gcsr final report-6pdf
TRANSCRIPT
-
8/9/2019 Gcsr Final Report-6pdf
1/62
1 | P a g e
PART-ICOUNTRY STUDY OF THE MALDIVES.
-
8/9/2019 Gcsr Final Report-6pdf
2/62
2 | P a g e
ABOUT COUNTRY
OF STUDY
-
8/9/2019 Gcsr Final Report-6pdf
3/62
3 | P a g e
Overview of the Maldi ves
Maldives, officially the Republic of the Maldives and also referred to as the
Maldive Islands, is an island nation in the Indian OceanArabian Sea area,
consisting of a double chain of twenty-six atolls, oriented north-south, that lie
between Minicoy Island (the southernmost part of Lakshadweep, India) and the
Chagos Archipelago. The chains stand in the Laccadive Sea, and the capital,
Male is about 600 kilometres (370 mi) south-west of India and 750 kilometres
(470 mi) south-west of Sri Lanka.
Maldives has been an independent polity for the majority of its history, except for
three periods in which it was ruled by outside forces. In the mid-16th century, forfifteen years, the Maldives was dominated by the Portuguese Empire. In the mid-
17th century, the Dutch Empire (Malabar) dominated Maldives for four months.
Finally, in the late 19th century, osn the brink of war, the Maldives became a
British protectorate from 1887 until 1965. The Dutch referred to the islands as the
"Maldivische Eilanden" (pronounced [mldivis ilnd(n), while the British
anglicised the local name for the islands first to the "Maldive Islands" and later to
the "Maldives". The islands gained independence from the British Empire in
1965, and in 1968 became a republic ruled by a president and an authoritarian
government.
The Maldives archipelago is located on top of the Chagos-Maldives-Laccadive
Ridge, a vast submarine mountain range in the Indian Ocean. Maldives also form
a terrestrial ecoregion together with the Chagos and the Lakshadweep.The
Maldives atolls encompass a territory spread over roughly 90,000 square
kilometres (35,000 sq mi), making the country one of the world's most
geographically dispersed. Its population of 328,536 (2012) inhabits 192 of its1,192 islands.In 2006, Maldives' capital and largest city Mal, located at the
southern edge of North Mal Atoll, had a population of 103,693. Mal is one of
the Maldives' administrative divisions and, traditionally, it was the "King's Island"
where the ancient Maldives royal dynasties were enthroned..
-
8/9/2019 Gcsr Final Report-6pdf
4/62
4 | P a g e
The Maldives is the smallest Asian country in both population and land area.
With an average ground level elevation of 1.5 metres (4 ft 11 in) above sea level,
it is the planet's lowest country.[15] It is also the country with the lowest natural
highest point in the world, at 2.4 metres (7 ft 10 in).[15] Forecasts predicting
future inundation of the Maldives due to rising sea levels are of great concern to
its people.
Demographic profile of the country
Population: 393,595 (July 2014 est.)
Age structure: 0-14 years: 21% (male 42,154/female 40,490)
15-24 years: 23.4% (male 53,760/female 38,385)
25-54 years: 46.5% (male 107,703/female 75,360)
55-64 years: 4.8% (male 9,782/female 9,180)
65 years and over: 4.3% (male 7,974/female 8,807)
(2014 est.)
Dependency ratios: total dependency ratio: 50 %
youth dependency ratio: 42.7 %
elderly dependency ratio: 7.4 %
potential support ratio: 13.6 (2014 est.)
Median age: total: 27.1 years
male: 27.3 years
female: 26.7 years (2014 est.)
Population growth rate: -0.09% (2014 est.)
Birth rate: 15.59 births/1,000 population (2014 est.)
Death rate: 3.84 deaths/1,000 population (2014 est.)+
-
8/9/2019 Gcsr Final Report-6pdf
5/62
5 | P a g e
Net migration rate: -12.67 migrant(s)/1,000 population (2014 est.)
Urbanization: Urban population: 41.2% of total population (2011)
rate of urbanization: 3.91% annual rate of change
(2010-15 est.)
Major cities population: MALE (capital) 132,000 (2011)
Sex ratio: at birth: 1.05 male(s)/female
0-14 years: 1.04 male(s)/female
15-24 years: 1.4 male(s)/female
25-54 years: 1.43 male(s)/female
55-64 years: 1.29 male(s)/female
65 years and over: 0.94 male(s)/female
total population: 1.34 male(s)/female (2014 est.)
Mother's mean age at first
birth:
23.9
note: median age at first birth among women 25-29
(2009 est.)
Infant mortality rate: Total: 24.59 deaths/1,000 live birthsMale: 27.01 deaths/1,000 live birthsFemale: 22.04 deaths/1,000 live births (2014 est.)
Life expectancy at birth: Total population: 75.15 yearsMale: 72.86 yearsFemale: 77.55 years (2014 est.)
Total fertility rate: 1.76 children born/woman (2014 est.)
Contraceptive prevalence
rate:
34.7% (2009)
HIV/AIDS - adult prevalencerate:
0.1% (2012 est.)
HIV/AIDS - people living withHIV/AIDS:
NA
-
8/9/2019 Gcsr Final Report-6pdf
6/62
6 | P a g e
HIV/AIDS deaths: Fewer than 100 (2009 est.)
Drinking water source: Improved:urban: 99.5% of populationrural: 97.9% of population
total: 98.6% of population
Unimproved:urban: 0.5% of populationrural: 2.1% of populationtotal: 1.4% of population (2012 est.)
Sanitation faci li ty access: Improved:urban: 97.5% of populationrural: 99.6% of populationtotal: 98.7% of population
Unimproved:urban: 2.5% of populationrural: 0.4% of populationtotal: 1.3% of population (2012 est.)
Nationality: Noun: Maldivian(s)Adjecti ve: Maldivian
Ethnic groups: South Indians, Sinhalese, Arabs
Religions: Sunni Muslim (official)
Languages: Dhivehi (official, dialect of Sinhala, script derived fromArabic), English (spoken by most government officials)
Literacy: Definition: age 15 and over can read and writeTotal population: 98.4%Male: 98.4%Female: 98.4% (2006 est.)
School li fe expectancy:(primary to tertiary
education):
Total: 13 yearsMale: 13 years
Female: 13 years (2003)
Education expenditures: 6.8% of GDP (2011)
Maternal mortality rate: 60 deaths/100,000 live births (2010)
Children under the age of 5years underweight:
17.8% (2009)
-
8/9/2019 Gcsr Final Report-6pdf
7/62
7 | P a g e
Health expenditures: 8.5% of GDP (2011)
Physicians density: 1.6 physicians/1,000 population (2007)
Hospital bed density: 4.3 beds/1,000 population (2009)
Obesity - adult prevalencerate:
12.9% (2008)
Economic overview
Tourism, Maldives' largest economic activity, accounts for nearly 30% of GDP
and more than 60% of foreign exchange receipts. Fishing is the second leading
sector, but the fish catch has dropped sharply in recent years.
Agriculture and manufacturing continue to play a lesser role in the economy,
constrained by the limited availability of cultivable land and the shortage of
domestic labor.
Lower than expected tourist arrivals and fish exports, combined with high
government spending on social needs, subsidies, and civil servant salaries
contributed to a balance of payments crisis, which was temporarily eased with
a $79.3 million IMF Stand-By agreement.
However, after the first two disbursements, the IMF withheld subsequent
disbursements due to concerns over Maldives' growing budget deficit, and the
government has been seeking other sources of budgetary support ever since. New Goods and Services Tax (GST) on tourism introduced in January 2011,
on general goods and services in October 2011, and a new Business Profit Tax
introduced in July 2011 have provided a boost to revenue.
GDP (purchasing power parity)
$3.073 billion (2013 est.)
$2.97 billion (2012 est.)
$2.945 billion (2011 est.)
note: data are in 2013 US dollars
GDP (off icial exchange rate)
$2.27 billion (2013 est.)
-
8/9/2019 Gcsr Final Report-6pdf
8/62
8 | P a g e
GDP - real growth rate
3.5% (2013 est.)
0.9% (2012 est.)
6.5% (2011 est.)
GDP - per capita (PPP)
$9,100 (2013 est.)
$9,000 (2012 est.)
$9,000 (2011 est.)
note: data are in 2013 US dollars
GDP - composition by sector
agriculture: 3%
industry: 17%
services: 80% (2012 est.)
