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RECOMMENDATIONS/OBSERVATIONS - AT A GLANCE

OVERVIEW OF EXPORTS

1. The Committee is concerned that our exports have contracted since

2019-20, registering a negative growth rate of (-) 15.73 per cent in 2020. The

Committee also observes that though the share of India has shown marginal

increase, it has commanded only a meagre share of 2.15 per cent share in

global exports. In view of the crucial role played by exports in the overall

economic growth of a country, the Committee opines that India needs to step

up its effort in export promotion, expand its export baskets and penetrate new

export markets to recover from its current slump and increase its share in

global exports. The Committee also feels that India needs to revamp its overall

domestic manufacturing conditions and logistics chain to enable our products

to be competitive in the global markets. The Committee, therefore,

recommends the Department of Commerce to take appropriate measures,

relook its export strategies and policies to achieve positive growth rate of

exports and higher share in global exports markets. (Para 2.4)

LOGISTIC SECTOR AND NATIONAL LOGISTICS POLICY

2. The Committee notes that the logistics cost in India is higher in

comparison with developed countries and reducing it is crucial for bringing

down overall cost in exports and achieving a competitive edge in the export

markets. It also takes note that the Department has formulated a National

Logistic Policy to address logistical issues in a holistic manner. However, the

Committee is deeply discontented to learn that the policy has not been

finalized despite the Committee’s repeated recommendation in its 158th

and

163rd

Reports to finalize the policy. The Committee, therefore, reiterates its

recommendation to finalize the policy and an action taken note in this regard

may be furnished to the Committee. (Para 3.5)

STATUS OF EXPORT INFRASTRUCTURE OF COMMODITY BOARDS

AND AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORT

DEVELOPMENT AUTHORITY (APEDA)

3. The Committee observes that the total budgetary support provided to

commodity Boards and Agricultural and Processed Food Products Export

3

Development Authority (APEDA) for infrastructure development since 2017-

18 is only Rs. 582.96 crore. The budgetary support provided to Tea Board and

Coffee Board is particularly found to be abysmally low. It is the firm opinion

of the Committee that availability of robust infrastructure for the commodity

Boards and APEDA is crucial for augmenting our exports in view of the fact

that these products constitute a major portion of our export basket. The

Committee, therefore, recommends that budgetary allocation to the Boards

and APEDA should be enhanced to enable them to develop a robust and

vibrant infrastructure for meeting the demands of our exports. The

Committee further recommends APEDA and commodity Boards to take

concerted steps to generate revenue through marketing and selling of

products, holding events, etc. (Para 4.4)

INSPECTION, TESTING AND CERTIFICATION

4. The Committee acknowledges the steps taken by the Department for

augmenting testing, inspecting and certification infrastructure. The

Committee recommends the Department to continue its effort in this direction

and also ensure the timely completion of establishment of proposed

laboratories at Ahmedabad and Faridabad. The Committee also recommends

the Department to take proactive measures to promptly identify any

commodity/regional specific requirement of inspection and testing services

and bridge the infrastructural gaps accordingly. (Para 5.4)

PACKAGING TECHNOLOGY

5. The Committee learnt that efficient packaging helps in optimizing

warehouse space and improves the load factor of vehicles without

compromising the safety and integrity of cargoes. The Committee

recommends the Department through the Indian Institute of Packaging (IIP)

and in consultation with stakeholder to formulate standardized packing

guidelines for different categories of cargoes to be followed by logistics

operators. The Committee further recommends that best practices in

packaging around the world that are suitable for our logistics chain may be

studied and adopted. (Para 6.3)

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PRODUCT AND REGIONAL SPECIFIC EXPORT INFRASTRUCTURE

FRUIT PRODUCTS OF JAMMU & KASHMIR

6. The Committee recommends the Department to undertake a study on

the quantum and types of infrastructural requirements to facilitate the export

of fruit products from the Union Territory of Jammu & Kashmir. The

Committee further recommends the Department to provide the required

budgetary support to bridge the infrastructural gap and consult with the

concerned stakeholders and administration of the Union Territory for

augmenting the export infrastructure. (Para 7.3)

AGRO PRODUCTS FROM NORTH EASTERN REGION

7. The Committee recommends the Department to coordinate with the

concerned Ministries/ Departments to identify strategic locations in the region

and set up the required warehousing and cold chain infrastructure, integrated

testing laboratories equipped with modern irradiation facility and compliant

to Food and Drug Administration (FDA) and EU norms, and also provide

necessary export inspection and certification services to boost exports of

agricultural and horticultural products from the region. (Para 7.6)

8. The Committee recommends that packing house with pulping units

approved by Agricultural and Processed Food Products Export Development

Authority (APEDA) may be set up specifically for the production and packing

of better grade products to cater to domestic and global premium markets.

(Para 7.7)

9. The Committee recommends the Department to leverage on the

indigenous capacity of organic farming in the region and provide the

inspection and testing services required for adhering to international

standards and certifications to facilitate the export of organic products to

premium markets of USA and EU. (Para 7.8)

CHILLI EXPORT FROM GUNTUR, ANDHRA PRADESH

10. The Committee recommends the Department of Commerce to

coordinate with Ministry of Food Processing Industries to provide adequate

number of cold chain warehouses for exports of chillies in Guntur District of

Andhra Pradesh. (Para 7.10)

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TEXTILE EXPORT FROM SOLAPUR, MAHARASHTRA

11. The Committee recommends the Department for Promotion of Industry

and Internal Trade via the National Design Institute (NID) to lend necessary

assistance to textile industries for modernisation of its design process. The

Committee also recommends the Department of Commerce to provide

assistance under the Trade Infrastructure for Export Scheme to install digital

printing units for the textile industrial clusters and coordinate with the State

Government of Maharashtra in this regard. (Para 7.12)

ELECTRONICS SECTOR IN BANGALORE

12. The Committee notes the critical requirements of robust testing and

certification infrastructure to cater to the expanding manufacturing capacity

of the electronics sector. The Committee, therefore, recommends the

Department of Commerce to coordinate with the Ministry of Electronics and

Information Technology to identify the infrastructural gaps in the electronics

sector and take measures to augment the same. (Para 7.15)

EXPORT INCENTIVE SCHEMES

13. The Committee recommends that the value addition criteria may be

relaxed and instead of fixing a 15 per cent weightage, a positive value addition

in itself may be accepted. The Committee further recommends that

procurement against advance license should be allowed from any

manufacturer in India without payment of IGST to incentivise substitution of

imported goods with that of locally produced goods and motivate local

procurement. (Para 8.4)

14. The Committee also recommends that the Norms Committee should

finalize the Standard Input Output Norms (SION) at the earliest and accept

the Norms of the exporters until it is able to do so. (Para 8.5)

EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME

15. The Committee recommends that export obligation period should be

started from the date of commissioning of the machinery and time period for

submission of Installation Certificate for Export Promotion Capital Goods

6

(EPCG) Authorization holder for capital goods should be relaxed further.

(Para 8.9)

16. The Committee also recommends the Department to consider providing

relaxation on requirement of annual average and it may be reduced to 50 per

cent based on preceding 3 years average export performance. The Committee

further recommends that the requirement of block-wise fulfillment of export

obligation should be relaxed and instead 6 years time in total should be

provided without any restriction for fulfillment of the export obligation.

(Para 8.10)

17. The Committee recommends that the provision of allowing fulfilling

upto 50 per cent of export obligation by export of other goods manufactured

by the same company/firm may be reintroduced. It further recommends that

submission of a self-certified statement of export and imports along with all

original export documents such as Electronic Bank Realization Certificate

(eBRC), invoices and copies of imports bill of entries to the Registration

Authority (RA) office should be accepted for redemption purpose post

completion of export obligation. (Para 8.11)

REMISSION OF DUTIES AND TAXES ON EXPORT PRODUCTS (RoDTEP) SCHEME

18. The Committee is discontented that notification of rates under the

scheme has been delayed by more than seven months and benefits under the

scheme have not been passed on to exporters till date. The Committee,

therefore, recommends the Department of Commerce to expedite

implementation of the scheme to enable exporters to avail benefits under the

scheme. The Committee also opines that the budget allocation of Rs. 12,500

crore for the scheme would be inadequate to meet its objectives. The

Committee, therefore, recommends the Department of Commerce to engage

with the Ministry of Finance to provide additional allocation for the scheme.

(Para 8.13)

INTEREST EQUALIZATION SCHEME (IES)

19. The Committee is discontented to note that a decision on the

continuation of the scheme has not been taken till date even though current

period of operation of the scheme has already ended. The Committee strongly

opines that such uncertainty in business environment is not conducive for our

overall export ecosystem and causes hardship to exporters as they face

7

uncertainty on whether or not to factor the benefit of the scheme in their

costing. The Committee recommends the Department, in future, to notify its

decision regarding the extension or discontinuation well in advance. The

Committee further recommends the Department to consider extending the

scheme for at least five years or till the time our interest rates are at par with

rates of the competing countries. (Para 8.15)

TRADE INFRASTRUCTURE FOR EXPORT SCHEME

20. The Committee observes that two projects, namely, Establishment of

Coastal Cashew Research & Development Foundation, Kumta, Karnataka

and Upgradation of infrastructure at Land Customs Station (LCS)

Muhurighat, South Tripura has been delayed due to various issues. The

Committee, therefore, recommends the Department to coordinate with the

respective stakeholder to resolves these issues at the earliest and ensure timely

completion of these projects. The Committee further recommends the

Department to ensure the completion of the remaining projects within the

scheduled time frame. A status note on the 30 projects which are currently

implemented may be furnished to the Committee in action taken replies.

Further, the outcome of the third party evaluation of the Scheme may be

shared with the Committee. (Para 8.18)

21. The Committee notes that the scheme has wide coverage, providing

assistance for setting up and up-gradation of infrastructure projects with

overwhelming export linkages like the Border Haats, Land customs stations,

quality testing and certification labs for exports, trade promotion centres, etc.

