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PARLIAMENT OF INDIA

RAJYA SABHA 91

DEPARTMENT RELATED PARLIAMENTARY STANDING COMMITTEE ON COMMERCE

NINETY FIRST REPORT

ON

EXPORT INFRASTRUCTURE AT AIRPORTS, PORTS, ICDs AND LCSs ETC. AND TOWNS OF EXPORT EXCELLENCE IN THE COUNTRY

RAJYA SABHA SECRETARIAT

NEW DELHI

RAJYA SABHA SECRETARIAT

NEW DELHI

JUNE, 2009/JYAISTHA, 1931 (SAKA)JUNE, 2009/JYAISTHA, 1931 (SAKA)

TH(PRESENTED TO HON’BLE CHAIRMAN, RAJYA SABHA ON 13 MAY, 2009)TH

(FORWARDED TO HON’BLE SPEAKER, LOK SABHA ON 13 MAY, 2009)

TH(PRESENTED TO CHAIRMAN, RAJYA SABHA ON 13 MAY, 2009)TH

(FORWARDED TO LOK SABHA ON 13 MAY, 2009)

HON’BLE

HON’BLE SPEAKER,

TH(LAID IN THE RAJYA SABHA ON 8 JUNE, 2009)TH

(LAID IN THE LOK SABHA ON 8 JUNE, 2009)

TH(LAID IN THE RAJYA SABHA ON 8 JUNE, 2009)TH

(LAID IN THE LOK SABHA ON 8 JUNE, 2009)

Website : http://rajyasabha.nic.inE-mail : [email protected]

PARLIAMENT OF INDIARAJYA SABHA

DEPARTMENT RELATED PARLIAMENTARY STANDINGCOMMITTEE ON COMMERCE

NINETY FIRST REPORT

ON

EXPORT INFRASTRUCTURE AT AIRPORTS, PORTS, ICDs AND LCSsETC. AND TOWNS OF EXPORT EXCELLENCE IN THE COUNTRY

(PRESENTED TO HON’BLE CHAIRMAN, RAJYA SABHA ON 13TH MAY, 2009)(FORWARDED TO HON’BLE SPEAKER, LOK SABHA ON 13TH MAY, 2009)

(LAID IN THE RAJYA SABHA ON 8TH JUNE, 2009)(LAID IN THE LOK SABHA ON 8TH JUNE, 2009)

RAJYA SABHA SECRETARIATNEW DELHI

JUNE, 2009/JYAISTHA, 1931 (SAKA)

CONTENTS

PAGES

1. COMPOSITION OF THE COMMITTEE ......................................................................................... (i)-(vi)

(i) Composition of the Committee on Commerce......................................................... (i)-(iv)

(ii) Composition of the Sub-Committee–II ..................................................................... (v)-(vi)

2. PREFACE .................................................................................................................................. (vii)

3. REPORT ................................................................................................................................... 1—40

CHAPTER-I Introduction .................................................................................................. 1—12

CHAPTER-II Written and Oral Submissions:Central Ministries/Departments/Board ....................................................... 13—16

CHAPTER-III Study Visits .................................................................................................. 17—33

CHAPTER-IV Observations and Recommendations ........................................................ 34—40

4. OBSERVATIONS AND RECOMMENDATIONS — AT A GLANCE ................................................... 41—43

5. ANNEXURES ............................................................................................................................. 45—58

I – List of ICDs/CFSs approved by the Inter MinisterialCommittee ................................................................................................................... 47—56

II – CONCOR Container Terminals ................................................................................. 57—58

6. MINUTES ................................................................................................................................. 59—76

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEEON COMMERCE

Composition of the Committee

I

As Constituted on 5th August, 2006

1. Dr. Murli Manohar Joshi — Chairman

RAJYA SABHA2. Shri Thennala G. Balakrishna Pillai3. Shri Jai Parkash Aggarwal4. Shri K. Keshava Rao5. Shri Arun Jaitley6. Shri Banwari Lal Kanchhal

%7. Shri Mohammed Amin8. Shri Rajkumar Dhoot9. Shri Dinesh Trivedi

10. Shri Robert Kharshiing

LOK SABHA11. Shri Omar Abdullah12. Shri C.K. Chandrappan13. Shri D.V. Sadananda Gowda14. Shri Radhey Shyam Kori15. Shri N.N. Krishnadas16. Shri Jivabhai A. Patel17. Shri Virchandra Paswan18. Shri Shishupal N. Patle19. Shri E. Ponnuswamy20. Shri Gingee N. Ramachandran21. Shri Kashiram Rana22. Shri Haribhau Rathod23. Shri S.P.Y Reddy24. Shri Nikhilananda Sar25. Shri Bharatsinh Madhavsinh Solanki26. Shri Sarvananda Sonowal

#27. Shri Manjunath Kunnur$28. Shri Amitava Nandy

&29. Shri Braja Kishore Tripathy30. Shri Sippipari Ravichandran

@31. Shri Balashowry Vallabhaneni

(i)

% Nominated w.e.f. 21st June, 2007.# Nominated w.e.f. 31st August, 2006.$ Nominated w.e.f. 31st August, 2006.& Nominated w.e.f. 8th September, 2006.@ Nominated w.e.f. 11th December, 2006.

II



RAJYA SABHA

2. Shri Thennala G. Balakrishna Pillai

3. Shri Jai Parkash Aggarwal

4. Dr. K. Keshava Rao

5. Shri Arun Jaitley

6. Shri Banwari Lal Kanchhal

7. Shri Mohammed Amin

8. Shri Parimal Nathwani

9. Shri Y.P. Trivedi

10. Vacant

LOK SABHA

11. Shri Omar Abdullah

12. Shri C.K. Chandrappan

13. Shri D.V. Sadananda Gowda

14. Shri Radhey Shyam Kori

15. Shri N.N. Krishnadas

16. Shri Manjunath Kunnur

17. Shri Jivabhai A. Patel

18. Shri Virchandra Paswan

19. Shri Shishupal N. Patle

20. Shri E. Ponnuswamy

21. Shri Gingee N. Ramachandran

22. Shri Kashiram Rana

23. Shri Haribhau Rathod

24. Shri Sippiparai Ravichandran

25. Shri S.P.Y. Reddy

26. Shri Nikhilananda Sar

27. Shri Bharatsinh Madhavsinh Solanki

28. Shri Sarvananda Sonowal

29. Shri Braja Kishore Tripathy

30. Shri Balashowry Vallabhaneni

#31. Shri Amitava Nandy

(ii)

# Nominated w.e.f. 24th June, 2008.

III



RAJYA SABHA@2. Shri Thennala G. Balakrishna Pillai



5. Shri Arun Jaitley

$6. Shri Banwari Lal Kanchhal




#10. Dr. Akhilesh Das Gupta

LOK SABHA%11. Shri Omar Abdullah





&16. Shri Manjunath Kunnur







£23. Shri Haribhau Rathod







30. Shri Balashowry Vallabhaneni

31. Shri Amitava Nandy

(iii)

@ Retired from the Membership of Rajya Sabha w.e.f. 21st April, 2009.$ Resigned from the Membership of Rajya Sabha w.e.f. 23rd April, 2009.# Nominated on 27th January, 2009.% Resigned from the Membership of Rajya Sabha w.e.f. 6th January, 2009.& Resigned from the Membership of Rajya Sabha w.e.f. 20th October, 2008.£ Resigned from the Membership of Rajya Sabha w.e.f. 5th January, 2009.

SECRETARIAT

Shri P. Gopalakrishnan, AS & FA

Shri Surinder Kumar Watts, Director

Shri T.N. Pandey, Deputy Director

Shrimati Indira Chaturvedi Vaidya, Committee Officer

(iv)

COMPOSITION OF THE SUB-COMMITTEE-II

I

(As constituted on 5th October, 2007)

1. Shri Kashiram Rana — Convenor

RAJYA SABHA



4. Shri Rajkumar Dhoot


LOK SABHA











(v)

II

As constituted on 7th August, 2008


RAJYA SABHA



4. Shri Y. P. Trivedi


LOK SABHA











(vi)

PREFACE

I, the Chairman of the Department-related Parliamentary Standing Committee on Commerce,having been authorised by the Committee, present this Ninety First Report of the Committee onthe Export Infrastructure at Airports, Ports, ICDs, LCSs etc. and Towns of Export Excellence.

2. The Department-related Parliamentary Standing Committee on Commerce took up for an in-depth study the subject of Export Infrastructure at Airports, Ports, ICDs, LCSs etc. and Townsof Export Excellence on 18th April, 2007. The Committee held discussions with the Secretary,Department of Commerce. It also heard the views of the representatives of the various Ministries/Departments. The Committee held a total number of five sittings. The Subject was referred to Sub-Committee-II of the Committee on Commerce on 12th December, 2007. The Sub-Committee-IIheld a total number of four sittings. the Sub-Committee II of the Committee visited the States ofTamil Nadu and Kerala from 18th February to 22nd February, 2008; Assam, Manipur, Tripuraand West Bengal from 24th to 31st May, 2008; Gujarat, Maharashtra, Karnataka, and AndhraPradesh from 4th to 9th September, 2008; Uttar Pradesh, Punjab, Haryana and Gujarat from27th November to 1st December, 2008 and Delhi on 3rd February, 2009 for on-the-spot visits onthe subject.

3. The Committee considered and adopted this report at its sitting held on 4th May, 2009.

DR. MURLI MANOHAR JOSHINEW DELHI; Chairman,May 4, 2009 Department-related Parliamentary

Standing Committee on Commerce.

(vii)

1

REPORT

CHAPTER-I

Export Infrastructure at Airports, Ports, Inland Container Depots (ICDs) and LandCustoms Stations (LCSs)

Export Infrastructure at Airports

1.1 Air transport is the preferred mode of transport, especially for long distance travel, businesstravel, accessing difficult terrains, and for transporting high value and perishable commodities, mainlyon account of the speed of travel and saving of time. Presently, about 40% of the world’s cargobusiness, in terms of value, moves by air. Brief description of the airports that have the exportinfrastructure is as under:—

Indira Gandhi International (IGI) Airport, Delhi

1.2 Cargo Terminal was established by Airports Authority of India (AAI) in 1986. The Terminalhas been handed over to M/s Delhi International Airport Private Ltd. (DIAL), since May, 2006, foroperation and management. There are three Export Cargo Sheds, covering a total area of 34,200 sq.mtrs. The annual handling capacity is 5,00,000 MT, with average dwell time of 53 hrs. Area of 1100sq mtrs of space is available for special cargo handling facilities and six Cargo bays for parking ofwide bodied cargo freighters (B 747), besides computerized Cargo Handling System. In addition, thereis also two tier Cargo Security System and Fire Safety arrangement.

Chhatrapati Shivaji International (CSI) Airport, Mumbai

1.3 Cargo Terminal was established by AAI in 1977. The terminal has been handed over toM/s Mumbai International Airport Limited (MIAL) since May, 2006 for operation and management.MIAL and Air India are the two custodians handling export cargo at Mumbai airport. The total volumeof annual import/export cargo currently handled is approximately 5,00,000 MTs. As per the MasterPlan, the cargo infrastructure is being upgraded in order to handle up to 1 million MT of cargo whenthe infrastructure is fully developed.

Cochin International Airport Limited (CIAL)

1.4 International Cargo Operation was started in October, 1999. CIAL took over the cargooperation as custodian in December, 2000. Cargo at present is operated from an area of 6,000 sq.mts. It is well equipped to handle all types of export and import cargo. The ongoing project envisagesconstruction of a state of art Centre for Perishable Cargo at a cost of Rs. 25 crore. CIAL is in theprocess of creating a full-fledged Cargo Village, capable of handling Air freight, Sea freight, Rail freightand Road freight – Multi Model Transport. As an immediate step, CIAL proposes to provideimmediately various additional facilities like Exclusive Cargo Freighter Parking Bay; Equipments forFreighter handling; Introduction of e-Trade and Revamping and Remodeling existing ACC, exclusivelyfor General Cargo Operations; and to provide two x-ray screening machines in the general CargoExport Bay, and also additionally acquire a four dimensional penetrating X-ray machine to screen fullystuffed Unit Load Devices (ULDs).

Bangaluru International Airport Limited

1.5 The export infrastructure at the new airport consists of two separate cargo terminal facilities,built and operated by:—

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Air India SATS

1.6 The facility will have a two-floor warehouse, with a gross floor area of 18,000 sq mtrs, anda design capacity to handle more than 2,00,000 tonnes of cargo. One floor of the facility is dedicatedto process export and import of international cargo, while the other is for domestic purposes. Thefacility will be able to handle all types of cargo, general cargo, perishable cargo, courier, mail andspecialized cargo (dangerous goods, live stock and human remains). It will be equipped with the latestMaterial Handling System (MHS) for cargo handling and tracking within the warehouse. Some of thekey features of the facility are elevated Transfer Vehicle within two level storage, Automated Storageand Retrieval System (ASRS) for loose cargo, lowerable workstations for easy build-up/breakdown ofUnit Load Devices (ULDs) and dock levelers, to cater to trucks of different heights.

Menzies Aviation Bobba (Bangaluru) Cargo Handling Facility

1.7 This facility, built and operated by Menzies Aviation and Bobba Group, has an initial capacityof 50,000 MTs. The warehouse planned on 7.3 acres, includes both the international and the domesticoperations, and has a vertical expansion growth possibility. The office complex on the ground floorhas provisions for a business centre, ATM, facility counter and waiting lounge. The first floor housescustoms offices, the second custodian offices and airlines, and the third floor has the offices of theTrade partners. The facilities include a Pallet Handling System for storage of built up pallets/containers., X-rays, cold storage, a secured area to load and unload with a canopy, a trans-shipmentroom, an advance handling IT system and an unaccompanied baggage room.

Hyderabad International Airport Limited

1.8 A world class cargo terminal of 1,00,000 tonnes per annum capacity is being developed in thefirst phase. A Greenfield airport is being developed in Shamshabad, near Hyderabad on BOOT (Build-operate-owned and transfer) basis by the Government of Andhra Pradesh, with Public PrivateParticipation (PPP) at an approximate cost Rs. 2,478 crore. AAI and Government of Andhra Pradeshtogether hold 26% equity, with AAI’s equity being capped at Rs. 50 crore. The balance 74% beingheld by the strategic partners, a consortium consisting of M/s GMR Enterprises and Malaysian AirportsHoldings Berhard (MAHB).

1.9 Apart from these airports, following airports are under the Airport Authority of India (AAI):—

Netaji Subhash Chandra Bose International (NSCBI) Airport, Kolkata

1.10 Cargo Terminal was established by the AAI in 1975The expansion of the cargo terminal isunder process.

Chennai Airport

1.11 Cargo Terminal was established by the Airports Authority of India (AAI) in 1978. Theexpansion of the cargo terminal is under process.

Nagpur Airport

1.12 Cargo terminal was commissioned in 1997. Under a joint venture between the AirportsAuthority of India (AAI) and Maharashtra Airport Development Company (MADC), the Nagpur Airportis scheduled to be developed as a multi-modal international passenger and cargo hub.

Coimbatore Airport

1.13 Cargo Terminal was commissioned in 2001. A walk-in cold storage facility is available forperishable cargo. There was proposal for augmentation of the storage space of export/import cargo.

3

Lucknow Airport

1.14 An interim Air Cargo Terminal was established by the AAI in June, 2000. Proposal for newCargo Terminal is under consideration. Cold storage facility was available for perishable cargo.

Guwahati Airport

1.15 An interim Cargo Terminal was established by the AAI in September, 1999. The airport isundergoing renovations to enable it to handle increased air traffic. The upgrade is due to be completedby the end of 2009. The overhaul will include cosmetic and operational changes.

Amritsar Airport

1.16 The AAI has constructed an Air Cargo Complex, which was outsourced through open tender,to M/s JAC Air Pvt. Ltd, for operation and management, in 2007, as per the Business Plan of theAAI. Allotment of land was made to M/s Council for Value Added Horticulture in Punjab (CVAHP) forestablishment of Centre for Perishable Cargo. The facility was under operation.

Goa Airport

1.17 Site had been allotted for creation of walk-in cold storage facility to M/s CONCOR. The AirCargo Complex is being operated by M/s Central Warehousing Corporation Ltd. (CWC) near theharbour, away from the Goa Airport.

Indore Airport

1.18 An interim cargo facility has been constructed by the AAI. The Air Cargo Complex (ACC) hasbeen leased to M/s GSEC Ltd., for operation and management, as per the Business Plan of the AAI.

Patna Airport

1.19 The AAI has approved formation of a Joint Venture Company with M/s Bihar Industrial AreaDevelopment Authority (BIADA), for establishment of Air Cargo Complex and cold storage facility.

Existing Bangaluru Airport

1.20 AAI has leased land to M/s Mysore Sales International Ltd. to operate the Air Cargo Complex.Cold storage facility for perishable cargo is available.

Hyderabad Airport

1.21 The AAI has leased land to M/s Andhra Pradesh State Trading Corporation Ltd., (APSTC) forestablishment of Air Cargo Complex. The AAI has also leased through open tender cold storage facilityfor perishable cargo to M/s APSTC.

Ahmedabad Airport

1.22 The AAI has leased land to M/s GSEC Ltd., for their Air Cargo Complex. The AAI has leasedland to M/s Gujarat Agro Industries Corp Ltd., for establishment of cold storage facility of perishablecargo.

Jaipur Airport

1.23 The AAI has leased land to M/s Rajasthan Small Industries Corporation Ltd., for establishment

4

of Air Cargo Complex. The AAI has leased land to M/s Rajasthan State Agricultural Marketing Board,for establishment of cold room facility for handing perishable cargo.

Varanasi Airport

1.24 The AAI has leased land to M/s UP State Export Corporation Ltd. for their Air Cargo Complex.

Pune Airport

1.25 The AAI has leased land to M/s Maharashtra State Agricultural Marketing Board for establishmentof cold storage facility for perishable cargo.

Calicut Airport

1.26 The air cargo complex, adjacent to the Calicut Airport, is operated and managed by KeralaState Industries Enterprise Ltd. The AAI has also handed over its own facility to M/s KSIE on revenuesharing basis, for export cargo, as per Memorandum of Understanding (MoU).

Visakhapatnam Airport

1.27 The Air Cargo Complex is currently being located in the city and is being operated byM/s APSTC. M/s APSTC has also been appointed Customs custodian for this airport, with effect fromMay, 2005.

Trivandrum Airport

1.28 The Air Cargo Complex is being operated and managed by M/s Kerala State IndustriesEnterprises Limited.

Srinagar Airport

1.29 Export cargo being handled by M/s Indian Airlines, through their own Customs-bondedwarehouse at the airport.

Export Infrastructure at Ports

1.30 Ports constitute inter – modal interface between maritime and road and rail transport. India hasa coast line of around 7,517 Kms, with 12 major ports and 187 notified non – major (minor/intermediate) ports along the coast line and sea islands. Almost 95% by volume and 70% by value ofIndia’s global merchandise trade is carried through the sea route. In 2006-07, the 12 major portshandled about 73% of the maritime cargo of the country. The balance 27% was handled by the nonmajor ports. Overseas cargo accounts for about 77% of the total cargo handled at Indian ports. Ofthe 12 major ports, 11 are administered by the respective Port Trusts and Ennore Port, the 12th majorport, which started functioning in February, 2001, is corporatised.

1.31 Brief description of the major ports that have the export infrastructure is as under:—

1. Kolkata Port, Kolkata

Kolkata Port is the oldest (established in 1870) and the only riverine major port of India. ThePort has vast hinterland comprising the entire Eastern India and two landlocked neighboring countries-Nepal and Bhutan. Kolkata Port Trust (KoPT) has twin dock systems viz. Kolkata Dock System(KDS) on the eastern bank of river Hooghly and Haldia Dock Complex (HOC), commissioned in 1971,on the western bank of the river Hooghly. Kolkata Port, which consists of Kolkata Dock System and

5

Haldia Dock System, is directly connected to Kolkata Customs. All Customs related messages areelectronically communicated between Kolkata Port and Kolkata Customs. Exporter/importers and agentscommunicate with Customs, which are electronically forwarded to Kolkata Port.

Kolkata Dock System

There is a separate stack yard for export containers, with an approximate holding capacity tothe level of 1,500 TEUs per day. Export cargo, including containers, is allowed entry in the port24x365. Exclusive equipment support is provided for unloading, to ensure the least detention of exportcargo/container. For dry bulk commodities like iron ore, exclusive rake unloading support at KPDock II has been provided with collateral stacking-cum-Ioading onto vessel/barge, as the case maybe, which is effected ensuring the least Twin Rivers Terminal (TRT), both in railway leg as also inthe ship to shore transfer leg. This dock system provides export aggregation/dispersal by all the threemodes i.e. rail, road and Inland Water Transport (IWT). The equipment available at the Dock Systemincludes three Mobile Harbour Cranes; Four Rubber-Tyred Gantry Cranes; one 1200T Cantilever Crane;10 Reach stackers; 14 Mobile Cranes; 11 Wharf Cranes; 16 Fork-Lift Trucks; two Medium duty Fork-Lift Trucks; one Top Lift Truck; 12 Tractors and 42 Trailers and 36 Hippo Tractors and 36 Trailers.

Haldia Dock System

The Dock System has various dedicated mechanized berths for handling export of thermal coaland iron ore at the Haldia Dock Complex. The Dock Complex also has the facilities for export of drybulk, break bulk and containerized cargo. Besides this, there is an open storage area of around8,92,840 sq mtrs and covered shed storage area of 25,040 sq mtrs. Another feature is the free timeallowed for aggregation of export cargo prior to shipment. In terms of equipment, there are two Rail-Mounted Quay Cranes; 12 Wharf Cranes; 4 Rubber-Tyred Gantry Cranes; one Transtainer Crane; oneTop Lift Truck; 1 Fork-Lift Truck; 10 Payloaders; four Tractor-Trailer combination; Floating Craft;17 Tugs; 11 Survey Vessels/Launch; one Despatch Vessel; five Pilot I Mooring Launch; two WaterBarges; four Survey Launch; two Tug Boats and two Anti Pollution Vessels.

2. Paradip Port, Paradip, Orissa

Paradip Port is the only major sea port in Orissa. The Port was opened to traffic on12th March, 1966 and declared as Major Port on 18th April, 1966. The recent initiatives and achievementsinclude (i) Deepening of channel to handle 1,25,000 DWT (Dead Weight Tonnes) vessels; (ii) Constructionof stack-yard has been completed; and (iii) Work of Single Buoy Mooring (SBM).

