell time and cost of transaction as well as congestions
at terminals. The concerned Ministries/Departments have undertaken the task of
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easing the compliance process by leveraging the latest technology. The
Department of Revenue, through Customs Authority, has also initiated the
process of digitization of processes related to Customs via its ICEGATE
system. The initiatives taken by the concerned Departments/Ministries have
resulted in some improvements in time taken for completing documentary
processes and acquiring the required regulatory clearances in a timely manner.
66.10 The Committee, however, opines that the performance of India with
regard to documentary and regulatory processes is not satisfactory when
compared with other competing countries. Further, it is observed that
there are instances of insistence on submission of physical documents
despite introduction of digital process in export clearance process. The
Committee recommends that the number of documentary and regulatory
requirements is minimized and all such processes are fully digitized at
points of exports to reduce the compliance time. The Committee further
recommends that the IT infrastructure of the Participating Government
Agencies (PGAs) should be reinforced and updated regularly to avoid
glitches in the system and meet the requirements of increased flow of
exports.
66.11 The Committee feels that the major cause of concern is that we have
been working in silos. Exports is largely dependent on the availability of a
robust manufacturing sector, infrastructure set up, availability of credit &
financing, incentives, skilled manpower, technology, etc. Therefore, the
policies revolving around all these sectors being handled by different
Departments/ Ministries of Government of India need to be in
synchronization. The Committee hopes that the Department of Commerce
plays its pivotal role in augmenting the infrastructural facilities to boost
exports in co-ordination with various Departments/ Ministries of
Government of India.
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RECOMMENDATIONS/OBSERVATIONS - AT A GLANCE
OVERVIEW OF EXPORTS
1. The Committee is concerned that our exports have contracted since
2019-20, registering a negative growth rate of (-) 15.73 per cent in 2020.
The Committee also observes that though the share of India has shown
marginal increase, it has commanded only a meagre share of 2.15 per cent
share in global exports. In view of the crucial role played by exports in the
overall economic growth of a country, the Committee opines that India
needs to step up its effort in export promotion, expand its export baskets
and penetrate new export markets to recover from its current slump and
increase its share in global exports. The Committee also feels that India
needs to revamp its overall domestic manufacturing conditions and
logistics chain to enable our products to be competitive in the global
markets. The Committee, therefore, recommends the Department of
Commerce to take appropriate measures, relook its export strategies and
policies to achieve positive growth rate of exports and higher share in
global exports markets. (Para 2.4)
LOGISTIC SECTOR AND NATIONAL LOGISTICS POLICY
2. The Committee notes that the logistics cost in India is higher in
comparison with developed countries and reducing it is crucial for bringing
down overall cost in exports and achieving a competitive edge in the export
markets. It also takes note that the Department has formulated a National
Logistic Policy to address logistical issues in a holistic manner. However,
the Committee is deeply discontented to learn that the policy has not been
finalized despite the Committee’s repeated recommendation in its 158th
and
163rd
Reports to finalize the policy. The Committee, therefore, reiterates its
recommendation to finalize the policy and an action taken note in this
regard may be furnished to the Committee. (Para 3.5)
STATUS OF EXPORT INFRASTRUCTURE OF COMMODITY
BOARDS AND AGRICULTURAL AND PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY (APEDA)
3. The Committee observes that the total budgetary support provided
to commodity Boards and Agricultural and Processed Food Products
Export Development Authority (APEDA) for infrastructure development
since 2017-18 is only Rs. 582.96 crore. The budgetary support provided to
Tea Board and Coffee Board is particularly found to be abysmally low. It is
the firm opinion of the Committee that availability of robust infrastructure
for the commodity Boards and APEDA is crucial for augmenting our
exports in view of the fact that these products constitute a major portion of
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our export basket. The Committee, therefore, recommends that budgetary
allocation to the Boards and APEDA should be enhanced to enable them to
develop a robust and vibrant infrastructure for meeting the demands of
our exports. The Committee further recommends APEDA and commodity
Boards to take concerted steps to generate revenue through marketing and
selling of products, holding events, etc.
(Para 4.4)
INSPECTION, TESTING AND CERTIFICATION
4. The Committee acknowledges the steps taken by the Department for
augmenting testing, inspecting and certification infrastructure. The
Committee recommends the Department to continue its effort in this
direction and also ensure the timely completion of establishment of
proposed laboratories at Ahmedabad and Faridabad. The Committee also
recommends the Department to take proactive measures to promptly
identify any commodity/regional specific requirement of inspection and
testing services and bridge the infrastructural gaps accordingly. (Para 5.4)
PACKAGING TECHNOLOGY
5. The Committee learnt that efficient packaging helps in optimizing
warehouse space and improves the load factor of vehicles without
compromising the safety and integrity of cargoes. The Committee
recommends the Department through the Indian Institute of Packaging
(IIP) and in consultation with stakeholder to formulate standardized
packing guidelines for different categories of cargoes to be followed by
logistics operators. The Committee further recommends that best practices
in packaging around the world that are suitable for our logistics chain may
be studied and adopted. (Para 6.3)
PRODUCT AND REGIONAL SPECIFIC EXPORT INFRASTRUCTURE
FRUIT PRODUCTS OF JAMMU & KASHMIR
6. The Committee recommends the Department to undertake a study
on the quantum and types of infrastructural requirements to facilitate the
export of fruit products from the Union Territory of Jammu & Kashmir.
The Committee further recommends the Department to provide the
required budgetary support to bridge the infrastructural gap and consult
with the concerned stakeholders and administration of the Union Territory
for augmenting the export infrastructure. (Para 7.3)
AGRO PRODUCTS FROM NORTH EASTERN REGION
7. The Committee recommends the Department to coordinate with the
concerned Ministries/ Departments to identify strategic locations in the
region and set up the required warehousing and cold chain infrastructure,
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integrated testing laboratories equipped with modern irradiation facility
and compliant to Food and Drug Administration (FDA) and EU norms,
and also provide necessary export inspection and certification services to
boost exports of agricultural and horticultural products from the region.
(Para 7.6)
8. The Committee recommends that packing house with pulping units
approved by Agricultural and Processed Food Products Export
Development Authority (APEDA) may be set up specifically for the
production and packing of better grade products to cater to domestic and
global premium markets. (Para 7.7)
9. The Committee recommends the Department to leverage on the
indigenous capacity of organic farming in the region and provide the
inspection and testing services required for adhering to international
standards and certifications to facilitate the export of organic products to
premium markets of USA and EU. (Para 7.8)
CHILLI EXPORT FROM GUNTUR, ANDHRA PRADESH
10. The Committee recommends the Department of Commerce to
coordinate with Ministry of Food Processing Industries to provide
adequate number of cold chain warehouses for exports of chillies in Guntur
District of Andhra Pradesh. (Para 7.10)
TEXTILE EXPORT FROM SOLAPUR, MAHARASHTRA
11. The Committee recommends the Department for Promotion of
Industry and Internal Trade via the National Design Institute (NID) to lend
necessary assistance to textile industries for modernisation of its design
process. The Committee also recommends the Department of Commerce to
provide assistance under the Trade Infrastructure for Export Scheme to
install digital printing units for the textile industrial clusters and
coordinate with the State Government of Maharashtra in this regard.
(Para 7.12) ELECTRONICS SECTOR IN BANGALORE
12. The Committee notes the critical requirements of robust testing and
certification infrastructure to cater to the expanding manufacturing
capacity of the electronics sector. The Committee, therefore, recommends
the Department of Commerce to coordinate with the Ministry of
Electronics and Information Technology to identify the infrastructural
gaps in the electronics sector and take measures to augment the same.
(Para 7.15)
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EXPORT INCENTIVE SCHEMES
13. The Committee recommends that the value addition criteria may be
relaxed and instead of fixing a 15 per cent weightage, a positive value
addition in itself may be accepted. The Committee further recommends
that procurement against advance license should be allowed from any
manufacturer in India without payment of IGST to incentivise substitution
of imported goods with that of locally produced goods and motivate local
procurement. (Para 8.4)
14. The Committee also recommends that the Norms Committee should
finalize the Standard Input Output Norms (SION) at the earliest and
accept the Norms of the exporters until it is able to do so. (Para 8.5)
EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
15. The Committee recommends that export obligation period should be
started from the date of commissioning of the machinery and time period
for submission of Installation Certificate for Export Promotion Capital
Goods (EPCG) Authorization holder for capital goods should be relaxed
further. (Para 8.9)
16. The Committee also recommends the Department to consider
providing relaxation on requirement of annual average and it may be
reduced to 50 per cent based on preceding 3 years average export
performance. The Committee further recommends that the requirement of
block-wise fulfillment of export obligation should be relaxed and instead 6
years time in total should be provided without any restriction for
fulfillment of the export obligation. (Para 8.10)
17. The Committee recommends that the provision of allowing fulfilling
upto 50 per cent of export obligation by export of other goods
manufactured by the same company/firm may be reintroduced. It further
recommends that submission of a self-certified statement of export and
imports along with all original export documents such as Electronic Bank
Realization Certificate (eBRC), invoices and copies of imports bill of
entries to the Registration Authority (RA) office should be accepted for
redemption purpose post completion of export obligation. (Para 8.11)
REMISSION OF DUTIES AND TAXES ON EXPORT PRODUCTS (RoDTEP)
SCHEME
18. The Committee is discontented that notification of rates under the
scheme has been delayed by more than seven months and benefits under
the scheme have not been passed on to exporters till date. The Committee,
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therefore, recommends the Department of Commerce to expedite
implementation of the scheme to enable exporters to avail benefits under
the scheme. The Committee also opines that the budget allocation of Rs.
12,500 crore for the scheme would be inadequate to meet its objectives. The
Committee, therefore, recommends the Department of Commerce to
engage with the Ministry of Finance to provide additional allocation for the
scheme. (Para 8.13)
INTEREST EQUALIZATION SCHEME (IES)
19. The Committee is discontented to note that a decision on the
continuation of the scheme has not been taken till date even though current
period of operation of the scheme has already ended. The Committee
strongly opines that such uncertainty in business environment is not
conducive for our overall export ecosystem and causes hardship to
exporters as they face uncertainty on whether or not to factor the benefit of
the scheme in their costing. The Committee recommends the Department,
in future, to notify its decision regarding the extension or discontinuation
well in advance. The Committee further recommends the Department to
consider extending the scheme for at least five years or till the time our
interest rates are at par with rates of the competing countries. (Para 8.15)
TRADE INFRASTRUCTURE FOR EXPORT SCHEME
20. The Committee observes that two projects, namely, Establishment of
Coastal Cashew Research & Development Foundation, Kumta, Karnataka
and Upgradation of infrastructure at Land Customs Station (LCS)
Muhurighat, South Tripura has been delayed due to various issues. The
Committee, therefore, recommends the Department to coordinate with the
respective stakeholder to resolves these issues at the earliest and ensure
timely completion of these projects. The Committee further recommends
the Department to ensure the completion of the remaining projects within
the scheduled time frame. A status note on the 30 projects which are
currently implemented may be furnished to the Committee in action taken
replies. Further, the outcome of the third party evaluation of the Scheme
may be shared with the Committee. (Para 8.18)
21. The Committee notes that the scheme has wide coverage, providing
assistance for setting up and up-gradation of infrastructure projects with
overwhelming export linkages like the Border Haats, Land customs
stations, quality testing and certification labs for exports, trade promotion
centres, etc. Further, it is the only scheme that is specifically meant for
trade infrastructure. In view of this, the Committee opines that the budget
allocations under the scheme is grossly inadequate to fulfil the objectives of
the scheme and support trade infrastructures in 28 States and 8 Union
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Territories. The Committee, therefore, recommends Department to
enhance the budgetary allocation under the scheme. (Para 8.20)
MARKET ACCESS INITIATIVE (MAI) SCHEME
22. The Committee recommends the Department to consider appointing
product-market specific experts to be stationed at our Missions abroad to
assist and guide exporters before entering new markets and introduce new
products in such markets. The Committee further recommends that the
restriction of three participations in a particular fair should be applied
only for individual exporter/companies and relaxation should be provided
to Export Promotion Councils (EPCs) in this regard. (Para 8.23)
TRANSPORT AND MARKETING ASSISTANCE (TMA) SCHEME
23. The Committee observes that assistance under the scheme is
provided based on the freight paid for full Twenty feet Equivalent Unit
(TEU) containers for export of products by sea. The Committee opines that
this provision is unlucrative to exporters as they are unable to claim the
benefit under the scheme when both eligible and ineligible products are
shipped together. The Committee, therefore, recommends the Department
to take a relook at the scheme and provide relaxation and extend benefits
based on the volume/weight of the eligible product that is shipped in the
container. (Para 8.26)
EXPORT ORIENTED UNITs (EOUs)
24. The Committee finds the replies furnished by the Department with
regard to the reasons for decline in export from Export Oriented Units
(EOUs) to be unsatisfactory as exports from EOUs show an increase in
2019-20 and 2020-21 in spite of the number of functional EOUs declining.
The Committee is discontented to note that the Department furnished
replies to the Committee based on speculation and not supported by
accurate data. The Committee, therefore, recommends the Department to
observe due diligence in furnishing accurate replies to the Committee. The
Committee further recommends the Department to conduct a detailed
study on reasons for decline in performance of EOUs during 2017-18 and
2018-19 and furnish revised reply to the Committee. (Para 9.5)
25. In view of the major role played by EOUs in boosting our exports,
generating employment, attracting foreign investment and enabling
transfer of latest technology to domestic industries, the Committee
recommends the Department to revamp its efforts on promoting EOUs and
provide necessary support/incentives, including tax incentives, to enable the
sustained increase of exports from these units. (Para 9.6)
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SPECIAL ECONOMIC ZONES (SEZs)
26. The Committee notes that Special Economic Zones (SEZs) play a
significant role in our exports contributing 20 per cent of the total exports
of the country. The Committee, therefore, recommends the Department to
operationalize all the 426 SEZs at the earliest and necessary assistance
given by the Department and other relevant Ministries/ Department for
acquiring all clearances and approvals for the same. The Committee,
further, recommends the Department to provide necessary infrastructures
within the SEZs for enabling a plug and play facility and also ensure that
adequate and quality power supply is provided to the industries within the
SEZs. (Para 10.4)
FREE TRADE AGREEMENTS (FTAs)
27. The Committee notes that our exporters are at a disadvantage in the
USA and European markets while competing with other exporting
countries due to absence of Free Trade Agreements (FTAs) with USA and
EU countries. The Committee also notes that there are issues that need to
be addressed in negotiating free trade agreements with USA and EU in
view of the concerns expressed by some domestic sectors. The Committee
opines that while it is crucial to protect the domestic sector, it is equally
important to address the disadvantages faced by exporters in global
markets. The Committee, therefore, recommends the Department to iron
out the issues that hindered the signing of FTAs with our leading trade
partners and enter into trade agreements that is beneficial for our country
while balancing the interest of the domestic market with that of our
exporters. (Para 11.3)
INDUSTRIAL CORRIDORS
28. The Committee feels that the implementation and operation of the
Industrial Corridors projects is sluggish and not progressing at a desired
pace. The Committee has made repeated recommendations to the
Department to accelerate the implementation of the projects in its 153rd
,
158th
and 160th
Reports. The Committee reiterates its earlier
recommendations and urge the Department to take concerted effort to
speed up the implementation of the Industrial Corridor projects. The
Committee also notes with concern that delay in the project causes cost
overrun. Therefore, the Committee recommends that efforts should be
made to complete the projects in time bound manner. (Para 12.5)
ONE DISTRICT ONE PRODUCT (ODOP)
29. The Committee recommends the Department for Promotion of
Industry and Internal Trade to coordinate with the Department of
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Commerce and take proactive measures to bridge the specific
infrastructural requirements to facilitate large scale export of the identified
products. The Committee further recommends the Department to
undertake steps to identify products in the remaining districts. (Para 13.3)
INDIA INTERNATIONAL CONVENTION AND EXHIBITION CENTRE
LIMITED (IICCL)
30. The Committee recommends the Department to ensure the
completion of the convention centre within the stipulated time period. The
Committee further recommends the Department to study the feasibility
and benefits of constructing additional convention and exhibition centre in
the southern region of the country for promotion of trade in the region.
(Para 14.2)
31. The Committee notes the initiatives taken by the ITPO in assisting
the States to set up Exhibition centres. However, many States are left
behind in utilising the scheme. With the emphasis on ODOP, and Make in
India initiative, there is urgent need to involve all the States in showcasing
their products to reach out to foreign buyers. India has a unique
opportunity to capture the emerging trends of globalisation and realise
the export potential of the states. The Committee, therefore,
recommends that concerted efforts should be made with the State
Governments to encourage them to set up Exhibition centres. (Para 14.4)
RAIL SECTOR
32. The Committee notes with concern that the share of rail vis-à-vis
road is only 35 per cent whereas the trend is reversed in developed
countries. The advantages accorded by rail, i.e., wider coverage, reliable,
environment friendly and cheaper mode of transport have not been fully
capitalized in India. The Committee, therefore, recommends the Ministry
of Railways to undertake a detailed study on the reason for low share of
rail and take concerted effort to increase the share of rail in freight traffic.
The Committee observes that Railway being the pillar of infrastructure
sector is not getting its due share in terms of investment. The Committee
recommends that more funds should be provided to the sector for its
growth. (Para 15.5)
RAIL FREIGHT CLASSIFICATION AND FREIGHT RATES
33. The Committee finds it disheartening to note that the Ministry of
Railways is unable to provide competitive freight rate for movement of
export consignment. The Committee feels that this will adversely affect the
competitiveness of our exports in the global markets as freight cost plays a
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crucial role in determining the final price of the product. The Committee,
therefore, recommends the Ministry of Railways to take necessary
measures to ensure that a competitive freight rate is provided for
movement of export cargo to destination ports. (Para 16.4)
34. To enable the Rail sector to compete with Road, the Committee
recommends the Ministry of Railways to extend the free time period in case
the terminal is unable to release / receive a container. The Committee
further recommends that the different charges levied at terminals and
container depots be reduced to a level comparable to other modes of
transport. (Para 16.6)
35. The Committee, therefore, recommends that a distance based
concession in the rail freight should be provided to the exporters located
away from the sea port to ensure that they are able to deliver their export
at a competitive rate. (Para 16.7)
CHARGES ON MOVEMENT OF EMPTY CONTAINERS FROM PORTS TO
INLAND CONTAINER DEPOTS (ICDs)
36. The Committee is deeply concerned by the exorbitant rates charged
by the intermediary, i.e., the shipping lines on movement of empty
containers from port to Inland Container Depots (ICDs). The Committee
observes that the rate charged by the shipping lines negated the 50 per cent
concession provided by Railways for movement of empty containers and
might have impacted the profitability and overall competitiveness of our
exports. The Committee, therefore, recommends the Ministry of Railways
to consult with relevant stakeholders and address the issue on an urgent
basis. The Committee further recommends that the requirement of an
intermediary in this case may be abolished and appropriate strategy may
be worked out to enable importers/exporter to deal directly with Railways,
i.e., CONCOR for movement of empty container from ports to ICDs.
(Para 16.9)
FREIGHT INCENTIVE SCHEMES
37. The Committee takes cognizance of the efforts taken by the Ministry
for easing rail freight charges and opines that the incentives provided are
in the right direction for expanding the share of rail in freight traffic. The
Committee, however, observes that most of the incentives provided has
been implemented recently and seem to be a reactive measure to the
hardship caused by the COVID-19 pandemic. The Committee further
observes that there has been no mention of the time period for operation of
these incentives which can disincentivize potential investors in the sector as
they look at the long-term opportunity in the sector. The Committee is of
the view that a more proactive, rather than reactive approach, along with
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long term strategy is required to attract freight traffic in the rail sector.
The Committee also opines that transparency and clarity in the incentive
schemes are required to attract investment. The Committee, therefore,
recommends that time period for operation of these incentives may be
clearly specified along with the guidelines for availing the incentives so that
exporters as well as potential investors can plan their investment in the
sector accordingly. This will incentivize exporter to plan their mode of
transport accordingly and enable them to shift to rail in the long run.
(Para 16.11)
EXPANSION OF FREIGHT BASKET
38. The Committee appreciates the measures taken by the Ministry for
expanding the freight basket of rail freight. A closer analysis of the
measures taken by the Ministry, however, reveals that most of them are
time-bound and short-term measures without any indication/assurance of
extending them in the long run. The Committee opines that these time-
bound relaxations/measures, while they may be beneficial in the short-run,
will not attract exporters/investors to take long term commitments and
invest their resources in the long run. The Committee, therefore,
recommends the Ministry to work together with relevant stakeholders and
institute a proactive and long-term strategy to gain larger share under the
new container traffic. (Para 16.13)
CROSS-SUBSIDIZATION OF PASSENGER AND FREIGHT TRAINS
39. The Committee appreciates the commitment of the Indian Railways
for providing affordable mode of transport to the majority of the
population. It also takes cognizance of the measures taken by the Ministry
for reducing the freight rate and improving traffic growth without
compromising on providing affordable travel for passenger traffic. The
Committee, however, finds the rapid increase in freight rate to be
alarming. It observes that the rail freight rate witnessed a cumulative
increase of around 51.95 per cent since 2011-12 as a result of freight
rationalization. The Committee opines that reduction in freight rate and
providing freight rate comparable to other competing countries is crucial
for maintaining export competitiveness in the global market. The
Committee, therefore, recommends the Ministry to implement the outlined
policies/concessions to address the issues of continuous increase in freight
rate. The Committee further recommends the Ministry to look for other
avenues for raising revenue such as monetization of railway terminals and
stations, railway land parcels, multi-functional complexes and stadiums,
etc., to ease out the brunt of cross-subsidization on freight rate. (Para 16.18)
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EXPORT TRAFFIC HANDLED BY INDIAN RAILWAYS AND LINE
UTILIZATION
40. The Committee notes that 96 per cent of the freight traffic of the
Indian Railways is being handled by the High Density Networks (HDNs)
and Highly Utilized Networks (HUNs) with a total length of 34, 642 km
comprising of 51 per cent of the total route of Indian Railway. The
Committee, therefore, observes that there is an imbalance in capacity
utilization of the railway network and the capacity of 7 HDNs and 11 HUNs
must have been overutilized. NITI Aayog in its report titled, ‘Fast-
Tracking Freight in India’ has highlighted that 80 per cent capacity
utilization is considered to be ideal for seamless movement of freight
traffic. The Committee opines that the over-utilization of capacity in these
18 networks will compromise safety and efficiency in freight movement.
The Committee, therefore, recommends the Ministry to fast-track the
construction of railway lines identified as critical and super critical to ease
the load on these 18 networks. The Committee further recommends the
Ministry to consult with relevant stakeholders/Ministries/Departments to
formulate strategy for a better spatial distribution of freight traffic and
divert freight traffic from the 18 over-utilized networks to other railway
networks so as to address the imbalance in capacity utilization. (Para 17.3)
TRANSIT TIME AND PUNCTUALITY
41. The Committee observes that the average speed of freight trains has
increased to 45 km per hour in 2020-21 from 23.6 km per hour in 2019-20.