Further, it is the only scheme that is specifically meant for trade

infrastructure. In view of this, the Committee opines that the budget

allocations under the scheme is grossly inadequate to fulfil the objectives of

the scheme and support trade infrastructures in 28 States and 8 Union

Territories. The Committee, therefore, recommends Department to enhance

the budgetary allocation under the scheme. (Para 8.20)

MARKET ACCESS INITIATIVE (MAI) SCHEME

22. The Committee recommends the Department to consider appointing

product-market specific experts to be stationed at our Missions abroad to

assist and guide exporters before entering new markets and introduce new

8

products in such markets. The Committee further recommends that the

restriction of three participations in a particular fair should be applied only

for individual exporter/companies and relaxation should be provided to

Export Promotion Councils (EPCs) in this regard. (Para 8.23)

TRANSPORT AND MARKETING ASSISTANCE (TMA) SCHEME

23. The Committee observes that assistance under the scheme is provided

based on the freight paid for full Twenty feet Equivalent Unit (TEU)

containers for export of products by sea. The Committee opines that this

provision is unlucrative to exporters as they are unable to claim the benefit

under the scheme when both eligible and ineligible products are shipped

together. The Committee, therefore, recommends the Department to take a

relook at the scheme and provide relaxation and extend benefits based on the

volume/weight of the eligible product that is shipped in the container.

(Para 8.26)

EXPORT ORIENTED UNITs (EOUs)

24. The Committee finds the replies furnished by the Department with

regard to the reasons for decline in export from Export Oriented Units

(EOUs) to be unsatisfactory as exports from EOUs show an increase in 2019-

20 and 2020-21 in spite of the number of functional EOUs declining. The

Committee is discontented to note that the Department furnished replies to

the Committee based on speculation and not supported by accurate data. The

Committee, therefore, recommends the Department to observe due diligence

in furnishing accurate replies to the Committee. The Committee further

recommends the Department to conduct a detailed study on reasons for

decline in performance of EOUs during 2017-18 and 2018-19 and furnish

revised reply to the Committee. (Para 9.5)

25. In view of the major role played by EOUs in boosting our exports,

generating employment, attracting foreign investment and enabling transfer

of latest technology to domestic industries, the Committee recommends the

Department to revamp its efforts on promoting EOUs and provide necessary

support/incentives, including tax incentives, to enable the sustained increase of

exports from these units. (Para 9.6)

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SPECIAL ECONOMIC ZONES (SEZs)

26. The Committee notes that Special Economic Zones (SEZs) play a

significant role in our exports contributing 20 per cent of the total exports of

the country. The Committee, therefore, recommends the Department to

operationalize all the 426 SEZs at the earliest and necessary assistance given

by the Department and other relevant Ministries/ Department for acquiring

all clearances and approvals for the same. The Committee, further,

recommends the Department to provide necessary infrastructures within the

SEZs for enabling a plug and play facility and also ensure that adequate and

quality power supply is provided to the industries within the SEZs. (Para 10.4)

FREE TRADE AGREEMENTS (FTAs)

27. The Committee notes that our exporters are at a disadvantage in the

USA and European markets while competing with other exporting countries

due to absence of Free Trade Agreements (FTAs) with USA and EU countries.

The Committee also notes that there are issues that need to be addressed in

negotiating free trade agreements with USA and EU in view of the concerns

expressed by some domestic sectors. The Committee opines that while it is

crucial to protect the domestic sector, it is equally important to address the

disadvantages faced by exporters in global markets. The Committee,

therefore, recommends the Department to iron out the issues that hindered

the signing of FTAs with our leading trade partners and enter into trade

agreements that is beneficial for our country while balancing the interest of

the domestic market with that of our exporters. (Para 11.3)

INDUSTRIAL CORRIDORS

28. The Committee feels that the implementation and operation of the

Industrial Corridors projects is sluggish and not progressing at a desired

pace. The Committee has made repeated recommendations to the Department

to accelerate the implementation of the projects in its 153rd

, 158th

and 160th

Reports. The Committee reiterates its earlier recommendations and urge the

Department to take concerted effort to speed up the implementation of the

Industrial Corridor projects. The Committee also notes with concern that

delay in the project causes cost overrun. Therefore, the Committee

10

recommends that efforts should be made to complete the projects in time

bound manner. (Para 12.5)

ONE DISTRICT ONE PRODUCT (ODOP)

29. The Committee recommends the Department for Promotion of Industry

and Internal Trade to coordinate with the Department of Commerce and take

proactive measures to bridge the specific infrastructural requirements to

facilitate large scale export of the identified products. The Committee further

recommends the Department to undertake steps to identify products in the

remaining districts. (Para 13.3)

INDIA INTERNATIONAL CONVENTION AND EXHIBITION CENTRE

LIMITED (IICCL)

30. The Committee recommends the Department to ensure the completion

of the convention centre within the stipulated time period. The Committee

further recommends the Department to study the feasibility and benefits of

constructing additional convention and exhibition centre in the southern

region of the country for promotion of trade in the region. (Para 14.2)

31. The Committee notes the initiatives taken by the ITPO in assisting the

States to set up Exhibition centres. However, many States are left behind in

utilising the scheme. With the emphasis on ODOP, and Make in India

initiative, there is urgent need to involve all the States in showcasing their

products to reach out to foreign buyers. India has a unique opportunity to

capture the emerging trends of globalisation and realise the export

potential of the states. The Committee, therefore, recommends that

concerted efforts should be made with the State Governments to encourage

them to set up Exhibition centres. (Para 14.4)

RAIL SECTOR

32. The Committee notes with concern that the share of rail vis-à-vis road is

only 35 per cent whereas the trend is reversed in developed countries. The

advantages accorded by rail, i.e., wider coverage, reliable, environment

friendly and cheaper mode of transport have not been fully capitalized in

India. The Committee, therefore, recommends the Ministry of Railways to

undertake a detailed study on the reason for low share of rail and take

11

concerted effort to increase the share of rail in freight traffic. The Committee

observes that Railway being the pillar of infrastructure sector is not getting its

due share in terms of investment. The Committee recommends that more

funds should be provided to the sector for its growth. (Para 15.5)

RAIL FREIGHT CLASSIFICATION AND FREIGHT RATES

33. The Committee finds it disheartening to note that the Ministry of

Railways is unable to provide competitive freight rate for movement of export

consignment. The Committee feels that this will adversely affect the

competitiveness of our exports in the global markets as freight cost plays a

crucial role in determining the final price of the product. The Committee,

therefore, recommends the Ministry of Railways to take necessary measures

to ensure that a competitive freight rate is provided for movement of export

cargo to destination ports. (Para 16.4)

34. To enable the Rail sector to compete with Road, the Committee

recommends the Ministry of Railways to extend the free time period in case

the terminal is unable to release / receive a container. The Committee further

recommends that the different charges levied at terminals and container

depots be reduced to a level comparable to other modes of transport.

(Para 16.6)

35. The Committee, therefore, recommends that a distance based

concession in the rail freight should be provided to the exporters located away

from the sea port to ensure that they are able to deliver their export at a

competitive rate. (Para 16.7)

CHARGES ON MOVEMENT OF EMPTY CONTAINERS FROM PORTS TO INLAND

CONTAINER DEPOTS (ICDs)

36. The Committee is deeply concerned by the exorbitant rates charged by

the intermediary, i.e., the shipping lines on movement of empty containers

from port to Inland Container Depots (ICDs). The Committee observes that

the rate charged by the shipping lines negated the 50 per cent concession

provided by Railways for movement of empty containers and might have

impacted the profitability and overall competitiveness of our exports. The

Committee, therefore, recommends the Ministry of Railways to consult with

relevant stakeholders and address the issue on an urgent basis. The

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Committee further recommends that the requirement of an intermediary in

this case may be abolished and appropriate strategy may be worked out to

enable importers/exporter to deal directly with Railways, i.e., CONCOR for

movement of empty container from ports to ICDs. (Para 16.9)

FREIGHT INCENTIVE SCHEMES

37. The Committee takes cognizance of the efforts taken by the Ministry for

easing rail freight charges and opines that the incentives provided are in the

right direction for expanding the share of rail in freight traffic. The

Committee, however, observes that most of the incentives provided has been

implemented recently and seem to be a reactive measure to the hardship

caused by the COVID-19 pandemic. The Committee further observes that

there has been no mention of the time period for operation of these incentives

which can disincentivize potential investors in the sector as they look at the

long-term opportunity in the sector. The Committee is of the view that a more

proactive, rather than reactive approach, along with long term strategy is

required to attract freight traffic in the rail sector. The Committee also opines

that transparency and clarity in the incentive schemes are required to attract

investment. The Committee, therefore, recommends that time period for

operation of these incentives may be clearly specified along with the guidelines

for availing the incentives so that exporters as well as potential investors can

plan their investment in the sector accordingly. This will incentivize exporter

to plan their mode of transport accordingly and enable them to shift to rail in

the long run. (Para 16.11)

EXPANSION OF FREIGHT BASKET

38. The Committee appreciates the measures taken by the Ministry for

expanding the freight basket of rail freight. A closer analysis of the measures

taken by the Ministry, however, reveals that most of them are time-bound and

short-term measures without any indication/assurance of extending them in

the long run. The Committee opines that these time-bound

relaxations/measures, while they may be beneficial in the short-run, will not

attract exporters/investors to take long term commitments and invest their

resources in the long run. The Committee, therefore, recommends the

Ministry to work together with relevant stakeholders and institute a proactive

and long-term strategy to gain larger share under the new container traffic.

