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OUTCOME BUDGET

2013-2014

DEPARTMENT OF COMMERCE

GOVERNMENT OF INDIA

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CONTENTS ____________________________________________________ _____________________________________ Page Nos.

PREFACE 3

EXECUTIVE SUMMARY 4-5 CHAPTER I INTRODUCTION 6-29 CHAPTER II FINANCIAL OUTLAYS AND QUNATIFIABLE 30-45 DELIVERABLES CHAPTER III REFORM MEASURES& POLICY INITIATIVES 46-89 CHAPTER IV REVIEW OF PAST PERFORMANCE 90-131 CHAPTER V FINANCIAL REVIEW 132-142 CHAPTER VI REVIEW OF PERFORMANCE OF 143-167 AUTONOMOUS BODIES & STATUTORY BODIES

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PREFACE

The “Outcome Budget” reflects the endeavour of the Government to convert

“Outlays” into “Outcomes” by planning expenditure, fixing appropriate targets and

quantifying deliverables of each scheme. The “Outcome Budget” is an effort of the

Government to be transparent and accountable to the people.

In addition to an Executive Summary, the Outcome Budget 2013-14 contains six

chapters relating to the Demands for Department of Commerce under Grant No.11. The

chapters discuss the statement of outlays and outcomes; reform measures; policy

initiatives and programmes initiated; review of past performance; financial review for

three years and a review of the performance of statutory and autonomous bodies.

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EXECUTIVE SUMMARY

Department of Commerce is responsible for regulation, development and

promotion of India’s international trade and commerce. The Department of Commerce

administers the Demand No.11.

The Outcome Budget 2013-2014 document of the Department of Commerce

highlight the various programmes and activities undertaken/envisaged to be undertaken

by the Department in furtherance of the core objective of strengthening India’s foreign

trade performance in the context of the related targets and achievements for 2011-12

and first nine months of 2012-13 ( up to December 2012) and targets set for 2013-14,

wherever possible in terms of financial outlays, physical outputs/quantifiable

deliverables and outcomes.

Scheme of chapters contained in the Outcome Budget 2013-14 documents are

summarized below:

Chapter I brings out a brief introductory note on the goals, objectives and

functions; the organizational set up; its mandate and the list of major programmes/

schemes implemented by the Department.

Chapter II presents the vertical compression and horizontal expansion of

Statement of Budget Estimates. The main objective is to establish a one to one

correspondence between (financial) Budget 2011-12 and Outcome Budget 2011-12.

The details comprise of the financial outlays, projected physical outputs and projected/

budgeted outcomes.

Chapter III highlights the details of reforms measures and policy initiatives

undertaken by the Department and how these relate to the intermediate outputs and

final outcomes in areas such as public private partnership, delivery mechanisms,

social and gender empowerment processes, greater decentralization, transparency

etc.

Chapter IV reviews the scheme-wise past performance of the various

programmes and activities undertaken by the Department during 2009-10 and 2010-

11 in terms of targets already set.

Chapter V deals with financial review covering overall trends in expenditure vis-

à-vis Budget Estimates/Revised Estimates in recent years, including the current year

i.e. 2013-14 (scheme-wise, object head wise, and institution wise in the case of

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autonomous institutions), and the position of outstanding utilization certificates and

unspent balances with States and implementation agencies.

Chapter VI reviews the performance of the Statutory and Autonomous Bodies

under the administrative control of the Department.

Mechanism and the Public Information System to monitor the physical and

financial progress

Each Administrative Division is provided the Guidelines for release of budget to the

implementing agencies. The implementing agencies put in place their own mechanism

for providing assistance to the ultimate beneficiaries to ensure compliance and monitor

the implementation and outcomes. The Department also monitors execution of the

scheme and its impact towards achieving the desired objectives. Each Administrative

Head monitors and reviews the physical and financial progress of schemes under their

charge on a quarterly basis, which is further supervised and overseen by the Financial

Advisor and the Secretary as and when required.

The Government is committed to facilitate efficiency, transparency and

decentralization of decision making process through intensive use of Information and

Communication Technologies (ICT) based tools. To facilitate quick appraisal of inter-

ministerial and inter-agency trade related matters, an Executive Video Conference

System (EVCS) has been installed in the Department, connecting Secretaries to

Government of India and all Chief Secretaries/Administrators of States/UTs over NIC

network (NICNET). For bilateral and multilateral international negotiations, a Video

Conferencing Studio has been setup in the Ministry of Commerce & Industry. The

Department's web site (http://commerce.nic.in) is the major source of information

dissemination and provides Government-to-Citizen (G2C) and Government-to-

Business (G2B) interface for electronic delivery of services, trade facilitation and

monitoring various applications. The access to various e-governance and office

automation systems/applications and databases is available to the user in the

Department through an Intranet Portal.

DGFT maintains a comprehensive website www.dgft.gov.in having available

Foreign Trade Policy, Hand Book of Procedures, all Notifications, Public Notices,

Circulars, minutes, Office Orders etc. on it. Application forms for all the

schemes/activities are also available on the website

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CHAPTER I

INTRODUCTION

I. Goals & Objectives

The basic role of the Department is to facilitate the creation of an enabling

environment for accelerated growth of international trade. The Department formulates

implements and monitors the Foreign Trade Policy which provides the basic framework

of policy and strategy to be followed for promoting exports and trade. The Trade Policy

is periodically reviewed to incorporate changes necessary to take care of emerging

economic scenarios both in the domestic and international economy. Besides, the

Department is also entrusted with responsibilities relating to multilateral and bilateral

commercial relations, Special Economic Zones, state trading, export promotion & trade

facilitation, and development and regulation of certain export oriented industries and

commodities.

The Department has set a long term vision of making India a major player in

world trade. The macro policy framework of the international trade policies being

followed by the country are guided by this basic vision.

Strategy Paper

The Department of Commerce has formulated a strategy to put exports in a high

growth trajectory leading to overall economic growth of the country. The strategy

suggests following steps to achieve the desired target:

A mix of policy instruments including, fiscal incentives, institutional changes, enhanced market access across the world and diversification of export markets, improvement in infrastructure related to exports, reducing transaction costs and refund of all indirect taxes and levies.

Aggressive export promotion of high value products that have a strong domestic manufacturing base.

Product diversification in labour intensive leather, gems & jewellery and textile.

Retain presence and market share in our old developed country markets, move up the value chain in providing products in these old developed markets.

Focus on markets in Asia (including ASEAN), Africa and Latin America to strengthen our presence in newly opened up markets.

Efforts to build a brand image for important Indian exports, and promote a thrust for quality up-gradation. Domestic standards for export related products be

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raised, assurances put in place of quality enforcement through appropriate agencies and certification of export products encouraged.

Objectives & Thrust areas of 12th Five Year Plan (2012-17)

Objectives

(i) Rapid increase in exports to balance the Trade Deficit.

(ii) Enhancing the proportion of Manufacturing in the export basket (61.5 percent

at present) to realise higher value addition.

Thrust areas

(i) Strengthening the institutions providing support services to the exporters like

Export Inspection Council (EIC) and Indian Institute of Packaging (IIP).

(ii) Facilitating the provision of critical infrastructure necessary for promoting

exports in collaboration with States through schemes like ASIDE and various

schemes under APEDA and MPEDA.

(iii) Promoting exports of Tea, Coffee, Rubber and Spices through massive

support for schemes administered by Tea Board, Coffee Board, Rubber

Board and Spices Board.

(iv) Strengthening various institutions involved in consultancy, design, human

resource development and information services needed for export promotion

like WTO Centre, Indian Institute of Foreign Trade IIFT), Indian Institute of

Packaging(IIP) and Footwear Design and Development Institute (FDDI).

(v) Expansion and modernization of infrastructure and quality control mechanism

through up gradation of technology and greater use of IT.

(vi) Introducing new schemes for Gems & Jewellery, Leather and Pharma

Sectors.

II. Organisational Set Up

The Department is headed by a Secretary who is assisted by an Additional

Secretary & Financial Adviser, three Additional Secretaries and thirteen Joint

Secretaries and Joint Secretary level officers and a number of other senior officers.

The Department is functionally organized into the following eight Divisions:

1. Administration and General Division

2. Finance Division

3. Economic Division

4. Trade Policy Division

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5. Foreign Trade Territorial Division

6. State Trading & Infrastructure Division

7. Supply Division

8. Plantation Division.

Various offices/organizations under the administrative control of the Department

are: (A) three Attached Offices, (B) eleven Subordinate Offices, (C) ten Autonomous

Bodies, (D) five Public Sector Undertakings, (E) Advisory Bodies, (F) fourteen Export

Promotion Councils and (G) other Organizations. The broad organizational set up and

major role and functions of these bodies are discussed below

(A) Attached Offices

(i) Directorate General of Foreign Trade (DGFT)

This Directorate, with headquarters at New Delhi, is headed by the Director

General, an officer of the rank of Additional Secretary. It is responsible for

implementing the Foreign Trade Policy with the main objective of promoting Indian

exports. It includes implementation of various duty neutralization schemes such as

Advance Authorization, Duty Free Import Authorization (DFIA), Duty Entitlement

Passbook (DEPB), Deemed Export Duty Drawback and Terminal Excise Duty (TED)

refund, Export Promotion Capital Goods (EPCG) and incentive schemes like Focus

Market, Focus Product, Vishesh Krishi & Gram Udyog Yojana and Served from India.

DGFT through its various offices provides facilitation to exporters in regard to

developments in the area of international trade, to help the exporters strategize their

import and export decisions in an internationally dynamic environment. DGFT also

issues authorisations to exporters/importers and monitors their corresponding

obligations through a network of 35 Regional Offices.

(ii) Directorate General of Supplies and Disposal (DGS&D)

The DGS&D, with headquarters at New Delhi, is headed by the Director General

an officer of the rank of Additional Secretary. It functions as the executive arm of the

Supply Division of the Department of Commerce for conclusion of rate contracts for

common user items, procurement of stores and inspection of stores, shipment and

clearance of imported stores/cargo. It has four Regional Offices located at Chennai,

Hyderabad, Mumbai and Kolkata. The functions of DGS&D are carried out through its

functional wings and supporting service wings.

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(iii) Directorate General of Anti-Dumping & Allied Duties (DGAD)

The Directorate General of Anti-Dumping & Allied Duties was constituted in April,

1998 and is headed by the Designated Authority of the level of Additional Secretary to

the Government of India who is assisted by a Joint Secretary and an Adviser (Cost) and

an Additional Economic Adviser. Besides, there are twelve Investigating and Costing

Officers to conduct investigations. The Directorate is responsible for carrying out

investigations and for recommending, where required, under the Customs Tariff Act, the

amount of anti-dumping duty/countervailing duty on the identified articles which would

be adequate to remove injury to the domestic industry.

(B) Subordinate Offices

(i) Directorate General of Commercial Intelligence and Statistics (DGCI&S)

The Directorate General of Commercial Intelligence & Statistics (DGCI&S) is the

premier organization of Government of India for collection, compilation and

dissemination of India’s trade statistics and commercial information. This Directorate,

with its office located at Kolkata, is headed by the Director General. The foreign trade

data generated by the Directorate are disseminated through (i) Monthly Press Release

brought out every month by the Ministry of Commerce and Industry, (ii) Monthly Foreign

Trade Statistics of India by Principal Commodities & Countries, (iii) Monthly Statistics of

Foreign Trade of India (Import & Export), and (iv) Quarterly Statistics of Foreign Trade

of India by Countries. The Directorate brings out a number of publications on, inter alia,

inland and coastal trade statistics, revenue statistics, shipping & air cargo statistics.

The dynamic pages of the DGCI&S website www.dgciskol.nic.in are mainly for online

data transmission and provide access to data under PIS (Priced Information System).

(ii) Office of Development Commissioner of Special Economic Zones (SEZs)

The main objectives of the SEZ Scheme are generation of additional economic

activity, promotion of exports of goods and services, promotion of investment from

domestic and foreign sources, creation of employment opportunities along with the

development of infrastructure facilities. All laws of India are applicable in SEZs unless

specifically exempted as per the SEZ Act/ Rules. Each Zone is headed by a

Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ

Rules, 2006. There are currently twelve Development Commissioners of SEZs. Units

may be set up in the SEZ for manufacturing, trading or for service activity. The units in

the SEZ have to be net foreign exchange earners but they are not subjected to any

predetermined value addition or minimum export performance requirements. Sales in

the Domestic Tariff Area from the SEZ units are treated as if the goods are being

imported and are subject to payment of applicable customs duties.

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(iii) Pay and Accounts Office (Supply)

The payment and accounting functions of Supply Division, including those of

DGS&D, are performed by the Chief Controller of Accounts (CCA) under the

Departmentalized Accounting System. Payment to suppliers across the country is made

through this organization at its headquarters in New Delhi and regional offices situated

in Kolkata, Mumbai and Chennai. Internal Audit functions are also carried out in respect

of 9 CDDO and 16 non CDDO situated at various locations in the country.

(iv) Pay and Accounts Office (Commerce & Textiles)

The Pay and Accounts Office, common to both the Department of Commerce

and the Ministry of Textiles, is responsible for the payment of claims, accounting of

transactions and other related matters through the four Departmental Pay & Accounts

Offices in Delhi, two in Mumbai, two in Kolkata and two in Chennai. These

Departmental Pay and Accounts Offices are controlled by the Principal Accounts Office

at Delhi with the Chief Controller of Accounts (CCA) as the Head of the Department of

the Accounts Wing.

C) Autonomous Bodies

(i) Coffee Board

The Coffee Board is a statutory organisation constituted under Section (4) of the

Coffee Act, 1942 and functions under the administrative control of the Ministry of

Commerce and Industry, Government of India. The Board is headed by a Chairperson,

an officer of the rank of Joint Secretary. The Board is mainly focusing its activities in the

areas of research, extension, development, quality up gradation, economic & market

intelligence, external & internal promotion and labour welfare. The Board has a Central

Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research

Stations at Chettalli (Karnataka), Chundale (Kerala), Thandigudi (Tamil Nadu),

R.V.Nagar (Andhra Pradesh), Diphu (Assam) and Bio-technology centre at Mysore,

apart from the extension offices located in coffee growing regions of Karnataka, Kerala,

Tamil Nadu, Andhra Pradesh, Orissa and North Eastern Region.

(ii) Rubber Board

Rubber Board was set up under Section (4) of the Rubber Act, 1947. The

Chairman is the Chief Executive Officer of the Board and its head office is located at

Kottayam in Kerala. The Board is responsible for the development of the rubber industry

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in the country by way of assisting and encouraging scientific, technical and economic

research; providing training to growers in improved methods of planting, cultivation,

manuring, spraying, harvesting; improving processing and marketing of rubber; and

collecting statistics from the owners of estates, dealers, processors and rubber product

manufacturers. It is also the function of the Board to secure better working conditions

and provide/improve amenities and incentives to rubber plantation workers. The Board

has nine departments, viz., Administration, Rubber Production, Research, Processing &

Product Development, Statistics & Planning, Finance & Accounts, Training, Market

Promotion and Licensing & Excise Duty.

(iii) Tea Board

The Tea Board is an autonomous body under the Ministry of Commerce &

Industry, Government of India, set up as a statutory body on 1st April, 1954 as per

provision under Section (4) of the Tea Act, 1953. It is an apex body, which looks after

the overall interests of the tea industry. The Board is headed by a Chairman (an officer

of the rank of Joint Secretary) and consists 30 Members representing the Parliament(3),

owners of tea estates(8), Government of principal tea growing states(6), workers

unions(5), Manufacturers of tea(2), consumers(2) and other interest(2). The Head

Office of the Board is located in Kolkata, West Bengal and has 16 regional/ sub-

regional offices throughout India and three overseas offices located at London, Moscow

and Dubai whose activities are mostly promotional in nature to boost export. Tea Board

has wide functions and responsibilities which include measures for development of the

tea industry and trade, extending financial and technical assistance to the tea growers,

manufacturers and producers, export promotion and domestic generic promotion,

regulating and controlling different marketing activities including that of tea auctions,

facilitating R&D activities, market liaison, assistance to labour welfare activities,

maintenance of statistical data, etc.

(iv) Tobacco Board

The Tobacco Board was constituted as a statutory body on 1st January, 1976

under Section (4) of the Tobacco Act, 1975. The Board is headed by a Chairperson (an

officer of the rank of Joint Secretary) with 25 other members, and its headquarters at

Guntur, Andhra Pradesh. The Board is responsible for the development & regulation of

the tobacco industry. The Board also has a Directorate of Auctions at Bangalore and 18

auction platforms across the states of Andhra Pradesh and Karnataka. The primary

functions of the Board include regulating the production and curing of Virginia Tobacco;

keeping a constant watch on the Virginia Tobacco market in India and abroad; ensuring

fair and remunerative prices to growers; maintaining and improving existing markets

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and developing new markets abroad by devising appropriate marketing strategies. The

Board is entrusted with the task of recommending to the Central Government the

minimum prices that may be fixed; regulating tobacco marketing in India with due regard

to the interest of growers, manufacturers and dealers; propagating information useful to

growers, traders and manufacturers and purchasing Virginia Tobacco from the growers

when the same is considered necessary for protecting the interests of growers.

(v) Spices Board

The Spices Board was constituted as a Statutory Body on 26th February, 1987

under Section (3) of the Spices Board Act, 1986. The Board is headed by a Chairman

with its head office in Kochi and is responsible for the development of cardamom

industry and promoting the export of all the 52 Spices listed in the schedule of Spices

Board Act, 1986.

The primary functions of the Board include increasing the production and

productivity of small and large cardamom; development, promotion and regulation of

export of spices; granting certificate for export of spices; undertaking programmes and

projects for promotion of export of spices (like setting up of spices parks, support of

infrastructure improvement in spices processing etc.); assisting and encouraging

studies and research for improvement of processing, grading and packaging of spices;

striving towards stabilization of prices of spices for export and controlling and upgrading

quality for export (including setting up of regional quality evaluation labs and training

centers). With regard to cardamom, the Board also provides financial and other

assistance for cultivation and processing of cardamom; monitoring prices; increasing

domestic consumption; improving marketing; issue of license to auctioneers and

dealers, conducting electronic auction for cardamom; undertaking/ assisting or

encouraging scientific, technological and economic research and improving quality. The

Board also implements programmes for development of spices in NE region and

organic spices in the country. It also supports programmes aimed at better post harvest

practices.

(vi) The Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development Authority was set up as a Statutory

Body formed in 1972 under an Act of Parliament (No.13 of 1972) under Ministry of

Commerce and Industry. The authority is responsible for development of marine

industry with special form on marine export. The Authority, with its headquarters at

Kochi and Field Offices in all the maritime states of India and 4 highly equipped Quality

Control Laboratories in Kochi, Bhimavaram, Nellore and Bhubaneswar respectively.

Besides, it has three trade promotion offices, one in Delhi and another two in overseas

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(Tokyo & New York). MPEDA implement various developmental activities for export

promotion and extend assistance to promote aquaculture of exportable items. Deep-

sea fishing, value addition and increased production through aquaculture are the major

thrust areas identified for augmenting export of marine products. Two overseas Trade

Promotion Offices liaise with the importers and various agencies for promoting seafood

exports to the respective countries. The Authority has one field office in North East

(Guwahati). The Quality Control Laboratories serve the industry by analyzing and

disseminating test results of marine products to sustain/promote the sophisticated

export market. The Authority functions under the overall supervision of the Chairman,

supported by a team of officials both at the Head Office and the field units.

MAJOR SCHEMES/PROGRAMMES MARKET PROMOTION

Promotion of Indian Seafood in various overseas markets through appointment of

reputed professional agencies as Marketing Consultants, printing publicity literature,

brochures etc., to disseminate the information among the exporters regarding markets,

product price, enquiry for products, release of advertisements in reputed commercial

and seafood international publications, organize trade delegations to strengthen trade

relations, to settle common issues of exporters, conducting Indian International Seafood

Show, Aqua Aquaria India, regular participation in major international seafood fairs

being held in EU countries, Japan, USA etc., development of software for collection and

analysis of export statistics, membership in international organizations, operation of

trade promotion offices, to produce India a seafood processing hub by importing raw

material for processing and export of value added marine products, provide market

assistance like market survey, assistance for export of ornamental/aquarium fishes etc.,

are the major activities under Market Promotion.

CAPTURE FISHERIES

Under Capture Fisheries MPEDA aims at promotion of fishing tuna and other under

exploited resources, better preservation of catch using insulated/refrigerated fish

hold/RSW system on board fishing vessel, engagement of technical consultants for

imparting training to our fishermen in scientific tuna long lining and onboard handling

catch, issue ‘catch certificates’ insisted on by European Union for eliminating illegal

fishing etc., etc.,

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CULTURE FISHERIES

MPEDA through its Field Offices is advocating an environmental friendly and

sustainable aquaculture implementing schemes to motivate private entrepreneurs for

investing in the farming of commercially important species, encourage farming of

diversified species, adopt best management practices in farming, discourage use of

banned chemicals and antibiotics, impart training to farmers, demonstrate farming of

diversified species. MPEDA organizes seminar, fairs and farmers meets to facilitate

exchange of information on farming techniques, source of inputs, improving the farming

practices. MPEDA also interacts with other government agencies to sort out the

problems of farmers. MPEDA is also assisting for ornamental fish production in a big

way.

PROCESSING INFRASTRUCTURE & VALUE ADDITION

The Scheme is to assist seafood processors to set up tuna cannery/processing

facilities for value added tuna products, promotion of value addition in seafood

processing and setting up of new units by providing subsidy assistance, expand the

existing production capacity for value added products and diversifying into value

addition. To maintain quality of the seafood products, subsidy assistance is being

provided to set up new modern ice plant/renovation of existing ice plants, acquisition of

refrigerated truck/containers, to set up large cold storage, subsidized distribution of

insulated fish boxes etc., and schemes are also being operated to assist exporters of

chilled fish/dried fish.

QUALITY CONTROL

The biggest issue facing the marine products sector today is to build capacity to

meet health and consumer safety requirements in the importing countries. Facilities at

the landing centres and processing plants are required to be upgraded and HACCP

system of quality assurance is implemented. Health Authorities from the importing

countries especially from the EU and US FDA make periodic visits to the landing

centres, processing facilities and laboratories in India to see themselves the adequacy

of these facilities in India. MPEDA has set up 20 Elisa labs and 4 full-fledged labs for

analyzing aquaculture products for various parameters such antibiotics, pesticides,

heavy metals etc., monitoring of residue level of pesticides and antibiotic in farmed

shrimp to meet EU standards, quality upgradation through assistance for

construction/renovation of captive pre-processing centres, independent pre-processing

centres, setting up of mini lab. Under quality system management MPEDA give training

for seafood processing technologists employed in registered processing plants, inviting

health authorities of importing countries/sending delegates abroad, upgrade fishing

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harbours, and implement marine product logo, and assistance for upgradation of

seafood plants to EU standards.

RESEARCHE AND DEVELOPMENT

To disseminate new technology for export oriented aquaculture, MPEDA has set

up a Society called Rajiv Gandhi Centre for Aquaculture at Mayiladuthurai, Tamil Nadu.

The following are the projects being implemented under RGCA:-

1) Seabass Hatchery

2) Mud Crab Hatchery

3) Aquaculture Demonstration Farm

4) Domestication of Tiger Shrimp

5) Technology Transfer Training

6) Scampi Broodstock Development

7) Artemia Project

8) Tilapia Project

9) Marine Finfish hatchery Project

10) Grouper Project

11) RGCA FOUNDATION

12) Tuna Pilot scale Hatchery Project

13) L.vannamei Broodstock Mulitiplication Centre

(vii) Agricultural and Processed Food Products Export Development Authority

(APEDA)

The Agricultural and Processed Food Products Export Development Authority

(APEDA) was established in 1986 as a Statutory Body under an Act of Parliament. The

Authority, with its headquarters at New Delhi, is headed by a Chairperson. The Authority

has five Regional Offices at Guwahati, Hyderabad, Kolkata, Bangalore and Mumbai and

is entrusted with the task of promoting agricultural exports, including the export of

processed foods in value added form. APEDA has also been entrusted with monitoring

of export of 14 agricultural and processed food product groups listed in the Schedule to

the APEDA Act. APEDA has been actively engaged in the development of markets

besides up gradation of infrastructure and quality to promote the export of agro

products. In its endeavour to promote agro products, APEDA provides financial

assistance to the registered exporters under its Schemes for Market Development,

Infrastructure Development, Quality Development and Transport Assistance.

Mechanism for monitoring financial assistance schemes:

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The financial assistance, under the schemes, is provided on reimbursement

basis to the exporters.

The claims are duly supported with invoices, project reports, financial status

reports and C.A. certificates etc.

The proposals are evaluated by the technical committee before

recommendations for approval.

Before the release of the claims, the assets created under the schemes are

physically verified by APEDA officials to ensure that the assets have been

created as per the “in principle” approval accorded by APEDA.

(viii) Export Inspection Council (EIC)

The Export Inspection Council was set up as a Statutory Body on 1st January,

1964 under Section 3 of the Export (Quality Control and Inspection) Act, 1963 to ensure

sound development of export trade of India through quality control and inspection and

for matters connected therewith. The Council is an advisory body to the Central

Government, with its office located at New Delhi and is headed by a Chairperson. The

Executive Head of the EIC is the Director of Inspection & Quality by Control who is

responsible for the enforcement of quality control and compulsory pre-shipment

inspection of various commodities meant for export and notified the Government under

the Export (Quality Control and Inspection) Act, 1963. The Council is assisted in its

functions by the Export Inspection Agencies (EIAs), which are field organizations

located at Chennai, Delhi, Kochi, Kolkata and Mumbai. These EIAs have a network of

twenty nine sub-offices located at different ports or major industrial centers and four

state-of-the-art laboratories with the required logistic support for the pre-shipment

inspection and certification activities.

(ix) Indian Institute of Foreign Trade (IIFT)

The Indian Institute of Foreign Trade (IIFT) is a Society registered under the

Societies Registration Act XXI of 1860 (Punjab Amendment) Act of 1957 and functions

under the aegis of Ministry of Commerce, Govt. of India. The Institute came into

existence on 2nd May 1963 and was granted Deemed University status by Ministry of

HRD in 2002. Over the years, the Institute has attained the status of premier institution

for imparting education in the field of International Business. The Institute is currently

operating from its campus in Delhi and leased Centre at Kolkata. Construction of

permanent campus at Kolkata is going-on on the land allotted by Government of West

Bengal.

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The Institute was set up as an autonomous organization to help professionalize

country’s foreign trade management and increase exports by developing human

resources; generating, analyzing and disseminating data; and conducting research.

Apart from offering MBA level education in the field of International business, the

Institute is also involved in the research activity and consultancy for studies in the field

of international business on behalf / and for Ministry of Commerce. Apart from this the

Institute also conducts management development programs on topics related to

international business and trade. From these activities the Institute generates

resources for partly meeting its expenditure.

(x) Indian Institute of Packaging (IIP)

The Indian Institute of Packaging (IIP), Mumbai was set up in 1966 by the

packaging fraternity in association with the Ministry of Commerce & Industry. The

primary objective of the Institute is to stimulate consciousness of good packaging;

undertake and promote R&D in packaging technology and package design, provide

short-term and long-term educational and training programme in packaging technology.

IIP also organizes seminars and conferences in collaboration with different

Ministries/Departments of the Government, and industry associations. The Institute has

its regional branches in Delhi, Kolkata, Chennai, and Hyderabad. The Institute has also

planned to set up its branches at Ahemedabad and North East under the 12th five year

plan.

(D) Public Sector Undertakings (PSUs)

(i) State Trading Corporation of India Limited (STC)

STC was set up on 18th May, 1956, primarily with a view to undertake trade with

East European Countries and to supplement the efforts of private trade and industry in

developing exports from the country. STC has played an important role in country’s

economy by arranging imports of essential items of mass consumption (such as wheat,

pulses, sugar, etc.) into India and developing exports of a large number of items from

India. The core strength of STC lies in handling exports/ imports of bulk agro

commodities. During the past 4-5 years, STC has diversified into exports of steel raw

materials, gold jewellery and imports of bullion, hydrocarbons, minerals, metals,

fertilizers, petro-chemicals, etc.

STCL Ltd., having its headquarters at Bangalore, is a subsidiary of STC. It was

initially established in 1982 as Cardamom Trading Corporation Ltd., a Government of

India undertaking under the Ministry of Commerce & Industry. The company diversified

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its trading activities from cardamom to spices to become Spices Trading Corporation

Ltd., in 1987. With globalization and opening of trade world over, the Spices Trading

Corporation Ltd. was renamed as STCL Ltd. STCL became a wholly owned subsidiary

of the State Trading Corporation of India Ltd. in 1999. STCL is involved in trading of

spices, value added spice products, agricultural commodities, fertilizers and pesticides.

The CMD of STC is the Chairperson of STCL Ltd.

(ii) MMTC Limited

The MMTC Limited (Minerals and Metals Trading Corporation) was created in

1963 as an individual entity on separation from State Trading Corporation of India Ltd.

primarily to deal in exports of minerals and ores and imports of non-ferrous metals. In

1970, MMTC took over imports of fertilizer raw materials and finished fertilizers. It is

actively involved in exploring overseas markets for exports and sourcing material for

domestic needs. With focus on bulk operations and having infrastructure spreading

across the country, MMTC has primarily six core commodity groups Viz., fertilizers,

Agro commodities, coal and hydrocarbons, Minerals & Precious metals. The company is

recognized as India’s largest international trading company and first Public Sector

Undertaking to be awarded “Premier Trading House” status in the country.