Population below poverty line
16% (2008)
Labor force
159,700 (2012)
Labor force - by occupation
agriculture: 3%
industry: 17%
services: 80% (2012 est.)
Unemployment rate
28% (2012 est.)
14.5% (2010 est.)
Unemployment, youth ages 15-24
total: 22.2%
male: 15.5%
female: 30.5% (2006)
Household income or consumption by percentage share
lowest 10%: 1.2%
highest 10%: 33.3% (FY09/10)
-
8/9/2019 Gcsr Final Report-6pdf
9/62
9 | P a g e
Distribution of family income - Gini index
37.4 (2004)
Budget
revenues: $638 millionexpenditures: $917 million (2012 est.)
Taxes and other revenues
28.1% of GDP (2012 est.)
Budget surplus (+) or deficit (-)
-12.3% of GDP (2012 est.)
Inflation rate (consumer prices)
5.1% (2012 est.)
16.7% (2011 est.)
Central bank discount rate
7% (31 December 2012 est.)
6.96% (31 December 2011 est.)
Geographic location
The Maldives lies in two rows of atolls in the Indian Ocean, just across the
equator. The country is made up of 1,190 coral islands formed around 26 natural
ring-like atolls, spread over 90,000 square kilometers.
Each atoll in the Maldives is made of a coral reef encircling a lagoon, with deep
channels dividing the reef ring. A string of islands take their places among this
atoll ring; each island has its own reef encircling the island lagoon. The reefs ofthe islands, alive with countless types of underwater creatures and vibrant corals,
protect the islands from wind and wave action of the surrounding vast oceans.
Ninety-nine percent of the Maldives is made up of sea. The people of the islands
are widely dispersed across the atolls, with about 200 inhabited islands. About 90
-
8/9/2019 Gcsr Final Report-6pdf
10/62
10 | P a g e
islands are developed as tourist resort and the rest are uninhabited or used for
agriculture and other livelihood purposes.
Currency & exchange rates1 Maldivian Rufiyaa equals 4.00 Indian Rupee
Exchange Rate
Rufiyaa per US Dollar rates:
The rate for the US Dollar is determined by the MMA. The midpoint of exchange
rate is 12.85 Rufiyaa and the rate is permitted to fluctuate within the 20% band,
i.e. between 10.28 Rufiyaa and 15.42 Rufiyaa.
National anthem
"Qaumii Salaam" (Dhivehi: ; National Salute) is the current
national anthem of the Maldives. The lyrics were written by Muhammad Jameel
Didi in 1948, and the melody was composed by Sri Lankan maestro Pandith
Amaradeva.
Recent developments in Maldives
Since the country was recommended for graduation in 2004, GDP has continued
to grow. In December 2004, the country was hit by a tsunami following the 2004
Indian Ocean earthquake.
The tsunami left a total of 108 people dead and about 12,000 persons displaced.It also caused property damage of about $400 million, or some 40 per cent of the
GDP in 2004. GDP per capita contracted by 11.3 per cent in 2005. Subsequently,
as a result of the global financial crisis in 2008, fewer tourists visited the country
negatively.
-
8/9/2019 Gcsr Final Report-6pdf
11/62
11 | P a g e
Impacting on the tourism industry -- the dominant sector in the island economy.
After contracting by 4.7 per cent (in dollar terms) in 2009, the economy rebounded
strongly in 2010. It recorded a growth rate of 9.9 per cent, largely driven by
tourism.
The country is facing twin deficits in the fiscal and external fronts. The current
account deficit decreased temporarily in 2009, as a result of the recession in that
year, bit widened since then. It reached $463 million in 2010 (see table 2) and is
estimated to further worsen to $647 million in 2011, about 30 per cent of GDP.
The increasing deficit reflects higher global commodity prices as well as larger
import demand, triggered by the economic recovery in 2010, which offset the
positive impact the rebound in tourism had on the current account.
The fiscal deficit reached 23.3 per cent of GDP in 2009, largely due to
expansionary fiscal policies to support the depressed domestic demand but is
expected to subsequently fall to 12.8 per cent of GDP in 2011 in view of the fiscal
adjustment measures, supported by the IMF.
The IMF programmed calls for fiscal adjustments to improve the countrys fiscal
sustainability. It includes tax reforms, cuts in wages of public workers, increases in
electricity tariffs and subsidy cuts.
Overview of industr ies, trade and commerce in the
country of study
List of industries
Agriculture
Agricultural Greenhouses
Animal Feed
Aquaculture Equipment
Fishing Nets
Fishing Ropes
Fresh Vegetables
-
8/9/2019 Gcsr Final Report-6pdf
12/62
12 | P a g e
Business Services
Advertising
Business Travel Services
Logistics Services
Air Freight
Sea Freight
Shipping
Construction & Real Estate
Hotels
Food & Beverage
Alcohol
Fish & Seafood
Crab
Health & Medical
Ambulatory Product
Contribut ion of industries in national GDP
The Maldives is a small economy with limited natural resources and thus a narrow
economic base, heavy dependence on tourism services and fisheries makes the
economy and trade vulnerable to exogenous shocks.
Although the economy is relatively open with trade in goods and services
accounting for over 150% of GDP in 2009, tariffs remain relatively high and state
involvement is prevalent in many sectors.
Tourism and related activities, such as transport and communications, dominate
services, contributing to as much as 70% of GDP.
-
8/9/2019 Gcsr Final Report-6pdf
13/62
13 | P a g e
(1) Fisheries And Agriculture
Despite its declining share of GDP (from over 7% in 2002 to 5% in 2009), the
fisheries sector continues to be of major importance to the Maldives economy. It
accounted for nearly all (98.4%) merchandise exports and employed 11% of the
total workforce in 2009.
The share of agriculture in GDP has declined to 2% and employment in the sector
has also fallen. However, agriculture continues to be important with respect to
food security and employment opportunities, with 40% of the rural population
employed in some manner in the sector.
(2) Manufacturing
The share of manufacturing in GDP has declined from nearly 9% in 2003 to 7% in
2009. Main industries include fish processing, boat building, handicrafts, furniture,
food and beverage products, PVC pipes, and soap, shipbuilding & shipping.
Development of the manufacturing sector is limited due to the low level of
domestic demand and limited skilled labour. As a result manufacturing in the
Maldives is dependent on imported materials and skilled and unskilled labour.
(3) Energy
The Maldives is almost entirely dependent on imported fuel for its energy needs.
Electricity generation accounts for almost 80% of the imported fuel. Until recently,
the State Electricity Company Limited (STELCO) provided electricity to 28 islands,
including Male.
STELCO had an installed capacity of 52 MW and over 70% of the electricity it
generated was consumed in Male. Furthermore, almost 60% of all electricity
(STELCO and private generation) is consumed by the resorts. Electricity is
charged at domestic, commercial, and government rates; transmission losses are
low at 7%, and theft is negligible.
-
8/9/2019 Gcsr Final Report-6pdf
14/62
14 | P a g e
(4) Transport/ shipping
The transport and communications sector contributed over 19% to GDP in
2009, up from 14.2% in 2003.
Due to the nature of the Maldives' geography, maritime transport services are
the most widely used mode of transport, followed by air transport services.
Export import statistics
-
8/9/2019 Gcsr Final Report-6pdf
15/62
15 | P a g e
-
8/9/2019 Gcsr Final Report-6pdf
16/62
16 | P a g e
-
8/9/2019 Gcsr Final Report-6pdf
17/62
17 | P a g e
Major players of shipping industry in Maldives
1. Villa Shipping and Trading Company Pvt. Ltd
2. Alliance Management Services co.Pvt Ltd3. Alpha Maldives Pvt Ltd.
4. Alpha Mike Services Pvt. Ltd.
5. Antrac Maldives Pvt. Ltd
6. Island Sailors (Pvt) Ltd
7. Mald Links Management Pvt Ltd
8. Maldives National Shipping Ltd
9. Real Seahawks Maldives Pvt Ltd
10.Seline Pvt Ltd.
11.Sunrise Maldives Private Limited
-
8/9/2019 Gcsr Final Report-6pdf
18/62
18 | P a g e
ABOUT SHIPPING
INDUSTRY OF
MALDIVES
-
8/9/2019 Gcsr Final Report-6pdf
19/62
19 | P a g e
Overview of shipping industry
In 1948, a public limited company was established in Sri Lanka with the name of
Maldives National Trading Corporation (Ceylon) Ltd. (it is also known as MNTC).
Its majority of equity shares were held by the Government of Maldives.