(Para 16.13)

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CROSS-SUBSIDIZATION OF PASSENGER AND FREIGHT TRAINS

39. The Committee appreciates the commitment of the Indian Railways for

providing affordable mode of transport to the majority of the population. It

also takes cognizance of the measures taken by the Ministry for reducing the

freight rate and improving traffic growth without compromising on providing

affordable travel for passenger traffic. The Committee, however, finds the

rapid increase in freight rate to be alarming. It observes that the rail freight

rate witnessed a cumulative increase of around 51.95 per cent since 2011-12 as

a result of freight rationalization. The Committee opines that reduction in

freight rate and providing freight rate comparable to other competing

countries is crucial for maintaining export competitiveness in the global

market. The Committee, therefore, recommends the Ministry to implement

the outlined policies/concessions to address the issues of continuous increase in

freight rate. The Committee further recommends the Ministry to look for

other avenues for raising revenue such as monetization of railway terminals

and stations, railway land parcels, multi-functional complexes and stadiums,

etc., to ease out the brunt of cross-subsidization on freight rate. (Para 16.18)

EXPORT TRAFFIC HANDLED BY INDIAN RAILWAYS AND LINE

UTILIZATION

40. The Committee notes that 96 per cent of the freight traffic of the Indian

Railways is being handled by the High Density Networks (HDNs) and Highly

Utilized Networks (HUNs) with a total length of 34, 642 km comprising of 51

per cent of the total route of Indian Railway. The Committee, therefore,

observes that there is an imbalance in capacity utilization of the railway

network and the capacity of 7 HDNs and 11 HUNs must have been

overutilized. NITI Aayog in its report titled, ‘Fast-Tracking Freight in India’

has highlighted that 80 per cent capacity utilization is considered to be ideal

for seamless movement of freight traffic. The Committee opines that the over-

utilization of capacity in these 18 networks will compromise safety and

efficiency in freight movement. The Committee, therefore, recommends the

Ministry to fast-track the construction of railway lines identified as critical

and super critical to ease the load on these 18 networks. The Committee

further recommends the Ministry to consult with relevant

stakeholders/Ministries/Departments to formulate strategy for a better spatial

distribution of freight traffic and divert freight traffic from the 18 over-

utilized networks to other railway networks so as to address the imbalance in

capacity utilization. (Para 17.3)

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TRANSIT TIME AND PUNCTUALITY

41. The Committee observes that the average speed of freight trains has

increased to 45 km per hour in 2020-21 from 23.6 km per hour in 2019-20.

The Committee takes cognizance of this increase in freight speed and

appreciate the effort undertaken by Ministry to achieve this feat. The

Committee, however, is apprehensive that the gain achieved in freight speed

during 2020-21 might have been due to the non-operation of passenger trains

due to COVID-19 restrictions thus easing traffic movement for freight train.

If this is the case, the Committee opines that the average speed of freight

trains will reduce after the lockdown is lifted and passenger trains start

running in full capacity as passenger and freight trains share the same tracks,

and passenger trains often receive higher priority. The Committee is of the

view that the above five points outlined by the Ministry can provide the long

term solution to sustain the increase in speed of freight train and attain the

target of 50 km per hour. The Committee, therefore, recommends the

Ministry to give utmost priority to upgradation and modernization of railway

infrastructure and ensure that the projects undertaken and targets set are

implemented and achieved in a time bound manner.

(Para 18.2)

42. The Committee opines that punctuality of railways is critical in timely

delivery of export consignments and also timely clearance of cargoes at

gateway ports to avoid congestion. The Committee, therefore, recommends

that the Ministry formulate an applicable standard for ensuring punctuality

of Government run trains and levy a penalty for delay beyond a reasonable

time. (Para 18.4)

43. The Committee recommends the Ministry to adopt latest technology

and emulate best practices around the world to monitor railway assets so that

any malfunction in rail infrastructure can be detected in real time and repair

work carried out swiftly without causing undue delay in train movement.

Further, regulation of railway traffic can be done using latest technology so as

to ensure seamless management of railway traffic and avoid congestions at

choke points. To deal with the menace of law and order and chain pulling,

stringent law/rules should be instituted imposing strict penalty on anyone or

group causing disturbance on the movement of railways and adequate

security should be deployed along critical railway networks to prevent

unwanted law and order situation and ensure strict enforcement.

(Para 18.5)

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LOADING AT TERMINALS AND INTER-TERMINAL SHIFTING

44. The Committee opines that shifting from manual handling processes

and mechanization and technological upgradation of equipment will reduce

the time taken at terminals and during inter-terminal shifting. The

Committee, therefore, recommends the Ministry to fast-track technology

upgradation and mechanization of equipment and facilities and terminals.

Support may be provided to terminal operators by providing appropriate

incentives for acquiring the required equipment and to undertake technology

upgradation. Further, regular and neoteric trainings should be provided

through structured training programmes to field staffs posted at freight

stations/terminals in order to equip them to provide efficient processing of

cargos. (Para 18.7)

INTEGRATION OF CENTRAL-STATE PORTALS

45. The Committee opines that the integration of State Government

modules with Railway’s Freight Operation Information System (FOIS) for

loading of iron-ore from Odisha and Jharkhand are in the right direction for

attaining better multi-modal operations. The Committee, therefore,

recommends the Ministry to take measures for wider coverage of such

integration and involve other States and cover wider number of

goods/products. (Para 18.9)

TIME TAKEN BY RAIL VIS-À-VIS ROAD

46. The Committee is of the view that the longer time taken by train vis-à-

vis road needs to be addressed urgently to increase the share of rail freight.

The Committee, therefore, recommends the Ministry to conduct a cross-

country study on the issues identified above and address the same in a

structured manner. The Committee also recommends that the frequency and

availability of trains from ICDs to ports must be increased and a proper time-

table for running of trains should be worked out for each ICD depending on

the volume of cargo handled at each ICD. Further, to reduce the transit time

of railways, the Committee recommends the Ministry to work out a feasible

method to provide door to door services using railway logistics in consultation

with relevant stakeholders. (Para 18.11)

REGISTRATION OF DEMAND (e-RD) & ELECTRONIC TRANSMISSION

OF RAILWAY RECEIPT (eT-RR)

47. The Committee takes cognizance of the measures taken by the Ministry

for easing the process of cargo movement by providing online platforms,

namely, Registration of demand for wagons electronically (e-RD) and

16

Electronic Transmission of Railway Receipt (eT-RR). For enhancing the

functioning and seamless transaction of business in the portals, the Committee

recommends the following:

(i) The portal has been reported to be functional only between 6 A.M.

to 10 P.M. This should be functional round the clock to facilitate

exporters to effectively utilize the portal;

(ii) Payment of Demurrage Charge and Wharfage Charge should be

available online as it causes lot of difficulty to outstation

customers;

(iii) Waiver applications for Demurrage Charge, Wharfage Charge

and other such charges should be made available online;

(iv) Customers should be made aware, through online system, 48

hours before placement of rake, to enable the customer to make

arrangements for rake loading in a timely manner and avoid

detention of rake;

(v) Refund of withdrawn indent should be made in a time bound

manner and in case of delay, interest may be provided; and

(vi) The restriction on the number of indent placement by Northeast

Frontier Railway and East Central Railway in online system in

their zones needs to be removed. (Para 19.2)

DEDICATED FREIGHT CORRIDOR (DFC)

STATUS OF THE PROJECT

48. The Committee takes note that the Dedicated Freight Corridor was

announced way back in April, 2005. The Committee is discontented to note 16

years has passed since the announcement of the project and only 39.04 per

cent of the targeted length has been completed till date. Further, only 23.10

per cent of the targeted length has been commissioned for traffic as on date.

The Committee is deeply distressed by the slow pace in construction of such

crucial project. The Committee is also concerned with the rising cost of

completion of Dedicated Freight Corridors as it is lagging behind schedule

and resulting in cost overrun. The complete commissioning of the project is

crucial for easing the congestion in railway traffic and bringing down logistics

cost, particularly rail freight. The Committee, therefore, recommends the

Ministry to fast-track the construction of the project, undertake real-time

monitoring of progress and ensure that all sections of the project are

17

completed and commissioned for traffic by June, 2022 without any further

delay. (Para 20.4)

SPECIAL DESIGN FEATURES

49. The Committee recommends the Ministry to address the issues of

acquisition of land in the state of Maharashtra and Uttar Pradesh and delay

in construction of Road-Over-Bridges (ROBs) by State Governments by

coordinating with the respective State Governments and ensure that the

progress of the project does not delay any further due to these issues.

(Para 20.9)

50. The Committee recommends that survey should be made of all the RoB

built under the Dedicated Freight Corridors and MPs/MLAs may be

consulted while proposing a RoB so that the local conditions may be put

forward at the initial stage and RoB worked out in consultation with

stakeholders. (Para 20.11)

KISAN RAIL

51. The Committee opines that leveraging the Kisan Rail scheme for

catering to our agricultural export traffic will provide a huge boost to our

exports. The Committee, therefore, recommends the Ministry to formulate the

required guidelines/rules for the use of Kisan Rail for agricultural export

through ports as per requirement. The Committee further recommends the

Ministry to create awareness among exporters regarding the scheme so that

more number of exporters and producers avail the scheme. (Para 21.2)

OTHER RAIL PROJECTS

52. The Committee takes note of the issues faced by the Ministry in

execution of the railway projects. The Committee recommends the Ministry to

address the same in coordination with the concerned stakeholder and take

proactive steps to resolve the issues in a timely manner and ensure that

execution of the project does not get delayed due to such issues. (Para 22.4)

53. The Committee recommends the Ministry to promptly address the

issues in consultation with stakeholders with regard to Hassan Mangalore

tunnel Project, container trains from Coimbatore to Tuticorin, Coimbatore to

Kattupallai, Ennore, Chennai and Cochin, Mumbai Ahmedabad High-Speed

Rail and Railway line from Khandwa to Dhar via Khargone and Barwani.

18

The Committee further recommends the Ministry to furnish a status note on

these issues in its action taken reply. (Para 22.5)

REORGANISATION OF RAILWAY ZONES

54. The Committee is discontented to note that the Ministry is still in the

process of examination of Detailed Project Report on setting up of a new

South Coast Railway (SCoR) Zone with headquarter at Visakhapatnam. The

Committee, therefore, recommends the Ministry to fast-track the process of

setting up the SCoR Zone and a status note on the same may be furnished in

action taken replies. (Para 23.3)

55. The Committee fails to understand the logic behind the dismantling of

Waltair Division as the new South Coast Railway (SCoR), which is the new

zone within which the Waltair Division is proposed to be merged with, is still

at an examination of Detailed Project Report (DPR) stage with no definite

timeline for operationalization. The Committee, therefore, recommends the

Ministry of Railways to revisit the decision to dismantle the Waltair Division

and defer the process till the new zone is finalized and operationalized.