(iii) PEC Limited

The Project and Equipment Corporation of India Ltd. (PEC) was carved out of the

STC in 1971-72 to take over the canalized business of STC’s railway equipment

division, to diversify into turn-key projects especially outside India and to aid and assist

in promotion of exports of Indian engineering equipment. With effect from 23rd May,

1990, PEC became a subsidiary of the then newly formed Holding Company, Bharat

Business International Ltd. Thereafter, from 27th March, 1991, PEC became an

independent company directly owned by Government of India. The main functions of

PEC Ltd. includes export of projects, engineering equipment and manufactured goods,

defence equipment & stores; import of industrial raw materials, bullion and agro

commodities; consolidation of existing lines of business and simultaneously developing

new products and new markets; diversification in export of non-engineering items eg.

coal & coke, iron ore, edible oils, steel scraps, etc.; and structuring counter trade/

special trading arrangements for further exports.

(iv) Export Credit Guarantee Corporation of India Limited (ECGC)

The Export Credit Guarantee Corporation of India Ltd.(ECGC) Mumbai has the

primary objective of supporting the country’s exports by extending Insurance and

19

Guarantee facilities to the Indian exporters and the commercial banks. The paid up

capital at the end of 2011-12 was Rs. 900.00 crore.

The total gross direct premium income from all schemes of corporation during

the year 2011-12 amounted to Rs. 1004.83 crore as compared to Rs. 885.47 crore in

the year 2010-11. The growth came from the Export Credit Insurance to Bank

business, accounting for 59.89% of the total premium income, followed by Short Term

Policy sector including factoring, which contributed 35.42%. The income from medium

and long term sector accounted for just 4.69% (Rs. 47.27 crore) of the total premium

income. During the year ECGC achieved a growth of 13.48% in gross premium income.

(v) India Trade Promotion Organization (ITPO)

Following the merger of the Trade Fair Authority of India (TFAI) and the Trade

Development Authority (TDA), India Trade Promotion Organisation (ITPO) came into

existence in 1992. ITPO is the premier trade promotion agency of India and provides a

broad spectrum of services to trade and industry so as to promote India’s exports.

These services include organisation of trade fairs in India and abroad, Buyer-Seller

Meets and Contact Promotion Programmes apart from information dissemination on

products and markets. With its Headquarters at Pragati Maidan, New Delhi and regional

offices at Bangalore, Chennai, Kolkata and Mumbai, ITPO ensures representative

participation of trade and industry from different regions of the country in its events in

India and abroad

(E) Export Promotion Councils (EPCs)

Presently, there are fourteen Export Promotion Councils under the administrative

control of the Department of Commerce. These Councils are registered as non-profit

organizations under the Companies Act/ Societies Registration Act. The Councils

perform both advisory and executive functions. The role and functions of these

Councils are guided by the Foreign Trade Policy. These Councils are also the

registering authorities for exporters under the Foreign Trade Policy 2009-14.

(F) Advisory Bodies

(i) Board of Trade (BOT)

The Board of Trade was set up on 5th May, 1989 with a view to provide an

effective mechanism to maintain continuous dialogue with trade and industry in respect

of major developments in the field of International Trade. The Board was reconstituted

on 16th July, 2009 under the Chairpersonship of Commerce & Industry Minister. The

20

Board, inter-alia, advises the Government on policy measures connected with the

Foreign Trade Policy in order to achieve the objectives of boosting India’s exports.

(ii) Inter State Trade Council

The Inter State Trade Council was set up on 24th June, 2005 with a view to

serve as a mechanism for institutionalized dialogue between the Union and the States

in matters relating to trade facilitation and to create a framework for making States

partners in India’s export effort. The Council is represented by Chief Ministers of the

States or State Cabinet Ministers nominated by Chief Ministers, Lt. Governors or

Administrators of the Union Territories or their nominees, Secretaries of the

Departments of Commerce, Revenue, Industrial Policy & Promotion, Agriculture &

Cooperation, Shipping, Road Transport & Highways, Ministries of External Affairs,

Power and Chairperson, Railway Board. It also co-opts the Chairperson-cum-Managing

Director of Export Credit Guarantee Corporation, Managing Director of EXIM Bank,

Deputy Governor of Reserve Bank of India, Chairperson of Agricultural and Processed

Food Products Export Development Authority, Chairperson of Marine Products Export

Development Authority and presidents of CII, FICCI, FIEO, ASSOCHAM and Export

Promotion Council for EOUs/ SEZs.

(G) Other Organizations

(i) Federation of Indian Export Organizations (FIEO)

The Federation of Indian Export Organizations set up in 1965, is an apex body of

various export promotion organizations and institutions with its major regional offices at

Delhi, Mumbai, Chennai and Kolkata. The main objective of FIEO is to render an

integrated package of services to various organizations connected with export

promotion. It provides the content, direction and thrust to India’s global export effort. It

also functions as a primary servicing agency to provide integrated assistance to its

members comprising professional exporting firms holding recognition status granted by

the government, consultancy firms and service providers. The Federation organizes

seminars and arranges participation in various exhibitions in India and abroad. It also

brings out ‘FIEO News’, for creating awareness amongst its member exporters and

importers.

(ii) Indian Council of Arbitration (ICA)

The Indian Council of Arbitration, India’s premier Arbitral Institution, is a society

registered under the Societies Registration Act, 1860 operating on no profit basis, with

21

its head office in New Delhi and eight branches with a pan India network. The

organization originally established in 1965 promotes and administers the use of

alternative dispute resolution mechanisms in commercial disputes. The main objective

of the Council is to promote the knowledge and use of arbitration and provide arbitration

facilities for amicable and quick settlement of commercial disputes with a view to

maintaining the smooth flow of trade, particularly export trade on a sustained and

enduring basis.

(iii) Indian Diamond Institute (IDI)

With the objective of enhancing the quality, design and global competitiveness of

the Indian jewellery, the Indian Diamond Institute (IDI) was established as a society in

1978 with its office located at Surat. The Institute is sponsored by the Department of

Commerce and patronized by the Gems and Jewellery Export Promotion Council

(GJEPC). The Institute conducts various diploma and other courses related to diamond,

Gems & Jewellery. It also offers the three year diploma course on Diamond, Gem &

Jewellery Design & Manufacture. Institute’s Diamond Certification & Grading

Laboratory has been recognized world over and its laboratory is also authorized by the

DGFT, MOC&I, as per Chapter 4 of FTP 2009-14 for certification/Grading of Diamonds

of 0.25 Ct & above. Indian Diamond Institute has been accorded with recognition as a

Scientific & industrial Research Organizations (SIRO), by the Department of Scientific &

industrial Research, Ministry of Science & Technology, Government of India. It has also

been recognized as Anchor Institute (Gem & Jewellery) by Industries Commissionerate,

Government of Gujarat.

(iv) Footwear Design & Development Institute (FDDI)

Footwear Design and Development Institute established in the year 1986 under

the aegis of Ministry of Commerce, Government of India, with an objective to provide

one stop solution to the footwear and leather product industry is the premier institute of

the country. Since more than two decades FDDI is involved in Human Resource

Development and providing other technical services such as testing, inspection,

designing, consultancy etc. the Leather and Leather product industry.

The brief details of the schemes are summarized below:

(A) Ongoing Scheme

Establishment of FDDI Branch at Jodhpur

22

In order to ensure high end institutional infrastructure in all the major clusters,

Govt. of India had approved establishment of a full-fledged campus in Jodhpur

(Rajasthan) under 11th Five year Plan at a total outlay of Rs.97.12 crore.

The modern infrastructure and facilities with training capacity of 800-1000

students have been completed in the Jodhpur campus within the stipulated period. In

the new campus state of art infrastructure and facilities such as Smart class rooms,

Workshops with latest machines and equipment, High tech IT Lab, Library etc. have

been established to accommodate training and services in various disciplines in line

with existing campuses of FDDI. The support infrastructure such as Auditorium with

modern gadgets, Sports complex, residential facilities for staffs along with separate

Boys and Girls Hostel have also been established simultaneously to encourage high

end training and research facilities in the campus.

(B) New Schemes:

The new schemes during XII Five Year Plan are as under:

(i) Establishment of FDDI branch at Guna:

In order to ensure high end institutional infrastructure in all the major

clusters, Govt. of India has approved establishment of a full-fledged campus in

Guna, Madhya Pradesh under 12th Five year Plan with total outlay of Rs.109.50

Crore. The campus in Guna (Madhya Pradesh) will cater to the need of trained

manpower for the present need and future expansion of the industry and provide all

technical value added services for the global competence of the Industry. 1st

installment of Rs. 20.00 Crore has been released to FDDI. The Construction work

of Buildings of FDDI Branch at Guna has already started. The Procurement of

Machinery and Equipment are under process. The admission process of students

for UG& PG programme is being initiated along with other branches.

(ii) In addition to the above, it is projected to implement the following three schemes during 12th Five Year plan: a) Expansion and up-gradation of Training Centre of FDDI at Chhindwara into

a full-fledged campus.

b) Establishment of 2 new campuses at Patna (Bihar) and Hyderabad

(Andhra Pradesh).

c) Establishment of Campus Networking Centre (CNC) and Upgradation of

existing campuses.

(v) National Centre for Trade Information (NCTI)

23

The National Centre for Trade Information (NCTI) was incorporated on 31st

March, 1995 as a company under Section 25 of Companies Act, 1956. The company

started functioning w.e.f. March 1996. It has a Board of Directors for administration of its

affairs, which includes representatives from Ministry of Commerce & Industry, National

Informatics Centre (NIC), Indian Institute of Foreign Trade (IIFT), and Directorate

General of Commercial Intelligence & Statistics (DGCI&S).

The ITPO and NIC are co-promoters of the company and have contributed a sum

of Rs.4.00 crore (Rs.2.00 crore each) as Corpus Fund in the equity contribution of the

Company. The ITPO provides fully furnished office space and the NIC provides the

software and hardware against their equity contribution in kind.

The Centre provides value added information in the field of electronic trading

opportunities, live trade leads from World Trade Point Federation (WTPF), trade data

analysis and organized export awareness seminars and updating/uploading information

on its website. The centre uploads 52 issues of E-weekly ‘Trade Point-India’ annually on

its website containing approximately 250 trade leads each week.

(vi) Price Stabilization Fund Trust

The Price Stabilization Fund (PSF) Scheme was launched by Government of

India in April 2003 against the backdrop of decline in international and domestic prices

of tea, coffee, rubber, and tobacco causing distress to primary growers. The growers of

these commodities were particularly affected due to substantial reduction in unit value

realization for these crops, at times falling below their cost of production. The objective

of the Scheme is to safeguard the interests of the growers of these commodities and

provide financial relief when prices fall below a specified level. The Scheme is being

operationalized through the Price Stabilization Fund Trust.

III. Mandate of the Department

The mandate of the Department of Commerce is the regulation, development

and promotion of India’s international trade and commerce through formulation of

appropriate international trade and commercial policy and implementation of the various

provisions thereof. The work allocated to Department of Commerce in accordance with

the Allocation of Business Rules, 1961 is given below:

A. International Trade

International Trade and Commercial Policy including tariff and non-tariff barriers.

24

International Agencies connected with Trade Policy (e.g. UNCTAD, ESCAP,

ECA, ECLA, EEC, EFTA, GATT/WTO, ITC and CFC).

International Commodity Agreements other than agreements relating to wheat,

sugar, jute and cotton.

International Customs Tariff Bureau including residuary work relating to the Tariff

Commission.

B. Foreign Trade (Goods & Services)

All matters relating to foreign trade.

Import and Export Trade Policy and Control excluding matters relating to -

import of feature films;

export of Indian films- both feature length and shorts; and

Import and distribution of cine-film (unexposed) and other goods.

C. State Trading

Policies of state trading and performance of organizations established for the

purpose and including -

STC Ltd. and its subsidiary STCL Limited; (excluding Handicrafts and

Handlooms Export Corporation and Central Cottage Industries Corporation;

the Tea Trading Corporation of India Limited which are now not its

subsidiaries);

Projects & Equipment Corporation of India Limited (PEC);

India Trade Promotion Organization and its subsidiaries; and

Minerals and Metals Trading Corporation (MMTC) and its subsidiaries.

Production, distribution (for domestic consumption and exports) and development

of plantation crops, tea, coffee, rubber, spices, tobacco and cashew.

Processing and distribution for domestic consumption and exports of instant tea

and instant coffee:-

(a) Tea Board.

(b) Coffee Board.

(c) Rubber Board.

(d) Spices Board.

(e) Tobacco Board.

D. Management of Certain Services

Cadre Management of Indian Trade Service and all matters pertaining to training,

career planning and manpower planning for the service.

25

Cadre Management of Indian Supply Service and all matters pertaining to

training, career planning and manpower planning for the service.

Cadre Management of Indian Inspection Service and all matters pertaining to

training, career planning and manpower planning for the service.

E. Special Economic Zones

All matters relating to development, operation and maintenance of Special

Economic Zones and units in special economic zones, including export and

import policy, fiscal regime, investment policy, other economic policy and

regulatory framework.

Note: All fiscal concessions and policy issues having financial implications are

decided with the concurrence of the Ministry of Finance or failing such

concurrence with the approval of the Cabinet.

F. Export Products and Industries and Trade Facilitation

Gems and Jewellery.

Matters relating to Export Promotion Board, Board of Trade and International

Trade Advisory Committee.

Matters relating to concerned EPCs/Export Promotion Organizations.

Indian Institute of Foreign Trade and Indian Institute of Packaging.

Indian Diamond Institute and Footwear Design and Development Institute.

Coordination for export infrastructure.

Development and expansion of export production in relation to all commodities,

products, manufacturers and semi-manufacturers including -

agricultural produce within the meaning of the Agricultural Produce (Grading

and Marking) Act, 1937 (1 of 1937);

marine products;

Industrial products (engineering goods, chemicals, plastics, leather goods

etc.);

fuels, minerals &mineral products; and

Specific export oriented products including plantation crops, etc. but

excluding jute products and handicrafts.

All organizations and institutions connected with the provision of services relating

to the export effort including -

Export Credit and Export Insurance including ECGC;

Export Inspection Council Standards including Quality Control;

Directorate General of Commercial Intelligence and Statistics; and

Free Trade-Zones.

26

Projects and programmes for stimulating and assisting the export efforts.

G. Attached and Subordinate Offices

Directorate General of Foreign Trade.

Directorate General of Supplies and Disposals.

Directorate General of Anti-Dumping and Allied Duties and related matters.

Directorate General of Commercial Intelligence and Statistics.

H. Statutory Bodies

Marine Products Export Development Authority.

Agricultural and Processed Food Products Export Development Authority.

I Major Schemes:

(i)Assistance to States for Development of Export Infrastructure and Allied

Activities (ASIDE):

In pursuance of the EXIM Policy announcement in March, 2000, ASIDE scheme

was launched on 13.3.2002. The Scheme subsumed erstwhile Central Schemes viz. the

Critical Infrastructure Balance Scheme, the Export Promotion Industrial Park Scheme

and the Export Development Fund (EDF) Scheme for the North East; all of which were

being operated by the Commerce Department. Rs. 2050 crore and Rs 3048 Cr were

spent under this scheme during the 10th Five Year Plan (2002-2007) and the 11th Five

Year Plan (2007-2012) respectively.

The objective of the scheme is to involve States / UTs in export effort by

providing assistance to the State Governments / UT Administrations for creating

appropriate infrastructure for development and growth of exports. Such involvement will

be based on projects to be prioritized by States / UTs to address the critical link both at

the point of production and the point of evacuation in the industrial cluster, largely within

the contour of the first mile and the last mile consideration.

The scheme shall provide an outlay for development of export infrastructure

which will be distributed to the States / UTs according to pre-defined criteria.

The activities aimed at development of infrastructure for exports can be funded

from the scheme provided such activities have an overwhelming export content and

their linkage with exports is fully established. The scheme shall be exclusively used for

creating infrastructure which does not get reflected either in the State / UT plan or in the

plans of the Central Ministries or its organization(s), yet such infrastructure is critical for

growth of exports.

27

Funds are provided to States/UTs as per the following criteria:-

The outlay of the scheme has two components: State Component (80% of the

total outlay) and Central Component (20% of the total outlay). 90% of total outlay under

State Component of ASIDE i.e. ASIDE (State Component--General) is earmarked for

allocation to States / UTs on the basis of the approved criteria to be utilized for the

approved purposes. The balance 10% of State Component of ASIDE i.e. ASIDE (

State Component-- Incentive ONER) will be allocated by DoC for incentivizing the

better performance of ONER States / UTs ( States / UTs other than NER including

Sikkim) as per Incentive guidelines. At the State Level, a State Level Export Promotion

Committee (SLEPC) headed by Chief Secretary of the State and consisting of States

Secretaries of concerned Departments, a representative of the States Cell of

Department of Commerce (DoC), Joint Director General of Foreign Trade posted in that

State/ region and Development Commissioner of SEZs in the State scrutinizes and

approves specific projects and oversees its implementation.

90% of total outlay, under Central Component of ASIDE i.e. ASIDE ( Central

Component--General) shall be earmarked at the central level to cater projects

emanating from Central SEZs, other sector specific central agencies like spices Board,

Tea Board, Gems and Jewellery Export Promotion Councils, Airports, Ports etc and any

other activity considered important by the Central Government from the regional or the

national perspective. At the Central Level, an Empowered Committee under

chairmanship of Commerce Secretary with representatives of other Departments,

approves and monitors the projects under the Central Sector. This Empowered

Committee also periodically reviews progress of projects and takes steps to ensure

achievement of objectives of the scheme. The balance 10% of Central Component of

ASIDE i.e. ASIDE(Central Component--Incentive NER) is allocated by DoC for

incentivizing the better performance of NER States including Sikkim as per Incentive

guidelines of Scheme.

The progress of the Scheme in States is closely monitored by States Cell of DoC.

In order to evaluate progress in the implementation of projects, its impact on exports

etc., the projects sanctioned under ASIDE/CIB are being visited by field formations of

Department of Commerce who submit consolidated report in the prescribed format to

Department of Commerce, State Government and the nodal agency of the State for

appropriate action. Senior Officers of the Department of Commerce have also been

made Nodal Officers and allocated certain States/UTs for on the spot inspection of the

projects being taken up by the States/UTs from ASIDE funds.

Review Meetings with the State Governments are held by the Department of

Commerce for evaluation of the progress of the Scheme in the States. A web-enabled

monitoring system of the projects has been developed on the website of the Department

28

for online assessment of the progress of the projects. In this system, we have entry

module and reporting module. In the entry module Nodal Agency of the respective State

Govt. /UT administration has been authorized to enter details of the projects approved

by the concerned SLEPC and also the physical and financial progress pertaining to

each project on quarterly basis. In the report module the administrative division in the

Ministry enters the details of funds released from time to time. Based on these two

entries, we get number of reports including that about utilization of funds and also un-

utilized balance left with the Nodal Agency. Pending utilization certificate are also

tracked through the monitoring system of website. The reports generated through web

enabled monitoring system in used for monitoring of ASIDE scheme as well as for

further release of funds to various agencies.

Approval of Projects and Implementation

As per the ASIDE guidelines there shall be a State Level Export Promotion

Committee (SLEPC) headed by the Chief Secretary of the State and consisting of the

Secretaries of concerned Departments at the State level, & a representative of the

States cell of the Department of Commerce (DoC) and the Joint Director General of

Foreign Trade posted in that State/region and the Development Commissioners of the

SEZ/EPZ in the State within their jurisdiction as Members. SLEPC will scrutinize and

approve specific projects and oversee the implementation of the Scheme.

Each State/UT shall appoint/designate one of its officers as Export

Commissioner who shall be the convener of SLEPC and with whom DoC will interact on

the issues pertaining to ASIDE. He shall draw up five year and annual export plans for

the State/UT in consultation with the trade & industry, the Export Promotion Councils

and the DoC. He shall also draw up a shelf of location specific projects, for the approval

of the SLEPC, which are proposed to be taken up under this scheme. He shall also act

as a single point interface with the exporters from the State/UT.

The SLEPC will ensure that the proposals will be location specific and selection

of location and inter-se prioritizing will be done by the SLEPC. For this, SLEPC will draw

a list of centres to be focused for developing export infrastructure over next 2-3 years

and a shelf of projects will be kept in advance to take full advantage of this Scheme

each year. The list of Centres may be drawn in consultation with Export Promotion

Councils (EPCs) and other export promotion bodies. On approval of the proposals by

the SLEPC, funds shall be disbursed to the implementing agency of the project by the

Nodal Agency. State Governments are advised to put in place a system for

Disbursement of funds by Nodal Agency to Implementing Agency of the project. As far

as possible the States may leverage the funds released by the DoC with other schemes

29

and projects of the State Govt. Private Sector could be involved in the infrastructure

projects as per the guidelines.

Before sanctioning new projects, the SLEPC will allocate funds for the likely

expenditure of the ongoing projects. The SLEPC will ensure that except in exceptional

cases no new project has a gestation period of more than 2 years.

For outlays under the Central component, there shall be an Empowered

Committee in the Department of Commerce, headed by the Commerce Secretary and

consisting of representatives from the Planning Commission and the respective

ministries to consider and sanction the proposals received as per the procedure

prescribed. If any project has any bearing on the external sector, a representative of the

Ministry of External Affairs would be invited for the meeting of the Empowered

Committee.

The 20% Central component would be approved as per the delegation of powers under Financial Rules of Government of India. The 80% State component would be approved by the State Government as per the Rules of Business of the State Government.

Payments made under the scheme will be subject to audit by the Controller & Auditor General of India as also by other means as deemed fit by Government of India. Government of India will cause physical verification and other such enquiries as deemed fit, of the projects sanctioned under the Scheme.

The Implementing Agency of each project will see that wherever feasible, users of the infrastructure will pay a service charge for the same, which could meet the expenditure on operation and maintenance of the infrastructure so created.

J. Miscellaneous

Purchase and inspection of stores for Central Government Ministries/

Departments including their attached and subordinate offices and Union Territories,

other than the items of purchase and inspection of stores which are delegated to other

authorities by general or special order.

****

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CHAPTER – II

FINANCIAL OUTLAYS AND QUANTIFIABLE DELIVERABLES - PHYSICAL

OUTPUTS & FINAL OUTCOMES

For the year 2012-13, an outlay of Rs.5023.00 crore was approved for the

various Plan and Non-Plan schemes of the Department. Out of this, Plan outlay was

Rs.2100.00 crore. The provisional Plan Expenditure (up to 20.02.2013) for the year

2012-13 is estimated at Rs. 1617.80 Crore. As against this, an outlay of Rs 5391.00

crore has been approved for the year 2013-14; consisting of Plan outlay of Rs.2226.00

crore and Non-Plan outlay of Rs. 3165.00 Crore. As export promotion and market

development is the core of the activities of the Department, assistance in the form of

export subsidy at Rs. 1300.00 crore, grants-in-aid at Rs. 50.00 crore and interest

subsidy to banks at Rs. 1,200.00 crore constitutes the bulk of the Non-Plan

expenditure. On the Plan side, the Centrally-sponsored scheme of Assistance to States

for the Development of Export Related Infrastructure and Allied Activities (ASIDE)

constitutes the single most important activity accounting for an outlay of Rs. 960.00

crore(including NER & SCSP).

The scheme-wise details of the financial allocations and the quantifiable

deliverables/outputs for the year 2013-14, wherever possible, are given below in the

tabular form.

31

OUTLAYS, QUANTIFIABLE DEVLIVERABLES/PHYSICAL OUTPUTS & OUTCOMES

SL.No.

Name of Scheme Objective/Outcome Outlay 2013-14 ( Rs. in crore)

Quantifiable/ deliverables/ physical Outputs

Projected Outcomes

Processes/Timelines

Remarks/ Risk factors

1. 2. 3. 4.

7. 8. 9.

Plan Non Plan IEBR

4(i) 4(ii) 4(iii)

1. Secretariat – Economic Services

The Department is responsible for the formulation & Implementation of Foreign Trade Policy, matters relating to multilateral and bilateral commercial relations, state trading, export promotion etc. The provision is for secretariat expenditure of the Department.

0.00 60.50 0.00 Exchange of information in a transparent and efficient manner resulting in quicker disposal of work and higher productivity.

2013-14 Administrative Expenses

2. Foreign Trade and Export Promotion

Trade Commissioners

The Commercial Offices abroad, provide the institutional framework and are meant to promote India’s trade and economic exchanges with the world. The provision is for establishment related expenses of these commercial offices.

0.00 121.35 0.00 2013-14 Administrative expense

Directorate General of Foreign Trade

Administrative expenditure of the head quarter of the O/o DGFT and its 32 regional offices

0.00 95.40 0.00 FY 2013-14

Administrative expense

Total(Foreign Trade & Export Promotion)=

0.00 216.75 0.00

3. Assistance for Export

32

Promotion and Market Development

Export Subsidy (Duty Draw Back/DBK/CST)

0.00 1300.00 0.00

Interest Subsidy to Banks

0.00 1200.00 0.00

Grant in aid to Export Promotion and Market Development Organisations

P 0.00 50.00 0.00

Total(Assistance for Export Promotion and Market Development)=

0.00 2550.00 0.00

4. Development of Free Trade/Export Processing Zones/Special Economic Zones

Kandla SEZ To provide a duty free environment for export promotion.

0.00 9.55 0.00 As on 31st Dec., 2012

direct employment in the SEZ sector is estimated at 10,19,146 persons and investment is estimated at Rs. 2,38,990.18 crore, 154 SEZs have commenced export and exports from the SEZs were of the order of Rs. 3,53,194,90 crore in the current year, i.e, 2012-13(up to 31

st Dec., 2012)

15 new units are expected to be added this increasing the potential of exports over Rs. 1500 lakh

Electronics (SEEPZ) SEZ

0.00 8.10 0.00

Falta 0.00 4.30 0.00

Chennai 0.00 6.65 0.00

Cochin SEZ 0.00 6.80 0.00

NOIDA SEZ 0.00 8.25 0.00

Visakhapatnam SEZ 0.00 6.80 0.00

Indore SEZ 0.00 1.60 0.00

Jaipur SEZ 0.00 0.63 0.00

Manikanchan SEZ (Kolkata)

0.00 0.73 0.00

Moradabad SEZ 0.00 0.40 0.00

Mahamumbai SEZ 0.00 0.57 0.00

33

Jodhpur ZEZ 0.00 0.50 0.00

Surat SEZ 0.00 0.48 0.00

Investment in ECGC 100.00 0.00 0.00

National Export Insurance Account

30.00 0.00 0.00

. Total(Development of Free Trade/Export Processing Zones/Special Economic Zones)=

130.00 55.36 0.00

5. Agricultural and Processes Food Products Export Development Authority

Develop and promote the export of agro products, provide financial assistance to the exporters under schemes Market Development, Infrastructure Development, Quality Development and Transport Assistance

180.00 1.00 0.00 Plan to set up approx. 20 common pack-house and 4 projects of Common Infrastructure facilities in PPP Mode(New Components) Centers for Perishable Cargo(CPC), 5 Transport Units facilities, 20 setting up of sheds for storage/grading, 7 mechanized handling facilities for sorting/grading, 4 pre-cooling facilities and 8 Integrated post harvest system/pack house. Participate in 20 international trade fairs all over the world , provide financial assistance to at least 191 exports for usage of packaging material , setting up/strengthening of labs for exports-20, up

The setting up and up gradation of infrastructure under the scheme will help in maintaining the quality of the produce for exports and also attain incremental export of the APEDA monitored products. Programmes under Market Development Schemes will help in achieving market access in new markets and increase exports of APEDA monitored products in the existing markets. Transport

Ongoing scheme

34

gradation/recognition of labs for export testing-12, organization seminars/group activities-5, and at least 335 exporters will be provided transport assistance.

Assistance will enhance competitiveness of our agro products by mitigating transaction/freight cost disadvantage in comparison to the competing countries.

6. Marine Products Export Development Authority

To promote marine products abroad, provide assistance for warehousing, transportation, slotting expenses in retail outlets in abroad market, publicity & advertisement of marine products, extend assistance to deep sea/merchandised fishing vessels to tuna long liners, installation GPS/ Fish finder/Radio telephone on board vessels(new), provide assistance for better preservation of catch, promote overseas delegation visits, buyer seller meets, invitation of overseas buyers/experts.

115.00 5.00 0.00 Promotion of value added fish and fishery products, process, increase acceptance of Indian seafood in overseas markets, help to resolve the trade issues like tariff and non tariff barriers and trade disputes

7. Other Schemes of Foreign Trade and Export Promotion

. Directorate General of Commercial Intelligence and Statistics

Compilation & Dissemination of Trade Statistics(Non Plan)

3.00 25.74 0.00 Compilation and dissemination of foreign trade data through monthly,

35

quarterly and annual publications; meeting the day to day expenses for smooth functioning of the office of DGCI&S

8. Export Promotion Quality Control and Inspection

Export Inspection Councils

Computerization of the activities of the organization with a view to bring about transparency and efficiency, modernization of the organisation in terms of latest office automation, equipment & facilities, Upgradation of the labs of EIC/EIAs with state of the art equipment as per requirements of the importing country.