3. Visakhapatnam Port, Visakhapatnam

The Port of Visakhapatnam, a natural harbour, was opened to commercial shipping on7th October, 1933. Visakhapatnam Port is the only Indian Port to possess three International accreditationviz., ISO 14001; 2004 (EMS)/OHSAS 18001 and ISO 9001 :2000 (QMS). M/s Visakha ContainerTerminal has been notified by the Customs as International Transhipment Terminal. The First dedicatedtrain connecting Visakhapatnam Container Terminal with the ICD at Loni, close to Delhi, was flaggedoff on 9th August, 2007. T-8 Transit Sheds of 4,350 Sq. Meters were commissioned on21st February, 2007; one loco of 3100 HP was commissioned on 21st February, 2007. The work onPhase I, pertaining to deepening and widening the Inner harbour entrance channel and Turning circleat inner harbour, to facilitate 10.7 mtrs draft vessels, has been completed.

4. Chennai Port Trust, Chennai

Chennai Port is an all-weather artificial harbour, with one Outer Harbour and an Inner Harbour,

6

with a Wet Dock and a Boat Basin, with round the clock navigation facilities. The Port, establishedin 1875, is located in the Bay of Bengal. The recent initiatives and achievements include Developmentof Second Container Terminal on BOT basis, Modernization of Chennai Port, Development ofadditional open storage yard, Ennore - Manali Expressway.

5. Tuticorin Port, Tuticorin

The Port of Tuticorin, situated on the east coast in the State of Tamil Nadu, was declared amajor port in July, 1974. It has two operational wings, viz. Zone ‘A’ comprising the new major port,and Zone ‘B’ representing the old anchorage port, which were merged together on 1st April, 1979when Tuticorin Port Trust was constituted. The recent initiatives and achievements include constructionof berth no. 9; dredging the basin and channel, to cater 12.80m draught vessels; construction of NorthCargo Berth-1; and replacement of wharf cranes in Berth Nos. 1 and 2.

6. Cochin Port, Cochin

The modern Port of Cochin, which was formally opened for vessels by 1930-31, was giventhe status of a Major Port in 1936. It has various infrastructural facilities for facilitating Vesselhandling and Cargo handling. This includes Berths and other infrastructure for handling various typesof vessels like Bulk (both dry and liquid) vessels, Break Bulk vessels, Container vessels, Tankers andCruise vessels as well as equipment with storage facilities for handling various types of cargo. Theport is well connected by road and rail to various trade centers in the country. The recent initiativesand achievements include International Container Transhipment Terminal (ICTT) Project at Vallarpadam,completion of capital dredging for channel for Rajiv Gandhi Container Terminal (RGCT), completionof work for crude oil Single Buoy Mooring (SBM) at Kochi Refineries Ltd. The important schemestaken up include rail connectivity to ICTT, Special Economic Zone, reclamation and development ofland at South end of Willingdon Island, installation of 110 KV Sub station, replacement of two Nos.of RTG’s and two Tugs and replacement of Mattancherry Wharf - Phase I etc.

7. New Mangalore Port

The Mangalore Harbour Project was started in 1962. The Port was declared as Major Port on4th May 1974 and was formally inaugurated on 11th January 1975. It has a modern all weather artificiallagoon situated at Panambur, Mangalore in Karnataka State on the West Coast of India. In terms ofdevelopment, proposals for development of a Coal Jetty on captive basis by Nagarjuna Power CorporationLtd. on BOT basis and mechanized iron ore handling facility at Berth NO.14 on BOT basis are underconsideration. Besides this, in principle approval has been accorded for construction of POL Berth in theOil Dock Arm to cater to the additional demand of MRPL expansion programme. M/s CES, appointedfor the work of preparation of Detailed Feasibility Report, have submitted the final report. The proposalhas been approved by the Port Trust Board. Application has been filed for obtaining environmentalclearance. Appointment of Consultants for Detailed Engineering is under process. Ministry’s approval forfunding the Jetty from IR is awaited. In principle approval has been granted to NMPT for participationin the SPV formed for Mangalore SEZ. Further action is in progress.

8. Mormugao Port, Goa

Mormugao Port is one of the century old ports, with modern infrastructural facilities on thewest coast of India and one of the finest natural harbours in the world. The Port was declared a majorport on 2nd December, 1963. The recent initiatives and achievements include construction of additionalthree nos. of Mooring Dolphins; replacement of existing three nos. of Rail Mounted Stackers;replacement of various Stackers in Phases; upgradation of MOHP through Project ManagementConsultancy; and development of new berth No.7.

7

9. Jawaharlal Nehru Port, Mumbai

JNPT, since its inception on May 26, 1989, is the biggest container handling Port in India,handling around 60% of the country’s containerized cargo, crossing the historic landmark of fourmillion TEUs in container throughput. JNP is ranked 24th among the top 100 Container Ports in theworld. Having set for itself a long term goal of achieving 10 million TEUs by the year 2014 -15, JNPhas thrown open an array of worthwhile opportunities for Shipping Lines and Shippers, to ferry theircargo to various sectors across the globe. Supported by top of the order, world class infrastructure,with impeccable technological standards, facilities at the JNP comprise a full fledged Customs House,above 30 Container Freight Stations and a large number of ICDs across the country. Excellenthinterland connectivity, both by rail, and road as well as proximity to Airports, Hotels, etc., gives thePort an extra edge to address the shippers needs, efficiently and promptly. With its strong commitmentto provide seamless service to its customers as India’s prime facilitator of international trade, JNPstrives to be the undisputed leader in the South Asian region in years to come.

10. Mumbai Port, Mumbai

Mumbai Port is a natural deep water port, the second oldest major port of India after Kolkata.Originally, a general cargo port, Mumbai Port today is a multi-purpose port, handling all types ofcargo-liquid bulk, dry bulk, break bulk and containers. Traditionally, the Port provides all services/facilities in-house with its skilled and experienced workforce. The recent initiatives and achievementsinclude construction of off-shore container, redevelopment of Harbour Wall berths, terminal berths,construction of second berth for handling liquid chemical, etc., improvement of rail connectivity,construction of a new Cruise Terminal and 5th Oil berth at Jawahar Dweep.

11. Kandla Port, Kuchchh, Gujarat

Kandla Port, declared as a Major Port on 8th April, 1955, is the largest sea port of Gujaratsituated in the Kachchh District. This is the gateway port for States like Rajasthan, Punjab, Haryana,Jammu and Kashmir and the rich Industrial belt of the West and the North India. This is an all weatherport, mainly handling agricultural cargo and other bulk liquid cargo. Container handling facility wasintroduced in the port in October, 1981. The total Customs Bonded Area at the Port is 213 hectares.There are 10 multi - purpose dry cargo berths to handle dry and liquid cargos, with a maximum draftof 11.5 mtrs., and it can accommodate a maximum vessel size of 55,000 Dead Weight Tonnes(DWT).

12. Ennore Port Limited, Ennore, Chennai

Ennore Port Limited (EPL), the twelfth Major Port, is the first Corporate Major Port of India.The Ennore Port Limited was registered under the Companies Act, 1956 on 11th October 1999. ThePort commenced commercial operations on 22nd June, 2001.

Inland Water Transport

1.32 Inland waterways comprising rivers, lakes, canals, creeks, backwaters etc extend to about14500 km in the country. However, potential of this important mode of transport has not been fullyexploit so far. In several countries of the world where development of this mode was given requiredimportance and attention, Inland Water Transport (IWT) has substantial share in inland transportnetwork.

1.33 Government of India has declared three waterways as National Waterways. These are:(i) Allahabad-Haldia stretch (1620 km) of the Ganga-Bhagirathi-Hooghly river system (NW-1) (II)Sadiya-Dhubri stretch (891 kms) of Brahmaputra River (NW-2) and (iii) Kottapuram-Kollam stretch of

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the West Coast Canal along with Champakara and Udyogmandal Canals (205 km) (NW-3). IWAIundertakes development and maintenance of IWT related infrastructure facilities on these waterways.

1.34 For development and regulation of inland waterways of the country, there is a statutoryorganization namely Inland Waterways Authority of India (IWAI).

1.35 The IWAI was set up on 27th October, 1986 vide Inland Waterways Authority of IndiaAct, 1985 for regulation and development of inland waterways for the purposes of shipping and navigation.

Road Connectivity

1.36 The National Highways Development Project (NHDP), under its phased programme, has takenvarious initiatives for improvement and development of National Highways. The NHDP inter-aliaincludes Port Connectivity Project comprising a length of 380 km for improvement of roads connecting12 major ports in the country. Besides this NHDP programmes also include provision of improved roadto Nathula (the trade route with China) and improvement of road connectivity to border areas, LandCustoms Stations and neighbouring countries.

1.37 The Government, under its various phased programmes, sanctioned an amount ofRs.1896 crore on ten major projects in the country for port connectivity. These phased programmesalso include one project for four-lane connectivity to the International Container Transhipment Terminal(ICTT) at Cochin at a cost of Rs.557 crore. Similarly, another project on Build-Operate-Transfer(BOT) basis, at a cost of Rs.1655 crore, was sanctioned for construction of an elevated road forChennai Port to Maduravoil. Most of the major ports in the country were likely to be connected byfour-lane exclusively connectivity projects. Among these projects, the Paradip Port project was likelyto be completed in March, 2009, at a cost of Rs.427.4 crore. The Visakhapatnam project in AndhraPradesh and the Chennai-Ennore Port Connectivity project in Tamil Nadu had been completed. Theconnectivity projects, at the remaining ports, were likely to be completed by end of the year 2010.

1.38 In order to achieve the targets at the earliest, the Government, under a new contract, awardednew timeline of September, 2010. This new contract carried a new provision of bonus to thecontractor who completed the project earlier than the scheduled date of completion of a particularproject. Use of information technology was made for designing the roads, bridges, tunnels, etc. Thevarious projects sanctioned by the Government, in this regard, were also being monitored using theinformation technology system.

Export Infrastructure at Inland Container Depots (ICDs)/Container Freight Stations (CFSs)/Land Customs Stations (LCSs) etc.

1.39 With the development of multi modal transport system, to provide adequate facilities toimporters/exporters, a need was felt to develop Inland Container Depots (ICDs) and Container FreightStations (CFSs). These were to essentially function like a dry port. These ICDs/CFSs were to functionas common user facilities, offering all the services for Customs clearance like any other port.

ICD/CFS may be defined as:—

“A common user facility with public authority status equipped with fixed installationsand offering services for handling and temporary storage of import/export laden andempty containers carried under customs transit by any applicable mode of transportplaced under Customs control. All the activities related to clearance of goods forhome use, warehousing, temporary admissions, re-export, temporary storage foronward transit and outright export, transhipment, take place from such stations.”

1.40 An Inland Container Depot (lCD) is a place where containers are aggregated for onwardmovement to or from the ports whereas Container Freight Station (CFS) is a place where containers

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are stuffed, unstuffed, and aggregation/segregation of cargo take place. ICDs are normally locatedoutside the port towns, whereas no site restrictions apply to CFS. An ICD may have a CFS attachedto it. CFS is treated as an extension of a port/ICD/air cargo complex.

The benefits as envisaged from an ICD/CFS are as follows:—

(i) Concentration points for long distance cargoes and its unitization

(ii) Service as a transit facility

(iii) Customs clearance facility available near the centres of production and consumption

(iv) Reduced level of demurrage and pilferage

(v) No Customs required at gateway ports

(vi) Issuance of through bill of lading by shipping lines, thereby resuming full liability ofshipments

(vii) Reduced overall level of empty container movement

(viii) Competitive transport cost

(ix) Reduced inventory cost

(x) Increased trade flows

1.41 To monitor the growth of ICDs/CFSs, a regulatory Authority in the form of an Inter MinisterialCommittee (IMC) under the chairmanship of the Additional Secretary (Infrastructure), Ministry ofCommerce and Industry, has been set up. It comprises representatives from the Department ofRevenue, Ministry of Surface Transport, Ministry of Railways and the Ministry of Commerce andIndustry. The Committee considers the proposals submitted by Public Sector as well as Private Sectorentrepreneurs for setting up of new ICDs/CFSs at different centres in the country and monitors theirprogress. There were about 30 ICDs/CFSs prior to constitution of the IMC. After its constitution inthe year 1992, the IMC has approved 194 ICDs/CFSs (Annexure - I)

1.42 The proposal for setting up of ICDs/CFSs are examined by the IMC on the basis of followingguidelines—

(a) Feasibility report: A survey/feasibility study must precede the setting up of ICDs/CFSs andcopy of the report should invariably accompany the application for setting up such a facility. Thefacility has to be economically viable for the management and attractive to the users, to the railwaysfor full train movements, and to other transport operators, shipping lines, freight forwarders, etc.

In the background of growing international trade, the infrastructure facilities have to precedethe actual generation of demand. This is particularly important, as such facilities have a long gestationperiod for being fully operationalised.

For approval of an ICDs/CFS, following minimum level of traffic volume is prescribed:

For a ICD 6,000 TEUs (Twenty foot equivalent units) per year (Two way)

For a CFS 1,000 TEUs per year (Two way)

(b) Land requirement: For the ICDs/CFSs proposed to be set up outside the limits of majorcities, a minimum of three acres of land is required and for such facilities inside the city limits/portarea, a minimum area of 1 acre (about 4,500 sq meters) is required. The minimum area requirementfor a CFS would be one hectare (2.5 acres) and for an ICD, it would be four hectares (10 acres).However, a proposal could also be considered having less area, on consideration of technologicalupgradation and other peculiar features, justifying such a deviation.

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(c) Design and layout of ICD/CFS: The design and layout should be the most modern and state-of the-art, equipped with mechanical/electrical facilities of international standards. The layout shouldallow smooth flow of containers, cargo and vehicles through the ICD/CFS, and it should take intoaccount initial volume of business, estimated volume in 10 years and the type of facilities the exporterswould require. The design should broadly encompass features like (rail) siding, container yard, gatehouse and security features, boundary wall (fencing), roads, pavements, office building and publicamenities. The track length and number of tracks should be adequate to handle rakes and for stablingtrains where relevant.

(d) Equipping the ICD/CFS: An ICD/CFS should plan for the most modern handling equipmentfor loading, unloading of containers from rail flats, chassis, their stacking, movement, cargo handling,stuffing/de-stuffing, etc.

(e) Rail head ICDs: The parties, desirous of setting up a rail based lCD, have to provide, at theirown cost, all the infrastructure facilities including land, track, handling equipment for containers,maintenance of assets including track, rolling stock, etc., as per extant railway rules applicable toprivate sidings.

(f) Tariff: Tariff structure and costing is to be worked out as a part of the feasibility study.

(g) General: The main function of an ICD/CFS being receipt, dispatch and clearance of containerizedcargo, the need for an up-to-date inventory control and tracking system, to locate containers/cargo,is paramount. Each functional unit of the facility (e.g. siding, containers yard, gate, stuffing, de-stuffing area, etc.) should have up-to-date, and where possible, online information, about all thecontainers, etc. to meet the requirements of customers, administration, railways, etc. A goodcommunication system and computerization and EDI connectivity is essential.

1.43 The primary functions of an ICD/CFS may be summed up as under:—

(i) Receipt and dispatch/delivery of cargo.

(ii) Stuffing and stripping of containers.

(iii) Transit operations by rail/road to and from serving ports.

(iv) Customs clearance.

(v) Consolidation and desegregation of Less than Container Load (LCL) cargo.

(vi) Temporary storage of cargo and containers.

(vii) Reworking of containers.

(viii) Maintenance and repair of container units.

1.44 For the purpose of Customs clearance, customs staff is provided at the ICDs/CFSs on costrecovery basis. The sanction for posting of officers is issued by the Administrative Wing of the CentralBoard of Excise and Customs. The custodians are required to pay @ 185% of total salary of officersactually posted at an ICD/CFS. The Department of Commerce, after examination of the proposal forsetting up of ICDs/CFSs, issues Letter of Intent (LoI) to the party. Thereafter, the role of thatDepartment is restricted to coordination with the Department of Revenue (CBEC), Department ofShipping, Ministry of Railways and the Ministry of Civil Aviation as and when resolution of problemsas regards operationalisation/functioning of ICDs/CFSs is sought. The jurisdictional Commissioner ofCustoms, after inspection and examination of the infrastructure and facilities developed by party/company for the approved ICDs/CFSs, issues the notification under section 8 of the Customs Act,declaring the facility as customs area, once required infrastructure for an ICD/CFS is developed. Theoperators of ICDs/CFSs are appointed custodians by issuing a notification under section 45 of theCustoms Act, 1962, as per norms of CBEC as laid down.

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Indian Customs EDI System (ICES)

1.45 The Indian Customs EDI System (ICES) is an online workflow based transaction processingsystem, operationalised at all major Customs locations. Currently, the ICES is running in 40 majorCustoms locations and covers over 85% of the country’s international trade. It is the core Customsapplication responsible for all the back-end and EDI processing. The ICES works with an ElectronicCommerce/Electronic Data Interchange Gateway, called ICEGATE, which provides a common electronicwindow to the external world facilitating e-filing, e-payment and helpdesk services to the Customsusers. The system also provides for helpdesk facility. A further addition to the above EDI System isthe Risk Management System, which works with ICES, to assess transaction risk on a real-time basis,in order to decide the course of workflow for each transaction. ICES is presently operational at 18ICDs, 12 Sea ports, eight Air Cargo Complexes and two LCSs. Besides this, Wide Area Network andLocal Area Network facilities are being provided at 12 ports, four Air Cargo Complexes, 38 ICDs and14 LCSs. Of these, ICES implementation at nine ports, three Air Cargo Complexes, 12 ICDs and fourLand Customs Stations are being taken up on priority basis. CBEC’s consolidation project is slated tobe completed by December, 2009.

Central Warehousing Corporation (CWC)

1.46 Central Warehousing Corporation (CWC), which came into existence on 2nd March, 1957,presently operates 35 Container Freight Stations (CFSs)/Inland Container Depots (ICDs) across thecountry. Beside the CFSs/ICDs, CWC is also operating a Land Customs Station (LCS) at Petrapole(in West Bengal), which is spread over an area of 17.06 acres on Indo-Bangladesh border sinceMarch, 1999, for providing support to the EXIM trade through land route.

1.47 CWC is also upgrading the existing CFSs/ICDs, including the one at Kolkata Port Trust, forwhich the Kolkata Port Trust has already provided one acre of land, as the CFS at the said port wasrunning to its full capacity. Apart from the above, the CWC is also taking steps to develop four ICDsat Kannur and FACT Cochin (Kerala), Sita Pura (Jaipur, Rajasthan) and Amritsar on Wagha Border(Punjab); two CFSs at Pipavav Port (Gujarat) and Palta Jetty at Kolkata (West Bengal); and three LCSsat Petrapole (West Bengal), Ghasuapara (Meghalaya) and Raxaul (Bihar).

CONCOR (Container Corporation of India)

1.48 Indian Railways, by virtue of its predominance in transportation of bulk freight and long distancepassenger traffic, is the life line of the Indian economy. The network criss - crosses the nation, bindingit together, by ferrying freight and passengers across the length and breadth of the country.

1.49 In India, marine containers of ISO standards started arriving in the ports from 1972. Initially,the containers were handled in the ports only. However, from 1981-82 onwards, Indian Railwaysstarted transportation of these marine containers to hinterland. Reviewing the situation in 1988, it wasobserved that while the designated container ports in India had made adequate arrangements to dealwith the container traffic, the development of ICDs and the related infrastructure, required forfacilitating multimodal transportation, lagged behind. In view of Indian Railways’ focus on transportationof bulk commodities, a perceived need for an organization, that could manage ICDs, was felt.Accordingly, a Public Sector Enterprise under the Ministry of Railways namely Container Corporationof India Ltd. (CONCOR) was incorporated in March, 1988, under the Companies Act, 1956. TheCompany was set up with the prime objective of developing multimodal transport and logisticsinfrastructure, to support the country’s growing international trade, as well as for the transport ofdomestic cargo in containers, by adopting the latest technology and practices. The company commencedoperations on 1st November, 1989. Network of CONCOR terminals, spread all over the country andcatering to the needs of the trade, consists of 58 EXIM terminals (31 combined EXIM + DomesticTerminals; nine pure domestic terminals; and 18 Pure EXIM Container Terminals, Annexure-II). The

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entire terminal network is interlinked. The company has planned to expand facilities at the existingterminals (Moradabad, Ratlam, Okhla, Nagpur, Tondiarpet, Sabarmati, Guwahati, Whitefield, Dadri,Dronagiri, Sanath Nagar, Kanpur, Irugur, Bhopal, and Jodhpur) due to expansion of business in theseareas. It is also setting up its new terminals at Jalandhar, Rourkela, Durgapur and Khemli. It isenvisaged that Rs. 450 crore would be required as capital expenditure (CAPEX) for this purpose overthe next five years. Besides this, the Ministry of Railways has granted licenses to fifteen agencies,which are also in the process of setting up ICDs. These agencies have already set up ICDs at GarhiHarsaru, Patli and Noli, while the work for the same at Samalkha, Sanhewal, Sonepat and Faridabadwas under progress.

Major Land Customs Stations (lCSs)

1.50 The major Land Customs Stations in India are Attari Rail and Road (Indo-Pakistan Border);Petrapole Road (Indo-Bangladesh Border); Agartala (Indo-Bangladesh Border); Moreh (Indo-MyanmarBorder); Raxaul (Indo-Nepal Border).

Besides the above, there are the other Land Customs Stations which are listed below:—

(i) Indo-Bangladesh Border:—

Sutrakandi/Changrabandha/Radhikapura R.S/Hilli/Old Rangabazar/Manu/Dhalaighat/Khowaighat/Muhurighat/Ghasuapara/Dalu/Baghmara/Mankachar/Dawki/Borsora/Sonamganj/Balat and Ryngku/Golakganj/Dhubri Streamerghat/Demagiri.

(ii) Indo-Bhutan Border:—

Hatisar/Ultapani/Darranga/Jaigaon.

(iii) Indo-Nepal Border:—

Jogbani/Galgalia/Bhimnagar/Sonbarsa/Bhitamore/Bairgania/Panitanki/Pasupatigate/Sonauli/Gauripantha/Banbasa.

