T H E E C O N O M I C W E E K L Y SPECIAL NUMBER JUNE 1960

sume that the ' m u l t i p l i e r ' effect on employment w i l l be the same i n the T h i r d Plan as in the past. The struc­tura l changes that are occur r ing in the I n d i a n economy are certain to improve the speed and efficiency w i th

' T H E export poss ib i l i ty o f a single commodi ty to a single country

handled by a single agency w i l l de­cide the development w i t h i n the next few years of a number of inter­mediate ports a long the roast of Ind ia . The commodi ty is i r on o re ; the country to which it is to be ex­ported is Japan; and the agency that is handl ing the export is the State T r a d i n g Corpora t ion .

The Intermediate Ports Develop­ment Committee, wh ich recently re­ported to the Government of Ind ia , has accepted the Corporat ion 's esti-mate that by 1966-67 it should be possible for Ind ia to export 15 m i l l i o n tons of i ron ore. The Com­mittee's own estimate of export by that year is 13 m i l l i o n tons but it feels thai it would be. advanta­geous to develop port capacity ahead of needs.

The total capacity for hand l ing i ron ore l ikely to be available at a l l the ports, i nc lud ing major ports, in 1965-66 is estimated at 12.4 m i l l i o n tons. The Committee has kept the fo l lowing targets of export of i ron ore by various ports in view (see Table ! p 8 3 6 ) .

W i t h this development and what is contemplated ( i n regard to both major and mino r po r t s ) , the total ore expor t ing capacity of all the ports in Ind i a in 1966-67 is assessed as shown in Table I I . (See p 836.)

Ind ia is estimated to have consi­derable deposits; and at least some of these are in areas where there is no immediate prospect of our set­t ing up steel plants of any consider­able size.

The export of i r o n ore has been appreciably going up in recent years. In 1956-57 the figure was 1.8 m i l l i o n .tons. For 1960-61 the estimate is 4 m i l l i o n tons. In 1965-66 the total export may go up to 9 m i l l i o n tons on the basis of the exist­i ng contracts. The State T r a d i n g Corporat ion expects the possibi l i ty of an increase to 15 m i l l i o n tons. The Corpora t ion takes pr ide that to some extent the increased demand for I n -

which impulses f r o m one segment are t ransmit ted to another. Should fu l l account be taken of these dyna­mic elements, the correspondence be­tween T h i r d P lan outlays and em­ployment may not be as black as

d ian ore is due to the standard per­formance of the Corpora t ion itself. Maintenance of sh ipp ing schedules and qual i ty control have helped to generate confidence in the minds of prospective buyers.

Japan has taken Ind ia as a base source of supply for i r on ore, and Japan has a fast-expanding steel in ­dustry. The geographical posit ion of Ind ia in relat ion to Japan is of considerable advantage to the latter. Also, the qual i ty of Ind i an i ron ore is such that it is suitable for use in open hearths as well as in blast furnaces. On other points too, I n ­dian ore compares favourably w i t h that of other major sources l ike Bazi l . Canada, Sweden, Chile and N o r t h and South A f r i c a ,

Japan's steel industry buys i ron ore through a consort ium. The pre­sent total impor t of i r o n ore by Japan f r o m a l l sources is between 11 to 12 m i l l i o n tons a year. It is estimated that by 1965 this w i l l go up to 25 m i l l i o n tons. If Ind ian prices are competi t ive and if Ind ian por t and ra i lway capacities are ade­quate, the Japanese steel Indus t ry w i l l cer tainly agree to take almost any quant i ty available in Ind i a .

Other customers of Ind ian ore are East European countries and West European States,

East European countries have been India 's customers in the last two years. Czechoslovakia, Ruma­nia, the G D R, Hungary , Poland and Yugoslavia are all expanding their respective steel p roduct ion capa­cities. W i t h almost all these countries Ind i a has rupee payments arrange­ments. Since i t w i l l be beneficial rupee balances on Ind ian commodi­ties of use to them, the Corpora t ion hopes that I n d i a n export of i r o n ore to these countries w i l l definitely increase.

Among West European countries, I ta ly is a prominent and regular buyer. No doubt, other major con­sumers in this region f ind Ind i an ore relatively costly. The i r main sources are Sweden, Canada, Spain,

mere extrapolations of past trends migh t indicate. The difficulty, of course, is that neither the P lanning Commission nor anybody else is equipped w i t h enough relevant data to assess the potential i t ies .

Nor th Afr ica and Braz i l . Neverthe­less, there has been g r o w i n g inter­est in Ind i an ore f rom these buyers, for they are reported to be keen on having alternative sources of supp ly .