(Para 23.4)

RAILWAYS AND PORTS CONNECTIVITY

56. The Committee observes that the projects of East Coast Railways are

under various stages of development. The Committee recommends the

Ministry to ensure that these projects undertaken by East Coast Railways are

completed within the specified timeline. The Committee also observes that

Brundamal-Jharsuguda Flyover has been delayed due to land acquisition

problem. The Committee, therefore, recommends the Ministry to coordinate

with the concerned State Government to address the issue. A status note in

this regard may be furnished in the action taken replies. (Para 24.2)

CONGESTION AT PORTS

57. The Committee recommends the Ministry to identify the issues of

handling constraints at ports affecting the punctuality of railways and work in

coordination with Port Authorities and other relevant stakeholders to address

the issues effectively to improve unloading performance at port terminals.

(Para 24.4)

RAIL INFRASTRUCTURE IN NORTH EASTERN REGION

58. The Committee appreciates the measures taken by the Ministry for

augmenting rail infrastructure in the North Eastern region. The Committee is

19

hopeful that the expansion of the railway line will give a boost to export from

the region and provide much needed fillip for increased industrialization in

the region. The Committee is also hopeful that the expansion of railway line

will also boost our trade with neighbouring countries, especially, Myanmar

and further facilitate the realization of the Act East Policy. The Committee

recommends the Ministry to ensure that ongoing projects are completed

within a specified timeframe and that adequate budgetary support is provided

to this end. (Para 25.4)

59. The Committee is concerned about the upkeep and maintenance of rail

infrastructure in the region due to the geographical terrain and climatic

condition as the region is prone to flood and landslide. The Committee,

therefore, recommends that adequate budgetary allocation is provided for

maintenance of rail infrastructure in the region so that the full potential of the

railway line is realized. (Para 25.5)

60. The Committee also recommends that old tracks of Heritage trains in

North Eastern region may also be maintained and made functional along with

new routes/plans in North Eastern sector. (Para 25.6)

TRADE WITH BANGLADESH AND NEPAL

61. The Committee observes that trade with Bangladesh has been carried

out via four rail interchange points with a fifth interchange point to be

operational from 1st August, 2021. The Committee recommends the Ministry

of Railways to ensure that adequate infrastructural support are provided to

these crucial interchange points and any issues/inadequacies in infrastructure

are promptly addressed in coordination with concerned

stakeholders/Departments/Ministries. (Para 26.3)

62. The Committee, therefore, recommends the Ministry of Railways to

examine the issue in detail in consultation with concerned stakeholders and

address the same so as to maintain our foothold in the Bangladesh market.

(Para 26.4)

63. The Committee also observes that only one rail interchange point is

available between India and Nepal. In view of the current trade volume with

Nepal and potential for expanding our export with the country, the

Committee opines that additional rail interchange points could be added

between India and Nepal. The Committee, therefore, recommends the

Ministry of Railways in consultation with concerned Departments/Ministries

20

to identify potential rail interchange point(s) and undertake a detailed study

to construct additional interchange points with Nepal.

(Para 26.5)

64. The Committee finds that the issue of cross-border transit through

Bangladesh needs to be addressed urgently as it observes that the transit

restriction proved to be costly for movement of goods across the country as

well as for cross-border trade with Bhutan and Nepal. The Committee,

therefore, recommends the Government to discuss the issue with our

neighbouring counterparts at the appropriate level and address it at the

earliest. (Para 26.7)

65. The Committee observes that several transport and trade challenges

such as inadequate transport infrastructure, limitations of infrastructure on

the Bangladesh side, protective tariffs and nontariff barriers, and a broad

trust deficit throughout the region exist while trading with Bangladesh

resulting in high cost of trade between Bangladesh and India. The Committee,

therefore, recommends the Department of Commerce to identify the tariff and

non-tariff barriers and work out trade agreements which is beneficial to both

parties and stakeholders involved to ensure uninterrupted trade between the

two countries. Further, the Committee recommends the Department of

Commerce to identify the infrastructure deficit on both side of the border and

work in coordination with neighbouring countries to augment the same. The

Committee also opines that peace and a sense of trust in the region is critical

for ensuring uninterrupted cross border trade. The Committee, therefore,

recommends the Government to work together with Bangladesh at

appropriate level to discuss the issues that hindered peaceful and cordial

relationship with our neighbour. (Para 26.9)

CONSTRUCTION AND MAINTENANCE OF NATIONAL HIGHWAYS

66. The Committee observes that the budget allocated for maintenance of

National Highways (NHs) witnessed a reduction in 2021-22. The Committee

opines that with completion of the Bharatmala Pariyojana and other road

projects, the total length of NHs will increase further by 34,800 km in the next

few years requiring enhance allocation for maintenance of roads. The

Committee, therefore, recommends the Ministry to ensure that adequate

budgetary allocation is provided for maintenance of NHs and that the

maintenance work are not impacted due to paucity of funds. The Committee

21

further recommends that the budgetary allocation for maintenance should be

increased correspondingly with the increasing length of the NHs. (Para 28.3)

FREIGHT TRAFFIC AND FREIGHT RATES

67. The Committee is perturbed to note that the Ministry of Road

Transport does not have readily available data on the year-wise value and

volume of goods that is transported through road in India and other countries

and has to rely on publicly available data. It is the strong opinion of the

Committee that such data is critical in taking impactful policy decisions

regarding the construction of roads, maintenance of vehicle movements, to

address issues of traffic congestions along various road networks and face

global challenges of competitive level in the export sector. The Committee,

therefore, recommends the Ministry to collate and maintain data on these

aspects to facilitate data based policy decision making. (Para 29.2)

68. The Committee is elated to observe that the road freight rate in India is

lower than that of USA and European Union (EU) countries. This will have a

positive impact on our exports and provide the much needed leverage for

maintaining the competitiveness of our exports in the global market. The

Committee recommends the Ministry to ensure that a competitive freight rate

is maintained and other charges levied by the Ministry are also fixed in such a

way that it does not cause undue burden on exporters. (Para 29.5)

69. The Committee is deeply concerned that truckers’ union restrict the

free movement of cargo trucks in certain States and levy freight charges

higher than market rates. The Committee recommends the Ministry

investigate on the issues and consult with the respective State Governments to

address the cartelisation of truckers’ union. (Para 29.6)

70. The Committee also recommends that a transparent policy measure

may be ensured for uniform rate structure for inter State freight movement

and any infringement dealt with strictly under the relevant Act to deter any

transport union from flouting the rules. (Para 29.7)

TRANSPORTATION EFFICIENCY

71. The Committee observes that the performance of India under the

average daily distance covered and percentage of empty running are not

satisfactory in comparison with other competing countries. The Committee

22

further observes that improving the performance of India on these

parameters has a knock on effect by reducing the petroleum import bill and

carbon emission apart from efficient asset utilisation, reducing logistics cost

and road congestions. The Committee opines that the adoptions of technology-

driven measures by the Ministry to address these issues are in the right

direction. The Committee, therefore, recommends the Ministry to continue to

leverage technology and big data analytics for attaining better route planning

and load matching, selecting the right type of vehicle and improving schedule

of truck movements. The Committee further recommends the Ministry to

adopt best practises around the world in this aspect to improve the

performance of India and bring it on par with other competing countries. (Para 30.3)

72. The Committee is concerned by the prevalence of overloading of truck

as it compromises the safety of the truck, people and goods on board. The

Committee acknowledges the measures taken by the Ministry to address this

issue. The Committee recommends the Ministry to ensure that these measures

are strictly enforced and also undertake initiative to spread awareness among

truck operators about the danger and demerits of overloading trucks. The

Committee also opines that the adoption of larger and heavy duty vehicles will

provide a long term solution to this issue. The Committee, therefore,

recommends the Ministry to work out appropriate strategy and incentives in

consultation with stakeholders to increase uptake of heavy duty vehicle in our

cargo fleet. (Para 30.5)

REGULATORY MECHANISM FOR MOVEMENT OF CARGO BY ROAD

73. The Committee takes note of the measures taken by the Ministry to ease

the compliance process in movement of vehicles and movement of export

consignment along the road. The Committee recommends the Ministry to

consult with stakeholders to identify the practical issues faced by exporters

and truck operators in availing the facilities provided by the Ministry and

take prompt corrective measures to address the same. (Para 31.4)

74. The Committee also recommends the Ministry to undertake proactive

consultation with relevant Ministries / Departments / agencies to address

issues related to failure or technical snag with FASTags leading to long

queues; tampering of tag reader by toll operators; availability of FASTags;

23

unauthorized vehicles in FASTag lanes, misuse of VIP/emergency vehicle lane,

etc. (Para 31.5)

BHARATMALA PARIYOJANA

STATUS OF THE PROJECT

75. The Committee opines that the completion of the road projects under

the Bharatmala Pariyojana is critical in addressing our overall logistics issues

and movement of EXIM traffic. The Committee finds it disheartening to

observe that only 17.13 per cent of the projects have been completed and only

54.22 per cent of the projects approved even after implementation of the

projects for nearly 5 years and having to revise the timeline for completion of

the entire project by 2025-26. The Committee strongly feels that the Ministry

should reinvigorate its commitment to the projects and expedite its

implementation if it is to complete the projects within the targeted time

period. The Committee, therefore, recommends the Ministry to undertake

real time monitoring of these projects, coordinate with the concerned

Ministries/Department/agencies and State Governments and promptly

identify and address the issues that caused delay in the projects. The

Committee further recommends the Ministry to ensure that these projects are

completed in a time bound manner. (Para 32.6)

76. The Committee is dissatisfied to note that 152 road projects under the

Ministry of Road Transport have been delayed and 26 projects suffered a cost

over-run. The Committee is astounded to observe that there exists a project

which has been delayed for more than 10 years and project which has resulted

in cost over-run as high as 93.8 per cent. The Committee strongly opines that

such projects has a huge impact on the exchequer of the Ministry and has

dented the financial viability of the project. The Committee, therefore,

recommends the Ministry to identify these 152 projects which have been

delayed and address the reasons for their delay to expedite the construction of

these projects in a priority manner. A status note and steps taken to speed up

these 152 projects may be furnished by the Ministry in its action taken replies.