(iv) Indo-Myanmar Border:—

Champai/Nampong.

Towns of Export Excellence (TEE)

1.51 The Concept of Towns of Export Excellence under the Foreign Trade Policy (FTP) wasformulated to grant recognition to industrial clusters, with a view to maximizing their potential andenabling them to move higher in value chain and tap new markets. Accordingly, the towns producinggoods of Rs. 1,000 crore or more are notified as Towns of Export Excellence (TEE), based onpotential for growth in exports. However, for Towns of Export Excellence in Handloom, Handicraft,Agriculture and Fisheries sector, threshold limit has been fixed at Rs. 250 crore. Under the saidconcept, recognized associations of units would be able to access funds under Market Access Initiative(MAl) scheme for creating focused technological services. Common service providers in these areasshould be entitled for Export Promotion Capital Goods (EPCG) Scheme. Further, such areas wouldreceive priority for assistance under Assistance to States for Development of Export Infrastructure andAllied Activities (ASIDE) Scheme. As on date, 12 towns, covering various States of India, have beenselected as Towns of Export Excellence. These are Tirupur in Tamil Nadu for hosiery; Ludhiana(Punjab) for woolen knitwear; Panipat (Haryana) for woolen blankets; Kannur (Kerala), Karur andMadurai (Tamil Nadu), Khekra (Uttar Pradesh) for handlooms; AEKK (Aroor, Ezhupunna, Kodanthuruthuand Kuthiathodu, all in Kerala) for seafood; Jodhpur (Rajasthan) for handicraft; Dewas (MadhyaPradesh) for Pharmaceuticals; Alleppey (Kerala) for coir products; and Kollam (Kerala) for cashewproducts.

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CHAPTER-II

Written and oral submissions: Central Ministries/Departments/Board

2.1 The Sub Committee considered the background note on the subject of ‘Towns of ExportExcellence and Export Infrastructure at Airports, Ports, ICDs and LCSs in the Country’, received fromthe Department of Commerce. Besides inviting written submissions, it heard the views of representativesof various Ministries/Departments/Board, on the subject, which are summarized below:—

Department of Commerce

2.2 The representatives of the Department of Commerce (DoC) appeared before the Committeeand submitted that the Department provides some export promotion incentives through variousschemes. The department provided transport subsidy on flowers and fruits from the North East.Besides, the department also worked on the standard schemes administered under Director General ofForeign Trade (DGFT), Duty Entitlement Pass Book (DEPB) Scheme, etc., which applied uniformlyto everybody, including the North-East.

2.3 Regarding infrastructure, the Department had been operating schemes called the Assistance toStates for Development of Export Infrastructure and Allied Activities (ASIDE), under which moneywas given directly to the State Governments for projects for promoting infrastructure for growth ofexports. On the issue of development of infrastructure at River Brahmaputra, for promoting it as aninland waterway and to bring it on the international trade map for navigation of export goods, theDepartment took up the matter in a phased manner and had already spent an amount of Rs. 3,000crore appx. for the purpose.

2.4 About the ASIDE Scheme, which was claimed to be one of the largest schemes, an amountof Rs. 3,664 crore was sanctioned during the Eleventh Five Year Plan. Under this scheme, thedepartment, year-after-year, exhausted whatever allocation was made to it for the purpose.

2.5 On the issue of bringing more towns under the scheme of Towns of Export Excellence asnotified under the Foreign Trade Policy, the towns producing goods worth Rs. 1,000 crores or morewere notified as Towns of Export Excellence (TEE), based on the potential for growth in exports.The threshold limit for the TEE in the Handloom, Handicraft, Agriculture and Fisheries sector wasRs.250 crore. Such notification of towns was based on verification of the requisite data/statistics madeby the Department, for which two benefits were envisaged. First benefit was in terms of theinfrastructure needs under the ASIDE Scheme. In terms of second benefit, these towns had beenextended the liberty to import capital goods under the EPCG Scheme. Regarding the Town of ExportExcellence in the States like Andhra Pradesh and Orissa that undertake the exports activities, theDepartment proposed to coordinate with the DGFT for the purpose.

Department of Revenue

2.6 The Secretary, Department of Revenue (DoR) informed that out of the 346 notified airports,seaports, Inland Container Depots (ICDs), and Land Customs Stations (LCSs) for import and exportpurposes, the Department of Revenue had roughly only fifty establishments on the Customs side,where 85% of the trade was covered. On the Customs side, most of the transactions were being doneon a computer-aided system. The Department was likely to take a considerable time for providing thefacility of computer aided system at all the stations.

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2.7 With regard to selection of airports for extending the benefit of exports infrastructure, theDepartment did not select them on the basis of the States, but went by the volume of trade andexport. For the purpose of notification of an airport as an international airport, the Ministry of CivilAviation first approves an airport as domestic one and then notifies the same as an international airport.After that, the Customs come into picture which handles the cargo related aspects.

2.8 Regarding need to have a roadmap for infrastructural development for promotion of exportscovering various parts of the country in a phased manner, on infrastructure side the Department hadinstitutionalised standing committees on promotion of exports through air and shipping. There was alinkage between the concerned State Governments, the Central Government, and the nodal Ministry ofCommerce and Industry.

2.9 With regard to provision of housing and other facilities, especially in inclement positions likethat of Nepal, Bangladesh border and on Kutch side, there was sufficient staff strength at Raxaul onIndo-Nepal Border, at Petrapole on Bangladesh border and at Attari Road near Amritsar, where properhousing facilities had been provided.

Department of Food and Public Distribution

2.10 During the deliberations with the Committee, the Department of Food and Public Distributioninformed that they had started running container trains between Jawaharlal Nehru Port and Loni onDelhi border, and that another container train facility had been expanded in Kalamboli in Navi Mumbai,besides the existing container train facilities between Loni – Mundra, Loni – Jawaharlal Nehru Port,and Loni – Vizag. The department had plans to convert the existing terminals in Vashi in Navi Mumbai,Amritsar and Nabha into Rail Container Terminals, to handle the export-import trade for which theywere in dialogue with the Ministry of Railways.

2.11 Apart from the existing four Air Cargo Complexes (ACCs), the department proposed to haveone more in Krompet, outside Chennai, adjoining the Meenambakkam airport, so as to convert thesame to handle the export and import air-freight cargo. The Department was running 36 ContainerFreight Stations (CFSs) and wanted to have three more such stations in future at Kannur and Cochinin Kerala, and Pipavav in Gujarat.

2.12 With regard to the Land Customs Stations (LCSs), apart from the one LCS at Petrapole onIndo-Bangladesh border, they had plans to run LCSs in Meghalaya (Ghasuapara), Nathu La on Sikkimborder and at Wagha in Amritsar.

2.13 Regarding expansion plans of the existing infrastructure, they were creating an additionalwarehouse, to handle the export cargo aggregation, wherever a warehouse exceeded its capacity. Theyhad been allotted one acre of land at Kolkata Port, where their CFS was running to its full capacity.

2.14 Regarding the phytosanitary conditions in the warehouses, it was informed that out of the sixthousand manpower, they had 650 people, who were trained in technical aspects of fumigation andcargo disinfestations.

Department of Shipping

2.15 The representative(s) of the Department of Shipping submitted that all the 12 major port wereeither developed or were in the process of development under a 20 years’ perspective plan. The matterof linking the airports to ports was under examination.

2.16 In terms of growth, there had been a phenomenal growth at ports in Kandla, Goa, andJawaharlal Nehru Port Trust (JNPT). However, that much of growth was not there at the KolkataPort. With regard to connectivity in terms of rail and road from the ports, the Committee ofSecretaries had identified certain priorities for rail and road connectivity from various ports.

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2.17 On the issue of creation of a better navigational system especially in the Ganges River,dredging is the primary area where the department had failed as it was weak in dredging equipmentsdue to the reason that the dredging ship was a very specialized technology, for which the worlddepended on two or three major suppliers, and the secondary area is the requirement of jetties.However, there was a programme to have permanent jetties. About the manufacturing of ships, thecountry had the technology for manufacture of small ships.

2.18 Regarding rail connectivity, 12 projects had been identified. Out of this, there were twospecific projects at Paradip Port, which were just to be improved and develop the rail connectivity.Besides this, there were projects at Kandla, Tuticorin, Mumbai, Ennore, Cochin and Haldia. Withregard to coastal shipping, which was one of the missing areas that lacked focus in the past, it wasthe area where each of the major ports was developing a sort of hinterland approach, through whichthe minor ports in the vicinity would get linked to a major port. All the cargo from these areas wouldmove via coastal shipping facilitating exports to other countries, or shipment to other parts of thecountry. These ports would develop linkages for smaller cargo loads from the neighbouring minorports, the major ports would actually become the hubs for their respective areas.

2.19 In the matter of infrastructure at shipping side, the Department had a fairly very largeprogramme of Rs. 1,00,000 crore investment in the Plan period, under which 276 specific projectswould be covered. Out of this, twenty five projects were related to deepening the channels, seventysix projects to port development, involving jetties, berths, etc. All this attracted an investment of almostRs. 32,000 crore. Besides this, fifty two projects were envisaged for procurement, replacement andupgradation of port equipment. Another forty five projects were related to port connectivity.

Ministry of Civil Aviation

2.20 During interaction with the Committee, the representatives of the Ministry of Civil Aviationsubmitted that air cargo sector in the country had not developed to its potential, and the prevailinglevel of air cargo volume was very small. There is tremendous scope for promoting air cargo. Therewere, however, two basic constraints. One was related to infrastructure, and the second to procedures.Regarding infrastructure, the Ministry had started a massive programme of augmenting airportinfrastructure through out the country. Two Greenfield airports were commissioned in Bangaluru andHyderabad during 2008 with enhanced cargo capacity. There is still scope for expansion of capacityat Hyderabad airport. About the infrastructure at Delhi airport, the expansion and modernizationprogramme was in progress and was also moving as per schedule. There was, however, no scopeof augmenting the capacity at the Mumbai airport due to land constraints. Accordingly, approval wasaccorded for building of a Greenfield airport at Navi Mumbai, with the provision to enhance capacityof air cargo.

2.21 Similarly, the Government had given approval for expansion and modernization of Kolkata andChennai airports. It had also given clearance for development of 35 non-metro airports, covering allthe State capital airports. In addition it had established Perishable Cargo Centres at various airports,the important ones being Delhi, Chennai, Hyderabad, Bangaluru, Amritsar, Mumbai, Kolkata andThiruvananthapuram. The Airports Authority of India (AAI) was going to spend an amount ofRs. 12,000 crore on the 35 non – metro airports and two metro airports namely, Chennai and Kolkata.The AAI had been given the mandate to develop the airside facility and the terminal facility whereas,on the city – side facility, including the cargo facility, it was going to be done under the PPP for thesaid 35 non – metro airports.

2.22 The current procedures needed to be streamlined, as the same were throttling the growth ofair cargo, for which the Ministry of Commerce was closely monitoring its Electronic Data Interchange(EDI) Scheme. The said scheme had been implemented at four airports, viz., Delhi, Kolkata, Chennaiand Mumbai and was likely to be extended to other airports in due course under a phase-wiseprogramme.

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2.23 On the issue of airport charges, the Airport Economic Regulatory Authority (AERA) Bill hadalready been passed by the Parliament, and steps were being taken to make it operational by April,2009. About airport development, there was no budgetary support or funding from the Ministry ofFinance, except for airport development in the North-Eastern States. As such, the task of airportdevelopment was being done through IEBR or private funding, and there was a provision for aninvestment of Rs. 40,000 crore under the Eleventh Five Year Plan in that particular sector.

Railway Board

2.24 The representatives of the Railway Board, during interaction with the Committee, informed thatthe Container Corporation of India Limited (CONCOR) was the leading player and 15 other privatecontainer operators had started their operations during 2008. The CONCOR had already got 58container terminals with them, whereas the private operators had get three. The CONCOR wasplanning to spend about Rs. 500 crore in the next five years, for development of various containerterminals. The private container terminals have also plans to spend the money, and were planning todevelop such terminals at the ports and also in the hinterland.

2.25 Regarding construction of more lines and hauling cargo, the capacity, which was a majorconstraint and the Board was providing third lines, where they had two lines, and where they hadthree lines, they were making provision of the fourth line. The Board proposed to build dedicatedfreight corridors for the Western and the Eastern sectors. The Western Corridor was coming right upto Tughlakabad via Ahmedabad, while Eastern corridor, starting from Kolkata, would be built viaAllahabad, Kanpur to Ludhiana. These two corridors would add a lot of container capacity, particularlyfor the Western corridor. For connecting Gujarat and its ports, there were many minor ports, whichwould be connected through feeder routes, which were being developed.

2.26 A Dedicated Freight Corporation Ltd., responsible for development of all the corridors wasbeing setting up. The Corporation had completed the final local survey of all the corridors. With themonetary support from the Government and assistance from Japan in terms of both technology andfinance, the Western Corridor would be coming up.

2.27 Regarding signal system, a lot of upgradation of signals was being done. All the old signalswere being revamped and new electronic signals were being provided at all the important routes.

2.28 In terms of stay arrangements for passengers, the Government had planned to provide 100paid hotels/high level platforms, with minimum cost, across the country. Besides this, they wereincreasing the rolling stock, including the high capacity wagons.

2.29 The Railway workshops required a lot of improvement and they were going to sanctionmodernization of the same.

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CHAPTER-III

STUDY VISITS

3.1 Sub Committee II of the Department-related Parliamentary Standing Committee on Commerce,in order to gather first hand information on the subject of Towns of Export Excellence and ExportInfrastructure at Airports, Ports, ICDs and LCSs in the Country, visited the States of Tamil Nadu(Coimbatore, Tirupur, and Chennai); Kerala (Thiruvananthapuram, Kollam, Alleppey, and Cochin) from18th to 22nd February, 2008; Sikkim (Gangtok, and Nathu la), Assam (Guwahati), Manipur (Imphal,and Moreh on Indo-Myanmar border), Tripura (Agartala and Land Customs Station at Indo-BanglaBorder) and West Bengal (Kolkata and Majerhat on Indo-Bangla Border) from 24th to 31st May, 2008;Ahmedabad (Ahmedabad Airport, Sabarmati Concor Terminal, CWC Terminal at Adalaj), Mumbai(CWC Terminal at Logistic Park and Impex Park at Navi Mumbai, JNPT, Mumbai Airport), Bangaluru(Bangaluru Airport and Whitefield Concor Terminal), Hyderabad (Hyderabad Airport, SanathnagarConcor Terminal and CWC Terminal at Kukatpally) and Visakhapatnam (Visakhapatnam Airport, Port,Concor and CWC Terminal) from 4th to 9th September, 2008; and Greater Noida (ICD and CWCTerminals), Amritsar (Amritsar Airport, CWC Terminal, ICDs, and LCS at Attari), Ludhiana (Town ofExport Excellence, and Pure EXIM Container Terminal at Dhandharikalan), Panipat (Town of ExportExcellence), Mundra Port and Kandla Port in Gujarat from 27th November to 1st December, 2008.The feedback received by the Sub Committee is summarized in the succeeding paragraphs.

Export Infrastructure at Airports, Ports, Inland Container Depots (ICDs) and Land CustomsStations (LCSs) in the Country

Airports

Coimbatore Airport

3.2 There are six Inland Container Deports (ICDs), one Air Cargo Complex and one InternationalAirport situated within the Commissionerate of Coimbatore, which cater to the need of importers andexporters. Flights from the International Airport are being operated to Sharjah, Singapore and Colombo.Major items of import are gold, machinery and plastics, whereas readymade garments, textile machineryand tea are the major items of export.

3.3 The Air cargo was started on 10th July, 1995 and was operating at ICD, Singanallur. From1st November, 2001, it shifted its operations from ICD, Singanallur to Coimbatore Airport. The AirCargo Terminal at the airport was commissioned in 2001. A walk-in cold storage facility was availablefor perishable cargo. There was a proposal for augmentation of storage space of export/import cargoand that the Electronic Data Interchange facility was yet to be introduced at the Airport. There wasa need to equip the Air Cargo Complex, Coimbatore with various sophisticated equipments andamenities, for smooth functioning.

Cochin Airport

3.4 The Cochin International Airport Limited (CIAL) was in the process of creating a full fledgedCargo Village, capable of handling air freight, sea freight, rail freight and road freight – Multi ModelTransport. As an immediate step, CIAL proposed to provide immediately various additional facilities likeExclusive Cargo Freighter Parking Bay; Equipments for Freighter handling; Introduction of e-Trade;Revamping and remodeling existing ACC, exclusively for General Cargo operations.

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Guwahati International Airport

3.5 Presently, there was only one International flight from Guwahati to Bangkok on everyWednesday and the route was Guwahati/Bangkok/Guwahati, due to which the passengers had to faceinconvenience, as they had to stay in Bangkok for six days. International flights from Guwahati toThailand; Myanmar; Bangladesh; China; Malaysia, etc. should be introduced, as the direct air connectivitywould considerably improve International Trade and Tourism. There was a large Air Cargo Complexfor EXIM, with sufficient cold storage, for storing perishable horticulture and agro products.

3.6 Guwahati was a big business hub in the North East. Though there was also an internationalairport, yet it seemed to have been overlooked in terms of infrastructure that matches internationalstandards. Due to lack of proper focus and promotional policies on the part of Government, peopleof the area had been deprived of moving to international destinations, to sell out their products. TheRiver Brahmputra, for which the Government had allocated an amount of Rs. 270 crore to developit into a better navigational system, could be used effectively for commercial purposes, so as to getcloser to the Bay of Bengal, which, in turn, could help the people reach international destinations.

Kolkata Airport

3.7 The International Air Cargo terminal at Kolkata Airport, which was commissioned on5th October, 1975, was the first Air Cargo terminal in the country. It was well connected with roadinfrastructure for smooth functioning of air cargo services. Various airline agencies, connected withthe clearance and pre-shipment formalities, were in-housed in the Air Cargo Complex. The Cargoterminal had three wings for processing of Export/Import Cargo and unaccompanied baggage (Import),besides Disposal Unit for disposal of unclaimed/uncleared cargo. Of late, there had been a spurt inexport of agro-products like vegetables, fruits and flowers through this airport. Agri-products werealso coming from the north-eastern States, with destinations outside the country. The present availablecold storage was neither adequate, nor proper. For the perishable goods, the airport needed movementof aircrafts, with adequate facilities of freezing tank, failing which the dispatched perishable goodswere liable to be declared unusable when the same reached the destination. This made the localexporters route their cargo through other airports, at extra costs. It was submitted that the airportshould provide the facilities to pick up agri-products coming from north-eastern region throughdomestic airlines, without involving a third party handling from domestic cargo shed to internationalcargo shed, involving extra cost and time; direct booking of cargo by air for export may be allowedfrom the distant domestic airports in north-eastern region. Air cargo shed should be equipped with adocumentation cell, with facilities for direct communication at all the airports.

Ahmedabad Airport

3.8 Sardar Vallabhbhai Patel International (SVPI) Airport has scheduled connections with NewYork, Sharjah, London, Kuwait, Muscat and Dubai. Airports Authority of India operates the SVPIAirport, round the clock. It has a New Domestic Departure/Arrival Terminal Building, with a capacity800 Departing/arriving passengers. Besides this, a new International Terminal Building, an areaof 41,000 sq. meters and a passenger capacity of 800 arriving passengers + 800 departingpassengers, was under construction, with a cost of 290 crore, with a target date of completion of31st March, 2009.

Air Cargo Complex, Ahmedabad

3.9 The Air cargo complex, set up in 1977 by the Government of Gujarat, helps importers andexporters to carry out their operations from Ahmedabad. It was privatized in March, 2004 and handled14,337 MTs of cargo during 2007-08, valued at Rs. 27,000 crore. The post - privatisation details ofthe various initiatives taken by it are:—

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– Added 3,000 sq. ft of warehouse space;

– Created cold room 2° to 20°;

– New Strong room for diamond;

– Introduced bonded trucking;

– Procured three forklifts, stackers, trollies, X-ray machine;

– Fully computerized operation;

– Obtained ISO 9001-2000 certification;

– CCTV system; and

– Created office space for CHA.

3.10 Fruits and vegetables, Dyes, chemicals, Petroleum products are the parts of International anddomestic trading. The Air Cargo Complex is facing problems related to warehousing space anddedicated cold storage for perishable commodities. A need for maintenance of the existing levels ofroyalty share and allocation of land for a tenure of 15 years in respect of the cargo operators at theAirport was being felt.

Mumbai Airport

3.11 The Mumbai Airport is India’s number one airport in cargo volumes, and it falls among top40 airports in the world, serviced by world’s top international airlines. It is a major internationalgateway and transit point. MIAL (Mumbai International Airport Limited) and Air India (AI) are theTerminal operators for General cargo, while Air India is the Terminal operator for perishable cargos.Express Industry Council of India is the terminal operator for Courier. MIAL and AI share an exporttraffic of 6,590 and 3,590, respectively. The ICEGATE system, at times, malfunctioned causing unduehardships to the customers for no fault of theirs. It was submitted that despite repeated requests fromcustomers, the authorities were not taking remedial measures, to rectify the system.

Bangaluru International Airport

3.12 The export infrastructure at the new Bangaluru airport consists of two separate cargo terminalfacilities, built and operated by Air India SATS (Singapore Air Terminal Services), a Joint VentureCompany and Menzies Aviation Bobba (Bangaluru) Pvt. Ltd. The BIAL Air Cargo Agents Association(ACCAI) and Bangaluru Customs House Agents’ Association (BCHAAL), raised an issue for provisionof a state-of-the-Art Cargo Village, fully equipped with modern warehouse and related facilities, besidesadequate office space for efficient and timely functioning of the cargo handlers, for the overall benefitof the EXIM trade, within the BIAL Complex, for the forwarders/CHAs. The BIAL officials assuredto provide permanent facilities by 2011. The matter regarding unilateral collection of higher charges,than the AAI Tariff by the Menzies Bobba and Air India SATS was also raised.

Hyderabad Airport

3.13 Hyderabad is in the geographic centre of India which makes its airport a strategic hub, forboth the domestic and International air traffic. The new airport has been developed by GHIAL, andis located 22 km from the city centre of Hyderabad. A modular terminal building has been built toaccommodate 12 million passengers annually, with starting capacity of seven million.