The intermediate ports that are to lie developed to handle the estima­ted increase in i ron ore export are those given in Table I . Paradip :

The Committee feels that even wi thou t a ra i lway l ine from Cultack, it w i l l not be difficult to move 5 lakh tons of i ron ore to this port w i t h the improvements that the Committee has suggested. When the traffic at Paradip reaches the figure of 5.5 lakh tons a year, it w i l l he necessary to provide an a l l weather-port together w i t h a ra i lway l ink f r o m Cuttack.

For handl ing a traffic of 2.5 lakh tons, the Committee recommends improvements at the port of a cost of Rs 99 lakhs. Th i s should be given first p r i o r i t y . W h e n the traffic has reached 2.5 lakh tons and when there is ind ica t ion that the antici­pated traffic of 5.5 lakh tons w i l l actually materialise the Committee recommends certain addi t ional works costing Rs 55.3 lakhs. This w i l l have second p r i o r i t y . Kakinada :

This por t should be enabled to handle an annual traffic of 4 lakh tons of . cargo, expected in the next few years. First p r i o r i t y improve­ments required to handle this traffic are estimated to cost Rs 25 lakhs. Certain addi t iona l works costing Rs 9 lakhs are also necessary though these may be accorded second p r i o r i t y .

Masulipatnam :

A traffic of 4 lakh tons per annum is expected in the next few years. One of the most impor tant develop­ments required at Masul ipntnam for hand l ing this traffic is the stabilisa­t ion and improvement of the bar at the por t . This work, estimated to cost Rs 17 lakhs, should be given f i r s t p r i o r i t y . Certain addi t iona l

Intermediate Ports

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Our Delhi Letter

SPECIAL NUMBER JUNE 1960 THE ECONOMIC WEEKLY

works costing Rs 14.8 lakhs are also necessary but these may be given second p r i o r i t y .

Cuddalore :

The traffic visual ised is 6.5 lakh tons in the course of the next 10 years. For this, the por t should be fu r the r developed in to a 9-foot har­bour. One of the f irst essentials is the stabi l isat ion of the mouth of r ivers and the improvement of de­pths over the bar. Th is can be achieved by t ra in ing the two r ivers and construct ion of breakwaters at the mou th , estimated to cost Rs 50 lakhs. Th i s proposal should be given f i rs t p r i o r i t y . Cer ta in addi­t iona l , works wh ich may be given second p r i o r i t y w i l l cost Rs 28.4 lakhs.

Mangalore :

Mangalore enjoys an advanta­geous pos i t ion in respect of h igh grade and low grade i ron ore m i n i n g areas in Mysore . A traffic in ore of the order of 20 lakh tons per annum can be ant ic ipated (besi­des a general cargo traffic of 5 to 6 l akh tons ) . To handle this traffic, a deep-sea a l l weather harbour w i th other faci l i t ies w i l l be necessary p rov ided the port can be made suit­able Tor 34 to 38 foot d r a f t . The pro jec t may cost in the f irst stage Rs 12 crores. Pending the decision of the Government of I nd ia on this matter, cer ta in no rma l development works wou ld be necessary i f Man-ga lore is to cont inue as a l ighterage por t f o r a few years. These works may cost Rs 25.3 lakhs, and these should be given f i rst p r i o r i t y .

Karwar :

An t i c i pa t i ng a traffic of 6 to 7 l akh tons per annum, K a r w a r may be developed as a f a i r weather l ighterage port f o r this purpose-Est imated to cost Rs 25 lakhs, this work should be given f i rst p r i o r i t y . Cer ta in other works wh ich are also necessary are estimated to cost Rs 9.5 lakhs. These may be accorded second p r i o r i t y . Bedi :

Bedi por t should be developed to handle 5 lakh tons of are per an­n u m . This development, estimated to cost Rs 10 lakhs should be given f i r s t p r i o r i t y .

The Corpora t ion is so opt imis t ic about the export possib i l i ty of In ­d ian ore that i t bo ld ly claims that the l im i ta t ion today on the quant i ty exported is not of the oversea de­mand but our capacity to export . A l l

the avai lable por t and ra i lway fac i ­l i t ies are being used to the f u l l and there is actual ly a shor t fa l l in some centres even in regard to the cur­rent contracted demand. Hence i f i r on ore is to feature h igh in Ind ia 's export l ist and i f targets for 1965-66 are to be f u l l y real ised, the deve­lopments recommended by the

Commit tee need to be inc luded in the T h i r d P lan projects.

The proposals of the Commit tee are in the f o r m of on ly rough pro­jects w i th a l im i ted purpose. Before the projects are executed, detai led plans and estimates would have to be prepared and fu r the r data collec­ted for the purpose.

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