8.00 0.00 0.00 Effective, efficient and transparent system having client interface. Reliable information dissemination in r/o quality and other related issues of India’s trading partners. Reliable and credible test results and analysis meeting requirement of the trading partners.

Ongoing process. Target envisaged likely to be met by March, 2014.

Market Access Initiatives

180.00 0.00 0.00

Centre for WTO Studies

To develop the centre as an expert body for providing inputs on various trade policy issues. To provide institutional mechanism for coordination domestic stakeholders consultations To Develop the centre for training activities To conduct research in frontier areas of concern for India in sphere of International Trade

8.00 0.00 0.00 Physical deliverables are not quantifiable as the outlay is need based.

36

9. Trade Remedies and Trade Defence

0.00 9.50 0.00

10.

Assistance to Institutions

IIFT Full fledged campus at Kolkata especially for imparting training/capacity building for MBA aspirants all over India and

60.00 0.00 0.00 Construction of IIFT, Kolkata campus with residential facility for faculty and staff, hostel for students and library/IT and and modern facilities for students.

Capacity building of larger number of students in international business , Research studies and Management Development programmes will be conducted in large numbers

July, 2013 Subject to inherent technological limitations/ constraints in achieving projected outputs in cost effective and timely manner and release of grant by DoC

IIP Meeting requirement of industries by introducing state of the art testing equipments, library books & IT equipments, setting of NER Regional Centre for the benefit of fresh & Processed food industries. Expansion of Food Packaging lab facilities at Delhi to serve the industries.

3.00 0.00 0.00 Upgradation of infrastructural facilities at all centres of IIP including laboratory, Training, library, consultancy & projects & R&D Division.

continuous

FDDI 0.00 0.00 0.00

IIPM 0.00 0.00 0.00

Total (Assistance to Institutions)=

63.00 0.00 0.00

11.

Modernization Up gradation

Sectt.-Economic Services

Modernization and Up gradation of Department of Commerce

4.00 0.00 0.00 e-Governance Project implemented in the Department w.e.f. April, 2011 with the

Similar activities relating to computerization and other

37

help of TCS at a total project cost of Rs. 15.75 crore (including 5 years AMC)leading to less paper office, electronic movement of files and complete e-filing system, Computerization and LAN up gradation have been made.

modernization works of the Department are to be carried out during the 12 th Plan Period.

DGFT Making DGFT a paperless Organization to reduce transaction cost and time, seamless electronic Data Interchange with its community partners, introduction of digital signatures in its operations, issuance and implementation of paperless licenses

10.00 0.00 0.00 No Quantification can be made, with the ongoing computerization. We would be able to process applications online which will lead to more transparent decision making and reduce transaction cost to the exporting community. The achievable results can only be gauged in terms of intangible outcomes. As on date Advance Authorization, DFIA and EPCG Scheme is completely online. The message exchange between DGFT and Customs for Advance Authorization, DFIA and EPCG licenses has been implemented for all EDI Ports for

Software Development of new schemes.

Digital certification of documents.

Restructuring and improvisation of website of DGFT and all RAs.

Acquisition of additional bandwidths (leased lines/ Broadband)

Modern Workstations

FY 2013-14

38

authorizations issues after 1.4.2009.

DGCI&S Construction of Meeting Hall, Digitization of rare documents, Retro conversion, survey of service sector trade, strengthening of IT infrastructure, training of officers, compilation of data on inter-state movement of goods by road etc.

3.00 0.00 0.00 1) Construction of Meeting Hall: Super structure, internal electrification, etc. 2)Digitization of rare books & document of Commercial Library 3) Updation of frame & conduct of surveys in health and other sectors. 4) Development of software for technical and administrative work. 5) Compilation of inter-state trade data.

Computerization in DGS&D

25.00 0.00 0.00 A computerized system has been developed in house with NIC providing e-support in developing software modules. In the initial phases, e-tendering was out sourced through a third party, acting as ASP, on PPP mode. However, after expiry of third party ASP contract for e- tendering services, e tendering module has been developed in house with the e support of NIC. The

39

newly developed module is fully operational and all tenders of generalized items, with tender opening date on or after 15.11.2011 are mandatorily invited online.

ITSC/Hostel of FDDI Noida/Fursatanj

To ensure the international standards of training and facility with adequate IT infrastructure and hygienic, safe and conducive environment and residential facility to accommodate increased capacity of meritorious outstation students from all over country. Upgradation of FDDI branch at Fursatganj equipped with state of art machineries and world class infrastructure

0.00 0.00 0.00 Effective delivery of training at par with international standards and preparation of students of various disciplines to meet the challenges of industry and make them excel efficiently across globe through comprehensive campus wide wireless network system and adequate IT infrastructure. FDDI, Fursatganj branch is presently conducting three UG and two PG courses.

Overall grooming of the students by providing safe, secure and hygienic, cost effective residential in campus facility for meritorious students from all over country.

Activities completed and the campus fully functional.

FDDI Jodhpur FDDI is setting up its branch at Jodhpur with state of the art machineries, equipments and world class infrastructure. The campus will be able to cater the increasing demand of the industry. This will also support and strengthen the initiative of Govt. of

0.00 0.00 0.00 The construction work is in full swing. Tendering process for procurement of machineries & equipments has already been completed. The administration process of students for UG &

By the middle of next financial year the branch would be ready to run the courses in its premises.

40

Rajasthan to promote industrial growth of the state.

PG programme is being initiated along with other branches.

Total(Modernization Up gradation)=

12.

Contributions to International Organisations

0.00 32.00 0.00 Released annual contribution for GSTP for 2012-13 US$ 15000.

13.

International Conferences

0.00 0.50 0.00

14.

Scheme for Central Assistance to the States for developing infrastructure and other allied activities(ASIDE)

The objective of the scheme is to involve States/UTs in export infrastructure development and finally achieve higher export growth.

640.00 0.00 0.00 Every export infrastructure project carries number of social objectives with like employment generation, growth in per-capital income, growth in human development index, increase in connectivity etc. Hence is not possible to quantify the achievement of objectives by individual project.

NER under ASIDE 100.00 0.00 0.00

SCSP under ASIDE 60.00 0.00 0.00

Total(ASIDE)= 800.00 0.00 0.00

Jem & Jewellery Sector

15.

Convention centre in Mumbai

0.01 0.00 0.00

16.

Common Facility Centre

0.48 0.00 0.00

17.

Gem bourse in Jaipur 0.48 0.00 0.00

18.

Gems and Jewellery Park in Mumbai

0.01 0.00 0.00

41

19.

Jewellery Sector 0.02 0.00 0.00

Total(Jewellery Sector)= 1.00 0.00 0.00

Leather and Leather product Sector

20.

New Branches of FDDI

108.50 0.00 0.00

21.

Networking Centre(FDDI CNC)

1.00 0.00 0.00

22.

Creation of Venture Capital Fund for corporisation of leather sector- creation of seed fund

0.50 0.00 0.00

Total(Leather & Leather Products Sector)=

110.00 0.00 0.00

Pharma Sector

23.

Venture Capital Fund 0.00 0.00 0.00

24.

Boisimilar/ Bioequivalent studies

0.01 0.00 0.00

Total(Pharma Sector)= 0.01 0.00 0.00

25.

Others 0.00 1.40 0.00

26.

Tea

Programme Component

Increase production, improve quality and value addition and change the product mix for producing more orthodox teas, increase domestic consumption & export of Indian tea by supporting the exporter in their marketing endeavour, extend support to the Tea Research Institutes, encourage small

114.00 39.00 0.00 Production 1080 mkg Export 218 mkg, Extension Planting 1000 ha, Replanting/ replacement planting 7000 ha, Rejuvenation 1000 ha, Irrigation 2000 ha , New Planting 1000 ha, SAGs of small growers 75 nos.,

Increase in production and productivity, quality improvement, better price realization, awareness generation of origin specific teas like Assam, Darjeeling,

12th Plan

(2012-17)

Small Growers Development Scheme

5.00 0.00 0.00

Implementation of regulatory provision of Tea Act including e-auction and allied activities

1.00 0.00 0.00

Lump sum provision for projects/schemes for the benefit of

50.00 0.00 0.00

42

North Eastern region and Sikkim

tea growers in collectivization and formation SHGs, providing incentives to exports under transport subsidy, supporting welfare measures for the benefit of tea garden workers

Kangra & Nilgiri, increase trade activities, creation of visibility of Indian brands overseas, increase in exports.

SCSP 20.00 0.00 0.00

Total(Tea)= 190.00 39.00 0.00

27.

Coffee

Coffee Board To achieve sustainability in Indian coffee production through R&D support, Transfer of Technology through extension centers. Extend development support for re plantation, water augmentation, quality up gradation & pollution abatement measures.

87.00 39.80 0.00 Research support in the form of providing high yielding, disease tolerant plant material, pest, disease management, transfer of technology from lab to land by the extension centers, providing financial support to the coffee growers

Production target: 334800 MT(P), Estate visists-20000 nos. re plantation/ expansion – 5500 ha, expansion/ consolidation – 550 Ha

2013-14 of XII Plan Period

Adverse Weather conditions, outbreak of pest & disease due to climatic changes

Lump sum provision for projects/schemes for the benefit of North Eastern region and Sikkim

To undertake coffee development related activities to improve production and productivity in North Eastern Region Development Programmes in nontraditional area.

23.00 0.00 0.00 Providing financial support to the growers for coffee development and infrastructure facilities for improving production productivity and quality of coffee.

Expansion/ Consolidation on – 550 Ha. Quality Up gradation – 365 Units

2013-14 of XII Plan Period

Investment capacity and quantum of support

SCSP 5.00 0.00 0.00

Total(Coffee)= 115.00 39.80 0.00

28.

Rubber

Programme Component

To increase natural rubber production, productivity,

120.00 37.50 10.00 Planting 7000 ha Tribal settlement 75 ha,

Increase in rubber

2013-14

43

enhancement, promotion of extension activities, etc.

generation of quality planting materials 7 lakh nos., farmer education programmes & field training – 10000 participants, apiculture – 2500 nos. irrigation: 100 ha, boundary protection 150 ha

production through expansion of cultivation, replanting, uneconomic holdings and promoting the adoption of productivity enhancing agronomic practices

Statistical Information Services and e-Governance

0.01 0.00 0.00

Nirayat Bandhu Scheme

1.00 0.00 0.00

Office/Residential Building

2.97 0.00 0.00

Training /Capacity Building

1.00 0.00 0.00

IIP 0.01 0.00 0.00

Lump sum provision for projects/schemes for the benefit of North Eastern region and Sikkim

40.00 0.00 0.00

SCSP 10.00 0.00 0.00

Total(Rubber)= 174.92 37.50 0.00

29.

Spices

Spices Board Increase production and productivity of cardamom, quality of produce, export of spices, Trade promotion, development of spices in NE, post harvest

90.00 9.35 0.00 Export : 622000 tons (value Rs. 9800 cr.), Replantation (1820 ha) Irrigation & land development (720 ha), Replanting 500 ha,

Overall production development of cardamom, post harvest & quality improvement of

2013-14

Lump sum provision for projects/schemes for the benefit of North Eastern region and Sikkim

10.00 0.00 0.00

44

SCSP improvement of spices, organic cultivation of spices, extension of advisory service, replantation & rejuvenation of pepper in wayanand district of Kerala and NE states, marketing services, publicity & public relations , improvement of skill.

5.00 0.00 0.00 New planting 400 ha, organic seed bank 20 ha, establishment of export oriented processing units 3 nos., , 50000 sample analysis, quality improvement training (40000 persons)

spices, increase in export of spices, post harvest quality improvement, capture and expand business opportunities, introduction of new end products.

Total(Spices)= 105.00 0.00 0.00

30..

Cashew Export Promotion Council

Identification of new buyers, markets, understanding latest market trends/requirements, creating awareness about the industry, availability, capacity to deliver, quality standard, Market scenario, interaction with buyers and sellers and thereby promoting exports.

1.00 0.00 0.00

31.

Other Schemes of Plantations

PSFT To provide relief to small growers when the prices of coffee, tea, rubber and tobacco fall below a specified level, without resorting to the practice of procurement operations by Government agencies.

0.00 0.10 0.00 As on 31.12.2012, 46243 growers have enrolled under the scheme, cumulative committed financial assistance under the scheme stood at Rs 6.22 crore

PSF Scheme payout – 29186 growers, Modified PAIS – 57.17 lakh growers/workers

2013--14

Crop Insurance 0.00 0.00 0.00

Total(Other Schemes of Plantations)=

0.00 0.00 0.00

33..

Supplies & Disposals

45

DGS&D This Directorate is for finalization of Rate Contracts for common user items, procurement, inspection, shipment and clearance of stores. The provision is for administrative expenditure of the DGS&D and its regional offices

0.00 81.50 0.00 Administrative expenses

Grand Total (Grant No11)= 2226.00 3165.00 0.00

46

CHAPTER III

REFORM MEASURES AND POLICY INITIATIVES

Policy making is a dynamic and continuous process involving necessary

periodic interventions with a view to achieving the stated objectives and to fulfill the

desired goals. Sustained accelerated growth of exports and trade is the primary goal

being followed by the Department of Commerce. Since global economic outlook is a

major determinant of export performance of any country. Export growth cannot,

therefore, be viewed in isolation from economic outlook in the world economy.

Department of Commerce endeavors for doubling merchandise exports in three

years from US $ 251.14 billion in 2010-11 to US $ 500 billion in 2013-14. Exports

are envisaged to increase at compounded average growth of 26.7% per annum. The

shares of top five Principal Commodity Groups in India’s total exports during 2012-

13 (April-December) are Petroleum (Crude & Products) 10.9%, Gems & Jewellery

14.8%, Transport Equipments 6.3%, Machinery and Instruments 5.2%, Drugs,

Pharmcutes & Fine Chemicals 5.1% & Others 49.8%.In consonance with the

Government’s vision of making India a major player in the world trade, the Foreign

Trade Policy (FTP) is announced every five years that provides the basic policy

framework of translating this vision into specific strategies, goals and targets and

since has been reviewed on 13.10.2011 in order to boost and expand the export and

the following initiatives has been taken:

The objectives of the Foreign Trade Policy (FTP), 2004-09 was doubling of

India’s share in global trade in the next five years and making trade an effective

instrument of economic growth by giving a thrust to employment generation. The

Policy, with clearly enunciated objectives and strategies and necessary initiatives

taken by the Government during the last five years, has been very effective in

putting India’s exports on a higher growth trajectory. The Indian exports grew from

US$ 83.5 billion in 2004-05 to US$ 185.3 billion in 2008-09, registering an average

annual growth rate of about 24%. As far as giving special thrust to employment

generation is concerned, sectors with significant export potential coupled with

employment generation in semi-urban and rural areas were identified and specific

sectoral strategies were prepared.

The Foreign Trade Policy (FTP), 2009-14 was announced by the Government

on 27th August, 2009. The new Policy was unveiled in the backdrop of

unprecedented economic slow-down and one of the most severe global recessions

in the post-war period that affected countries across the globe in varying degrees.

The short term objective of FTP (2009-14) is to arrest and reverse the declining

trend of exports and to provide additional support especially to those sectors which

47

have been hit badly by recession in the developed world. The Policy also aims to

achieve an annual export growth of 15% with an annual export target of US$ 200

billion by March, 2011.

The medium/long term objectives of the Policy include:

(i) Achieving an export growth of about 25% per annum in the remaining

three years of the FTP (2009-14).

(ii) Doubling of India’s exports of goods and services by 2014.

(iii) Doubling of India’s share in global trade by 2020.

Trade Policy Measures taken by the Government in 2009-10 and 2010-11

focused on reviving exports and exports related employment. Many measures

were undertaken at the time of release of the FTP, 2009-14, announcements

made in January / March, 2010 and in the Annual Supplement to FTP released

in August, 2010.

Additional measures were taken on 11.2.2011 to help the exports sector in

general and the employment intensive sectors effected by the World recession,

in particular. Export incentives were announced for more than 600 products (in

respect of their exports with effect from 1/1/2011) in labour intensive and / or

technology intensive sectors like agriculture, chemicals, carpets, engineering,

electronics and plastics to enhance their competitiveness.

Some of these measures undertaken in the FTP, 2009-14 are given in Box 3.1.

Box 3.1

Trade Policy Measures taken under Foreign Trade Policy 2009-14

and thereafter

A. Market and product diversification and expansion of markets:

I. Measures undertaken in FTP 2009-14, January / March, 2010 and in Annual

Supplement, 2010-11:

27 new markets added under Focus Market Scheme (FMS) with incentive

of duty credit scrip @ 3% of exports.

Market Linked Focus Product Scheme (MLFPS) with incentive of duty

credit scrip @ 2%, has been significantly broadened by inclusion of a

large number of products linked to their markets.

48

Full Africa, Latin America and large part of Oceania covered under FMS &

MLFPS (13 countries added in MLFPS at the time of release of FTP,

2009-14 in August, 2009 and 2 countries added in January, 2010).

The incentive available under FMS has been raised from 2.5% to 3%; and

for Focus Product Scheme (FPS) & MLFPS from 1.25% to 2%; and

Special Focus Products Scheme @ 5%.

Additional benefit of 2% bonus, over and above the existing benefits of

5% / 2% under FPS, allowed for about 135 existing products, which had

suffered due to recession in exports. Major sectors include all Handicrafts

items, Silk Carpets, Toys and Sports Goods (all of which were earlier

eligible for 5% benefits), Leather Products and Leather Footwear,

Handloom Products and some of the Engineering Items including Bicycle

parts and Grinding Media Balls (all of which were earlier eligible for 2%

benefit).

256 new products added under FPS (at 8 digit level), which became

entitled for benefits @ 2% of FOB value of exports to all markets. Major

Sectors / Product Groups covered are Engineering, Electronics, Rubber &

Rubber Products, Other Oil Meals, Finished Leather, Packaged Coconut

Water and Coconut Shell worked items.

Instant Tea and CSNL Cardinol included for benefits under Vishesh Krishi

and Gram Udyog Yojana (VKGUY) @ 5% of FOB value of exports.

Nearly 300 products (at 8 digit level) from the readymade garment sector

incentivised under MLFPS for further 6 months from October, 2010 to

March, 2011 for exports to 27 EU countries.

II. Additional measures announced on 11th February, 2011:

Under Market Linked Focus Product Scheme (MLFPS):-

1. 335 New Products incentivised under MLFPS at 8 digit level, eligible

for benefits @ 2% of FOB value of exports to 15 specified markets like

Agricultural Tractors of more than 1800 cc, all inorganic chemicals and

inorganic / organic compounds of metals, Flexible Intermediate Bulk

Containers and Narrow Woven Fabrics;

2. 71 new products of Chapter 63 (Textile Made ups) at 8 digit level for

exports to EU (27 Countries).

Under Focus Product Scheme (FPS):-

1. 147 products incentivized for Bonus Benefits (additional 2%) under

FPS at 8 digit level, henceforth eligible for benefits @ 4% or 7% of

49

FOB value of exports to all markets. These includes Engineering

items, Electronic items, Stationery items, Handmade carpets and other

Floor Coverings under Chapter 57 (7%);

2. 57 New products incentivized under FPS at 8 digit level, eligible for

benefits @ 2% of FOB value of exports to all markets. These include

products from Sectors viz. Engineering, Chemical, paper products etc.

Under Special Focus Products Scheme (SFPS), Egg powder included for

benefit @ 5% of FOB value of exports.

Under Vishesh Krishi and Gram Udyog Yojana (VKGUY), 6 New products

(Castor Oil Meal – Defatted Variety and Instant Coffee) incentivised under

VKGUY at 8 digit level, eligible for benefits @ 5% of FOB value of exports

to all markets.

B. Support for Technological up-gradation

Zero duty Export Promotion Capital Goods (EPCG) scheme and Status

Holder Incentive Scrip (SHIS) scheme introduced in 2009 for limited

sectors and valid for only 2 years initially, extended by one more year till

31.3.2012 and the benefit of the scheme expanded to additional sectors.

3 Additional Towns of Export Excellence (TEEs) announced, bringing the

list upto 24.

C. Availability of concessional Export Credit:

Interest subvention of 2 per cent extended upto March 2011 for certain

labour-intensive sectors of exports namely handloom, handicrafts, carpet,

SMEs and a few products from the sectors namely engineering, textiles,

leather and jute.

Interest rates on export credit in foreign currency reduced to LIBOR + 200

basis points in February 2010 from the earlier LIBOR+350 basis points.

D. EOUs / STPIs:

Section 10A and 10B (Sunset clauses for STPI and EOU schemes

respectively), extended for the financial year 2010-2011. Anomaly

removed in Section 10AA relating to taxation benefit of ‘unit vis-à-vis

assessee’.

E. Services:

FTP also provided fillip to services sector (Hotels) by doubling duty free

entitlement under Served from India Scheme (SFIS) from 5% to 10% of

foreign exchange earnings.

F. Others:

Duty Entitlement Passbook (DEPB) scheme extended beyond 31.12.2010

till 30.06.2011.

Time period of export realization for non-status holder exporters increased

to 12 months, at par with the Status holders. This facility has been

extended upto 31.3.2011.

50

Advance Authorization for Annual Requirement now exempted from

payment of Anti-dumping & Safeguard duty. The Scheme has been made

more flexible for import of required inputs.

Value limit on duty free import of commercial samples enhanced from Rs.

1 lakh to Rs. 3 lakh per annum.

DEPB and Freely Transferable Incentive Schemes provisionally allowed

without awaiting receipt of Bank Realisation Certificate (BRC).

Export Obligation Period under Advance Authorization Scheme enhanced

from 24 months to 36 months without payment of composition fee.

To facilitate tracing and tracking of pharmaceutical products and hence to

provide assurance about the quality of Indian pharma products to

prospective importers, requirement of affixing bar codes has been made

mandatory w.e.f. 01.07.11.

A new facility of Input combination for pharma products manufactured

trough Non-Infringing process, allowing actual quantum of duty free inputs

required for manufacturing such export product, has been introduced.

This will facilitate pharma manufacturers to work towards getting a major

share of exports of such products to potential regulated markets such as

US or EU.

Facilitation of Trade through various Electronic Data Interchange (EDI)

initiatives taken on online message exchange facility.

Additional facility of filing “online” application for obtaining IEC introduced.

Measures announces in the Annual Supplement to FTP on 5th June, 2012

7 new markets have been added to Focus Market Scheme (FMS). These

countries are Algeria, Aruba, Austria, Cambodia, Myanmar, Netherland

Antilles, and Ukraine.

7 new markets have been added to the Special Focus Market Scheme

(Special FMs). These countries are Belize, Chile, El Salvador, Gautemala,

Honduras, Morocco, and Uruguay.

46 new items have been added to Market Linked Focus Product Scheme

(MLFPS). This has the effect of including 12 new markets for the first time.

100 new items have been added to the Focus Product Scheme (FPS) list.

3 new items have been added to VKGUY. These are roasted cashew kernel,

and protein concentrates & textured protein substances.

3 new towns have been declared as Towns of Export Excellence (TEE).

These are Ahemedabad (Textiles, Kolhapur(Textiles), and Saharanpur

(Handicrafts).

Export of specified products through notified Land Customs Stations of North

Eastern Region has been provided additional incentive to the extent of 1% of

51

FOB value of exports. This benefit is in addition to any other benefit that may

be available under Foreign Trade Policy in respect of these exports.

Now Duty Credit Scripts shall be permitted to be utilized for payment of

Excise Duty for domestic procurement. Earlier only scrips under SFIS

were so permitted for procurement of goods from domestic market so as to

encourage manufacturing, value addition and employment. This will be an

important measure for import substitution and will help in saving of foreign

exchange in addition to creating additional employment.

It is now decided that up to 10% of the value of Status Holders Incentive

Scrip (SHIS) will be allowed to be utilized to import components and

spares of capital goods imported earlier. Since a status holder may or

may not have manufacturing facility, it is now decided to allow limited

transferablility of SHIS script. However, such Transferee shall have to (a)

be a status holder and (b) have manufacturing facility.

Now agri. Infra scrips will be eligible for import of 14 specified equipments for

setting up of Pack-houses.

Measures announced as Trade Facilitation measures by widening and deepening of export incentives under Chapter 3 of FTP in December, 2012 to be made effective from 01.01.2013.

5 new markets have been added to Focus Market Scheme (FMS). These countries are Cayman Islands, New Zealand, Latvia, Lithuania and Bulgaria.

One new market i.e. Eritrea have been added to the Special Focus Market Scheme (Special FMS).

62 new items have been added to Market Linked Focus Product Scheme (MLFPS).

102 new items have been added to the Focus Product Scheme (FPS) list.

Additional Incentives

2% Interest Subvention Scheme was earlier available only to Handloom,

Handicrafts, SMEs and Carpets. In June, 2012, it had been extended to

labour intensive sectors, namely, Toys, sports goods.

Further, the scheme has been widened to include 134 sub sectors of

Engineering Sector w.e.f. 1st January, 2013. The validity of the scheme has

been extended till March 31, 2013.

Incremental Exports Incentivisation Scheme has been announced. Incentive

will be admissible only if the IEC holder has achieved growth in the financial

year 2012-13 vis a vis financial year 2011-12. The policy pertaining to

Incremental Export Incentive Scheme is given in para 3.14.4 of FTP and

procedure is as per Para 3.8.3 in the Handbook of Procedures Vol.I.

52

Task Force on Transaction Cost

The Department of Commerce had constituted a Task Force on Transaction

Cost with a mandate to identify and suggest ways to achieve significant

improvement in efficiency of our export processes. The Task Force had a broad

based composition with representatives of FICCI, FIEO & CII in addition to

Government officials. The Task Force chose to adopt a quantitative approach so

that important issues and initiatives could be objectively prioritized. As per World

Bank doing business report, the magnitude of Transaction Cost ranges between 7

– 10% of the total exports. This comprises of infrastructural as well as procedural

inefficiencies. Accordingly, the addressable transaction cost is estimated to be

around US 6 – 7 billion.

The Task Force had identified 44 issues across 7 line Ministries viz.

Agriculture, Commerce, Finance, Civil Aviation, Railways, Shipping and

Environment for action. Extensive consultations were taken up with concerned

Ministries and after this 21 issues have been implemented and another 2 issues are

going to be implemented in next couple of months. Implementation of these 23

issues is likely to mitigate transaction cost by approximately Rs. 2100 crores in

perpetuity. The report of the Task Force is an example of our Government’s action

–oriented approach to problem solving. Each recommendation is specific and in

respect of many recommendations necessary Government orders have already

been issued on the day of release of the Report.

Box: 3.2

Policy Announcements on 11th February, 2011

On 11th February 2011 export incentives were announced for more than 600

products (in respect of their exports with effect from 1/1/2011) in labour intensive

and/or technology intensive sectors like agriculture, chemicals, carpets,

engineering, electronics and plastics to enhance their competitiveness. The

salient features of these incentives and the measures to simplify procedures are

given below.

Export Incentives

Market Linked Focus Product Scheme (MLFPS)

335 New Products under MLFPS at 8 digit level eligible for benefits @ 2% of FOB

value of exports to 15 specified markets (Algeria, Egypt, Kenya, Nigeria,

Tanzania, South Africa, Ukraine, Mexico, Brazil, Australia, New Zealand,

53

Cambodia, Vietnam, China and Japan). Some examples are Agricultural Tractors

of more than 1800 cc; all inorganic chemicals and inorganic/organic compounds

of metals of Chapter 28; Flexible Intermediate Bulk Containers; and Narrow

Woven Fabrics.

71 new products of Chapter 63 (Textile Made ups at 8 digit level) for exports to

EU (27 Countries) under MLFPS for benefits @ 2% of FOB value of exports.

Focus Product Scheme (FPS)

147 products for Bonus Benefits (additional 2%: thus total benefit 4 % or 7 %)

under FPS at 8 digit level for export to all markets. Some examples are:

Engineering Items like Galvanized Flanges on Iron and Steel, Threaded Nuts

(7%); Ferro & Silico Manganese; Electronic Items like co-axial cables and other

co-axial electric conductors, Watches; Stationery items like Pencils, Pens; Textile

Items like Silk (of Chapter 50), Grey Rayon Tyre Cord Fabric, and Handmade

Carpets and other Floor Coverings under Chapter 57 (7%).

57 New products under FPS at 8 digit level eligible for benefits @ 2% of FOB

value of exports to all markets.

Special Focus Products: 1 product (Egg powder) under Special Focus Product at

8 digit level eligible for benefits @ 5% of FOB value of exports to all markets.

Vishesh Krishi and Gram Udyog Yojana (VKGUY):

6 New products (Castor Oil Meal – Defatted Variety and Instant Coffee) under

VKGUY at 8 digit level, eligible for benefits @ 5% of FOB value of exports to all

markets.

Procedural Simplifications

The report of the Task Force on transaction costs has been released by Hon’ble

Finance Minister on the 8th February 2011. Action on 23 issues by different line

ministries is likely to reduce transaction cost to the tune of Rs. 2100 crores in

perpetuity.