GMR Hyderabad International Airport Limited (GHIAL)

3.14 GMR Hyderabad International Airport Limited is a public-private joint venture between GMR

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Group, Malaysia Airports Holdings Berhad, and both the State Government of Andhra Pradesh andAirports Authority of India (AAI), with GMR Group being the majority shareholder. GHIAL has builtthe new Hyderabad International Airport, based on a unique public-private partnership model, thepromoters, led by GMR Group have firmly established Hyderabad as a preferred destination on theglobal map. GMR also manages Delhi Airport and Airport in Istanbul. The Government of AndhraPradesh, over the past few years, had recorded significant economic growth, primarily contributed bygrowth in secondary and tertiary sectors. Airports Authority of India (AAI) is the agency for Indianairports and is responsible for developing, managing and operating all major airports in the country.

Rajasansi International Airport, Amritsar

3.15 Air Cargo Complex at the Rajasansi International Airport was notified for export and importin 1980. Central Warehousing Corporation has been appointed custodian of export/import cargo for thisAir cargo complex. The Airports Authority of India (AAI) has also been appointed as custodian foranother Air Cargo Complex. There was sufficient area for handling of import/export cargo at CWCbut no major handling of import and export cargo from CWC takes place. The Sub Committee wereinformed that the traders have been facing problems due to non-availability of x-ray facility, which isused for screening of export goods by Airlines Security, and equipments for loading and unloading ofheavy cargo. Various suggestions were made by the traders during discussion with the Sub Committee.There were concession in airline freight rates; waiver of license fee by Airports Authority of India;implementation of EDI system at the airport, to avoid delay in duty drawback payments to exporters;and permission to allow bonded trucking from Delhi into Amritsar Airport were made by the traders.

International Air Cargo Terminal, IGI Airport, Delhi

3.16 This is the first semi mechanized integrated common user Cargo Terminal and the biggestintegrated cargo terminal in the country, by size. It handles 2nd highest cargo volumes after Mumbai,30% of the total international cargo of the county is handled through this terminal. It has the LowestDwell Time in terms of processing time of cargo in the country. It has the facility of the EDI andBar Code system, for the benefits of the customers. There was a proposal for provision of two cargoterminals (existing terminal and Greenfield terminal); integrated express terminal; and logistics facilities(on Airport facilitation to trade). Despite various measures for smooth functioning of the cargoterminal, there was a need to provide many things, for ensuring proper functioning of the terminal viz.,relaxation of access for cargo carrying vehicles to and from the Airport (intra/inter city), to facilitatethe cargo trade; constitution of a team of all stakeholders namely, Airport Operator, Airlines, Customersand Trade representatives, to jointly study few leading airports and suggest improvements to benchmarkwith international standards; and encouragement for building up Unit concept for cargo handling, inline with international best practices, which will reduce processing time; reduction in landing chargesfor cargo flights to incentivise export of India; and provision of suitable space under the concept ofCargo Village for stake holders at the airport. The reduction in landing charges was likely to facilitatethe airlines to consider India for Cargo Hub, which is totally missing, as most of the major Hubs inthe world have maximum transit tonnage from other international airports.

Ports

Cochin Port Trust, Cochin

3.17 The Cochin Port is one of the Major Ports in the Southern Peninsula, catering to the hinterlandof Kerala, Western Tamil Nadu and Southern Karnataka, and had adequate infrastructural capabilitiesto handle import/export cargo. The Port had two Wharfs and three Oil Tanker Berths and a ContainerTerminal, to handle liquid bulk, dry bulk, container and general cargo. The Port also had sufficientcovered (57,485 Sq. mts) and open (1,00,000 Sq. mts) storage area for storage of cargo. Tank

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Farms had also been set up in the Port land by the private operators, for the storage of liquid bulkcargo.

3.18 The Port had excellent Rail and Road connectivity. It was connected to the South Railway Gridthrough the Harbour Railway station, and was connected to NH-47, NH-17 and NH-49. It also hadan added advantage of being connected through the National Waterway No.3, connecting Kollam toKottapuram.

Kolkata Port Trust (KoPT), Kolkata

3.19 At the Kolkata Port, which consisted of Kolkata Dock System and Haldia Dock system, thecapacity of the Docks had reached the saturation point with the increased movement of cargo, andneeded immediate expansion. There was also an urgent need for improvement of the connecting roadto Kolkata Dock, which is being operated by a single road, i.e. the Circular Garden Reach Road (KarlMarx Road). The rail link bridge at Khidderpore Dock needed to be repaired/replaced, to facilitate entryof heavy vehicles from the north side to Kolkata Dock area. With a view to modernize the existinginfrastructure, an outlay of Rs. 996.06 crore has been projected in the Eleventh Five Year Plan forKolkata Port Trust (KoPT), for execution of various projects, which included berths, related infrastructureand logistics support; craft and equipment; civic infrastructure and deepening of channel; andconnectivity.

Jawaharlal Nehru Port Trust

3.20 The Jawaharlal Nehru Port is the biggest container handling Port in India, handling around 60%of the country’s containerized cargo, crossing the historic landmark of four million TEUs in containerthroughput. It is ranked 24th among the top 100 Container Ports in the world, Having set for itselfa long term goal of achieving 10 million TEUs by the year 2014-15, JNP throws open an array ofworthwhile opportunities for Shipping Lines and Shippers, to ferry their cargo to various sectorsacross the globe. There are world class infrastructures, with impeccable technological standards.Facilities at JNP comprise a full-fledged Customs House, above 30 Container Freight Stations and alarge number of lCD’s across the country. Excellent hinterland connectivity, both by rail and road, aswell as proximity to Airports, Hotels, etc, gives the Port an extra edge, to address the shippers’ needsefficiently and promptly.

3.21 Its future development plans include deepening and widening of Main Harbour and JN Portchannel; road infrastructure: extension of Container Berth, with other facilities at the Port; rail transportlogistic studies; improvement of internal Port roads; development of pavement behind Shallow DraughtBerth; widening of Port road from Central Gate Complex to Junction near PUB and allied works;widening of first approach bridge to container berth and construction of protective structure to landingJetty; infrastructure facilities for Port based Industries, etc. There was an immense problem ofcongestion in handling and clearance of containers at the Port, which was a common feature at allthe ports, airports, as well at various ICDs and LCSs.

Kandla and Mundra

3.22 Kandla Sea Port, the largest port of Gujarat, situated in Kachchh District, was inaugurated in1956 and was converted as major Port with effect from 20th February, 1964. It is the gateway portfor States like Rajasthan, Punjab, Haryana, Jammu and Kashmir, and the rich Industrial belt of Westand North India. This is an all-weather port, that mainly handles agricultural cargo and other bulkliquid cargo.

3.23 Mundra is an all-weather port, having a natural draft of 17 Mts., and notified inSeptember, 1997 for operation by Gujarat Adani Private Limited. The port is specialized in handling

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bulk import and export cargo, including liquid cargo. The loading and unloading is mostly done by aconveyor system.

Infrastructure and facilities at Kandla and Mundra ports

3.24 Kandla port is equipped with modern euipments and facilities. Kandla Port has 12 jetties fordry cargo and six jetties for liquid cargo. In addition, it also has two virtual jetties for dischargingpetroleum products to shore tanks. There are six container freight stations, operating in the closevicinity of the port, where stuffing, examination, and storing of the export cargo is done before theirexports. There are 210 liquid tanks, to store approximately 9,00,832 KLs liquid cargo. Further, thereare 10 customs-bonded warehouses to store dry cargo. Various issues being faced at the Kandla Port,were renewal of various lease agreements; exclusive jetty for export of salt; utilization of Tune BargeJetty; construction of New Jetties at Port; and Operation of bigger type of aircrafts at KandlaAerodrome.

3.25 Mundra Port has nine jetties for dry cargo and two jetties for liquid cargo. There is an ultramodern conveyor system to handle the bulk cargo. There are 65 liquid tanks, to store approximately2,78,829 KLs liquid cargo. Since July, 2003, a container terminal started operating by MundraInternational Container Terminal. There are 10 container freight stations, operating in the close vicinityof the port. There has been a healthy growth of exports at Mundra Port, as against export of 1,96,233containers upto October, during 2007-08, 2,34,731 containers with a growth of about 20%, had beenexported during the same period of 2008-09.

Export Infrastructure at ICDs and LCSs

lCD, Irugur (Coimbatore)

3.26 The ICD was started in 1983 at Railways Goods Shed, Coimbatore which, due to spaceconstraints and easy accessibility, was shifted to Irugur on 18th February, 2005. This ICD dealsmainly with the exports of machinery, tea and garments and import of machineries. All the customsformations in Coimbatore Commissionerate work on the manual system, since Electronic DataInterchange (EDI) was yet to be implemented. In order to enable speedy assessment of bills, clearanceof cargo, processing of drawback claims and disbursal of drawback, EDI was the need of the hourfor, which the matter had been addressed to the Central Board of Excise and Customs for implementationat the earliest.

Inland Container Depot (ICD), Amingaon (Guwahati)

3.27 The ICD at Amingaon was the only one serving the entire North-Eastern Region. In terms oflocation, the ICD was at a dis-advantageous position, as the nearest sea port Kolkata was at a distanceof 1,100 kilometers. The primary item of export was tea. There was hardly any import, and theexporters had to pay even for bringing empty containers from Kolkata to load their exports. Therewas a need for a concession of 6% on rail freight, which was presently being provided by theRailways for full rake movements from in and out of the North East, which should be extended tocover export rakes from lCD, Amingaon, being operated by the CONCOR.

Inland Container Depot (ICD), Sabarmati, Ahmedabad

3.28 The lCD, Sabarmati, the flagship Depot of Northwest Region, commenced its operations inSeptember, 1990, just as a Rail transfer facility and had many firsts to its credit, as it had achievedmany milestones since its inception, despite severe competition with Container Freight Stations (CFSs)operating in proximity to the ports. This ICD provides excellent rail/road connectivity for containerizedcargo to gateway ports having worldwide access. It serves the trade in the hinterland of Gujarat and

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Western Rajasthan. Besides, the other milestones achieved are Administrative building commissioned inJanuary, 1994; Export CFS made operational in September, 1995; road transportation facility commencedin January-1996; part of CFS dedicated to Imports in September, 1997; use of IT for computerizeddocuments commenced in 1997; CC paving done for smooth operation in ICD; LCL-bonded truckingfacility started in October, 2000; Air Cargo bonded trucking facility started in October, 2000; HighSpeed Trains (BLC wagon) introduced in November, 2000; new Import warehouse commissioned inMay, 2002; ISO 9001:2000 certificate from BIS obtained in May, 2003; Bonded Warehousingfacility Commenced in January, 2004; commissioned examination facility for BLC rakes in ICD inJanuary, 2004; faster connectivity provided to Mundra and Pipavav Ports by CONRAJ rail services inFebruary, 2004; remote printing of Inland Way Bills commenced in September, 2004; Integrated withEXIM Terminal Management System (ETMS) for centralized work across India with online trackingof containers in February, 2004; new Warehouse for export made operational in March, 2006; thefacility for Personal Digital Assistant (PDA) statement provided to customers in Auto send mode inApril, 2006; Customer Query Terminal set up in June, 2007; and the facility of sending Train Summaryby e-mail commenced in February, 2008.

3.29 ICD Sabarmati is handling more than 400 commodities and provides services to more than1500 major exporters of the State. With regard to Exports and Imports, the ICD has become the nervecentre of Gujarat for Road/Rail/Sea cargo and container movement. It has well-laid out strategies,operational network, skilled manpower and systems, geared up to provide services to valuable clients.This had given every reason to the EXIM trade fraternity to look up to CONCOR for prompt, efficientand economical mode of transportation, to their utmost satisfaction. The ICD offers Transit Warehousingfacility, CFS Stuffing and factory stuffing facility, Customs Services, alongwith the officials forclearing exports and Imports cargo, LCL cargo containers. All these services are provided at one place.All shipping lines are maintaining inventory of empty containers and hence, customers have a widechoice. It provides hassle free, single-window clearance to its customers, in an efficient manner.

Central Warehousing Corporation (CWC), Ahmedabad

3.30 The Ahmedabad Region of the Central Warehousing Corporation (CWC), which came intoexistence during 1969, operates 31 units in the Gujarat State, with a capacity of 7.46 lac MTs. Apartfrom General Warehousing activities, the Corporation has been operating seven Container FreightStations/Inland Clearance Depots in Gujarat, including state-of-the-art CFS facilities at Kandla andMundra Ports. These are:—

(1) Container Freight Station, Gandhidham;

(2) Inland Clearance Depot, Dashrath (Baroda);

(3) Inland Clearance Depot, Valvada;

(4) Container Freight Station, Kandla;

(5) Container Freight Station-II (OCY) , Kandla;

(6) Container Freight Station, Mundra; and

(7) Container Freight Station, Adalaj.

CFS Mulund, Mumbai

3.31 CFS Mulund, Mumbai was established in year 1991, to ease the pressure of JNPT and MumbaiPort. As the Indian economy opened up and gathered momentum in the early 1990s, the imports andexports through Mumbai Port multiplied and strained its already overworked infrastructure, leading tocongestion and delays in cargo clearance. The CFS Mulund, with its excellent Rail and Road

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connectivity, grew into a popular dry port drawing not only Mumbai-based trade, but also that fromthe hinterland. With this, import clearance at Mulund was also introduced. Various other initiatives, likeintroduction of EDI System, trust-based Regime for quick clearance of Export Cargo; touch screenfacility for instant monitoring of Shipping Bills; core banking facilities, etc., were also introduced, tofacilitate the exports.

CFS, New Mulund, Mumbai

3.32 Container Freight Station (CFS), New Mulund is one of the pioneers Container Freight Station(CFS) in Mumbai, which commenced operations in the year 1995. Presently, this is the only CFSlocated in the vicinity of Municipal limits of Greater Mumbai, and is equipped with the entireinfrastructure required for any CFS, to serve the EXIM business in Mumbai area. The CFS catersnot only to the Mumbai-based trade, but also to the hinterland EXIM traffic, due to its excellent railand road connectivity. The facility of duty drawback on exported goods was also introduced in April,2001. The CFS is providing services of a specialized customs-friendly logistics services in three majorbusiness streams-Import, Export and Empty Repositioning.

Central Warehousing Corporation (CWC), Mumbai

3.33 The Central Warehousing Corporation has been providing scientific storage facilities, to storeagricultural produce and notified commodities, at reasonable cost. In order to expand its activities, ithas been diversifying into different areas. The Corporation has also been providing Pest ControlServices under Disinfestations Extension Service Scheme since 1968, for the benefit of farmers,traders, exporters, importers, shipping agents, etc., and has made tremendous progress in this field.

3.34 On the request of JNPT authorities, the Corporation converted one of its Warehouses atKalamboli as Export – CFS in the year 1989 and, thereafter, acquired 16 Ha. land from CIDCO, tostart first CFS, catering to JN Port in Dronagiri Node Warehousing Complex, followed by CFS-Distripark in 12.5 Ha. Land, CFS – Impex Park in 3.5 Ha. land, and CFS – Logistics Park in 30 Ha.land. All the five CFSs are presently handling 22,000 – 25,000 TEUs (loaded — Import and Exportcargo containers) per month. The Corporation has ventured into creating a railway siding infrastructureat two of its CFSs viz., CFS – Kalamboli and CFS – Logistics Park, which will go a long way inreducing the logistics cost on account of secondary transportation and handling for transporting thesegoods to CFS, as exporters can bring the export cargo directly into the CFS, where it will beunloaded, cleared by Customs and stuffed into the containers for exports.

Inland Container Depot, Whitefield, Bangaluru

3.35 The Inland Container Depot (ICD), located in the center of Bangaluru’s fastest growingIndustrial hub at Whitefield at a distance of 35 km from the Bangaluru International Airport, wasspread over an area of 50.61 hectares. The ICD caters to all the major industrial centres of Karnatakaand serves the trade of North-West Tamil Nadu, South-West Andhra Pradesh and North Kerala. ThelCD, in terms of infrastructure for the benefit of customers, has various Cargo and Container HandlingFacilities viz., three full-length rail sidings, each with capacity of 45 wagons for handling trains; ninewarehouses, having a total covered area of 27,225 sq. m for storage of International Cargo; onewarehouse, having an area of 1,500 sq. m for storage of Domestic Cargo; full-fledged customs facilitywith EDI connectivity; connectivity to all the major Gateway ports, i.e. Chennai, Tuticorin and Cochinby Rail and Road; facility for FCL (Full Container Load) and LCL (Less than container Load) cargobookings; bonded warehouses, with facilities for multi – stack and refrigerated cargo; reefer powerpoints; abundant paved area for stacking of containers; large truck/trailer parking area, with weighbridgefacility; bonded trucking of air cargo to major Airports in special containers, and trained Labour forstuffing/destuffing/packing/repacking, with special expertise to handle coffee, granite, gherkins andengineering goods for export. Besides, it has other public amenities like Bank Extension counter for

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all Banking services; Office space for customers and Business center. However, despite all out effortsby the concerned authorities to improve the standards of infrastructure to help the traders, there weresome bottlenecks, particularly in terms of connectivity. There is no proper rail connection to CochinPort. Similarly, there is no convenient rail connection to Tuticorin Port. Chennai (Madras Port) wasthe only source for lCD, Bangaluru. The handling charges, compared to private CFS and CWC, werehigher and the Container road movement charges from out of the ICD to any port were about twicethe market price (Container Corporation of India); CFS did not have proper lighting system. Therewere no proper facilities for storage (most of the packages stored beyond three days was full of birddroppings, accumulation of dust on packages). The waiting period for getting container/closed bodytrucks ranged from two to three days, resulting in delay in shipping the goods. For the full importcontainer from Chennai to Bangaluru lCD, it took five to six days. If the goods were to come on LCL(Less Container Load), it took around 12 days. These goods/raw materials, were meant for exportproduction, and because of such delays in getting the imported materials, exporters were facingdifficulty to keep up their delivery schedules in addition to the locking of their capital, etc. Handling-Bad handling in CFS was also noticed. Most of the packages got damaged due to careless handlingat the time of loading/unloading.

lCD, Sanathnagar, Hyderabad

3.36 Inland Container Depot (ICD), Sanathnagar, was set up in the premises of Railway Goods shedcomplex, Moosapet, Sanathnagar, Hyderabad, in December, 1990, for handling and transportation ofcontainers. Subsequently, a full-fledged rail linked ICD was commissioned in June, 1998, to cater tothe needs of Exporters/Importers, connecting hinterland of Andhra Pradesh, Karnataka and Maharashtra.In terms of infrastructure, the ICD has two warehouses of 4,200 Sq. mts and 2,100 Sq. mts,respectively, for handling and storage of Export, Import and bonded cargo, and Strong room facilityfor high value items. It has a paved area of 66,000 Sq. mts with container stacking capacity of 3,000TEUs. It also has one full-length Rail siding of 45 Wagons, to accommodate a 90 TEU ContainerFreight Train.

CWC, Hyderabad

3.37 CWC Hyderabad region was set up in the year 1967, for operating public Warehouses in theState of Andhra Pradesh. The State is predominantly agri-based and, as such, CWC is catering to thestorage needs of farmers, traders and others. The Corporation also set up a Container Freight Stationat Kukatpally, Hyderabad, in February, 1998, as part of its diversification activities.

CONCOR, Visakhapatnam

3.38 The Rail linked Container terminal was commissioned for transportation of containers by railfrom Visakhaptnam Port Trust railway yard in December, 2002. Keeping in view the potential anddemand of CFS business, a full fledged rail linked container terminal, adjacent to the VisakhapatnamPort, was commissioned on 30th April, 2005, for handling of Exim traffic and Domestic traffic. Theterminal has a natural locational advantage in terms of connectivity to Visakhapatnam Port, IndianRailway network and National Highway network. As a result, the terminal serves not only itsimmediate hinterland belt (various districts in A.P), but also a part of Madhya Pradesh, Chhattisgarhand Orissa, due to its locational advantage. The main Exim cargo being handled at this terminal isFerro Crome, Mill Scale, refrigerated traffic, cashew nut, cotton bales, machinery, refractory bricks,etc. Domestic cargo is dispatched in containers to different destinations viz., Tughlakabad (NewDelhi), Phillaur, Raipur, Khodiyar, Singrauli, Majerhat (Kolkata), Rourkela, Raniganj. Rashtriya IspatNigam Limited (RINL). Visakhapatnam offers considerable volume on a regular basis. The terminal isequipped with the facilities like one warehouse of 2,000 Sq. mts, for storage of Export and Import

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cargo; Paved Area of 20,000 Sq. mts, with container stack yard having capacity to stack 1,500 TEUs;HT Supply of 150 KVA with back-up of one DG Sets (82.5 KVA); one full length Rail siding whichcan accommodate a full rake; 05 Reefer Points, for Export of Aqua products in reefer containers.

3.39 Apart from above, following amenities have been provided to ensure the smooth functioningof the terminal:—

(a) Round-the-clock Security.

(b) Day/Night operations with 04 High-Mast flood light tower lights.

(c) Fast customs clearance by Customs team under one superintendent of Customs and onepreventive officer.

(d) Full fledged container repairing facility.

(e) E-mail and internet linkage with all CONCOR terminals.

(f) 60 MT capacity electronic weigh bridge.

Inland Container Depot, (CWC), Surajpur, Greater Noida

3.40 ICD, Surajpur, which commenced in January, 2004, is an extension of the Delhi Region ofCWC. The Warehouses under Delhi region are mainly handling industrial goods, food-grain stocks instorage in geographical area of Delhi, Ghaziabad, Sahibabad, Gurgaon and Faridabad, i.e. in NCR.Various features of this ICD are a total plot area of 25.38 acres; covered area of 7,242 sq. mtrs, anda Load container yard, measuring 19,920 sq. mtrs. Besides, the ICD, there are other players like StarTrack Terminals, Albatross, CMACGA and Trident Terminals, which have also started their ICDs onthe leased land, within a distance of nearly 1/2 km. from CONCOR-ICD, as the feeder ICDs forCONCOR rail-link ICD. All these ICDs altogether had affected the business of ICD, Surajpur, onaccount of their locational advantage and lower transportation cost and traffic handling cost, becauseof comparatively lesser moves in comparison to ICD, Surajpur (Greater Noida). There was a greatdemand of general warehousing space by the trade. In order to cater to their requirement of generalwarehousing space, a decision had been taken to convert a part of ICD area into a general warehouse,for a better utilization of infrastructure on commercial lines, with adequate viabilities.