This company engaged in trading and chartering steamers to carry grain and
food commodities to the Maldives. In 1957 and 1958 MNTC purchased its first
two cargo ships. Then company grew steadily over the years and more ships
were added to the fleet establishing regular shipping services from Ceylon to the
Indian sub-continent and extended to the Arabian Gulf, Red Sea and the Middle
East.
The Maldives Shipping Limited (MSL) was incorporated in Maldives in May 1967
with 3 ships and by 1980 the company owned over 40 ships. Shipping: The
Maldives has an active merchant shipping fleet consisting of ten cargo ships, one
container vessel and an oil tanker.
The countrys largest shipping company is the Government-owned Maldives
Shipping Management Ltd but most of the importing and exporting of Maldives
do private companies. Though Maldives has traditionally relied on fishing it also
had developed a modest merchant fleet in the region called Maldives Shipping
Limited (MSL).
-
8/9/2019 Gcsr Final Report-6pdf
20/62
20 | P a g e
But today shipping is a minor actor in the Maldives where only two industries
dominate the economy. Fishing provides most employment to the inhabitants.
Though the major foreign exchange controls by the tourism. The importance
stems like Shipbuilding, i.e., encompassing shipyards, the marine equipment
manufacturers and a large number of service and knowledge providers from the
fact a nation's need to manufacture and repair its own Navy and vessels that
support its primary industries.
Maldives shipping industry of bi lateral trade
opportunities with India
The relations between the India and Maldives have been closed in strategic,
economic, and military cooperation. India contributed to maintaining security on
the island nation and agreement with respect to its strategic interest in the Indian
Ocean. India and Maldives have developed close strategic, military, economic
and cultural relations. India has supported Maldives' policy of keeping regional
issues and struggles away from itself, and the latter has seen friendship with
India as a source of help as well as a counter-balance to Sri Lanka, which is in
proximity to the island nation and its largest trading partner. India and Maldives officially decided their boundary in 1976, although a minor
diplomatic incident occurred in 1982 when the brother of the President of
Maldives Maumoon Abdul Gayoom declared that the neighboring. Minicoy Island
that belonged to India was a part of Maldives; Maldives quickly and officially
denied that it was laying claim to the island. India and Maldives signed a
complete trade agreement in 1981. Both nations are founding members of the
South Asian Association for Regional Cooperation (SAARC), the South Asian
Economic Union and signatories to the South Asia Free Trade Agreement.
Indian and Maldivian leaders have maintained high-level contacts and
consultations on regional issues.
-
8/9/2019 Gcsr Final Report-6pdf
21/62
21 | P a g e
There are various relationships between India & Maldives & it will helpful to build
good business relationship. The relationship with Maldives which are as under
Bilateral relation
Operation Relation
Commercial Relation
Military Relation
India and Maldives share ethnic, linguistic, cultural, religious and commercial
links steeped in antiquity and enjoy close, cordial and multi-dimensional relations.
India was among the first to recognize Maldives after its independence in 1965
and to establish diplomatic relations with the country. India established its
mission at the level of CDA in 1972 and resident High Commissioner in 1980.
Maldives opened a fully fledged High Commission in New Delhi in November
2004, at that time one of its only four diplomatic missions worldwide.
Political relations
Bilateral relations have been nurtured and strengthened by regular contacts at
the highest levels. Since establishment of diplomatic relations, almost all the
Prime Ministers of India visited the Maldives. Former President Gayoom made a
number of visits to India.
President Mohamed Nasheeds first visit to abroad after assuming office was to
India in December 2008. In October 2009, President Nasheed attended the Delhi
High Level Conference on Climate Change and Technology Transfer. In 2010
President Nasheed visited India twice, first in January for the CII-Partnership
Summit in Chennai and in October for attending the Opening ceremony of the
19th Commonwealth Games in New Delhi. In the current year, PresidentNasheed made an official visit in February 2011.
On international issues Maldives had consistently supported India in multilateral
fora, such as the UN, the Commonwealth, the NAM and the SAARC. Maldives
-
8/9/2019 Gcsr Final Report-6pdf
22/62
22 | P a g e
was one of the first countries to convey its support for the candidature of Shri
Kamalesh Sharma as the Commonwealth Secretary General.
Maldives also co-sponsored the G-4 draft resolutions on UN reforms. India has
extended support to Maldives candidature for a non-permanent seat in the UNSecurity Council for the term 2019-20.
Bilateral Assistance
Wherever possible, India has been offering assistance to Maldives in its
developmental process. The major projects executed by India are:
(i) Indira Gandhi Memorial Hospital: (IGMH) during former Prime Minister Shri
Rajiv Gandhis visit to Male in 1986, it was agreed to establish a medical
complex in Male with Indian assistance. Accordingly, the 200-bed hospital was
established at an estimated cost of Rs.42.5 crores and inaugurated in April 1995.
IGMH, Male now serves as the most advanced tertiary care hospital in Maldives
and is easily the most visible symbol of Indias assistance to the Maldives.
Though at present, the Government of Maldives is responsible for
managing/running the hospital, Government of India continues to offer
substantial assistance to the institution. During the visit of Honble Prime Minister
of India Dr. Manmohan Singh to Maldives in November 2011, Government of
India signed an agreement to undertake major renovation of IGMH at a total cost
of Rs.37.24 crores.
(ii) Faculty of Engineering Technology (FET):
Maldives Institute of Technical Education (MITE) was set up as a grant-in-aid
project of Government of India in 1996. Having a capacity to train at least 200
students a year in various technical/vocational disciplines, MITE was renamed as
Faculty of Engineering Technology
(FET) in order to better reflect the academic programmes conducted by it, is
functioning well.
-
8/9/2019 Gcsr Final Report-6pdf
23/62
23 | P a g e
Detail of shipping industry wi th respect to Gujarat
Sub segments of the shipping industry
Sea transport systems in today's shipping market have evolved into three
separate but closely connected segments: bulk shipping, liner shipping and
specialized shipping.
1. Bulk shipping
The bulk shipping industry carries large parcels of raw materials and bulky semi-
manufactures. This is a very distinctive business. Bulk vessels handle few
transactions, typically completing about six voyages with a single cargo each
year, so the average revenue depends on a dozen of negotiations per ship each
year. In addition, service levels are usually low so little overhead is required to
run the ships and organize the cargo.
2. Linear shipping
The liner service transports small parcels of general cargo, which includes
manufactured and semi-manufactured goods and many small quantities of bulk
commodities. Because there are so many parcels to handle on each voyage, this
is an organization-intensive business. In addition, the transport leg forms part of
an integrated production operation, so speed, reliability and high service levels
are important. With so many transactions the business relies on published prices,
though nowadays the prices are negotiated with major customers as part of
service agreement.
3. Specialized shipping
Specialized shipping services transport difficult cargoes of which the five most
important are cars, forest product, refrigerated cargo, chemicals and liquefied
gas. These trades fall somewhere between bulk and liner. Service provides in
-
8/9/2019 Gcsr Final Report-6pdf
24/62
24 | P a g e
these trades invest in specialized ships and offer higher service levels than bulk
shipping.
Contribution of shipping industry in national GDP
The world's largest ship breaking yard is in Gujarat near Bhavnagar at Alang.
The shipping sector contributes to around 2 % of GDP and provides employment
for thousands of people with handsome salary.
Major players of shipping industry & its sub segments with their
market share
1. ABG shipyard limited
ABG Shipyard is a part of the ABG Group of companies with diversified business
interests. Established in 1985, it is headquartered in Mumbai. It has shipbuilding
operations in Surat and Dahej in Gujarat. Following its acquisition of Western
India Shipyard Limited in October 2010, it operates a ship repair unit in Goa
which is the largest ship maintenance facility in India.
2. Port & SEZ limited Adani
Adani Ports and Special Economic Zone Limited (APSEZ) is Indias largest
private multi-port operator. APSEZ is a part of the Adani Group, an integrated
infrastructure corporation. The company (earlier known as Mundra Port & Special
Economic Zone Ltd) changed its name to "Adani Ports and Special Economic
Zone Limited" on January 6, 2012.[2] While earlier the company had one
operational port at Mundra, it today operates across six ports in India.
-
8/9/2019 Gcsr Final Report-6pdf
25/62
25 | P a g e
3. Mundra Port
Mundra is a census town in Kutch district in the Indian state of Gujarat. Mundra
Port is the largest private port in India.Mundra was well known for salt and spice
trading in the past and now more for tie-dye and block-print textiles. The harbor is
virtually unusable today, and only small local fishing craft navigate its silted
waterways up the river.