The Committee takes cognizance of this increase in freight speed and
appreciate the effort undertaken by Ministry to achieve this feat. The
Committee, however, is apprehensive that the gain achieved in freight
speed during 2020-21 might have been due to the non-operation of
passenger trains due to COVID-19 restrictions thus easing traffic
movement for freight train. If this is the case, the Committee opines that
the average speed of freight trains will reduce after the lockdown is lifted
and passenger trains start running in full capacity as passenger and freight
trains share the same tracks, and passenger trains often receive higher
priority. The Committee is of the view that the above five points outlined
by the Ministry can provide the long term solution to sustain the increase
in speed of freight train and attain the target of 50 km per hour. The
Committee, therefore, recommends the Ministry to give utmost priority to
upgradation and modernization of railway infrastructure and ensure that
the projects undertaken and targets set are implemented and achieved in a
time bound manner. (Para 18.2)
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42. The Committee opines that punctuality of railways is critical in
timely delivery of export consignments and also timely clearance of cargoes
at gateway ports to avoid congestion. The Committee, therefore,
recommends that the Ministry formulate an applicable standard for
ensuring punctuality of Government run trains and levy a penalty for delay
beyond a reasonable time. (Para 18.4)
43. The Committee recommends the Ministry to adopt latest technology
and emulate best practices around the world to monitor railway assets so
that any malfunction in rail infrastructure can be detected in real time and
repair work carried out swiftly without causing undue delay in train
movement. Further, regulation of railway traffic can be done using latest
technology so as to ensure seamless management of railway traffic and
avoid congestions at choke points. To deal with the menace of law and
order and chain pulling, stringent law/rules should be instituted imposing
strict penalty on anyone or group causing disturbance on the movement of
railways and adequate security should be deployed along critical railway
networks to prevent unwanted law and order situation and ensure strict
enforcement. (Para 18.5)
LOADING AT TERMINALS AND INTER-TERMINAL SHIFTING
44. The Committee opines that shifting from manual handling processes
and mechanization and technological upgradation of equipment will reduce
the time taken at terminals and during inter-terminal shifting. The
Committee, therefore, recommends the Ministry to fast-track technology
upgradation and mechanization of equipment and facilities and terminals.
Support may be provided to terminal operators by providing appropriate
incentives for acquiring the required equipment and to undertake
technology upgradation. Further, regular and neoteric trainings should be
provided through structured training programmes to field staffs posted at
freight stations/terminals in order to equip them to provide efficient
processing of cargos. (Para 18.7)
INTEGRATION OF CENTRAL-STATE PORTALS
45. The Committee opines that the integration of State Government
modules with Railway’s Freight Operation Information System (FOIS) for
loading of iron-ore from Odisha and Jharkhand are in the right direction
for attaining better multi-modal operations. The Committee, therefore,
recommends the Ministry to take measures for wider coverage of such
integration and involve other States and cover wider number of
goods/products. (Para 18.9)
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TIME TAKEN BY RAIL VIS-À-VIS ROAD
46. The Committee is of the view that the longer time taken by train vis-
à-vis road needs to be addressed urgently to increase the share of rail
freight. The Committee, therefore, recommends the Ministry to conduct a
cross-country study on the issues identified above and address the same in
a structured manner. The Committee also recommends that the frequency
and availability of trains from ICDs to ports must be increased and a
proper time-table for running of trains should be worked out for each ICD
depending on the volume of cargo handled at each ICD. Further, to reduce
the transit time of railways, the Committee recommends the Ministry to
work out a feasible method to provide door to door services using railway
logistics in consultation with relevant stakeholders. (Para 18.11)
REGISTRATION OF DEMAND (e-RD) & ELECTRONIC
TRANSMISSION OF RAILWAY RECEIPT (eT-RR)
47. The Committee takes cognizance of the measures taken by the
Ministry for easing the process of cargo movement by providing online
platforms, namely, Registration of demand for wagons electronically (e-
RD) and Electronic Transmission of Railway Receipt (eT-RR). For
enhancing the functioning and seamless transaction of business in the
portals, the Committee recommends the following:
(i) The portal has been reported to be functional only between 6
A.M. to 10 P.M. This should be functional round the clock to
facilitate exporters to effectively utilize the portal;
(ii) Payment of Demurrage Charge and Wharfage Charge should
be available online as it causes lot of difficulty to outstation
customers;
(iii) Waiver applications for Demurrage Charge, Wharfage Charge
and other such charges should be made available online;
(iv) Customers should be made aware, through online system, 48
hours before placement of rake, to enable the customer to make
arrangements for rake loading in a timely manner and avoid
detention of rake;
(v) Refund of withdrawn indent should be made in a time bound
manner and in case of delay, interest may be provided; and
(vi) The restriction on the number of indent placement by
Northeast Frontier Railway and East Central Railway in online
system in their zones needs to be removed. (Para 19.2)
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DEDICATED FREIGHT CORRIDOR (DFC)
STATUS OF THE PROJECT
48. The Committee takes note that the Dedicated Freight Corridor was
announced way back in April, 2005. The Committee is discontented to note
16 years has passed since the announcement of the project and only 39.04
per cent of the targeted length has been completed till date. Further, only
23.10 per cent of the targeted length has been commissioned for traffic as
on date. The Committee is deeply distressed by the slow pace in
construction of such crucial project. The Committee is also concerned with
the rising cost of completion of Dedicated Freight Corridors as it is lagging
behind schedule and resulting in cost overrun. The complete
commissioning of the project is crucial for easing the congestion in railway
traffic and bringing down logistics cost, particularly rail freight. The
Committee, therefore, recommends the Ministry to fast-track the
construction of the project, undertake real-time monitoring of progress and
ensure that all sections of the project are completed and commissioned for
traffic by June, 2022 without any further delay. (Para 20.4)
SPECIAL DESIGN FEATURES
49. The Committee recommends the Ministry to address the issues of
acquisition of land in the state of Maharashtra and Uttar Pradesh and
delay in construction of Road-Over-Bridges (ROBs) by State Governments
by coordinating with the respective State Governments and ensure that the
progress of the project does not delay any further due to these issues.
(Para 20.9)
50. The Committee recommends that survey should be made of all the
RoB built under the Dedicated Freight Corridors and MPs/MLAs may be
consulted while proposing a RoB so that the local conditions may be put
forward at the initial stage and RoB worked out in consultation with
stakeholders. (Para 20.11)
KISAN RAIL
51. The Committee opines that leveraging the Kisan Rail scheme for
catering to our agricultural export traffic will provide a huge boost to our
exports. The Committee, therefore, recommends the Ministry to formulate
the required guidelines/rules for the use of Kisan Rail for agricultural
export through ports as per requirement. The Committee further
recommends the Ministry to create awareness among exporters regarding
the scheme so that more number of exporters and producers avail the
scheme. (Para 21.2)
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OTHER RAIL PROJECTS
52. The Committee takes note of the issues faced by the Ministry in
execution of the railway projects. The Committee recommends the
Ministry to address the same in coordination with the concerned
stakeholder and take proactive steps to resolve the issues in a timely
manner and ensure that execution of the project does not get delayed due
to such issues. (Para 22.4)
53. The Committee recommends the Ministry to promptly address the
issues in consultation with stakeholders with regard to Hassan Mangalore
tunnel Project, container trains from Coimbatore to Tuticorin, Coimbatore
to Kattupallai, Ennore, Chennai and Cochin, Mumbai Ahmedabad High-
Speed Rail and Railway line from Khandwa to Dhar via Khargone and
Barwani. The Committee further recommends the Ministry to furnish a
status note on these issues in its action taken reply. (Para 22.5)
REORGANISATION OF RAILWAY ZONES
54. The Committee is discontented to note that the Ministry is still in the
process of examination of Detailed Project Report on setting up of a new
South Coast Railway (SCoR) Zone with headquarter at Visakhapatnam.
The Committee, therefore, recommends the Ministry to fast-track the
process of setting up the SCoR Zone and a status note on the same may be
furnished in action taken replies. (Para 23.3)
55. The Committee fails to understand the logic behind the dismantling
of Waltair Division as the new South Coast Railway (SCoR), which is the
new zone within which the Waltair Division is proposed to be merged with,
is still at an examination of Detailed Project Report (DPR) stage with no
definite timeline for operationalization. The Committee, therefore,
recommends the Ministry of Railways to revisit the decision to dismantle
the Waltair Division and defer the process till the new zone is finalized and
operationalized. (Para 23.4)
RAILWAYS AND PORTS CONNECTIVITY
56. The Committee observes that the projects of East Coast Railways are
under various stages of development. The Committee recommends the
Ministry to ensure that these projects undertaken by East Coast Railways
are completed within the specified timeline. The Committee also observes
that Brundamal-Jharsuguda Flyover has been delayed due to land
acquisition problem. The Committee, therefore, recommends the Ministry
to coordinate with the concerned State Government to address the issue. A
status note in this regard may be furnished in the action taken replies.
(Para 24.2)
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CONGESTION AT PORTS
57. The Committee recommends the Ministry to identify the issues of
handling constraints at ports affecting the punctuality of railways and
work in coordination with Port Authorities and other relevant stakeholders
to address the issues effectively to improve unloading performance at port
terminals. (Para 24.4)
RAIL INFRASTRUCTURE IN NORTH EASTERN REGION
58. The Committee appreciates the measures taken by the Ministry for
augmenting rail infrastructure in the North Eastern region. The
Committee is hopeful that the expansion of the railway line will give a boost
to export from the region and provide much needed fillip for increased
industrialization in the region. The Committee is also hopeful that the
expansion of railway line will also boost our trade with neighbouring
countries, especially, Myanmar and further facilitate the realization of the
Act East Policy. The Committee recommends the Ministry to ensure that
ongoing projects are completed within a specified timeframe and that
adequate budgetary support is provided to this end. (Para 25.4)
59. The Committee is concerned about the upkeep and maintenance of
rail infrastructure in the region due to the geographical terrain and
climatic condition as the region is prone to flood and landslide. The
Committee, therefore, recommends that adequate budgetary allocation is
provided for maintenance of rail infrastructure in the region so that the full
potential of the railway line is realized. (Para 25.5)
60. The Committee also recommends that old tracks of Heritage trains in
North Eastern region may also be maintained and made functional along
with new routes/plans in North Eastern sector. (Para 25.6)
TRADE WITH BANGLADESH AND NEPAL
61. The Committee observes that trade with Bangladesh has been
carried out via four rail interchange points with a fifth interchange point to
be operational from 1st August, 2021. The Committee recommends the
Ministry of Railways to ensure that adequate infrastructural support are
provided to these crucial interchange points and any issues/inadequacies in
infrastructure are promptly addressed in coordination with concerned
stakeholders/Departments/Ministries. (Para 26.3)
62. The Committee, therefore, recommends the Ministry of Railways to
examine the issue in detail in consultation with concerned stakeholders and
address the same so as to maintain our foothold in the Bangladesh market.
(Para 26.4)
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63. The Committee also observes that only one rail interchange point is
available between India and Nepal. In view of the current trade volume
with Nepal and potential for expanding our export with the country, the
Committee opines that additional rail interchange points could be added
between India and Nepal. The Committee, therefore, recommends the
Ministry of Railways in consultation with concerned
Departments/Ministries to identify potential rail interchange point(s) and
undertake a detailed study to construct additional interchange points with
Nepal. (Para 26.5)
64. The Committee finds that the issue of cross-border transit through
Bangladesh needs to be addressed urgently as it observes that the transit
restriction proved to be costly for movement of goods across the country as
well as for cross-border trade with Bhutan and Nepal. The Committee,
therefore, recommends the Government to discuss the issue with our
neighbouring counterparts at the appropriate level and address it at the
earliest. (Para 26.7)
65. The Committee observes that several transport and trade challenges
such as inadequate transport infrastructure, limitations of infrastructure
on the Bangladesh side, protective tariffs and nontariff barriers, and a
broad trust deficit throughout the region exist while trading with
Bangladesh resulting in high cost of trade between Bangladesh and India.
The Committee, therefore, recommends the Department of Commerce to
identify the tariff and non-tariff barriers and work out trade agreements
which is beneficial to both parties and stakeholders involved to ensure
uninterrupted trade between the two countries. Further, the Committee
recommends the Department of Commerce to identify the infrastructure
deficit on both side of the border and work in coordination with
neighbouring countries to augment the same. The Committee also opines
that peace and a sense of trust in the region is critical for ensuring
uninterrupted cross border trade. The Committee, therefore, recommends
the Government to work together with Bangladesh at appropriate level to
discuss the issues that hindered peaceful and cordial relationship with our
neighbour. (Para 26.9)
CONSTRUCTION AND MAINTENANCE OF NATIONAL HIGHWAYS
66. The Committee observes that the budget allocated for maintenance
of National Highways (NHs) witnessed a reduction in 2021-22. The
Committee opines that with completion of the Bharatmala Pariyojana and
other road projects, the total length of NHs will increase further by 34,800
125
km in the next few years requiring enhance allocation for maintenance of
roads. The Committee, therefore, recommends the Ministry to ensure that
adequate budgetary allocation is provided for maintenance of NHs and that
the maintenance work are not impacted due to paucity of funds. The
Committee further recommends that the budgetary allocation for
maintenance should be increased correspondingly with the increasing
length of the NHs. (Para 28.3)
FREIGHT TRAFFIC AND FREIGHT RATES
67. The Committee is perturbed to note that the Ministry of Road
Transport does not have readily available data on the year-wise value and
volume of goods that is transported through road in India and other
countries and has to rely on publicly available data. It is the strong opinion
of the Committee that such data is critical in taking impactful policy
decisions regarding the construction of roads, maintenance of vehicle
movements, to address issues of traffic congestions along various road
networks and face global challenges of competitive level in the export
sector. The Committee, therefore, recommends the Ministry to collate and
maintain data on these aspects to facilitate data based policy decision
making. (Para 29.2)
68. The Committee is elated to observe that the road freight rate in India
is lower than that of USA and European Union (EU) countries. This will
have a positive impact on our exports and provide the much needed
leverage for maintaining the competitiveness of our exports in the global
market. The Committee recommends the Ministry to ensure that a
competitive freight rate is maintained and other charges levied by the
Ministry are also fixed in such a way that it does not cause undue burden
on exporters. (Para 29.5)
69. The Committee is deeply concerned that truckers’ union restrict the
free movement of cargo trucks in certain States and levy freight charges
higher than market rates. The Committee recommends the Ministry
investigate on the issues and consult with the respective State Governments
to address the cartelisation of truckers’ union. (Para 29.6)
70. The Committee also recommends that a transparent policy measure
may be ensured for uniform rate structure for inter State freight
movement and any infringement dealt with strictly under the relevant Act
to deter any transport union from flouting the rules. (Para 29.7)
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TRANSPORTATION EFFICIENCY
71. The Committee observes that the performance of India under the
average daily distance covered and percentage of empty running are not
satisfactory in comparison with other competing countries. The Committee
further observes that improving the performance of India on these
parameters has a knock on effect by reducing the petroleum import bill
and carbon emission apart from efficient asset utilisation, reducing logistics
cost and road congestions. The Committee opines that the adoptions of
technology-driven measures by the Ministry to address these issues are in
the right direction. The Committee, therefore, recommends the Ministry to
continue to leverage technology and big data analytics for attaining better
route planning and load matching, selecting the right type of vehicle and
improving schedule of truck movements. The Committee further
recommends the Ministry to adopt best practises around the world in this
aspect to improve the performance of India and bring it on par with other
competing countries. (Para 30.3)
72. The Committee is concerned by the prevalence of overloading of
truck as it compromises the safety of the truck, people and goods on board.
The Committee acknowledges the measures taken by the Ministry to
address this issue. The Committee recommends the Ministry to ensure that
these measures are strictly enforced and also undertake initiative to spread
awareness among truck operators about the danger and demerits of
overloading trucks. The Committee also opines that the adoption of larger
and heavy duty vehicles will provide a long term solution to this issue. The
Committee, therefore, recommends the Ministry to work out appropriate
strategy and incentives in consultation with stakeholders to increase uptake
of heavy duty vehicle in our cargo fleet. (Para 30.5)
REGULATORY MECHANISM FOR MOVEMENT OF CARGO BY
ROAD
73. The Committee takes note of the measures taken by the Ministry to
ease the compliance process in movement of vehicles and movement of
export consignment along the road. The Committee recommends the
Ministry to consult with stakeholders to identify the practical issues faced
by exporters and truck operators in availing the facilities provided by the
Ministry and take prompt corrective measures to address the same.
(Para 31.4)
74. The Committee also recommends the Ministry to undertake
proactive consultation with relevant Ministries / Departments / agencies to
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address issues related to failure or technical snag with FASTags leading to
long queues; tampering of tag reader by toll operators; availability of
FASTags; unauthorized vehicles in FASTag lanes, misuse of
VIP/emergency vehicle lane, etc. (Para 31.5)
BHARATMALA PARIYOJANA
STATUS OF THE PROJECT
75. The Committee opines that the completion of the road projects under
the Bharatmala Pariyojana is critical in addressing our overall logistics
issues and movement of EXIM traffic. The Committee finds it
disheartening to observe that only 17.13 per cent of the projects have been
completed and only 54.22 per cent of the projects approved even after
implementation of the projects for nearly 5 years and having to revise the
timeline for completion of the entire project by 2025-26. The Committee
strongly feels that the Ministry should reinvigorate its commitment to the
projects and expedite its implementation if it is to complete the projects
within the targeted time period. The Committee, therefore, recommends
the Ministry to undertake real time monitoring of these projects,
coordinate with the concerned Ministries/Department/agencies and State
Governments and promptly identify and address the issues that caused
delay in the projects. The Committee further recommends the Ministry to
ensure that these projects are completed in a time bound manner.
(Para 32.6)
76. The Committee is dissatisfied to note that 152 road projects under
the Ministry of Road Transport have been delayed and 26 projects suffered
a cost over-run. The Committee is astounded to observe that there exists a
project which has been delayed for more than 10 years and project which
has resulted in cost over-run as high as 93.8 per cent. The Committee
strongly opines that such projects has a huge impact on the exchequer of
the Ministry and has dented the financial viability of the project. The
Committee, therefore, recommends the Ministry to identify these 152
projects which have been delayed and address the reasons for their delay to
expedite the construction of these projects in a priority manner. A status
note and steps taken to speed up these 152 projects may be furnished by the
Ministry in its action taken replies. (Para 32.7)
PORT CONNECTIVITY ROAD PROJECTS
77. The Committee observes that most of the Port Connectivity Road
projects are at initial stage of implementation with 4 projects still at
bidding stage, and preparation of Detailed Project Report (DPR) yet to be
awarded for 7 projects. The remaining projects are under various phases of
implementation such as preparation of DPR. The Committee opines that
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the completion of these projects are critical for ensuring seamless
movement of EXIM traffic as majority of merchandise trade is undertaken
through ports. The Committee, therefore, recommends the Ministry to
expedite the completion of these projects and priority should be accorded
for the same. The Committee further recommends the Ministry to monitor
and review the implementation of these projects at the highest level.
(Para 33.4)
78. The Committee takes cognizance of the challenges faced by the
Ministry in implementation of the project. The Committee, however, feels
that the issues highlighted by the Ministry could be resolved with concerted
effort of the Ministry and with proper coordination with other concerned
stakeholders. The Committee, therefore, recommends the Ministry to take
necessary measures to address the challenges and ensure the completion of
these projects in a time bound manner. (Para 33.5)
DELHI-MUMBAI EXPRESSWAY
79. The Committee opines that the completion of the Delhi-Mumbai
expressway is critical to addressing our logistics constraints and ensuring
seamless movement of exports cargo especially from hinterland to
Jawaharlal Nehru Port. The Committee recommends the Ministry of Road
Transport and Highways to take concerted efforts to ensure completion of
the project within the stipulated time frame. The Committee further
recommends that the issues of land acquisition are swiftly resolved in
coordination with concerned State Governments to avoid further delaying
of the project. (Para 34.3)
MULTI MODAL LOGISTICS PARKS (MMLPs)
80. The Committee observes that, with the exception of Multi-Modal
Logistics Park (MMLP) Jogighopa, most of the projects are at initial stage
of implementation with pre-feasibility study still to be undertaken for some
of the projects. The Committee strongly opines that these MMLPs will play
a critical role in augmenting our logistics infrastructure and also facilitate
multi-modal integration addressing issues in inter-modal shifting between
various modes of transport. The Committee, therefore, recommends the
Ministry to assign highest priority to the implementation of these projects
and complete them in a time bound manner. (Para 35.3)
81. The Committee notes that acquisition of land required for the parks
has hindered the progress of the projects with only 4 locations out of 35
projects finalized till date. The Committee recommends the Ministry to
step up its effort in coordinating with the concerned State Governments
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and resolve the issues in land acquisition. The Committee further
recommends the Ministry of Road Transport and Highways and the
Ministry of Ports, Shipping and Waterways to resolve the pendency with
regard to MMLP Nagpur. It is also the strong opinion of the Committee
that such important projects should not be kept pending at the Ministry
level and therefore recommends the Ministry of Ports, Shipping and
Waterways to accord the necessary approval for signing of Memorandum
of Understanding to Jawaharlal Nehru Port Trust (JNPT). (Para 35.4)
ROAD INFRASTRUCTURE IN NORTH EASTERN REGION
82. The Committee opines that road transport plays a critical role in
facilitating movement of export traffic and providing last mile connectivity
due to the geographical terrain of the region which is largely dominated by
hilly or mountainous area. Further, the region is prone to landslide
hindering accessibility especially during monsoon season. The Committee,
therefore, recommends that roads constructed in these regions are
provided with appropriate structural support to ensure all weather
connectivity. The Committee further recommends the Ministry to
undertake proper maintenance of roads in the region and provide adequate
budgetary allocation for the same. (Para 36.3)
83. The Committee observes that the Ministry has undertaken various
road construction projects in the region. It further observes that the
Ministry has failed to fully utilise the budget allocated for the region during
the last 5 Financial Years with Rs. 3051 crore left unutilised during the
Financial Year 2020-21. The Committee opines that this gross
underutilization of allocation would impact the progress of the projects.
The Committee recommends the Ministry to ensure that the allocated
budgets are utilised in a timely manner. The Committee further
recommends the Ministry to closely monitor the progress of road
construction and ensure their timely completion. (Para 36.4)
AVIATION SECTOR
ROLE AND GROWTH OF AIR CARGO IN INDIA
84. The Committee observes that the domestic air cargo market had
witnessed an impressive and robust growth since 2015-16, registering a
higher pace than the global air cargo market. However, the growth rate has
shown a decline from 2018-19 and has registered a negative growth rate in
2019-20. The Committee expresses its concern on this sharp contraction
and recommends the Ministry of Civil Aviation to take remedial measures
to align the industry back on its growth path. (Para 37.7)
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85. The Committee observes that the volume of air cargo handled had
witnessed a sharp dip in 2020-21. The Committee is hopeful that the air
cargo will regain its previous volume with gradual recovery of the economy
and assisted by the increased share of Indian carriers in international
cargo. India’s image as a reliable supplier in international market is linked
to the performance levels of the infrastructure available at the air cargo
terminals. The Committee, therefore, recommends the Ministry to take
necessary steps to augment the air cargo infrastructure to further increase
the air cargo volume and the share of India in the global air cargo market.