Inland Container Depot (CONCOR), Dadri, Greater Noida

3.41 ICD, Dadri, the flagship Depot of North Central Region commenced its operations in January,2004. The terminal is designed to handle one million TEUs per annum and, capacity wise, the biggestContainer Terminal in Asia. It constitutes a major landmark in the development of containerization inthe country.

3.42 The Northern hinterland accounts for the largest volume of containerised cargo for both exportand import traffic. Market research has consistently projected a growth of 15% to 20% in the volumeof containerized traffic in the northern hinterland, based on which CONCOR, as far back as 1996,hacf planned this mega terminal, designed to cater to the growing demands in this area.

3.43 This terminal is located at Dadri, Greater Noida, U.P., in the vicinity of Delhi (approx. 45 km)and covers the catchment area of Western UP, the Terai, parts of Haryana and Delhi. It is a new state-of-art ICD, covering a vast area of 110 hectares. The first developmental phase already completed,has created a handling capacity of 0.5 million TEUs per annum. The ultimate capacity developmentprovides for a handling of one million TEUs per annum. It has an excellent rail linkage through DadriRailway Station on the arterial freight corridor of Delhi-Howrah route, forming a part of the GoldenQuadrilateral of the Indian Railways. Dadri has also been provided a link to both the proposed

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Dedicated Freight Corridors (Eastern and Western) of Indian Railways. During interaction with thetraders at the ICD, it was brought to the notice of the Sub Committee that the approach road to theICD was very narrow and affected the business at the ICD. There was an urgent need to constructan over-bridge for smooth flow of traffic, for which the UP. Government had yet to acquire the land.The Department of Commerce should coordinate with the Government of U.P. so as to expedite theconstruction work.

ICD, Dhandari Kalan, Ludhiana

3.44 This flagship Depot of Northern region commenced its operations in March, 1990, just as aRail transfer facility. It has achieved many milestones since its inception. It is situated on the mainline on Jammu-Amritsar-Delhi route, located next to Ludhiana Station. ICD-DDL is spread in an areaof 3,507 acres and is contiguous with the DOL Railway Station yard. Ludhiana has its name in Punjaband whole of India, due to large number of cottage and small scale woolen industries of Hosiery, andis also rightly known as “The Manchester of India”. This city is ideally located in the middle of theState, conveniently approachable from the industries spread all over the State. Therefore, ICD,Dhandarikalan acts as a Hub Centre. The ICD caters to the other neighbouring States of HimachalPradesh, Jammu and Kashmir, Haryana and Rajasthan.

3.45 The ICD has modern infrastructure, 90% of the area is paved with concrete block flooring,using latest technology. There is a modern warehouse, both for export and import handling of cargo,with an area of 3,000 sq. mts. Another warehouse, measuring 2,000 sq. mts., is being utilized for Lessthan Container Load (LCL) consolidation. The terminal has the facility of customs clearance of exportand import cargo and storage of customs cleared cargo.

3.46 There are more than 800 exporters and as many as 300 importers, using CONCOR facility ina big way. The CFS of the terminal has also been notified by Customs for clearance of Air Cargoto/from CFS to Amritsar, Airport.

Container Freight Station, Ludhiana

3.47 Punjab State Warehousing Corporation set up its first Container Freight Station (CFS) inFocal Point Ludhiana, to handle Export – Import containerized cargo and was commissioned on9th March, 1990. To meet the demand of the trade and industry, handling of Import cargo was startedin June, 1990, for the first time. The receipt of Export cargo, Custom Examination, stuffing of Exportcontainers and de-stuffing of Import cargo takes place at CFS Punjab State Warehousing Corporation,(PSWC), whereas lCD, Dhandari Kalan (CONCOR) handles the movement of containers by Railwayflats. PSWC also introduced the movement of Export Loaded Containers by road to Port of ExitBPTC/JNPT/NSICT, Kandla and Mundra, to reduce the transit time and movement of containers,without waiting for the formation of full train load. The handling and transportation of Export AirCargo from CFS Ludhiana through Customs Bonded trucking was also started.

lCD, Babarpur, Panipat

3.48 The lCD, Panipat, situated at village Baholi, covers an area of 6.75 acres. The shed has threebays for loading the cargo and has three entry points for off-loading the loads for export. The workat ICD at present relates to export only, for both drawback and non-drawback. The major exportitems from ICD Panipat are cotton durries, woollen carpets and made ups. The main destinations areEurope, USA, UK and Australia. This ICD had drawback facility only till 17th May, 2006. At present,export for only Drawback entitlement is being held by this port. No Import or DEPB consignment isbeing dealt by this port till, date due to lack of basic infrastructure. M/s Container Corporation ofIndia, who is the custodian of lCD, has been requested many a time to provide the infrastructure tostart Import, but nothing has been done by it in this regard. The ICD requires a lot of basic

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infrastructure viz., separate godown for import cargo; installation of container scanner for scanningthe import cargo; separate paved area for examination of import cargo, covered with boundary wall,which has not been constructed till date; separate space for hazardous cargo, etc; weigh bridge is oneof the most essential items, which is required for proper assessment of import cargo; handlingequipments, i.e. crane, forklifts, etc; one separate room for Assistant Commissioner; the entire areais required to be covered with boundary wall for safety and security of intended import cargo;mutilation machine for mutilation of rags; and three rooms for installation of proposed EDlsystem atthe ICD.

ICD, Patparganj, Delhi (CWC)

3.49 ICD, Patparganj is the first Dry Port/Container Freight Station, set up in February, 1985, whichwas, later on, re-designated as an Inland Container Deport (ICD) in April, 1995. It caters to thetransportation of containers (to and fro) to various gateway Ports like JNP, Mundra, Mumbai, Kandla,etc., by rail and road. It also started container movements by rail from January, 2007 from ICD, Loni.The ICD has a total land area of 53,533 sq. mts; an open yard of 9779 sq. mts; covered area of19,026 sq. mts; import and exports sheds in an area of 6,406 sq. mts and 12,620 sq. mts,respectively; two reach stackers of 45 MT; two heavy duty mobile cranes of 25 MT; 19 forklifts ofvarious capacities; and 35 tractor trailers. The ICD has reached its saturation point in terms ofcapacity, and there was an urgent requirement of more space at the ICD.

ICD, Tughlakabad, New Delhi (CONCOR)

3.50 ICD, Tughlakabad, the flagship Depot of Northern Region of CONCOR, commenced itsoperations in September, 1993. It is the biggest EXIM Container Terminal in North India and isdeveloped on 55 hectares of land. It has the new state-of-art equipment and facilities, coupled withexcellent Rail Linkage to the gateway ports, being on the arterial trunk corridor of Delhi – Mumbairoute, forming a part of the Golden Quadrilateral of Indian Railways. Through introduction of variousinnovative steps and development of new equipment, the dwell time of containers has reducedsubstantially, leading to increase in capacity. Major commodities of export routed through the ICDinclude rice, cotton yarn, cotton madeups, auto parts, readymade garments, utensils, pipes, handicraftitems, slate stones and tractors. The commodities of import include general cargo, furniture, paper,rubber process oil, paper, machinery parts, printing papers, waste paper, PVC resin and chemicals.The ICD has reached to its full capacity and there was a severe crunch of space.

Land Customs Station, Sherathang, Nathu La Border (Gangtok)

3.51 Sherathang LCS, at an altitude of 13,500 ft. from mean sea level, was located in East Districtof Sikkim, and was at a distance of 49 Kms. from Gangtok. The biggest advantage of Nathu la wasits great geographical location and there was no other route connecting India and China and, as such,Sikkim was bound to become an International trade hub. The LCS had temporary type of structures,made up of wooden boards, protected by walls and roofs of GI sheets.

The following issues were raised at Nathu la:—

(i) Permission for exclusive trading rights to traders in Sikkim for the first five years sothat they could gain experience and expertise over a period of time, before this bordertrade became normal international trade.

(ii) Due to lack of export incentives and absence of Government support, traders fromSikkim were finding it difficult to participate in the border trade.

(iii) Initially, 100 items might be allowed to be traded which would boost the trade volume,making it a viable business proposition at Nathu la.

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(iv) Alternatively, a better way could be to draw a negative list and the balance items mightbe allowed free for trade with normal duty restrictions, moving away from the confinesof a border trade.

(v) The Infrastructure from Siliguri to Nathu la, needed to be strengthened, which comprisedwidening and reducing the length of the road, by developing more tunnels and bridges;creation of a modern and permanent Sherathang Mart to encompass all the facilities oftrade transit under one roof, to ease the trading formalities.

Land Customs Station, Moreh (Imphal)

3.52 Manipur, one of the States of the North Eastern region, with an area of 22,327 sq. kms,having 352 kms long international border with Myanmar to South East, was a land-locked State,connected with the rest of the country through (i) NH-39, (ii) NH-53, and NH-150, having Railwayfacililty of only 1.5. Km at Jiribam. The nearest cities from Imphal by air were Guwahati and Kolkata,but there was no inland water ways.

3.53 The exporters at Imphal requested for assistance, to increase Myanmar-origin importable itemsunder Barter mechanism, without restriction. On import side, the teak furniture should be allowed tobe imported through LCS, Moreh under barter mechanism; Minor Forest products – Herbal medicinalroots like Sarpentina (Sarpaganda roots) and Kuth be allowed to be imported without objection ofForest Department; third country goods, particularly of ASEAN countries; should be allowed to beimported though LCS Moreh at duty concession rate under Barter Mechanism. With regard to export,the items like Bi-cycle and its parts; cotton yarn; stainless steel utensils; menthol; pan masala; red andwhite sandal woods; salts; sanitary and hardware items; iron steel rods; medicines; cotton lungies;cosmetics; chemicals; animal skins and hides; Indian motor cycles; electricals; maida; cement andsewing and embroidery machines, etc.

3.54 The Sub Committee were informed that huge quantities of various items were being exportedillegally through Moreh. Some suggestions were also placed before the Sub Committee, such as:—

(i) To promote Indo-Myanmar bilateral trade, Indo-Myanmar border trade fairs may beorganised in both the border towns i.e. Moreh in Indian Side and Tamu in Myanmarside on alternate years;

(ii) Myanmarese should be allowed to visit North East through the Moreh land-route,without restriction, like India and Nepal;

(iii) Myanmarese should be given seat quota and be provided with opportunity to study forHigher Education in Manipur J.N University and in Regional Institute of MedicalScience, Imphal for Medical education;

(iv) Myanmarese patients be treated at J.N Hospital or RIMS Hospital, Imphal withoutrestriction, and on the simplest official formalities for their entrance into Imphal throughMoreh; and

(v) Businessmen from North East should be allowed to visit upto Mandalay in Myanmarthrough Moreh land route for market survey, with simple official formalities.

Land Customs Station, Agartala (Indo–Bangladesh Border)

3.55 The Land Customs Station at Agartala is located at the extreme West of Nazrul Sarani, 200meters inside from Indo-Bangladesh Border. The office is accommodated in the newly constructedIntegrated Development Complex. Major items of import are stone chips, fruit juice, synthetic drink,hilsa fish, small fish, soyabean oil, potato chips, jute rope, cement, lay flat tube, furniture, tiles, other

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waste of wool, crusher machine, household articles of plastic, PVC pipes and tubes, other non-knittedarticles of synthetic fibre, mattress of cellular rubber, etc. The items of exports from this LCS aredry fish, dry chilli, bamboo (Muli) etc. Some important initiative at the LCS were starting of Dhaka–Agartala Bus Service; Entry of Bangladesh vehicles carrying bulk import goods, either in loose orpalletized forms inside the Indian Territory; and Installation of Electronic Weigh Bridge. Huge quantitiesof various items were being exported illegally through Agartala. The LCS lacks the basic infrastructureto meet the growing trend of trade. There are no proper roads, either on the Indian side or on theBangladesh side, which, during rainy season, further create a lot of hardships for the traders. Adequatearrangement for proper electrification was not there and the entire area of the LCS, after sun set, isin darkness. The situation becomes grim during the winter season, when the days are shorter. Further,there are no warehouses either private or public. Thus, the infrastructure conditions at the LCS wereextremely poor.

Majerhat Terminal, Kolkata

3.56 The combined (both EXIM and Domestic) rail handling terminal at Majerhat in Kolkata wasopened in June, 2005 near the Coal Dock Road in Kolkata Port’s land, following closure of theerstwhile Cossipore ICD near Chitpur in Kolkata. The new location in Kolkata Port territory offeredthe distinct advantage of extensive area for laying full length rail lines, rake examination facilities, yardillumination, adequate container parking space, container repair and wagon repair zones, administrativeoffice, vehicle circulating area, and most importantly, proximity to the Port not only gave the distinctadvantage of turning around rakes to and from the Netaji Subhash Docks of KoPT at faster pace, butalso helped in reducing road bridging operations and ultimately costs to the trade by way of reducedleads. The terminal had been developed over an area of 85,500 sq. mts of land, leased to CONCORby Kolkata Port Trust. The infrastructure facilities available at the terminal were Rail Sidings (two fulllength lines each of 640 mts); Sick wagon repair lines (two spurs of five wagons capacity each);Equipment (One Reach Stacker of 45 mt. capacity); one empty forklift of 10t capacity;26 trailers for door to door services; paved surface area of 31,081 sq. mts; Container repair zone(200 sq. mts); Railway carriage and wagon examination gang for rakes; and Illumination through sevenhigh mast tower lights.

3.57 The terminal serves Kolkata, Haldia, Durgapur, Asansol and Kharagpur in West Bengal, andKalinganagar in Orissa, in terms of catchment area. With regard to connectivity, the terminal not onlyhas the regular services through the rail linkages for EXIM traffic to ICD Amingaon, ICD Birgunj(Nepal) and ICD Tughlakabad, it entertains demand-based services also to other lCD’s and gatewayports like JNPT and Vizag. As and when demanded, the terminal provides door-to-door road servicesto various locations, including Haldia, Durgapur and Jamshedpur. The CONCOR traffic, both fordomestic and EXIM segment, had grown substantially.

3.58 There was a great potential for further growth of trade, both domestic and export through theTerminal, provided the Government, through a long term vision, came forward in this regard. TheMajerhat Terminal could be upgraded to an lCD, keeping in view the growth in EXIM container trafficat Kolkata port.

Land Customs Station, Attari Rail

3.59 The ‘A’, ‘B’, ‘C’ and ‘0’ alongwith respective adjoining railway tracks, macadamized roads,etc., at the Amritsar Railway Station, which was declared as Land Customs Station by Governmentof India in 1965, were declared as Customs Area for loading/unloading and storage of export/importcargo by Rail to/from Lahore in Pakistan by Amritsar – Attari – Lahore railway route in 1996. Theexamination of the railway rakes loaded with bulk export goods, such as Soyabean meal, etc., isundertaken at MTR/Ghora line. The Indian Railways is the Custodian of the import/export goods.

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Major items of exports include S.O dyes, vegetable seeds, soyabean meals, crude Drugs, tubes andtyres. Items of import commodities include dry date, rock salt, crude drug and cement. The LCS, interms of infrastructure, has an office of Customs Rail Cargo, situated adjacent to Amritsar RailwayStation on Gole Bagh side, adjoining Northern Railway Goods Shed ‘A’; container/mobile scanner,x-ray machines, metal detectors, CCTV, sniffer dogs, generator sets; and two x-ray machines ofobsolete models and out of order since long, installed in one each of the sheds ‘A’ and ‘B’. The officebuilding is insufficient in space and needs to be upgraded and well furnished. The only Shed knownas ‘0’ Shed, which was burnt out more than four years back, has not been re-constructed and madeoperational till date. Besides, the railway authorities had been requested a number of times forextension of the platform and to notify it for import – export only. Apart from this, condition of theroads in the Rail Cargo Complex was in very bad shape/broken and contained big pot-holes thatadversely affected the cargo transportation due to frequent traffic jams.

Land Customs Station, Attari Road

3.60 The LCS, Attari Road, Amritsar is located on Indian side of the border, and caters to thepassengers and cargo traffic between India and Pakistan. The LCS handles export of six commoditiesinitially allowed by Pakistan through this route viz., tomato, potato, onion, garlic, livestock and buffalomeat. Subsequently, export of cotton and maize was also allowed. There was no import from Pakistanthrough this route, though import of dry and fresh fruit from Afghanistan via Pakistan was beingeffected through this LCS. To obviate any problem and for facilitation, hotline facility has beenestablished between Customs authorities of India and Pakistan at the border. In the matter ofinfrastructure, the there was a requirement of a truck scanner, to scan the cargo, including theperishable items, being imported through trucks at the border; high energy x-ray machine; animalquarantine facility; weigh bridge, warehouses; banks facilities and cranes and forklifts.

TOWNS OF EXPORT EXCELLENCE (TEE)

Tirupur (Tamil Nadu)

3.61 During the course of deliberations with the Sub Committee, various exporters submitted thatwhile there were able to maintain their export growth above 15% consecutively for two years, theappreciation of rupee against dollar by 14% had totally dampened their spirits. Due to this, 8,000workers in various export knitwear units of Tirupur had lost their jobs. The imposition of FringeBenefit Tax on sales promotion expenses, including publicity, tours and travels, boarding and lodgingand free samples, had seriously affected the Indian Exports. Accordingly, Fringe Benefit Tax on allexpenses related to exports should be exempted.

3.62 With regard to Service Tax for all the services being charged at 12.36%, the exporters couldnot export taxes. All the services should be exempted from payment of service tax, including theservice tax for rented buildings. The exporters had to incur the cost while going for hedging, therebycreating an extra burden on them. They should be compensated the hedging cost. Alternatively, thedual exchange rate could be introduced, by which Rs. 42 per dollar can be fixed for exporters forone year.

3.63 Apart from the above, they requested for compensation @ 3% against the State Levies, suchas octroi, other State taxes and transaction cost. The labour laws in India were quite inflexible andrigid. There was an urgent need to accelerate the Labour Law reforms since, the existing rules andregulations are constraints to the overall growth of the Textile industry.

3.64 The National Rural Employment Guarantee Scheme in all districts across the country, underwhich a person is given guaranteed employment for 100 days, with pay @ Rs. 60/- per day, to thegarment sector also, (which is seasonal business) on the conditions of 280 days employment with a

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salary @ Rs. 70/- per day, which is Rs 10/- more than the Government’s scheme, so that Governmentdoesn’t have to spend any money, once the scheme is extended to the garment sector. They wouldgive a guarantee letter to the District Collector that they will employ minimum 50 workers (maximumcan be any number), comprising 50% women workers from rural areas, which would entail employmentto six million people in the garment sector, thereby subscribing to the Government’s vision of creatingmore jobs in the country. Besides this, the working hours should be enhanced from existing 48 to 60hours, with necessary increment in wages, so as to meet the compliance sought by the foreign buyers.The textile mills were facing the problem relating to discharge of dye effluent and they sought the helpof the Sub Committee for implementation of Marine Discharge Project as a permanent solution. TheMinistry of Textiles had envisaged the scheme “Policy Resolution for Textile Infrastructure DevelopmentFund and Textile Territorial Investment and production Complex”. The exporters should be extendedhelp under the said scheme by way of a grant of 50% of the project cost i.e. Rs. 500 crore. Fordevelopment and promotion of exports in Tirupur, the construction of budget houses for workers,installation of a separate dedicated power station, widening of roads from Tirupur to various otherdestinations should be considered.

Aroor (comprising Aroor, Ezhupunna, Kodamthuruthu and Kuthiathode in Kerala)

3.65 The cities of Aroor, Ezhupunna, Kodamthuruthu and Kuthiathode of Pattanakkad Block Panchayatin Cherthala Taluk of Alappuzha district, notified as the Towns of Export Excellence under SpecialEconomic Zone for fish processing units, were facing serious issues of deterioration of environmentaland socio-economic conditions, due to lack of appropriate waste disposal facilities; overcrowding ofpeeling sheds; lack of sufficient safe drinking water supply; un-hygienic and improper living conditions;air and water pollution; improper and inadequate garbage collection and disposal systems, etc., andrequired urgent interventions, so as to keep up the environmental quality. However, the limitations/obstacles in terms of inadequate infrastructure facilities; unavailability of sufficient financial support;lack of awareness among the public; incapability of the available organizational set-up to fully utilizethe technical competence, etc., were also felt, and to overcome the same with a view to implementeco-development objectives, custom made non – conventional solutions for application in these placesand small towns were envisaged under the concept of Eco Village.

Kallam (Kerala)

3.66 Kollam in Kerala was the nerve center of cashew industry in India. It had been honoured withthe status of “Town of Export Excellence” for Cashew 2006. Almost 80% of the cashew processingand exporting units in India were located in or owned by the processors in and around the Kollamarea. Cashew Industry was the most important among the traditional industries in Kerala. 75% of theprocessing of Cashew kernels was being done in Kerala. There were 648 cashew processing factoriesand 150 filling and packing units. Out of this, 637 factories were located in Kollam and surroundingdistricts of Thruvananthapuram, Pathanamthitta, and Alappuzha. Among them, 30 were owned by thePublic Sector “Kerala State Cashew Development Corporation”, and 10 by the Kerala State CashewWorkers Apex Industrial Co-operative Society Ltd., (CAPEX), Kerala State Agency for Expansion ofCashew Cultivation (KSACC) and the Cashew Special Officer had their offices in Kollam District.

3.67 The cashew industry in Kerala was facing a major problem due to the shortage of raw cashewnuts. The State has to depend on import of raw cashew nuts for running the industry. In order toovercome the above problem, the Government of Kerala had set up an agency by the name “KeralaState Agency for Cashew Cultivation” (KSACC), exclusively for the purpose of expanding the area ofcashew cultivation. The agency was in the process of identifying vacant lands, where large-scalecultivation of Cashew could be undertaken. The main hurdle in this regard was the shortage ofsufficient funds. The Government of India had taken a decision to provide financial assistance forCashew cultivation through the Horticultural mission.

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3.68 Vietnam, our major supplier of raw cashew nuts a few years back, had come up in a verybig way, competing with India in the world market for number one position. Their major advantageswere high yielding domestic production and availability of raw material at cheaper prices, low labourand production cost, recently-built factories with new technology, etc., which made their productcheaper in the world market. They were also competing with us in sourcing the raw cashew nutsfrom other producing countries.