4. Alang
Alang is a census town in Bhavnagar district in the Indian state of Gujarat. In the
past three decades, its beaches have become a major worldwide centre for ship
breaking. The longest ship ever built 'Knock Nevis' was sailed to and beached
here for demolition in December 2009.
5. Essar shipping port
Now Essar Shipping Ports & Logistics Limited is an Indian shipping and logistics
corporation with a focus on transportation solutions for the global energy
bussiness. The company is a part of Essar Group. It was started in 1945 and
incorporated in 2010. The company is listed in Bombay Stock Exchange BSE:
500630. The company headquarters is located in Mumbai.
The company's fleet handles a daily average of eight million barrels of crude oil,
320,000 barrels of petroleum products and 355,000 tons of dry bulk cargo. The
company currently has a fleet of 26 vessels, with an additional 12 new ships on
order. It provides contract drilling services to global oil majors, with a fleet of 13
onshore rigs and one semi-submersible offshore rig; two new jack-up rigs on
order. Essar Shipping Ports & Logistics Ltd was the first Indian shipping company
to obtain the International Safety Management Code (ISM) in 1995 and is also
ISO 14001 certified.
-
8/9/2019 Gcsr Final Report-6pdf
26/62
26 | P a g e
6. Kandla port
The Port of Kandla Special Economic Zone (KASEZ) was the first special
economic zone to be established in India and in Asia. Established in 1965, the
Port of Kandla SEZ is the biggest multiple-product SEZ in the country. Kandla is
the first Export Processing Zone in India. Covering over 310 hectares, the special
economic zone is just nine kilometers from the Port of Kandla. Today, the Port of
Kandla is India's hub for exporting grains and importing oil and one of the
highest-earning ports in the country. Major imports entering the Port of Kandla
are petroleum, chemicals, and iron and steel and iron machinery, but it also
handles salt, textiles, and grain. A town has grown up on the port with a school
and hotel etc.
7. Gujarat Pipavav Port Limi ted
Port Pipavav, Indias first port in the private sector, is a port on the West Coast of
India for containers, bulk and liquid cargo. Its lead promoter is APM Terminals,
one of the largest container terminal operators in the world. The services include
pilotage/towage, cargo handling and logistics support. Port Pipavav is located in
Saurashtra, Gujarat, at a distance of 90 km South of Amreli, 15 km South ofRajula and 140 km South West of Bhavnagar. The port handles both bulk,
container and liquid cargo.
-
8/9/2019 Gcsr Final Report-6pdf
27/62
27 | P a g e
Local taxes & duties applicable in shipping industry
The policies followed by Indian shipping industry are explained here. There is a
need for the Government to grant special status to coastal shipping so as to
exempt it from Customs and other procedures that apply to the bigger cargo-
carrying vessels. Taxation policies of India are
Corporate tax
Till now, the Indian shipping companies had to pay corporation tax at the rate of
36.75% or the minimum alternate tax at 7.5%. The industry also enjoyed benefits
under Section 33 AC of Income Tax Act. Additionally shipping companies now
have the option of choosing between corporate tax and tonnage tax. Thisbenefit, is restricted to ocean going vessels to make them competitive with
vessels registered under other national flags, and is not available to coastal
shipping.
Personal Income Tax:
The present system of income tax differentiates against the seafarers employed
on Indian coastal vessels. Indian seafarers who are engaged on foreign vessels
for 183 days or more in a year or on an Indian vessel, which work outside Indian
territorial waters for more than 183 days in a year, are entitled to non-resident
status and pay no taxes. This dispirits officers and seafarers from enlisting on
coastal ships and makes it all the more obligatory to appraise the aptitude
requirements and improve the emoluments.
Capital Intensive nature:
Shipping is a capital-intensive industry. In India, the cost of capital is higher
compared to many other countries. To raise equity capital, shipping should
attract investors. To enhance investor appeal for developing a larger equity base
and encouraging larger investment in coastal shipping, time-bound solutions
would have to be found for many of the complicated and vexing problems such
-
8/9/2019 Gcsr Final Report-6pdf
28/62
28 | P a g e
as levy of Customs duty on spares, stores and bunkers imported by coastal
operators etc confronted by the sector. Unlike other industries, the benefits of
waiver from payment of import duty in shipping are available only to the
intermediary (SRUs) who imports the spares and not to the end-user (ship
owner) in the coastal shipping business.
Ship Acquisition
The coastal tonnage in India has been more or less dormant. One of the reasons
for this, apart from the productivity of coastal shipping, is the complexity in getting
finance at low interest rates. Although coastal ships are also permitted to external
commercial borrowing, they are effectively not in position to do so as they do not
earn in foreign exchange.
Import Licensing
India maintains a negative import list of products subject to various forms of
nontariff regulation. The negative list is currently divided into three categories:
banned or prohibited items (e.g., tallow); restricted items that require an import
license (e.g., livestock products); and "canalized" items (e.g., petroleum
products,) importable only by government trading monopolies subject to cabinetapproval regarding timing and quantity.
Standards, Testing, Labeling, and Certification: In early 2009, the GOI revised its
mandatory certification compliance list, which now includes 85 specific
commodities. The revised list includes such products as milk powder, infant
formula, bottled drinking water, certain types of cement, household and similar
electrical appliances, gas cylinders, certain steel products and multi-purpose dry
cell batteries. Products on the mandatory certification list must be certified forsafety by the Bureau of Indian Standards (BIS) before the products are allowed
to enter the country.
-
8/9/2019 Gcsr Final Report-6pdf
29/62
29 | P a g e
High customs and excise Duty on capital investment
The government levies 35% duty on all capital equipments such as cranes,
plasma cutting machines, and other material handling equipment purchased for
running a shipyard.
Duty on sale of ships to Indian Shipping Companies
The materials and parts imported for building ships are exempted from payment
of custom duties but these ships once built are treated as imported ships and a
custom duty of 5.0% is levied on them
Any special benefi ts given by state government to the
shipping industry
A change of government seems to have done the trick, with domestic ship-
owners believing that better days lie ahead. The incumbent National
Democratic Alliance (NDA) government led by Prime Minister Narendra
Modi, who hails from Gujarat province on the west coast of India and home to
the worlds largest ship breaking yard, Alang has promised active support
for the local shipping community after taking office in May.
From the outset, the shipping ministry has supported demands of the Indian
National Ship owners Association (Insa), including the rationalization of tax
for seafarers employed on Indian-flag ships, and allowing Indian owners to
flag tonnage abroad while still being regarded as part of the national fleet.
The proposed policy for seafarers, which is expected to benefit 50,000
working on Indian-flag vessels and likely to be implemented soon, will
calculate the time they are non-residents from the date of embarkation at any
Indian port. At present, it begins only when a vessel enters foreign waters and
does not include time sailing between Indian ports. According to officials at
-
8/9/2019 Gcsr Final Report-6pdf
30/62
30 | P a g e
the National Union of Seafarers of India (NUSI), Indian seafarers will not be
liable for income tax if, in any financial years, they exceed more than 183
days on foreign-going Indian-flag tonnage. It means a 30% net saving and an
incentive to remain under the Indian flag.
The initiative aims to provide long-term cargoes for Indian ships, making it
easier for local ship-owners to source credit from financial institutions that
have been reluctant due to the current volatility and high risk associated with
shipping assets, the officials say. It will enable Indian owners to expand their
fleets.
-
8/9/2019 Gcsr Final Report-6pdf
31/62
31 | P a g e
STEEPLED
ANALYSIS
-
8/9/2019 Gcsr Final Report-6pdf
32/62
32 | P a g e
STEEPLED analysis of shipping industry in Maldives
Social Analysis
In terms of Millennium Development Goals, the Maldives is currently one of the
most advanced countries in Asia and certainly the most advanced in South Asia.
In 2003, the literacy rate among females aged 15 and above reached 97% and
the net primary school enrolment rate has risen rapidly from 38% to 92% over the
last three decades. Poverty in the Maldives stems primarily from regional
disparities in living conditions related to the remoteness of the islands and the
lack of infrastructure and social services in the atolls. Although the countrys
current GDP per capita is one of the highest in South Asia, significant disparitiesexist in income distribution. Just fewer than half the populations earn less than
$1.25 per day and the average income of three quarters of the population is
$1.60 per day. The population of the Maldives is relatively young, with 44% under
14 years of age.