In order to make filing and issuance of IE Code hassle free with minimum human

interface between the applicant and the Regional Offices, an additional facility of

filing “on-line” application for obtaining IEC is being introduced.

The scope of Advance authorization for Annual Requirement is being enlarged to

allow a maximum of five authorizations in a licensing year (instead of only one at

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present) for the product(s) falling within the same product group.

Technical characteristics / quality etc of certain specified items of imports shall be

required to be declared at the time of clearance of import consignment and not at

the time of filing application (current stipulation) for annual advance authorization

to Regional authority. By this facility, the exporter shall have the flexibility to

import the relevant inputs, without the need to approach the Regional authority of

DGFT to amend the authorization for clearance of such consignment.

The period to fulfill the export obligation under advance authorization scheme 36

months from the date of issuance of the authorization. However this period is

shorter for products being manufactured from certain duty free imported inputs,

which are sensitive from domestic angle. In such cases, the period for fulfillment

of export obligation is presently counted from the date of clearance of first import

consignment even when a number of consignments have been cleared in

different dates. Henceforth, with a view to provide greater flexibility, Export

obligation period in such shorter EO period cases of advance authorizations shall

be counted from the date of clearance of each consignment and not the first

consignment. This will allow a more reasonable time period for EO fulfillment to

exporters.

Improving Quality and deepening market access

Initiatives for pharma sector are as under:

Exporters of pharmaceutical products will be required to affix barcodes on their

export products, with effect from 1st July 2011, as per GS 1 global standards, to

facilitate tracing and tracking of their products. This will provide assurance about

the quality of Indian pharma products to prospective importers.

We are providing a new facility of Input combination for pharma products

manufactured through Non-Infringing process, allowing actual quantum of duty

free inputs required for manufacturing such export product. This will facilitate our

pharma manufacturers to work towards getting a major share of exports of such

products to potential regulated markets such as US or EU.

Trends in Authorisations

Trends of authorizations issued under Export promotion & duty neutralization

schemes of Foreign Trade Policy during the period April, 2012- Nov., 2012 are

indicated below. During the period April 2012–Nov., 2012, a total of 1, 27,726

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authorisations having CIF/Duty credit value of Rs.1, 95,531 Crore and FOB/Export

Obligation of Rs. 4, 78,622 Crore have been issued. This represents a decrease of

28.89% in number, 3.07% increase in CIF/Duty credit value and decreasing 22.9%

in FOB value/EO over the corresponding period of last year.

Some of the major policy initiatives undertaken by the Department during the

year are given below:

a) Exports of all Garments under Chapters 61 and Chapter 62 of ITCHS

Classification of Export and Import incentivized under the Market Linked

Focus Product Scheme (MLFPS), for duty credit scrip @ 2% of FOB value of

exports to USA and European Union from 1.4.2011 to 31.3.2012.

b) Special Bonus Benefit Scheme has been announced to provide duty credit

script @ 1% of FOB value of exports from 1.10.2011 till 31.3.2012 covering

49 products in Engineering, Pharmaceutical and Chemical sectors

c) Special Focus Market Scheme (SFMS) has been announced to provide

additional duty credit script @ 1% of FOB valued of exports to 41 markets

under FMS from 1.4.2011.

d) 130 additional items mostly from Ch Chemical/Pharmaceuticals, Textiles,

Handicrafts, Engineering and Electronics sector included in Focus Product

Scheme(FPS) for duty credit scrip @ 2% of FOB value of exports with effect

from 1.4.2011.

e) Market Linked Focus Product Scheme (MLFPS) has been extended to cover

new items to specified countries for duty credit scrip @ 2% of FOB value of

exports with effect from 1.4.2011.

f) The Status Holders Incentive Scrip (SHIS) scheme has been extended for

2012-2013 also.

Exporters of pharmaceutical products have been mandated to affix bar codes

on their export products w.e.f. 1st October, 2011 on the tertiary packs as per GS 1

global standards, to facilitate tracing and tracking of their products. This will provide

assurance about the quality of Indian pharma products to prospective importers as

also prove the Made in India products in case of any dispute.

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A new facility of Input combination for pharma products manufactured through Non-

Infringing process has been given viz., allowing actual quantum of duty free inputs

required for manufacturing such export product. This will facilitate our pharma

manufacturers to work towards getting a major share of exports of such products to

potential regulated markets such as US, EU and other markets.

I. National Export Insurance Account (NEIA)

A separate Fund with an approved corpus of Rs. 2, 000 crore called the

National Export Insurance Account (NEIA) was set up in 2006, out of which Rs. 916

crores have been funded by the Government so far. During the year 2012-13, Rs.

30 crores allocated for NEIA has been released.

The objectives of NEIA is to promote project export from India, which may not

take place but for the support of a credit risk insurance cover which the ECGC is not

in a position to provide because of its own underwriting capacity. The NEIA is

maintained and operated by a Public Trust set up jointly by the Department of

Commerce and ECGC.

NEIA guidelines have been revised to provide risk cover for buyer credits

which may be extended by EXIM Bank to overseas agencies. Under the revised

guidelines projects which are backed by sovereign guarantees will be covered for

100% of value, without recourse, to deserving exporters. Provisions have also been

made to cover the risks arising due to exchange and interest fluctuations.

II. Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme is a Plan Scheme formulated to

act as a catalyst to promote India’s exports on a sustained basis, based upon

‘Focus Product’ and ‘Focus Market’ concept. The Scheme was revised after a

thorough review and extensive consultation with all the stake holders in the year

2006 and the revised scheme was launched with effect from January, 2007. The

revised scheme embodies enhancement of scope of the scheme, increase in the

number of eligible agencies and increase in scale of assistance.

Under the scheme, assistance is extended to the Departments of Central

Government and organizations of Central/State Government, Export Promotion

Councils, Registered Trade Promotion organizations, Commodity Boards,

Recognized Apex Trade Bodies, Recognized Industrial Clusters and individual

Exporters for product registration and testing charges for engineering products

abroad, Indian Missions, National Level institutions like Indian Institutes of

Technology (IITs), Indian Institutes of Management (IIMs), National Institute of

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Fashion Technology (NIFT) etc., Research Institutions, Universities and recognized

laboratories.

The activities eligible for financial assistance under the Scheme are

Marketing Projects Abroad, Capacity Building, Support for Statutory Compliances,

Studies, Project Development etc.

Rs. 129.99 crore has been allocated during 2012-13 for MAI scheme. During

the year, financial assistance under MAI was provided to 158 projects/export

promotion events, etc. to eligible agencies which include export promotion councils,

trade promotion organizations, national level institutions, etc. The 12th Plan

allocation for the scheme is Rs. 820 crores.

III. Marketing Development Assistance (MDA) Scheme

To facilitate various measures being undertaken to stimulate and diversify the

country’s export trade, Marketing Development Assistance (MDA) Scheme is under

operation through the Department of Commerce.

The Non-Plan scheme supports the following activities:

(i) Assist exporters for their participation in approved EPC/Trade Promotion

Organizations led export promotion events abroad.

(ii) Assist Export Promotion Council (EPCs) to undertake export promotion

activities for their product(s) and commodities.

(iii) Assist approved organizations/ trade bodies in undertaking exclusive

nonrecurring innovative activities connected with export promotion efforts

for their members.

(iv) Assist Focus export promotion programmes in specific regions abroad like

FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2).

(iv) Residual essential activities connected with marketing promotion efforts

abroad.

IV. Initiatives in Plantation Sector

Plantation crops have been the traditional exports of India providing

employment to millions of workers. Ageing bushes/plants which result in low

productivity, high cost of production, low value addition, lack of strong buildup of

‘Brand India’ and volatility of international demand and prices are the major

constraints facing the sector. Some of the major initiatives undertaken in this sector

during the year to promote this sector include:

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A. TEA

Reform measures in Tea Sector:

1. Tea Plantation Development Scheme The main objective of the Tea Plantation Development Scheme is to

encourage the tea plantations in undertaking various field oriented developmental

measures aimed at increasing field productivity and decreasing cost of production.

In order to achieve these objectives, and given the high cost of production mainly

due to the labour cost accounting for more than 60% of the total cost of production

and high fluctuation in the tea prices, it has become necessary to continue the

scheme during XII Plan period for providing financial incentives in the form of

subsidy for a set of activities to be undertaken by the growers. When compared to XI

Plan scheme, the following changes have been proposed for the XII Plan period.

Extension Planting: Given in the imbalance in demand and supply,

extension planting was not encouraged during the previous two plan periods.

It was however allowed on a limited scale for small growers particularly in NE

Region and Hilly areas. During the course of last ten years while the overall

supply was around 130 million kgs the domestic demand was in the order of

170 million kgs leading to a gap of 40 million kgs. In order to bridge this gap it

is proposed to extend support for new planting by way of subsidy @ 25% of

the planting cost.

Irrigation: The irregularity in the monsoon (both in terms of lack of adequate

rainfall and prolonged dry period) is forcing the industry to invest on irrigation

infrastructure. Moreover, large scale replanting would bring large area under

young bushes. These young sections require irrigation much more than older

sections. Hence, irrigation should be a focus area for the XIIth Plan period.

Currently the irrigation subsidy being offered is 25% of the total expenditure

subject to a maximum of Rs. 10,000 per Ha. Moreover, the total expenditure

per garden is also capped at a maximum of Rs. 10 Lakhs. Considering the

current cost of creating irrigation facility – tube wells, check-dams, sprinklers,

drip irrigation etc (Estimated to be around Rs. 80,000 per ha), it is proposed

to offer subsidy @ 25% of the actual cost not exceeding Rs.80,000/ha and

raise the ceiling limit per garden to 200 ha.

Subsidy for Field Mechanization: Due to growing problem of labour scarcity

across the producing regions (more predominant in South India), the industry

needs to explore use of mechanization and use of new technology for

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activities that are traditionally undertaken manually. Accordingly, it is

proposed to incentivize use of following field mechanization equipment’s:

Mechanical harvesting equipment

Pruning machines

JCV machines

SPTF: Special Purpose Tea Fund was formulated for assisting the tea

gardens in undertaking replanting, replacement planting and rejuvenation of

old aged tea bushes so that the industry becomes more viable, competitive

and financially sustainable. During XI Plan, Tea Board through Special

Purpose Tea Fund (SPTF) tried to address this issue by extending a loan

component in addition to subsidy. However, the loan component has not

received adequate response. The performance of the scheme has been

critically reviewed by the CAG through a separate performance Audit and

recommended for adequate compensation of the crop loss due to uprooting.

Keeping this in view it is proposed to modify the existing scheme with

additional features as under:

Withdrawal of loan component

Revision of unit cost and revise the subsidy rate from 25% to 30%

Encourage gardens to have own nursery: Use of good quality planting

materials as prescribed by research institutions have a lasting impact on the

long term sustainability of the industry. In order to encourage tea gardens

establishing their own nurseries, it is proposed to advance 25% of the

subsidy up front out of the total subsidy payable under the scheme on

completion of replanting. The advance shall be adjusted against the subsidy

payable for replanting.

Relaxation of age limit for closed tea gardens: The subsidy is permitted

only for uprooting and replanting of the sections which are 50 years and

above. It is proposed to relax this age limit in the case of gardens that were

closed and abandoned for three consecutive years immediately prior to the

year of application. In case of such gardens, age would not be a factor for

sanction and release of subsidy provided TRA/ UPASI-TRF certifies

uprooting and replanting as the best option for revival of the concerned

section.

Tea Quality Up-gradation and Product Diversification Scheme (QUPDS) o The main objective of QUPDS is to serve as a catalyst for tea

factories/ blending/ packaging units to undertake investments in modern

technologies/ processes (either for expansion or for replacement), which

would eventually enable quality improvement, and higher realizations through

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the production of better quality/ value added teas. The important components

to be supported under the scheme would include:

Quality assurance certification – ISO/HACCP and Organic Tea Certification

Value Addition in packaging and blending units, Setting up of speciality Tea Units and Warehousing for Tea storage

Incentive for Orthodox / Green Tea production in order to increase production of exportable tea

2. Market Promotion Scheme

The project entails the following tea promotion activities to be conducted by

the Board on actual cost basis, which would be undertaken during the 12th plan

period. The above has dual objectives viz. (i) creating greater awareness &

knowledge about the regional varieties of teas in domestic as well as overseas

markets and (ii) increasing consumption of tea in the domestic market. Such active

promotion will highlight the health & wellness benefits of tea drinking as well as

reposition it as the lifestyle beverage so as to create awareness and a positive

disposition amongst the consumers, especially youth and thereby increase the

overall consumption of tea.

Domestic promotion

(i) Undertaking domestic campaign aimed at increasing per capita tea

consumption (PCC) in the states where PCC is low (average PCC is 0.73 kg

per annum in India at present)

(ii) Generic campaign in print & electronic media based on wellness benefits

& lifestyle aspects

(iii) Promotion of single-origin teas jointly with Tea Associations are proposed

to be undertaken in India through road shows, generic as well as specialty

tea campaign, protection and promotion of various intellectual properties of

the Board (Darjeeling GI, Assam (Orthodox) GI, Nilgiri (Orthodox) GI etc)

(iv) Viral advertising through established social networks like Twitter, Face

book for propagating the diversity & richness of Indian tea during domestic

promotion

Incentives to Exporters/Associations

(i) Transport subsidy for direct export of Tea from Amingaon Dry Port in

Assam – it is proposed to be enhanced from Rs. 1.5/kg in the 11-th Plan to

Rs. 2.0/kg in the 12-th Plan

(ii) For promoting exports of packaged teas of Indian origin packed &

exported from India, the costs incurred by individual Indian companies for in-

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store promotions, launch of promotional campaign, development of web sites

and/or publicity literatures etc are proposed to be reimbursed to the tune of

25%. This ‘Brand Promotion’ Scheme covers all Indian exporters selling

100% Indian teas in packets less than 1 kg and having “India Tea Logo”

printed on their packs. More weightage will be given for exports of high value

teas

Overseas promotion (i) Origin Promotion to build equity for Indian tea in international markets - It

is proposed to promote Darjeeling, Assam, Nilgiri & Kangra teas and the

respective logos among consumers. Promotion would be undertaken with

inputs and advice from the Industry

(ii) Promotion of India teas are proposed to be undertaken in the overseas

markets by the Board from the H.O. and three foreign offices through road

shows, participation in trade fairs & exhibitions, generic as well as specialty

tea campaign through Tea Councils in U.K., Germany, Canada and U.S.A.,

participation in fairs & exhibitions, trade facilitation through arranging Buyer-

Seller Meets, exchange of trade delegations (inbound & outbound),

information dissemination through gathering of market intelligence, protection

and promotion of various intellectual properties of the Board (Darjeeling GI,

Assam (Orthodox) GI, Nilgiri (Orthodox) GI etc)

(iii) Viral advertising through established social networks like Twitter, Face

book for propagating the diversity & richness of Indian tea during overseas

promotion

Project 5-5-5

(i) Campaign for Indian tea for restoring the position of Indian tea in select

markets viz. U.S.A., Russia, Kazakhstan, Iran and Egypt .Extensive &

intensive promotional intervention through execution of five specific activities

over five years . The foremost objective of the entire exercise would be to

position “Indian Tea” as an over-arching umbrella brand under which five

identified promotional activities would be designed, coordinated and

implemented through reinforcing “Brand India” connects amongst the target

trade and consumers. This is expected to result in prominent brand recall for

“Indian Tea” over the short to medium term so as to translate into significant

increase in value market shares in the targeted markets for years to come.

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3. Trade-related activities

(i) In order to facilitate export of quality teas in world class packaging,

infrastructure like Integrated Tea Park consisting of common infrastructure

like processing, blending, packaging, warehousing & testing laboratories is

proposed to be created. Creation of warehouses in close proximity to the

ports is also proposed to be set up. This will enhance the quality of tea being

exported from the country thereby enhancing the unit price realization of tea

and also establishment of brands in the world market

Publicity material (i) Production of appropriate publicity materials for trade and consumer

education in various international languages is including films, audio visual

aids, gift items, publicity literature, postures etc depicting Indian tea as a

brand.

4. Human Resource Development Scheme

Securing better working conditions for the plantation workers being one of

the primary functions of Tea Board, over the past several years, the Board has been

supporting certain welfare measures through the Human Resource Development

Scheme. Under this scheme projects will be undertaken for the following critical

areas-

1. Health and Hygiene of tea garden workers

2. Educational support for wards of tea garden workers

3. Training for workers, supervisors and managerial staff of tea gardens.

5. Research and Development Schemes

The activities covered under this scheme includes – meeting recurring

expenditure on some of the identified items of TRA and UPASI-TRF, up-gradation of

DTR&DC, supporting research projects of Tea Research Institutes and other

recognized Institutes on quality up- gradation, Integrated Pest and Disease

Management, value addition and product diversification, nutrition management, tea

and human health, setting up of quality control laboratories etc.

(A) Ongoing Research Schemes: The research schemes that have been

initiated during the XI Plan period are under various stages of completion and

some of the schemes are to be continued for one or two years of the XII plan

period for their completion.

(B) Justification for continuation during XII Plan: Long term Research is

necessary for developing and improving the techniques for modernization of

processing, as well as, for finding answers to emerging constraints and

limitations. Streamlining and strengthening of the research and creating

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suitable mechanism to ensure that research remains responsive and in tune

with the time is cardinal for future progress and growth of the industry.

6. Small Grower Development Scheme

The small grower sector has emerged as an important sector contributing

nearly one third of the country’s production of made tea. Considering growing

contribution of the small grower sector, there is a need to put increased attention to

this sector. Accordingly, various subsidies and supports that are available to the

small growers under various schemes of XI Plan have been clubbed/ consolidated

under one umbrella scheme i.e. Small Grower Development Scheme (SGDS). The

primary objective of the scheme is to encourage the small growers to move up in the

value chain instead of remaining for ever as only green leaf producers. Through

collectivization, the growers could move up as manufacturers and marketer of their

teas in a branded and value added form so that the teas from the small sector could

be exported at competitive prices. Currently Indian teas are getting priced out in the

international markets owing to the high cost of production in the organized sector

and thereby share of Indian tea in the global market is steadily declining. This

downward slide in export could be arrested by directing the tea produced by the

small sector for exports. Thus the key objective of the scheme is the facilitation of

collectivization of small tea growers in the form of Primary Producer Societies/SHGs

and become business entities engaged in quality tea production and marketing it for

better price realization.

7. Scheme for monitoring the implementation of Regulatory provisions of

Tea Act.

One of the primary functions of the Tea Board is to regulate the activities of

the various stakeholders in the cultivation of tea and its business in accordance

with the provisions of the Tea Act and orders issued there under- Tea (Marketing)

Control Order, Tea (Distribution and Export) Control Order, Tea Ware House

control order and Tea Waste Control Order The effectiveness of Regulatory

functions also aid in the effective discharge of other functions like Developmental

Activities, Marketing & Promotional Activities and Research Activities.

In consequence of observations of the CAG audit the Tea Board will perform

the following regulatory activities for effective implementation and monitoring of the

regulatory provisions of the Tea Act and the control orders thereof through e-

governance initiatives for automation of the licensing activities to ensure

transparency.

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Mandatory check mechanism to ensure supply of quality Green leaf to the manufacturer and the process of manufacturing quality tea for the consumers.

To introduce regular monitoring mechanism of checking of Tea Waste generated at the factory level to ensure maintenance of quality tea at the factory.

To introduce Region wise / State wise study on the status of the tea estates / tea manufacturing factories.

To undertake a Micro level study on the extent of implementation of the different regulatory provisions of Tea Act and Control Orders.

To undertake a Region wise / State wise assessment of extent of programme implementation by the beneficiaries under different schemes of Tea Board, its impact & economic analysis.

To study the cost of production of tea leaf of the small grower vis-à-vis by estates and cost of manufacturing of made tea by the Estate Factories / Bought Leaf Factories & Co-operative factories.

Strengthening of e-auction and bringing other allied activities under electronic platform.

Tea Board needs to strengthen following functional areas, in order to become a more effective development and regulatory agency:

Cost accounting: Tea Board has to rely extensively on external

agencies for undertaking studies on cost structure, cost

competitiveness, etc of tea industry on a regular basis. It needs to have

an in-house cost accounting cell for undertaking such exercises.

Economics & Policy Research Unit: For effective planning and policy

formulation for the industry, an in-house economics and policy research

cell should be part of Tea Board’s internal structure. This cell should

carry out high level policy research, best practice studies in terms of

policies and planning, and provide specific periodic recommendations to

the authorities in terms of suggested policy interventions.

HRD Cell: Human Resource Development is a crucial function. Tea

Board currently does not have any HRD cell. The same should be

created in order to effectively monitor and implement HRD Scheme

related initiatives and activities.

A. Rubber Board

Cenvatability of cess on NR

Domestic rubber consuming industry had been demanding cenvatability of

cess on NR. The Panel of Experts constituted as per the direction of Hon’ ble Delhi

65

High Court had recommended examination of the issue by the Revenue

Department. Accordingly, the Department of Commerce had referred the issue to

the Department of Revenue. The Department of Revenue vides OM

No.354/316/2011-TRU dt. 8th December 2011, stated that revenue collected as cess

on NR does not become part of indirect tax revenue. Therefore the Department is

not in a position to make the cess on NR cenvatable.

New Expert Panel constituted by Department of Commerce Department of Commerce constituted a Nine-Member Expert Panel for

examining the duty structure of dry forms of NR and latex and for making suitable

recommendations vide OM F. No. 8/5/2011-Plant C dated 6 January 2012. The

Expert Panel also shall make recommendations on various issues related to the

rubber industry including duties, pricing, shortage, export, import, latex related

issues and futures trading. The Expert Panel is serviced by Rubber Board. Three

meetings of the expert panel were conducted so far.

Exemption on quality inspection of rubber imported by manufacturers Ministry of Commerce and Industry, vide OM F. No. 8/12/2011-Plant C dated

3 January 2012, granted exemption from random checking on imported rubber for a

period of one year on experimental basis for manufacturers with effect from 1

January 2012. The direction under Notification No.S.O.1205 (E) dated 12.12.2001

of the Ministry of Commerce and Industry that for ensuring quality standards the

natural rubber imported into India shall be in conformity with such standards as are

specified by the BIS and the subsequent decisions on international and source

country standards are still legally valid.

Rubber Board was carefully monitoring the situation and has requested to

extend exemption for one more year or a suitable period with effect from 1 January

2013.

Annual mass contact programme – 2012 Annual Mass Contact Programme for the year 2012 with the theme ‘Capture

the world with quality’ was conducted during May - June 2012 at 857 centres and

covered 71,155 growers/tappers. Improvement in the quality of sheet rubber is

essential for ensuring healthy growth and sustainability of Indian rubber plantation

industry. The programme was organized in association with ATMA, AIRIA, IRDA

and RPS. Farm school workshops are being conducted as a follow-up activity of the

mass contact programme.

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Sample survey to verify stock of NR Report of a sample survey undertaken to verify the stock of NR was

submitted before the Statistics & Market Development Committee of the Board held

on 20 January 2012. NR stock figures were revised from June 2011 onwards.

Market Linked Focus Product Scheme (MLFPS) Indian Natural Rubber” branded NR was included in the Market Linked Focus

Product Scheme (MLFPS) vide Director General of Foreign Trade Public Notice No.

3 (RE 2012)/2009-14 dated 5 June 2012. Branded rubber will be incentivized at 2%

of f.o.b value when exported to the linked markets such as Malaysia, China, Turkey,

Brazil, Belgium, Italy, Spain, Germany, Sri Lanka, Bulgaria, Austria, Korea, Mexico,

Israel, Singapore, Indonesia, Portugal, Argentina, Australia and USA.

Coordination among Commodity Boards Additional Secretary (Plantations) chaired a meeting of the Chairmen and

Heads of the Research and Extension Departments of commodity boards under the

Department of Commerce on 31 August 2012 at Rubber Board to identify to identify

areas of common concerns/interests and evolve combined strategies to address

common issues wherever possible. The meeting identified several areas where

synergy among the boards can be used and formed Working Groups to prepare

action plan in the identified.

Database of Rubber Tappers

A programme was formally launched on 1 October 2012 at Chirakkadavu

Model RPS for the preparation of a database of rubber tappers. The database will

be useful for planning welfare programmes for rubber tappers and formulating

programmes to counter the growing shortage of labourers. Field level briefing of the

action plan is in progress and the enumeration is scheduled to be carried out

between April and September 2013 by utilizing the services of RPS.

Rubber Park at Pathanapuram

Project Report prepared by Rubber Board for setting up a Rubber Park at

Pathanapuram in Kollam District with a total project cost of Rs. 36.70 Crore was

approved by the state level committee for inclusion under ASIDE Scheme. The

project is expected to be completed within two years. Government of Kerala has

accorded sanction to utilize 51 acres of land under the possession of KINFRA for

the Park. This will be the 2nd unit of Rubber Park India Pvt. Ltd, jointly owned by the

Rubber Board and KINFRA.

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Spices:

Replantation & Rejuvenation of Cardamom Plantations: The programme on Replantation of Cardamom Plantations has got very good

response from the farmers and the independent study conducted by the Indian

Institute of Management, Bangalore recommended for the continuation of this

programme in the XII plan also. Due to lack of response, the rejuvenation

programme for cardamom has been discontinued during XII plan. In 2012-13, a

target of 6000 hectares will be covered under replantation of cardamom large &

small. It is proposed to cover an equal area of 6000 hectares in 2013-14. This

includes areas replanted by the farmers with the technical advice of the Board but

without availing subsidy. This scheme has been now merged with the scheme of

Export Oriented Production during XII Plan.

Pepper Production Development in Idukki district of Kerala

The National Horticultural Mission under the Ministry of agriculture, Govt. of

India has approved a programme for replantation/rejuvenation of pepper in Idukki

District of Kerala. The programme is implemented by Spices Board. Idukki is the

major production centre of pepper in Kerala. The total cost of the project is Rs.230.58

crores of which the approved total NHM assistance is to the tune of Rs.120.00 crores

for a period of 5 years starting from 2009-10. The programme is being implemented in

Idukki district of Kerala from 2009-10 onwards. So far, an area of 14305 hectares has

been replanted with high yielding planting materials. The target set for 2012-13 is

3760 hectares. This programme will be continued during 2013-14 subject to approval

of NHM in an area of 5500 Ha.

Pepper Production Development in Wayanand district of Kerala and N.E States

The scheme has been approved in October 2009 with a subsidy component

of Rs.53.28 crores for implementation from 2010-11. The implementation of various

components of the scheme has been started from 2010-11 covering an area of 8152

hectares under replantation. During 2011-12, 2860 ha have been covered under

replantation. The scheme is continued during 2012-13 with a target of 3650 ha. The

target fixed for 2013-14 is 3150 ha.

Spices Parks

Spices Park is a common infrastructure facility for processing and value

addition of Spices and Spice products which offers both primary and higher end

processing facilities. The Regional crop specific Spices Park is a well-conceived

approach to have an integrated operation for cultivation, post harvesting, processing

68

for value addition, packaging, storage and exports of spices and spice products by

meeting the quality specifications of the consuming countries. The basic objective of

the concept is to provide common infrastructure facilities for both post harvest and

processing operations of spices and spice products, which also aims at backward

integration by providing rural employment. Apart from the above facilities, the Board

will develop the common infrastructure facilities like Roads, Water supply system,

Power stations, Fire fighting & Control systems, Weighing bridges, effluent

Treatment Plants, Quality Lab for checking basic parameters, Bank & Post office

counters, Restaurant, Business centers, Guest house etc. Currently, the Board had

completed the establishment of the Spices Park at Chhindwara, Madhya Pradesh,

Puttady at Kerala and Jodhpur at Rajasthan. The Spices Park at Chhindwara is

mainly meant for garlic dehydration and extraction of chili and other Spices. The

operation of the park is started. The Spices Park at Puttady is mainly meant for

cardamom and pepper. The operation is started and continuing successfully. The

spices park at Jodhpur is mainly for cumin and coriander and the operation will

commence.

The Board is establishing Spices Parks in few other major spices growing

states/market centers and the progress is as follows.

(1) Guntur, Andhra Pradesh

The Board has acquired 124.78 acres of land in Edlapadu Mandal in Guntur district

from Government of Andhra Pradesh for setting up of Spices Park. The civil work

related to the basic infrastructure like internal roads, compound wall, drainage,

Administrative block, plant building, Power station etc are almost completed. Board

is establishing a full line processing facility for chili and also a steam sterilization unit

with 500 Kg/hour capacity. Board has already allotted 35 acres of land to the

prospective exporters for developing their own processing plant in the park. The first

phase of the project is expected to be completed by March 2013.

(2) Sivagangai, Tamil Nadu

The Board has acquired land admeasuring 72.70 acres in Kottagudi Village,

Sivagangai Taluk from the Government of Tamil Nadu for setting up the Spices

Park. The civil work related to basic infrastructure like Compound wall, drainage,

Administrative Block, 4 numbers of Godowns, 2 Plant Buildings, Canteen building,

Time House etc are almost completed. All civil work related to the establishment is

in the final stage. Board is establishing one full line processing system for Chili and

another full line system for Turmeric. The first phase of the project is expected to be

completed by March 2013. The Board is in the process of allotting land to private

entrepreneurs for developing their own processing unit.