(Para 32.7)

24

PORT CONNECTIVITY ROAD PROJECTS

77. The Committee observes that most of the Port Connectivity Road

projects are at initial stage of implementation with 4 projects still at bidding

stage, and preparation of Detailed Project Report (DPR) yet to be awarded

for 7 projects. The remaining projects are under various phases of

implementation such as preparation of DPR. The Committee opines that the

completion of these projects are critical for ensuring seamless movement of

EXIM traffic as majority of merchandise trade is undertaken through ports.

The Committee, therefore, recommends the Ministry to expedite the

completion of these projects and priority should be accorded for the same.

The Committee further recommends the Ministry to monitor and review the

implementation of these projects at the highest level. (Para 33.4)

78. The Committee takes cognizance of the challenges faced by the Ministry

in implementation of the project. The Committee, however, feels that the

issues highlighted by the Ministry could be resolved with concerted effort of

the Ministry and with proper coordination with other concerned stakeholders.

The Committee, therefore, recommends the Ministry to take necessary

measures to address the challenges and ensure the completion of these

projects in a time bound manner. (Para 33.5)

DELHI-MUMBAI EXPRESSWAY

79. The Committee opines that the completion of the Delhi-Mumbai

expressway is critical to addressing our logistics constraints and ensuring

seamless movement of exports cargo especially from hinterland to Jawaharlal

Nehru Port. The Committee recommends the Ministry of Road Transport and

Highways to take concerted efforts to ensure completion of the project within

the stipulated time frame. The Committee further recommends that the issues

of land acquisition are swiftly resolved in coordination with concerned State

Governments to avoid further delaying of the project. (Para 34.3)

MULTI MODAL LOGISTICS PARKS (MMLPs)

80. The Committee observes that, with the exception of Multi-Modal

Logistics Park (MMLP) Jogighopa, most of the projects are at initial stage of

implementation with pre-feasibility study still to be undertaken for some of

the projects. The Committee strongly opines that these MMLPs will play a

25

critical role in augmenting our logistics infrastructure and also facilitate

multi-modal integration addressing issues in inter-modal shifting between

various modes of transport. The Committee, therefore, recommends the

Ministry to assign highest priority to the implementation of these projects and

complete them in a time bound manner. (Para 35.3)

81. The Committee notes that acquisition of land required for the parks has

hindered the progress of the projects with only 4 locations out of 35 projects

finalized till date. The Committee recommends the Ministry to step up its

effort in coordinating with the concerned State Governments and resolve the

issues in land acquisition. The Committee further recommends the Ministry of

Road Transport and Highways and the Ministry of Ports, Shipping and

Waterways to resolve the pendency with regard to MMLP Nagpur. It is also

the strong opinion of the Committee that such important projects should not

be kept pending at the Ministry level and therefore recommends the Ministry

of Ports, Shipping and Waterways to accord the necessary approval for

signing of Memorandum of Understanding to Jawaharlal Nehru Port Trust

(JNPT). (Para 35.4)

ROAD INFRASTRUCTURE IN NORTH EASTERN REGION

82. The Committee opines that road transport plays a critical role in

facilitating movement of export traffic and providing last mile connectivity

due to the geographical terrain of the region which is largely dominated by

hilly or mountainous area. Further, the region is prone to landslide hindering

accessibility especially during monsoon season. The Committee, therefore,

recommends that roads constructed in these regions are provided with

appropriate structural support to ensure all weather connectivity. The

Committee further recommends the Ministry to undertake proper

maintenance of roads in the region and provide adequate budgetary allocation

for the same. (Para 36.3)

83. The Committee observes that the Ministry has undertaken various road

construction projects in the region. It further observes that the Ministry has

failed to fully utilise the budget allocated for the region during the last 5

Financial Years with Rs. 3051 crore left unutilised during the Financial Year

2020-21. The Committee opines that this gross underutilization of allocation

would impact the progress of the projects. The Committee recommends the

26

Ministry to ensure that the allocated budgets are utilised in a timely manner.

The Committee further recommends the Ministry to closely monitor the

progress of road construction and ensure their timely completion.

(Para 36.4)

AVIATION SECTOR

ROLE AND GROWTH OF AIR CARGO IN INDIA

84. The Committee observes that the domestic air cargo market had

witnessed an impressive and robust growth since 2015-16, registering a higher

pace than the global air cargo market. However, the growth rate has shown a

decline from 2018-19 and has registered a negative growth rate in 2019-20.

The Committee expresses its concern on this sharp contraction and

recommends the Ministry of Civil Aviation to take remedial measures to align

the industry back on its growth path. (Para 37.7)

85. The Committee observes that the volume of air cargo handled had

witnessed a sharp dip in 2020-21. The Committee is hopeful that the air cargo

will regain its previous volume with gradual recovery of the economy and

assisted by the increased share of Indian carriers in international cargo.

India’s image as a reliable supplier in international market is linked to the

performance levels of the infrastructure available at the air cargo terminals.

The Committee, therefore, recommends the Ministry to take necessary steps

to augment the air cargo infrastructure to further increase the air cargo

volume and the share of India in the global air cargo market. (Para 37.8)

86. The Committee notes that the share of dedicated air freighter is only 15

per cent share in the air freight market in India compared to 50-55 per cent

globally. The Committee opines that steps towards consolidation of domestic

air cargo and carving out higher share in international air cargo will facilitate

the further development of dedicated air freighter. The Committee, therefore,

recommends the Ministry to undertake a structured study to enable the

dedicated air freighter fleet carve out the required niche market of both the

international and domestic air cargo and increase their share in the air cargo

market. (Para 37.9)

87. The Committee opines that India needs to adopt a well-equipped

infrastructure across the new airports which are going to be built in future

and also upgrade infrastructure at existing airports to be at par with

27

international level to capitalise on the expanding global and domestic air

freight markets. The Committee, therefore, recommends the Ministry to

ensure adequate planning is undertaken so that upcoming airports are

equipped with specialized infrastructure to handle time-sensitive, perishables,

high value cargoes and regional express facilities to suit the need of the

growing air cargo market and exports. (Para 37.10)

SKILLED MANPOWER IN AIR CARGO LOGISTICS

88. The Committee feels that short term training programs provided by

AAI Cargo Logistic and Allied Services Company Limited (AAICLAS) will be

inadequate to instill the skills required for handling time-sensitive, valuable,

dangerous and radioactive cargo. Further, with the increased adoption of

modern technology in logistics process, the requirement of skilled and

professional manpower will be paramount. The Committee, therefore,

recommends the Ministry undertake a study of the existing skill gaps in the

air cargo industry and prepare a training framework/ recruitment process in

consultation with relevant stakeholders to attract/ provide competent

workforce to the air cargo logistics process. (Para 38.6)

89. The Committee also recommends that all existing staff should be

provided on the job training on the specialized skills required for handling

dangerous goods, special cargo equipment handling, security compliance, etc.,

in a comprehensive manner. (Para 38.7)

90. The Committee notes about the creation of portal by Airports Authority

of India as ‘Aviation Jobs’. The Committee recommends that there is need to

create awareness about this portal to the aspirants of this category of staff.

(Para 38.8)

CLASSIFICATION OF AIR CARGO AND FREIGHT RATES

91. The Committee observes that no standard rate is available across

airports for processing and handling of cargo at air cargo terminal which it

feels will be counterproductive to the competitiveness of our exports and to

the air cargo logistics cost as a whole. The Committee, therefore, recommends

the Ministry to fix a standard benchmark for fixing processing and handling

charges which will be applicable across all airports. The Committee further

recommends the Ministry to ensure that these charges are comparable to

28

other airports around the world so that our export competitiveness is not

impacted due to high terminal charges. (Para 39.3)

92. The Committee takes cognizance of the fact that the cost of air freight is

a commercial decision between the airlines and the customers, and tariffs

rates are determined at airline’s discretion. However, the Committee opines

that a regulatory body to keep check on unwarranted increase in freight rate

is required. The Committee, therefore, recommends the Ministry to have a

closer look on this issue and consult with relevant stakeholder and conduct a

detailed study on the benefit of giving the role of regulatory oversight on air

freight tariff to AERA. (Para 39.4)

DWELL TIME AND THROUGHPUT EFFICIENCY OF AIR CARGO

TERMINALS

93. The Committee recommends the Ministry to issue direction to airlines

to not accept cargo well ahead of departure time. It further recommends the

Ministry to determine and provide a specified time period for acceptance of

cargo and penalty may be imposed on airlines accepting cargo prior to the

specified time period. (Para 40.7)

94. The Committee observes that conducting custom examination within

the cargo terminal led to reduction in available floor space by 30 per cent. The

Committee, therefore, recommends that adequate space should be allocated to

terminal operators and customs to enable efficient handling of cargoes. The

Committee further recommends that the unutilized land parcels of Airports

Authority of India (AAI) at airports can be effectively used for expansion of

cargo terminal space. (Para 40.8)

95. The Committee also observes that lack of flexibility in use of terminal

space hindered the efficient use of terminal space. The Committee, therefore,

recommends that the number of landside truck-loading facilities at air cargo

terminal should be increased and flexibility in use of truck docks should be

provided by facilitating interchangeability in use of export and import truck

dock. (Para 40.9)

96. The Committee recommends the Ministry to undertake an airport-wise

study on availability of dedicated parking bays for freighter aircrafts and

29

allocate space for the same based on the requirement and volume of cargo

handled at the airports and terminals. The Committee further recommends

that adequate space may be allocated for agents’ warehouse near terminals

for ensuring efficient integration and coordination in the logistics process.