(Para 37.8)
86. The Committee notes that the share of dedicated air freighter is only
15 per cent share in the air freight market in India compared to 50-55 per
cent globally. The Committee opines that steps towards consolidation of
domestic air cargo and carving out higher share in international air cargo
will facilitate the further development of dedicated air freighter. The
Committee, therefore, recommends the Ministry to undertake a structured
study to enable the dedicated air freighter fleet carve out the required
niche market of both the international and domestic air cargo and increase
their share in the air cargo market. (Para 37.9)
87. The Committee opines that India needs to adopt a well-equipped
infrastructure across the new airports which are going to be built in future
and also upgrade infrastructure at existing airports to be at par with
international level to capitalise on the expanding global and domestic air
freight markets. The Committee, therefore, recommends the Ministry to
ensure adequate planning is undertaken so that upcoming airports are
equipped with specialized infrastructure to handle time-sensitive,
perishables, high value cargoes and regional express facilities to suit the
need of the growing air cargo market and exports. (Para 37.10)
SKILLED MANPOWER IN AIR CARGO LOGISTICS
88. The Committee feels that short term training programs provided by
AAI Cargo Logistic and Allied Services Company Limited (AAICLAS) will
be inadequate to instill the skills required for handling time-sensitive,
valuable, dangerous and radioactive cargo. Further, with the increased
adoption of modern technology in logistics process, the requirement of
skilled and professional manpower will be paramount. The Committee,
therefore, recommends the Ministry undertake a study of the existing skill
gaps in the air cargo industry and prepare a training framework/
recruitment process in consultation with relevant stakeholders to attract/
provide competent workforce to the air cargo logistics process. (Para 38.6)
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89. The Committee also recommends that all existing staff should be
provided on the job training on the specialized skills required for handling
dangerous goods, special cargo equipment handling, security compliance,
etc., in a comprehensive manner. (Para 38.7)
90. The Committee notes about the creation of portal by Airports
Authority of India as ‘Aviation Jobs’. The Committee recommends that
there is need to create awareness about this portal to the aspirants of this
category of staff. (Para 38.8)
CLASSIFICATION OF AIR CARGO AND FREIGHT RATES
91. The Committee observes that no standard rate is available across
airports for processing and handling of cargo at air cargo terminal which it
feels will be counterproductive to the competitiveness of our exports and to
the air cargo logistics cost as a whole. The Committee, therefore,
recommends the Ministry to fix a standard benchmark for fixing
processing and handling charges which will be applicable across all
airports. The Committee further recommends the Ministry to ensure that
these charges are comparable to other airports around the world so that
our export competitiveness is not impacted due to high terminal charges.
(Para 39.3)
92. The Committee takes cognizance of the fact that the cost of air
freight is a commercial decision between the airlines and the customers,
and tariffs rates are determined at airline’s discretion. However, the
Committee opines that a regulatory body to keep check on unwarranted
increase in freight rate is required. The Committee, therefore, recommends
the Ministry to have a closer look on this issue and consult with relevant
stakeholder and conduct a detailed study on the benefit of giving the role of
regulatory oversight on air freight tariff to AERA. (Para 39.4)
DWELL TIME AND THROUGHPUT EFFICIENCY OF AIR CARGO
TERMINALS
93. The Committee recommends the Ministry to issue direction to
airlines to not accept cargo well ahead of departure time. It further
recommends the Ministry to determine and provide a specified time period
for acceptance of cargo and penalty may be imposed on airlines accepting
cargo prior to the specified time period. (Para 40.7)
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94. The Committee observes that conducting custom examination within
the cargo terminal led to reduction in available floor space by 30 per cent.
The Committee, therefore, recommends that adequate space should be
allocated to terminal operators and customs to enable efficient handling of
cargoes. The Committee further recommends that the unutilized land
parcels of Airports Authority of India (AAI) at airports can be effectively
used for expansion of cargo terminal space. (Para 40.8)
95. The Committee also observes that lack of flexibility in use of terminal
space hindered the efficient use of terminal space. The Committee,
therefore, recommends that the number of landside truck-loading facilities
at air cargo terminal should be increased and flexibility in use of truck
docks should be provided by facilitating interchangeability in use of export
and import truck dock. (Para 40.9)
96. The Committee recommends the Ministry to undertake an airport-
wise study on availability of dedicated parking bays for freighter aircrafts
and allocate space for the same based on the requirement and volume of
cargo handled at the airports and terminals. The Committee further
recommends that adequate space may be allocated for agents’ warehouse
near terminals for ensuring efficient integration and coordination in the
logistics process. (Para 40.10)
97. The Committee is startled to note that there is no fixed model in
terminal operations across airports and that it is left at the discretion of
individual airport operators. The Committee strongly opines that the lack
of a fixed model in terminal operations hindered the integration of air
cargo logistics chain. The Committee, therefore, recommends the Ministry
to consult with stakeholder and institute standard guidelines to be followed
across all airports for operation of air cargo terminals. (Para 40.11)
98. The Committee opines that adoption of modern, state of the art
technology will address the issues underlying the high dwell time and low
throughput efficiency in the long run and, therefore, recommends the
Ministry to work towards the adoption of the modern technology such as,
automated sorting system, collaborative robots/cobots and autonomous
guided vehicle. The Committee further recommends the Ministry to
undertake revision of the inventory and storage management to ensure that
the system of First In - First Out is implemented at warehouse. (Para 40.12)
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DOCUMENTARY & REGULATORY COMPLIANCE AND TIME
TAKEN
99. The Committee observes that the time taken for completing
documentation and regulatory requirement is much higher than other
countries which may be attributed to the involvement of twelve authorities
and twelve documents in clearing export consignments. The Committee,
therefore, recommends the Ministry to take measures to shorten and
simplify the documentation process. The Committee further recommends
the Ministry to reduce the number of documents by carrying out required
rationalization process. (Para 41.5)
100. The Committee also recommends that the Information Technology
infrastructure at airports may be adequately equipped and regularly
updated to handle the growing digital traffic and ensure smooth
functioning of Indian Customs EDI System (ICES) and Indian Customs
Electronic Gateway (ICEGATE). The Committee further recommends the
Ministry to ensure the integration of all processes and systems of
Participating Government Agencies (PGAs) and stakeholders under the
single window system to create synergy and uniformity in the documentary
and regulatory process. (Para 41.6)
101. The Committee notes that Electronic data interchange (EDI) systems
are expensive, making it difficult for small businesses to adopt. It also notes
that inability to adopt the EDI system has limited the business
opportunities of small enterprises as large enterprises chose to conduct
business with others which have adopted the system. The Committee,
therefore, recommends the Ministry to provide incentives/assistance to
small companies to acquire the required EDI system. (Para 41.7)
TRACKING, SAFETY AND SECURITY OF CARGO
102. The Committee recommends that tracking services provided by
airlines and airport operators are efficiently managed to reduce system
failure and technical glitches. The Committee further recommends the
Ministry to direct such service providers to carry out necessary
technological upgradation to their respective systems to provide
uninterrupted service. (Para 42.3)
103. The Committee is of the view that the air cargo system should keep
pace with the latest technology in order to achieve a competitive edge in the
global export market. The Committee, therefore, recommends the Ministry
to undertake a study on the feasibility of leveraging and adopting state-of-
the art technology in the air cargo logistics process such as, robotics to
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detect package defects at higher speed; Internet of Things to manage and
enhance supply chain productivity; cloud integration for real time
monitoring of cargo; autonomous tracking for better route and load
planning; Application Programming Interface (API) for better
harmonization and integration of data; Artificial Intelligence (AI);
predictive networks; block chain; drone fleets for enhancing warehouse
operations; and augmenting cyber security for providing protection to our
IT networks at airports. (Para 42.4)
REGIONAL AIR CONNECTIVITY
104. The Committee notes with concern that due to abrupt debarring of
non-scheduled flights to non-metros, exporters had to face problem in
transporting goods to nearby metro airport to fulfill its business
commitment. The Committee is of the view that the matter should have
been first discussed with the stakeholders and only after due consensus,
modifications in the policy should have been carried out. The Committee
recommends that in future the stakeholders may be consulted and
necessary modification may be made in the policy to make a balanced
arrangement. The Committee further recommends that a non-partisan
approach is adopted towards non-metro airports to ensure inclusive
development of the country. (Para 43.5)
TRAFFIC HANDLED AT PORTS
105. The Committee is perturbed to observe that while the traffic
handling capacity at Major ports has increased by 302.08 Million Tonnes
Per Annum (MTPA) during the last 5 years, the capacity utilization has
witnessed a constant decline during the same period. Further, the Major
ports have failed to utilize even 50 per cent of its capacity. The Committee
recommends the Ministry of Ports, Shipping and Waterways to take
concerted efforts to enhance the port processes and ensure the optimal
utilization of the capacity at ports. (Para 45.3)
CONTAINER TRAFFIC
106. The Committee opines that the robust growth of container traffic has
presented an opportunity for promotion of domestic container
manufacturing. It further opines that promotion of domestic container
manufacturing will address container shortage and reduce dependence on
other countries in the long run. The Committee, therefore, recommends the
Ministry of Ports, Shipping and Waterways to provide the required
incentives and R&D support to industries to enable domestic
manufacturing of containers. (Para 46.4)
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DOMESTIC SHIPPING LINE
107. The Committee notes that only 10 per cent of Indian cargo is moved
via Indian flagged vessels which shows that 90 per cent of the charges on
maritime freight goes to foreign entity resulting in revenue loss for India.
The Committee also notes that only 467 domestic vessels with a gross
tonnage of 11.42 Million Tonnes are available for movement of EXIM
trade. With the clarion call of Atmanirbhar Bharat, the Committee
strongly opines that an Indian Shipping line of global repute is the need of
the hour. The Committee, therefore, recommends the Ministry of Ports,
Shipping and Waterways to consider the promotion of Indian Shipping line
and consult with the relevant Ministries/Department and stakeholders to
work out the required fiscal or other support to achieve the same.
(Para 47.3)
FIXATION OF MARINE TARIFF RATES
108. The Committee recommends the Government to constitute the
Adjudicatory Board at the earliest. The Committee further recommends
that a time period should be stipulated for disposal of disputes and
grievances/complaints raised by port users. (Para 48.2)
109. The Committee recommends the Ministry of Ports, Shipping and
Waterways to consult with relevant stakeholders before finalizing the tariff
policy/ guidelines. The Committee further recommends the Ministry to
monitor the scales of rates fixed by Major Port Authorities as well as tariff
rates fixed by Partnership (PPP) Concessionaires and ensure that they are
in consonance with the Competition Act, 2002. The Committee also
recommends that a competitive tariff rates which is on par with other
competing countries are fixed by the authorities. (Para 48.5)
110. The Committee recommends the Ministry of Ports, Shipping and
Waterways to insert a provision in the tariff policy/guidelines for
imposition of appropriate penalty on Major Port Authorities and
Partnership (PPP) Concessionaires indulging in unfair trade practices and
charging tariff rates above the fixed scale. (Para 48.6)
PORTS EFFICIENCY
111. The Committee observes that the performance of Major ports in the
key efficiency parameters is far from satisfactory though it has shown
improvements during the last five years. The Committee strongly opines
that improvements in these key parameters are critical in boosting our
exports. The Committee, therefore, recommends the Ministry of Ports,
Shipping and Waterways to take concerted efforts to augment
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infrastructural gaps at ports and streamline the port processes to enhance
operational efficiencies of ports thereby improving performance in key
parameters. (Para 49.2)
DOCUMENTATION AND PORT DIGITIZATION
112. The Committee strongly opines that the complete digitization of all
documents as well as integration of all processes of various stakeholders
under an integrated single window system is vital for swift and timely
clearance of export consignments. The Committee, therefore, recommends
the Ministry of Ports, Shipping and Waterways to take steps for ensuring
complete digitization of documentary process at ports in coordination with
the concerned stakeholders. The Committee further recommends the
Ministry to work towards providing a single window platform for
integration of all documentary processes. (Para 50.3)
113. The Committee also recommends the Ministry to provide a
mechanism to exporters to raise their issues/grievances with regard to
compliance with port processes. It is further recommended that such
issues/grievances are redressed effectively in a time bound manner.
(Para 50.4)
PORT COMMUNITY SYSTEM (PCS)
114. The Committee recommends the Ministry of Ports Shipping and
Waterways to assist the respective port authorities in implementing Port
Community System (PCS) at all Minor ports. The Committee further
recommends the Ministry to reinforce its IT infrastructure and resolve
glitches in the system promptly for facilitating uninterrupted and seamless
transmission of trade information/data. (Para 50.6)
115. The Committee opines that complete integration of the Port
Community System (PCS) with Indian Customs EDI Gateway (ICEGATE)
is critical in ensuring a seamless Customs clearance process at gateway
ports. The Committee, therefore, recommends the Ministry of Ports,
Shipping and Waterways to coordinate with Department of Revenue to
accord utmost priority for complete integration of the two systems.
(Para 50.7)
116. The Committee recommends the Ministry of Ports, Shipping and
Waterways to integrate the Container Freight Stations (CFSs) into the Port
Community System (PCS). The Committee further recommends the
Ministry to initiate measures for complete digitization of documentary
process at the CFSs. (Para 50.9)
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DIRECT PORT ENTRY (DPE) AND DIRECT PORT DELIVERY (DPD)
117. The Committee recommends that the DPE facility should be
extended to all Major and Minor ports in a phased manner. The
Committee further recommends that, in case of unavoidable requirement
of Customs examinations, required space and infrastructure facilities
should be put in place within the port terminal for carrying the required
customs examination process without having to route it to Container
Freight Stations (CFSs). (Para 50.12)
118. The Committee recommends the Ministry of Ports, Shipping and
Waterways to coordinate with the Ministry of Railways to extend the
Direct Port Entry (DPE) facility to rail bound containers. The
infrastructural gaps and procedural requirements for facilitating the same
should be addressed in consultation with the concerned
Ministries/Department and relevant stakeholders. (Para 50.14)
DIGITIZATION OF OTHER PORTS PROCESS
119. The Committee recommends that the automated gate in facility is
provided at all ports to enable seamless movement of traffic across port
gates. It further recommends the Ministry of Ports, Shipping and
Waterways to identify the infrastructural and procedural gaps at ports that
hindered the complete automation of gate in facility and take remedial
measures to address the same. (Para 50.16)
120. The Committee observes that fixed scanners are much more efficient
than mobile scanners. The Committee, therefore, recommends the Ministry
of Ports, Shipping and Waterways to invest in fixed scanners and install
adequate scanners at gateway ports to meet the requirement of the
expanding export traffic. (Para 50.19)
SAGARMALA PROGRAMME
STATUS OF THE PROJECTS
121. The Committee observes that only 20.94 per cent of the targeted
projects have been completed after nearly 6 years of its implementation.
The Committee opines that, the Ministry will be unable to complete the
projects within the stipulated time period at the current pace. The
Committee, therefore, recommends the Ministry to accelerate the
implementation of the projects, undertake real time monitoring, rigorously
follow up with the concerned Ministries/Department and implementing
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agencies, promptly identify and address issues that hindered project
implementation to avoid delay in the process. (Para 51.3)
NATIONAL WATERWAYS
122. The Committee observes that Inland Water Transport offers a more
economic mode of transport especially for bulk cargoes. It is of the opinion
that this mode of transport is critical in addressing logistical constrains and
in reducing the logistics cost in India. The Committee, therefore,
recommends the Ministry of Ports, Shipping and Waterways to take
measures to overcome the challenges faced and implement the National
Waterways projects in a time bound manner. (Para 52.5)
123. The Committee also recommends the Ministry to work out an
effective marketing strategy to attract logistic operators and also create
awareness about the cost benefits of Inland Water Transport vis-à-vis other
modes. The Committee further recommends the Ministry to lend the
required policy support and also provide necessary incentives to logistics
operators to shift from other modes of transport to Inland Water
Transport. (Para 52.6)
PORTS-INDUSTRY INTEGRATION
124. The Committee applauds the measures taken by the Ministry for
integration of ports and industry clusters. The Committee opines that these
projects have a huge potential to boost exports and also improve
competitiveness of exports by reducing transportation cost. The
Committee, therefore, recommends the Ministry of Ports, Shipping and
Waterways to initiate the development of these industrial projects at the
earliest. It further recommends that other supporting infrastructural
facilities such as uninterrupted electricity supply, Common Effluent
Treatment Plants, etc. are provided within the industrial clusters.
(Para 53.2)
DRAFT INDIAN PORTS BILL, 2021
125. The Committee recommends the Ministry of Ports, Shipping and
Waterways to ensure that provision of the draft Indian Ports Bill does not
in any way affect the autonomy of State Governments with regard to
control of Minor ports. The Committee further recommends that the
concerns and inputs of State Governments are carefully examined by the
Ministry and incorporated in the Bill, and also ensure that no decision is
taken without the prior concurrence of the State Governments. (Para 54.3)
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INTERNATIONAL CO-OPERATION IN COASTAL SHIPPING AND
INLAND WATER TRANSPORT
INDO BANGLADESH PROTOCOL ON INLAND WATER TRANSIT AND TRADE
126. The Committee opines that the operationalization of routes identified
under the agreement is vital for our exports in view of the increased trade
volume with Bangladesh. Further, these routes have a potential for
increasing our exports footprint in our neighbouring country. The
Committee, therefore, recommends the Ministry of Ports, Shipping and
Waterways to take necessary measures for operationalization of the routes
under the agreement at the earliest. (Para 55.3)
COASTAL SHIPPING AGREEMENTS WITH BANGLADESH
127. The Committee recommends the Ministry of Ports, Shipping and
Waterways to finalize the proposal regarding the administrative fee to be
charged by Bangladesh and simultaneously pursue with the Bangladesh
Government at appropriate level so that the Chittagong and Mongla ports
can be used for exports movements at the earliest. (Para 55.6)
KALADAN MULTIMODAL TRANSIT TRANSPORT PROJECT IN MYANMAR
128. The Committee strongly opines that the project is crucial for
movement of cargoes from the North Eastern Region and has a potential
for boosting exports from the region. The Committee, therefore,
recommends the Ministry of Ports, Shipping and Waterways to coordinate
with Myanmar Government at appropriate level and finalize necessary
procedures and guideline for facilitating trade through the Kaladan River
under the Kaladan Multi Modal Transit Project. (Para 55.8)
TRANSIT TREATY WITH NEPAL
129. The Committee is of the opinion that the inclusion of inland water
transport under the transit treaty provides opportunity to increase our
trade volume with Nepal. The Committee, therefore, recommends the
Ministry of Ports, Shipping and Waterways to undertake necessary
infrastructural developments and also to finalize the required procedural
guidelines for facilitating trade with Nepal through the Sabhibganj,
Kalughat and Varanasi Terminals on National Waterway-1 and Kolkata
Port Trust at the earliest. (Para 55.10)
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STATUS OF INTEGRATED CHECK POSTS (ICPs)
130. The Committee is discontented to observe that most of the Integrated
Check Posts (ICPs) are at initial stage of implementation even after nearly
three years since approval has been accorded. The Committee notes that
delay in land acquisition has been the major issue that resulted in such
inordinate delay. The Committee, therefore, recommends the Department
of Border Management to take concerted effort to address this issue and
coordinate with the respective State Governments to resolve the same.
(Para 57.3)
TRADE VOLUME AND STATUS OF INFRASTRUCTURE
131. The Committee notes that with a 3.77 per cent share in our total
exports, Integrated Check Posts (ICPs) plays a critical role in boosting our
exports. The Committee, therefore, recommends the Department of Border
Management to undertake the infrastructural upgradation measures in a
time bound manner to enable efficient handling of increasing exports
volumes at ICPs. (Para 58.4)
PARKING SPACE AT INTEGRATED CHECK POSTS (ICPs) AND
CHARGES LEVIED
132. The Committee opines that charges levied by Land Ports Authority
of India can have an overall impact on the price of our products at export
markets. The Committee, therefore, recommends the Department of
Border Management to take into account the overall competitiveness of our
exports as a factor for deciding and fixing the various charges at Integrated
Check Posts (ICPs) and ensure that our exports are not adversely impacted
due to high charges levied at such ports. (Para 59.3)
133. The Committee recommends the Department of Border Management
to explore the feasibility of providing direct access to cargo trucks to
parking space at ICP Petrapole and an online interface/ application to
facilitate exporters to book their parking slot for a particular day may also
be implemented. The Committee further recommends providing
relaxations for parking charges at ICP Petrapole in view of the delay in
movement of cargo trucks due to limited intake capacity of Bangladesh.
(Para 59.5)
134. The Committee also recommends the Department of Border
Management to take up the issue of limited intake capacity of Bangladesh
with the concerned authority of that country for augmenting infrastructure
facilities on their side. (Para 59.6)
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DOCUMENTARY AND REGULATORY PROCESS
135. The Committee opines that digitization of trade process at ICPs is
critical for ensuring seamless movement of exports cargo and reducing
dwell time. The Committee, therefore, recommends the Department of
Border Management to accord utmost priority to implement Land Ports
Management System (LPMS) across all ICPs and ensure that it is
implemented at the earliest. (Para 60.3)
136. The Committee opines that the documents required during the
security check of vehicle by Border Guarding Force (BGF) at check gates
can be easily digitized by utilizing the facilities provided under DigiLocker.
The Committee, therefore, recommends the Department of Border
Management to coordinate with the Ministry of Electronics and
Information Technology to leverage the facilities provided under
DigiLocker to digitize the documents checking at check gates. (Para 60.4)
137. The Committee also recommends the Department of Border
Management to provide efficient and secure internet connectivity at ICPs
to facilitate digitization of processes as well as ensure seamless and
uninterrupted flow of exports data. (Para 60.5)
INDIAN CUSTOMS EDI SYSTEM (ICES) & INDIAN CUSTOMS
ELECTRONIC GATEWAY (ICEGATE)
138. The Committee recommends that a module may be created in the
Indian Customs Electronic Gateway (ICEGATE) system for generating a
provisional shipping bill, which can later be finalized based on the final
price/quantity data provided by an independent surveyor and submitted by
exporters. The Committee further recommends that only the finalized
shipping bill generated on ICEGATE based on the final data submitted by
exporters be transmitted to Reserve Bank of India (RBI) and Directorate
General of Foreign Trade (DGFT) system for claiming export benefits.
(Para 62.5)
139. The Committee recommends the Department of Revenue to explore
the feasibility to enable multiple registrations of Authorized Dealer Codes
(AD codes) of banks for a single Importer-Exporter Code (IEC) at a single
port under the system. The Committee further recommends the
Department to work towards implementation of system of Centralized
Electronic Data Interchange (EDI) registration that is applicable across all
airports, sea ports and land ports instead of exporters requiring to register
at each of the port. (Para 62.7)
142
140. The Committee recommends the Department of Revenue to fortify its
ICEGATE system to enable better and seamless integration with the other
partnering agencies including Directorate General of Foreign Trade
(DGFT). The Committee further recommends that a Nodal Officer
specifically designated with the task of resolving issues faced by exporters
in utilizing the system should be appointed. The Committee also
recommends that the ICEGATE Helpdesk may be strengthened to enable
swift resolution of issues. (Para 62.8)
141. The Committee recommends the Department of Revenue to consider
the feasibility of issuing a certificate on the basis of which banks may
process the export documents in case of delay in transmission of shipping
bills in Export Data Processing and Monitoring System (EDPMS).