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(3) Kota, Rajasthan

The Govt. of Rajasthan has allotted around 12.14 hectares of land in Ramganj Mandi of Kota district for setting up of Spices Park. The work related to the establishment of the Park is in progress. The processing facility installed in the park in a final process for coriander. The allotment of the land to private entrepreneurs is completed.

(4) Guna, Madhya Pradesh

Government of Madhya Pradesh had allotted 100 acres of land to the Board

on lease basis for establishing the Park. The Project will be established under

ASIDE Scheme. All the civil work related to the Park completed. Currently the Board

is in the process of allotting land to prospective exporters for developing their own

processing unit. The installation of the machinery is in progress and the park will be

ready by February 2013.

(5) Rae Bareli

Government has given approval to establish a Spices Park for Mint at Rae

Bareli under ASIDE Scheme at a cost of Rs.19.00 crores.

Electronic auction system for cardamom

The electronic auction (e-Auction) system introduced for cardamom is functioning

successfully at two centres viz., in the Spice Park at Puttadi in Kerala and

Bodinayakanur in Tamil Nadu with infrastructure facilities provided by the Board.

This will be continued in 2013-14 and the scope for introducing more electronic

auction centers will be considered.

Quality evaluation

Sampling and quality checking of spices export consignments of chili/chili products

and turmeric powder by the Spices Board in its laboratories prior to exports to

ensure its conformity with the international standards are being continued since

2003. The aflatoxins test for the export consignment of nutmeg to EU region has

been made it mandatory in 2011. This quality enforcement initiative has led to

significant boost in consumer confidence in overseas markets and has increased

exports. Technical and financial support to exporters of spices to upgrade the

quality of spices are also provided by the Board for setting up of in-house laboratory,

quality certification, training of technical personnel in analysis of various parameters

besides disseminating quality requirements specified by various buying countries to

exporters.

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Training on GAP on spice production

9th Batch of three months’ residential programme on “Good Agricultural

Practices on Quality spice production” was conducted by Indian Cardamom

Research Institute of the Board to train unemployed youths from farming families to

adopt Good Agricultural Practices (GAP) for quality spice production during 2012-

13. This programme will be continued in 2013-14.

COFFEE BOARD

New Policy Initiatives of Coffee Sector - Proposals for XII Plan (2012-17)

The coffee sector underwent unprecedented crisis during the period 2001-

2004. Despite that, the sector has shown signs of recovery towards the end of XI

Plan period thanks to various relief/ support measures announced by the

Governments both at Central and State levels. The country’s coffee production has

crossed the 2000-01 level (3, 00,600MT) during 2010-11 (3, 02,200 MT). However,

issues like stagnant production, declining productivity, erratic weather due to climate

change, shortage of workers etc., remain as the major constraints towards the full

revival of coffee sector in the country especially to meet the future requirements of

domestic and export markets.

Based on the lessons learnt during the implementation of XI Plan schemes,

priorities/ thrust areas and strategies have been identified for the XII Plan period for

supporting the growth and sustainability of Indian coffee sector. All the XI Plan

schemes, which continue to be relevant from the point of growth & development of

the industry, will be continued with suitable modifications based on inputs from

stakeholders’ consultation meetings, the recommendations made under the study

Structural Infirmities in Plantation Sector- Coffee and the recommendations of expert

committee which went into evaluation of XI Plan schemes on coffee. The

modifications in the schemes include restructuring of schemes by rearranging the

components, conversion of existing components into full –fledged schemes,

inclusion of certain modified/new components into the existing schemes etc.

The details of new components proposed in the XII Plan are:

Strengthening of Transfer of Technology and Capacity Building programme

As recommended by various Expert Committees, it is proposed to strengthen

the Transfer of Technology in coffee so as facilitate efficient dissemination of

research findings from Lab-to-Land and also bring the field problems by making the

Transfer of Technology an independent scheme by rearranging the erstwhile

components from R&D scheme and Development Support schemes. Presently the

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extension wing of the Board is working under Director of Research with JDEs

reporting to him directly. the extension services to the coffee industry have

increased many folds and with the Research functions too increasing tremendously

the Director of Research is hard pressed to cater to the supervision and monitoring

needs of both research and extension functions.

Hence, it is proposed for setting up of a separate Directorate of Extension to

strengthen the extension activities and capacity building programmes and to monitor

the effective implementation of envisaged programmes. The proposed Directorate of

extension will be headed by a Director of Extension

Expansion of Coffee

Apart from replantation, it is proposed to include new planting/ expansion in

view of significance of increasing the overall production of coffee in the country.

Special emphasis will be made on Arabica coffee since the share of Arabica coffee

is declining steadily over the past few decades due to decline in productivity due to

senile plantations and ravages of pests & diseases. During the XII plan, the Board is

proposing to pay focused attention towards finding effective measures against

coffee white stem borer through multi-institutional collaborative R&D programmes as

well as for reviving the Arabica plantation by providing suitable incentives for

replantation and expansion

Database on coffee growing areas

The Census of coffee estates was done some three decades ago. Since then

the data is being updated using the Coffee Board extension network spread over

entire coffee growing areas. However, this has its own limitation because many

activities undertaken by the growers may not come to the notice of Board’s

extension officials, if such activity is carried out beyond the scope of development

support schemes implemented by Coffee Board. It is evident that reliable data on

coffee area and holding pattern is a pre-requisite to prepare specific strategic

planning for different areas. Hence, it is proposed to update the database on coffee

area, holding pattern, infrastructure facilities, water resources etc. using remote

sensing application.

Modernization of coffee curing works

Before liberalization, almost all the coffee curing works were functioning

under the guidance and supervision of Coffee Board. At present there are 75

licensed coffee curing works apart from an equal number of unlicensed units. Most

of the licensed units were established more than 40-50 years back. The technology

of green coffee processing used by these curing works is obsolete and the

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machineries are very old and hence these curing works are not able to meet the

present day requirement of high quality processing. Besides, many of these coffee

curing works are running under loss and they are not in a position to upgrade their

machineries established long back. At present the technology of secondary

processing has improved and hi-technology machineries have been developed.

Hence, there is a need to upgrade the existing curing works with latest/hi-technology

machineries on par with international standards to improve the overall quality

standards of Indian coffees. Modernization also helps in automation of some of the

operations of coffee curing, thus ensuring reduction in operational costs.

Support for marketing by growers collectives / cooperatives

Indian coffee growing sector is dominated by small and tiny growers. These

growers are forced to sell their produce at farm gate level thus affecting their overall

returns. In many producing countries in Central & South America and Africa

smallholders form collectives/cooperatives for processing of coffee at a central

location and marketing their entire coffee in big lots sometimes directly exporting to

different destinations. By this way they are able to not only improve the quality of

coffee but also realize better value for their coffees. Hence, the Board is proposing

to encourage formation of growers’ collectives/ SHGs/ cooperatives by offering

different level of support under different developmental activities like processing,

mechanization etc. Under this component, it is proposed to provide one-time support

for growers’ collectives/ SHGs/ cooperatives for marketing of coffee by these groups

Support for Value addition

Traditionally bulk of Indian Coffee exports are in the form of conventional,

commercial product i.e., green bean form because of which the producers receive

less than 20% of the final value realized at retail level. Hence, apart from increasing

the productivity levels there is need to improve the unit value realization for the

coffee sold by producers. This is possible by approaches like quality improvement,

differentiation and value addition. By adopting systematic improvements in quality of

beans, the coffees can be sold at higher value compared to commercial beans.

There are also opportunities for exporting certified coffees under the sustainable

coffees category, for which good demand exists in the global market. India’s fast

growing domestic coffee market also provides a unique opportunity for the growers

to enter into R&G coffee segment directly through value addition.

In this regard, apart from continuing the existing XI Plan scheme of providing

support for setting up of Coffee Roasting, Grinding and Packaging Units, it is

proposed to extend support for modernization of curing works and support for

setting up of quality testing laboratories by stakeholders.

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V. MPEDA

POLICY/ REFORM MEASURES

POLICY

The MPEDA has formulated a vision document for the marine products

industry. This document addresses all the vital linkages that are needed for the

industry in marketing capture and culture fisheries, processing, quality control and

sustainability. The future growth of the industry will be based on the country’s

capability to produce adequate raw materials for export and additional value to the

products which are the present day requirement of the consumer. The corner

stones of the strategy are:

1. Aggressive marketing

2. Exploitation of un-exploited resources like tuna and other oceanic resources

3. Expansion and diversification of aquaculture.

4. Value addition.

5. Quality and sustainability.

It is envisaged that the country’s exports would reach US $ 4.2 billion by

2012-13 and US $ 6 billion by 2017. Though this overall strategy for improvement of

seafood exports, there will be significant improvement in employment generation

and rural development. The employment generation of the industry is targeted to

reach a level of at least 5 million during this period and it is expected to revitalise the

rural sector with improvement in quality of life.

CURRENT AREAS OF FOCUS (MAJOR POLICY ITEMS) To facilitate enhanced export of marine products MPEDA has been giving greater attention in the following areas.

Development of Tuna fishery by extending financial assistance and technical advice for conversion / construction of Tuna Long Liners and chilled tuna packing facilities and imparting training to crew.

Sea freight Assistance for import of raw material for export of specified value added products to make India a Seafood Processing Hub which will also help in maximum utilization of processing units and thereby create more employment generation especially for women.

Promoting diversification to increase the share of culture fishery resources by cage farming of finfish and organic culture of shrimps.

Upgradation of fishing harbours and landing centers to improve the quality of marine products landed.

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Assisting setting up of state of the art processing facilities for value added marine products meant for export.

Ensuring production of quality seafood by setting up sophisticated laboratories in the maritime states.

Extending linkages to the grass root level by ensuring better extension packages to fishermen / farmers and the workers engaged in various stages of processing of marine products.

Enhancing the brand equity and to promote co-branding and joint ventures for strengthening marketing strategies abroad.

Participating in International Seafood Shows to show case the strength of Indian marine products industry.

Facilitating supply of healthy and disease free seed and to demonstrate culture practices of various species.

Strengthening R & D activities to develop technology for aquaculture.

Appropriate schemes/measures have been devised to achieve these objectives.

CURRENT POLICY INITIATIVES TO INCREASE PRODUCTION AND EXPORTS

a. To increase the production

MPEDA in association with SIPPO has taken up organic culture of scampi

in an area of 50 hectares in Kerala and Andhra Pradesh.

Discussion is in the advanced stage to get financial and technical

assistance for popularizing marine finfish farming through cage culture, in

association with NORAD an agency identified by Innovation Norway with

whom MPEDA entered into an MOU.

Culture of sea bass in cages and ponds with the seeds produced by

RGCA on a pilot scale.

Introduction and adoption of code of practices in shrimp farms addressing

thereby sustainability concerns.

Assistance for conversion of fishing vessels into Tuna Long Liners and provide long line materials to tap otherwise unexploited Tuna resources.

b. To improve quality and sustainability of marine products meant for

Export.

The National Residue Control Plan (NRCP) to monitor the residue levels

of various environmental contaminants in aquaculture was continued more

vigorously.

Hazard Analysis Critical Control Point (HACCP) team continues to assist

seafood processing units for preparing HACCP manual and

implementation of HACCP system.

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MPEDA laboratories at Kochi, Nellore and Bhimavaram, accredited

laboratories’ test results are accepted by the importing countries without

further verification.

The new laboratory made operational at Bhubaneswar tests for antibiotics

like Nitrofurans and Chloramphenicol of marine products meant for export.

NETFISH and NaCSA, the two societies formed for undertaking extension

education programmes continue their effort in capture and culture fisheries

sectors, for quality upgradation.

To prevent, deter and eliminate illegal, unreported and unregulated fishing,

implemented Catch Certificate for export of seafood consignments to

European Union.

c. Other developmental/promotional activities

Upgradation and modernization programmes of various fishing

harbours/landing centres are progressing.

Conversion work on fishing vessels underway for tapping the tuna

resources.

Ornamental fish breeding units coming up in a big way to boost the export

of ornamental fish.

Rajeev Gandhi Centre for Aquaculture continues its pioneering effort in

research and development of various efforts in production of seed and

culture thereof.

MILE STONES FOR 12TH PLAN

Promotion of Brand equity of Indian Products

Increase in production of Tuna.

Increase production from aquaculture.

Products exported to be value added

Improve capacity utilisation of processing plants

Improvement of hygiene in landing centres/fishing boats

Create a foundation for Rajiv Gandhi Centre for Aquaculture.

Make India a Seafood Processing Hub.

Increased production of L.vannamei Shrimp

It shall be MPEDA’s endeavor to realize the above goals by following a road

map, which focuses attention on the areas identified above. The schemes and

financial outlay of MPEDA’s 12th Plans will follow the vigorous road map. As

mentioned earlier, it is inevitable that the areas to be addressed by MPEDA might

sometimes fall within the purview of other Ministries/departments/organizations.

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This is sought to be resolved through convergence with the programmes of the

Ministry of Food Processing Industry. Department of Animal Husbandry, Dairying

and Fisheries, National Fisheries Development Board etc. whose resources will be

adequately utilized by the MPEDA to supplement its own resources. It is expected

that they will also give due attention to the complex needs of the export sector and

lend their unstinted support to MPEDA.

REFORMS

1. Network for Fish Quality Management & Sustainable Fishing (NETFISH)

A society named Network for Fish Quality Management & Sustainable

Fishing (NETFISH), registered with MPEDA, under the Travancore Cochin Literary,

Scientific and Charitable Societies Registration Act, 1955 at Ernakulum, has been

formulated to organize the extension programmes of MPEDA in all maritime states

and a budget of Rs.1000 lakh has been included in the 12th 5 year plan. The

headquarters of NETFISH is at Ernakulum.

NETFISH will undertake capacity building for providing training to fishermen

on board handling, training to trainees, training to stakeholders in handling fish in

landing centers, training on TED, and training to Societies for conservation of fishery

resources, training to pre-processing plant workers, training in hygienic maintenance

of fishing boats, etc.

NETFISH will evolve a new mechanism for capacity building in quality

management at grassroots levels by networking with fishermen societies,

federations and other non-governmental organization which work closely with the

fishing community, which will be more effective in imparting training to fishermen

and fish workers. NETFISH will also promote capacity building for stakeholders etc

in planning, marketing, technology dissemination, processing etc and thereby

facilitate their empowerment. NETFISH will also bring out extension training

materials for all training programmes in various languages; prepare video extension

materials, brochures, etc.

2. India Organic Aquaculture Project (IOAP)

MPEDA implemented organic aquaculture in India by availing the consultancy

and technical collaboration from the Swiss Import Promotion Programme (SIPPO),

Zurich, Switzerland.

The brackish water area available in India for shrimp farming includes the

existing traditional prawn filtration fields also, which are located in West Bengal

(46100 ha) and Kerala (10700 ha). These vast filtration areas are actually paddy

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fields, belonging to several entrepreneurs, who do salt resistance paddy cultivation

by themselves and later auction the area, after paddy cultivation for doing the

seasonal traditional prawn filtration, when the water become saline in nature due to

inundation. The traditional type of prawn filtration system is highly environment-

friendly as they use no antibiotics, chemicals, etc and hence the paddy fields can

easily be adopted for organic aquaculture. Organic aquaculture ensures that the

farming activity is in harmony with the nature, with due care for the good health and

welfare of the cultured organisms. Organic products have become very popular now

a days due to rise in health and environmental awareness, concerns on food safety

and there is a growing demand in developed countries, especially; US, EU, etc. The

premium for the organic products is also high in the international markets.

3. National Centre for Sustainable Aquaculture (NaCSA)

The National Centre for Sustainable Aquaculture (NaCSA) is an outreach

organization of MPEDA to provide technical support to the primary aquaculture

societies and build capacity among small farmers to produce quality shrimps in a

sustainable manner. It is envisaged that NaCSA will serve as a link between

primary aquaculture societies and the farmers in turn to facilitate formulation of

common policies, strategies etc. to benefit farming community as a whole in the

country. The objective of community participation in coastal aquaculture is expected

to augment shrimp production for raising the seafood export from India.

Chief Executive Officer (CEO) and essential staffs have been already

appointed besides housing the headquarters of NaCSA at Kakinada. The

requirement to the field offices of NaCSA in various maritime states is being

attended. A detailed work plan has been formulated for streamlining the activities,

for which a workshop was organized with the Stake holders. Action as per the work

plan has already been initiated.

SCHEMES/ PROGRAMMES FOR WOMEN

The major schemes/programmes of the Authority which are benefiting women are

as follows:-

1. Financial Assistance for extending insurance coverage for workers employed

in fish processing units. This is a welfare scheme mainly for the benefits of

the women workers employed in seafood pre-processing/processing plants.

It aims to provide social and financial security for the insured and their

dependents.

2. Development of Hatcheries – a good number of women are working as

technicians and aids.

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3. Field level extension programme – ensures 20% of women participation in

meetings.

4. Training programme for SC/ST – ensures 20% of women participation in

these trainings.

5. Developmental assistance to set up PCR Labs – a good number of

technicians in labs is women.

6. Setting up of Ornamental Fish Marketing Societies (OFMS)/Fish Breeding

Units (OFBU) – 50% of the persons engaged in the OFMS and OFBU are

women.

7. Assistance for construction/renovation captive and independent pre-

processing centers – Most of the workers in these centers are women and

they are able to get gainful employment and hygienic working environment.

EVALUATION RESULTS OF MPEDA PLAN SCHEMES

1. Results of the independent evaluation of the MPEDA’s financial

assistance schemes

The Marine Products Export Development Authority (MPEDA), implemented

several financial assistance (subsidy) schemes during 11th Plan period (2007-08 to

2011-12). As directed by the Planning Commission through the Ministry of

Commerce and Industry, it was necessary to evaluate the schemes to assess the

impact in enhancing the capability of the seafood industry to export different

products and in enabling the exporters to augment their exports. Accordingly, M/s

Gujarat Industrial Technical Consultancy Organisation Ltd (GITCO) was assigned

the work for independent evaluation of MPEDA schemes. The work was undertaken

based on a set of Terms of Reference (TOR) and scope of the work mutually agreed

upon. M/s GITCO completed the work and submitted their final report in November

2012.

VI APEDA

Under the scheme Market Development, APEDA has a proposal to initiate a

number of programmes for market promotion of agro products as under:

a. Participate in 20 international trade fairs all over the world on the basis of

export potential and the focus area/focus products.

b. At least 10-15 exporters are likely to participate in APEDA pavilion in each

fair.

c. Participation will also be organized in AAHAR international at New

Delhi/Mumbai and Chennai.

d. Buyer Seller meets will be organized by APEDA (2).

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e. Visits of the international delegations for meat and meat products, fresh

fruits and vegetables, basmati rice etc. will also be organized during 2013-

14.

f. Financial assistance will also be provided to at least 191 exporters for

usage of packaging material as per approved standards of IIP to enhance

the packaging of the fruits, vegetables, flowers and processed foods etc.

VII. Trade Facilitating Reforms and Export Promotion Measures

During the year, the ongoing reforms on the trade facilitation and export

promotion fronts were further deepened and new initiatives undertaken. The major

initiatives in this regard include:

A. e-TRADE Project

The project entitled “Electronic Trade (eTRADE)” is pursued by this

Department in various trade regulatory and facilitating agencies like DGFT, customs,

seaports, airports, Container Corporation of India (CONCOR), banks, carriers,

importers, exporters, agents to facilitate efficient and effective mode of transacting

business in the area of foreign trade. The services covered under the project are

electronic delivery of services in online environment i.e electronic filing/clearance of

export/import documents, e-Payment of duties, charges (handling/freight etc.) and

the electronic message exchange between community partners.

Major developments during the year are as follows:

1. The digitally signed electronic message exchange between Customs and

DGFT for Annual Advance authorization and Duty Free Import Authorisation

is being finalized. The message exchange between DGFT and Customs for

DEPB, DES and EPCG schemes is already operational for all EDI ports.

2. The Centralized Port Community System (PCS) which is operational at major

seaports to provide single window interface is now being extended to other

non-major seaports. Other seaports like Mundra, Dahej, Pipavav and

Gangavaram, which contribute large share in terms of traffic of non-major

seaports, are at an advance stage of implementation.

3. The electronic Express Courier Clearance System has been started at the

airports of New Delhi and Mumbai. This would facilitate the faster clearances

of express courier consignments.

4. The Customs has implemented the Central Server system for which roll out

has already been done at around 90 locations. A total of 115 locations are

planned to be covered by the Customs under central server system in the

current phase. The implementation of message exchange with community

partners under central server environment is under process.

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5. The new version of Risk Management System (RMS 3.1) under central

server environment has been started at around 50 EDI locations.

6. To enhance the ePayment usage, Customs is integrating ePayment of duties

from any of its authorized banks for all Customs locations. Eight banks have

already started collection of customs duties through e-payment. To facilitate

the electronic Pay and Account Office (e-PAO) software has also been

developed which is under implementation.

B. e-Procurement

DGS&D initiated its journey towards implementation of e-Procurement

platform in the financial year 2004-05 and over a period of time developed an end-

to-end solution beginning with the identification of new items for bringing on Rate

Contract(R/C), consultative meetings to finalize deletion/addition of items, governing

specification and terms and conditions, formulation of governing specifications,

creation and invitation of tender, receiving and opening of bids through secured e-

tendering platform, comparative and ranking Statements, information regarding

dispatch of supplies and receipt by the consignee, e-payments and debit

adjustments. Different software modules have been extensively used for its internal

activities concerning purchase and inspection. The platform has since stabilized.

A computerized system based on client server architecture on LAN/WAN

working at Headquarters and regional/sub-ordinate offices with adequate

communication links and website & Web enabled systems has been established in

the organization.

The system has been developed in-house with NIC providing e-support in

developing software modules. In the initial phases, E-tendering was out-sourced

through a third party, acting as ASP, on PPP mode. However, after expiry of third

party ASP contracted for e-tendering module is fully operational and all tenders of

generalized items, with tender opening date on or after 15-11-2011, are mandatorily

invited on-line.

DGS&D has finalized a procedure for secure on-line placement of supply

order through user login-id, password and digital signature of the officer placing

such supply order. A Channel of authentication has also been prescribed. From

1.10.2008, placement of on-line Supply Order has been made mandatory for all

Central Government Director Demanding Officers (DDOs) except for items viz.

Primary Oil, Automobiles and Spares. During the financial ear 2011-12 till 31-12-

2011, 73796 Nos. of on line supply order and 142039 nos. of online Inspection notes

for stores worth Rs. 2189.27 crore, have been issued.

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DGS&D budget expenditure for computerization activities for the financial

year 2011-12 is Rs. 4.00 crores.

C. Online Services by Director General of Foreign Trade (DGFT)

The Department is committed to simplifying procedures, facilitating electronic

clearances, and putting in place an exporter friendly regime for obtaining

authorizations under various export promotion schemes. The Directorate General of

Foreign Trade (DGFT) is engaged in enabling web based international trade

transactions so as to facilitate exporting community in expeditious import/export

clearances. The Director General of Foreign Trade (DGFT) maintains a

comprehensive website www.dgft.gov.in. The details of Foreign Trade Policy, Hand

Book of Procedures, all important Notifications, Public Notices, Circulars, minutes,

etc. are available on the website. Single online application form for all the schemes/

activities is also available on the website. Several steps are being taken under the

Electronic Data Interface (EDI) programme.

Box 3.3

Initiatives under Electronic Data Interface (EDI) Programme

Filing of applications for various authorizations through EDI mode has been

made compulsory in majority of schemes.

DEPB scheme is completely online. The message exchange between DGFT

and Customs for Advance Authorization and EPCG licenses has been

implemented for all EDI ports for authorization issued after 1.4.2009.

24 out of 37 EPC’s have registered on DGFT’s Website. Complete online

uploading of RCMC data is expected to map shortly.

Two additional banks namely (i) Bank of Baroda (ii) United Bank of India have

also been included for Electronic Fund Transfer (EFT) facility for DGFT users.

• An offline data entry module has been provided for Advance Authorisation and

EPCG applications in August, 2010 to provide flexibility in filing applications by

exporters, and reducing online server time which would improve efficiency and

reduce cost.

• Online filing of IEC application and its online processing w.e.f. 1.1.2011.

Online validation of PAN is also likely to be integrated by 31.1.2011 for which

NSDL has been engaged.

• Message exchange of DFIA authorization would be started from 13.10.2011

between DGFT and customs.

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• Software to make PRC cases filing, processing and tracking an ‘online’

system is under development. The tracking/Monitoring package for Advance

Authorization and EPCG has been functionally tested and placed on intranet.

It will be made available to Regional Authorities after security audit by NIC,

which is likely to complete by 31.12.2011.

D. Use of Information and Communication Technology

Information and Communication Technologies (ICT) and its tools have

become integral part of the functioning of the Department. These have facilitated the

efficient and effective administration, monitoring, trade facilitation, delivery of

services and information dissemination to the users. The Computer Centre in the

department is being manned and managed by National Informatics Centre (NIC). It

provides necessary assistance and support in developing and implementing various

ICT systems and applications for decision making, monitoring, analysis, office

automation and e-governance. All officers/ divisions/ sections are equipped with

necessary ICT infrastructure for their desktop computing and functioning. These are

connected to a Local Area network (LAN), providing round the clock facilities for e-

mail, and Intranet/ Internet operations. The ICT infrastructure in the department is

being regular reviewed for its better utilization and upgradation.

Video conferencing is being effectively used as cost effective solution through

Video Conferencing Studio at NIC- Head Quarter for national and international

meetings and negotiations. An Executive Video Conference System (EVCS) is also

available in the Chamber of the Commerce Secretary, connecting Secretaries to

Government of India and all Chief Secretaries/ Administrators of States/UTs over

NIC network (NICNET) to facilitate quick appraisal of inter-ministerial and state

matters.

Various ICT based systems, applications and packages have been deployed

in the department in order to provide necessary support in decision making,

monitoring, analysis, office automation and e-governance. The electronic interface

with community partners for trade facilitation, electronic payment through net

banking and digital signature are integrated with the systems wherever applicable.

The website of the department (http://commerce.gov.in) is being regularly

enriched and strengthened for information dissemination, electronic delivery of

services, trade facilitation and monitoring. It provides Government-to-Citizen (G2C)

and Government-to-Business (G2B) interfaces. A separate website for the Standing

Committees on Promotion of Exports by Air and Sea (http://escope.gov.in), is also

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hosted to provide an open forum for the Trading community for direct and quick

interface for communication and information dissemination with the Department.

An Intranet Portal is hosted in the department for providing e-governance and

office automation applications to the employees and internal users. It is being

regularly updated with latest circulars and notices.

VIII. Policy Initiative

Following New schemes have been proposed by Department of Commerce for 12th Five

Year Plan (2012-17)

Gems and Jewellery

i) Convention Centre in Mumbai on PPP basis: To hold large scale

international/Indian exhibitions, seminars etc. for organizing business to business

trade shows and displaying the new product lines to the global world. The Centre

would be useful for exhibitions and business meets to display products of industries

such as apparel, electronics, pharmaceuticals, machine tools, automobiles, oil and

gas etc.

ii) Common facility centre on PPP basis: After the 2008 global recession, the

Gems and Jewellery sector is faced with the acute scarcity of skilled artisans as a

large number have migrated to their home towns in Gujarat. The artisans engaged

in diamond cutting and polishing industry are reluctant to return to the city because

of high cost of living and loss of confidence because of sudden unemployment.

Urgent steps are needed to maintain Indian’s competitiveness in this sector which is

mainly due to its human resource. Therefore, it is necessary to provide additional

facilities to attract the Gems & Jewellery workers in clusters.

iii) Gem Bourse in Jaipur on PPP basis: Jaipur is an international hub for color

stone studded jewellery. To institutionalize the largest and oldest industry of the

city, it is proposed to develop Jaipur as an international hub of gemstones. The

Gem Bourse in Jaipur will act as a market place focusing on the activities to promote

trade and the specific needs of the industry creating a platform for the buyers from

around the world for purchasing gems and jewellery. It would have facilities such as

Customs, Banks, Clearing and Forwarding Agents, etc.

iv) Gem & Jewellery Park in Mumbai on PPP basis: Mumbai has developed as

one of the foremost trading centre of the diamonds in the world accounting for 90%

of the total diamond exports of the country to plan for the future infrastructure

needs to be developed which can integrate the cutting and polishing of diamonds

and the manufacturing of jewellery in the same place. The integrated facility would

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provide for workers accommodation, training and other ancillary facilities like

business, hotel convention centre, incubation centre etc.

v) Technology upgradation in Gems & Jewellery sector on PPP basis: Gems

and Jewellery sector is an important component in India`s export basket and

employs nearly 3.4 million workers. To maintain its competitiveness, the sector

requires constant technology upgradation.

Pharma

vi) R & D Financing and Cluster Development for Pharma through a venture

capital fund: Strengthening the manufacturing of Pharma Products for increasing

pharma exports.

vii) Reimbursement for plant registration and bio similar/bio equivalent studies to

pharma exporters: Incentivising new market access to pharma exporters.

