recommendations/observations - at a glance
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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
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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
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(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
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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
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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
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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
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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
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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
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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)
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