(Para 40.10)

97. The Committee is startled to note that there is no fixed model in

terminal operations across airports and that it is left at the discretion of

individual airport operators. The Committee strongly opines that the lack of a

fixed model in terminal operations hindered the integration of air cargo

logistics chain. The Committee, therefore, recommends the Ministry to

consult with stakeholder and institute standard guidelines to be followed

across all airports for operation of air cargo terminals. (Para 40.11)

98. The Committee opines that adoption of modern, state of the art

technology will address the issues underlying the high dwell time and low

throughput efficiency in the long run and, therefore, recommends the

Ministry to work towards the adoption of the modern technology such as,

automated sorting system, collaborative robots/cobots and autonomous

guided vehicle. The Committee further recommends the Ministry to

undertake revision of the inventory and storage management to ensure that

the system of First In - First Out is implemented at warehouse. (Para 40.12)

DOCUMENTARY & REGULATORY COMPLIANCE AND TIME TAKEN

99. The Committee observes that the time taken for completing

documentation and regulatory requirement is much higher than other

countries which may be attributed to the involvement of twelve authorities

and twelve documents in clearing export consignments. The Committee,

therefore, recommends the Ministry to take measures to shorten and simplify

the documentation process. The Committee further recommends the Ministry

to reduce the number of documents by carrying out required rationalization

process. (Para 41.5)

100. The Committee also recommends that the Information Technology

infrastructure at airports may be adequately equipped and regularly updated

to handle the growing digital traffic and ensure smooth functioning of Indian

Customs EDI System (ICES) and Indian Customs Electronic Gateway

30

(ICEGATE). The Committee further recommends the Ministry to ensure the

integration of all processes and systems of Participating Government Agencies

(PGAs) and stakeholders under the single window system to create synergy

and uniformity in the documentary and regulatory process.

(Para 41.6)

101. The Committee notes that Electronic data interchange (EDI) systems

are expensive, making it difficult for small businesses to adopt. It also notes

that inability to adopt the EDI system has limited the business opportunities

of small enterprises as large enterprises chose to conduct business with others

which have adopted the system. The Committee, therefore, recommends the

Ministry to provide incentives/assistance to small companies to acquire the

required EDI system. (Para 41.7)

TRACKING, SAFETY AND SECURITY OF CARGO

102. The Committee recommends that tracking services provided by airlines

and airport operators are efficiently managed to reduce system failure and

technical glitches. The Committee further recommends the Ministry to direct

such service providers to carry out necessary technological upgradation to

their respective systems to provide uninterrupted service. (Para 42.3)

103. The Committee is of the view that the air cargo system should keep pace

with the latest technology in order to achieve a competitive edge in the global

export market. The Committee, therefore, recommends the Ministry to

undertake a study on the feasibility of leveraging and adopting state-of-the art

technology in the air cargo logistics process such as, robotics to detect package

defects at higher speed; Internet of Things to manage and enhance supply

chain productivity; cloud integration for real time monitoring of cargo;

autonomous tracking for better route and load planning; Application

Programming Interface (API) for better harmonization and integration of

data; Artificial Intelligence (AI); predictive networks; block chain; drone

fleets for enhancing warehouse operations; and augmenting cyber security for

providing protection to our IT networks at airports. (Para 42.4)

31

REGIONAL AIR CONNECTIVITY

104. The Committee notes with concern that due to abrupt debarring of non-

scheduled flights to non-metros, exporters had to face problem in transporting

goods to nearby metro airport to fulfill its business commitment. The

Committee is of the view that the matter should have been first discussed with

the stakeholders and only after due consensus, modifications in the policy

should have been carried out. The Committee recommends that in future the

stakeholders may be consulted and necessary modification may be made in

the policy to make a balanced arrangement. The Committee further

recommends that a non-partisan approach is adopted towards non-metro

airports to ensure inclusive development of the country. (Para 43.5)

TRAFFIC HANDLED AT PORTS

105. The Committee is perturbed to observe that while the traffic handling

capacity at Major ports has increased by 302.08 Million Tonnes Per Annum

(MTPA) during the last 5 years, the capacity utilization has witnessed a

constant decline during the same period. Further, the Major ports have failed

to utilize even 50 per cent of its capacity. The Committee recommends the

Ministry of Ports, Shipping and Waterways to take concerted efforts to

enhance the port processes and ensure the optimal utilization of the capacity

at ports. (Para 45.3)

CONTAINER TRAFFIC

106. The Committee opines that the robust growth of container traffic has

presented an opportunity for promotion of domestic container manufacturing.

It further opines that promotion of domestic container manufacturing will

address container shortage and reduce dependence on other countries in the

long run. The Committee, therefore, recommends the Ministry of Ports,

Shipping and Waterways to provide the required incentives and R&D support

to industries to enable domestic manufacturing of containers. (Para 46.4)

DOMESTIC SHIPPING LINE

107. The Committee notes that only 10 per cent of Indian cargo is moved via

Indian flagged vessels which shows that 90 per cent of the charges on

maritime freight goes to foreign entity resulting in revenue loss for India. The

32

Committee also notes that only 467 domestic vessels with a gross tonnage of

11.42 Million Tonnes are available for movement of EXIM trade. With the

clarion call of Atmanirbhar Bharat, the Committee strongly opines that an

Indian Shipping line of global repute is the need of the hour. The Committee,

therefore, recommends the Ministry of Ports, Shipping and Waterways to

consider the promotion of Indian Shipping line and consult with the relevant

Ministries/Department and stakeholders to work out the required fiscal or

other support to achieve the same. (Para 47.3)

FIXATION OF MARINE TARIFF RATES

108. The Committee recommends the Government to constitute the

Adjudicatory Board at the earliest. The Committee further recommends that

a time period should be stipulated for disposal of disputes and

grievances/complaints raised by port users. (Para 48.2)

109. The Committee recommends the Ministry of Ports, Shipping and

Waterways to consult with relevant stakeholders before finalizing the tariff

policy/ guidelines. The Committee further recommends the Ministry to

monitor the scales of rates fixed by Major Port Authorities as well as tariff

rates fixed by Partnership (PPP) Concessionaires and ensure that they are in

consonance with the Competition Act, 2002. The Committee also recommends

that a competitive tariff rates which is on par with other competing countries

are fixed by the authorities. (Para 48.5)

110. The Committee recommends the Ministry of Ports, Shipping and

Waterways to insert a provision in the tariff policy/guidelines for imposition

of appropriate penalty on Major Port Authorities and Partnership (PPP)

Concessionaires indulging in unfair trade practices and charging tariff rates

above the fixed scale. (Para 48.6)

PORTS EFFICIENCY

111. The Committee observes that the performance of Major ports in the key

efficiency parameters is far from satisfactory though it has shown

improvements during the last five years. The Committee strongly opines that

improvements in these key parameters are critical in boosting our exports.

The Committee, therefore, recommends the Ministry of Ports, Shipping and

33

Waterways to take concerted efforts to augment infrastructural gaps at ports

and streamline the port processes to enhance operational efficiencies of ports

thereby improving performance in key parameters. (Para 49.2)

DOCUMENTATION AND PORT DIGITIZATION

112. The Committee strongly opines that the complete digitization of all

documents as well as integration of all processes of various stakeholders under

an integrated single window system is vital for swift and timely clearance of

export consignments. The Committee, therefore, recommends the Ministry of

Ports, Shipping and Waterways to take steps for ensuring complete

digitization of documentary process at ports in coordination with the

concerned stakeholders. The Committee further recommends the Ministry to

work towards providing a single window platform for integration of all

documentary processes. (Para 50.3)

113. The Committee also recommends the Ministry to provide a mechanism

to exporters to raise their issues/grievances with regard to compliance with

port processes. It is further recommended that such issues/grievances are

redressed effectively in a time bound manner. (Para 50.4)

PORT COMMUNITY SYSTEM (PCS)

114. The Committee recommends the Ministry of Ports Shipping and

Waterways to assist the respective port authorities in implementing Port

Community System (PCS) at all Minor ports. The Committee further

recommends the Ministry to reinforce its IT infrastructure and resolve

glitches in the system promptly for facilitating uninterrupted and seamless

transmission of trade information/data. (Para 50.6)

115. The Committee opines that complete integration of the Port Community

System (PCS) with Indian Customs EDI Gateway (ICEGATE) is critical in

ensuring a seamless Customs clearance process at gateway ports. The

Committee, therefore, recommends the Ministry of Ports, Shipping and

Waterways to coordinate with Department of Revenue to accord utmost

priority for complete integration of the two systems. (Para 50.7)

34

116. The Committee recommends the Ministry of Ports, Shipping and

Waterways to integrate the Container Freight Stations (CFSs) into the Port

Community System (PCS). The Committee further recommends the Ministry

to initiate measures for complete digitization of documentary process at the

CFSs. (Para 50.9)

DIRECT PORT ENTRY (DPE) AND DIRECT PORT DELIVERY (DPD)

117. The Committee recommends that the DPE facility should be extended to

all Major and Minor ports in a phased manner. The Committee further

recommends that, in case of unavoidable requirement of Customs

examinations, required space and infrastructure facilities should be put in

place within the port terminal for carrying the required customs examination

process without having to route it to Container Freight Stations (CFSs).

(Para 50.12)

118. The Committee recommends the Ministry of Ports, Shipping and

Waterways to coordinate with the Ministry of Railways to extend the Direct

Port Entry (DPE) facility to rail bound containers. The infrastructural gaps

and procedural requirements for facilitating the same should be addressed in

consultation with the concerned Ministries/Department and relevant

stakeholders. (Para 50.14)

DIGITIZATION OF OTHER PORTS PROCESS

119. The Committee recommends that the automated gate in facility is

provided at all ports to enable seamless movement of traffic across port gates.