Leather

viii) Footwear Design and Development Institute (FDDI) : After the success

achieved in the establishment of FDDI, NOIDA, and upgradation of FDDI,

Fursatganj, Rae Bareilly another branch of FDDI is being set up at Jodhpur. In the

12th Plan it is proposed to establish three additional branches of FDDI to meet the

requirements of the leather industry for trained human resources and to provide

consultancy in design, technology and quality. To create strong institutional

capacity within the country for the development and growth of the entire leather

sector i.e. footwear, apparels, retail management etc. FDDI intends to set up a

networking centre and take up responsibility as a Centre of Excellence

ix) Creation of Venture Capital Fund for corporatization of Leather sector -

creation of seed fund.

Tea Board

x) Small Growers Development Scheme: To provide due consideration to the

special needs of the small growers sector and increasingly important role that the

sector is playing in the Indian tea industry, a separate scheme has been proposed

for the sector with various sub-components covering all aspects of development for

the sector. Small growers have significant skill-gaps and very large training needs

which can’t be catered to through a few centralized institutions. There is a need for

undertaking more field oriented training programs for the small growers, while

making available a team of qualified/trained advisors to address their needs on a

continuous basis. In addition, the Small Growers’ Development Directorate would

also organize training workshops and field training sessions for STGs and their

85

workers on a regular basis. In addition to technical trainings, small growers and

SHGs need to be provided extensive training on group formation, basic accounting

and book keeping, office management, office automation, leadership skills, etc.

xi) Monitoring the implementation of Regulatory provisions of Tea Act:

There are certain regulatory and compliance related activities of Tea Board that are

not covered under any scheme. Such activities include Mandatory check-

mechanism to ensure quality of tea meant for export from India, Mandatory check

mechanism to ensure supply of quality Green leaf to the manufacturer and the

process of manufacturing quality tea for the consumers, regular monitoring

mechanism of checking of Tea Waste generated at the factory level to ensure

maintenance of quality tea at the factory, introduce Region wise/State wise study on

the status of the tea estates / tea manufacturing factories, undertaking of Micro

level study on the extent of implementation of the different regulatory provisions of

Tea Act and Control Orders, undertake a Region wise/State wise assessment of

extent of programme implementation by the beneficiaries under different schemes of

Tea Board, its impact & economic analysis, study the cost of production of tea leaf

of the small grower vis-à-vis by estates and cost of manufacturing of made tea by

the Estate Factories/Bought Leaf Factories & Co-operative factories, Strengthening

of e-auction and bringing other allied activities under electronic platform.

DGFT

Policy Initiatives Taken:

Filling of applications for various authorizations through EDI mode has been

made compulsory in majority of schemes.

The message exchange between DGFT and Customs for Advance, DFIA and

EPCG Authroization has been implemented for all EDI ports for authorization issued

after 1.42009.

Link on DGFT’s website for e-RCMC project has been provided on DGFT’s

server and transmission of RCMC data by EPC’s has started in August, 2010.

28 out of 37 EPC’s have registered on DGFT’s website. Complete online

uploading of RCMC data is expected to maped shortly.

Two additional Certifying Authorities i.e. M/s. 3 I Infotech Consumer Services

Ltd. (Brand Name – eMundhra) and M/s. TCS Ltd. Have been permitted to issue

Digital Signature Certificates to the users of DGFT system. M/s. 3 Consumer

Services Ltd. has since signed MOU to initiate this activity.

86

As off now 20 Banks have been signed MOU with DGFT for Electronic Fund

Transfer (EFT) facility for DGFT users.

An offline data entry module has been provided for Advance Authorization

and EPCG applications in August, 2010 to provide flexibility in filing applications by

exporters, and reducing online server time which would improve efficiency and

reduce cost.

Online filing of IEC application and its online processing w.e.f. 1.1.2011,

online validation of PAN is also completed.

A PRC ‘On-line” filing and tracking system has been developed and is

available on DGFT’s website w.e.f. 31.12.2012.

ASIDE

The implementation of the scheme by States / UTs has been encouraging. The

salient findings of a mid-term appraisal of scheme during 11th Five Year Plan

commissioned to IL&FS are as under:-

It has been now established that there has been an upswing in exports from

States and in concomitance there has been an upswing in allocation,

sanction and utilization and number of projects being implemented.

Exports have more than doubled in the last four years and although the

increase in exports cannot be attributed solely to ASIDE, the scheme has

contributed substantially and handsomely to export efforts. In fact, most of the

states are now warming up to the scheme having understood and grasped

benefits of leveraging ASIDE funds.

A quantum jump in allocation of funds is imperative if substantial

improvements are to be expected in infrastructure, and therefore, exports.

Changes brought in ASIDE Guidelines:

ASIDE guidelines for 12th FYP (2012-17) have been revised. The revised

ASIDE guidelines may be seen at http:// www.commerce.nic.in or

http://www.commerce.gov.in under Head–National Trade, Subhead--Trade

Promotion Assistance as “Revised ASIDE guidelines 12th FYP (2012-17)”.

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Projectised Basket Approach: In view of doubling of exports envisaged in

FTP 2009-14, involvement of States / UTs is now based on the projectised basket

approach. Herein a general basket of 500-600 critical export infrastructure projects

with visible and tangible impact for implementation during 12th FYP (2012-17) is

being prepared. The basket shall form the basic boundary of the Scheme. The list

shall serve as the benchmark for the type and size of the projects. Such basket will

consists of shelf of projects (20-40 in number) received from all States / UTs and

States are to implement these ASIDE projects during 12th FYP(2012-17) on priority

basis.

Four Category of States / UTs: All States/ UTs have been grouped in four

categories: Large, Medium, Small and North Eastern States. Punjab and Haryana

fall in Medium Category States.

The project size should be such that tangible infrastructural projects are taken

up. For this the ASIDE contribution shall be a minimum of Rs 5.00 Crores for large

States and Rs 2.50 Crores for Medium / Small / North Eastern States including

Sikkim. In case the State wishes to take projects outside the list of the basket of the

projects, mandatory concurrence of the DoC will have to be obtained to ascertain

the relevance of the project for export. In such a case the State would also need to

co- finance the project where ASIDE contribution would be limited to 50%.

10 % of ASIDE outlay is reserved for incentivizing States / UTs for their better

performance under ASIDE as per Incentive guidelines.

Other Activities

Land free from all encumbrances is prerequisite for consideration of

projects for assistance under ASIDE.

The assistance covered under ASIDE is only for capital infrastructure.

The estimated total project works cost to be taken for consideration for

assistance under ASIDE Scheme should be vetted (both technical and financial

aspects) by the competent authority either of the State Governments/ UT

Administration or Local Bodies like municipalities etc or other statutory bodies etc on

the basis of prevailing Schedule of Rates (SOR) in the State / UT concerned at that

point of time of Competent Authority of Central Public Works Department (CPWD)

as per Delhi Schedule of Rates (DSR).

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Social and Gender Empowerment Processes

In accordance with the policy of the Government of India, a SC/ST cell is

functioning in the Department of Commerce to ensure due compliance of the orders

of reservation issued from time to time in favour of SCs and STs. A Liaison Officer

has been nominated in the Department to ensure prompt disposal of the grievances

of the employees of these classes and to scrutinize and consolidate the statistical

data. So far as services and posts in the Department and organizations under its

administrative control are concerned, none of the posts has been exempted from the

purview of the reservation orders. The Liaison Officer examines and rectifies,

wherever necessary, the roster maintained by the various organizations for ensuring

representation to SCs/STs/OBCs. The Liaison Officer also provides relevant

guidelines to the officers in the Department of Commerce, its attached and

subordinate offices and the Public Sector Undertakings, in accordance with the

instructions issued by the Department of Personnel and Training (DOP&T) from time

to time. The Cell is also looking after the work regarding implementation of the

Government Orders in respect of reservation for Other Backward Classes (OBCs) to

the extent of 27% in direct recruitment.

The Commodity Boards under the administrative control of the Department

of Commerce have certain specific schemes under Special Tribal Plans, which are

operated with a view to supplementing the efforts of the Government in improving

the socio-economic conditions of the SC/ST workers in the non-traditional areas.

The attached and subordinate offices, PSUs, autonomous bodies etc. under the

administrative control of the Department have also undertaken number of welfare

activities.

Women Cell

An independent Women Cell has been set up in Department of Commerce with

the following broad functions:

Prevention and redressal of sexual harassment at workplace,

constitution of Complaints Committee in the Department of Commerce,

its attached and subordinate offices, PSUs, autonomous bodies etc.,

monitoring their performance and providing necessary help and

guidance.

Coordination with the Department of Women & Child Development,

National Commission for Women and other concerned agencies in

respect of the matters connected with welfare and economic

empowerment of women and other related issues.

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Review of the various programmes of Department of Commerce to

ensure that various aspects of women welfare, development and

empowerment are promoted through the programmes and schemes of

the Department.

Preparation of Action Plan pertaining to the Department of Commerce

for the overall development of women in line with the National Policy

for empowerment of women.

Other incidental matters pertaining to the subject.

The Women Cell actively participated in the various workshops/seminars on

gender issues organized by National Commission for Women and others.

Gender Budget Cell

The Gender Budget Cell is functioning in the Department to ensure that the

budget allocations made in the various schemes implemented by the Department

benefitted women. Most of the schemes under the Commodity Boards such as Tea,

Rubber, Coffee, Spices etc. as well as agencies like the Indian Instituting of

Packaging, the Marine Products Export Development Authority, and the Footwear

Design & Development Institute etc. have programmes targeting women

beneficiaries. Though funds are not specifically earmarked for this group, all the

aforementioned schemes subsume the targeted category.

*******

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CHAPTER-IV

REVIEW OF PAST PERFORMANCE

Global Economic slowdown and India’s Trade performance

India had the fastest export growth among major traders in the world in 2011.

As per WTO’s International Trade Statistics, 2012, in merchandise trade, India is the

19th largest exporter in the world with a share of 1.7 percent and the 12th largest

importer with a share of 2.5 percent in 2012. In commercial services, India is the 8th

largest exporter with a share of 3.3% in world exports ad 7th largest with 3.1 percent

of the world’s share imports.

Indian Economy, being much more globally integrated today, with share of

exports of goods & services in GDP at 26.3 percent in 2011-12 (in 2002-03 this

share was only 10.3%), has not been immune to these developments in the World.

Following the global financial crisis in 2007-08, India’s exports registered a 3.5 %

decline in 2009-10. The sovereign debt crisis in the Euro zone periphery in 2011-12

impacted negatively economic growth in and exports from India. Between 2010-11

and 2011-12 India’s Growth rate of exports declined from 8.4% in 2010-11 to 6.5%

in 2011-12. During the same period growth rate exports declined from 40.5% in

2010-11 to 21.3% in 2011-12. The projected growth rates in different countries are

expected to determine the markets for our exports. To take advantage of the trends,

economic management over the first few years of the Twelfth Plan will have to cope

with the uncertainty in the global economy.

India’s merchandise exports reached a level of US$ 304.6 billion during 2011-

2 (P) registering a growth of 21.3 percent as compared to a growth of 40.5 percent

during the previous year. India’s export sector has exhibited remarkable resilience

and dynamism in the recent years. Despite the recent setback faced by India’s

export sector due to global slowdown, merchandise exports recorded a Compound

Annual Growth Rate (CAGR) of 20.3 percent from 2004-05 to 2011-12.

During the year 2011-12, the cumulative value of exports was US$ 304.6

billion as against US $ 251.1 billion registering a growth of 21.3 percent over the

corresponding period of the previous year.

Cumulative value of imports for the same period was US $ 489.2 billion as

against US $ 369.8 billion during the corresponding period of the previous year

registering a growth of 32.3 percent.

The Trade deficit in 2011-12 was estimated at US % 184.6 billion which was

higher than the deficit of US $ 118.6 billion during 2010-11.

The value of both exports and imports in April-November 2012-13 are lower

than the values in the corresponding period of last year (Exports are US $ 189.2

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billion in April-November 2012-13 vis-a-vis US $ 201.2 billion in April-November

2011-12. Imports are US $ 318.7 billion in April-November 2012-13 vis-a-vis US $

323.8 billion in April-November 2011-12). Our merchandise trade deficit is higher in

April-November 2012-13 at US $ 129.5 billion as compared to US $ 122.6 billion

during the corresponding period of the previous year.

Trends in Exports and Imports

Annual data on merchandise exports, imports and balance of trade since 2002-03 to 2009-10 are set out in Table-4.1.

Table 4.1

Exports, Imports & Balance of Trade (Values in US $ billions)

Year Exports Growth

Rate (%) Imports

Growth

Rate (%)

Balance

of Trade

2002-03 52.7 20.3 61.4 19.4 -8..7

2003-2004 63.8 21.1 78.2 27.3 -14.3

2004-2005 83.5 30.9 111.5 42.7 -28.0

2005-2006 103.1 23.4 149.2 33.8 -46.1

2006-2007 126.4 22.6 185.7 24.5 -59.3

2007-2008 163.1 29.1 251.7 35.5 -88.5

2008-2009 185.3 13.6 303.6 20.7 -118.3

2009-10 178.6 -3.6 286.8 -5.5 -108.2

Source: DGCI&S

Current Global Scenario

As per IMF’s World Economic Outlook October, 2012, prospects of growth of

world output has been reduced to 3.3 percent in 2012 and 3.6 percent in 2013.

Growth in advanced economies is projected to expand by 1.3 percent in 2012 and

1.5 percent in 2013. Correspondingly, for emerging economies the envisaged

growth rates are 5.3 percent and 5.6 percent respectively. However, for India these

numbers have been reduced to 4.9 and 6.0 per cent for years 2012 and 2013 (this is

as against the original estimate of 6.1 and 6.5 per cent respectively).

According to United Nation’s World Economic Situation and prospects 2013,

conditioned on a set of assumptions in the United Nations baseline forecast, growth

of world gross product (WGP) is expected to reach 2.2 percent in 2012 and is

forecast to remain well below potential at 2.4 per cent in 2013 and 3.2 per cent in

2014. At this moderate pace, many economies will continue to operate below

92

potential and will not recover the jobs lost during the Great Recession. As per this

report, India’s growth rate is likely to be 5.5% for 2012 and 6.1% for 2013.

Impact on Global Trade

The volume of world merchandise trade rose 5.0 percent in 2011,

accompanied by global output growth of 2.4 per cent. This marked a

significant slowdown from 201, when trade advanced 13.8 percent and output

expanded by 3.8 percent.

According to WTO Press Release dated 21st September, 2012, slowing global

output growth has led World Trade Organisation (WTO) to downgrade its

2012 forecast for world trade expansion to 2.5% in September, 2012 from

3.7% in April, 2012 and to scale back their 2013 estimate to 4.5% from 5.6%

for the same period. On the export side, developed economies’ trade is

anticipated to grow at 1.5% increase in (down from 2%) and a 3.5%

expansion for developing countries (down from 5.6%) is expected. On the

import side, nearly stagnant growth of 0.4% in developed economies (down

sharply from 1.9%) is forecast and a more robust 5.4% increase in

developing countries (down from 6.2%) is expected.

Implications for Asia

The economies in developing Asia have weakened considerably during 2012

as the region’s growth engines, China and India, both shifted into lower gear. A

significant deceleration in exports has been a key factor for the slowdown.

Domestic investment has softened markedly.

Asian economies increased by 6.6 per cent which was highest in all regions.

India had the fastest exporting major traders in 2011, with shipments rising 16.1

percent. Meanwhile, China had the second-fastest export growth of any major

economy at 9.3 per cent.

The scheme-wise performance in respect of major schemes being

implemented by the Department is given below:-

I. Assistance to States for Development of Export Infrastructure and

Allied Activities (ASIDE) Scheme:

Basic objective of the scheme is to involve the States / UTs in export efforts

by providing incentive-linked assistance to concerned Governments and to create

appropriate infrastructure for development and growth of exports. It has been

possible to achieve this in spite of various constraints as is evident from active

participation of States/UTs in sponsoring a large number of export related projects

for assistance from ASIDE Scheme. Efforts have also been made by them to

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leverage ASIDE funds for taking up several projects. Demands received far

outweigh availability of funds. Under the state component of the said scheme a

total number of 1371 projects worth Rs. 17622.18 crore have been approved by the

State Level Export Promotion Committees (SLEPCs) since 2002-03 to 2012-13 (as

on date). Out of this Rs. 5450.08 crore only has been proposed by State Govt./UTs

to be met from the ASIDE funds released to them under the state component and

the balance of Rs. 17077.17 crore have been/are being leveraged from State

Govt/UTs contribution and other sources identified by the State Govt./UTs.

Similarly in the Central Component a total of number 425 projects worth Rs. 2451.62

crore have been approved so far and out of that Rs. 1426.13 crore only has been/ is

to be funded from the central component of ASIDE scheme. Balance Rs. 1025.49

crore has been/is being leveraged from other sources including states, private

partnership and agencies of states. Thus in the project under central component of

the said scheme also it has been possible to involve states/central agencies.

During 2011-12, total numbers of projects approved by State Governments

under ASIDE scheme are 151 worth Rs. 1381.27 crore have been approved by the

State Level Export Promotion Committees (SLEPCs). Out of this Rs. 843.52 crore

only has been proposed by state govt./UTs to be met from the ASIDE funds and the

balance have been/are being leveraged from State Govt/UTs and other sources

identified by the State Govt./UTs.. Similarly in the Central Component a total of

number 33 projects worth Rs. 209.47 crore have been approved so far and out of

that Rs. 126.99 crore only has been/ is to be funded from the central component of

ASIDE scheme. Balance has been/is being leveraged from other sources including

states, private partnership and agencies of states.

The past performance of the scheme has been reviewed by IL&FS and as

per the Study Report submitted by them, some of the major achievements of the

scheme are as under:-

(i) ASIDE funds have been able to bring Economic and Social benefits like

growth in exports, growth in employment, growth in per-capita income and

increase in connectivity, the impact has been restricted to local or at the most

city level where such projects have been undertaken due to the fact that

contribution under ASIDE is extremely low vis-à-vis total infrastructure

development cost.

(ii) Investment in infrastructure has resulted in increase in exports as would be

evident from the fact that India’s exports has gone up from Rs. 208,978 crore

in 2001-02 to Rs. 456,422 crore in 2005-06 registering a compound annual

growth of 121%.

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(iii) Funding pattern in respect of various projects shows a healthy mixture of

ASIDE funds, State Government Funds, and Private Sector Participation, in a

ratio of 4:4:2 indicating successful leverage of funds.

A mid-term appraisal of scheme during 11th Five Year Plan has been commissioned

to IL&FS, the report has been received. Salient findings of this report are as under:-

(i) During current appraisal process it has been now established that there has

been an upswing in exports from States and in concomitance there has been

an upswing in allocation, sanction and utilization and number of projects

being implemented.

(ii) Exports have more than doubled in the last four years and although the

increase in exports cannot be attributed solely to ASIDE, the scheme has

contributed substantially and handsomely to export efforts. In fact, most of the

states are now warming up to the scheme having understood and grasped

benefits of leveraging ASIDE funds.

(iii) A quantum jump in allocation of funds is imperative if substantial

improvements are to be expected in infrastructure, and therefore, exports.

II. Special Economic Zones (SEZs)

Setting up of SEZs is one of the major initiatives undertaken by the

Department. The Special Economic Zones (SEZs) set up as enclaves, separated

from the Domestic Tariff Area by fiscal barriers, are intended to provide a duty free

environment for export production. There are seven EPZs set up by the Central

Government which were converted to SEZs upon announcement of the SEZ Policy.

Santacruz Special Economic Zone (SEEPZ SEZ)

The Santacruz Special Economic Zone was set up in September 1974 in 100

acres of land. At present, there are 336 units in operation in the zone. The export

performance of the zone since 2008-09 is given in Table 4.2.

Table 4.2 Export Performance by SEEPZ

(Rs. Crore)

Year Target Exports

2006-07 ---- 12,047.67 2008-09 ---- 10,134.00

2009-10 ---- 10,151.00

2010-11 ---- 11,582.00

2011-12 ----- 12,607.65

2012-13(Upto Oct., 2012) 10,384.50

Source: SEEPZ

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Noida Special Economic Zone

The Noida Special Economic Zone (NSEZ) was set up in 1985 in Noida

(U.P). This zone has been developed in a phased manner on 310 acres of land. At

present, there are 427 units in operation providing employment to 44071 persons.

The NSEZ is a multi product zone with units engaged in manufacturing of electronic

items, software products, engineering goods, gem and jewellery, toys, garments and

pharmaceuticals, Leather & Sports, Plastic & Rubber, and Food & Agro etc. The

export performance of the zone since 2008-09 is given in Table 4.3.

Table 4.3 Export Performance by NSEZ

(Rs. Crore)

Year Target Exports

2008-09 10,000.00 16,308.00

2009-10 9,000.00 8,560.27

2010-11 9,000.00 9,405.88

2011-12 1,000.00 10,820.11

2012-13(upto Dec., 2012) ------------ 5,440.12 (projected )

Source: SEEPZ

Kandla Special Economic Zone (KSEZ)

Kandla Free Trade Zone was set up in 1965 as Asia’s first export processing

Zone (EPZ) was converted into Special Economic Zone (KASEZ) with effect from

November, 2000. Kandla SEZ is situated in the Gulf of Kutch on the west coast of

India, at distance of only 9 kms away from the major port of Kandla, fully developed

all weather port. Mundra port with world class container terminal is only 60 kms

away. The Zone’s adjectives are earning foreign exchange for the country,

developing more employment opportunities. The zone has achieved all these

objectives in significant measures.

The total number of units operating in the zone are 185 and 15 are on the

approved list at various stages of implementation. New industries are coming up for

various products like auto components, drugs and pharmaceuticals, chemicals and

readymade garments. Developed plot and readymade sheds are made available to

them. The working unit includes those for manufacturing of engineering goods,

readymade garments, perfumes and cosmetics, castor oil products and plastic

products.

About 15 new units are expected to be added this year, increasing the

potential of exports over Rs. 1500 lakh and additional investment to the tune

of Rs. 3240 lakh. . The export performance of the zone since 2008-09 is given in

Table 4.4.

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Table 4.4 Export Performance by KASEZ

(Rs. Crore)

Year Target Exports

2008-09 ---- 2420.38

2009-10 ---- 2205.79

2010-11 ---- 2672.29

2011-12 ----- 2960.82

2012-13 (upto Dec., 2012) 2240.47

Source: SEEPZ

Madras Special Economic Zone (MEPZ SEZ)

MPEZ Special Economic Zone was established in May1984 as a Multi

product Export Zone with the main objective of augmenting exports and thereby

enhancing foreign exchange earnings by setting up Units inside the Zone. The Zone

ensure excellent infrastructure required for setting up industrial units, including

developed plots and modules in Standard Design Factory buildings for immediate

occupation. There are at present 114 active exporters within the Zone. The year-

wise exports from MEPZ SEZ since 2008-09 are given in Table 4.5.

Table 4.5

Export from MEPZ SEZ (Rs. Crore)

Year Target Exports

2008-09 4000.00 4139.15

2009-10 4600.00 5977.59

2010-11 ---- 9019.08

2011-12 ---- 10688.53

2012-13 (upto Dec., 2012) 8336.00

Source: MEPZ SEZ

Cochin Special Economic Zone (CSEZ)

CSEZ, a multi-product zone, came in to existence in 1984 and became

operational in 1986. It was converted into a Special Economic Zone on November 1,

2000. CSEZ stands out amongst the SEZs in India as having the best infrastructure.

It is the only Government owned SEZ in India distributing power within the Zone. It

has an integrated water management system comprising a 2.25 mld water supply

system and a 1.8 mld Common Effluent Treatment Plant. The Zone has round the

clock on-site Customs clearances. A VSNL 15 GBPS gateway is installed in the

Zone which provides internet connection through optical fibre cable to users. The

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Zone has state-of-art 1000 line telephone exchange, a video conferencing studio, a

foreign post offshore banking unit, a health dispensary and branches of State Bank

of India and Indus Bank with ATM facilities. CSEZ has also pioneered public-private

participation in infrastructure development. The year-wise exports since 2008-09 are

given in Table 4.6

Table 4.6

Export from CSEZ

(Rs. Crore)

Year Target Exports

2008-09 ---- 11,549.05

2009-10 ---- 17,003.53

2010-11 ---- 18,311.97

2011-12 ---- 29,961.61

2012-13(upto Dec., 2012) ---- 24,618.01

Source: CSEZ

Falta Special Economic Zone (FSEZ)

The Falta Special Economic Zone has been set up over an area of 280 acres.

The zone is engaged in manufacturing of electronic items, engineering goods, gems

& jewellery, readymade garments, rubber products, frozen foods, tea etc. The year-

wise exports from the zone since 2008-09 are given in Table 4.7.

Table 4.7 Export from FSEZ

(Rs. Crore)

Year Target Exports

2008-09 ----- 961.26

2009-10 ----- 1172.56

2010-11 ----- 14852.43

2011-12 ----- 1470.13

2012-13(upto Dec., 2012) ----- 582.92

Source: FSEZ

Visakhapatnam Special Economic Zone (VSEZ)

The Visakhapatnam Special Economic Zone was established in March, 1989

as a multi product Export zone. At present, there are 55 active exporters within the

zone. The year-wise exports from the zone since 2008-09 are given in Table 4.8.

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Table 4.8 Export from VSEZ

(Rs.Crore)

Year Target Exports

2008-09 850.00 901.84

2009-10 900.00 917.85

2010-11 1100.00 1583.00

2011-12 2000.00 2404.15

2012-13(upto Dec., 2012) ----- 2532.27

Source: VSEZ

In addition to the above mentioned 8 Central Government owned SEZs, 12

SEZs were set up by the State Governments/private sector prior to the coming into

force of the SEZ act, 2005.

After the coming into force of the SEZ Act, 2005 on 10th February 2006, 577

formal approvals (as on 20.01.2012) have been granted for setting up of Special

Economic Zones. Out of these, 385 SEZs have been notified and are in various

stages of operation.

Development of Infrastructure in Special Economic Zones

The capital outlay of Special Economic Zones for development of

infrastructure is funded under the Assistance to States for Developing Export

Infrastructure and Allied Activities (ASIDE) Scheme from 1.4.2002.

Employment in the SEZs

As on 31st December, 2012, the total direct employment in the SEZ sector is

estimated at 10, 19,146 persons. It includes incremental employment of 8, 84, 442

persons generated since February, 2006. The composition of total employment

generated in the SEZ sector is given in Table 4.9.

Table 4.9

Employment in SEZs (as on 31st Dec.2012)

Sl.No Category Employment (Nos.)

1. 7 Central Govt. SEZs 2, 21,833 persons

2. 12 Private/State Govt. new generation SEZs set up/notified prior to SEZ Act, 2005

93,087 persons

3. SEZs notified under the SEZ Act, 2005 7,04, 226 persons

TOTAL 10,19,146 persons

99

Investment in the SEZs

As on 31st December, 2012, the total private sector investment in the SEZ

sector in India is estimated at Rs.2, 38, 990.00 crore. Incremental private investment

after the SEZ Act, 2005 came into force, is estimated at Rs.2, 45, 595.31crore. The

composition of the total private sector investment (as on 31st December, 2012) is in

Table 4.10.

Table 4.10 Private Investment in SEZs (as on 31st Dec.2012)

Sl.No. Category Investment (Rs. Crore)

1. 7 Central Govt. SEZs 11,545.40

2. 12 Private/State Govt. new generation SEZs set up/notified prior to SEZ Act, 2005

8,525.42

3. SEZs notified under the SEZ Act, 2005 2,18,919.16

TOTAL 2,38,990.18

Exports from SEZs

As on 31st December, 2012, 154 SEZs have commenced exports. The

exports in the current year i.e. 2012-13 (up to 31st December, 2012) from the SEZs

in the country as a whole were of the order of Rs 3,53,194,90 crore as compared to

Rs 3,64,478.00 crore during the complete year of 2011-12. Exports from the

functioning Special Economic Zones during the last 5 years are as indicated in

Table 4.11.