Technological Analysis
As a result the numbers of unemployed youths are increasing, partly because of
their poor education and partly because of the limited job opportunities available.
It is not surprising therefore that drug abuse has become a serious problem in
the Maldives, especially among young, unemployed males who are the most
vulnerable group. Three quarters of the prison population are serving sentences
for drug offences, and the authorities have yet to develop a strategy to tackle the
problem. Giving the small size of the country, there is a shortage of labor, which
leads employers to offer competitive pay and conditions to attract workers. In
terms of workers rights, there is no national laws governing health and safety
conditions on the workplace, and the country does not recognize the right to join
trade unions, which effectively do not exist. Furthermore, the country is not a
member of the International Labour Organization.
-
8/9/2019 Gcsr Final Report-6pdf
33/62
33 | P a g e
Economic Analysis
The small size of its economy, which is largely dependent on tourism and
fisheries, makes the Maldives vulnerable to external shocks. The low-lying
islands of which the country is composed are particularly vulnerable to natural
risks, as witnessed by the economic recession following the tsunami of
December 2004. The countrys lack of land-based natural and mineral resources
means that virtually all economic production is highly dependent on imports,
creating a heavy dependence on foreign exchange earnings. Intensive
agricultural production is limited because of the hypercalcic soil. All staple food
stuffs are basic necessities and items for the tourism industry have to be
imported.
Environmental Analysis
The environment of the Maldives is extremely fragile and vulnerable. The country
is extremely dispersed and fragmented population makes the development
problems of the Maldives very unique. Many islands are not more than one meter
high so that the threats of climate change and the constant rise in sea levels are
a major concern, raising fears that the country could disappear. Environmental
issues are consequently fundamental to the Maldives and have been
mainstreamed into most policies. The country has adopted strong environmental
laws but lacks the necessary technical capacity to enforce them effectively.
There is also a lack of ownership of the numerous recommendations and policies
that have been made by various development agencies.
Political Analysis
The Republic of Maldives has a parliamentary style of government with a strongexecutive. The country has a largely Muslim population and the laws of the
country are consistent with Islamic Shariah law. The Office of the President is
the most powerful political institution. The President appoints the Cabinet and
members of the judiciary and is both the Chief of State and Head of Government.
The President is also Commander in Chief of the armed forces, Minister of
-
8/9/2019 Gcsr Final Report-6pdf
34/62
34 | P a g e
Defense and National Security, Minister of Finance and Treasury, and Governor
of the Maldivian Monetary Authority. Women have the right to vote in all elections
and are eligible for candidature to elected bodies and all public positions, except
that of Head of State. The present Constitution, which came into force in 1998,
does not provide for an independent judiciary and therefore could be subject to
executive influence. The President has the authority to review High Court
decisions and through his power is to appoint and dismiss judges without
confirmation by the Peoples Majlis, and he can influence the judiciary.
Legal Analysis
Maldives has following acts to guide trade for the investors. The original Acts of
Parliaments are passed in Maldives language Dhivehi Acts of Parliament
(Statutes) Maldives. The acts for trade in Maldives are
Civil Aviation Act of Maldives 2001 Maldives Civil Aviation Act came into force
in 2001. This Act makes provision in respect of the registration and operation of
civil aircraft in the Maldives; construction, registration, operation and use of civil
aerodromes; other matters relating to civil aircraft and aerodromes; and safety of
civil aviation in the Maldives.
Companies Act of Maldives 1996 The Companies Act of Maldives provides the
basis for formation, registration and running of companies in the Maldives.
Consumer Protection Act 1996 This Act provides for the establishment and
protection of the rights of consumers.
Contract Act 1991 The Law of Contract 1991 provides definitions of contract
and its element such as offer, acceptance and termination of offer etc. Fisheries Act 1987 The Fisheries Act is called the The Fisheries Law of
Maldives. This Act is the basis for formulation of fisheries regulations and
fisheries management and development in the Maldives.
Foreign Investment Act 1979 This is the Act that provides Law on Foreign
Investments in the Republic of Maldives. This Law No. 25/79 (Law on Foreign
-
8/9/2019 Gcsr Final Report-6pdf
35/62
35 | P a g e
Investment in the Republic of Maldives) was amended by the Citizens Majlis 1
February 1989 and came into effect on 9 February 1989.
Sale of Goods Act 1991 This Act defines the terms, rights and definitions of
related words. It describes the rules of delivery, fitness for purpose, sale to third
party and buyers remedy for breach of contract etc.
Tourism Act 1999 The Maldives Tourism Act provides for the determination of
zones and islands for the development of tourism in the Maldives; the leasing of
islands for development as tourist resorts, the leasing of land for development as
tourist hotels and tourist guesthouses, the leasing of places for development as
marinas, the management of all such facilities; and the operation of tourist
vessels, diving centers and travel agencies, and the regulation of persons
providing such services.
Ethical Analysis
The success of shipping companies often rests with the trustworthiness of your
employees. Thats because youre obligated to deliver the products youve been
entrusted with to their final destination on time, complete, and in good condition.
Hence, ethics play a very important role in shipping industry.
1. Accurate travel logs2. Safe Practices
3. Stringent regulations imposed within shipping industry
4. Internal management practices
5. External (market-related)
Demographic Analysis
The population of Maldives is not very diverse. Most of the people follow thesame religion. Approximately 46.25 % of the population is in the age group of 25-
54 years. Maldives has a population growth rate of -0.09%. It has notable sex
ratio of 1.04 male(s)/female.
-
8/9/2019 Gcsr Final Report-6pdf
36/62
36 | P a g e
STEEPLED analysis of shipping industr y in India
Social Analysis
Population in India is second highest in the world. As of 2010, Indias
population is estimated to be 1.18 billion. India ranks 139th globally under
medium human development category according to human development
index (HDI). Due to significant changes in economic reforms undertaken
during the industrial revolution in 1991, India has transformed itself to one of
the fastest growing economies in world. India is also a strong member of
Commonwealth of Nations, SAARC, and WTO. Indias strong 55,000 military
personnels are serving in 35 UN peacekeeping operations across 4continents.
Technological Analysis
Technologies significantly affect humans ability to control and adapt to their
natural environments. Technological development like printer, telephones and
internet to name a few have narrowed physical barriers to communication and
allowed human to interact freely on a global scale. However, not all
technology innovations are good for society like development of nuclear and
other weapons which only create destruction. In recent times, more
encouragement is being given to new technologies which are environment
friendly. Shipping industry is majorly dependent on technology which fastens
the movement of goods and ships data processing, control the increased
throughput, better delivery and communication, reducing fuel consumption
and costs. We will see some of the benefits of technology to revolutionize the
shipping industry.
-
8/9/2019 Gcsr Final Report-6pdf
37/62
37 | P a g e
Economic Analysis
Economic factors are as important as political factors that affect not only this
industry but every industry in every corner of the world. Change in economic
conditions at domestic or at international level mostly affects the functioning of
shipping industry; following are some of the economic factors that may affect
shipping industry. Exchange Rates are required for determining the custom
duties and excise duties, assessment of import and export goods, payment of
duties etc. These rates are not uniform and fluctuate daily in line with demand-
supply factors existing in international markets. The Indian government used to
inform the shipping authority about the monthly exchange rate, through monthly
notification. This ensures that dealing and communication between trade bodies
and government agencies, in respect of duties and value of goods is uniformed
across all ports and across all custom houses throughout India, instead of
different rates and different value.
Environmental Analysis
The UNs Intergovernmental Panel on Climate Change (IPCC) believes that
global warming is largely due to increase in CO2 levels and other greenhouse
gasses which are caused by human activity all over the world. Perhaps the most
dramatic evidence of this change is that about half of the Arctic ice has
disappeared over the last 20 years. From a CO2 emissions perspective, shipping
is one of the most climate-friendly ways to transport goods with very less amount
of CO2 emissions. It is essential to make sure that ships emit low carbon
footprint, not only to help climate but also to remain competitive. Globalization
requires the transportation of goods between countries.
-
8/9/2019 Gcsr Final Report-6pdf
38/62
38 | P a g e
Political Analysis
Shipping industry in India is administered by central government through
Ministry of Shipping with the individual responsibility to plan policies,
programme and its implementation. Every port in India is governed under Major
Port Trust Act 1963 and Indian Ports Act 1980 and administered independently
by board of trustees under direct orders from central government.