(Para 62.10)
RISKY EXPORTERS
142. The Committee welcomed the measures taken by the Department of
Revenue for identifying and penalizing fraudulent Input Tax Credit (ITC)
claims by some exporters. The Committee, however, opines that such
system should not come at the cost of punishing genuine exporters due to
error in identification. The Committee, therefore, recommends the
Department of Revenue to streamline its system to avoid error in
identification, send prompt communication to exporters who are identified
as risky, and provide opportunity to exporters for resolution before taking
further steps. The Committee further recommends that the implementation
of Standard Operating Procedure (SOP) at the ground level should be
completed within the stipulated time period, i.e., one month.
(Para 63.4)
OTHER ISSUES IN CUSTOMS PROCESS
INTEGRATED GOODS AND SERVICES TAX (IGST) REFUNDS
143. The Committee recommends that necessary changes may be made in
the software in consultation with the stakeholders whereby an automatic
process of sending alert to the exporter may be worked out so that when an
error/mismatch is detected by the system the detailed information
regarding the same may be conveyed promptly to the exporters to enable
immediate rectification of the same by exporters. (Para 64.2)
143
REQUIREMENT OF PHYSICALLY SIGNED DOCUMENTS
144. The Committee is perturbed to observe that the requirement of
physical signature has not been dispensed with despite the promotion of
faceless and contactless customs process, and electronic/digital signed
documents already recognized under the Information Technology Act,
2000. The Committee opines that acceptance of e-signature/digital
signature would enhance the customs clearance process. The Committee,
therefore, recommends the Department of Revenue to issues notification on
acceptance of digitally/electronically signed signature on customs
documents. (Para 64.4)
MANUAL REGISTRATION PROCESS FOR UTILIZATION OF
AUTHORIZATION/DUTY CREDIT SCRIPS
145. The Committee finds it perplexing to observe that the customs
authority insists for manual registration of authorization/duty credit scrips
when the same is transmitted online by Directorate General of Foreign
Trade (DGFT). The Committee, therefore, recommends the Department of
Revenue to accept the authorization/duty credit scrips transmitted online
by DGFT or digitize the registration process at the custom’s end.
(Para 64.6)
MANUAL PROCESSING OF SHIPPING BILLS AT LAND CUSTOMS STATIONS
146. The Committee recommends the Department of Revenue to take
necessary measures for ensuring complete digitization of all customs
processes at Land Customs Stations (LCS) including processing of shipping
bills. The Committee further recommends the Department to ensure that
the manual shipping bill details are entered into the system by customs
official within a specified period and avoid delay in processing of refunds.
(Para 64.8)
VISIT TO UNION TERRITORIES OF JAMMU & KASHMIR AND
LADAKH
SRINAGAR
147. The Committee notes with pleasure the favourable outcome of its
intervention in persuading the Airports Authority of India to allot space
for Custom Department at Srinagar Airport for setting up an Air Cargo
Complex. The earmarking of a dedicated area to the Custom Department,
albeit on a short term basis, would ensure smooth handling and airlifting of
export cargo from the region. It, therefore, recommends the Custom
144
Department to expedite the setting up of the Complex, at the earliest, in
order to facilitate air cargo operations at the airport. (Para 65.3)
148. The Committee recommends that the Airports Authority of India
should ensure promptitude in completing the construction work at the
airport within a reasonable time frame. It exhorts that the required land
should be allotted to the Custom Department on a priority basis which
would provide unhindered transition of air cargo from Srinagar since the
exports from the region comprises goods of extreme perishability such as
apples, apricots and other horticulture and floriculture items. It is also
imperative that an adequate land should be earmarked for building a
residential complex in view of the fragility of the region in matters of
security. The Committee is also of the considered view that an optimal
framework should be devised to undertake collaborative efforts by both
Custom Department and Airports Authority of India to make Srinagar as
an air cargo export hub of the region. (Para 65.5)
149. The Committee notes that the exports from the Union Territory of
Jammu & Kashmir mainly consists of high-end products which requires
adherence to various quality standards especially in regulated advanced
markets of the world. It, therefore, recommends establishment of adequate
National Accreditation Board for Testing and Calibration Laboratories
(NABL) labs and testing centres in the Union Territory of Jammu and
Kashmir which would play a vital role in enhancing the quality of products
in line with international standards. It also recommends that the
administration of the Union Territory and the Department of Commerce
should actively engage under the scheme of TIES to develop certification
and testing infrastructure in the region. (Para 65.7)
LEH
150. The Committee is of the opinion that the export potential
commodities possessed by Ladakh includes vibrant range of high valued
unique products such as Ladakhi pashmina, walnut, dry fruits, etc. which
has a lucrative market in the world over. Hence, the export opportunities
for Ladakh would be significantly enhanced if it gains international
recognition and access in the global markets of the world. The Committee,
therefore, recommends that the administration of Ladakh and Department
of Commerce should make all out efforts to identify prospects of trade
synergies with the major global trade destinations and establish trade
linkages by conducting promotional events, fairs, etc. It also recommends
that the Trade Commissioners deployed in Embassies as well as the Indian
145
diaspora in major trading countries should be roped in for such
promotional efforts. (Para 65.9)
151. The Committee is of the view that strategizing the Union Territory of
Ladakh as a crucial region for export promotion is the need of the hour.
Optimal harnessing of the export potential of Ladakh requires several
initiatives such as promoting production of export oriented commodities,
encouraging value-added processing, quality and organic certified
production, ensuring inter and intra state linkages and connectivity of
Ladakh with other ports/ airports in the country, identification and
development of trade junctions in the region, establishing dry ports, etc. It,
therefore, recommends that a specific export policy should be devised for
the Union Territory of Ladakh in order to make it an attractive destination
in global markets. (Para 65.10)
152. The Committee is of the view that efficacy of any trade and export
policy devised for the Union Territory of Ladakh would essentially depends
upon the robustness of the export infrastructure since the trans-himalayan
region of Ladakh occupies one of the most difficult terrain in the country.
The Committee, therefore, recommends that necessary action may be
undertaken by the Government to notify the airport of Leh as a 'Custom
Airport' under Section 7 (1) (a) of the Customs Act, 1962 which would play
a crucial role in boosting exports from Ladakh by ensuring hassle free and
rapid transit of cargo goods via airlines. (Para 65.12)
153. The Committee expresses its concern on the delay in allotting
adequate space for the functioning of sub-Foreign Post Office (sub-FPO)
which has already been notified by CBIC. It recommends that the Postal
Department should step up its efforts to allot sufficient space to the
Customs Department for the sub-FPO to begin its export operations at the
earliest. (Para 65.14)
154. The Committee takes cognizance of the remote location of the region
and the lack of exposure to the exporters and recommends that awareness
programmes should be conducted for the young entrepreneurs located in
the region. Further, NABL accredited testing and certification labs should
be set up in the region to facilitate and boost exports from Ladakh.
(Para 65.16)
155. The Committee appreciates the higher budgetary allocation in the
FY 2021-22 to the two newly formed Union Territories of J&K and Ladakh
which would be beneficial in spurring infrastructure development for
economic growth and boosting exports from the respective regions. The
146
Committee feels that similar compensation should be given to other newly
carved out States like Andhra Pradesh, Chhattisgarh and Jharkhand who
lost their capital due to bifurcation. The Committee, therefore,
recommends that Special Category Status be granted to the States of
Andhra Pradesh, Chhattisgarh and Jharkhand for a period of not less than
10 years. This would ensure holistic development and economic growth of
these states in terms of trade and export infrastructure.
(Para 65.18)
SUMMATION
156. Promotion of exports through strategic policy interventions,
extending appropriate export incentives schemes that are compliant with
international trade policies, supported by a robust and efficient logistics
infrastructure is imperative to achieve the desired level of exports growth
and attain competitiveness in the global market. The Committee
recommends that evaluation of export strategies as well as assessment of
efficacy of both policy and incentive support measures in consultation with
exporters and relevant stakeholders is carried out to keep pace with the
changing domestic and global economic scenario. (Para 66.2)
157. The timely completion of these projects and the implementation of
the ‘PM Gati Shakti Master Plan’ are critical in addressing the
infrastructural gaps in our logistical chain and to enable seamless and cost-
effective movement of our export consignments. The Committee, however,
observes that the progress of projects undertaken so far by the respective
Ministries/Departments is unsatisfactory resulting in delays and cost over-
runs. The Committee feels that monitoring of progress of projects and
timely resolution of issues with regard to implementation is necessary to
avoid delays in such critical infrastructure projects. Further, issue in
acquisition of land required for infrastructural projects is found to be a
recurring issue that hindered implementation of projects. The Committee,
therefore, recommends that urgent attention at the highest level is paid to
such issues and a long term strategy is formulated in coordination with the
respective State Governments. (Para 66.4)
158. The Committee recommends institution of a formal mechanism for
coordination and communication among different Departments/Ministries
specifically tasked with planning and implementation of infrastructural
projects in order to address issues of pending clearances at the level of
different Departments/Ministries so as to address delays in projects and
also in bridging infrastructural gaps in a holistic manner. (Para 66.6)
147
159. The Committee is of the opinion that finalization of the Logistics
Policy and its timely implementation, and the completion of the Multi-
Modal Logistics Hubs/ Parks/ Terminals projects by the respective
Departments/ Ministries is, therefore, essential to address the fragmented
and complex logistics sector and bring down our logistics cost. The
Committee recommends that concerned Ministries/ Departments should
expedite finalization and implementation of the policy and projects without
delay. (Para 66.8)
160. The Committee, however, opines that the performance of India with
regard to documentary and regulatory processes is not satisfactory when
compared with other competing countries. Further, it is observed that
there are instances of insistence on submission of physical documents
despite introduction of digital process in export clearance process. The
Committee recommends that the number of documentary and regulatory
requirements is minimized and all such processes are fully digitized at
points of exports to reduce the compliance time. The Committee further
recommends that the IT infrastructure of the Participating Government
Agencies (PGAs) should be reinforced and updated regularly to avoid
glitches in the system and meet the requirements of increased flow of
exports. (Para 66.10)
161. The Committee feels that the major cause of concern is that we have
been working in silos. Exports is largely dependent on the availability of a
robust manufacturing sector, infrastructure set up, availability of credit &
financing, incentives, skilled manpower, technology, etc. Therefore, the
policies revolving around all these sectors being handled by different
Departments/ Ministries of Government of India need to be in
synchronization. The Committee hopes that the Department of Commerce
plays its pivotal role in augmenting the infrastructural facilities to boost
exports in co-ordination with various Departments/ Ministries of
Government of India. (Para 66.11)
148
MINUTES
149
*XIV
FOURTEENTH MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at10.30 A.M. on Thursday, the 25th March, 2021 in Room No.
'63', First Floor, Parliament House, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Priyanka Chaturvedi
3. Shri Sushil Kumar Gupta
4. Shri Jugalsinh Mathurji Lokhandwala
5. Shri Om Prakash Mathur
LOK SABHA
6. Shri Rajkumar Chahar
7. Shri Rameshbhai Lavjibhai Dhaduk
8. Shri Arvind Dharmapuri
9. Shri Manoj Kishorbhai Kotak
10. Shri Nakul K. Nath
11. Shri Hemant Patil
12. Dr. Manoj Rajoria
13. Shri Ashok Kumar Rawat
14. Shri Magunta Sreenivasulu Reddy
15. Shri Prajwal Revanna
16. Shri Mansukhbhai Dhanjibhai Vasava
SECRETARIAT
Shri Sunil Dutt Nautiyal, Joint Secretary
Shri S. Jason, Director
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
_____________________________________________________________________________________
* 1st to 13
th Meetings of the Committee pertain to other matters.
150
2. * * *
3. * * * ,
the Committee selected a new subject, namely, 'Augmenting Infrastructure
facilities to boost Exports' for examination by the Committee.
4. The Committee then adjourned at 11.10 A.M.
NEW DELHI NIDHI CHATURVEDI
MARCH 25, 2021 ADDITIONAL DIRECTOR
_____________________________________________________________________________________
*** Pertain to other matters.
151
*XVI
SIXTEENTH MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 11.00 A.M. on Thursday, the 8th
April, 2021 in Committee
Room ‘A’, Ground Floor, Parliament House Annexe, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shri Sushil Kumar Gupta
3. Shri Om Prakash Mathur
LOK SABHA
4. Shri Ajay Kumar Mandal
5. Smt. Manjulata Mandal
6. Dr. Manoj Rajoria
7. Shri Nama Nageswar Rao
8. Shri Mansukhbhai Dhanjibhai Vasava
SECRETARIAT
Shri Sunil Dutt Nautiyal, Joint Secretary
Shri S. Jason, Director
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
WITNESSES
Representatives of Department of Commerce
1. Dr. Anup Wadhawan, Secretary
2. Shri Pawan Kumar Agarwal, Special Secretary
3. Shri S. Kishore, Additional Secretary
4. Shri Sanjay Chadha, Additional Secretary
5. Shri Shashank Priya, Additional Secretary & FA
6. Ms. Rachna Shah, Additional Secretary
7. Shri AmitYadav, Director General, DGFT
8. Dr. C. Vanlalramsanga, Economic Advisor
9. Shri Diwakar Nath Misra, Joint Secretary
10. Shri Amitabh Kumar, Joint Secretary
11. Ms. Renu Lata, Director _____________________________________________________________________________________
* 15th
Meeting of the Committee pertain to other matters.
152
12. Shri Vikram Singh, Joint Secretary, MoPSW
13. Shri K. Sanjay Murty, CEO & MD, NICDC
14. Shri Pijush Dasgupta, Director, DPIIT
15. Shri Gaurav Masaldan, Joint Secretary, D/o Revenue
16. Shri S.P. Singh, Joint Secretary, MoRTH
17. Shri Harvinder Singh, Director, Railway Board
2. At the outset, the Chairman welcomed the Members of the Committee to
the meeting and apprised them that the Committee has taken up a new subject
‘Augmenting infrastructural facilities to Boost Exports’ in view of the
inexorable increase in share of India's exports and requirement of focusing on
the infrastructure. Attention of the Members was also drawn to Rule 294(i) of
the Rules of Procedure and Conduct of Business in the Council of States (Rajya
Sabha) regarding declaration of interests. While underlining the involvement of
various Ministries such as Finance, Civil Aviation, Ports, Highways, Railways
etc., the Chairman requested Members of the Committee to identify
infrastructure projects which are running behind schedule in their respective
States and inform the Committee so that concerned officials could be invited to
hear their view on the related issues.
3. The Chairman, thereafter, welcomed the Secretary, Department of
Commerce and his colleagues to the meeting. He sought to know policy
changes made by the Department subsequent to Covid-19 outbreak which
resulted in large scale disruption in global supply chains, specific schemes
undertaken and support provided to the States to strengthen the export
infrastructure. He further sought the status on the issues such as prompt
153
adoption of modern technology for enhancing movement of goods, measures
adopted for augmentation of regulatory infrastructure, and the efforts made in
the wake of inadequate storage facilities resulting in wastage of perishable
commodities. The Chairman also raised concern over low ranking of North
Eastern and Himalayan States in the realm of logistics infrastructure facilities as
indicated in LEADS report 2019.
4. The Secretary, Department of Commerce thanked the Chairman for
providing an opportunity to present the views of the Department on the
subject. He mentioned the impact of poor quality of infrastructure on entire
value chain in export process and stressed on the requirement of innovation in
export processes and also underlined factors affecting competitiveness of
domestic exporters. He further informed about the ongoing efforts to create
land-based plug and play platform for businesses, digitization of all approval
procedures and steps initiated to improve ease of doing business, providing
support to States for infrastructure creation through Trade Infrastructure for
Export Scheme (TIES) etc. The representative of Department also made a brief
power point presentation highlighting the role of infrastructure in boosting
export, key initiatives undertaken by the department in road, rail, and shipping
network as well as in improving border trade infrastructure in the country.
Trade facilitation initiatives of the Directorate General of Foreign Trade
(DGFT) in enhancing soft infrastructure was also underscored as well as the
integration of logistics in the country. The Secretary further informed that the
154
global financial crisis, US-China trade war, and Covid-19 pandemic were the
reasons for declining trend in mercantile exports from the country. He,
however, showed optimism in achieving optimal potential of the economy on
account of developments made in industrial corridors, improvement in ease of
doing business climate and introduction of Production Linked Incentive (PLI)
Scheme for boosting domestic manufacturing.
5. The Committee also discussed the issues of higher trade cost in the
country, development of export facilitating infrastructure in States, meagre
allocation made to TIES scheme, inordinate delay in completion of Urban
Extension Road (1&2) and development of railway stations for proper sharing
of load distribution in Delhi, and dilapidated conditions of roads in States
impeding free flow of load carrying vehicles. The Committee also dwelt upon
the issues of low ranking of the country in Logistics Performance Index, setting
up of meaningful and achievable targets by the Department, present status of
Logistics Policy, Logistics Act and Action Plan. The representatives of the
Department informed the Committee that steps are being taken to improve
logistics infrastructure thereby reducing the logistics cost and also States have
been advised to set up State Logistics Coordination Committee for developing
trade infrastructure.
6. The Chairman then thanked Secretary, Department of Commerce,
Ministry of Commerce and Industry and his colleagues for the information
155
provided and requested them to furnish the replies in writing on the issues not
addressed during the interaction.
7. A verbatim record of proceedings of the meeting was kept.
8. The Committee then adjourned at 1.25 P.M.
NEW DELHI NIDHI CHATURVEDI
APRIL 08, 2021 ADDITIONAL DIRECTOR
156
XVII
SEVENTEENTH MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 3.00 P.M. on Tuesday, the 22nd
June, 2021 in Room No. '63',
First Floor, Parliament House, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Priyanka Chaturvedi
3. Shrimati Roopa Ganguly
4. Shri Deepak Prakash
5. Shri John Brittas
LOK SABHA
6. Shri Rameshbhai Lavjibhai Dhaduk
7. Shri Manoj Kishorbhai Kotak
8. Shri Hemant Patil
9. Shri Gautham Sigamani Pon
10. Dr. Manoj Rajoria
11. Shri Nama Nageswar Rao
12. Shri Magunta Sreenivasulu Reddy
13. Shri Prajwal Revanna
14. Shri Kesineni Srinivas
SECRETARIAT
Shri S. Jason, Joint Secretary
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
WITNESSES
Representatives of Federation of Indian Export Organisations (FIEO)
1. Dr. Ajay Sahai, DG & CEO
2. Shri Prashant Seth, Director
3. Shri Rajeev Bansal, Director
4. Shri Pranav Malik, Head (EXIM Operations)
157
2. At the outset, the Chairman welcomed the members of the Committee
and informed them about the agenda of the meeting. Thereafter, he welcomed
the representatives of Federation of Indian Export Organisations (FIEO) and
highlighted various issues on the subject ‘Augmenting Infrastructure Facilities
to Boost Exports’ such as (i) Exorbitant hike in freight charges during Covid-19
pandemic and resultant impact on MSME sector; (ii) Adopting state-of-the-art
technology in export infrastructure; (iii) Complex procedural compliances in
exports; and (iv) Multi-modal freight movement including strengthening of rail
infrastructure.
3. The representatives of FIEO apprised the Committee about the issues of
high logistics cost of exports in India thereby restricting it to become a part of
Global Value Chain. They further highlighted inadequate allocation to Trade
Infrastructure for Export Scheme (TIES) resulting into financial burden on
States to implement the scheme. It was also informed that the States are being
ranked under the Export Preparedness Index by NITI Aayog to encourage their
active participation in strengthening export infrastructure. The representatives
expressed satisfaction on the efforts of Government to augment agricultural
infrastructure which would boost the exports of value added agricultural
products from India.
4. The representatives then dwelt upon the need to promote indigenous
manufacturing of cargo containers in the country to overcome the rising freight
costs. They also stated that domestic shipping lines of global repute should be
established in India in order to reduce the dependence of exporters on foreign
158
players. It was suggested that a shipping regulator on a pan-India basis should
be set up to ensure regulation on freight rates. It was further apprised that during
pandemic, the exporters are being charged more on inland haulage costs by the
shipping lines than the earlier charges of CONCOR.
5. The representatives further informed that freight movement in India is
more through roads than rail due to infrastructural issues in railways such as
less frequency of cargo trains, limited connectivity of ICDs to ports and absence
of facilities at ICDs. They also expressed concern over the issues of high
terminal handling charges for air cargo and less availability of cold chain and
other facilities at airports. Further, the challenges faced by exporters with the
faceless assessments in the clearing process were also discussed.
6. The Committee, thereafter, deliberated upon the need to have a dedicated
road service for movement of goods from production or mining centre to rail
coaches. It discussed on taking steps to strengthen rail infrastructure for
seamless movement of cargo containers. It was suggested that a regulatory
mechanism should be devised for minor or private ports along similar lines of
Tariff Authority for Major Ports (TAMP).
7. The Committee was further apprised of the challenges in cargo movement
to Bangladesh via Integrated Check Post due to delay in clearances of trucks.
Concerns were also raised on the inordinate delay in the completion of Delhi-
Mumbai Industrial Corridor project leading to cost overrun. It was discussed
that inefficiencies in infrastructure poses difficulties to exporters in transporting
goods from hinterland to ports.
159
8. The Committee was informed that the application of new technologies in
cargo containers such as the passive technology of vacutech in cold chain
containers along with increasing the number of cargo flights would boost the
exports of perishables. It was also apprised that multi modal transportation of
goods in the country would ensure competitiveness and cost-effectiveness in
logistics. However, this would require coordinative efforts amongst various
Ministries/ Departments and other agencies.
9. The Chairman then thanked the representatives of FIEO for the
information provided on the subject and requested them to furnish the replies in
writing on the issues not addressed during the meeting.
10. A verbatim record of proceedings of the meeting was kept.
11. The Committee then adjourned at 5.27 P.M.
NEW DELHI NIDHI CHATURVEDI
JUNE 22, 2021 ADDITIONAL DIRECTOR
160
XVIII
EIGHTEENTH MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 11.00 A.M. on Wednesday, the 23rd
June, 2021 in Room No.
'63', First Floor, Parliament House, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy - Chairman
RAJYA SABHA
2. Shrimati Priyanka Chaturvedi
3. Shrimati Roopa Ganguly
4. Shri Om Prakash Mathur
5. Shri Deepak Prakash
6. Shri John Brittas
LOK SABHA
7. Shri Raju Bista
8. Shri Rajkumar Chahar
9. Shri Manoj Kishorbhai Kotak
10. Shri Hemant Patil
11. Shri Gautham Sigamani Pon
12. Dr. Manoj Rajoria
13. Shri Nama Nageswar Rao
14. Shri Kesineni Srinivas
SECRETARIAT
Shri S. Jason, Joint Secretary
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
WITNESSES
Representatives of Railway Board (Ministry of Railways)
1. Shri Suneet Sharma, Chairman & Chief Executive Officer
2. Shri Sanjeev Mittal, Member (Infrastructure)
3. Shri Rahul Jain, Member (Traction& Rolling Stock)
4. Shri S.K. Mohanty, Member (Operations & Business Development)
161
5. Shri Mukesh Nigam, Additional Member (Commercial)
6. Shri Rahul Agarwal, Additional Member (Signal)
7. Shri Sanjay Rastogi, Additional Member (Works)
8. Shri R.N. Singh, Principal Executive Director (Infrastructure)
9. Dr. Manoj Singh, Executive Director, Traffic Transportation
2. The Chairman welcomed members of the Committee and informed them
about agenda of the meeting. Thereafter, he welcomed Chairman, Railway
Board and his colleagues to the meeting and in his opening remarks highlighted
some pertinent issues on the subject ‘Augmenting Infrastructure Facilities to
Boost Exports’ such as status of export infrastructure under Railway Board,
difficulties faced and remedial measures in fulfilling infrastructural
requirements. He also sought the status of Dedicated Freight Corridors and Port-
Rail Connectivity projects, Public Private Partnership in train operations, low
modal-share of Railways in freight traffic, unscheduled stoppage, inadequate
frequency, and tardy movement of freight trains.