3.69 Due to stiff competition form other producing, processing and exporting countries likeVietnam, Brazil, etc., high production cost, low international prices, appreciation of Indian Rupee, lowexport incentives, etc. the cashew processing and exporting industry in India was now in a deepcrisis. The Government of India should come up to help survive the industry.

Alleppey

3.70 Alleppey, due to its labyrinth of canals, and narrow waterways, has been well- known to theoutside world as “Venice of the East”. It is the bastion of the Coir Industry, with the first of itsmechanized units having been established by British factors, who came to India to trade, and establishcommercial relationship. It is one of the best planned Towns in India. Alleppey was declared as Townof Export Excellence on 31st May, 2006. It is Town of Export Excellence by virtue of the fact thatit has an annual turnover of Rs. 250 crore, because it is an agro sector. In Alleppey, where the CoirIndustry was set up in 1857, there are around 250 manufacturing units of various sizes, capacity,investment, most of them being export-oriented, supported by a strong supply chain. But most of thesupply chain (Service providers), happened to be in the un-organised sector. 50% of the exportproduction was being out-sourced.

3.71 The State Government, largely, shied away from supporting the Export related industries, dueto the reason that export was a Central Subject, no Revenue recurred to it and hence, exports gotsecondary importance. With regard to water jetty and ICD at Alleppey, the following issues wereraised:—

(i) Water front land not available at Alleppey.

(ii) Free-hold Government land to the extent of five acre also not available to set up theICD. Exorbitant cost made the purchase of land prohibitive.

(iii) Transportation of Cargo through Rail (Concor) was not viable, as empty cargo wascharged Rs. 5,000/- per container by the Railways.

(iv) There was not sufficient wharf to take the cargo of (20') 25,000 kgs. and (40') 30,000kgs. There was a need for further dredging, which was not possible because of thecost factor.

(v) The Unit value realization of Coir products was very low, a higher percentage of 1%on transportation costs was very heavy.

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CHAPTER-IV

Observations and Recommendations

4.1 In order to boost export volumes, the Government needs to facilitate transport/logistic supportand resolve problems experienced by the trading community in the carriage of goods by courier, sea,air, rail and road, in coordination with the concerned Ministries and Departments. It can be donethrough greater containerization, computerization of cargo clearance and electronic data interchange,warehousing, setting up of air cargo complexes, inland container depots, container freight stations, etc.The recommendations/observations made by the Committee are given in the succeeding paras.

Airports

4.2 The Committee noted that there had been a spurt in export of agro-products like vegetables,fruits and flowers through Kolkata airport. Agri-products were also coming from the north-eastern Sates,with destinations outside the country. The cold storage facilities available at present for perishablecommodities at the Kolkata airport were neither adequate nor proper. The airports also need movementof aircraft, with adequate facilities of freezing tank, failing which the dispatched perishable goods wereliable to become unusable when the same reach the destination, due to which the exporters had to routetheir cargo through other airports, at extra cost. The Committee recommend that the Governmentshould provide the facilities to pick up agri-products coming from the north-eastern regionthrough domestic airlines, without involving a third party handling form domestic cargo shed tointernational cargo shed, involving extra cost and time. Direct booking of cargo by air for exportmay be allowed from the distant domestic airports in north- eastern region.

4.3 The Air Cargo Complex at Ahmedabad is facing problems related to warehousing space anddedicated cold storage for perishable commodities.

4.4 Air Cargo Agents Association (ACCAI), Bangaluru International Airport Limited (BIAL) andBangaluru Customs House Agents’ Association (BCHAAL), had requested for provision of a State ofthe Art Cargo Village within the BIAL Complex, to house the Forwarders and CHAs (Customs HouseAgents). The Complex must be fully equipped with modern warehouse and related facilities, besidesadequate office space, for efficient and timely functioning of the cargo handlers for the overall benefitof the EXIM trade.

4.5 The exporters at various Airprots like Amritsar, Coimbatore and Cochin had been facingproblems due to the non-availability of x-ray facility, used for screening of export goods by AirlinesSecurity, and equipments for loading and unloading of heavy cargo. The Sub Committee during theirvisit to various places across the country, had also observed many shortcomings such as inadequatecold storage facilities, inadequate space for warehousing in Air Cargo Complexes, and absence ofState-of-the-Art technology viz., x-ray machines for screening of cargos. The Committee, therefore,recommend that the Government should formulate a policy so as to facilitate provision of basicinfrastructure facilities for exports, including incentives for promotion of exports of thecountry at various Airports, Ports, ICDs and LCSs across the country, which areas seem tohave remained neglected by the Government and other agencies.

4.6 The Committee were informed that a Committee on Infrastructure under the Ministry of CivilAviation had taken an ambitious project of modernization of 35 non - metro airports and had entrusted

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the Airports Authority of India to undertake the airside work, including construction of terminalbuildings. The work on most of these airports had been taken up while the work at Agra airport (CivilEnclave) had been completed and major works at seven other airports viz., Agatti, Ahmedabad,Amritsar, Jaipur, Nagpur, Trichy and Udaipur were at the completion stage. The expected schedule forcompletion of the terminal buildings and the associated air side works in respect of 24 airports wasend of March, 2009, whereas the remaining 11 airports would be completed by end of March, 2010.City side development of 24 select non - metro airports would be taken through PPP. Appreciatingthe initiatives being taken by the Government, the Committee recommend that while takingup development of various airports, the Government should keep in view the fact that thegeneral public is not subjected to any hardships/hazards in terms of noise or environmentpollution. At the same time, it should also take into consideration the viability of the domesticas well as the Exim trade at each of these airports, their connectivity through rail, air androad, and extend all such infrastructure facilities, as are necessary for both types of trade.

4.7 The Committee note that notwithstanding the measures being taken for smooth functioning ofthe cargo terminals, much more was needed to be done for ensuring proper functioning of theterminals viz., relaxation of access for cargo carrying vehicles to and from the Airports (intra/intercity), to facilitate the cargo trade; constitution of a team of all stakeholders namely Airport Operators,Airlines, Customers and Trade representatives, to jointly study the leading airports and suggestimprovements to benchmark with international standards; and encouragement for building up Unitconcept for cargo handling, in line with internationally best practices, which will reduce the processingtime; reduce the landing charges for cargo flights to incentivise exports of India; and provide suitablespace under the concept of Cargo Village for stake holders at the airports. The Committee are of theview that reduction in landing charges will facilitate the airlines to consider India for Cargo Hub, whichwas totally missing, as most of the major Hubs in the world had maximum transit tonnage from otherinternational airports. The Committee recommend that the Government, while formulating itspolicies for infrastructure and facilities at various cargo export centres, should not onlycoordinate with various stake-holders and introduce and implement the same in such away that it takes care of both the Government as well as various stake-holders. At thesame time, the Government should study various aspects of introducing the concept of CargoVillage at each airport as it would tend to improve the functioning of the cargo system atthe airports.

4.8 Guwahati is a big business hub in the North East. Though there is an international airport, yetit seems to have been overlooked in terms of infrastructure that matches the international standards.Due to lack of proper focus and promotional policies on the part of the Government, people of thearea had been deprived of the facility to move to international destinations, to sell out their products.The Committee recommend that the Government should come forward with a long termmechanism so as to provide proper infrastructure facilities of international standards at theairports, especially at the Guwahati International Airport, to boost the trade and exports.

Ports

4.9 During the course of visits to various major ports across the country, the Sub-Committeecould observe various problems common to each of the ports, like the problems of congestion;technology, equipments and connectivity with rail, road, air, etc.

4.10 At JNPT, Mumbai, there was an immense problem of congestion in handling and clearance ofcontainers, which was a common feature at all the ports, airports and also at various ICDs and LCSs.The Committee, therefore, recommend that dwell time in cargo clearance should be reduced,by simplifying customs procedures, and by similar other measures. Freight handling chargesshould be reduced to make it globally competitive.

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4.11 The Committee note that the EDI was not fully operational at many ports. The Committeerecommend that the EDI system should be made fully operational, as early as possible, so asto facilitate electronic clearance of export and import containers, thus saving the dwell timein cargo clearance.

Inland Water Transport

4.12 The Committee feel that inadequate infrastructural facilities such as depth and width requiredfor movement of IWT vessels for round the year operation, terminals for loading and unloading ofcargo, navigational aids for safe and unhindered navigation during day and might and IWT fleet forcarriage of cargo and passengers are the major constraints facing the inland waterways sector. TheCommittee recommend that in order to achieve substantial step up in Inland Water Transport(IWT) traffic, the Government should focus its thrust on creation of infrastructure. As theInland Water Transport (IWT) has substantial share in inland transport network, the Governmentshould take steps for augmentation of IWT fleet.

4.13 The River Brahmaputra, for which the Government had allocated an amount of Rs. 270 croreto develop it into a better navigational system, could be used effectively for commercial purposes, soas to get closer to the Bay of “Bengal, which in turn could help the people reach internationaldestinations. The Government should take steps to introduce sophisticated navigation system inthe River Brahmputra for promotion of exports, so as to generate revenue and to provideemployment, particularly for the people of the North-East.

Inland Container Depots (ICDs) and land Customs Stations (lCSs)

4.14 The Sub Committee observed that the staff posted at various Customs establishments, especiallyin the inclement positions on Nepal, Bangladesh borders, and also on Kuchchh side, had not beenprovided the requisite basic minimum facilities of accommodation, schooling for their kids, transportation,communication network and medical centres. The Committee recommend that the Governmentshould take immediate steps to provide facilities of accommodation, schooling for the kids,transportation, communication network, medical centres, etc., to the staff, so as to increasetheir efficiency and transparency in the systems.

4.15 The ICD at Amingaon was the only one serving the entire North-Eastern Region. In terms oflocation, the ICD was at a dis-advantageous position, as the nearest sea port Kolkata was at a distanceof 1,100 kilometers. The primary item of export was tea. There was hardly any import, and theexporters had to pay even for bringing empty containers from Kolkata to load their exports. TheCommittee recommend that there is a need for extension of 6% concession on rail freightgiven by the Railways for full rake movements from in and out of the North East, to coverexport rakes from ICD, Amingaon, being operated by CONCOR.

lCD, Whitefield, Bangaluru

4.16 During its visit to ICD at Whitefield in Bangaluru, the Committee observed that despite all outefforts by the concerned authorities to improve the standards of infrastructure to help the traders,there were certain bottlenecks, particularly in terms of connectivity, absence of proper rail connectionto Cochin Port, Tuticorin Port, etc. Chennai (Madras Port) was the only source for lCD, Bangaluru.The handling charges compared to private CFS and CWC were higher and the Container roadmovement charges from out of the ICD to any port was about twice the market price (ContainerCorporation of India); the CFS did not have proper lighting system. There were no proper facilitiesfor storage (most of the packages stored beyond three days are full of bird droppings, accumulationof dust on packages). The waiting period for getting container/closed body trucks ranged from twoto three days, resulting in delay in shipping of the goods. For the full import container from Chennai

37

to Bangaluru ICD, it took five to six days. If the goods were to come on LCL (Less Container Load),it took around 12 days. These goods/raw materials, meant for export production and, because of thedelays in getting the imported materials, exporters were facing difficulty to keep up their deliveryschedules in addition to the locking of their capital, etc. Bad handling in CFS was also noticed. Mostof the packages get damaged due to the careless handling at the time of loading/unloading. TheCommittee observe that while on one hand the Government claimed upgrading variousinfrastructure facilities, on the other hand, it seemed to have shut eyes in respect of thecustomer satisfaction and promotion of exports. The Committee, therefore, recommend thatthe Government should have frequent interactions, not only with the concerned Central andState agencies, but also with the traders and exporters. The trading community was contributingimmensely towards generation of revenue, including the foreign exchange, for the Government.The Government should shun its policy of infinite slumber and aloofness, and pay heed to theproblems of the traders in a positive manner, to help boost the exports of the country.

LCSs at Indo-Nepal Border

4.17 There were about 12 Land Customs Stations at the Indo-Nepal Border. These are Raxaul,Jogbani, Galgalia, Bhimnagar, Sonbarsa, Bhitamore, Bairgania, Panitanki, Pasupatigate, Sonauli, Gauripanthaand Banbasa. There is a brisk trade from these Land Customs Stations. But, civic facilities like officialbuilding, hospitals, schools, housing accommodation, communications, roads, power supply, etc., areextremely lacking there. Due to absence of these basic facilities, the employees posted there are unableto render their optimum services for the growth of export/import. The Committee, therefore,recommend that all the basic facilities should be immediately provided at the above LCSs.

Land Customs Station, Moreh, Imphal

4.18 The traders at the LCS, Moreh face problems on account of transportation from Moreh tooutside the State of Manipur. There had been a persistent demand for establishment of an InlandContainer Depot upto Land Customs Station, Moreh, to reduce the transportation cost from Moreh tooutside the State of Manipur. The Committee recommend that the Government should study thefeasibility of establishing an ICD at Moreh, an important trading and strategic point, due toits being on the international border, which has also got the huge potential for exim trade, andprovide all requisite infrastructure facilities, including the incentives available under variousschemes, to boost the export trade of the country.

LCS, Agartala

4.19 The Sub-Committee were informed that huge quantities of various items were being exportedillegally through Agartala. The LCS lacks the basic infrastructure to meet the growing volume of trade.There were no proper roads, either on the Indian side or on the Bangladesh side, which, during rainyseasons, further created a lot of hardships for the traders. Adequate arrangements for electrificationwere not there and the entire area of the LCS, after sun set, was drenched in darkness. The situationwas grim during winter seasons, when the days were shorter. Further, there were no warehouses inthe LCS, either private or public, the non-availability of which posed a lot of hardships for the traders.In all, the infrastructure conditions at the LCS were extremely poor. The Committee, therefore,recommend that the Government should take stock of the prevailing grim situation at theLCS at Agartala and render all possible assistance, to improve the same, on priority basis.

CONCOR, Kolkata

4.20 The Committee note that rail borne import container traffic, which averaged at 1174 TEUs permonth during 2007- 08, as against the average of about 894 TEUs in 2006-07 for Nepal, has been

38

growing steadily at the Kolkata Docks. The only other significant” rail borne container traffic viaKolkata Port was the tea exports from Amingaon, which was about 2500 TEUs per annum. Indomestic segment, main outward traffic handled at the terminal is steel products, jute and Vanaspati.There was a substantial increase in the Year-wise domestic cargo handled at the terminal and theCONCOR traffic, both for domestic and EXIM segment, had grown substantially. There was a greatpotential for further growth of the trade, both domestic and export, through the Terminal, providedthe Government, through a long term vision, came forward in this regard. The Committee recommendthat the Government should study the growth aspects of the terminal and take all thenecessary steps, to upgrade it as an Inland Container Depot, in order to boost the trade. Itshould also envisage a long term policy, whereby the requisite infrastructure facilities like EDI,bonded warehouses, improved transportation connectivity, etc. may be well planned, for promotionof exports.

4.21 During the course of deliberations with different stake-holders on the matter of infrastructuralfacilities, the Sub Committee was informed that there was a serious lack of coordination amongdifferent agencies and departments, due to their fragmented approach. Since they were responsible forpromotional aspects of exports at airports, ports, ICDs and LCSs in the country, there was an urgentneed for inter-ministerial and inter-state dialogues. The Committee recommend that the Governmentshould work in a pro-active manner alongwith the concerned Central Ministries and StateGovernment Departments, and draw up a roadmap for infrastructural development for promotionof exports, covering all the important parts of the country, that have the exports potential.

4.22 The Committee observe that the problems, with which all the establishments are confrontedwith, are almost common, as these pertain to export infrastructure. When it comes to infrastructure,it means there should be some minimum level of infrastructure, which the Government is supposedto provide to various stake-holders. The Government should evolve a policy, under which the term“infrastructure” implies the minimum infrastructure comprising adequate space for warehouses,stake-holders’ office and for handling of cargos (loading/unloading); easy and proper roadconnectivity (good condition), rail and air connectivity for smooth transportation of cargos;latest technology like EDI, for speedy communication between the concerned authorities andthe customers for faster disposal of cargos; proper electrification in and around theestablishments; various types of sophisticated equipments, including the security gadgets, etc.,as per the requirement of these establishments; provisions for renovation/upgradation of theexisting establishments; export incentives to traders; and funding, wherever required, undervarious Schemes, with a view to boost the country’s trade.

4.23 The Committee observe that the matter of upgradation of infrastructure falls under the purviewof Ministry of Urban Development. While taking up the matter of upgradation of export infrastructure,the Committee desires that the Department of Commerce should also have a closer interactionwith the Ministry of Urban Development for provision of better infrastructural facilities in andaround all establishments that are involved in various types of exports from the country.

Towns of Export Excellence

4.24 The Committee during its visit to Tirupur, Alleppey, and Aroor observed that the immediateissues to be addressed for increasing exports from the Towns of Export Excellence were properdisposal of dye effluent from Textile Mills, frequent power failures, common effluent treatment plantsfor seafood industries, and poor conditions of roads, that increased the transit time taken to reach theports. The entire funding for the Towns of Export Excellence presently came from Assistance toStates for Infrastructure Development of Exports (ASIDE) Scheme, and 80% of the funding underthat Scheme was through the State Governments. The funds available under this Scheme were verymeager. The Committee, therefore, recommend that funds may be earmarked separately tocater to the needs of the Towns of Export Excellence so as to fill in critical gaps in

39

infrastructure like connection of export hubs with National Highways/Waterways, taking careof the power needs of the Towns of Export Excellence by setting up small power plants, settingup of Common Warehouses for display of products of the entire clusters. This separate outlayshould be distributed among various TEEs, based on the projects taken at hand by them. TheCommittee also recommend that common effluent treatment plants for sea food industriesmay be set up in places like Alleppy with contribution from the various stake holders.

4.25 Kollam was the nerve centre of cashew industry in India and was bestowed with the statusof Town of Export Excellence for cashew in 2006. However, countries like Vietnam, Brazil, etc., dueto their high yielding domestic production, availability of raw material at cheaper prices, low cost oflabour and production, and recently-built factories, with new technology, were giving stiff competitionto the Indian cashew industry, which was in deep crisis due to high production cost, low internationalprices, appreciation of India Rupee, low export incentives, etc. The Committee recommend that theGovernment should come out whole heartedly to the rescue of the cashew industry and extendall sorts of assistance in terms of technology, incentives, trainings and other relatedinfrastructure, for proper development and promotion of exports of cashew, under a long termholistic plan. The Government should also explore appropriate ways and means to extend somefinancial assistance to boost Cashew Cultivation in other areas in the country for developmentand promotion of exports.

4.26 The Committee in their 85th Report on Demands for Grants (2008-09), had recommended thatthe Government should look into the issue and consider bringing all aspects related to cashew underthe ambit of the proposed Cashew Board, for its all round growth. The Department of Commerce,in its replies to the Action Taken Notes on the above stated Report, stated that in pursuance of thefeasibility report submitted by the Indian Institute of Foreign Trade (11FT), it has taken a decisionfor formation of Cashew Board by merging the activities of Cashew Export Promotion Council andDirectorate of Cashew and Cocoa Development. Necessary approval from Planning Commission,Expenditure Finance Committee (EFC) and Department of Legal Affairs, etc. has been sought. Afternecessary approvals, the proposal would be submitted to Cabinet Committee on Economic Affairs(CCEA) for its approval. The Sub Committee, during its visit to Kollam, noted that out of the 648cashew processing factories and 150 filling and packing units in Kerala, 637 factories were locatedin Kollam and three adjoining districts of Thiruvananthapuram, Pathanamthittu and Alappuzha. Basedon the above statistics, there was a growing demand for setting up of a Cashew Board in Kollam.The Committee, in this regard, recommend that the Government should pursue the mattervigorously in close coordination with the various agencies so as to expedite the matter ofsetting up of the Cashew Board at Kollam, keeping in view the huge potential of exportsinvolved in the cashew exports. It should also render all possible assistance to the StateGovernment in this regard.

4.27 The Government of India had identified 12 towns as Towns of Export Excellence. Out of these12 towns, Uttar Pradesh has only Khekra as Town of Export Excellence. It was a known fact thatin terms of economic growth, that State was one of the backward States of the country. The Stateis known for a number of agricultural products. The mango of Malihabad, guava of Allahabad andAmla of Pratapgarh were world famous for export of these items. There was a vast scope forestablishing the Towns of Export Excellence (TEEs) at these places. The Committee recommendthat places known for export of fruits, etc., be declared as TEEs. This would tend to createemployment and creation of infrastructure there. It would also tend to restrict the movementto bigger cities for employment to a large extent.

4.28 The Committee note that there are many cities across the country from where exports ofvarious principle commodities like plantation, agri and allied products, marine products, ores andminerals, leather, gems and jewellery, sports goods, chemicals and related products, engineering goods,

40

electronic goods, project goods, textiles, handicrafts, carpets, cotton raw including waste and petroleumproducts, take place. However, the Government has notified very few Towns of Export Excellence.The Committee, therefore, recommend that the Government should review the criteria fornotification of Towns of Export Excellence with a view to bring more Towns on the InternationalMap of Exports thereby creating more employment and revenue.

41

OBSERVATIONS AND RECOMMENDATIONS — AT A GLANCE

1. The Committee recommend that the Government should provide the facilities to pickup agri-products coming from the North-Eastern Region through domestic airlines, withoutinvolving a third party handling form domestic cargo shed to international cargo shed,involving extra cost and time. Direct booking of cargo by air for export may be allowed fromthe distant domestic airports in North-Eastern Region. (Para 4.2)

2. The Committee recommend that the Government should formulate a policy so as tofacilitate provision of basic infrastructure facilities for exports, including incentives for promotionof exports of the country at various Airports, Ports, ICDs and LCSs across the country, whichareas seem to have remained neglected by the Government and other agencies. (Para 4.5)

3. Appreciating the initiatives being taken by the Government, the Committee recommendthat while taking up development of various airports, the Government should keep in view thefact that the general public is not subjected to any hardships/hazards in terms of noise orenvironment pollution. At the same time, it should also take into consideration the viabilityof the domestic as well as the Exim trade at each of these airports, their connectivity throughrail, air and road, and extend all such infrastructure facilities, as are necessary for both typesof trade. (Para 4.6)

4. The Committee recommend that the Government, while formulating its policies forinfrastructure and facilities at various cargo export centres, should not only coordinate withvarious stake-holders and introduce and implement the same in such a way that it takes careof both the Government as well as various stake-holders. At the same time, the Governmentshould study various aspects of introducing the concept of Cargo Village at each airport as itwould tend to improve the functioning of the cargo system at the airports. (Para 4.7)

5. The Committee recommend that the Government should come forward with a long termmechanism so as to provide proper infrastructure facilities of international standards at theairports, especially at the Guwahati International Airport, to boost the trade and exports.