It further recommends the Ministry of Ports, Shipping and Waterways to

identify the infrastructural and procedural gaps at ports that hindered the

complete automation of gate in facility and take remedial measures to address

the same. (Para 50.16)

120. The Committee observes that fixed scanners are much more efficient

than mobile scanners. The Committee, therefore, recommends the Ministry of

Ports, Shipping and Waterways to invest in fixed scanners and install

adequate scanners at gateway ports to meet the requirement of the expanding

export traffic. (Para 50.19)

35

SAGARMALA PROGRAMME

STATUS OF THE PROJECTS

121. The Committee observes that only 20.94 per cent of the targeted

projects have been completed after nearly 6 years of its implementation. The

Committee opines that, the Ministry will be unable to complete the projects

within the stipulated time period at the current pace. The Committee,

therefore, recommends the Ministry to accelerate the implementation of the

projects, undertake real time monitoring, rigorously follow up with the

concerned Ministries/Department and implementing agencies, promptly

identify and address issues that hindered project implementation to avoid

delay in the process. (Para 51.3)

NATIONAL WATERWAYS

122. The Committee observes that Inland Water Transport offers a more

economic mode of transport especially for bulk cargoes. It is of the opinion

that this mode of transport is critical in addressing logistical constrains and in

reducing the logistics cost in India. The Committee, therefore, recommends

the Ministry of Ports, Shipping and Waterways to take measures to overcome

the challenges faced and implement the National Waterways projects in a time

bound manner. (Para 52.5)

123. The Committee also recommends the Ministry to work out an effective

marketing strategy to attract logistic operators and also create awareness

about the cost benefits of Inland Water Transport vis-à-vis other modes. The

Committee further recommends the Ministry to lend the required policy

support and also provide necessary incentives to logistics operators to shift

from other modes of transport to Inland Water Transport. (Para 52.6)

PORTS-INDUSTRY INTEGRATION

124. The Committee applauds the measures taken by the Ministry for

integration of ports and industry clusters. The Committee opines that these

projects have a huge potential to boost exports and also improve

competitiveness of exports by reducing transportation cost. The Committee,

therefore, recommends the Ministry of Ports, Shipping and Waterways to

initiate the development of these industrial projects at the earliest. It further

recommends that other supporting infrastructural facilities such as

36

uninterrupted electricity supply, Common Effluent Treatment Plants, etc. are

provided within the industrial clusters. (Para 53.2)

DRAFT INDIAN PORTS BILL, 2021

125. The Committee recommends the Ministry of Ports, Shipping and

Waterways to ensure that provision of the draft Indian Ports Bill does not in

any way affect the autonomy of State Governments with regard to control of

Minor ports. The Committee further recommends that the concerns and

inputs of State Governments are carefully examined by the Ministry and

incorporated in the Bill, and also ensure that no decision is taken without the

prior concurrence of the State Governments. (Para 54.3)

NTERNATIONAL CO-OPERATION IN COASTAL SHIPPING AND

INLAND WATER TRANSPORT

INDO BANGLADESH PROTOCOL ON INLAND WATER TRANSIT AND TRADE

126. The Committee opines that the operationalization of routes identified

under the agreement is vital for our exports in view of the increased trade

volume with Bangladesh. Further, these routes have a potential for increasing

our exports footprint in our neighbouring country. The Committee, therefore,

recommends the Ministry of Ports, Shipping and Waterways to take necessary

measures for operationalization of the routes under the agreement at the

earliest. (Para 55.3)

COASTAL SHIPPING AGREEMENTS WITH BANGLADESH

127. The Committee recommends the Ministry of Ports, Shipping and

Waterways to finalize the proposal regarding the administrative fee to be

charged by Bangladesh and simultaneously pursue with the Bangladesh

Government at appropriate level so that the Chittagong and Mongla ports can

be used for exports movements at the earliest. (Para 55.6)

KALADAN MULTIMODAL TRANSIT TRANSPORT PROJECT IN MYANMAR

128. The Committee strongly opines that the project is crucial for movement

of cargoes from the North Eastern Region and has a potential for boosting

exports from the region. The Committee, therefore, recommends the Ministry

37

of Ports, Shipping and Waterways to coordinate with Myanmar Government

at appropriate level and finalize necessary procedures and guideline for

facilitating trade through the Kaladan River under the Kaladan Multi Modal

Transit Project. (Para 55.8)

TRANSIT TREATY WITH NEPAL

129. The Committee is of the opinion that the inclusion of inland water

transport under the transit treaty provides opportunity to increase our trade

volume with Nepal. The Committee, therefore, recommends the Ministry of

Ports, Shipping and Waterways to undertake necessary infrastructural

developments and also to finalize the required procedural guidelines for

facilitating trade with Nepal through the Sabhibganj, Kalughat and Varanasi

Terminals on National Waterway-1 and Kolkata Port Trust at the earliest.

(Para 55.10)

STATUS OF INTEGRATED CHECK POSTS (ICPs)

130. The Committee is discontented to observe that most of the Integrated

Check Posts (ICPs) are at initial stage of implementation even after nearly

three years since approval has been accorded. The Committee notes that delay

in land acquisition has been the major issue that resulted in such inordinate

delay. The Committee, therefore, recommends the Department of Border

Management to take concerted effort to address this issue and coordinate with

the respective State Governments to resolve the same. (Para 57.3)

TRADE VOLUME AND STATUS OF INFRASTRUCTURE

131. The Committee notes that with a 3.77 per cent share in our total

exports, Integrated Check Posts (ICPs) plays a critical role in boosting our

exports. The Committee, therefore, recommends the Department of Border

Management to undertake the infrastructural upgradation measures in a time

bound manner to enable efficient handling of increasing exports volumes at

ICPs. (Para 58.4)

38

PARKING SPACE AT INTEGRATED CHECK POSTS (ICPs) AND

CHARGES LEVIED

132. The Committee opines that charges levied by Land Ports Authority of

India can have an overall impact on the price of our products at export

markets. The Committee, therefore, recommends the Department of Border

Management to take into account the overall competitiveness of our exports as

a factor for deciding and fixing the various charges at Integrated Check Posts

(ICPs) and ensure that our exports are not adversely impacted due to high

charges levied at such ports. (Para 59.3)

133. The Committee recommends the Department of Border Management to

explore the feasibility of providing direct access to cargo trucks to parking

space at ICP Petrapole and an online interface/ application to facilitate

exporters to book their parking slot for a particular day may also be

implemented. The Committee further recommends providing relaxations for

parking charges at ICP Petrapole in view of the delay in movement of cargo

trucks due to limited intake capacity of Bangladesh. (Para 59.5)

134. The Committee also recommends the Department of Border

Management to take up the issue of limited intake capacity of Bangladesh

with the concerned authority of that country for augmenting infrastructure

facilities on their side. (Para 59.6)

DOCUMENTARY AND REGULATORY PROCESS

135. The Committee opines that digitization of trade process at ICPs is

critical for ensuring seamless movement of exports cargo and reducing dwell

time. The Committee, therefore, recommends the Department of Border

Management to accord utmost priority to implement Land Ports Management

System (LPMS) across all ICPs and ensure that it is implemented at the

earliest. (Para 60.3)

136. The Committee opines that the documents required during the security

check of vehicle by Border Guarding Force (BGF) at check gates can be easily

digitized by utilizing the facilities provided under DigiLocker. The

Committee, therefore, recommends the Department of Border Management

39

to coordinate with the Ministry of Electronics and Information Technology to

leverage the facilities provided under DigiLocker to digitize the documents

checking at check gates. (Para 60.4)

137. The Committee also recommends the Department of Border

Management to provide efficient and secure internet connectivity at ICPs to

facilitate digitization of processes as well as ensure seamless and

uninterrupted flow of exports data. (Para 60.5)

INDIAN CUSTOMS EDI SYSTEM (ICES) & INDIAN CUSTOMS

ELECTRONIC GATEWAY (ICEGATE)

138. The Committee recommends that a module may be created in the

Indian Customs Electronic Gateway (ICEGATE) system for generating a

provisional shipping bill, which can later be finalized based on the final

price/quantity data provided by an independent surveyor and submitted by

exporters. The Committee further recommends that only the finalized

shipping bill generated on ICEGATE based on the final data submitted by

exporters be transmitted to Reserve Bank of India (RBI) and Directorate

General of Foreign Trade (DGFT) system for claiming export benefits.

(Para 62.5)

139. The Committee recommends the Department of Revenue to explore the

feasibility to enable multiple registrations of Authorized Dealer Codes (AD

codes) of banks for a single Importer-Exporter Code (IEC) at a single port

under the system. The Committee further recommends the Department to

work towards implementation of system of Centralized Electronic Data

Interchange (EDI) registration that is applicable across all airports, sea ports

and land ports instead of exporters requiring to register at each of the port.

(Para 62.7)

140. The Committee recommends the Department of Revenue to fortify its

ICEGATE system to enable better and seamless integration with the other

partnering agencies including Directorate General of Foreign Trade (DGFT).

The Committee further recommends that a Nodal Officer specifically

designated with the task of resolving issues faced by exporters in utilizing the

system should be appointed. The Committee also recommends that the

40

ICEGATE Helpdesk may be strengthened to enable swift resolution of issues.