3. The Chairman, Railway Board apprised the Committee about the decision
of Government to invest in dedicated freight corridors for increasing modal
share of railways and reducing cost of transportation by employing longer
freight trains carrying larger quantities of goods at higher speeds. It was also
informed that during Covid pandemic several overdue renovation, modification,
and upgradation works were carried out to reduce operational bottlenecks and
installation of hi-tech equipment was carried out to improve efficiency. It was
also informed that busy season surcharge levied on normal cases has been
withdrawn and discounts and concessions have been re-introduced on
162
consignment to attract freight. He also briefed about the user-friendly portal of
Business Development Unit linked to freight operations that has been launched
to provide end-to-end solutions along with provision of privately-owned wagon
scheme and Kisan Rail.
4. To reduce disparity in quantum of freight movement between rail and
road it was submitted that a draft National Investment Plan to bring in 45 per
cent of the modal share of freight traffic to Railways is under preparation.
Further, provisions have been made for Public Private Partnership mode in
trains operation to infuse modern technology and investment. It was also
informed that Detailed Project Report (DPR) for three more Dedicated Freight
Corridors is under preparation and work on the same would be started as soon
as it is finalized. It was also mentioned that provision of penalty is in place on
private operators in the event of loss of punctuality below 95 per cent to
maintain efficiency and promptness.
5. The problems of technical flaws in underpasses like narrow passage,
blind spots and less headroom witnessed in various States of the country and
problem of water logging and mud accumulation during rains was elaborated
during the deliberation. In this regard, it was submitted that the matter would be
sorted out with appropriate engineering solutions. The issues pertaining to time
and cost-overrun of freight corridors and other issues such as delayed provision
of setting up accelerator and over bridges on DFC were also highlighted during
163
discussion. The Committee was given to understand that factors affecting
logistics have been identified as sluggish movement of freight trains, need for
creation of required infrastructure, improvement in terminal handling to reduce
congestion and identification of more areas for Roll-on, Roll-off (RoRo)
transport system to further cut logistics cost.
6. Briefing the Committee on providing point-to-point solution, it was
informed that the Railways would tie-up with freight forwarders and logistic
partners to provide logistic solutions for faster delivery of consignments and
several steps have been undertaken to make Railways more competitive. The
Committee was also apprised that to reduce carbon footprints Railways is
moving toward electrification and utilizing non-conventional energy sources
like solar power and tidal power to generate 20 Gigawatt of energy which
resulted in savings of Rs. 9,000 crore on diesel cost. On the issue of generating
revenue, it was averred that steps are being taken to augment non-fare earnings
through advertisements, domestic tourism and monetization of railway assets
such as hill railways, multifunctional complexes and freight terminals. The
Committee was also given to understand that more incentives and benefits are
being planned to capture export traffic which at present accounts for a meager
8-10 per cent in comparison to 80 per cent share of traditional coal, iron ore and
steel.
164
7. On the issue of re-capturing lost share of 80 per cent cargo movement
through trains in earlier times which is less than 30 per cent at present, it was
affirmed that after full commissioning of Dedicated Freight Corridor, modal
shift would start occurring in freight as well as additional traffic thereby
reducing traffic congestion progressively. Bifurcating passenger division and
freight division of Railways into two separate entities was also deliberated
upon. In this context, it was submitted by Railways that as of now there was no
such demarcation between these two as both the wings utilize common
infrastructure and work in unison and apportionment of entire cost would be a
complex procedure. Additionally, it was informed that projects concerning both
division areas are combined in Vision Document-2024 of Railways, and entirely
separating both divisions would entail deeper consideration to work out.
8. The Committee was apprised by the representatives of Railways that local
Members of Parliament would be involved in the events of devising
development plans of the concerned area, for generating revenues, and
connecting satellite town and cities through hubs and spokes. Besides this, it
was also submitted that, now Light Detection and Ranging (LiDAR) survey is
carried along with foot survey to ensure implementation of projects and making
alteration therein, if required. With regard to enhancing the connectivity of
North-Eastern States with neighboring countries, it was informed that various
165
initiatives are at different stages and being implemented in collaboration with
Ministry of External Affairs.
9. Deliberations were also held on the issues of shifting Visakhapatnam
Railway Division and merging it with Vijayawada Railway Division and the
sanctity of the decision. Discussion was also held on extending the Defect
Liability Period for maintenance of completed infrastructure and about the
policy envisaged to ensure quality work in raising structures.
10. The Chairman, thereafter, thanked the representatives of Railway Board
for the information provided on the subject and requested them to furnish
written replies on the issues not addressed during the meeting.
11. A verbatim record of proceedings of the meeting was kept.
12. The Committee then adjourned at 2.32 P.M.
NEW DELHI NIDHI CHATURVEDI
JUNE 23, 2021 ADDITIONAL DIRECTOR
166
XIX
NINETEENTH MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 3.00 P.M. on Thursday, the 8th July, 2021 in Main Committee
Room, Ground Floor, Parliament House Annexe, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Priyanka Chaturvedi
3. Shrimati Roopa Ganguly
4. Shri Sushil Kumar Gupta
5. Shri Jugalsinh Lokhandwala
6. Shri Deepak Prakash
7. Shri John Brittas
LOK SABHA
8. Shri Prasun Banerjee
9. Shri Raju Bista
10. Shri Rajkumar Chahar
11. Shri Manoj Kishorbhai Kotak
12. Shri Gautam Sigamani Pon
13. Dr. Manoj Rajoria
14. Shri Nama Nageswar Rao
15. Shri Prajwal Revanna
16. Shri Kesineni Srinivas
SECRETARIAT
Shri S. Jason, Joint Secretary
Shri T.N. Pandey, Director
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
WITNESSES
Representatives of PHD Chamber of Commerce and Industry
1. Shri Saurabh Sanyal, Secretary General
2. Shri Vishal Dhingra, Chairman, Foreign Trade and Investment
Committee
167
3. Shri Mohit Jain, Chairman, MSME Committee
4. Shri D.P. Goel, Co-Chairman, MSME Committee
5. Dr. S P Sharma, Chief Economist
2. At the outset, the Chairman welcomed the members of the Committee.
The Committee decided to undertake a study visit to Srinagar and Leh
tentatively from 24th
to 28th August, 2021 to have a detailed view on the subject
‘Augmenting Infrastructure Facilities to Boost Exports' under examination by
the Committee. The Committee authorized the Chairman to seek permission of
Hon'ble Chairman, Rajya Sabha for the said study visit.
3. Thereafter, the Chairman informed the members about the agenda of the
meeting and welcomed the representatives of PHD Chamber of Commerce and
Industry and highlighted various issues and concerns on the subject
'Augmenting Infrastructure Facilities to Boost Exports' especially pertaining to
air cargo logistics and infrastructure. The representatives of PHD Chamber of
Commerce and Industry briefed the Committee about the measures needed for
strengthening air cargo infrastructure. This includes installation of warehousing,
storage and palletizing facilities at airports. They also highlighted the challenges
being faced by manufacturers in the form of high costs of production such as
expensive raw materials and high priced electricity.
4. The representatives further apprised the Committee about the hurdles
being faced by exporters in transporting their goods from hinterland to ports.
They stressed upon the need to streamline procedural complexities and
institutional rigidities at ports. It was put forth that the unutilized landholdings
belonging to Airports Authority of India should be monetized and used in
developing infrastructural facilities in form of warehouses and storages etc.
168
5. The representatives raised concerns on inadequate skilled and specialised
manpower at airports essentially required to handle air cargo. They further
apprised the Committee about the adverse impact of inverted duty structure on
exports and import of finished products at a cheaper cost. Also, issues such as
high average dwell time at airports for exporting goods; absence of queue
system at terminals as well as huge transportation costs in exports as compared
to other countries in the world were further discussed.
6. The Committee, thereafter, raised its concern on halting operation of
non-scheduled air cargo carriers at airports of Tier-II cities by the Government.
It also discussed upon promoting solar and other forms of renewable energy as
an alternative source of power in the manufacturing and logistics sector. It
further dwelt upon the need to strengthen logistics for directly exporting goods
to individual customers or end users of other countries. It was also stated that
delay in clearance of export consignments is mainly due to lack of coordination
amongst relevant Ministries/ Departments and agencies thereby affecting our
exports.
7. The Committee discussed on the significant role that can be played by
Chambers of Commerce in augmenting exports mainly by disseminating
policies and advisories amongst exporters especially in the MSME sector. It
deliberated upon the need to identify potential sectors of exports along with
exploring specific countries to market such products. Apprehensions were also
raised on uncertainty in determining refund rates under the Scheme of RoDTEP
resulting into diminishing of benefits to exporters. Regulation of quality
169
standards in trade and establishing more number of small airports in the country
were further discussed.
8. The Chairman then thanked the representatives of PHD Chamber of
Commerce and Industry for the information provided on the subject and
requested them to furnish the replies in writing on the issues not addressed
during the meeting.
9. A verbatim record of proceedings of the meeting was kept.
10. The Committee then adjourned at 6.17 P.M.
NEW DELHI NIDHI CHATURVEDI
JULY 8, 2021 ADDITIONAL DIRECTOR
170
XX
TWENTIETH MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 11.00 A.M. on Friday, the 9th July, 2021 in Main Committee
Room, Ground Floor, Parliament House Annexe, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Priyanka Chaturvedi
3. Shrimati Roopa Ganguly
4. Shri Sushil Kumar Gupta
5. Shri Jugalsinh Lokhandwala
6. Shri Om Prakash Mathur
7. Shri Deepak Prakash
8. Shri John Brittas
LOK SABHA
9. Shri Prasun Banerjee
10. Shri Raju Bista
11. Shri Manoj Kishorbhai Kotak
12. Shri Nakul K. Nath
13. Shri Gautham Sigamani Pon
14. Dr. Manoj Rajoria
15. Shri Nama Nageswar Rao
16. Shri Prajwal Revanna
SECRETARIAT
Shri S. Jason, Joint Secretary
Shri T.N. Pandey, Director
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
WITNESSES
Representatives of Ministry of Civil Aviation
1. Shri Sanjeev Kumar, Chairman, Airports Authority of India (AAI)
2. Ms. Usha Padhee, Joint Secretary
3. Ms. Rubina Ali, Joint Secretary
4. Shri Angshumali Rastogi, Joint Secretary
171
5. Shri Amber Dubey, Joint Secretary
6. Shri A.K. Pathak, Member (Planning), AAI
7. Shri Keku Bomi Gazder, CEO, AAI Cargo Logistics and Allied Services
Company Limited (AAICLAS)
2. The Chairman welcomed the members of the Committee and informed
them about agenda of the meeting. Thereafter, he welcomed the Chairman,
Airports Authority of India and representatives of Ministry of Civil Aviation to
the meeting and in his opening remarks flagged various pertinent issues on the
subject ‘Augmenting Infrastructure Facilities to Boost Exports’. He sought to
know their views on the issue of longer dwell time at airports, non-availability
of cold storage facilities for perishable goods, and skilled manpower to handle
logistics process at air cargo terminals. He also desired to know about the
measures taken to establish Common User Domestic Cargo Terminals to cater
to the increased trade activities in the country and about the status of National
Air Cargo Policy unveiled in 2019.
3. The Chairman, Airports Authority of India made a Power Point
Presentation and highlighted therein the recent trends in air cargo and the steps
taken to augment infrastructure for export promotion. He apprised the
Committee about available export infrastructure and equipment, regulatory and
documentary procedures at airports, steps taken for augmenting skilled
manpower for efficient cargo handling, and initiatives taken to reduce dwell
time for exports.
172
4. The Committee was apprised that to sort out the delay in moving of export
cargo more trucks are being operated. Further, the Committee was apprised that
to optimize the costs incurred in cargo export old terminals are being re-
modified and new terminals are also being constructed utilizing state-of-the-art
technology. The Chairman, Airports Authority of India assured the Committee
that dedicated efforts would be taken up for implementing E-way Bill,
enhancing First-in-First-out (FIFO) process, stacking of containers in a
scientific manner, reducing the dwell time at airports, and making available
skilled manpower at airports.
5. The Committee, thereafter, suggested establishing storage and
infrastructural facilities at the lands available with Airports Authority of India,
maximize use of modern technology in air cargo movement and provide end-to-
end cargo service for ease of business. The Committee also suggested to utilize
and monetize the unused lands of Airports, especially in Mumbai and other
Airports for creating world class export infrastructure. The Committee also
directed the AAI to get encroachment of land annulled at the earliest. The
Committee also enquired about the steps envisaged to improve country’s global
trade scenario, and the long-term and short-term planning to capture the export
market and building confidence in the industrial sector with regard to aviation
sector. The issues of reducing cost involved in air cargo, mitigating congestion
due to overcrowding of flights, streamlining packaging/re-packaging of
consignments at airports, and hiring of retired skilled labourers for cargo
handling were also dwelt upon. The Committee also deliberated upon the
173
matters related to re-development of airport area encroached upon, joint venture
for building cold storage facilities and taking steps to retain skilled cargo
labourers and technicians going abroad.
6. The Committee also interacted with the representatives on the issues of
utilizing latest technology and bringing innovation for automated cargo
movement at airports. Discussions were also held at length on issuance of a
notification by the Director General of Civil Aviation (DGCA) revoking
permission to foreign non-scheduled cargo carriers from landing in several
airports except Mumbai, Bengaluru, Delhi, Chennai, Hyderabad and Kolkata
which is against the narrative of ‘open sky cargo policy’ and causing loss of
revenue to the airports. The Committee was assured that the matter would be
enquired into and necessary action taken in this regard.
7. The Committee also raised the issue of exorbitant price of certain food
items and water bottles at many airports in the country and requested the AAI to
look into it to give the relief to common flyers.
8. The Chairman, then, thanked the representatives of Airports Authority of
India and Ministry of Civil Aviation for the information provided on the subject
and requested them to furnish written replies on the issues not addressed during
the meeting.
9. A verbatim record of proceedings of the meeting was kept.
10. The Committee then adjourned at 12.51 P.M.
NEW DELHI NIDHI CHATURVEDI
JULY 9, 2021 ADDITIONAL DIRECTOR
174
XXII
TWENTY SECOND MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 3.00 P.M. on Thursday, the 29th July, 2021 in Room No. ‘63’,
First Floor, Parliament House, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Roopa Ganguly
3. Shri Sushil Kumar Gupta
4. Shri Jugalsinh Lokhandwala
5. Shri Deepak Prakash
LOK SABHA
6. Shri Raju Bista
7. Shri Rajkumar Chahar
8. Shri Arvind Dharmapuri
9. Shri Manoj Kishorbhai Kotak
10. Shrimati Manjulata Mandal
11. Shri Nakul K. Nath
12. Shri Gautham Sigamani Pon
13. Dr. Manoj Rajoria
14. Shri Nama Nageswar Rao
15. Shri Magunta Sreenivasulu Reddy
SECRETARIAT
Shri S. Jason, Joint Secretary
Shri T.N. Pandey, Director
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
REPRESENTATIVES OF MINISTRY OF PORTS, SHIPPING AND
WATERWAYS
1. Dr. Sanjeev Ranjan, Secretary (PS&W)
2. Shri Sanjay Bandopadhyaya, Additional Secretary
3. Shri Amitabh Kumar, Director General (Shipping)
________________________________________________________________________________
* 21st Meeting of the Committee pertains to other matters.
175
4. Ms. H. K. Joshi, CMD, SCI
5. Shri Sanjay Sethi, Chairman, JNPT
6. Shri Vinit Kumar, Chairman, SPMPT
7. Shri P. Raveendran, Chairman, Chennai Port
8. Shri Vikram Singh, Joint Secretary (P&S)
9. Shri Bhushan Kumar, Joint Secretary (SM)
10. Shri Sunil Kumar Singh, Adviser (Statistics)
11. Shri Lucas L. Kumsuan, Joint Secretary (DGLL)
12. Shri H.N. Aswath, Development Adviser (Ports)
13. Shri Arvind Chaudhary, Economic Adviser
2. The Chairman welcomed the members of the Committee to the meeting
and informed them about the agenda of the meeting. * * *.
3. * * *.
4. The Chairman, thereafter, welcomed the representatives of Ministry of
Ports, Shipping and Waterways and solicited their views on various issues on
the subject 'Augmenting Infrastructure Facilities to Boost Exports' especially
pertaining to the infrastructure at ports.
5. Secretary, Ministry of Ports, Shipping and Waterways apprised the
Committee about the substantial augmentation in capacities of ports in India. He
laid emphasis on the need to modernize berths and to boost up equipment
facilities at ports to handle the increasing containerized cargo in the country. He
__________________________________________________________________________________________
*** Pertain to other matters.
176
also highlighted the advantages of enacting Major Port Authorities Act which
would extend autonomy to ports for undergoing private partnerships in order to
enhance their efficiency.
6. Secretary, Ministry of Ports, Shipping and Waterways further apprised
the Committee about the initiatives being taken to augment the navigation of
inland waterways of the country by adding new links and routes to the protocol
routes of the existing waterways. He apprised about the measures being taken to
improvise the port infrastructure such as steps to increase the draft of major
ports, construction of dedicated warehousing facilities at ports, launching an IT
portal i.e., Port Community System and implementation of Direct Port Delivery
system to reduce procedural constraints in movement of cargo.
7. The Chairman of the Committee, thereafter, expressed his concern on the
alleged centralization of powers by Union Government through enactment of
various legislations in matters of ports and shipping. However, the Secretary
responded by assuring the Committee that the said legislative framework are
solely aimed at better management of ports. The Committee then discussed
about the undue delay in development of Ramayapatnam port and
modernization of Buckingham Canal in the State of Andhra Pradesh. The issues
of welfare of port labourers and workers were also dwelt upon.
8. The Committee also deliberated on the support being extended by the
Ministry to State Governments for development of coastal jetties on national
and inland waterways. It further expressed its concern over the deferral in
177
completion of project undertaken by Port of Singapore Authority for the
expansion of JNPT port in Mumbai. The Ministry stated that the
implementation of second phase of concession agreement as a part of the project
has been held up on account of delay in obtaining environmental clearance for
the same.
9. The Committee opined that Ministry should explore the feasibility to
create at least one ideal Port which may compete the best ports of world in
terms of dwell time, turnaround time and related to other export/ import
infrastructure.
10. The Chairman then thanked the Secretary, Ministry of Ports, Shipping
and Waterways and his colleagues for the valuable information and requested
him to furnish the replies in writing to the issues not addressed during the
meeting.
11. A verbatim record of proceedings of the meeting was kept.
12. The Committee then adjourned at 5.31 P.M.
NEW DELHI NIDHI CHATURVEDI
JULY 29, 2021 ADDITIONAL DIRECTOR
178
XXIII
TWENTY THIRD MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 3.00 P.M. on Thursday, the 5th August, 2021 in Main
Committee Room, Ground Floor, Parliament House Annexe, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Roopa Ganguly
3. Shri Jugalsinh Lokhandwala
4. Shri Deepak Prakash
5. Shri John Brittas
LOK SABHA
6. Shri Raju Bista
7. Shri Rajkumar Chahar
8. Shri Rameshbhai Lavjibhai Dhaduk
9. Shri Arvind Dharmapuri
10. Shri Manoj Kishorbhai Kotak
11. Shrimati Manjulata Mandal
12. Shri Gautham Sigamani Pon
13. Dr. Manoj Rajoria
14. Shri Nama Nageswar Rao
15. Shri Magunta Sreenivasulu Reddy
16. Shri Gowdar Mallikarjunappa Siddeshwara
17. Shri Kesineni Srinivas
SECRETARIAT
Shri S. Jason, Joint Secretary
Shri T.N. Pandey, Director
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
Representatives of Ministry of Road Transport and Highways
1. Shri Giridhar Aramane, Secretary
2. Shri I.K. Pandey, DG (RD) and SS
179
3. Shri K.C. Gupta, Additional Secretary
4. Shri Alok, Member
5. Shri R.K. Pandey, Member
6. Shri Mahabir Singh, Member
7. Shri Manoj Kumar, Member
8. Shri Amit Varadan, Joint Secretary
9. Shri Amit Kumar Ghosh, Joint Secretary
10. Shri Mahmood Ahmed, Joint Secretary
11. Shri Suman Prasad Singh, Joint Secretary
12. Shri Kamlesh Chaturvedi, Joint Secretary
13. Shri U.C. Katara, Chief Engineer
14. Shri W. Blah, Executive Director
15. Shri Sudip Chaudhary, Chief Engineer
16. Shri Mahinder Singh, Director
17. Shri Anshuman Mohanty, Economic Advisor
Representatives of Department for Promotion of Industry and Internal
Trade
1. Shri Giridhar Aramane, Secretary (Additional Charge)
2. Shri K. Sanjay Murthy, CEO, DMICDC
3. Ms. Sumita Dawra, Additional Secretary
4. Shri Anil Aggarwal, Additional Secretary
5. Ms. Rupa Dutta, Senior Economic Advisor
6. Shri Rajendra Ratnoo, Joint Secretary
7. Ms. Manmeet K. Nanda, Joint Secretary
180
4.30 P.M.
Representatives of Department of Commerce
* * *
Representatives of Ministry of Home Affairs
* * *
Representatives of Human Hair & Hair Products Manufacturers and
Exporters Association of India
* * *
I Oral evidence of representatives of Ministry of Road Transport and
Highways; and Representatives of Department for Promotion of
Industry and Internal Trade
2. The Chairman welcomed members of the Committee to the meeting and
informed them about agenda of the meeting. Thereafter, he welcomed
Secretary, Ministry of Road Transport and Highways and Department for
Promotion of Industry and Internal Trade and his colleagues to the meeting.
The Chairman in his opening remarks flagged various pertinent issues on the
subject ‘Augmenting Infrastructure Facilities to Boost Exports’.
3. The Committee was apprised that several meetings involving Secretaries
of all the Ministries/Departments of Government of India have been convened
to prepare a National Logistics Master Plan for multimodal transport which
would soon get approved and make the entire logistics sector of the country
more efficient
_____________________________________________________________________________________
*** Pertain to other matters.
181
and lead to reduction in cost of development of infrastructure. It was brought
to the notice of Committee that Sagarmala Project and Bharatmala Project have
been intertwined for connecting port and linking industrial nodes in various
parts of the country enabling reduction of logistics cost and making the
domestic industries more competitive. Dwelling on the issue of removing road
related bottlenecks it was submitted that expressways proposed under
Bharatmala Pariyojana would enhance average speed of multi-axle vehicles and
curtail transit time drastically; moreover, major multi-modal logistic parks have
also been planned and negotiations are underway with the State Governments
for providing requisite land for such projects.