Legal Analysis
Law is a system of rules and regulations usually enforced through a set of
institutions, government or international organizations. Legal factors are related
to the legal environment in which firms operates which elaborate rights and
responsibilities in variety of ways. International trade and in particular shipping
industry functioning is too influenced with changes in these legal factors. We will
look at some of the main acts on which shipping industry is dependant
internationally as well as domestically.
1. The Dock Workers (Regulation of Employment) Act 1948:
Dock worker means a person employed or to be employed in any port in
connection with the loading, unloading, movement or storage of cargo from ship
or vessel.
2. The Essential Commodities Act 1955 :
This act gives powers to government to regulate or prohibit production, supply
and distribution of essential commodities for commerce and trade in India. This
factor is positively affects the shipping industry, because as the government
prevents production, the suppliers will import more goods from the foreign tomeet the high demands of products. As the import increase, it will results into the
beneficial for shipping industry in a way of transferring or movement of goods
from one place to another.
-
8/9/2019 Gcsr Final Report-6pdf
39/62
39 | P a g e
Ethical Analysis
Shipping being an industry which is open to all kinds of uncertainty has been
inconstant need of finding ways to reduce it. Its ability to deliver the cargo
effectively, that is without loss or damage.
Matters concerning safety in general.
The fair apportionment of losses in connection with damage en route between
ship and cargo carried, and
Ways to guard oneself from the effects of perils of the sea. The desire to
address the above general concerns of the shipping business has been
unchanging for centuries. Shipping, in its widest possible sense, has been able to
develop practices which have been effective in reducing the level of uncertainty
in those, and other fields as well.
Demographic Analysis
India has more land than any other country except United States, and largest
water covered area after Canada and United States. Indian life revolves mostly
around agriculture and allied activities in small villages, where the vast majority of
Indians live. As per the 2001 census, 72.2% of the population lives in about
638,000 villages and the remaining 27.8% lives in more than 5,100 towns and
over 380 urban areas. In languages Hindi is used by over 80% of population in
India followed by Muslim (13.4%), Christian (2.4%) and Sikhs (1.3%). Muslim
population in India is third largest in world after Indonesia and Pakistan. 57% of
population in India is between age group 15-59 years while around 35% of
population is below 15 years. Literacy rate in India is 64.8% overall distributed
between urban (79.9%) and rural areas (58.7%). This factor is positively affects
the shipping industry, as difference in location, demand people will demanddifferent things and import of it will increase the shipping business.
-
8/9/2019 Gcsr Final Report-6pdf
40/62
40 | P a g e
Comparative analysis of STEEPLED
Factors India Maldives
Social Population in India is
second highest in the
world. India has
transformed itself to one
of the fastest growing
economies in world.
The population of the
Maldives is relatively young.
In terms of Millennium
Development Goals, the
Maldives is currently one of
the most advanced countries
in Asia and certainly the
most advanced in SouthAsia.
Technological High Encouragement of
adopting technology.
Shipping industry is
majorly dependent on
technology which fastens
the movement of goods
and ships data
processing, control the
increased throughput,
better delivery and
communication, reducing
fuel consumption and
costs.
low encouragement of
adopting technology due to
small size of country &
shorter of labour therefore
Maldives shipping industry
uses technology for fastest
movement of goods & ship
data processing but lower
delivery and communication.
Economic Change in economic
conditions at domestic or
at international level
mostly affects the
functioning of shipping
The countrys lack of land-
based natural and mineral
resources means that
virtually all economic
production is highly
-
8/9/2019 Gcsr Final Report-6pdf
41/62
41 | P a g e
industry, following are
some of the economic
factors that may affect
shipping industry.
Exchange Rates are
required for determining
the custom duties and
excise duties,
assessment of import
and export goods,
payment of duties etc.
dependent on imports,
creating a heavy
dependence on foreign
exchange earnings.
Environmental From a CO2 emissions
perspective, shipping is
one of the most climate-
friendly ways to transport
goods with very less
amount of CO2
emissions. It is essential
to make sure that shipsemit low carbon footprint,
not only to help climate
but also to remain
competitive.
Many islands are not more
than one meter high so that
the threats of climate change
and the constant rise in sea
levels are a major concern
so that environment of
Maldives is extremely fragile
and vulnerable.
Political Shipping industry in India
is administered by central
government through
Ministry of Shipping
with the individual
responsibility to plan
policies, program and its
implementation.
The Republic of Maldives
has a parliamentary style of
government with a strong
executive. The country has a
largely Muslim population
and the laws of the country
are consistent with Islamic
Shariah law. The Office of
-
8/9/2019 Gcsr Final Report-6pdf
42/62
42 | P a g e
the President is the most
powerful political institution
which is administered all the
industry in Maldives.
Legal Legal factors are related
to the legal environment
in which firms operates
which elaborate rights
and responsibilities in
variety of ways. . We will
look at some of the main
acts on which shipping
industry is dependant
internationally as well as
domestically such as The
Dock Workers
(Regulation of
Employment) Act 1948,
The EssentialCommodities Act 1955.
Maldives are involved
various act for trade in
Maldives are : civil aviation
act,2001, consumer
protection act 1996, contract
act 1991 etc
Ethical Ethics play a very
important role in shipping
industry such as
Accurate travel logs, Safe
Practices, Stringent
regulations imposed
within shipping industry
Ethics play a very important
role in shipping industry such
as Accurate travel logs , Safe
Practices, Stringent
regulations imposed within
shipping industry.
Demographic Literacy rate, language,
population etc factor are
positively affects the
Literacy rate, growth rate etc
factors of Maldives is
involving the shipping
-
8/9/2019 Gcsr Final Report-6pdf
43/62
43 | P a g e
shipping industry, as
difference in location,
demand people will
demand different things
and import of it will
increase the shipping
business.
industry.
-
8/9/2019 Gcsr Final Report-6pdf
44/62
44 | P a g e
SWOT ANALYSIS
-
8/9/2019 Gcsr Final Report-6pdf
45/62
45 | P a g e
SWOT analysis of shipping industry of Maldives
Strength
Presence in the shipping Market for more than 3 decades
Dedicated Managerial & Seagoing staff who have been in employment for
more than two decades
Safe Navigation & propulsion management for all types of ships (Dry Bulk,
Tankers, Containers, Reefers)
Serving exclusively a particular group of owners for 3 decades - speaks for
loyalty & commitment
Expertise in operating old tonnage worldwide at a very competitive dailyoperating cost.
Up to date technological skills
All services / management control under one roof which no management
company in the world can match.
Weakness
Uncertainty in markets.
Financial Institutions (Banks) more careful with Lending policies / stopped
ships lending
Assets (Ships) values frequent fluctuations.
Low freight rates.
Old fleet unattractive to new crew.
Business location still not popular with big ship owners for having ship
management head office in Mumbai.
-
8/9/2019 Gcsr Final Report-6pdf
46/62
46 | P a g e
Opportunity
Optimize shipping routes and step up expansion in emerging markets.
Ship Management services diversification to modern young and new tonnage
of bulk carriers including Tankers, Reefers, and containers.
Strategic alliances and joint ventures.
Diversification to ship owning business.
Diversification to Total ship Management Business for other worldwide ship
owners other than existing group.
Threats
Economic slowdown
Currency fluctuation
Changes in regulations of various countries
Sudden influx of new tonnage
Many shipping companies closing down or merging
Cost cutting trend for infrastructures
Swot Analysis Of Shipping Industry In Gujarat/India
Strengths
India has access to two major shipping routes
More than 7500 km coastline including the island territories
Widespread ports and workable merchant fleet
Fleet expansion by major domestic shipping companies
Sustained rise in the volume of exports with revival growth in themanufacturing sector
Large number of Indian sea farers
More than 1 billion citizens to drive the import demand
-
8/9/2019 Gcsr Final Report-6pdf
47/62
47 | P a g e
Weakness
The underinvestment in the Indias maritime sector has affected the
development of ports in the country
Inefficient judiciary system slow development of new port infrastructure
High levels of bureaucracy prevents the government funding from
developing new port projects in the country
Tax structure not allowing the Indian manufacturers to be competitive
Opportunities
Indian shipping companies having acquisitions with foreign shipping
companies
More than USD $4bn is expected to be invested in India's port sector.
New major container terminals being developed at the port of Chennai and
Mumbai
Cargo volumes are expected to grow with an average of 16.5% year on
year in the coming 5-10 years
Threats
Major developments taking place in Sri Lanka's port sector may reduce
demand for transshipment services at Southern Indian ports.