(Para 62.8)

141. The Committee recommends the Department of Revenue to consider the

feasibility of issuing a certificate on the basis of which banks may process the

export documents in case of delay in transmission of shipping bills in Export

Data Processing and Monitoring System (EDPMS). (Para 62.10)

RISKY EXPORTERS

142. The Committee welcomed the measures taken by the Department of

Revenue for identifying and penalizing fraudulent Input Tax Credit (ITC)

claims by some exporters. The Committee, however, opines that such system

should not come at the cost of punishing genuine exporters due to error in

identification. The Committee, therefore, recommends the Department of

Revenue to streamline its system to avoid error in identification, send prompt

communication to exporters who are identified as risky, and provide

opportunity to exporters for resolution before taking further steps. The

Committee further recommends that the implementation of Standard

Operating Procedure (SOP) at the ground level should be completed within

the stipulated time period, i.e., one month. (Para 63.4)

OTHER ISSUES IN CUSTOMS PROCESS

INTEGRATED GOODS AND SERVICES TAX (IGST) REFUNDS

143. The Committee recommends that necessary changes may be made in

the software in consultation with the stakeholders whereby an automatic

process of sending alert to the exporter may be worked out so that when an

error/mismatch is detected by the system the detailed information regarding

the same may be conveyed promptly to the exporters to enable immediate

rectification of the same by exporters. (Para 64.2)

REQUIREMENT OF PHYSICALLY SIGNED DOCUMENTS

144. The Committee is perturbed to observe that the requirement of physical

signature has not been dispensed with despite the promotion of faceless and

contactless customs process, and electronic/digital signed documents already

recognized under the Information Technology Act, 2000. The Committee

opines that acceptance of e-signature/digital signature would enhance the

41

customs clearance process. The Committee, therefore, recommends the

Department of Revenue to issues notification on acceptance of

digitally/electronically signed signature on customs documents. (Para 64.4)

MANUAL REGISTRATION PROCESS FOR UTILIZATION OF

AUTHORIZATION/DUTY CREDIT SCRIPS

145. The Committee finds it perplexing to observe that the customs authority

insists for manual registration of authorization/duty credit scrips when the

same is transmitted online by Directorate General of Foreign Trade (DGFT).

The Committee, therefore, recommends the Department of Revenue to accept

the authorization/duty credit scrips transmitted online by DGFT or digitize

the registration process at the custom’s end. (Para 64.6)

MANUAL PROCESSING OF SHIPPING BILLS AT LAND CUSTOMS STATIONS

146. The Committee recommends the Department of Revenue to take

necessary measures for ensuring complete digitization of all customs processes

at Land Customs Stations (LCS) including processing of shipping bills. The

Committee further recommends the Department to ensure that the manual

shipping bill details are entered into the system by customs official within a

specified period and avoid delay in processing of refunds. (Para 64.8)

VISIT TO UNION TERRITORIES OF JAMMU & KASHMIR AND

LADAKH

SRINAGAR

147. The Committee notes with pleasure the favourable outcome of its

intervention in persuading the Airports Authority of India to allot space for

Custom Department at Srinagar Airport for setting up an Air Cargo

Complex. The earmarking of a dedicated area to the Custom Department,

albeit on a short term basis, would ensure smooth handling and airlifting of

export cargo from the region. It, therefore, recommends the Custom

Department to expedite the setting up of the Complex, at the earliest, in order

to facilitate air cargo operations at the airport. (Para 65.3)

148. The Committee recommends that the Airports Authority of India

should ensure promptitude in completing the construction work at the airport

within a reasonable time frame. It exhorts that the required land should be

allotted to the Custom Department on a priority basis which would provide

unhindered transition of air cargo from Srinagar since the exports from the

region comprises goods of extreme perishability such as apples, apricots and

42

other horticulture and floriculture items. It is also imperative that an

adequate land should be earmarked for building a residential complex in view

of the fragility of the region in matters of security. The Committee is also of

the considered view that an optimal framework should be devised to

undertake collaborative efforts by both Custom Department and Airports

Authority of India to make Srinagar as an air cargo export hub of the region.

(Para 65.5)

149. The Committee notes that the exports from the Union Territory of

Jammu & Kashmir mainly consists of high-end products which requires

adherence to various quality standards especially in regulated advanced

markets of the world. It, therefore, recommends establishment of adequate

National Accreditation Board for Testing and Calibration Laboratories

(NABL) labs and testing centres in the Union Territory of Jammu and

Kashmir which would play a vital role in enhancing the quality of products in

line with international standards. It also recommends that the administration

of the Union Territory and the Department of Commerce should actively

engage under the scheme of TIES to develop certification and testing

infrastructure in the region. (Para 65.7)

LEH

150. The Committee is of the opinion that the export potential commodities

possessed by Ladakh includes vibrant range of high valued unique products

such as Ladakhi pashmina, walnut, dry fruits, etc. which has a lucrative

market in the world over. Hence, the export opportunities for Ladakh would

be significantly enhanced if it gains international recognition and access in the

global markets of the world. The Committee, therefore, recommends that the

administration of Ladakh and Department of Commerce should make all out

efforts to identify prospects of trade synergies with the major global trade

destinations and establish trade linkages by conducting promotional events,

fairs, etc. It also recommends that the Trade Commissioners deployed in

Embassies as well as the Indian diaspora in major trading countries should be

roped in for such promotional efforts. (Para 65.9)

151. The Committee is of the view that strategizing the Union Territory of

Ladakh as a crucial region for export promotion is the need of the hour.

Optimal harnessing of the export potential of Ladakh requires several

initiatives such as promoting production of export oriented commodities,

43

encouraging value-added processing, quality and organic certified production,

ensuring inter and intra state linkages and connectivity of Ladakh with other

ports/ airports in the country, identification and development of trade

junctions in the region, establishing dry ports, etc. It, therefore, recommends

that a specific export policy should be devised for the Union Territory of

Ladakh in order to make it an attractive destination in global markets.

(Para 65.10)

152. The Committee is of the view that efficacy of any trade and export

policy devised for the Union Territory of Ladakh would essentially depends

upon the robustness of the export infrastructure since the trans-himalayan

region of Ladakh occupies one of the most difficult terrain in the country. The

Committee, therefore, recommends that necessary action may be undertaken

by the Government to notify the airport of Leh as a 'Custom Airport' under

Section 7 (1) (a) of the Customs Act, 1962 which would play a crucial role in

boosting exports from Ladakh by ensuring hassle free and rapid transit of

cargo goods via airlines. (Para 65.12)

153. The Committee expresses its concern on the delay in allotting adequate

space for the functioning of sub-Foreign Post Office (sub-FPO) which has

already been notified by CBIC. It recommends that the Postal Department

should step up its efforts to allot sufficient space to the Customs Department

for the sub-FPO to begin its export operations at the earliest. (Para 65.14)

154. The Committee takes cognizance of the remote location of the region

and the lack of exposure to the exporters and recommends that awareness

programmes should be conducted for the young entrepreneurs located in the

region. Further, NABL accredited testing and certification labs should be set

up in the region to facilitate and boost exports from Ladakh. (Para 65.16)

155. The Committee appreciates the higher budgetary allocation in the FY

2021-22 to the two newly formed Union Territories of J&K and Ladakh which

would be beneficial in spurring infrastructure development for economic

growth and boosting exports from the respective regions. The Committee feels

that similar compensation should be given to other newly carved out States

like Andhra Pradesh, Chhattisgarh and Jharkhand who lost their capital due

44

to bifurcation. The Committee, therefore, recommends that Special Category

Status be granted to the States of Andhra Pradesh, Chhattisgarh and

Jharkhand for a period of not less than 10 years. This would ensure holistic

development and economic growth of these states in terms of trade and export

infrastructure. (Para 65.18)

SUMMATION

156. Promotion of exports through strategic policy interventions, extending

appropriate export incentives schemes that are compliant with international

trade policies, supported by a robust and efficient logistics infrastructure is

imperative to achieve the desired level of exports growth and attain

competitiveness in the global market. The Committee recommends that

evaluation of export strategies as well as assessment of efficacy of both policy

and incentive support measures in consultation with exporters and relevant

stakeholders is carried out to keep pace with the changing domestic and

global economic scenario. (Para 66.2)

157. The timely completion of these projects and the implementation of the

‘PM Gati Shakti Master Plan’ are critical in addressing the infrastructural

gaps in our logistical chain and to enable seamless and cost-effective

movement of our export consignments. The Committee, however, observes

that the progress of projects undertaken so far by the respective

Ministries/Departments is unsatisfactory resulting in delays and cost over-

runs. The Committee feels that monitoring of progress of projects and timely

resolution of issues with regard to implementation is necessary to avoid delays

in such critical infrastructure projects. Further, issue in acquisition of land

required for infrastructural projects is found to be a recurring issue that

hindered implementation of projects. The Committee, therefore, recommends

that urgent attention at the highest level is paid to such issues and a long term

strategy is formulated in coordination with the respective State Governments.

(Para 66.4)

158. The Committee recommends institution of a formal mechanism for

coordination and communication among different Departments/Ministries

specifically tasked with planning and implementation of infrastructural

projects in order to address issues of pending clearances at the level of

45

different Departments/Ministries so as to address delays in projects and also

in bridging infrastructural gaps in a holistic manner. (Para 66.6)

159. The Committee is of the opinion that finalization of the Logistics Policy

and its timely implementation, and the completion of the Multi-Modal

Logistics Hubs/ Parks/ Terminals projects by the respective Departments/

Ministries is, therefore, essential to address the fragmented and complex

logistics sector and bring down our logistics cost. The Committee recommends

that concerned Ministries/ Departments should expedite finalization and

implementation of the policy and projects without delay. (Para 66.8)

160. The Committee, however, opines that the performance of India with

regard to documentary and regulatory processes is not satisfactory when

compared with other competing countries. Further, it is observed that there

are instances of insistence on submission of physical documents despite

introduction of digital process in export clearance process. The Committee

recommends that the number of documentary and regulatory requirements is

minimized and all such processes are fully digitized at points of exports to

reduce the compliance time. The Committee further recommends that the IT

infrastructure of the Participating Government Agencies (PGAs) should be

reinforced and updated regularly to avoid glitches in the system and meet the

requirements of increased flow of exports. (Para 66.10)

161. The Committee feels that the major cause of concern is that we have

been working in silos. Exports is largely dependent on the availability of a

robust manufacturing sector, infrastructure set up, availability of credit &

financing, incentives, skilled manpower, technology, etc. Therefore, the

policies revolving around all these sectors being handled by different

Departments/ Ministries of Government of India need to be in

synchronization. The Committee hopes that the Department of Commerce

plays its pivotal role in augmenting the infrastructural facilities to boost

exports in co-ordination with various Departments/ Ministries of Government

of India. (Para 66.11)