4. The representatives of Department for Promotion of Industry and Internal
Trade made a brief presentation highlighting various aspects including current
status of National Industrial Corridor Programme and displaying current status
of 32 Projects spread over four phases under 11 Corridors forming part
of National Infrastructure Pipeline. Various issues plaguing development of
Industrial Corridor projects and steps taken to expedite such projects along with
allocation of required funds were also discussed including deliberations on India
International Convention and Expo Centre, Dwarka.
5. The representatives from Ministry of Road Transport and Highways also
made a presentation highlighting issues like status of awarded and approved
projects under Bharatmala Pariyojana for improving freight movement in the
182
country; existing state of Greenfield Corridors planned under Bharatmala
Pariyojana; proposed locations and support required for development of Multi-
Modal Logistic Parks to revamp logistics sector in the nation; and significance
of Port Connectivity Roads Projects and key challenges impeding their
completion.
6. The Committee also dwelt upon the issues such as sluggish pace of work
on National Highway-48, dearth of industrial corridor projects in several States,
delay in completion of Delhi-Mumbai corridor, linking coastline road to
corridors and need of Convention Centres in southern part of the country. The
Committee was apprised that policy formation for expeditious completion of
delayed infrastructure works is underway; State Governments have been called
on to convey willingness for undertaking projects and the Central Government
is ready to contribute if the State Governments come forward for taking up
infrastructure projects. Further, Sagarmala programme is being envisaged to
accord due importance in Southern part of country. The Committee was
informed that conversion of State Highways into National Highways would be
expedited and through intervention of PMO most of the land acquisition issues
have already been resolved and also the issues of shareholding pattern of
industrial projects between Central and State Governments are being sorted out.
7. The Committee also deliberated upon the matters related to payment of
compensation for land acquired by the Central or State Government, completion
of Zaheerabad and Pharma City projects, and declaration of National Highways
183
and numbering thereof for identification. Discussions were also held on
development of passenger utility centers along National Highways, preservation
and conservation of flora and fauna while undertaking road projects, color-
coding of State and National Highways and their maintenance and inviting local
Member of Parliament during inauguration of road projects.
8. The Chairman then thanked the Secretary and his colleagues for the
valuable information and requested him to furnish replies in writing to the
issues not addressed during the meeting.
(The witness then withdrew)
II * * *
9. * * *
10. * * *
11. * * *
12. * * *
13. * * *
14. * * *
15. A verbatim record of proceedings of the meeting was kept.
16. The Committee then adjourned at 6.58 P.M.
NEW DELHI NIDHI CHATURVEDI
AUGUST 5, 2021 ADDITIONAL DIRECTOR _____________________________________________________________________________________
*** Pertain to other matters.
184
TWENTY FOURTH MEETING
The Department Related Parliamentary Standing Committee on
Commerce met at 03.00 P.M. on Tuesday, the 7th
September, 2021 in Main
Committee Room, Ground Floor, Parliament House Annexe, New Delhi.
MEMBERS PRESENT
1. Shri V. Vijayasai Reddy Chairman
RAJYA SABHA
2. Shrimati Priyanka Chaturvedi
3. Shrimati Roopa Ganguly
4. Shri Jugalsinh Lokhandwala
5. Shri Om Prakash Mathur
LOK SABHA
6. Shri Prasun Banerjee
7. Shri Hemant Patil
8. Shri Nama Nageswar Rao
9. Shri Ashok Kumar Rawat
10. Shri Magnuta Sreenivasulu Reddy
11. Shri Kesineni Srinivas
SECRETARIAT
Shri S. Jason, Joint Secretary
Shri T.N. Pandey, Director
Shrimati Nidhi Chaturvedi, Additional Director
Shri Kuldip Singh, Under Secretary
2. The Chairman welcomed the members of the Committee to the meeting
and informed them about agenda of the meeting. He then highlighted the
achievements made by the Committee during its current tenure. The Committee,
thereafter, took up for consideration the draft 164th Report on ‘Augmenting
Infrastructure Facilities to Boost Exports’. After a brief discussion, the
Committee adopted the 164th
Report with minor changes as suggested by some
members.
185
3. The Committee authorized the Chairman to present the said Report to
Hon’ble Chairman, Rajya Sabha on Saturday, the 11th September, 2021 via
video conferencing as both the Houses of Parliament are not in session.
4. The Committee then adjourned at 03.45 P.M.
NEW DELHI NIDHI CHATURVEDI
SEPTEMBER 7, 2021 ADDITIONAL DIRECTOR
186
ANNEXURES
187
Annexure I
Details of 44 projects under Trade Infrastructure for Export Scheme
Sl. No. Implementing
Agency Project Name
Expected Date of
Completion
1 Karnataka Fisheries
Development
Corporation
(KFDC),
Government of
Karnataka
Modernisation of infrastructure facility
for Marine exports at Tadadi, Kumta
Taluk, Uttara Kannada District,
Karnataka
Completed
2 Visvesvaraya Trade
Promotion Centre
(VTPC), Bengaluru,
Government of
Karnataka
Establishment of ‘Coastal Cashew
Research & Development Foundation,
Kumta, District Uttara Kannada,
Karnataka
Project is struck due to
escalation in project cost
on account on increase in
scope of civil work.
Implementing Agency (IA)
is following up with State
Government for funding of
cost escalation.
3 Cochin SEZ Construction of SDF building at
Cochin SEZ, Kerala
August, 2021
4 Airport Authority of
India (AAI)
Establishment of Integrated Cargo
Terminal (ICT) at Imphal International
Airport, Imphal, Manipur
December, 2021
5 Andhra Pradesh
Med Tech Zone Ltd
(AMTZ)
Centre for EMI/EMC &EST
Centre for Biomaterials Testing
Centre for 3D Design &Rapid
Prototyping
Centre for Gamma
Vishakapatnam, Andhra Pradesh
Completed
6 Tamil Nadu Trade
promotion
organisation
(TNTPO)
Expansion of Chennai Trade Centre
Tamil Nadu, Chennai, Tamil Nadu
February, 2022
7 Madhya Pradesh
State Tourism
Development
Corporation
Establishment of Trade Promotion
centre at Minto Hall, Bhopal, Madhya
Pradesh
Completed
8 HLL Medipark Ltd.
(asubsidiary of HLL
Lifecare Ltd)
Setting up of EMI/EMC Lab for
Medical Technology at Chengalpattu,
Tamil Nadu
Cancelled
9 Coffee Board Establishment of Laboratory
Infrastructure for Coffee Quality &
Export certification, Bangalore,
Karnataka
Completed
10 Noida SEZ
authority
Establishment of Solid Waste
management system at Noida SEZ,
Uttar Pradesh
Completed
11 Export inspection Establishment of facility for analysis Completed
188
Sl. No. Implementing
Agency Project Name
Expected Date of
Completion
council of origin and authenticity of various
food products, Mumbai
12 Tripura Industrial
Development
Corporation Ltd.
Upgradation of infrastructure at LCS
Muhurighat, Belonia, South Tripura
Muhurighat LCS which is
within 150 yards of the
IBB. The Border Guard of
Bangladesh (BGB) has
objected to construction for
which the project could not
progress further. The issue
has been taken up with
BGB at various levels for
resolution. However,
permission from
Bangladesh is awaited.
13 Export Inspection
Council
Construction of office cum laboratory
complex of export inspection agency
at Visakhapatnam, Andhra Pradesh
December, 2021
14 M.P. Audyogik
Kendra Vikas
Nigam (Indore),
Limited
Establishment of Cold Chain at
Pithampur, SEZ phase II, Madhya
Pradesh
Completed
15 Land Ports
Authority of India
Development of Integrated Check Post
Petrapole: Proposal for construction of
additional truck parking, West Bengal
July 2021
16 Madras EPZ SEZ Revamping of 1 MLD Sewerage
Treatment Plant (STP) at Madras EPZ
SEZ, Tamil Nadu
Completed
17 Madras EPZ SEZ Construction of 2.5 MLD Sewerage
Treatment Plant (STP) at Madras EPZ
SEZ, Tamil Nadu
Cancelled
18 Council for Leather
Exports
Upgradation of Ranitec CETP project,
Tamil Nadu
Completed
19 Advanced Research
School for
Technology and
Product Simulation
(ARSTPS), R&D
wing of Central
Institute of Plastics
Engineering and
Technology
(CIPET)
Common Facilities Centre for Design,
Prototype & Tool Room for
Automobile, Aerospace and
Engineering Clusters’, Chennai, Tamil
Nadu
September, 2021
20 Council of
Scientific and
Industrial Research-
National Physical
Laboratory (CSIR-
NPL)
Production of Certified Reference
Materials – Bharatiya Nirdeshak
Dravya (BND), Delhi
December, 2023
189
Sl. No. Implementing
Agency Project Name
Expected Date of
Completion
21 Manipur Industrial
Development
Corporation
(MANIDCO),
Government of
Manipur
Establishment of Main Exhibition
Building (Phase II) at Trade cum
Permanent Exhibition Centre, Imphal,
Manipur
Completed
22 Gems & Jewellery
Export Promotion
Council (GJEPC)
Establishing Advance Testing
Facilities for Gemstones, Pearls and
Diamonds in Jaipur, Rajasthan
December, 2021
23 Rajasthan Small
Industries
Corporation Ltd,
Government of
Rajasthan
Upgradation/Modernization of Air
Cargo Complex, Jaipur, Rajasthan
Completed
24 Chandigarh
Internatoinal
Airport Ltd
(CHIAL),
Chandigarh
Setting up of Centre for Perishable
Cargo at Chandigarh International
Airport, Chandigarh
July, 2021
25 Council for Leather
Exports
Creation of additional 596 KLD
capacity system in Madhavaram
CETP, Tamil Nadu
Completed
26 Creation of additional ZLD capacity in
VISHTEC CETP, Tamil Nadu
March, 2022
27 Common Facility Centre in
Melvisharam, Tamil Nadu
March, 2022
28 Assam Livestock
and Poultry
Corporation
(ALPCO)
Export Oriented Pork Processing Plant
at Nazira, Assam
August, 2021
29 Madhya Pradesh
State Agricultural
marketing board
Establishment of post harvest,
management, storage and market
facility for pomegranate at Khargone,
Madhya Pradesh
March, 2022
30 Jharkhand
Industrial
Infrastructure
Development
Corporation
(JIIDCO)
Construction of World Trade Center,
Ranchi, Jharkhand,
August, 2023
31 Kannur
International
Airport Limited
(KIAL)
Construction of Cargo complex at
Kannur International Airport, Kerala
December, 2021
32 National Institute of
Pharmaceutical
Education and
Research (NIPER),
Quality Assessment & Value Addition
Centre for herbal industry in the North
Eastern states of India, Assam
December 2022
190
Sl. No. Implementing
Agency Project Name
Expected Date of
Completion
Guwahati
33 PSIEC (Punjab
Small Industries &
Export corporation
limited)
Construction of 5 MLD STP with
Tertiary Treatment Plant at IFP
Jalandhar, Punjab
October, 2021
34 PSIEC Upgradation of existing STPs in the
IFPs of Punjab Small Industries &
Export Corporation Limited, Punjab
June, 2022
35 SIPCOT Industrial
Complex (State
industries
promotion
corporation of
Tamil Nadu)
Provision of 3 MLD water supply
system, Tamil Nadu
December, 2021
36 SIPCOT Establishment of Export Trade
Facilitation Centre, Tamil Nadu
August, 2021
37 Bureau of Industrial
Policy &
Promotion, Haryana
Upgradation of Quality Marking
Centre, Faridabad, Haryana
September, 2021
38 Tripura Industrial
Development
Corporation Ltd.
Setting up of Border Haat at Raghna
(Pal Basti), Dharmanagar, North
Tripura, Tripura
January, 2022
39 Tripura Industrial
Development
Corporation Ltd.
Setting up of Border Haat at
Kamalpur, Dhalai, Tripura
January, 2022
40 Textile Committee,
M/o Textiles
Upgradation / strengthening /
Modernization of existing laboratories
of
textiles committee, Mumbai,
Maharashtra
June, 2022
41 Andhra Pradesh
Med Tech Zone Ltd
(AMTZ)
Design, construction and
manufacturing Technetium 99m
Generator (Medical radio-isotope),
Vishakapatnam, Andhra Pradesh
July, 2022
42 AMTZ Establishment of centre for hollow
fibre membrane extrusion for
Hemodialysis,Vishakapatnam, Andhra
Pradesh
March, 2022
43 Spices Board Establishment of Spices Complex in
Sikkim
March, 2024
44 HLL Medipark Ltd.
(a JV of MoHFW,
Government of
India and TIDCO,
Government of
Tamil Nadu)
Setting up of EMI/EMC Testing
Laboratory for Medical Technology
Sector, Tamil Nadu
December, 2022
Source: Department of Commerce, Ministry of Commerce and Industry
191
Annexure II
Details of international/ regional/ country-specific Trade Agreements
that currently in operation Sl.
No. Name of the Trade Agreement
Multilateral Trade Agreement
1. World Trade Organisation (WTO)
Free Trade Agreements (FTAs)
1. India-Sri Lanka Free Trade Agreement
2. Agreement on South Asia Free Trade Area (SAFTA)
3. India-Nepal Treaty of Trade
4. India-Bhutan Agreement on Trade, Commerce and Transit
5. India-Thailand FTA – Early Harvest Scheme (EHS)
6. India-Singapore Comprehensive Economic Cooperation Agreement (CECA)
7. India-ASEAN Comprehensive Economic Cooperation Agreement (CECA)
8. India-South Korea Comprehensive Economic Partnership agreement (CEPA)
9. India-Japan Comprehensive Economic Partnership Agreement (CEPA)
10. India-Malaysia Comprehensive Economic Cooperation Agreement (CECA)
11. India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement
(CECPA)
Preferential Trade Agreements (PTAs)
1. Asia Pacific Trade Agreement (APTA)
2. Global System of Trade Preferences (GSTP)
3. SAARC Preferential Trading Agreement (SAPTA)
4. India-Afghanistan Preferential Trade Agreement (PTA)
5. India-MERCOSUR Preferential Trade Agreement (PTA)
6. India-Chile Preferential Trade Agreement (PTA) Source: Department of Commerce, Ministry of Commerce and Industry
List of Trade Agreements under negotiation Sl.
No. Name of the Trade Agreement
1. India-EU (European Union) Bilateral Trade and Investment Agreements (BTIA)
2. India-Sri Lanka Economic and Technical Cooperation Agreements (ETCA)
3. India-Thailand Comprehensive Economic Cooperation Agreement (CECA)
4. India-EFTA (Iceland, Liechtenstein, Norway and Switzerland) Trade and Economic
Partnership Agreement (TEPA)
5. India-New Zealand FTA/CECA
6. India-Israel Trade Agreement
7. India-Singapore CECA (3rd
review)
8. India-SACU PTA (South Africa, Botswana, Lesotho, Swaziland and Namibia)
9. India-Mercosur PTA expansion (Argentina, Brazil, Paraguay and Uruguay)
10. BIMSTEC CECA (Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and
Nepal)
11. India-Gulf Cooperation Council (GCC) Framework Agreement
12. India-Canada FTA
13. India-Australia CECA
14. India-Malaysia CECA (1st Review)
15. India-ASEAN Trade in Goods Agreement (1st Review)
192
Sl.
No. Name of the Trade Agreement
16. India-Korea CEPA review
17. India-Iran Preferential Trade Agreement (PTA)
18. India-Peru Trade Agreement
19. India-EAEU (Eurasian Economic Union) Technical Consultations
20. India-Bangladesh CEPA
21. India-Chile PTA (2nd
expansion)
22. India-Indonesia CECA Source: Department of Commerce, Ministry of Commerce and Industry
193
Annexure III
Status of Industrial Corridor Projects
PHASE-I
1. Dholera Special Investment Region (DSIR), Gujarat:
DSIR has been planned over an area of approximately 920 sq. km and Phase I
Activation area of 22.5 sq. km has been carved out wherein trunk infrastructure works
are nearing completion;
Government of India I has approved the tender packages for various infrastructure
components amounting to Rs. 2784.82 crore divided into five packages for activation
area;
State Government has transferred44.26sq. km to DICDL (SPV) and matching equity
amounting to Rs. 2551.94 crore has been released;
04 plots measuring 245 acres have been allotted with TATA Chemicals as anchor
investor;
1,290 acres industrial land is readily available for allotment;
Out of the 1000 MW of Solar Park, 300 MW awarded to Tata Solar Power Ltd.;
Further, as part of regional connectivity to DSIR, external connectivity projects of 6-
lane greenfield Expressway from Ahmedabad to Dholera by NHAI, award of
construction packages completed, Dholera International Airport and Bhimnath
Dholera Rail link are being implemented;
NICDIT has approved the inclusion of Mandal-Becharaji Special Investment Region
(MBSIR) covering an area of 102 sq. kms in the state of Gujarat as 2nd node of
DMIC under National Industrial Corridor Programme.
2. Shendra Bidkin Industrial Area (SBIA), Maharashtra
Part I of SBIA covers an area of 40.2 sq. km;
State Government has transferred entire 8.39 sq kms for Shendra Industrial Area and
28.8 sq. kms for Bidkin Industrial Area to the SPV. Matching equity amounting to Rs.
602.80 crore and 2397.20 crore respectively has also been released;
For Shendra Industrial Area, GoI has approved the tender packages for various
infrastructure components for Rs. 1533 crore. Major trunk infrastructure packages
have been completed;
Hon’ble Prime Minister has dedicated the project to the nation on 7th
September,
2019;
For Shendra, land allotment policy has been finalized and 93 plots admeasuring 310
acres have been allotted including one to HYOSUNG (100 acres) as the anchor
investor. 09 companies have started their commercial operations as well;
For Bidkin Industrial Area, GoI has approved the infrastructure packages worth Rs.
6414.21 crore to be developed in 3 phases. The trunk infrastructure works for Sector
A (10.32 sq. km) are nearing completion;
1,350 acres industrialland is readily available for allotment in SBIA.
3. Integrated Industrial Township Project, GreaterNoida, Uttar Pradesh
Land admeasuring 747.5 acres has been transferred to the SPV of the project and
matching equity amounting to Rs. 617.20 crore has also been released;
194
Government of India has approved the tender packages for various infrastructure
components amounting to Rs. 1,097.5 crore. Major trunk infrastructure works have
been completed;
Land allotment policy has been finalized and 05 plots admeasuring 153.89 acres have
been allotted with HAIER (123.7 acres) as the anchor investor;
170 acres Industrial Land is readily available for allotment.
4. Integrated Industrial Township ‘Vikram Udyogpuri’ Project, Ujjain, Madhya
Pradesh
State Government has transferred 1026 acres land to the SPV and matching equity
amounting to Rs. 55.93 crore has also been released;
Government of India has approved the tender packages for various infrastructure
components amounting to Rs. 749.1 crore. Major trunk infrastructure works have
been completed;
Land allotment policy has been finalized and 04 plot admeasuring 31 acres with
AMUL as anchor investor;
450 acres of Industrial Land is readily available for allotment.
5. Integrated Multi Modal Logistics Hub (IMLH) at Nangal Chaudhary, Haryana
Project approved by Government of India in May, 2018;
Land admeasuring approx. 886 acres has been identified in District Mahendergarh for
the project and 686 acre has been transferred to project SPV and matching equity
amounting to Rs. 208.05 crore has been released by NICDIT;
Approximately 158 acres land is under litigation and matter is pending with Hon’ble
High Court of Punjab and Haryana. State Government has been requested to get this
resolved at the earliest. Next date of hearing is 13th
October, 2021;
For external connectivity works related to water, power & road, State Government
agencies have initiated works on deposit basis;
25 acres to be acquired by DFCCIL under Railways Act for providing connectivity
and further, DFCCIL will be executing works for external rail connectivity upto
project site on deposit basis. Tender preparation works for internal rail siding is
underway.
PHASE II
1. Dighi Port Industrial Area (DPIA), Maharashtra
In Jan, 2021, State Government confirmed availability of 2,402 Ha (5,935 acres) of
land out of which 1,466 Ha (3,622 acres) is in possession of State Government;
Detailed Master planning and preliminary engineering works for the land parcels
underway.
2. Krishnapatnam node in Andhra Pradesh
Out of 12,798 acres, detailed master planning and preliminary engineering activities
for an area of 2,500 acres as Activation Areahave been completed;
Project was approved by GoI on 30th December, 2020;
State Government has transferred 1814.51 acres land to SPV and matching equity
amounting to Rs. 453.22 crore has been released;
EPC tendering works for implementation of trunk infrastructure is being taken up.
195
3. Tumakuru node in Karnataka
Out of 8,483 acres, detailed master planning and preliminary engineering activities for
an area of 1,736 acres as Activation Area has been completed;
Project was approved by GoI on 30th December, 2020;
State Government has transferred 1668.30 acres land to SPV and matching equity
amounting to Rs. 586.74 crore has been released;
Bids received for EPC tender for appointment of contractor for implementation of
trunk infrastructure are under evaluation.
4. Ponneri node in Tamil Nadu
Consultant appointed in Oct 2020 for carrying out Detailed Master Planning and
Preliminary Engineering for an area of 4,000 acres;
In May, 2021, state Government has informed that approx. 3,375 acres is available
and has been notified for Ponneriindustrial area.
5. Raghunathpur, 2,483 acres in West Bengal
Detailed Master Planning has been completed and activities related to Environmental
Clearance for the project is underway;
As per the latest communication received from WBIDC dated 22nd June, 2021, the
project is on hold pending clarity about funding strategy of EDFC from Sonnagarto
Dankuni.
6. Hyderabad Warangal Industrial Corridor (HWIC):
NICDIT approved in Aug, 2020 the proposal of inclusion of Hyderabad Warangal
Industrial Corridor in the state of Telangana;
State Government has prepared master-planning and cost estimates for Hyderabad
Pharma Cityunder Hyderabad-Warangal Industrial Corridor in the State of Telangana;
For Pharma City project, State Government to confirm regarding their participation
with GoI for development of the project.
7. Multi Modal Logistics Hub (MMLH) at Dadri and Multi Modal Transport Hub
(MMTH) at Boraki in Greater Noida, Uttar Pradesh
Projects approved by GoI in Dec, 2020;
Out of total land area required for MMLH and MMTH of 479 Ha, 369 Ha already
under possession of GNIDA and ~84 Ha land parcels being acquired by GNIDA
through LARR Act. Further, ~23 Ha of land to be acquired by DFCCIL/NCR under
Railways Act;
227.48 Ha land transferred to Project SPV and matching equity amounting to Rs.
853.05 crore has been released by NICDIT;
For MMLH - DPR works for external Rail Siding connectivity underway;
For MMTH – Final Project report along with updated ESP submitted to North Central
Railway (NCR) and other stakeholders. General Consultant for the project being
appointed.
8. Multi Modal Logistic Park (MMLP) at Sanand, Gujarat
State Government in November, 2020 confirmed availability of 199 Ha of land and
shared the tentative valuation of land in Feb, 2021 based on which viability of the
project has been assessed;
196
Techno-Economic Feasibility report shared with State Government in June, 2021;
Response from State Government is awaited for moving ahead in the project.