A government tax on iron ore exports may lead to a fall in bulk shipments
at major export terminals.
India's ports have suffered from congestion during 2011, potentially
slowing the country's growth trajectory
-
8/9/2019 Gcsr Final Report-6pdf
48/62
48 | P a g e
ABOUT STATE
STUDY:UTTAR
PRADESH
-
8/9/2019 Gcsr Final Report-6pdf
49/62
49 | P a g e
Overview Of Uttar Pradesh
Population of Uttar Pradesh
Current Population of Uttar
Pradesh in 2013
207,644,568
Population of Uttar Pradesh in
2012
203,573,106
Population of Uttar Pradesh in
2011
199,581,477
Sex Ratio in Uttar Pradesh 908 females per 1,000 males
Literacy Rate 70%
The multicultural state of Uttar Pradesh is currently home to 16% of India's total
population. Uttar Pradesh plays a key role in Economic development of India as it
tops the chart in most populous state of India.
The state also holds top position in high population growth rate in India. UttarPradesh has witnessed a rapid growth in its population in the last 50 years. Each
year, the state adds more people to its ever increasing population than any other
state in India. From 1991 to 2001, Population of Uttar Pradesh increased by 26%,
thus indicating that state has a high population growth rate.
Population density in UP (Uttar Pradesh) currently stands at 828 people per
square kilometer, making it one of the densely populated states in India.
Allahabad is the most populated district in the state.
-
8/9/2019 Gcsr Final Report-6pdf
50/62
50 | P a g e
Growth of Population in Uttar Pradesh
Year Population Growth Rate
1951 60,274,000 -
1961 70,144,000 +16.4%
1971 83,849,000 +19.5%
1981 105,137,000 +25.4%
1991 132,062,000 +25.6%
2001 166,198,000 +25.8%
2011 199,581,477 +20.1%
Offic ial Language of Uttar Pradesh
The languages of state administration are Hindi, established by the Uttar
Pradesh Official Language Act, 1951, and Urdu, established by the
Amendment to the same in 1989.
Natural Resources
1. Important Rivers:
Ganga, Yamuna, Gomti, Ramganga & Ghaghara.
2. Forests :
Forests constitute about 12.8% of the total geographical area of the state. The
Himalayan region and the terai and bhabhar area in the Gangetic plain have most
of the forests. The Vindhyan forest consists mostly of scrub. The districts of
Jaunpur, Ghazipur and Ballia have no forest land, while 31 other district have less
forest area.
3. Minerals:
The minerals found in Uttar Pradesh include limestone which is found in
Guruma-Kanach- Bapuhari in Mirzapur district and Kajrahat in Sonebhadra
district; dolomite which is found in Mirzapur, Sonebhadra and Banda, glass-
sand found in Karchhana tehsil of Allahabad district, Karwi in Banda district
-
8/9/2019 Gcsr Final Report-6pdf
51/62
51 | P a g e
and Mau district; marble found in Mirzapur and Sonebhadra; bauxite found
in Rajhgewan in Banda district; non-plastic fireclay found in Bansi, Makri-
Khoh area of Mirzapur district; and Uranium found in Lalitpur district.
Besides, Barytes and Edalusite are found in the districts of Mirzapur and
Sonebhadra. Sand-stone, pebbles, reh, salt punter, marang, sand and other
minor minerals are also found in the State.
MAJOR INDUSTRIES
Information Technology,
Agro Processing,
Tourism,
Mineral-Based Industries,
Textiles, Handloom And Handicrafts,
Food Processing And Sports Goods.
Contribut ion in GDP
Uttar Pradesh is the third largest economy in India after Maharashtra and
Tamil Nadu. Uttar Pradesh gross state domestic product for 2004 is
$339.5 billion by PPP and $80.9 billion by nominal.
After partition, the new Uttar Pradesh state produces about 92% of the
output of the old Uttar Pradesh state.Between 1999 and 2008, the
economy grew only 4.4% per year, one of the lowest rates in India.
But between 2007 and 2011 under the Mayawati govt, the economy grew
at over 7% GDP growth rate in the time when Indian economy faced the
melt down due to global recession.
-
8/9/2019 Gcsr Final Report-6pdf
52/62
52 | P a g e
Overview of sugar industry
Uttar Pradesh sugar industry is one of the largest industries in the Indian
economy. The lavish measures in form of new promotional policies for the Uttar
Pradesh sugar industry by state government of Uttar Pradesh was introduced at
a time when it was much needed to further boost the growth of the Uttar Pradesh
sugar industry. The improvements in the plant capacity and the introduction of
new techniques which enables the optimization of the existing plant capacities
has the further made the growth definite.
Contribut ion of sugar industry in national GDP
Country is now the second largest sugar producer in the world and despite the
largest consumption base in the world is self-sufficient and is also able to
generate exportable surpluses. Sugar industry is around 3% of the gross
domestic production contribution in the country. The Indian share in global sugar
production has risen from 5% to 15% in the last five decades. In the same period
Indias share in global sugar consumption has gone up from 5% to 13%.
-
8/9/2019 Gcsr Final Report-6pdf
53/62
53 | P a g e
Major player of sugar industry with their market share
1. BALRAMPUR CHINI MILS LTD. is one of the largest integrated sugar
manufacturing companies in India It was incorporated in 1975 under the
Companies Act. The company has sugar factories located in U.P. having an
aggregate crushing capacity of 76,500 tons per day. Its allied business consists
of manufacturing and marketing of Sugar, Molasses, Bagasse, Ethyl Alcohol &
Ethanol, generation and selling of power and manufacturing and marketing of
organic manure. Since 1990, the company has been engaged in entering into
various agreements and setting up of various sugar plants. BCML acquired a
controlling stake in 1990, in Babhnan Sugar Mill Ltd, later in April 1998, in
Tulsipur Sugar Co. Ltd. In March 2003, BCML installed a bagasse based co-
generation power plant. In 2003-2004 it set up an integrated sugar complex at
Haidergarh. Various greenfield sugar projects were set up at Akbarpur,
Mankapur, Kumbhi & Gularia in UP. The net profits (after tax) for the eighteen
months ended on March 2011 was Rs.16,441 lacs.
2. BAJAJ HINDUSTHAN LTD. is a part of the Bajaj Group. It is Indias Number
One Sugar manufacturing company. BHL is also Indias largest ethanol producer.It has fourteen sugar plants, all located in UP Golagokarannath, Palia Kalan and
Khambarkhera (district Lakhimpur Kheri), Barkhera (district Pilibhit), Kinauni
(district Meerut), Gangnauli (district Saharanpur), Thanabhavan and Budhana
(district Muzaffarnagar), Bilai (district Bijnore), Maqsoodapur (district
Shahjahanpur), Pratappur (district Deoria), Rudauli (district Basti), Kundarkhi
(district Gonda) and Utraula (district Balrampur). These plants have aggregate
sugarcane crushing capacity of 136,000 TCD and a distillery capacity to produce
800,000 liters of alcohol per day. The company currently produces 38 million
litres of ethanol in a year. Sugar is the main product of the company. It is
produced in L-31, M-31, S-31, L-30, M-30 and S-30 out of which maximum
production is of 31 colour sugar. There are various by-products that are produced
-
8/9/2019 Gcsr Final Report-6pdf
54/62
54 | P a g e
during sugar manufacturing process like Molasses, Bagasse, Fly Ash & Press
Mud.
3. DWARIKESH SUGAR INDUSTRIES LTD. is an integrated business house
primarily engaged in the manufacture of sugar and its allied products. Dwarikesh
is today a fast-growing industrial group with a strong presence in diversified fields
such as sugar manufacturing, power and ethanol/industrial alcohol production. It
has a combined capacity of 21,500 tons of sugar per day. The plants are located
in Bijnor district of Uttar Pradesh, at Dwarikesh Nagar (Najibabad), Dwarikesh
Puram (Afzalgarh) and at Dwarikesh Dham, Tehsil Faridpur, District- Bareilly.
During the quarter ended March 2011, the company reported profit of Rs 175.36
million.
4. TRIVENI ENGINEERING & INDUSTRIES LTD.
is a part of the Triveni group of companies, whose main business includes sugar
& engineering. It is amongst the largest manufacturer of sugar in India. Its
Products ranges from Sugar & molasses to Power generation. It has current
cane crushing capacity of 61,000 TCD & seven production facilites at Khatauli,
Deoband, Ramkola, Sabitgarh, Chandanpur, Raninagal and Milak Narainpur. All
the seven sugar factories are located in the state of Uttar Pradesh. In all the
factories, double suphitation process is followed for sugar production.