(Para 4.8)

6. The Committee recommend that dwell time in cargo clearance should be reduced, bysimplifying customs procedures, and by similar other measures. Freight handling chargesshould be reduced to make it globally competitive. (Para 4.10)

7. The Committee recommend that the EDI system should be made fully operational, asearly as possible, so as to facilitate electronic clearance of export and import containers, thussaving the dwell time in cargo clearance. (Para 4.11)

8. The Committee recommend that in order to achieve substantial step up in Inland WaterTransport (IWT) traffic, the Government should focus its thrust on creation of infrastructure.As the Inland Water Transport (IWT) has substantial share in inland transport network, theGovernment should take steps for augmentation of IWT fleet. (Para 4.12)

9. The Government should take steps to introduce sophisticated navigation system in theRiver Brahmputra for promotion of exports, so as to generate revenue and to provideemployment, particularly for the people of the North-East. (Para 4.13)

41

42

10. The Committee recommend that the Government should take immediate steps toprovide facilities of accommodation, schooling for the kids, transportation, communicationnetwork, medical centres, etc., to the staff, so as to increase their efficiency and transparencyin the systems. (Para 4.14)

11. The Committee recommend that there is a need for extension of 6% concession on railfreight given by the Railways for full rake movements from in and out of the North East, tocover export rakes from ICD, Amingaon, being operated by CONCOR. (Para 4.15)

12. The Committee observe that while on one hand the Government claimed upgradingvarious infrastructure facilities, on the other hand, it seemed to have shut eyes in respect ofthe customer satisfaction and promotion of exports. The Committee, therefore, recommendthat the Government should have frequent interactions, not only with the concerned Centraland State agencies, but also with the traders and exporters. The trading community wascontributing immensely towards generation of revenue, including the foreign exchange, for theGovernment. The Government should shun its policy of infinite slumber and aloofness, and payheed to the problems of the traders in a positive manner, to help boost the exports of thecountry. (Para 4.16)

13. The Committee recommend that all the basic facilities should be immediately providedat the above LCSs. (Para 4.17)

14. The Committee recommend that the Government should study the feasibility ofestablishing an ICD at Moreh, an important trading and strategic point, due to its being onthe international border, which has also got the huge potential for exim trade, and provide allrequisite infrastructure facilities, including the incentives available under various schemes, toboost the export trade of the country. (Para 4.18)

15. The Committee recommend that the Government should take stock of the prevailinggrim situation at the LCS at Agartala and render all possible assistance, to improve the same,on priority basis. (Para 4.19)

16. The Committee recommend that the Government should study the growth aspects ofthe terminal and take all the necessary steps, to upgrade it as an Inland Container Depot, inorder to boost the trade. It should also envisage a long term policy, whereby the requisiteinfrastructure facilities like EDI, bonded warehouses, improved transportation connectivity, etc.may be well planned, for promotion of exports. (Para 4.20)

17. The Committee recommend that the Government should work in a pro-active manneralongwith the concerned Central Ministries and State Government Departments, and draw upa roadmap for infrastructural development for promotion of exports, covering all the importantparts of the country, that have the exports potential. (Para 4.21)

18. The Government should evolve a policy, under which the term “infrastructure” impliesthe minimum infrastructure comprising adequate space for warehouses, stake-holders’ officeand for handling of cargos (loading/unloading); easy and proper road connectivity (goodcondition), rail and air connectivity for smooth transportation of cargos; latest technology likeEDI, for speedy communication between the concerned authorities and the customers for fasterdisposal of cargos; proper electrification in and around the establishments; various types ofsophisticated equipments, including the security gadgets, etc., as per the requirement of theseestablishments; provisions for renovation/upgradation of the existing establishments; exportincentives to traders; and funding, wherever required, under various Schemes, with a view toboost the country’s trade. (Para 4.22)

43

19. The Committee desire that the Department of Commerce should also have a closerinteraction with the Ministry of Urban Development for provision of better infrastructuralfacilities in and around all establishments that are involved in various types of exports fromthe country. (Para 4.23)

20. The Committee recommend that funds may be earmarked separately to cater to theneeds of the Towns of Export Excellence so as to fill in critical gaps in infrastructure likeconnection of export hubs with National Highways/Waterways, taking care of the power needsof the Towns of Export Excellence by setting up small power plants, setting up of CommonWarehouses for display of products of the entire clusters. This separate outlay should bedistributed among various TEEs, based on the projects taken at hand by them. The Committeealso recommend that common effluent treatment plants for sea food industries may be set upin places like Alleppy with contribution from the various stake holders. (Para 4.24)

21. The Committee recommend that the Government should come out whole heartedly tothe rescue of the cashew industry and extend all sorts of assistance in terms of technology,incentives, trainings and other related infrastructure, for proper development and promotionof exports of cashew, under a long term holistic plan. The Government should also exploreappropriate ways and means to extend some financial assistance to boost Cashew Cultivationin other areas in the country for development and promotion of exports. (Para 4.25)

22. The Committee, in this regard, recommend that the Government should pursue thematter vigorously in close coordination with the various agencies so as to expedite the matterof setting up of the Cashew Board at Kollam, keeping in view the huge potential of exportsinvolved in the cashew exports. It should also render all possible assistance to the StateGovernment in this regard. (Para 4.26)

23. The Committee recommend that places known for export of fruits, etc., be declaredas TEEs. This would tend to create employment and creation of infrastructure there. It wouldalso tend to restrict the movement to bigger cities for employment to a large extent.

(Para 4.27)

24. The Committee recommend that the Government should review the criteria for notificationof Towns of Export Excellence with a view to bring more Towns on the International Map ofExports thereby creating more employment and revenue. (Para 4.28)

ANNEXURES

47

ANNEXURE-I

LIST OF ICDs/CFSs APPROVED BY THE INTER-MINISTERIAL COMMITTEE (IMC)SINCE 1992

(vide para 1.41 of the Report)

Sl. No Place Agency Year State LOI date

1 2 3 4 5 6

Andhra Pradesh (7)

1 Visakhapatnam Central Warehousing Corporation 1996 AP 10.05.96

2 Visakhapatnam M/s Sravan Shipping Services 2001 AP 22.10.01Pvt Ltd.

3 Visakhapatnam Container Corporation of 2004 AP 12.05.04India Ltd.

4 Hyderabad M/s Batco Integrated 2004 AP 24.09.04Logistics Pvt. Ltd.

5 Ongole, Prakasam M/s Korkai Terminals 2004 AP 24.09.04Pvt. Ltd.

6 Visakhapatanam M/s Gateway East India 2005 AP 10.02.05Pvt. Ltd.

7 Guntur M/s Shertrans Shipping 2006 AP 24.04.06Pvt. Ltd.

8 Fatuha Container Corporation of 2002 Bihar 02.08.02India Ltd.

Bihar (1)

9 Derra Bassi Punjab State Warehousing 1998 Chandigarh 17.09.98Corporation

Chandigarh (1)

10 Raipur Container Corporation of 2001 Chhattisgarh 17.09.01India Ltd.

Chhattisgarh (1)

11 Verna Central Warehousing Corporation 1997 Goa 10.03.97

Goa (1)

12 Kandla Central Warehousing Corporation 1992 Gujarat 15.10.92

48

1 2 3 4 5 6

13 Surat Central Warehousing Corporation 1992 Gujarat 15.10.92

14 Vadodara Gujarat State Warehousing 1993 Gujarat 01.02.93Corporation

15 Deshrath Central Warehousing Corporation 1995 Gujarat 13.12.95

16 Alkeshwar Container Corporation of India Ltd. 1999 Gujarat 24.06.99

17 Vapi Central Warehousing Corporation 1999 Gujarat 24.06.99

18 Vadodara Container Corporation of India Ltd. 2001 Gujarat 02.08.01

19 Mundra M/s MICT 2004 Gujarat 15.01.04(Kutch)

20 Gandhidham Container Corporation of India Ltd. 2004 Gujarat 24.11.04(Kandla)

21 Mundra Central Warehousing Corporation 2004 Gujarat 24.11.04

22 Kandla M/s Seabird Marine Services Pvt. 2005 Gujarat 10.02.05Ltd.

23 Nana Kapaya M/s Rishi Container Station Pvt. 2005 Gujarat 02.08.05(Mundra) Ltd.

24 Mithiroad MIs Gandhidham Developers Pvt. 2005 Gujarat 02.08.05(Kandla) Ltd.

25 Mundra M/s Saurashtras Containers Pvt. 2005 Gujarat 02.08.05Ltd.

26 Mundra Port M/s Forbes and Company*A 2005 Gujarat 26.09.05

27 Mithiroad M/s Kandla Container Freight 2005 Gujarat 26.09.05(Kandla) Stations

28 Dhrab M/s Ashutosh Container Services 2005 Gujarat 22.11.05(Mundra) Pvt. Ltd.

29 Mundra M/s Seabird Marine Services Pvt. 2006 Gujarat 20.02.06Ltd.

30 Mithirohar M/s Arvind V Joshi and Co. 2006 Gujarat 06.03.06VillageKandla

31 Mundra M/s Meridian Shipping Agency Pvt. 2006 Gujarat 17.03.06Ltd.

32 Mundra M/s Allcargo Global Logistics Ltd. 2006 Gujarat 12.10.06

33 Mundra M/s Honeycomb Logistics Pvt. Ltd. 2006 Gujarat 12.10.06

34 Ahmedabad M/s Hastri Petro Chemical and 2007 Gujarat 25.04.07Shipping Ltd.

49

1 2 3 4 5 6

35 Mundra M/s Continental Warehousing Corp. 2007 Gujarat 15.05.07(Nhava Seva) Ltd.

36 Pipavav Port M/s Box-Trans Logistic Pvt. Ltd. 2007 Gujarat 01.08.07

Gujarat (25)

37 Faridabad @ Mis Associated Container Terminal 1992 Haryana 22.10.92Ltd.

38 Rewari Haryana Warehousing Corporation 1995 Haryana 28.02.95

39 Kundli Central Warehousing Corporation 2000 Haryana 01.06.2000

40 Garhi M/s Gateway Distriparks Ltd. 2004 Haryana 14.05.04Harsaru

41 Gurgaon Container Corporation of India Ltd. 2005 Haryana 17.05.05

42 Patli M/s Inland Conware Pvt. Ltd. 2006 Haryana 01.05.06

43 Palwal M/s Inland Conware Pvt. Ltd. 2006 Haryana 12.10.06

44 Village M/s Gateway Distriparks Ltd. 2006 Haryana 12.10.06Piyala/Asaoti

Haryana (8)

45 Jamshedpur Container Corporation of India Ltd. 1999 Jharkhand 13.04.99

Jharkhand (1)

46 Jammu (Bari Central Warehousing Corporation 2001 JK 01.05.01B)

47 Rangath Jammu and Kashmir State Industrial 2005 JK 22.11.05Development Corporation Ltd.

Jammu and Kashmir (2)

48 Mangalore Central Warehousing Corporation 1995 Karnataka 14.08.95(Panambur)

49 Karwar Central Warehousing Corporation 2000 Karnataka 24.03.2000

50 Whitefield Central Warehousing Corporation 2000 Karnataka 09.08.2000

51 Bangalore @ M/s Continental Warehousing 2001 Karnataka 02.08.01Corporation Ltd.

52 Kanwar Port M/s Vikram Integrated Logistics 2004 Karnataka 13.05.04Pvt. Ltd.

53 Bangalore M/s Continental Container Fright 2005 Karnataka 02.08.05Station

50

1 2 3 4 5 6

Karnataka (6)

54 Cochin M/s Sea Tech Services Ltd. 1994 Kerala 17.03.94

55 Willington M/s Asian Terminals 1995 Kerala 24.10.95Island Cochin

56 Aroor @ M/s Pace CFS Private Ltd. 1997 Kerala 04.05.97

57 Cochin Kerala State Warehousing, 1998 Kerala 05.10.98Corporation

58 Kottayam M/s Kottayam Port and Container 2005 Kerala 17.05.05Terminal Service Pvt. Ltd.

59 Kannur Central Warehousing Corporation 2005 Kerala 17.05.05

60 Cochin Container Corporation of India Ltd. 2006 Kerala 26.07.06

61 Cochin M/s Falcon Infrastructures Ltd. 2007 Kerala 26.09.07

Kerala (8)

62 Nhava Sheva M/s Maersk India Pvt. Ltd. 1992 Maharashtra 14.08.92

63 Dronagiri Central Warehousing Corporation 1992 Maharashtra 15.10.92Node

64 Nasik Central Warehousing Corporation 1993 Maharashtra 13.08.93

65 Nagpur Container Corporation of India Ltd. 1995 Maharashtra 28.03.95

66 Aurangabad Container Corporation of India Ltd. 1995 Maharashtra 29.05.95

67 Nagpur Maharashtra State Warehousing 1995 Maharashtra 29.05.95Corpn.

68 Jalgaon Maharashtra State Warehousing 1996 Maharashtra 09.01.96Corpn.

69 Waluj Central Warehousing Corporation 1996 Maharashtra 15.07.96

70 Dronagiri M/s Gateway Distriparks Ltd. 1996 Maharashtra 15.07.96

71 Dronagiri Balmer Lawrie & Co. Ltd. 1997 Maharashtra 10.03.97Node

72 Dronagiri, CONCOR + CWC 1997 Maharashtra 10.03.97

73 Dighi, Pune M/s Dynamic Logistics 1997 Maharashtra 04.05.97

74 Dronagiri M/s United Liner Agencies of India 1998 Maharashtra 17.09.98Node Pvt. Ltd.

75 Miraj Container Corporation of India Ltd. 1998 Maharashtra 17.09.98

76 Kalamboli Maharashtra State Warehousing 1998 Maharashtra 26.10.98Corpn.

51

1 2 3 4 5 6

77 Bhusawal Container Corporation of India 2000 Maharashtra 01.06.2000Ltd.

78 Navi Mumbai M/s Continental Warehousing 2001 Maharashtra 02.08.01Corpn. Ltd. 09.05.02

79 Dronagiri Container Corporation of India 2001 Maharashtra 19.10.01Node Ltd.

80 Dronagiri M/s Allcargo Movers (India Pvt. 2001 Maharashtra 19.10.01Node Ltd.

81 Dronagiri M/s Seabird Marina Services Pvt. 2003 Maharashtra 30.06.03Node Ltd.

82 Dronagiri Maharashtra State Warehousing 2003 Maharashtra 08.07.03Node Corpn.

83 CWC Central Warehousing Corporation 2004 Maharashtra 07.01.04DistriparkBhendakhal,Navi Mumbai

84 Desur Container Corporation of India 2004 Maharashtra 22.01.04(Belgaum) Ltd.

85 Navi Mumbai M/s Continental Warehousing 2004 Maharashtra 28.07.04Corpn. (Nhava Shava) Ltd.

86 Dhasakoshi M/s Ameya Logistics Pvt. Ltd. 2004 Maharashtra 25.08.04

87 Impex Park, Central Warehousing Corporation 2004 Maharashtra 09.09.04DronagiriNode

88 Panvel M/s JWC Logistics Park Pvt. 2004 Maharashtra 24.11.04Ltd.

89 Panvel M/s Preeti Logistics Ltd. 2004 Maharashtra 30.12.04

90 Nhava Sheva M/s Forbes & Com. *A 2005 Maharashtra* 10.02.05A

91 Navi Mumbai Central Warehousing Corporation 2005 Maharashtra 10.02.05

92 Dronagiri M/s Maersk India Pvt. Ltd. 2005 Maharashtra 17.05.05

93 Dharamtar M/s PNP Maritime Services Pvt. 2005 Maharashtra 10.11.05Port, Ltd.Navi Mumbai

94 Nasik (I/A) Container Corporation of India Ltd. 2006 Maharashtra 06.03.06

95 Shridon M/s Transindia Cargo Systems 2006 Maharashtra 06.03.06Village, Pvt. Ltd.Navi Mumbai

52

1 2 3 4 5 6

96 Village M/s Apollo International Ltd. 2006 Maharashtra 11.05.06Dhasa Khosi,Navi Mumbai

97 Koproli M/s Nhava Sheva Logistics Pvt. 2006 Maharashtra 11.05.06Village, Ltd.Navi Mumbai

98 Telegaon M/s KSH Distriparks Pvt. Ltd. 2006 Maharashtra 26.07.06Dabhade,Pune

99 Jui Village, M/s Coralline Container Services 2007 Maharashtra 01.08.07JNPT Pvt. Ltd.

100 Village M/s Gem Distriparks and Logistics 2007 Maharashtra 02.08.07Dighode Ltd.

101 Village Sai M/s Arshhiya Technologies 2007 Maharashtra 23.08.07@ International Ltd.

102 Village M/s Ramtech Infraservices Pvt. 2007 Maharashtra 15.11.07Dighode@ Ltd.

Maharashtra (41)

103 Indore Container Corporation of India Ltd. 1993 MP 13.08.93

104 Gwalior Container Corporation of India Ltd. 1995 MP 28.02.95

105 Mandideep Container Corporation of India Ltd. 2002 MP 02.08.02

106 Nimrani M/s Pegasus Logistics Pvt. Ltd. 2006 MP 06.03.06

Madhya Pradesh (4)

107 Ballasore Container Corporation of India Ltd. 1994 Orissa 19.10.94

Orrisa (1)

108 Pondicherry M/s Sattva Hi-Tech and Conware Pvt.1999 Pondicherry 06.05.99Ltd.

109 Pondicherry M/s Continental Container Freight 2004 Pondicherry 21.09.04Station

Pondicherry (2)

110 Amritsar Punjab State Warehousing 1992 Punjab 13.07.92Corporation

111 Bhatinda Punjab State Warehousing 1993 Punjab 13.08.93Corporation

53

1 2 3 4 5 6

112 Ludhiana M/s Overseas Warehousing Pvt. 1997 Punjab 04.05.97Ltd.

113 Ludhiana M/s Krishna Cargo Movers Pvt. 2006 Punjab 11.05.06Ltd.

114 Amloh Road M/s Gurudev Impex Pvt. Ltd. 2007 Punjab 13.09.07

Punjab (5)

115 Jodhpur Rajasthan Small Industries 1993 Rajasthan 22.01.93Corporation

116 Udaipur Central Warehousing Corporation 1993 Rajasthan 13.08.93

117 Bhilwara Rajasthan Small Industries 1996 Rajasthan 06.06.96Corporation

118 Bhiwadi Rajasthan Small Industries 1997 Rajasthan 10.03.97Corporation

119 Jaipur Container Corporation of India Ltd. 1997 Rajasthan 10.11.97

120 Jodhpur Container Corporation of India Ltd. 1999 Rajasthan 01.09.99

121 Jodhpur M/s Hasti Petro Chemical and 2000 Rajasthan 24.03.2000Shipping Ltd.

122 Ravatha Container Corporation of India Ltd. 2004 Rajasthan 22.01.04Road (Kota)

123 Mandavaria M/s Inland Conware Pvt. Ltd. 2007 Rajasthan 01.08.07

Rajasthan (9)

124 Tuticorin Container Corporation of India Ltd. 1992 TN 22.10.92

125 Tuticorin @ M/s SEC Services Ltd. 1992 TN 16.10.92

126 Madhavaram Central Warehousing Corporation 1993 TN 13.08.93

127 Tirupur M/s TEA Lemuir Cont. Terminal 1994 TN 28.03.94Pvt. Ltd.

128 Tuticorin M/s St. John Freight Systems Pvt. 1994 TN 11.08.94Ltd.

129 Coimbatore, Central Warehousing Corporation 1995 TN 14.08.95Singanallur

130 Chennai M/s Gateway Distriparks (South) 1995 TN 28.02.95Pvt. Ltd. 10.05.05

131 Chennai M/s A.S. Shipping Agencies Pvt. 1995 TN 28.02.95Ltd.

54

1 2 3 4 5 6

132 Salem M/s Sanco Trans Ltd. 1995 TN 14.08.95

133 Chennai Balmer Lawrie and Co. Ltd. 1995 TN 24.10.95

134 Chennai M/s Viking Warehousing 1995 TN 24.10.95

135 Chennai M/s SICAL CWT Distriparks Ltd. 1996 TN 15.07.96

136 Chennai M/s Binny Limited 1996 TN 15.07.96

137 Tuticorin Central Warehousing Corporation 1997 TN 10.11.97

138 Tuticorin M/s Sanco Trans Ltd. 1997 TN 10.11.97

139 Madurai Container Corporation of India Ltd. 1997 TN 10.11.97

140 Chennai M/s Sattva Hi-Tech and Conware 1999 TN 01.09.99Pvt. Ltd.

141 Malpakkam M/s Sattva Hi-Tech and Conware 2000 TN 24.03.2000Arakkonam (Arakkonam) Pvt. Ltd.

142 Tuticorin M/s Continental Container Freight 2000 TN 24.03.2000Station

143 Karur M/s Continental Container Freight 2000 TN 28.06.2000Station

144 Redhills M/s Continental Warehousing Corpn. 2000 TN 09.08.2000Ltd., Chennai

145 Tuticorin M/s Raja Agencies 2001 TN 07.06.01

146 Manali M/s Indian Corp. Business Centre 2002 TN 02.08.02Ltd.

147 Tirupur M/s Continental Container Freight 2002 TN 06.08.02Station

148 Tuticorin M/s K.S.P.S. Natarajan CFS Park 2002 TN 07.08.02Pvt. Ltd.

149 Tuticorin M/s Hari & Co. 2002 TN 16.08.02

150 Manali M/s Kailash Shipping Services 2002 TN 08.11.02Pvt. Ltd.

151 Edyansavadu M/s Triway CFS Pvt. Ltd. 2002 TN 22.11.02(ponneri Taluk)

152 Tirupur Container Corporation of India Ltd. 2003 TN 07.05.03

153 Chennai M/s Vishrutha Logistics Ltd. 2003 TN 30.06.03

154 Coimbatore M/s Chettinad Logistics Pvt. Ltd. 2003 TN 26.09.03

155 Irugur Container Corporation of India Ltd. 2004 TN 24.11.04

55

1 2 3 4 5 6

156 Tuticorin M/s A.S. Shipping Pvt. Ltd. 2005 TN 17.05.05

157 Manali M/s Sattva Logistics Pvt. Ltd. 2005 TN 26.09.05

158 Chennai M/s Allcargo Movers (I) Pvt. Ltd. 2006 TN 06.03.06

159 Vallur Village, M/s German Express Shipping 2006 TN 06.03.06Chennai Agency (India) Pvt. Ltd.

160 Napalayam M/s PRK Container Freight Station 2006 TN 11.05.06Chennai Pvt. Ltd.

161 Vichur M/s Avanthi Logistics Pvt. Ltd. 2006 TN 29.06.06Village,Chennai

162 Sadayankuppam M/s GRR Logistics Pvt. Ltd. 2006 TN 26.07.06Village,Chennai

163 Chennai M/s St. John Freight Systems Ltd. 2006 TN 26.07.06

164 Chennai M/s Chandra CFS and Terminal 2006 TN 26.07.06Operators Pvt. Ltd.

165 Kattrambakkam M/s Sun Global Logistics Pvt. Ltd. 2006 TN 26.07.06Village,Chennai

166 Irungattukottai, M/s Indev Logistics Pvt Ltd. 2006 TN 26.07.06Chennai

167 Vichur M/s ABN Logistics (P) Ltd. 2006 TN 26.07.06Village,Chennai

168 Chennai M/s Devadoss Reddy Logistics 2006 TN 12.10.06Pvt. Ltd.

169 Tuticorin M/s Vilsons Container Terminal 2007 TN 15.05.07

170 Tuticorin M/s Continental Warehousing 2007 TN 15.05.07Corporation (Nhava Seva) Ltd.

171 Gummidipo- M/s Durai Shipping and Services 2007 TN 15.05.07ondi, Chennai Pvt. Ltd.

172 Irrungathik- M/s Hyundai Motor India Ltd. 2007 TN 15.05.07ottai, Chennai

173 Chrompet Central Warehousing Corporation 2007 TN 02.08.07(Chennai)

174 Chennai M/s Ennore Cargo Containers 2005 TN 10.02.05Terminals Pvt. Ltd. $

Tamil Nadu (51)