Table: 4.11 Exports from the SEZs (2008-2009)

Year Value (Rs. Crore)

Increase (%) (Over previous year)

2008-09 99,689 50

2009-10 2,20,711 121

2010-11 3,15,867.85 43.11

2011-12 3,64,478.00 15.39

2012-13 (upto December, 2012) 3,53,194.90 35.34

100

III. Tea Board

REVIEW OF SCHEME WISE PERFORMANCE DURING 2012-13 (April 12-

December 2012)

Sl No Name of the XI Plan Schemes

XII Plan outlay (Rs in Crore)

XII Plan Physical Major Targets

Targets 2011-12

Achievements-2011-12

Targets 2012-13 (as per BE-12-13)**

Achievements-2012-13 (Upto 31

st

December, 2012)

Fin Phy Fin Phy Fin Phy Fin Phy

1 Plantation Development Scheme

400

Irrigation (ha) Field Mechanization Self-Help Group (Nos.) Extension Planting (ha)

13.00

1500 - 45 500

18.44

17905.4 - 98 653.24

10.00

4000 NQ 25 1500

8.10

1307.29 - 12 551.39

1.1 Special Purpose Tea Fund

Replanting (ha) Rejuvenation (ha)

60.00 (45.00+15.00)

6000 1000

43.16 6504.28 1113.26

60.00 6000 1000

42.49 2802.66 807.05

2.1 Quality Up-gradation & Product Diversification Scheme

300

Factory Modernization (units) Value Addition (units) Quality certification (units) Product diversification (units)

42.00

100 25 25 -

42.54

424 49 80 2

45.00 350 13 110

29.87 192 6 7

2.2 Orthodox Production Subsidy

Orthodox Production Subsidy (m. kg.) 33.00 80 72.32 90.19 25.00 95 19.00 35

3 Market Promotion Scheme

200

International Fairs & Exhibitions- 100 Nos.(for entire 12th Plan period )

15.00 14 19.02 225 26.00

13 + 2 International Exhibitions approved

19.90

12 International exhibitions

4. i. Human Resource Development

150

i. Health care: Drinking water- Sanitation Capital grant to Hospitals / clinics ii. Education: Educational stipend / uniforms /book grants etc. Capital grant to schools & hostels Assistance for organizing Bharat Scouts and Guides & sports activities in

5.00

1000 10 10 1000

4.66

0 1 1392 17 3773

12.00

Drinking water-3000 Sanitation - 1666 units Hospital grant - 12 Book Grant-20000 units

12.00

101

** The Financial target of Rs. 200.20 Cr which was based on Budget Estimate will have to be reduced if the Revised Budget Estimate remains at the intimated level of Rs. 164.67 Crore

plantation Districts Training: Training of small growers+ workers Training of garden managers

Training of Extension service providers to SHGs

Planters Productivity councils

4000 500 83 3

4500 500 20 7

5 iii. Research & Development

150

12.00 NQ 18.82 NQ 12.00 NQ 8.95

6 iv. Small Grower Development Scheme

200

New Planting (ha) Replanting(ha) Rejuvenation(ha) Irrigation(ha) Nos. of SGH/ Producers’ Society Setting up of new factories by SHGs Strenthening of field offices of Tea Board Field Mechanization

New schemes proposed for 12th

Plan

0.10

1300 200 300 1000 75 7 NQ NQ

0

7 v. National Programme for Tea Regulation

25

0.10 NQ 0

8 vi. Scheduled Caste-Sub Plan

0 10 420 9.31 420 10.00 2.74

vii. Total 1425 190.00 9.31

200.20

143.05

102

IV. Coffee Board

REVIEW OF SCHEME-WISE PERFORMANCE DURING 2010-11, 2011-12 & 2012-13 (April – Dec. 2012)

Sl. No

Name of Scheme/ programme

Objective/ Outcome

Physical Performance during 2010-11

Physical Performance during 2011-12

Physical Target during 2012-13

Physical Performance upto Apr.-Dec. 2012

Reason for variation

1 2 3 4 5 6 7 8

1 R & D for Sustainable coffee production

To increase coffee production, productivity and quality through sustainable research & develop- mental approach.

Production estimates – 3,02,000 MT Productivity – 838 kg. /ha.

Production estimates – 3,14,000 MT Productivity – 852 kg. /ha.

Production estimates – 3,10,000 MT Productivity – 841 kg. /ha.

3,15,500 MT (P) 855 kg. /ha.

On account of weather conditions, rainfall and pest & diseases during monsoon.

2

Development Support

To provide development support to enhance farm productivity through replanting, water augmentation, pollution abatement, coffee development in NE Region and NTA (Andhra Pradesh & Orissa), capacity building among various stake holders in the Indian coffee sector, welfare support to coffee sector workers and tiny coffee growers.

3 Market Develop-ment

To enhance domestic coffee consumption and carry out market research and intelligence and dissemination of information to stake holders

Domestic Consumption : 1,08,000 MT

Domestic Consumption : 1,15,000 MT

Domestic Consumption : 1,20,000 MT

--

Yet to be assessed.

4 Risk Management to coffee growers

To provide effective risk management aid to those coffee growers likely to be impacted by adverse rainfall.

Monsoon risk for about 19400 small growers of less than 10 ha. category have been covered benefiting around 24400 ha.

Small Growers : 6384 nos.

Small Growers : 5000 nos.

-- To be achieved in IV qtr.

103

5 Export Promotion of coffee

To enhance market share of value added and high value coffees in key overseas markets to augment export earnings and to enhance market share of Indian coffees in far off key international markets.

Export of coffee : Qty in MT: 2,99,725

Export of coffee : Qty in MT: 3,24,052

Export of coffee : Qty in MT: 2,97,800

Export of coffee : Qty in MT : 2,10,858 (P)

Likely to

achieve the target.

6 Support for coffee processing

To achieve value addition in coffee by supporting the processing activities and to support small and medium entrepreneurs for setting up quality coffee processing units.

Setting up -26 nos of Coffee processing units

Setting up- 33 nos of Coffee processing units

Setting up- 10 nos of Coffee processing units

Setting up - 5 nos of Coffee processing units

Achievement is likely

to improve.

7 Support for Mechanisa-tion of farm operations

To provide support to coffee growers to encourage the use of farm machineries to improve productivity and efficiency in carrying out crucial farm operations for coffee in time particularly in the context of farm labour.

Machineries – 1564 units.

Machineries – 18380 units.

Machineries – 8000 units.

Machineries – 3051 units.

Achievement is likely

to improve.

Production

The post monsoon crop estimates for the 2012-13 season has been placed at

3,15,500 MT consisting of 1,00,225 MT of Arabica and 2,15,275 MT of Robusta as

compared to the final crop estimates for 2011-12 season which was 3,14,000 MT

comprising of 1,01,500 MT of Arabica and 2,12,500 MT of Robusta.

The crop estimate projected for 2013-14 season is 3, 34,800 MT.

Exports

The quantity of coffee exported during 2011-12 was, 3, 24,052 MT valued at

Rs.4, 544.03 crore as against the total quantity of 2, 99,725 MT of coffee exported

during previous year valued at Rs. 3365.41 crore. The coffee exports during 2011-

12 have reached an all time record.

During the year 2012-13, the provisional exports as on 31.12.2012 is 2,

10,858 MT valued at Rs. 3,270.09 crore, as against the export target of 2, 97,800

MT.

The export target for the year 2013-14 is projected at 2, 56,000 MT.

104

V. Rubber Board

Key statistics on the NR sector from 2007-08 to 2011-12 are presented in the following table.

Table 2: Key statistics on the NR sector in India

Year Planted

area (ha)

Production (tonne)

Export (tonne)

Import (tonne)

Consumption (tonne)

2007-08 635400 825345 60353 86394 861455

2008-09 661980 864500 46926 77762 871720

2009-10 686515 831400 25090 177130 930565

2010-11 711560 861950 29851 190692 947715

2011-12 734780 903700 27145 213785 964415

There are more than one million small and marginal farmers with an average

size of holding of 0.54 ha engaged in rubber cultivation. The smallholding sector

accounts for 90 per cent of rubber planted area and 93 per cent of rubber

production.

Performance of NR sector in 2011-12

Rubber planted area in 2011-12 was 734,780 ha and tapped area extended

to 67% of the total. Production of NR in 2011-12 increased by 4.8% over that of

2010-11 to 903,700 tonnes while consumption of NR increased by 1.8% to 964,415

tonnes. NR consumption in tyre sector increased by 5.7% whereas the

consumption in non-tyre sector declined by 4.9%. The closing stock of NR in 2011-

12 was 236,275 tonne.

Table 3 Performance of NR sector in 2011-12

Planted area (ha) 734,780

Tapped area (ha) 490,870

Productivity (kg/ha) 1,841

Opening stock (tonne) 288,300

Production (tonne) 903,700

Consumption (tonne) 964,415

Import (tonne) 213,785

Export (tonne) 27,145

Closing stock (tonne) 236,275

105

Performance of NR sector in 2012-13

Monthly NR production had decreased in April and May 2012 due to adverse

weather conditions. However, during April-December 2012 NR production grew by

1.7%. Consumption of NR grew by 3.3% during April-December 2012. But

consumption of NR in November and December 2012 declined by 4% and 8%

respectively as compared to the same months in the previous year due to the impact

of economic recession. Import and export of NR during April to December 2012

were 173,422 tonnes and 10,782 tonnes respectively. Import of NR through duty

free channels accounted for 46% of the total during April-December 2012. The

estimated stock of NR at the end of December 2012 was 290,000 tonne.

Table 4. Projections and performance during 2012-13 (Tonne)

Major indicators Original projections

Revised projections (September 2012)

Revised Projections (January 2013)

April- December 2012

Production 942,000 930,000 920,000 693,200

Consumption 1006,000 1006,000 970,000 742,815

Import 150,000 160,000 200,000 173,422

Export 50,000 40,000 20,000 10,782

Stock at the end of the year

266,000 270,000 293,000 290,000

Projections for current year were revised based on the actual performance of

NR sector during April-December 2012. Projection of NR production is further

reduced to 920,000 tonnes and projection on consumption was revised downwards

to 970,000 tonnes. Projection on NR import was revised upwards to 200,000 tonnes

and that of export was revised as 20,000 tonnes. The projected closing stock of NR

in 2012-13 is 290,000 tonnes.

Projection for 2013-14

Production and consumption of NR in 2013-14 are projected at 960,000

tonnes and 1,020,000 tonnes respectively.

106

Review of past performance- Scheme-wise Physical Targets & Achievement

Schemes Major Physical Components 2011-12 2012-13

Target Achievement Target Provisional Achievement upto 31.12.12

Scheme 1 a) New Planting (ha) 2000 4806

9000 6028

Rubber Plantation Development Scheme (RPDS)

b) Replanting (ha) 6350 4488

c) Input Supply with price concession (ha) 20000 19000 20000 19000

d) Formation of New RPS/SHGs (No.) 150 127 50 67

e) Group Processing Centres (No.) 8 7 5 2

f) Apiculture (nos.) 3000 2593 2500 626

Scheme 2 a) Cross pollination (No.) 10123 11000 3811

Research

b) Testing of soil. leaf, latex, ethephon and rainguarding material (No.)

No target fixed

70015 90000 51244

c) Scientific and popular publications (No.) 115 60 189

Scheme 3 Technically Specified Rubber (TSR)

Processing Quality Upgradation & Product Development (PQUPDS)

a) Quality Upgradation (No.) 5 21 5 6

b) Modernisation (No.) 6 19 6 10

Rubberwood

a) Processing, value addition and quality improvement (No.) 4 2 4 2

b) Waste utilisation and management (No.) 2 2 2 0

Scheme 4 Rubber

Market Development & Export Promotion (MD&EP)

a) Godown - 100 MT (No.) 5 0 1 0

b) Strengthening RPS sector in marketing (No.) 11 25 11 12

Rubberwood

Rubberwood promotion – domestic (No.) 15 2 15 0

Export Promotion

a) Export of NR (tonnes) 50000 27145 20000 10782

b) Participation in international trade fairs (No.) 10 6 4 4

Scheme 5

Human Resource Development (HRD)

a) Training (no. of participants) 10020 11372 10020 7170

b) Labour Welfare Programmes (no. of beneficiaries) 26510 26930 21650 12019

Scheme 6 a) New Planting (ha) 7000 9795 7500 4006

Rubber Dev. in the NE Region (RDNE)

b) Input Supply with Price concession (ha) 5000 947 5000 0

107

VI. SPICES BOARD

Review of past performances:

Spices Board had been constituted on 26th February 1987 under the Spices

Board Act 1986 (No.10 of 1986) by merging the erstwhile Cardamom Board and

Spices Export Promotion Council with the responsibility of export development and

promotion of 52 spices listed in the schedule of the Act and the overall development

and marketing of both small and large cardamom. The programmes for development

of spices in North East, organic spices, and post harvest improvement as an export

enhancing measure are also undertaken by the Board.

Production of spices

Production development of cardamom (small & large) is looked after by

Spices Board and production development of all other spices is under the Union

Agriculture Ministry and the concerned State Agriculture/Horticulture Departments.

The Directorate of Arecanut & Spice Development, Calicut, monitors the Central

Sector Schemes of the Ministry of Agriculture on spices in this regard.

Cardamom (small & large)

The estimated production of cardamom (small & large) during the last three years is

given in table I and II

Table I

State-wise area and production of cardamom (small)

(Area in Hect. , Production in Tons)

State 2010-11 2011-12 2012-13[*]

Area Production Area Production Area Production

Kerala 41242 7935 41425 10222 41600 8400

Karnataka 25210 1710 25125 1911 25125 1470

Tamilnandu 4560 735 4560 842 4560 630

Total 71012 10380 71110 12975 71285 10500

(*) Preliminary crop estimation

108

Table II

State-wise area and production of cardamom (large)

(Area in Hect. , Production in Tons)

State 2010-11 2011-12 2012-13[*]

Area Production Area Production Area Production

Sikkim 23679 3310 23155 3234 22755 3483

West Bengal 3305 608 3305 626 3305 662

Total 26984 3918 26460 3860 26060 4145

(*) Preliminary crop estimation

Export of spices

The export of spices from India during the last few years is given below.

Export of spices from India

Year

Quantity (Tons)

Value (Rs.crores)

Value (US$ Million)

2005-06 350,363 2627.62 592.90

2006-07 373,750 3575.75 792.95

2007-08 444,250 4435.50 1101.80

2008-09 470,520 5300.25 1168.40

2009-10 502,750 5560.50 1173.75

2010-11 5,25,750 6840.71 1500.00

2011-12 5,75,270 9783.42 2037.76

2012-13 (APR-OCT] 3,85,915 5941.24 1079.78

Spices export from the country continued its momentum of growth and

recorded yet again a new peak both in quantity and value during the financial year

2011-12. The total export of spices during the period has also crossed US$ 2.0

billion mark. During the financial year 2011-12, a total of 5,75,270 tons of spices and

spice products valued Rs.9783.42 crore (US$ 2037.76 Million) has been exported

as against 525,750 tons valued Rs.6840.70 crore (US$ 1502.85 million) in 2010-11,

registering an increase of nine per cent in volume and 43% in rupee terms of value.

The increase in dollar terms over the previous year is 36%. Compared to the spices

export target of 500,000 tons valued Rs.6500.00 crore (US$1450 million) set for the

financial year 2011-12, the achievement is 115% in terms of quantity and 151 % in

rupee and 141% dollar in terms of value. The itemwise export of spices during Apr –

Mar 2011-12 and Apr – Oct 2012 is given in Table III:

109

Table III

Import of spices:

India is importing all spices mainly spices like pepper, fresh ginger, cassia,

clove, cardamom (large) etc. Pepper is mainly imported for the industrial purposes.

The estimated Import of spices during 2011-12 was 111,136 tons valued at 2094.48

crores (US$ 445.18 million) as compared to 86,775 tons valued at 1175.51 crores

(US$ 257.00 million) in 2010-11.

Item 2011-12

2012-13 (April-Oct 2012)

Quantity Tons

Value (Crores)

Qty Tons

Value (Crores)

Pepper 26,700 878.13 7850 325.43

Cardamom (small) 4,650 363.22 1075 93.24

Cardamom (large) 935 68.3 635 41.07

Chili 241,000 2144.08 160000 1299.13

Ginger 21,550 204.2 14650 108.49

Turmeric 79,500 734.35 43250 266.96

Coriander 28,100 164.02 20000 104.63

Cumin 45,500 644.42 39400 530.02

Celery 3,650 23.4 2050 13.34

Fennel 8,100 72.09 7525 57.39

Fenugreek 21,800 72.75 14500 51.39

Other seeds (1) 13,050 58.81 10200 59.74

Garlic 2,200 14.16 13000 36.06

Nutmeg & mace 3,620 240.98 2080 145.66

Other spices (2) 35,900 320.33 25350 194.46

Curry powders/paste 17,000 252.08 10050 159.32

Mint products (3) 14,750 2223.72 9430 1712.72

Spice oils & oleoresins

7,265 1304.38 4870 742.19

Total 575270 9783.42 385915 5941.24

Value in Million US$ 2037.76 1079.78

(1) include mustard, aniseed, ajwanseed, dill seed, poppy seed etc

(2) include tamarind, asafetida, cassia, saffron etc

(3) include mint oils, menthol & menthol crystal

110

Plan Schemes

Based on the proposals submitted by Spices Board the Government has approved the following six schemes for implementation for implementation during the XI Plan period.

1. Export oriented production and post harvest improvement of spices

2. Export development & promotion of spices

3. Export oriented research

4. Quality improvement and strengthening of quality evaluation laboratory

5. Human resource development & capital works

The Board had decided to discontinue the rejuvenation programme due to

lack of demand. The replantation programme is proposed to be continued during XII

plan also since it is an ongoing programme and it is merged with Export Oriented

production during XII plan.

The scheme for replantation and rejuvenation of pepper in Waynad district of

Kerala and NE region with a subsidy component of Rs.53.28 crores out of the total

outlay of Rs.100.81 crores has been approved in October 2009 for implementation

for five years. So far, an area of 8152 ha. has been covered during XI plan. It is

proposed to continue the programme during 2012-13 and 2013-14 with a physical

target of 3650 ha and 3150 ha respectively.

VII. Tobacco Board

Tobacco is an important commercial crop in India. The FCV tobacco is grown

principally in the states of A.P. 57%, Karnataka 42% and Maharashtra & Orissa

below 1%. The Board fixes the Flue Cured Tobacco crop size every year in

Karnataka, Andhra Pradesh, Maharashtra and Orissa states to match the demand

for the same both for domestic and export front.

Production:

FCV tobacco is the major tobacco variety exported accounting for 73% of the

total exports by volume and major type utilized upto 90% of total usage by the

domestic cigarette industry. The FCV tobacco is grown principally in the states of

Andhra Pradesh (57%), Karnataka (42%), Maharashtra and Orissa (below 1%)

The year-wise crop targets and actual production of FCV Tobacco products during the last four years are as given in Table

111

Table

Crop Season Target fixed (quantity in M. Kgs.)

(AP & KK)

Quantity Marketed (Quantity in M. Kgs.)

Marketed Value (Rupee in Crores)

2009-10 270.00 323.25 2944.44

2010-11 270.00 301.10 2968.46

2011-12 262.00 266.99 2510.77

2012-13* 268.00 44.19 536.29

*(as on 08.02.2003 for KK only and AP actions will commence in the month of

February, 2013)

Exports

The Board undertakes the following measures for sustaining and improving

the exports of Indian tobacco.

Participation in international trade fairs and exhibitions.

Intensive interaction at high level bilateral official meetings.

Undertaking an extensive advertisement campaign in the international print

media to create brand image for Indian tobacco.

Sponsoring trade delegations to various countries and inviting delegations

from abroad.

During 2011-12, a quantity of 240395 M.T. of unmanufactured tobacco and

tobacco products valued at Rs. 4100.30 crore (854.94US$) was exported as

compared to 154171 MT valued at Rs. 2523.14 crore(543.43 US$) exported during

the corresponding period of 2011-12(April-November, 2011).

During 2012-13 (April-November, 2012) a quantity of 169869 M.T. of

unmanufactured tobacco and tobacco products valued at Rs. 3053.29 crore (559.93

US$) was exported as compared to 154171 M.T. valued at Rs. 2523.14 crore

(543.43US$) exported during 2011-12(April-November, 2011).

Auctions:

Auction system for sale of FCV tobacco was introduced during 1984 in

Karnataka and during 1985 in Andhra Pradesh. At present, Board is conducting

auctions at 11 auction platforms in Karnataka and 20 auctions plat forms in Andhra

Pradesh.

The progress made in this regard is given below:

112

During 2011, the volume of 173.25 M.kgs of tobacco marketed with an

average price of Rs. 87.64 per kg in AP and the volume of 60.06 M.kgs of tobacco

marketed with an average price of Rs. 98.26 per kg in Karnataka.

During 2012, the volume of 162.70 M.kgs of tobacco marketed with an

average price of Rs. 94.90 per kg in AP and the volume of 44.19 M.kgs of tobacco

marketed with an average price of Rs. 121.39 per kg in Karnataka(as on

08.01.2013)..

Export Promotion Activities

With a view to promote exports of tobacco and tobacco products, the Board

participated in the following fairs and exhibitions during 2012-13:

Fairs & Exhibitions Abroad:

World Tobacco Middle East, Dubai, UAE during 2-3 April, 2012.

Inter-Tabac, Dortmund, Germany during 14-16 September, 2012.

World Tobacco Asia 2012, Jakarta, Indonesia during 19-21 September,

2012.

Trade Delegations Abroad:

Participation by Chairman, tobacco Board in GTNF 2012, Antwerp,

Belgium during 11-15 June, 2012.

The Board has issued advertisements in various internationally published

tobacco magazines for creating brand image for Indian Tobacco and tobacco

products.

VIII. Marine Products Export Development Authority (MPEDA)

EXPORT PERFORMANCEMARINE PRODUCTS EXPORTS CROSSED 3.5 BILLION MARK IN 2011-12

During the financial year 2011-12, for the first time in the history of Marine

product exports, the export earnings have crossed USD 3.5 billion. This is also first

time export has crossed all previous records in quantity, rupee value and US $

terms. Exports aggregated to 862021 tonnes valued at Rs. 16597.23 crores and

USD 3508.45 million. Compared to the previous year, seafood exports recorded a

113

growth of 6.02% in quantity, 28.65% in rupee and 22.81% growth in US$ earnings

respectively.

MARINE PRODUCTS EXPORT GROWTH IN US$ TERMS

The figures must be viewed in the light of the scenario of continuing

recession in the international markets, debt crisis in EU economies, continuing

antidumping duty in US, sluggish growth in US economy and the political instability

in the Arab world. The increased production of Vannamei shrimp, increased

productivity of Black tiger shrimp and better price realization of major items like

Shrimp, Squid and Cuttlefish helped us to gain such a higher export turnover.

Exports during 2011-12 compared to 2010-11

Export details 2011-12 2010-11 Growth %

Quantity Tonnes 862021 813091 6.02

Value Rs.crore 16597.23 12901.47 28.65

Value US $ Million 3508.45 2856.92 22.81

Marine Products Export Growth in US $ Terms

12531425

13311478

1644

1853 1899 1909

2133

2857

3508

0

500

1000

1500

2000

2500

3000

3500

4000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

US

$ M

in.

114

Major items of export

Frozen Shrimp continued to be the major export value item accounting for

49.63% of the total US $ earnings. Shrimp exports during the period increased by 24.86%, 42.97% and 37.99% in quantity, rupee value and US$ value respectively.

Fish, has retained its position as the principal export item in quantity terms and the second largest export item in value terms, accounted for a share of about 40.27% in quantity and 19.48% in US$ earnings.

Fr. Cuttlefish recorded a growth of 21.92% in rupee value and 15.58% in

USD terms. Unit value also increased by 25.06%, however, there is a decline in quantity (7.59%). Export of Fr. Squid showed an increase of 21.53% in rupee value and 17.46% in US$ realization. Unit value also increased by 32.95%. However, there is a decrease of 11.65% in terms of quantity.

Live items also showed a growth in quantity by 8.76% in terms of rupee value and 3.18 % in terms of US$ realization , however, shows a decline of 19.37% in terms of quantity compared to the previous year.

Exports during 2011-12 compared to 2010-11

862021

165972

350845

813091

129015

285692

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

Quantity Tonnes Value Rs.10 lakh US $ '000'

2011-12

2010-11

115

Dried items showed a drastic decline in quantity, value and USS terms by 32.05%. 41.08% and 44.56% respectively. The details are given in the following table:

MAJOR ITEM WISE EXPORTS

ITEM Share% 2011-12 2010-11 Variation (%)

FROZEN SHRIMP Q: 22 189125 151465 37660 24.86

V: 49.26 8175.26 5718.13 2,457.13 42.97

$: 49.63 1741.20 1261.81 479.39 37.99

UV$: 9.21 8.33 1 10.51

FROZEN FISH Q: 40 347118 312358 34759 11.13

V: 19.79 3284.15 2623.89 660.25 25.16

$: 19.48 683.50 583.48 100.02 17.14

UV$: 1.97 1.87 0 5.41

FR CUTTLE FISH Q: 6 54671 59159 -4488 -7.59

V: 8.11 1346.72 1104.57 242.15 21.92

$: 8.06 282.72 244.62 38.10 15.58

UV$: 5.17 4.13 1 25.06

FR SQUID Q: 9 77373 87579 -10207 -11.65

V: 7.40 1228.19 1010.57 217.61 21.53

$: 7.49 262.72 223.67 39.04 17.46

UV$: 3.40 2.55 1 32.95

DRIED ITEM Q: 6 53721 79059 -25338 -32.05

V: 3.39 562.65 954.94 -392.30 -41.08

$: 3.35 117.66 212.22 -94.56 -44.56

UV$: 2.19 2.68 0 -18.41

LIVE ITEMS Q: 0 4199 5208 -1009 -19.37

V: 0.93 154.61 142.15 12.45 8.76

$: 0.93 32.46 31.46 1.00 3.18

UV$: 7.73 6.04 2 27.98

CHILLED ITEMS Q: 2 21278 21118 160 0.76

V: 2.15 357.42 257.54 99.88 38.78

$: 2.11 74.03 56.93 17.10 30.03

UV$: 3.48 2.70 1 29.05

OTHERS Q: 13 114538 97145 17393 17.90

V: 8.97 1488.24 1089.67 398.57 36.58

$: 8.95 314.16 242.72 71.44 29.43

UV$: 2.74 2.50 0 9.78

TOTAL Q: 100 862021 813091 48931 6.02

V: 100 16597.23 12901.47 3,695.76 28.65

$: 100 3508.45 2856.92 651.53 22.81

UV$: 4.07 3.51 1 15.83

116

Item wise Exports 2011-12

(In Qty)

FROZEN SHRIMP

23%

FROZEN FISH

41%

FR CUTTLE FISH

6%

FR SQUID

9%

DRIED ITEM

6%

LIVE ITEMS

0%

CHILLED ITEMS

2%

OTHERS

13%

117

Major export markets

South East Asia became the largest buyer of Indian marine products with a

share of 39.90 % in volume and 25.09 % in US $ realization. European Union (EU)

got into the second place with a share of 22.96% followed by USA 18.17%, Japan

13.01%, China 7.51%, Middle East 5.33% and Other Countries by 7.95%.

Exports to South East Asia registered a growth of 87.51 % in US$

realization and 47.01% in terms of volume. Increase in export of Fr. Shrimp, Fr.

Fish and Chilled items contributed to the growth. Exports to US had registered a

positive growth of 36.45% in quantity and 45.39% in US$ realization and is mainly

attributed by the export of Fr. Shrimp and cephalopods. . Exports of Vannamei

shrimp showed a tremendous increase in US market by 212 % in quantity and

208% in US $ realization.

Export to Japan also registered a positive growth of 21.33% in quantity

and 22.35% in US $ terms. Exports of chilled items showed a tremendous increase

in Japanese market by 118.59% in quantity and 220.34% in US $ realization.

ITEM WISE EXPORTS 2011-12

( IN VALUE)

FR SQUID

7%

DRIED ITEM

3%

LIVE ITEMS

1%

CHILLED ITEMS

2%

FR CUTTLE FISH

8%

OTHERS

9%

FROZEN SHRIMP

50%

FROZEN FISH

20%

118

Exports to China showed a drastic decline of 46.89% in quantity and 40.17% in US$ terms. The marine products exports have strengthened India’s presence in South East Asia. There is a significant increase in exports to South East Asian Countries compared to the previous year.

Export of Fr. Shrimp to South East Asia has registered a growth of about 222.39% in volume and 356.21% in US$ terms. Export of Fr. Shrimp to USA has also showed a growth of about 47.67% in volume and 47.52% in US$ terms. Export of Vannamei shrimp had also picked up. We have exported about 40787 MT of Vannamei shrimp during this period.

Export to Middle East countries showed an increase of 25.98% in US$ realization but declined in quantity by 13.25%. The details are given in the following table.

MAJOR MARKET WISE EXPORTS

Q: Quantity in Tons, V: Value in Rs. Crore, $: US$ Million

Country Share % Apr-2011 -

Mar-2012 Apr-2010 -

Mar-2011 Variation (%)

JAPAN Q: 10 85800 70714 15085 21.33

V: 12.90 2,140.67 1,683.39 457.28 27.16

$: 13.01 456.35 373.00 83.36 22.35

USA Q: 8 68354 50095 18259 36.45

V: 17.94 2,977.53 1,990.26 987.26 49.60

$: 18.17 637.53 438.49 199.04 45.39

EUROPEAN UNION Q: 18 154221 170963 -16742 -9.79

V: 22.96 3,810.44 3,459.40 351.04 10.15

$: 22.96 805.38 765.15 40.23 5.26

CHINA Q: 10 84515 159147 -74631 -46.89

V: 7.59 1,259.23 1,977.81 -718.58 -36.33

$: 7.51 263.30 440.10 -176.80 -40.17

SOUTH EAST ASIA Q: 40 343962 233964 109998 47.01

V: 25.27 4,193.27 2,114.48 2,078.79 98.31

$: 25.09 880.09 469.36 410.73 87.51

MIDDLE EAST Q: 4 38155 43983 -5827 -13.25

V: 5.39 894.38 670.35 224.03 33.42

$: 5.33 186.85 148.31 38.53 25.98

OTHERS Q: 10 87014 84225 2789 3.31

V: 7.96 1,321.72 1,005.77 315.94 31.41

$: 7.95 278.94 222.50 56.44 25.37

Total Q: 100 862021 813091 48931 6.02

V: 100 16,597.23 12,901.47 3,695.76 28.65

$: 100 3,508.45 2,856.92 651.53 22.81

119

Market wise Exports 2011-12

(In Qty)

JAPAN

10% USA

8%

EUROPEAN UNION

18%

CHINA

10%

MIDDLE EAST

4%

OTHERS

10%

SOUTH EAST ASIA

40%

Market wise Exports 2011-12

(In Value)

JAPAN

13%

USA

18%

EUROPEAN UNION

23%

CHINA

8%

SOUTH EAST ASIA

25%

MIDDLE EAST

5%

OTHERS

8%

120

Outlook for 2012-13

MPEDA envisage an ambitious target of USD 4.2 Billion for the year 2012-13.