The sugar is sold under the brand name of Shagun.
The company started the co-generation of electricity in Deoband and Khatauli
which makes the production process more cost efficient. Molasses, the by-
product generated during the manufacture of sugar is fermented and distilled and
variants of alcohol are manufactured. The 160,000 litre distillery unit is located at
Muzaffarnagar. Company has 150 KLPD Ethanol plant at Muzaffarnagar. It has
started supplying Ethanol to oil marketing company from Dec10.
-
8/9/2019 Gcsr Final Report-6pdf
55/62
55 | P a g e
Local taxes and duties applicable in sugar industry in UP
India, the world's biggest sugar producer behind Brazil, is set to produce a
surplus for a fifth straight year to September 2015, swelling stocks and keepinglocal prices below the cost of production.
Because of lower sugar prices, money-losing mills are defaulting on loans and
banks have refused working capital to most mills in the biggest cane producing
state of Uttar Pradesh.
"Mills are bleeding because of surplus production in the last four years, lower
retail prices of sugar and higher prices of cane," said Abinash Verma, director
general of the Indian Sugar Mills Association.
SWOT analysis of sugar industry in UP
Strengths
Most modern plants and equipment Well planned infrastructure
Abundant and Assured plan of Sugarcane
Power Supply to state grid
Lowest Process Losses
Highly skilled and motivated workforce
Self sufficient in power and water
Sugar Industry is tax contributor to the government provides employment
to the farmers.
-
8/9/2019 Gcsr Final Report-6pdf
56/62
56 | P a g e
Weaknesses
Cyclical Industry
Highly regulated Industry
Virtually No control over Raw Material Price
Lackadaisical attitude of government in providing infrastructure such as
roads etc
India is the Largest Consumer of Sugar leads to shortage of Sugar, Health
Problems.
Indian sugar Factories uses the old technology leads to low production,
losses.
Opportunities
Machinery that can be upgraded for higher capacities
Opportunity to get into value added business
Opportunity to set up bagasse based paper plant
Sugar is widely use especially in drinks, Ice Cream lead to Industry growth.
Huge Potential to increase the productivity of Sugar cane by up gradating
Technology.
Threats
Import of Sugar
Frequent changes in Government Policies
Sugar Industry is controlled by Politicians which affects the growth.
Monsoon could affect the industry leads to low production.
Competition with the Brazil and World Market.
-
8/9/2019 Gcsr Final Report-6pdf
57/62
57 | P a g e
FINDINGS &
BIBLIOGRAPHY
-
8/9/2019 Gcsr Final Report-6pdf
58/62
58 | P a g e
Findings
The islands gained independence from the British Empire in 1965, and in 1968
became a republic ruled by a president and an authoritarian government.
As of 2005, the Maldives had a merchant fleet of 16 vessels with 1,000 GRT or
more, totaling 57,118 GRT, serving worldwide destinations, and all controlled by
Maldives Shipping Ltd., a public enterprise.
2% gdp consist in shipping industry
Export of goods and services consist 111.32% of GDP, As in import of goods and
services consist 112.28% of GDP.
The countrys largest shipping company is the Government-owned MaldivesShipping Management Ltd but most of the importing and exporting of Maldives
do private companies. Though Maldives has traditionally relied on fishing it also
had developed a modest merchant fleet in the region called Maldives Shipping
Limited (MSL).
Till now, the Indian shipping companies had to pay corporation tax at the rate of
36.75% or the minimum alternate tax at 7.5%.
the new Uttar Pradesh state produces about 92% of the output of the old Uttar
Pradesh state.Between 1999 and 2008, the economy grew only 4.4% per year
Uttar Pradesh is the third largest economy in India after Maharashtra and Tamil
Nadu. Uttar Pradesh gross state domestic product for 2004 is $339.5 billion by
PPP and $80.9 billion by nominal.
Coastal shipping is a new opportunity on the horizon for India's economic
development. Coastal shipping's potential lies in transporting less time critical
freight. It represents an environmentally beneficial and cost effective alternative
to rail and road modes, for bulk cargo shipped over long distances. Also it doesnot require the same infrastructure investment or maintenance.
-
8/9/2019 Gcsr Final Report-6pdf
59/62
59 | P a g e
At the end of the day shipping is still the cheapest way to run large volumes of
cargo long distances by a mile. One does not have to construct a highway.
Traders would need to have a channel but once they get out to sea it is blue
water. They do not have to maintain anything, apart from your channel.
-
8/9/2019 Gcsr Final Report-6pdf
60/62
60 | P a g e
Bibliography
http://en.wikipedia.org/wiki/Maldives
http://en.wikipedia.org/wiki/Industries_in_Maldives
http://www.encyclopedia.com/topic/Maldives.aspx
http://maldiveisle.com/economy.htm
http://www.managementparadise.com/forums/principles-management-p-o-
m/208694-pest-analysis-gap.html
http://en.wikipedia.org/wiki/Economy_of_the_Maldives
http://di.dk/SiteCollectionDocuments/DIBD/sektoranalyser/The%20Indian%20Mar
ine%20-%20Shipping%20Industry_2013.pdf
http://en.wikipedia.org/wiki/Adani_Ports_%26_SEZ_Limited
http://en.wikipedia.org/wiki/ABG_Shipyard
http://en.wikipedia.org/wiki/Mundra
http://en.wikipedia.org/wiki/Alang
http://en.wikipedia.org/wiki/Essar_Shipping
http://en.wikipedia.org/wiki/Kandla http://en.wikipedia.org/wiki/Port_Pipavav
http://en.wikipedia.org/wiki/Economy_of_Gujarat
http://www.tradewindsnews.com/weekly/346328/New-national-government-
raises-spirits-of-shipowners
http://www.ship.gr/agents/maldives.htm
http://international.gtu.ac.in/GCSR/768-Srilanka-
Transportation%20and%20Logistics%20industry.pdf
http://international.gtu.ac.in/GCSR/796-Nepal%20Transportaion%20Sector.pdf
http://www.caanepal.org.np/downloads/ineco/Strategic%20Analysis%20SWOT.p
df
-
8/9/2019 Gcsr Final Report-6pdf
61/62
61 | P a g e
http://www.transport-
research.info/Upload/Documents/201204/20120404_135706_22177_FUSETRA_
D41_swot.pdf
https://www.google.co.in/?gws_rd=ssl#q=steeple+analysis+transportation+in+maldives
http://international.gtu.ac.in/Report_Select.aspx
http://international.gtu.ac.in/GCSR/817-MALDIVES-FISHERIES%20SECTOR.pdf
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/E
XTSARREGTOPTRANSPORT/0,,contentMDK:20674800~menuPK:868841~pag
ePK:34004173~piPK:34003707~theSitePK:579598,00.html
http://www.transport-research.info/Upload/Documents/201204/20120404_135706_22177_FUSETRA_
D41_swot.pdf
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=17&cad=rja
&uact=8&ved=0CFYQFjAGOAo&url=http%3A%2F%2Fwww.wto.org%2Fenglish
%2Ftratop_e%2Ftpr_e%2Fg221_e.doc&ei=tACLVLLfJIy1uATq7ILwCA&usg=AF
QjCNEccRasFBmRJBjKQWnUC08KV694Kg&sig2=8vP9setVAXA7ze5MfWKJAg
&bvm=bv.81828268,d.c2E
http://di.dk/SiteCollectionDocuments/DIBD/sektoranalyser/The%20Indian%20Mar
ine%20-%20Shipping%20Industry_2013.pdf
http://international.gtu.ac.in/GCSR/735-Cambodia-Shipping.pdf
http://international.gtu.ac.in/GCSR/751%20Ethiopia%20Shipping%20Industry.p
http://international.gtu.ac.in/GCSR/761_Gabon_Shipping%20Industry.pdf
http://international.gtu.ac.in/GCSR/719KuwaitShipping.pdf
http://international.gtu.ac.in/Report_Select.aspx
http://international.gtu.ac.in/GCSR/822-%20Norway-
%20Shipping%20Industry.pdf
http://international.gtu.ac.in/GCSR/822-%20Norway-
%20Shipping%20Industry.pdf
-
8/9/2019 Gcsr Final Report-6pdf
62/62