56

1 2 3 4 5 6

175 Kanpur Central Warehousing Corporation 1994 UP 19.10.94

176 Varanasi Central Warehousing Corporation 1995 UP 29.05.95

177 Agra Container Corporation of India Ltd. 1995 UP 29.05.95

178 Saharanpur Central Warehousing Corporation 1996 UP 10.05.96

179 Dadri, Container Corporation of India Ltd. 1997 UP 10.11.97Greator,Noida

180 Kanpur Container Corporation of India Ltd. 1998 UP 17.09.98

181 Loni Central Warehousing Corporation 1998 UP 17.09.98

182 Bhadohi Central Warehousing Corporation 1998 UP 17.09.98

183 Surajpur, G. Central Warehousing Corporation 1999 UP 13.04.99Noida

184 Dadri M/s Star Track Terminal Pvt. Ltd. 2004 UP 14.01.04

185 Dadri M/s Albatross CFS Pvt. Ltd. 2005 UP 08.02.05

186 Dadri M/s Trident Terminals Pvt. Ltd. 2005 UP 10.02.05

187 Madhosingh Container Corporation of India Ltd. 2005 UP 17.05.05(Mirzapur)

188 Dadri M/s CMA CGM Logistics Park 2006 UP 20.02.06(Dadri) Pvt. Ltd.

Uttar Pradesh (14)

189 Calcutta Balmer Lawrie and Co. Ltd. 1992 WB 13.07.92

190 Calcutta Central Warehousing Corporation 1992 WB 15.10.92

191 Haldia Central Warehousing Corporation 1996 WB 09.01.96

192 Cossipore Container Corporation of India Ltd. 1998 WB 20.04.98Road

193 Haldia M/s A.L. Logistics Pvt. Ltd. 2003 WB 27.05.03

194 Durgapur M/s Allied Services Ltd. 2005 WB 08.02.05

West Bengal (6)

57

ANNEXURE-II

CONCOR CONTAINER TERMINALS

(vide para 1.49 of the Report)

Pure Exim Container Concor Container Pure DomesticTerminals (18) Terminals Terminals (9)

Combined (Exim+Domestic) ContainerTerminals (31)

1 2 3

(CENTRAL REGION) (CENTRAL REGION) (CENTRAL REGION)

Nil 1 Daulatabad (Aurangabad) 1 Fatuha (Patna)

(EASTERN REGION) 2 Nagpur 2 Shalimar (Kolkata)

1 Amingaon (Guwahati) 3 Bhusawal (NORTHERN REGION)

(NORTHERN REGION) 4 Raipur 3 Okhla (Delhi)

2 Tughlakabad (Delhi) 5 Mandideep (Bhopal) 4 Phillaur (Ludhiana)

3 Babarpur (Panipat) (EASTERN REGION) (NORTH WEST REGION)

4 Dhandharikalan (Ludhiana) 6 Majerhat (Kolkata) 5 Khodiyar (Ahmedabad)

5 Dadri (Greater Noida) 7 Balasore (SOUTHERN REGION)

6 Malanpur (Gwalior) 8 Tata Nagar (Jamshedpur) 6 Salem Market

(NORTH WEST REGION) 9 Haldia (SOUTH CENTRAL REGION)

7 Sabarmati (Ahmedabad) (NORTHERN REGION) 7 Sanathnagar (Hyderabad)

8 Vadodara (Chhani) 10 Moradabad 8 Guntur

(SOUTHERN REGION) 11 Rewari (WESTERN REGION)

9 Milavittan (Tuticorin) 12 Kanakpura (Jaipur) 9 Turbhe (Mumbai)

10 Irugur (Coimbatore) 13 Ballabhgarh

11 Harbour of Madras (Chennai) 14 Bhagat ki Kothi (Jodhpur)

12 Tiruppur 15 Sonepat

(SOUTH CENTRAL REGION) 16 Dhappar

13 Sanathnagar (Hyderabad) (NORTH CENTRAL REGION)

(WESTERN REGION) 17 Agra East Bank (Agra)

14 New Mulund (Mumbai) 18 Kanpur

57

58

1 2 3

15 Mulund (Mumbai) 19 Ravtha Road (Kota)

(NORTH WEST REGION) 20 Madho Singh (Mirazpur)

16 Pithampur (Indore) 21 Vododara

17 Dronagiri Node 22 Gandhidham

18 Ratlam 23 Ankleshwar

(SOUTHERN REGION)

24 Whitefield (Bangalore)

25 Tondiarpet (Chennai)

26 Koodal Nagar (Madurai)

27 Cochin

(SOUTH CENTRAL REGION)

28 Visakhapatnam

29 Desur

(WESTERN REGION)

30 Miraj

31 Chinchwad (Pune)

59

MINUTES

61

*XVISIXTEENTH MEETING

The Department-related Parliamentary Standing Committee on Commerce met at 11.30 A.M.on Wednesday, the 18th April, 2007, in Room No. ‘62’, First Floor, Parliament House, New Delhi.

PRESENT


RAJYA SABHA


3. Shri K Keshava Rao

4. Shri Moinul Hassan

5. Shri Dinesh Trivedi

LOK SABHA



8. Shri N. N. Krishnadas







15. Shri Sarbananda Sonowal

16. Shri Amitava Nandy



SECRETARIAT

Shri Ravi Kant Chopra, JS & FA


Shri M. K. Khan, Under Secretary

Shri D. K. Mishra, Committee Officer

2. * * *

61

* Minutes of 1st to 15th meetings of the Committee pertains to other matters.

*** Pertains to other subject.

62

3. * * *

4. While considering the Report on *** pertaining to the Department of Commerce, theCommittee felt that infrastructure was the biggest bottleneck for exports, as well as formanufacturing. The Committee decided that the Chairman may constitute a Sub-committee, tostudy the export infrastructure available at Airports, Ports, ICDs and LCSs in the country. TheCommittee also decided that the Chairman may constitute another Sub-Committee, to examine theconcept of Towns of Export Excellence.

5. The Committee adjourned at 2.15 P.M.


63

IFIRST MEETING

The Department-related Parliamentary Standing Committee on Commerce met at 1.00 P.M.on Monday, the 11th August, 2008, in Private Dinning Room ‘PDR’, Ground Floor, ParliamentHouse Annexe, New Delhi.

PRESENT


RAJYA SABHA





LOK SABHA

6. Shri C. K. Chandrappan

7. Shri Manjunath Kunnur

8. Shri Amitava Nandi





13. Shri Sippiparai Rathod




SECRETARIAT


Shri M. K. Khan, Deputy Director

Shrimati Indira C. Vaidya, Committee Officer

2. * * *

3. * * *

4. The Chairman directed the Secretariat that a list of the companies that have been awardedcontracts for development/modernisation of airports in metro cities and ports across the countrymay also be obtained from the concerned Ministries.

5. The meeting adjourned at 1.50 P.M.

63


64

*VFIFTH MEETING

The Department-related Parliamentary Standing Committee on Commerce met at 12.00 Noonon Thursday, the 15th January, 2009, in Room No. ‘63’, First Floor, Parliament House, New Delhi.

PRESENT


RAJYA SABHA






LOK SABHA

7. Shri C. K. Chandrappan




11. Shri S. P. Y. Reddy





SECRETARIAT



Shri T. N. Pandey, Deputy Director


WITNESSES

REPRESENTATIVES OF MINISTRIES/DEPARTMENTS

I. Department of Commerce

Shri. Rahul Khullar, Special Secretary

Shri N. K. Gupta, Joint Secretary

Shri A. K. Bamba, Director

64

* Minutes of 2nd to 4th meeting of the Committee pertain to other matters.

65

II. Department of Revenue

Shri P. V. Bhide, Secretary (Revenue)

Shri P. C. Jha, Chairman, CBEC

Shri J. K. Bhatra, Member (Customs)

Shri Y. G. Parande, DG (Systems), CBEC

Shri S. K. Thakur, Deputy Secretary CBEC

Ms. Kameswari Subramanian, Joint Secretary, (Customs) CBEC

Shri A. K. Kaushal, Commissioner of Customs, Bangalore

Shri M. M. Parthiban, Director (Customs)

III. Department of Civil Aviation

Shri K. N. Shrivastava, Joint Secretary

IV. Department of Food and Public Distribution

Shrimati Alka Sirohi, Secretary (F&PD)

Shri N. K. Raghupathy, Addl. Secretary & FA

Shri Naveen Prakash, Joint Secretary

Shri B. B. Pattanaik, CMD, CWC

Shri Mahesh Pandey, General Manager (Project), CWC

V. Ministry of Railways (Railway Board)

Shri Sri Prakash, MT

Shri Girish Chandra, AM/T

Shri Pradeep Bhatnagar, Adv/Infra

Shri D. P. Pandey, Adv./Marketing

Shri Rakesh Mehrotra, MD, CONCOR

VI. Department of Shipping

Shri Vijay Chhibber, AS & FA

Shri R. Srinivasa Naik

Sub: Towns of Export Excellence and Export Infrastructure at Airports, Ports, InlandContainer Depot (ICDs) and land Custom Stations (lCSs) in the country.

2. The Committee heard the views of the representatives of the Department of Commerce,Department of Revenue, Ministry of Civil Aviation, Department of Food and Public Distribution,Ministry of Railways (Railway Board) and Department of Shipping on the subject of Towns ofExport Excellence and Export Infrastructure at Airports, Ports, Inland Container Depot (ICDs) andLand Custom Stations (LCSs) in the country. Thereafter, Members sought some clarificationswhich were partially replied to by the witnesses. The Chairman directed the witnesses to send theirwritten replies in response to the queries, for which information was not readily available withthem.

3. A verbatim record of the proceedings of the meeting was kept.


66

*VIISEVENTH MEETING

The Department-related Parliamentary Standing Committee on Commerce met at 3.00 P.M.on Thursday, the 19th February, 2009; in Committee Room ‘A’, Ground Floor, Parliament HouseAnnexe, New Delhi.

PRESENT


RAJYA SABHA




LOK SABHA


6. Shri N. N. Krishnadas







SECRETARIAT





WITNESSES

REPRESENTATIVES OF DEPARTMENTS

1. Department of Commerce

Shri G. K. Pillai, Secretary

Shri R. Gopalan, Additional Secretary

II. Department of Revenue

Shri P. V. Bhide, Secretary (Revenue)

66

* Minutes of 6th meeting of the Committee pertain to other matters.

67

Shri P. C. Jha, Chairman, CBEC

Shri J. K. Batra, Member (Customs)

Ms. Kameswari Subramanian, Joint Secretary, (Customs) CBEC

Shri L. K. Gupta, Joint Secretary, (Admn, E & C)

Shri Y. G. Parande, DG (Systems), CBEC

Shri G. S. Narang, D.G. (CBEC)

Shri M. M. Parthiban, Director (Customs)

III. Department of Road Transport and Highways

Shri Brahm Dutt, Secretary

Shri Brijeshwar Singh, Chairman, NHAI

Shri V. K. Sinha, ADG-I

Shri Nirmaljit Singh, ADG-II

2. The Committee heard the views of the representatives of the Department of Commerce,Department of Revenue and Department of Road Transport and Highways on the subject of Townsof Export Excellence and Export Infrastructure at Airports, Ports, Inland Container Depot (ICDs)and Land Custom Stations (LCSs) in the country. Thereafter, Members sought some clarificationswhich were partially replied to by the witnesses. The Chairman directed the witnesses to send theirwritten replies in response to the queries, for which information was not readily available withthem.



68

VIIIEIGHTH MEETING

The Department-related Parliamentary Standing Committee on Commerce met at 12.00 Noonon Monday, the 2nd March, 2009, in Room No. ‘63’, First Floor, Parliament House, New Delhi.

PRESENT


RAJYA SABHA






LOK SABHA









SECRETARIAT





WITNESSES

REPRESENTATIVES OF DEPARTMENTS

I. Department of Industrial Policy and Promotion

* * *

II. Department of Consumer Affairs

* * *

2. * * *

68


69


4. Some Members drew attention of the Chairman towards the oral evidence heard by theCommittee in respect of the subject of Towns of Export Excellence and the Export Infrastructureat Ports, Airports, ICDs and LCSs in the country. They were of the view that it would be in thefitness of things if the views of Secretary, Ministry of Urban Development were also heard, sincethat Ministry could also supplement the initiatives of other Departments in providing the requisiteexport infrastructure. The Committee authorized the Chairman to hear the views of Secretary,Ministry of Urban Development, on behalf of the Committee.


70

IXNINTH MEETING

The Department-related Parliamentary Standing Committee on Commerce met at 12.00 Noonon Monday, the 4th May, 2009, in Room No. ‘63’, First Floor, Parliament House, New Delhi.

PRESENT


RAJYA SABHA



LOK SABHA










SECRETARIAT

Shri P. Gopalakrishnan, Additional Secretary and Financial Adviser



Shrimati Indira Chaturvedi Vaidya, Committee Officer

2. The Chairman informed the Members that this would be the last meeting of this Committee.He thanked Members for their wholehearted co-operation in accomplishing the tasks undertaken bythe Committee. He also conveyed his appreciation to the Convenors and Members of the two SubCommittees, for gathering useful information on various subjects under study, for consideration ofthe Committee.

3. Members of the Committee conveyed their gratitude and appreciation for the dynamicleadership provided by the Chairman to the Committee. They were all praise for his intellectualcapabilities and his in-depth understanding of the subjects taken up by the Committee. TheMembers thanked him for his contribution in producing very thought-provoking reports, which hadreceived wide acclaim.

70

71

4. * * *

5. The Committee then took up for consideration the draft Reports on (i) ***, (ii) ***, and(iii) Export Infrastructure at Airports, Ports, ICD, LCSs, etc. and Towns of Export Excellence inthe Country. After some discussion, the Committee adopted the above Reports and authorized theChairman to effect necessary changes and corrections therein. Since the Parliament was not insession, the Committee authorized the Chairman that the Report may be presented to Hon’bleChairman, Rajya Sabha, in accordance with the procedure laid down in the direction of Hon’bleChairman, as published in Rajya Sabha Bulletin, Part II, dated 25th January, 1996.

6. The Chairman then informed Members that he had to drop the idea of hearing the views ofSecretary, Ministry of Urban Development on the subject of Export Infrastructure at Airports,Ports, ICDs, LCSs etc. and Towns of Export Excellence in the country, due to paucity of time.The Committee agreed with the Chairman. However, it decided that a suitable para may be insertedin the draft report to the effect that the Department of Commerce may co-ordinate with theMinistry of Urban Development also in taking various measures in respect of Export Infrastructureat Airports, Ports, ICDs, LCSs etc. and Towns of Export Excellence in the country.



72

IIMINUTES OF THE MEETINGS OF SUB-COMMITTEE-I OF THE DEPARTMENT

RELATED PARLIAMENTARY STANDING COMMITTEE ON COMMERCE

IFIRST MEETING

The Sub-Committee-II of the Department-related Parliamentary Standing Committee onCommerce met at 11.00 A.M. on Thursday, the 31st January, 2008, in Committee Room ‘A’,Ground Floor, Parliament House Annexe, New Delhi.

PRESENT


RAJYA SABHA



LOK SABHA

4. Shri D. V. Sadananda Gowda



7. Shri Nikhilanada Sar


SECRETARIAT


Shri M.K. Khan, Deputy Director


WITNESSES

Department of Commerce

Shri R. Gopalan, Addl. Secretary

Shri R.S. Gujral, Addl. Secretary

Shri N.K. Gupta, Joint Secretary

2. The Sub Committee heard the views of Additional Secretary, Department of Commerce, onthe subject of Export Infrastructure at Airports, Ports, ICDs and LCS in the country and Townsof Export Excellence. Members sought some clarifications which were replied to by the witnesses.The Convenor directed the witnesses to send their written replies in response to the queries, forwhich information was not readily available, as early as possible.

3. The Sub Committee then discussed its future programme. After some discussion, the Sub-Committee decided to visit the States of Kerala and Tamil Nadu from 11th to 15th February, 2008

72

73

for obtaining first hand information on the subject of Towns of Export Excellence and ExportInfrastructure at Airports, Ports, ICDs and LCSs in the country. The Sub Committee authorizedthe Convenor to finalize the details of the visit programme and seek permission of the Hon’bleChairman, Rajya Sabha, through the Chairman of the Committee, for the visit.

4. The Sub Committee adjourned at 12.15 P.M.

74

IISECOND MEETING

The Sub-Committee-II of the Department-related Parliamentary Standing Committee onCommerce met at 3.00 P.M. on Wednesday, the 23rd April, 2008, in Committee Room ‘A’, GroundFloor, Parliament House Annexe, New Delhi.

PRESENT


RAJYA SABHA


LOK SABHA




SECRETARIAT




2. The Sub-Committee-II took up for review the progress of consideration of the subjectpending before it, namely, the Towns of Export Excellence and the Exports Infrastructure at theAir Ports, Ports, ICDs, LCS, etc. in the country and discussed its future programme. After somediscussion, the Sub-Committee decided to visit the States of West Bengal, Tripura, Assam, Sikkimand Manipur from 24th to 31st May, 2008 for obtaining first hand information on the subject. TheSub Committee authorized the Convenor to finalize the details of the visit programme and seekpermission of Hon’ble Chairman, Rajya Sabha, through the Chairman of the Committee, for theproposed visit.

3. The Sub-Committee adjourned at 3.45 P.M.

74

75

IIMINUTES OF THE MEETINGS OF SUB-COMMITTEE-II OF THE DEPARTMENT

RELATED PARLIAMENTARY STANDING COMMITTEE ON COMMERCE

IFIRST MEETING

The Sub-Committee-II of the Department-related Parliamentary Standing Committee onCommerce met at 12.00 Noon on Monday, the 18th August, 2008, in Committee Room ‘E’,Basement, Parliament House Annexe, New Delhi.

PRESENT


MEMBERS

RAJYA SABHA




LOK SABHA








SECRETARIAT




2. The Convenor welcomed Members to the first meeting of the reconstituted SubCommittee. The Sub Committee then discussed its future programme and took up for review theprogress of examination of the subject pending before it namely, ‘Towns of Export Excellence andExport Infrastructure at Airports, Ports, ICDs and LCSs in the country’. After some discussion,the Sub Committee decided to visit Ahmedabad, Mumbai, Bangalore, Hyderabad and Visakhapatnamfrom 4th to 9th September, 2008, for obtaining first hand information in respect of the subjectunder examination. The Sub Committee authorized the Convenor to finalize the details of the visitand seek permission of Hon'ble Chairman, Rajya Sabha, through the Chairman of the Committee,for the visit.


75

IISECOND MEETING

The Sub-Committee-II of the Departmen-related Parliamentary Standing Committee onCommerce met at 3.00 P.M. on Wednesday, the 12th November, 2008, in Committee Room ‘D’,Ground Floor, Parliament House Annexe, New Delhi.

PRESENT


MEMBERS

RAJYA SABHA


LOK SABHA







SECRETARIAT




2. The Sub-Committee took up for review the progress of examination of the subject pendingbefore it namely, ‘Towns of Export Excellence and Export Infrastructure at Airports, Ports, ICDsand LCSs in the country’. The Convenor pointed out that for a fruitful examination of the subject,it was very important to hear the views of the representatives of the Ministries/Departmentsconcerned with the subject. Some Members opined that the main Committee was going to meeton the 21st, 22nd and 24th November, 2008. It may be more appropriate if they are invited beforethe full Committee. The Sub Committee, therefore, decided that the Convenor may request theChairman of the Committee to invite the representatives of the Ministries of Civil Aviation andRailways and the Departments of Commerce; Food and Public Distribution; Revenue and Shipping,at one of its next sittings, to present their views on the subject.

3. The Sub-Committee then decided to visit Delhi, Amritsar, Ludhiana, Panipat, Mundra andKandla from 27th November to 1st December, 2008, for obtaining first hand information in respectof the subject under examination. The Sub-Committee authorized the Convenor to finalize the detailsof the visit and seek permission of Hon’ble Chairman, Rajya Sabha, through the Chairman of theCommittee, for the visit.


76

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