PHASE III
1. Jodhpur Pali Marwar Industrial Area (JPMIA), Rajasthan
State Government on 12th
October, 2020 informed that Development Plan of JPMIA
has been notified as Special Investment Region (SIR);
Consultant appointed for detailed master planning and preliminary engineering in
March 2021 for an area of 2659 Ha for development in two phases;
700 Ha out of 1459 Ha (Phase I) area is in possession of State Government
2. Ponneri node in Tamil Nadu
Consultant appointed in October, 2020 for carrying out Detailed Master Planning
and Preliminary Engineering for an area of 4,000 acres;
In May, 2021, state Government has informed that approximately 3,375 acres is
available and has been notified for Ponneri industrial area.
3. Palakkad node in Kerala
Land area of 1,878 acres has been identified and notified by State Government and
acquisition process underway;
Consultant has been appointed for detailed master planning and preliminary
engineering in September, 2020.
4. Dharmapuri nodein Tamil Nadu
Land area of 1,773 acres has been identified by State Government;
Consultant has been appointed for detailed master planning and preliminary
engineering in September, 2020.
5. Khurpia Farms, 1,002 acres in Uttarakhand State Government in Aug, 2020 confirmed the availability of 1002 acres land for the
project;
Consultant for carrying out Detailed Master Planning and Preliminary Engineering
activities has been appointed in Jan, 2021 and works are under progress.
6. Hisar, 1,605 acres in Haryana
State Government in Dec, 2020 confirmed the availability of 1605 acres land for the
project;
Consultant for carrying out Detailed Master Planning and Preliminary Engineering
activities has been appointed in Feb, 2021 and works are under progress.
7. Chittoor Node:Consultants have been appointed for preparation of detailed master
planning & preliminary engineering for 8,967 acres and works are under progress.
8. Kadappa Node: Consultants have been appointed for preparation of detailed master
planning & preliminary engineering for 5,076 acres and works are under progress.
9. Visakhapatnam (Nakapalli Cluster, 1,100 acres):State Government is undertaking
project development for this node on its own.
197
PHASE IV
1. Khushkheda Bhiwadi Neemrana Investment Region, Rajasthan
State Government on 12th October, 2020 informed that Development Plan of KBNIR
has been notified as Special Investment Region (SIR);
RIICO (Rajasthan State Industrial Development and Investment Corporation) has
been appointed as Regional Development Authority;
Consultant for detailed master planning and preliminary engineering for an area of
558 Ha has been appointed in April, 2021.
2. Rajpura-Patiala, 1,100 acres in Punjab
State Government in Feb, 2021 confirmed the availability of 1100 acres land for the
project;
Consultant for carrying out Detailed Master Planning and Preliminary Engineering
activities has been appointed in Feb, 2021 and works are under progress.
3. Agra, 1,059 acres in Uttar Pradesh
State Government in Jan, 2021 confirmed the availability of 1059 acres land for the
project;
Consultant for carrying out Detailed Master Planning and Preliminary Engineering
activities being appointed by end of July, 2021;
4. Gaya, 1,670 acres in Bihar
State Government in March, 2021 confirmed the availability of 1670 acres land for
the project;
Consultant for carrying out Detailed Master Planning and Preliminary Engineering
activities to be appointed shortly.
5. Jharkhand
State Government in Jan 2021 has informed that the earlier site at New Bahri is not
available therefore an alternate site is being identified. Confirmation on the land
details of alternate site is awaited;
NICDIT approved the inclusion of BaddiBarotiwalaNalagarh (BBN) area (2000
acres) in the state of Himachal Pradesh as an industrial node under AKIC & to initiate
the project development activities for establishment of IMC.
6. Bengaluru Mumbai Industrial Corridor (BMIC) A. Government of Karnataka in Jan, 2021 confirmed the 6,400 acres of land available for
development of industrial node at Dharwad. Project development activities have been
initiated for the said node. Consultant being appointed for Detailed Master Planning
and Preliminary Engineering by end of July, 2021;
B. Government of Maharashtra in March, 2021 has confirmed the availability of 5,000
Ha land at Satara for development of industrial node. Tender document for selection
of consultant for Detailed Master Planning and Preliminary Engineering was issued in
May, 2021. Consultant is likely to be appointed by August, 2021.
7. Hyderabad Bengaluru Industrial Corridor (HBIC): NICDIT approvedin Aug, 2020 the inclusion of HBIC and priority node at Orvakal in
the state of Andhra Pradesh;
198
Consultant for Detailed Master Planning and Preliminary Engineering for Orvakal
node, 9,800 acres (Andhra Pradesh) has been appointed in January, 2021.
8. Odisha Economic Corridor (OEC) Project: NICDIT approved in Aug, 2020 the inclusion of OEC and project development
activities initiated for two priority nodes, namely,
Gopalpur – Bhubaneswar – Kalinganagar (GBK node) and Paradip – Kendrapada –
Dhamra – Subarnarekha (PKDS node);
Consultant appointed for detailed master planning and preliminary engineering for
GBK and PKDS nodecomprising of total area of 11,366 acres.
9. Delhi Nagpur Industrial Corridor (DNIC) Delhi Nagpur Industrial Corridor has been conceptualized along the North-South
Corridor of DFC. The proposed Industrial Corridor will leverage on the existing NH
network and the future North-South DFC;
Tender has been issued for selection of consultant for preparation of Perspective Plan
for overall DNIC region in July, 2021.
199
Annexure IV
Details of 106 products and 103 District identified under the One
District One Product programme
Sl.
No State District Product
1 Andhra Pradesh Chittoor Srikalahasti Kalamkari
2 Andhra Pradesh Guntur Chilli
3 Andhra Pradesh Visakhapatnam Araku Coffee
4 Andhra Pradesh East Godavari Coir and Coir Products
5 Andhra Pradesh Sri PottiSriramulu
Nellore
Udayagiri Wooden Cutlery
6 Andhra Pradesh Srikakulam Pharmaceutical products
7 Arunachal Pradesh West Kameng Arunachal Orange
8 Assam Sonitpur Tezpur Litchi
9 Assam KarbiAnglong Ginger
10 Assam Kamrup Muga Silk
11 Assam Dibrugarh Assam Tea
12 Bihar Bhagalpur Bhagalpur Silk
13 Bihar Sitamarhi Sikki Grass Products
14 Bihar Muzaffarpur Shahi Litchi
15 Chhattisgarh Bastar Bastar Iron Craft
16 Goa South Goa Feni
17 Goa North Goa Cashew Nuts
18 Gujarat Chhota Udaipur Sankheda Furniture
19 Gujarat Surendranagar Tangaliya Shawl
20 Gujarat Jamnagar JamnagariBandhani
21 Gujarat Bharuch Chemicals
22 Gujarat Anand Dairy Products
23 Haryana Faridabad Auto Components
24 Haryana Panipat Handloom & Textiles
25 Himachal Pradesh Kangra Kangra painting
26 Himachal Pradesh Kangra Kangra tea
27 Himachal Pradesh Kullu Shawl
28 Himachal Pradesh Kinnaur HimachaliChulli oil (apricot
oil)
29 Himachal Pradesh Solan Mushrooms
30 Jammu and Kashmir Kupwara Walnuts
31 Jammu and Kashmir Budgam Kani Shawl
32 Jammu and Kashmir Kishtwar Saffron
33 Jammu and Kashmir Pulwama Pencil
34 Jammu and Kashmir Srinagar Papier Machie
35 Karnataka Haveri ByadagiChilli
36 Karnataka Chikkaballapur Bangalore Rose Onion
200
Sl.
No State District Product
37 Karnataka Chitradurga LED Lights
38 Karnataka Koppal Plastic & Electronic Toys
39 Karnataka Ramanagara Channapatna Toys
40 Karnataka Mysuru Integrated Circuit Boards &
Capacitors
41 Karnataka Gulbarga Electronics
42 Karnataka Bengaluru Rural Machine Tools
43 Kerala Wayanad Wayanad Robusta Coffee
44 Kerala Kannur Monsoon Malabar Arabica
Coffee
45 Kerala Kozhikode Malabar Pepper
46 Kerala Idukki MarayoorJaggery
47 Kerala Ernakulam Vazhakulam Pineapple
48 Kerala Alappuzha Coir Products
49 Ladakh Leh Seabuckthorn
50 Ladakh Kargil Pashmina Shawl
51 Madhya Pradesh Indore Leather Toys of Indore
52 Maharashtra Kolhapur KolhapuriChappal
53 Maharashtra Solapur Solapur Terry Towel
54 Maharashtra Nashik Nashik Valley Wine
55 Maharashtra Satara Mahabaleshwar Strawberry
56 Maharashtra Sangli Sangli Turmeric
57 Maharashtra Ratnagiri Alphonso Mangoes
58 Maharashtra Pune Purandhar Fig
59 Maharashtra Jalgaon Banana
60 Manipur lmphal East WangkheiPhee
61 Meghalaya West Jaintia Hills Turmeric
62 Meghalaya Ri-Bhoi Pineapple
63 Mizoram Siaha Mizo Chilli
64 Nagaland Kohima Naga Mircha
65 Odisha Koraput Kotpad Handloom fabric
66 Odisha Ganjam Ganjam Kewda Rooh
67 Odisha Kandhamal KandhamalHaldi
68 Odisha Sundargarh Steel
69 Punjab Patiala Phulkari
70 Punjab Jalandhar Sports Goods
71 Punjab Ludhiana Readymade Garments
72 Punjab Fatehgarh Sahib Re-rolled steel ingots
73 Rajasthan Jaipur Blue Pottery
74 Rajasthan Nagaur Makrana Marbles
75 Sikkim West Sikkim Sikkim Large Cardamom
201
Sl.
No State District Product
76 Tamil Nadu Kancheepuram Kanchipuram Silk
77 Tamil Nadu Coimbatore Coimbatore Wet Grinder
78 Tamil Nadu Tiruchirappalli East India Leather
79 Tamil Nadu Salem Salem Silk
80 Tamil Nadu Nilgiris Nilgiri Tea
81 Tamil Nadu Dindigul Dindigul Locks
82 Tamil Nadu Dindigul MalaiPoondu (Garlic)
83 Tamil Nadu Dharmapuri Auto components
84 Tamil Nadu Vellore Leather cluster
85 Tamil Nadu Tiruvallur Tools industry
86 Tamil Nadu Virudhunagar Sivakasi Crackers
87 Telangana Warangal Warangal Durries
88 Telangana Adilabad Nirmal Toys
89 Tripura Dhalai Queen Pineapple
90 Uttar Pradesh Azamgarh Black Pottery
91 Uttar Pradesh Bhadohi Carpet
92 Uttar Pradesh Bulandshahr Ceramic Products
93 Uttar Pradesh Firozabad Glassware
94 Uttar Pradesh Ghazipur Jute Wall Hangings
95 Uttar Pradesh Kannauj Itra (Scents)
96 Uttar Pradesh Lucknow Zari-Zardozi
97 Uttar Pradesh Lucknow Chikankari
98 Uttar Pradesh Mirzapur Carpet
99 Uttar Pradesh Moradabad Metal Craft
100 Uttar Pradesh Saharanpur Wood Craft (Wood Carving)
101 Uttar Pradesh Kanpur Nagar Leather Product
102 Uttar Pradesh Farrukhabad Textile Printing
103 Uttar Pradesh Varanasi Silk Products
104 Uttar Pradesh Meerut Scissors
105 Uttarakhand Dehradun Wellness Centres
106 West Bengal Darjeeling Darjeeling Tea
Source: Department for Promotion of Industry and internal Trade, Ministry of Commerce and
Industry
202
Annexure V
Details of rail projects that were completed between 2014-15 and 2020-21
in North Eastern Region Sl.
No. Name of project Length (km) Remarks
NEW LINE
1. Dudhnoi to Mendipathar 19.75 Meghalya state got connected
with Indian railways network
2. Harmuti to Naharagun 21.75 Capital connectivity upto
Itanagar (Arunachal Pradesh)
3 Kumarghat-Agartala New
Line
109 Capital connectivity upto
Agartala (Tripura)
4 Katakhal-Bhairabi New Line 84 Mizoram state got connected
by Broad Gauge rail line after
completion of this project.
5 Bogibeel Rail-cum-Road
Bridge New Line
92 This national project has
reduced the travel time
between Naharlagun
(Itanagar) and Dibrugarh
from 24 hrs to 5 hrs and
reduced the road distance
from Dibrugarh to Itanagar
by 105 km.
6 Agartala- Sabroom New Line 112 National project in Tripura.
GAUGE CONVERSION
1 Rangia-Murkongselek 510
2 Lumding- Badarpur- Silchar,
Arunachal- Jiribam &
Badarpur- Kumarghat GC
(378 km) & MM for GC of
Baraigram- Dulabchera (29.40
km), Karimganj-Maishashan
&
Karimganj bypass line (13.5
km) (Total- 420.90 km)
412
DOUBLING
1 Lumding-Hojai Doubling 44.92 Source: Ministry of Railways
203
Annexure- VI
Status of project under Bharatmala Pariyojana Phase- I
Classification
Construction
Completed Awarded
Approved –Yet to
be Awarded
Overall Awarded
& Approved
Projects
Project
Length (km) Projects
Project
Length
(km)
Projects
Project
Length
(km)
Projects
Project
Length
(km)
Economic
Corridor 1,288 162 4,935 20 642 182 5,577
Inter Corridor
Route 345 41 1,613 10 323 51 1,936
Feeder Route 99 13 418 5 191 18 609
National
Corridor 574 51 1,329 3 140 54 1,469
NEIP 287 25 705
25 705
Expressways 350 61 1,746 14 372 75 2,118
Border Roads 1,071 14 1,282
14 1,282
Coastal Roads 27 2 77
2 77
Port
Connectivity 9 3 78 2 17 5 95
NHDP 1,914 110 4,980 4 24 114 5,004
Terminated - 14 561
Grand Total 5,963 496 17,724 58 1,708 540 18,870
Source: Ministry of Road Transport and Highways
204
Annexure-VII
Status of 40 Port Connectivity Projects being implemented by NHLML
through NHAI
Sl.
No.
State
Project Stretch
Name of
Port/IWT
Terminal
Length
(km) Status
Expected
Award
1 Andhra
Pradesh
Anchorage Old Port
Kakinada to Achampeta
Junction
Kakinada Port 13.195 Bids
Invited
September,
2021
2
Andhra
Pradesh
Road Connectivity From
Outer Harbour To Port
Connectivity Junction (B)
at Vizag port i.e., Port
connectivity road (four
lane) from East Break
Water to Convent Junction
(2 Phases)
Vizag.
3.488
(Phase -I)
0.470
(Phase-
II)
Bids
Invited
October,
2021
Phase-1
From End of VPT road
(under construction)] and
ends at VCTPL exit gate
(Out gate) i.e. from Km.
0.312 to Km 3.800.
Vizag. 3.488 October,
2021
Phase-2 From Km.3.800 (VCTL
Exit gate) to Km.4.250 Vizag. 0.47
October,
2021
3 Andhra
Pradesh
2 to 4 laning of road
connecting Kakinada
port to NH 16 at
Rajanogaram in
Godavari District
(Samalkota to
Achampeta junction)
Kakinada Port 12.5 DPR in
progress
January,
2022
4 Andhra
Pradesh
Four lane Green field
road connecting North
& South Industrial
cluster of Khandaleru
creek near
Krishnapatnam port at
Thamminapatnam to
Mollur and extension
of Dedicated port road
on NH-67 in the state
of Andhra Pradesh
from 18 km to 19.300
(Pkg III)
Krishnapatnam 17.346
DPR
complete
d
January,
2022
205
Sl.
No.
State
Project Stretch
Name of
Port/IWT
Terminal
Length
(km) Status
Expected
Award
5 Andhra
Pradesh
6 lane road to
Krishnapatnam Port
from Naidupeta in AP
(Pkg-IV)
Krishnapatnam 34.864
DPR
complete
d
January,
2022
6 Andhra
Pradesh
4 laning of Kakinada
Anchorage Port
Uppada beach road
connecting NH-16 in
East Godavari District
Kakinada
Anchorage
Port
40.319
Bids
likely to
be issued
shortly
December,
2021
7
Andhra
Pradesh
Construction of 4-
laning of Chilakaru
cross road to Turpu
Kanupuru, Km.0.00 to
(Km.131.500 of NH-
16) to Km.23.717
including flyovers &
approaches on NH-16
(1.05 Km)
and 6-laning of Turpu
Kanupuru to Port
South Gate from
Km.0.00 to Km.11.245
Pkg - II
Krishnapatnam 36.065
DPR
complete
d
December,
2021
8
Andhra
Pradesh
Improvement/upgradati
on of four lane road to
six lane road for the
port connectivity road
from East Breakwater
to Sheela Junction
Vizag. 11 DPR in
progress
January,
2022
9
Andhra
Pradesh
Improvement works for
Visakhapatnam Port
Road
Vizag. 11 DPR in
progress
January,
2022
10
Andhra
Pradesh
4 laning of road from
Nellore city to
Krishnapatnam port to
NH 5
Krishnapatnam 24 DPR in
progress
March.
2022
11
Andhra
Pradesh
Development of coastal
4 lane highway port
connectivity project
connecting Vizag port
terminal with NH16 to
Bhogpuram via
Rishikonda and
Bheemili
Vizag. 65 DPR in
progress
December,
2021
206
Sl.
No.
State
Project Stretch
Name of
Port/IWT
Terminal
Length
(km) Status
Expected
Award
12
Andhra
Pradesh
Development of Fly
over bridge from Sea-
horses junction area to
dock area at Vizag Port
Vizag. 3 DPR in
progress
January,
2022
13
Andhra
Pradesh
Construction of flyover
/ under pass at Vizag
airport junction to
ensure flow of
container trailers
to/from MMLP setup
at NH-16
Vizag. 5 DPR in
progress
January,
2022
14 Karnataka
Road connectivity from
Kasarkad side of
Honnavar Port to NH
Honnavar 4 Bids
Invited
September,
2021
15 Karnataka
Yekkambi-Haveri
(Sirsi-Yekkambi-
Haveri)
Belekeri 75 DPR in
progress
January,
2022
16 Karnatak a
By pass road from NH
to Belekeri Port and
road connectivity from
Harwada to Belekeri
Belekeri 7 DPR in
progress May, 2022
17 West Bengal
Double Lane to 4 Lane
road connecting Haldia
Multi Modal Terminal
and NH-116 (National
Waterway-1)
Haldia MIT 6 DPR in
progress
March,
2023
18 West Bengal
Two Lane to Four lane
road connecting
Kolaghat to NH-41
(national Waterway-
86)
Kolaghat 4 DPR in
progress
March,
2023
19 Odisha
Construction of bypass
road from NH-16 to
Gopalpur port
Gopalpur 12 DPR in
progress
March,
2022
20 West Bengal
Improvement of existing
road connecting Kolkata
Port Trust to NH6 and
Kolkata Port Trust to
nearly industrial
Clusters
Kolkata 6 DPR in
progress
Proposal is
likely to be
dropped
21 Kerala
Development of river
side port road to
Beypore port
Beypore 2 DPR in
progress
March,
2023
207
Sl.
No.
State
Project Stretch
Name of
Port/IWT
Terminal
Length
(km) Status
Expected
Award
22 Kerala
Azhikkal Port -
Proposed NH – Bypass
and widening of 2 km.
Azhikkal 13 DPR in
progress
March,
2023
23 Kerala
Widening of road
connecting from Kollam
port to NH
Kollam 3 DPR in
progress
March,
2023
24 Kerala
Road from
Payikulangara to
Alappuzha bypass
Kochi 14 DPR in
progress
March,
2023
25 Kerala
Road from SH-
Alappuzha bypass
intersection
Kochi 12 DPR in
progress
March,
2023
26 Kerala
Road from Fort Vypin
to Matysyafed Tourist
Office
Kochi 9 DPR in
progress
March,
2023
27 Kerala
Road from Mudhiyam
beach to Madhura
bazaar
Beypore 12 DPR in
progress
March,
2023
28 Kerala Road from Madhura
bazaaar to Chullikad Beypore 10
DPR in
progress
March,
2023
29 Kerala
Beypore road
connectivity to
Malaparamab beach
Beypore 18 DPR in
progress
March,
2023
30 Kerala Road from Azhikkal to
Puthuvalappu Azhikkal 14
DPR in
progress
March,
2023
31 Kerala Road from Payyabalam
to Azhikkal Azhikkal 12
DPR in
progress
March,
2023
32 Bihar
Double Lane to-4 Lane
road connecting
Gaighat Jetty and NH-
19/82 (National
waterway-1)
Gaighat Jetty 2
DPR yet
to be
awarded
July, 2022
33 Gujarat Trapaj - Manar Alang 6
DPR yet
to be
awarded
May, 2022
34 Tamil
Nadu
Development of dedicated
Container Corridor to
NHAI road for quick
evacuation, Chennai
Chennai 8
Port Connectivity to
Gate no.1 has already
been provided in Port
35
Tamil
Nadu
Connectivity to Katupalli
through Ponnani Katupalli 20
Part of Chennai
Peripheral Road being
taken by Government
of Tamil
208
Sl.
No.
State
Project Stretch
Name of
Port/IWT
Terminal
Length
(km) Status
Expected
Award
36 Tamil
Nadu
Development of roads
connectivity to Cuddalore
Port - Sirkazhi Port
Cuddalore 10
DPR yet to
be
awarded
May, 2022
37 Tamil
Nadu
Road connectivity from
Cuddalore port to NH-45A
with RC over bridge
Cuddalore 3
DPR yet to
be
awarded
May, 2022
38 Tamil
Nadu
4 to 6 laning of NH-45B &
NH-7A Tuticorin 12
DPR yet to
be awarded May, 2023
39 Telangana
Two lane to Four Lane
road connecting
Ibrahimpatnam and NH-
65/30 (National Waterway
4)
Ibrahimpatnam 1 DPR yet to
be awarded May, 2023
40 Uttar Pradesh
Double lane road
connecting Varanasi Multi
Modal Terminal and NH-7
with elevated merging at
NH Intersection (National
Waterway-1)
Varanasi MMT 1
DPR yet to
be
awarded
May, 2023
Source: Ministry of Road Transport and Highways
209
Annexure-VIII
Status of 35 Multi Modal Logistics Parks Projects Sl.
No Location Current Status Target Date of Completion
1. MMLP
Guwahati at
Jogighopa
NHIDCL has been entrusted with the work of the
development of the MMLP at Jogighopa and the
foundation stone of the project was laid in Oct 2020 by
Hon’ble Minister (RTH) in presence of the Hon’ble
Chief Minister of Assam.
The Govt. of Assam has allocated 190 Acres of land
belonging to Ashok Paper Mill (APM).
The SPV “Jogighopa Logistics Park Limited” has been
incorporated in February 2021
MoRT&H sanctioned Rs. 693.97 Crore for the project
Three Key components of the Project:
190 acres of Multi Modal Logistics Park at Ashok Paper
Mill site.
External Road and Rail connectivity to the Logistics
Park and Inland water terminal.
40 acres of Inland water terminal (IWT), which shall be
run by IWAI. The implementation of the same has been
entrusted to NHIDCL as ‘Deposit work’.
The package wise status is given below:
Package-I: All internal roads & road connectivity
between NH & IWT and MMLP & IWT at the cost of
Rs 165.94 Cr has been awarded. Work commenced on
30.09.2020 with Physical progress as 14.75% and
financial progress as 11.23% (as on 13.07.2021).
Package-II: Administrative building, custom building,
utility, sewage treatment plant and water plant at the cost
of Rs 80.07 Cr has been awarded. Work commenced on
30.09.2020 with Physical progress as 28.57% and
financial progress as 27.37% (as on 13.07.2021).
Package-III: Bids for Rail connectivity and sidings in a
length of 3.760 Km from Jogighopa Railway Station to
MMLP at the cost of Rs 21.85 Cr have been awarded.
Work commenced on 01.12.2020 with Physical progress
as 0.33% (as on 13.07.2021) and financial progress as
0%.
IWT: The work is a ‘deposit work’ of IWAI. Approval
of Final DPR has been obtained from IWAI for Rs 70.92
Crore (including centages) in respect of Phase-IA
comprising of Capital Cost of Site Development, One
Jetty, Approach Trestle, Shore Protection Work, Storage
Areas, Building, Utilities and Others. Bid for
construction of Inland Water Transport (IWT) Terminal
has been invited with bid due date as 05.04.2021 (first
call). Due to non receipt of bids the bids have been re-
invited for construction of Inland Water Transport
66 acres of storage space &
handling capacity of 5.2
MTPA out of 112 acres in
Phase-1 has been proposed to
be undertaken,
Construction Period will be 2
years
210
Sl.
No Location Current Status Target Date of Completion
(IWT) Terminal with bid due date as 10.06.2021 and
financial bids of technically responsive bidders were
opened on 02.07.2021. Due to the lowest quote being on
higher side the financial quotes were forwarded to IWAI
on 07.07.2021 for approval as this is the deposit work of
IWAI. The matter is under consideration of IWAI.
2. Nagpur Feasibility completed for MMLP including DPR for
External Road Connectivity
Execution of Rail Connectivity works is being
undertaken by JNPT and is in progress.
RFP is expected by August
2021
Being proposed on DBFOT
mode with operation of 1st
phase within two years from
Appointed Date, target for
completion is May 2024.
3. Chennai Feasibility study for MMLP completed except DPR
for Rail Connectivity, which is in progress.
RFP is expected by August
2021.
Being proposed on DBFOT
mode with operation of 1st
phase within two years from
Appointed Date, target for
completion is May 2024.
4. Bangalore Feasibility Report under preparation
Land acquisition is being undertaken by the State
Government
RFP is expected by Dec. 2021.
Target for completion for 1st
Phase is Dec. 2024.
5. Indore Feasibility study in progress RFP is expected by Dec. 2021.
Target for completion for 1st
Phase is Dec. 2024.
6. Mumbai Feasibility study in progress
Land parcel is being identified.
Completion date cannot be
ascertained at this juncture.
7. Hyderabad DPR Work Awarded Feasibility is targeted for
completion by January 2022.
RFP by March 2022.Target for
completion for 1st Phase is
March 2025
8. Coimbatore DPR Work Awarded Feasibility is targeted for
completion by January 2022.
RFP by March 2022. Target for
completion for 1st Phase is
March 2025.
9. Pune Bids for feasibility study received and are under evaluation Feasibility is targeted for
completion by February 2022.
RFP by April 2022. Target for
completion for 1st Phase is
April 2025
10. Surat Feasibility study is in progress
Completion date cannot be
ascertained at present.
11. Delhi-NCR Pre-feasibility study is in progress Prefeasibility study is expected
to be completed by August
211
Sl.
No Location Current Status Target Date of Completion
2021. Based on viability, after
completion of prefeasibility
study, feasibility/DPR study
will be taken up. Hence
completion date cannot be
ascertained at this stage.
12. North
Gujarat
Pre-feasibility study is in progress -do-
13. Jaipur Pre-feasibility study is in progress -do-
14. Kolkata Pre-feasibility study is in progress -do-
15. Ambala Pre-feasibility study is in progress -do-
16. Jagatsinghp
ur
Pre-feasibility study is in progress -do-
17. Nashik Pre-feasibility study is in progress -do-
18. Kota Pre-feasibility study is in progress -do-
19. Panaji Pre-feasibility study is in progress -do-
20. Hisar Pre-feasibility study is in progress -do-
21. Visakhapatn
am
Pre-feasibility study is in progress -do-
22. Bhopal Pre-feasibility study is in progress -do-
23. Sundargarh Pre-feasibility study is in progress -do-
24. Bhatinda Pre-feasibility study is in progress -do-
25. Solan Pre-feasibility study is in progress -do-
26. Rajkot Pre-feasibility study is in progress -do-
27. Raipur Pre-feasibility study is in progress -do-
28. Jammu Pre-feasibility study is in progress -do-
29. Kandla Pre-feasibility study is in progress -do-
30. Cochin Pre-feasibility study is in progress -do-
31. Sangrur Based on feasibility studies, MMLP is not feasible. -
32. Ludhiana Based on prefeasibility studies, MMLP is not feasible. -
33. Vijayawada Based on prefeasibility studies, MMLP is not feasible. -
34. Patna Based on prefeasibility studies, MMLP is not feasible. -
35. Valsad Based on prefeasibility studies, MMLP is not feasible. -
Source: Ministry of Road Transport and Highways
212
Annexure IX
Details of the type of training provided by AAICLAS during the last five
years
Sl.
No. Period Title of the Training
Total
Candidates
No. of
Days
Training Imparted to AAICLAS Executives/Non-Executives
1 11.10.2017 -
13.10.2017
AVSEC Cargo (Reg.) Course 20 3
2 27.08.2018 -
29.08.2018
Domestic Cargo Orientation
Programme
16 3
3 22.10.2018 -
26.10.2018
Air Cargo Management 22 5
4 25.02.2019 -
27.02.2019
Domestic Cargo Orientation
Programme
27 3
5 27.05.2019 -
31.05.2019
Air Cargo Management 11 5
6 21.10.2019 -
25.10.2019
Air Cargo Management 19 5
7 20.11.2019 -
22.11.2019
Air Cargo Regulations and
Handling
20 3
8 25.11.2019 -
27.11.2019
Air Cargo Management
(Virtual Mode)
20 3
9 19.08.2020 -
21.08.2020
Air Cargo Management
(Virtual Mode)
20 3
Cargo Warehouse handler at Chennai Air Cargo Complex has conducted
various Trainings
10 2019-20 Cargo Safety & Management
System
480 2
11 Dangerous Goods Awareness 480 2
12 DGR CAT-6 58 6
13 DGR CAT-7&8 174 3
14 Human Factor 174 1
15 Occupational Health & Safety 480 1
16 Emergency Response Plan 480 1
17 Cargo Warehouse Training 170 2
18 Live Animal 55 2
Training Imparted to AAICLAS Security Screener
19 2019 & 2020 AVSEC Inductions 187 5
20 AVSEC Basic Course 232 13
21 AVSEC Refresher Course 422 3
213
Sl.
No. Period Title of the Training
Total
Candidates
No. of
Days
22 Pre-ILBS Certification
Course
865 3
23 Pre-Standalone Certificate
Course
198 3
24 Original Equipment
Manufacturer(OEM)
453 6
25 DGR CAT-12 319 1
26 DGR CAT-6 18 6 Source: Ministry of Civil Aviation
214
Annexure X
Handling Capacity at Major Ports (Value in Million Tonnes)
Port 2016-17 2017-18 2018-19 2019-20 2020-21
SMP Kolkata 78.00 82.57 82.57 82.57 90.77
Paradip 234.00 239.00 239.00 249.00 259.00
Visakhapatnam 121.00 131.09 131.09 134.18 134.18
Kamarajar (Ennore) 66.00 84.00 91.00 91.00 91.00
Chennai 134.00 134.00 134.00 135.00 135.00
V.O.Chidambaranar 79.00 94.83 111.46 111.46 111.46
Cochin 74.00 74.50 78.60 78.60 78.60
New Mangalore 98.00 98.00 98.00 104.73 104.73
Mormugao 63.00 63.00 63.40 63.40 63.40
Mumbai 78.00 79.00 79.00 79.00 84.00
JNPT 88.00 118.00 138.87 138.87 141.37
Deendayal (Kandla) 246.00 253.20 267.10 267.10 267.10
Total 1359.00 1451.19 1514.09 1534.91 1560.61
Source: Ministry of Ports, Shipping and Waterways
Traffic handled at Major Ports (Value in Million Tonnes)
Port 2016-17 2017-18 2018-19 2019-20 2020-21
SMP Kolkata 50.95 57.89 63.76 63.98 61.34
Paradip 88.96 102.01 109.27 112.69 114.55
Visakhapatnam 61.02 63.54 65.30 72.72 69.84
Kamarajar (Ennore) 30.02 30.45 34.49 31.75 25.89
Chennai 50.21 51.88 53.01 46.76 43.55
V.O.Chidambaranar 38.46 36.58 34.34 36.07 31.79
Cochin 25.01 29.14 32.02 34.04 31.51
New Mangalore 39.95 42.05 42.54 39.15 36.50
Mormugao 33.18 26.90 17.68 16.02 21.65
Mumbai 63.05 62.83 60.58 60.70 53.32
JNPT 62.15 66.00 70.70 68.45 64.81
Deendayal (Kandla) 105.44 110.10 115.40 122.49 117.56
Total 648.40 679.37 699.09 704.82 672.61 Source: Ministry of Ports, Shipping and Waterways
Capacity utilization of Major Ports (Value in percent)
Port 2016-17 2017-18 2018-19 2019-20 2020-21
SMP Kolkata 65.32 70.11 77.22 77.49 67.58
Paradip 38.02 42.68 45.72 45.26 44.23
215
Port 2016-17 2017-18 2018-19 2019-20 2020-21
Visakhapatnam 50.43 48.47 49.81 54.20 52.05
Kamarajar (Ennore) 45.48 36.25 37.90 34.89 28.45
Chennai 37.47 38.72 39.56 34.64 32.26
V.O. Chidambaranar 48.68 38.57 30.81 32.36 28.52
Cochin 33.80 39.11 40.74 43.31 40.09
New Mangalore 40.77 42.91 43.41 37.38 34.85
Mormugao 52.67 42.70 27.89 25.27 34.15
Mumbai 80.83 79.53 76.68 76.84 63.48
JNPT 70.63 55.93 50.91 49.29 45.84
Deendayal (Kandla) 42.86 43.48 43.20 45.86 44.01
Total 47.71 46.81 46.17 45.92 43.10
Source: Ministry of Ports, Shipping and Waterways
216
Annexure – XI
Capacity, Traffic and Utilization of Non-Major Ports
Year Capacity (MTPA) Traffic (MT) Capacity Utilization
(%)
2016-17 802.85 485.21 60.44
2017-18 832.19 528.56 63.51
2018-19 863.50 582.59 67.47
2019-20 987.98 614.99 62.25
2020-21 994.00 575.04 57.85 Source: Ministry of Ports, Shipping and Waterways
217
Annexure XII
Container Dwell Time of Major Ports (Value in days)
Name of Major Port Container Dwell Time
2019-2020 2020-2021
Kolkata 5.20 6.90
Haldia 6.30 7.90
Paradip 5.15 9.12
Visakhapatnam 3.60 5.10
Kamarajar 3.29 4.15
Chennai 3.10 3.60
V.O. Chidambaranar 2.56 2.76
Cochin 4.64 5.97
New Mangalore 7.18 10.63
Mormugao 7.22 10.04
Mumbai 3.86 6.73
JNPT 1.62 1.87
Deendayal (Kandla) 5.00 6.00
Overall 2.81 3.49 Source: Ministry of Ports, Shipping and Waterways
Average Turn-Around Time of Major Ports (Value in hours)
Sl. No. Port 2019-2020 2020-2021
1 SMP, Kolkata 101.10 73.14
2 SMP, Haldia 86.88 71.52
3 Paradip 56.09 58.10
4 Visakhapatnam 58.27 66.09
5 Kamarajar 41.89 42.97
6 Chennai 48.01 51.38
7 V O Chidambaranar 44.88 46.08
8 Cochin 34.70 35.83
9 New Mangalore 45.63 45.89
10 Mormugao 62.96 75.66
11 Mumbai 53.25 59.07
12 Jawaharlal Nehru 29.52 28.56
13 Deendayal (Kandla) 61.92 68.64
Total 56.07 Source: Ministry of Ports, Shipping and Waterways
218
Average Pre-Berthing Time of Major Ports (Value in hours)
Sl. No. Port 2019-2020 2020-2021
1 SMP, Kolkata 1.21 0.44
2 SMP, Haldia 24.19 3.18
3 Paradip 15.32 6.20
4 Visakhapatnam 1.22 1.15
5 Kamarajar 0.002 0.004
6 Chennai 0.76 0.82
7 V O Chidambaranar 3.12 3.84
8 Cochin 0.47 0.00
9 New Mangalore 13.33 12.42
10 Mormugao 1.68 3.60
11 Mumbai 0.33 1.26
12 Jawaharlal Nehru 5.04 6.48
13 Deendayal (Kandla) 8.40 15.84
Total 7.23 5.57 Source: Ministry of Ports, Shipping and Waterways
Average Output per Ship per Berth day of Major Ports (Value in tonnes)
Sl. No. Port 2020-2021 2019-2020
1 SMP, Kolkata 3948 4215
2 SMP, Haldia 9153 10121
3 Paradip 23943 25091
4 Visakhapatnam 12865 14901
5 Kamarajar 21326 23421
6 Chennai 15928 16470
7 V O Chidambaranar 15696 15056
8 Cochin 22513 23709
9 New Mangalore 15690 15774
10 Mormugao 12431 13258
11 Mumbai 10694 10993
12 Jawaharlal Nehru 26875 27677
13 Deendayal (Kandla) 14497 16890
Total 15373 16419 Source: Ministry of Ports, Shipping and Waterways
219
Annexure XIII
Details of 23 National Waterways found feasible for Cargo and Passenger
Movement
Sl.
No.
National
Waterway No.
Details of
Waterways States Status
1 National Waterway
1
Ganga-Bhagirathi-
Hooghly River
System (Haldia -
Allahabad)
Uttar Pradesh,
Bihar, Jharkhand
& West Bengal
Development
taken up with
Assistance
from World
Bank Jal
Marg Vikas
Project
2 National Waterway
2
Brahmaputra River
(Dhubri - Sadiya)
Assam Development
taken up as
per approved
SFC for FY
2020-21 to
2024-25
3 National Waterway
16
Barak River Assam
4 National Waterway
3
West Coast Canal
(Kottapuram -
Kollam),
Champakara and
Udyogmandal Canals
Kerala Mostly
Operational
Waterways
and
development
and
maintenance
work taken
up.
5 National Waterway
4
Krishna River
(Vijayawada –
Muktyala)
Andhra Pradesh
6 National Waterway
5
Dhamra-Paradio via
Mangalagadi to
Pankopal
Odisha
7 National Waterway
8
Alappuzha-
Changanassery Canal
Kerala
8 National Waterway
9
Alappuzha-Kottayam
– Athirampuzha
Canal
Kerala
Alternate route:
11.5km
9 National Waterway
27
Cumberjua River Goa
10 National Waterway
68
Mandovi River Goa
11 National Waterway
86
Rupnarayan River West Bengal
12 National Waterway
97
Sunderbans
Waterway
West Bengal
220
Sl.
No.
National
Waterway No.
Details of
Waterways States Status
13 National Waterway
111
Zuari River Goa
14 National Waterway
10
Amba River Maharashtra Work to be
taken
subsequent to
SFC/ EFC
approval.
15 National Waterway
44
Ichamati River West Bengal
16 National Waterway
52
Kali River Karnataka
17 National Waterway
57
Kopili River Assam
18 National Waterway
73
Narmada River Maharashtra &
Gujarat
Substantial
cargo moves
in tidal
waters/ river
mouth under
respective
State
maritime
board. No
interventions
are
contemplated
by IWAI as of
now.
19 National Waterway
83
Rajpuri Creek Maharashtra
20 National Waterway
85
Revadanda Creek -
Kundalika River
System
Maharashtra
21 National Waterway
91
Shastri River – Jaigad
Creek System
Maharashtra
22 National Waterway
94
Sone River Bihar
23 National Waterway
100
Tapi River Maharashtra &
Gujarat
Source: Ministry of Ports, Shipping and Waterways
221
Annexure XIV
Details of Ports Identified for Industrial Development
Source: Ministry of Ports, Shipping and Waterways
Sl.
No. Name of the Port Type of industries preferred to be set up
Land Area
Available (Acres)
1. Shyama Prasad Port
Trust, Kolkata
Light Industries, Chemical Industries, readymade
Garments, Hosiery industries
829
2. Paradip Port Trust,
Odisha
Steel, Food processing industries, Oil Refineries,
Fertilizer plants. Coal based Industries
100
3. Vishakhapatnam Port
Trust, Andhra Pradesh
Food processing industries, Auto industries, Electronic
goods,free trade warehousing zone (FTWZ)
103
4. Chennai Port Trust,
Tamil Nadu
Port and cargo industries like warehouse, cold storage
ICD etc.
121
5. V.O. Chidambaranar Port
Trust, Tamil Nadu
Hosiery industries, Engineering goods, Auto parts 2901
6. Cochin Port Trust, Kerala Warehouse/Logistic Parks 100
7. New Mangalore Port
Trust, Karnataka
Tank farms/CFS, LPG/CNG bottling plants/storage
industries
30
8. Jawaharlal Nehru Port
Trust, Maharashtra
Liquid Storage, Bio-diesel, agro based product, propane
storage and processing, warehouses, cold storage etc.
810
9. Deendayal Port Trust,
Gujarat
Wooden based industries, edible oil refineries, mineral
industries, rice mill, Electronic industries, fertilizer
industries, engineering goods, Auto industries and
Chemical
1566
10. Mumbai Port Trust,
Maharashtra, Mormugao
Port Trust, Goa &
Kamarajar Port Limited ,
Tamil Nadu
Nil
Total Available Port Land 6560
222
Annexure XV
Detail Status of Integrated Check Posts (ICPs)
Sl.
No. Location State Border
Date of
Operationalization Status
1 Attari Punjab Pakistan 13.04.2012 Functional
2 Agartala Tripura Bangladesh 17.11.2013 Functional
3 Petrapole West
Bengal Bangladesh 12.02.2016
Functinal
4 Raxaul Bihar Nepal 03.06.2016 Functional
5 Jogbani Bihar Nepal 15.11.2016 Functional
6 Moreh Manipur Myanmar 15.03.2018 Functional
7 Sutarkandi Assam Bangladesh 07.09.2019 Functional
8 PTB Dera
Baba Nanak** Punjab Pakistan 09.11.2019
Functional
9 Srimantapur Tripura Bangladesh 05.09.2020 Functional ** PTB Dera Baba Nanak: This ICP is sanctioned for passenger facilitation purposes
Status of ICPs under construction
Sl.
No. Location State Border
Current
Status Roadmap
1 Dawki Meghalaya Bangladesh Under
construction
Likely to be
completed by May
2022.
2 Rupaidiha
Uttar
Pradesh
Nepal Under
Construction
Likely to be
completed By
April 2022
Sl.
No. Location State Border
Current
Status Roadmap
1 Sonauli Uttar
Pradesh
Nepal Notification
under Section
3 (G) of NHAI
Act for
compensation
of award to the
land owners
has been issued
on 30.09.2020.
The land is yet
to be
transferred to
LPAI by the
State Govt.
Issue is being
taken up with
Construction work
will commence
once the land is
fully acquired.
Regular
coordination with
all local State
Govt authorities is
being carried out.
223
Sl.
No. Location State Border
Current
Status Roadmap
State Govt.
regularly.
Master Plan
has already
been finalized.
2 Banbasa Uttarakhand Nepal Land has been
identified.
Issue of
notification for
land
acquisition is
under process.
DPR has been
prepared
3 Bhitamore Bihar Nepal Notification for
acquisition of
land has been
issued.
EFC Memo for
financial approval
of project is under
preparation
4 Kawrpui-
chhuah
Mizoram Bangladesh 21.5 acre of
land has been
given on lease
by State
Government to
LPAI. Request
for transfer of
additional 35
acre of land is
under
consideration
of State
Government.
EFC Memo for
financial approval
of project is under
preparation.
Pre-construction
activities have
been initiated.
Architect
consultant has
been appointed.
5 Jaigaon West Bengal Bangladesh Land
acquisition is
being initiated
under the
guidelines of
Kolkata
Gazette issued
Detailed Project
Report (DPR) is
being prepared for
all locations.
6 Panitanki
7 Ghoja-danga
8 Mahadipur
9 Fulbari
10 Hili
224
Sl.
No. Location State Border
Current
Status Roadmap
11 Changra-
bandha
by the West
Bengal
government for
Central
Government
and its
organization
12 Sabroom Tripura Bangladesh Approved as
standalone
project in
October 2020.
Land
acquisition is
at an advanced
stage and
likely to be
completed by
end July 2021.
Architect and
Project
Management
consultancy
has been
appointed.
Tender
preparation is
under progress
and tendering
action will be
initiated soon.
Likely to be
completed by
November 2022
Source: Department of Border Management, Ministry of Home Affairs
225
Annexure XVI
Details of documentary and regulatory processes which are to be complied with for
exports at ICPs
Step
No.
Name of the process Stakeholder
Responsible
Documents Mode of
Activity
1 Security check of vehicle
and carrier by BGF at
LPAI Gate
Border Guarding
Force (BGF)
• Driving License
• Aadhar Card
• Registration Certificate of
the Vehicle
Manual
2 Export Documents
Verification by Custom
Officer at ICP Entry Gate
Transporter • Commercial Invoice
• Packing List
• Shipping Bill, Guarantee
Remittance Form
Manual
3 Generation of Gate in
Slip/Token No.
LPAI NA Digital
4 Weighment of Vehicle LPAI Weighment Slip Manual
5 Parking of Vehicle (if
reqd.)
LPAI Parking Slip Manual
6 Random inspection of the
Cargo [Selected by Risk
Management System
(RMS)]
Custom Token No. Manual
7 Generation of Partner
Government Agency
(PGA) Clearance (if
required)
Customs Broker
(CB)
• Shipping Bill
• Certificate of Origin & PGA
clearance certificate
Digital
8 Rummaging of the
Vehicle
Customs NA Manual
9 Request for Let Export
Order (LEO)
Customs Broker
(CB)
Shipping Bill, Commercial
Invoice, Packing List, PGA
clearance certificate & Duty
confirmation receipt (if export
duty applicable)
Digital
10 Issuance of LEO, Expert
General Manifest (EGM)
No. & Single Entry Permit
(SEP)
Customs Let Export Order (LEO),
Export General Manifest
(EGM) No. & SEP
Digital
11 Invoice Generation by
Cargo Terminal Operator
(CTO)
LPAI Invoice Manual
12 Payment To CTO Customs Broker
(CB)
DD/NEFT/Cheque/Cash Manual
13 Vehicles exits through ‘0’
Zero Gate
Transporter NA Manual
14 Gate-In of empty vehicle
after the completion of
export process
Border Guarding
Force (BGF)
NA Manual
15 ICP Gate - Exit of Vehicle Transporter • Token No.
• Gate-Out Slip Digital
Source: Department of Border Management, Ministry of Home Affairs