Increased production of L.vannamei shrimp and increase in infrastructure facilities

for production of Value added items are the helping factors to achieve the target.

IX. Agricultural and Processed Food Products Export Development Authority (APEDA)

Scheme-wise targets and achievements, Financial and Physical performance for the

year 2011-12, 2012-13 (till Dec., 2012) & targets for the year 2013-14 are as follows:

(Rs. in crores)

Name of the

scheme

Targets 2011-12

Achievements 2011-12

Targets 2012-13

Achievements 2012-13

(till Dec’ 2012)

Targets 2013-14

Fin Phy. Fin. Phy. Fin Phy. Fin Phy. Fin Phy.

Development of

Infrastructure

facilities

50.00 117 36.13 66 66.00 70 25-89 22 62.00 82

Research and

development

0.50 8 0.03 1 0.00 0 0 0 0.00 0

Quality

development

7.50 145 7.13 55 8.00 100 3-37 27 9.00 105

Market

development

23.00 151 17.82 135 23.00 190 11-92 90 29.00 240

Transport

assistance

99.00 230 95.88 360 89.00 300 51-34 210 116.00 335

Total 180.00 651 156.99 617 180.00 660 92-52 349

216.00

762

Scheme-wise objectives and achievements for the year 2011-12, 2012-13 &

performance targets for the year 2013-14are as follows:

1. INFRASTRUCTURE DEVELOPMENT

Development of a strong infrastructure is critical for the growth of agro

industries sector and export of agricultural products. The emphasis is primarily on

setting up of post harvest handling facilities so as to reduce losses caused due to

spoilage and to ensure quality production of agro products. This scheme seeks to

121

provide financial assistance to the exporters and export related government/

cooperative institutions for setting up of infrastructure such as cargo centers at

International airports & seaports and pack house facilities with packing/grading lines,

pre-cooling units, cold storages and refrigerated transportation etc. The high cost of

investment to maintain cold chain and its economic unavailability has always

restrained exporters to invest in post harvest handling Infrastructural facilities.

Therefore it has become imperative for APEDA to set up common facilities to

maintain cold chain and to improve the quality of the produce such as integrated

pack houses, (pre-cooling, cold storages and mechanized handling facilities),

perishable cargo handling centers at exit points like airports, seaports etc.,

This has helped in improving the quality of the perishables by maintaining

complete cold chain and enhanced credibility of agro exports from India.

The CPC projects at Nashik and Goa has been completed. APEDA is also

setting up of walk in cold room at Srinagar Airport. The equipment has reached the

site but AAI has advised that they will provide alternate location on airside. Till such

time the installation has to wait.

a. The Common Pack house facility for ginger in Assam has been completed.

b. Apart from this, pack house/ facilities i.e. pre-cooling, cold storage facilities

with mechanized handling systems are also being set up by individual

exporters for export of fresh fruits & vegetables.

c. Common laboratory facilities for export testing of pesticide residues, heavy

metals, aflatoxins, drugs and toxins etc. have been upgraded and set up with

APEDA’s financial assistance at NRC Grapes-Pune, CFTRI-Mysore,

AGMARK laboratory at Mumbai, Maharashtra Government laboratory at

Pune, IIIM, and Jammu.

d. Laboratory facilities are being set up at Herbal Research & Development

Institute, Gopeshwar (Uttarakhand) and will be completed in 2012-13. Apart

from this, private laboratories are being upgraded with APEDA’s financial

assistance for export testing of agro products.

122

Outcome of the Scheme:

The scheme has helped in integration of supply chain (cool chain) and

improvement of quality of fresh horticulture perishables like fruits, vegetables,

flowers, and processed food products etc., which has led to enhancement in the

export of APEDA monitored products. The quality of the produce has been widely

accepted in the European and other markets in developed countries. The export of

fresh grapes, honey, egg products and ground nuts to European market has been

possible due to the up gradation of Infrastructure facilities like laboratories and pack

house facilities in the major growing areas. The year-on-year growth in APEDA

products exports is also a result of continuous efforts to up gradate infrastructure

facilities by APEDA.

2. MARKET DEVELOPMENT

Good packaging is extremely important both in terms of quality of the product

as well as its image. It is, thus, necessary to encourage exporters to make use of

good quality packaging material. Similarly, compilation and consolidation of data is

very important for exporters to enable them to formulate export marketing strategies.

The marketing strategies are implemented through Market Development which

involves participation in International trade fairs, exchange of trade delegations and

conducting buyer seller meets etc. The scheme has helped in achieving the market

access in new markets and also to sustain the present level of exports in the

existing markets.

APEDA has initiated the following steps for market promotion of agro

products:

1. As result of APEDA’s effort the Australian market for Indian mangoes has

been opened in 2011-12 & 2012-13.

2. Efforts are being made constantly for opening up of Australian market for

Indian grapes, US market for grapes and Litchi, Chinese market for fruit &

vegetables & Korean market for walnuts.

3. Efforts are also being made to lift the ban on poultry products in Oman,

Kuwait, UAE and Saudi Arabia.

4. Efforts are also being made to open up markets like Russia and Kazakhstan

for Bovine meat and a FSVPS team was invited to visit India for the purpose.

123

Outcome of the Scheme:

The scheme has helped in achieving market access for export of Indian

mangoes into Japan, Grapes, Mangoes, Basmati rice and Bitter gourd into China.

A 3-member team from custom union/FSVPS visited meat processing plants

and laboratories in Oct., 2011. Further work is in progress and this will lead to

opening of custom union market for Indian bovine meat.

The participation in the International Trade Fairs has substantially helped in

incremental exports and also in developing new markets. The packaging of the agro

products has been substantially upgraded and improved under the scheme.

3. QUALITY DEVELOPMENT

The concept of food safety and quality is a growing global concern. Keeping

in view the growing global concerns for quality and phytosanitary requirements; it

has become essential to continue with the ongoing quality development scheme.

There is a need to promote exports in consumer packs and value added products.

To promote the export of organic products, we need to develop organic farming. In

view of the changes taking place in international trade, different systems are being

developed to improve quality of food products. The exporters have to comply with

the specific quarantine and technical requirements of the importing countries.

Hence, it is essential that financial assistance is given for the implementation of food

safety management systems like TQM, HACCP, BRC, EUREPGAP and ISO-

9001:2000 etc. to enhance the export capability and credibility of Indian agro

products.

The scheme has helped the exporters in certification of their manufacturing

units for HACCP, EUREP-GAP and ISO 9001:2000 systems etc. which has further

enhanced the acceptability of the Indian agro products in international markets.

In order to maintain our exports to European Union, we need to continue the

implementation of residue monitoring plan for honey, poultry products and grapes as

per their requirement.

To enhance the acceptability of Indian agro products in the international

markets, we have to promote implementation of HACCP, EUREP-GAP, TQM, ISO

9001:200 in processed food sector and fresh produce.

In-house laboratories of the exporters are also required to be upgraded for

on-going testing of products for exports.

124

ORGANIC PRODUCTION FOR EXPORTS:

a. Presently 24 certification bodies have been accredited under NPOP, 4 new

domestic bodies in 2012 (Biocert, Indore MPOSCA, Bhopal EIA, Delhi,

OSOCA, Bhubaneswar), As part of implementation of National Programme

Organic Promotion(NPOP) 22

b. APEDA has successfully achieved Equivalence agreement with European

Union and Switzerland.

c. APEDA has also completed the processes of conformity assessment by

USDA for organic products.

Outcome of the scheme:

The scheme has helped in improvement of the quality of agro products and

we have been able to meet out the food safety and hygiene requirements of the

importing countries. The export of honey, ground nuts, fresh grapes, poultry

products etc. has been possible to Europe only due to the implementation of residue

monitoring plans by APEDA as per the European Union requirements.

The export of processed food products, Basmati rice, fresh fruits and

vegetables and other products has steadily grown due to implementation of TQM,

HACCP, ISO – 9001: 2000, BRC and Eurep-gap etc. coupled with up gradation of

in-house laboratories.

4. TRANSPORT ASSISTANCE

Indian exporters of fresh perishables, processed food products, poultry

products, dairy products etc. have been facing the disadvantage of high freight rates

from India in comparison to the competing countries and our agro products have

become in-competitive. The export of horticultural perishables has been carried out

by air transport and airfreight rates are comparatively very high. In order to mitigate

the dis-advantage of high air freight and sea freight rates, it has become imperative

upon Govt. of India to provide transport assistance on selected fruits, vegetables,

flowers, poultry, dairy and other processed food products etc. for exports both by

sea and air to enable the agro products to compete in the international markets.

The scheme has helped in continues incremental exports in this sectors.

125

Outcome of the scheme:

The scheme has helped in incremental exports as export of fresh fruits and

vegetables, floriculture, dairy & poultry products and processed food products have

registered a constant growth during the Xth Five year plan. Transport Assistance

Schemes was approved for continuation in XIth Plan. Major benefit of the Schemes

as listed below has been achieved.

1. Exporters of identified products continue to face a transaction cost and

freight cost disadvantage vis-à-vis their international competitors. Hence

the TAS has helped to mitigate this disadvantage enhancing the overall

competitiveness of Indian agricultural product exporters.

2. TAS has helped in promoting exports of identified products where India

has strong export potential but so far has been unable to make a dent in

international markets due to the transaction/ freight cost disadvantage.

3. TAS has helped in promoting exports of value added processed products

rather than unprocessed low value products.

4. TAS has helped in the employment generation potential for these

commodities due to an increase in exports.

5. The Scheme is a medium term support to enable these eligible items to

gain a foothold in global markets.

X. Market Access Initiative (MAI) Scheme

The MAI scheme was launched in 2003 to act as a catalyst to promote India’s

export on sustained basis. The scheme is formulated on focus product – focus

country approach to evolve specific strategy for specific market and specific product.

The scheme was launched with a total outlay of Rs.552 crores during the Xth Plan.

However in view of the apparent short fall in achieving of financial target in the initial

years of the Xth Plan, the department held extensive consultations with the

stakeholders to evaluate the scheme in 2006. Based on the above, the revised

scheme was approved in December, 2006. Thereafter the present revised MAI

scheme was notified in January 2007.

The scheme was restructured to include enhancement of scope of the

scheme, increase in number of eligible agencies and increase in scale of

assistance. After the scheme was revised there is no short fall in respect of

126

achievement of physical and financial targets. The scheme is being continued in the

XIIth Plan with approved allocation of Rs.820 crores and no shortfalls in the physical

targets/actual achievements.

Under the scheme, assistance is extended to the Departments of Central

Government and organisations of Central/State Government, Export Promotion

Councils, Registered Trade Promotion organisations, Commodity Boards,

Recognised Apex Trade Bodies, etc. The activities eligible for financial assistance

under the Scheme are Marketing Projects Abroad, Capacity Building, Support for

Statutory Compliances, Studies, Project Development etc.

During the year 2011-13 (upto 31.12.20121), 158 projects/export promotion

events and studies/export promotion surveys were approved for assistance of under

the MAI scheme, by different Export Promotion Organisations/Trade Promotion

Organisations/National Level Institution etc. details of outlays allocated and actual

expenditure incurred under the scheme during the period 2008-09 to 2012-13 are as

under:

Outlay and Expenditure (Rs. In crore)

Year Outlay Actual Expenditure

2008-09 50.00 49.99

2009-10 64.00 64.00

2010-11 110.00 110.00

2011-12 149.99 149.99

2012-13 129.99 120.32 (upto 31.12.2012)

XI. Marketing Development Assistance (MDA) Scheme

To facilitate various measures being undertaken to stimulate and diversify the

country’s export trade, Marketing Development Assistance (MDA) Scheme is under

operation in the Department of Commerce. This non-plan scheme supports the

following activities:

Individual exporters for approved EPC/Trade bodies led export promotion

activities abroad.

127

Export Promotion Councils (EPCs) to undertake export promotion activities

for their products and commodities

Approved organisations/trade bodies in undertaking limited exclusive non-

recurring innovative activities connected with export promotion efforts for their

members.

Focus Area export promotion programmes in specific regions abroad like

Focus LAC Focus Africa, Focus CIS and ASEAN+2 programmes.

Residual essential activities connected with marketing promotion efforts

abroad.

During the year 2012-13 (upto 31.12.2012), 324 projects/export promotion

events were approved for assistance with funds, sanctioned under the MDA

scheme, by the Export Promotion Councils and other approved organisations/trade

bodies. During this year Export Promotion Council status was granted to Telecom

Equipment and Services EPC. Details of outlays approved and actual expenditure

under the MDA scheme during the period 2008-09 to 2012-13 are as under.

Outlay and Expenditure (Rs. In crore)

Year Outlay Actual Expenditure

2008-09 52.25 52.25

2009-10 53.00 53.00

2010-11 56.00 56.00

2011-12 49.99 49.99

2012-13 49.99 24.99 (upto 31.12.2012)

XI. National Export Insurance Account (NEIA)

A separate Fund with an approved corpus of Rs.2, 000 crore called the

National Export Insurance Account (NEIA) was set up in 2006, out of which Rs.886

crores have been funded by the Government so far. The present corpus of NEIA is

Rs. 1208.04 crore (constituting premium and interest accrued) which has been

invested in fixed deposits with banks.

The objectives of NEIA is to promote project export from India, which may not

take place but for the support of a credit risk insurance cover which the ECGC is not

in a position to provide because of its own underwriting capacity. The NEIA is

maintained and operated by a Public Trust set up jointly by the Department of

Commerce and ECGC.

128

The objectives of NEIA were expanded by the Government in December,

2008, in view of the Global Financial Crisis, to also provide for short term cover and

use of NEIA funds upto Rs.350 crore for the financial years 2008-09 and 2009-10, to

mitigate the effects of global financial crisis. During the year 2011-12, Rs. 6.78 crore

claim was paid to Indian exporter and bankers.

During the year NEIA guidelines were revised to provide risk cover for buyer

credits which may be extended by EXIM Bank to overseas agencies. Under the

revised guidelines projects which are backed by sovereign guarantees will be

covered upto 100% of value, without recourse, to eligible exporters.

XIII. Price Stabilization Fund Scheme (PSF)

The Price Stabilisation Fund Scheme was started from April 2003 with the objective

of providing relief to small growers when the prices of coffee, tea, rubber and

tobacco fall below a specified level, without resorting to the practice of procurement

operations by Government agencies.

As on 31.12.2012, 46243 growers have been enrolled under the PSF

Scheme, out of which 18919 are rubber growers, 11594 coffee growers and

15730 tea growers. Tobacco growers have expressed their unwillingness to

join the scheme. Based on Price Spectrum Band 2011, Tea, Coffee (Arabica and Robusta)

and Rubber have been classified under Boom Year due to good prices. Tea

is placed under NORMAL year category. Rs. 78.56 lakh is payable towards

assistance under PSF Scheme – PSB 2011 to eligible growers from Tea

Sector.

Cumulative committed financial assistance under PSF scheme stood at Rs

6.22 crore ( as detailed under), out of which only Rs.150.64 lakh have been

released till date due to default on the part of the growers.

Commodity PSB

2003

PSB

2004

PSB

2005

PSB

2006

PSB

2007

PSB

2008*

PSB

2009

PSB

2010*

PSB

2011

Total

RUBBER 0 0 0 0 0 0 0.95 0 0 0.95

COFFEE 0.82 0.58 0 0 0 0 0 0 0 1.40

TEA 0.09 0.73 0.74 0.75 0.77 0 0 0 0.79 3.08

TOTAL 0.91 1.31 0.74 0.75 0.77 0 0.95 0 0.79 5.43

* Boom year for all crops.

129

As decided in the 28th BOT meeting held on 20 October 2010 a final cut off

date of 15/12/2010 for release of assistance under PSB 2003 to 2007 (2008

was boom year for all the three commodities) was fixed. Hence, there is no

assistance pending for release to Growers for PSB 2003 to PSB 2008. Tea

Board has also been advised to send the claim for eligible growers under

PSB 2011.

XIV. Personal Accident Insurance Scheme (PAIS)

Personal Accident Insurance Scheme was introduced by PSF Trust, Department of Commerce, Government of India as a social security measure for the grower members of Price Stabilisation Fund Scheme in 2005 with a cover of Rs. 25, 000/- per grower. The PAI Scheme was modified between 2005 and 2008.

Scope of cover

The insurance covers death / disablement due to accidents caused by external violent and visible means e.g. fire, drowning, snake bite, road/rail accidents, electrocution, attack by wild animals. Sterilization risk is also covered. The scope of cover under Modified PAIS (in Rs.) is:

Premium

During 2012-13, annual premium is Rs 22.06, 50% of which is contributed by PSF Trust. As on 03.01.2013 an amount of Rs 10.06 lakh has been released to M/s

1. Death due to accident 1.00 lakh

2. Permanent total disablement due to accident 1.00 lakh

3. Loss of two limbs or two eyes 1.00 lakh

4. Loss of one eye and one limb 1.00 lakh

5. Loss of one eye or one limb 0.60 lakh

6. Compensation for loss of employment to workers due to major and serious accidental injury for a continuous period of three months or more

0.15 lakh or equivalent to three months prevalent wages whichever is lower.

130

Chola MS GIC Ltd. The details of persons covered since inception of PAI Scheme is as under:

Year No of Growers/ Workers

covered Partner Insurance Company

2004-05 23926 United India Insurance Co Ltd (01.01.2005 to 30.06.2006) 2005-06 27864

2006-07 44704 ICICI Lombard General Insurance Co Ltd (01.01.2006 to 30.09.2007) 2007-08 3505

2008-09 0

National Insurance Co. Ltd (09.02.2009 to 31.03.2011)

2009-10 50172

2010-11 135355

2011-12 60300 Cholamandalam MS GIC Ltd (19.05.2011 to 31.03.2013 2012-13* 91103

*as on 03.01.2013

436929

Claims Status for the Fiscal Year 2011-2012:

Board Claims

Total No. of claims

No. of claims settled/(Amount

paid)

No. of Claims rejected

Claims under

Process

Tea 16 6 (Rs.50635) 5 5

Coffee 1 - - 1

Tobacco 2 2 (Rs 200000) - -

Spices 1 1 (Rs.100000) - -

Rubber 12 8 (Rs 101571) - 4

32 17 (Rs.452206) 5 10

Claims Status for the Fiscal Year 2012-2013:

Board Claims

Total No. of claims

No. of claims settled/(Amount

paid)

No. of Claims rejected

Claims under

Process

Tea 14 1 (Rs 50,000) 2 11

Coffee - - -

Tobacco 3 2 (Rs 200000) - 1

Spices - - - -

Rubber - - - -

17 3(Rs.2,50,000) 2 12

131

Restructuring of PSF Scheme and proposal for Plantation Crop Insurance Scheme

Department of Commerce constituted High Powered Sub-committee under

chairmanship of AS( Plantations) on 27.10.2011

Committee met five times and finalised Modified Price Stabilisation Fund

(MPSF) Scheme and broad parameters of Plantation Crop Insurance

Scheme (PCIS)

DoC, GoI approved simultaneous implementation of MPSF and PCIS

CCEA note circulated for MPSF in Oct 2012, inviting comments of concerned

departments. A comment of concerned departments is under consideration of

DoC.

Draft Plantation Crop Specific Insurance Schemes finalised by Commodity

Boards and AICI is to be discussed in the 6th Sub Committee Meeting.

The Central Govt liability under PCIS over the five year implementation

period has been estimated at Rs 256.75 Cr. The year wise – crop wise breakup of

the Central liability is as under:

CENTRAL GOVT. PREMIUM LIABILITY - PCIS ( Rs. in Lakhs)

Year Penetration % Tea Coffee Tobacco Cardamom Rubber Total

1 10 421.84 679.97 240.62 125.89 1099.17 2567.48

2 15 632.76 1019.95 360.93 188.83 1648.75 3851.22

3 20 843.68 1359.93 481.24 251.78 2198.34 5134.96

4 25 1054.60 1699.91 601.55 314.72 2747.92 6418.70

5 30 1265.53 2039.90 721.86 377.66 3297.50 7702.44

Total 4218.42 6799.65 2406.19 1258.88 10991.68 25674.82

****

132

CHAPTER V

Financial Review

The total expenditure (Plan and Non-Plan) of the Department during the

financial year 2010-11 was Rs.5274.17 crore. As against this, the total expenditure

for the year 2011-12 was Rs.4443.60 crores compared to the Budget Estimate for

2011-12 was Rs.6511.58 crore and Revised Estimate for 2011-12 was Rs.4466.00

crore.

The Budget Estimate for the year 2012-13 was Rs. 5023.00 crore which was

revised for the year 2012-13 to Rs. 4708.00 Crore. As against this, the total

expenditure 20th February, 2013 was Rs. 4163.71 crore.

Revenue Section

Plan: During 2011-12, the Plan expenditure was Rs. 1059.67 crore as against

Rs.986.22 crore during 2010-2011. The provision in Budget Estimates for the year

2012-13 was Rs. 1128.32 crore and Revised Estimate was Rs. 973.85 crore.

Non-Plan: During 2011-12, the Non-Plan expenditure was Rs.2648.74 crore as

against Rs.3601.26 crore during 2010-2011. The provision in Budget Estimates for

the year 2012-13 was Rs.2923.00 crore and the Revised Estimate for the year 2012-

13 was Rs.2908.00 crore.

Capital Section

Plan: During the year 2011-2012, the Plan expenditure was Rs.735.19 crore as

against Rs.686.69 crore during the year 2010-11. The provision in Budget Estimates

for the year 2012-2013 was Rs.971.68 crore and provision in Revised Estimates for

2012-13 was Rs. 826.15 crore

Year-wise & scheme wise outlay of fund and expenditure:

Detailed account of outlay and expenditure for both Plan as well as Non-Plan

schemes of the Department during the XIth five year Plan & 2011-12, 2012-13

(expenditure up to 20.02.2013) , 2013-14(only outlay)& XII th Plan(Only Outlay) are

given in Table 5.1(Plan), Table 5.2(Plan – XIIth Plan Outlay, Annual Plan Outlay &

Exp. upto 20.02.2013) and Non Plan Schemes in Table 5.3 respectively.

133

Utilization Certificates (UCs)

There were 180 UCs outstanding as on 1.4.2012 involving Rs. 610 crore. 10

UCs have been received upto 25.02.2013 amounting to Rs. 138.00 crore and 170

UCs are outstanding as on 25.02.2013 involving Rs. 486.67 crore.

Opening Balances

The detailed statement for Outstanding Unspent Balance with the States

and implementing agencies as on 31.01.2013 is shown in Table 5.4

134

Table 5.1(Detailed account of Plan Outlay & Expenditure in r/o Department of Commerce)

(Rs. in crore)

Major 2007-12 2011-12 2012-13 2013-14

Head BE RE Actual BE RE Actual BE RE Actual as

on 20.02.13 BE

A Industry & Mineral Sector

1 Assistance for Developing Infrastructure & Other Allied Activities

For other than NER under head Major Works 5453 2920.94 2716.14 2717.60 730.96 556.94 559.55 666.00 521.50 461.13 640.00

For NER under head Major Works 4552 273.00 273.00 273.00 60.00 60.00 60.00 70.00 70.00 69.11 100.00

SCSP 5453 60.00 60.00 60.00 60.00 60.00 53.43 64.00 64.00 43.00 60.00

Total 3253.94 3049.14 3050.60 850.96 676.94 672.98 800.00 655.50 573.24 800.00

2 Agricultural Products Export Development Authority

Grants-in-aid 3453 237.00 251.00 235.75 55.00 55.00 39.75 55.00 52.00 52.00 55.00

Subsidies 3453 388.00 401.02 393.26 125.00 125.00 117.24 125.00 98.00 98.00 125.00

Total= 625.00 652.02 629.01 180.00 180.00 156.99 180.00 150.00 150.00 180.00

3 Marine Products Exports Development Authority

Subsidies 3453 470.00 460.50 460.13 110.00 110.00 110.00 110.00 95.00 69.00 115.00

4 National Export Insurance Account

Grants in aid 3453 640.01 640.01 640.00 0.01 0.01 0.00 30.00 30.00 30.00 30.00

5 Export Credit Guarantee Corporation

Investment 5465 201.02 100.02 100.00 0.01 0.01 0.00 100.00 100.00 100.00 100.00

Export Promotion, Quality Control & Inspection

6 Export Inspection Council

Grants-in aid 3453 52.75 58.58 55.07 8.00 8.00 7.99 8.00 6.28 6.28 8.00

7 Market Access Initiative

Grants-in-aid 3453 475.00 400.00 400.00 150.00 150.00 149.99 130.00 125.00 120.31 180.00

Other charges 3453 19.00 19.00 18.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 494.00 419.00 418.69 150.00 150.00 149.99 130.00 125.00 120.31 180.00

8 Center for WTO Studies

Other charges 3453 16.00 20.58 20.01 5.00 9.58 9.58 7.00 5.05 5.05 8.00

Assistance to Institutions

Grants-in-aid

9 Indian Institute of Foreign Trade 3453 85.78 50.14 40.66 50.00 12.85 12.50 40.00 34.00 21.00 60.00

10 Indian Institute of Packaging 3453 19.00 17.90 14.13 6.00 6.00 3.50 3.00 1.50 1.50 3.01

11 IIPM 3453 0.50 1.25 1.25 - - - - - - -

135

Major 2007-12 2011-12 2012-13 2013-14

Head BE RE Actual BE RE Actual BE RE Actual as on

20.02.13 BE

Total(Assistance to Institutions)= 105.28 69.29 56.04 56.00 18.85 16.00 43.00 35.50 22.50 63.01

Modernisation & Upgradation

12 Secretariat-Economic Services 3451 25.00 22.50 12.34 5.00 5.00 3.00 4.00 3.00 1.67 4.00

13 Director General of Foreign Trade

Other Administrative Expenses 3453 31.00 31.00 30.90 4.00 10.00 11.15 10.00 6.00 4.20 10.00

Niryat Bandhu Scheme 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 1.00 Office/Residential Building 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 2.97 Training/Capacity Building 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 1.00 Total(DGFT)= 31.00 31.00 30.90 4.00 10.00 11.15 10.03 6.00 4.20 14.97

14 DGCI & S

Other Administrative Works 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.00

Major Work 5453 28.00 89.28 82.79 10.00 10.00 3.10 4.65 3.65 0.61 3.00

Total(DGCI&S)= 28.00 89.28 82.79 10.00 10.00 3.10 4.65 3.65 0.61 6.00

15 FDDI

FDDI, Fursatganj, Major Work 5453 41.23 41.23 41.23 0.01 0.01 0.00 0.00 0.00 0.00 0.00 FDDI, Jodhpur, Major Work 5453 60.00 60.00 60.00 60.00 60.00 60.00 37.00 37.00 37.00 0.00

Footwear Design & Dev. Inst, Noida

Grants-in-aid-general 3453 15.00 18.12 18.12 1.00 4.13 4.13 0.00 0.00 0.00 0.00

16 Computerization in DGS&D

Other administrative Expenses/OE 2057 22.00 58.72 18.54 4.00 40.72 4.29 20.00 2.35 1.74 25.00

Gem & Jewellery Sector

Convention Centre in Mumbai 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.01

Common Facility Centre 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.48

Gem bourse in Jaipur 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.48

Gems and Jewellery Park in Mumbai 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.01

Jewellery Sector 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.02

Total( Gem & Jewellery Sector )= 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.00 0.00 1.00

Leather and Leather Products Sector

New Branches of FDDI 5453 0.00 0.00 0.00 0.00 0.00 0.00 30.01 30.00 20.00 108.50

Networking Centre (FDDI CNC) 5453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 1.00

Creation of Venture Capital Fund for Corporisation of leather Sector- Creation of Seed Fund

5453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.50

Total( Leather and Leather Products Sector )= 0.00 0.00 0.00 0.00 0.00 0.00 30.03 30.00 20.00 110.00

Pharma Sector

Venture Capital Fund 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00

136

(Rs. in crore)

Major 2007-12 2011-12 2012-13 2013-14

Head BE RE Actual BE RE Actual BE RE Actual as on

20.02.13 BE

Biosimilar/Bioequivalent Studies 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.01

Total( Pharma Sector )= 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.01

Total( A- Industry & Mineral Sector)= 6080.23 5789.99 5693.46 1444.99 1276.75 1209.20 1513.75 1284.33 1141.60 1644.99

B Agricultural Sector

17 Tea Board

Subsidies 2407 235.00 291.05 266.90 61.00 117.15 117.15 96.00 79.17 72.00 110.00

Grants-in-aid: (R&D) 2407 81.00 88.00 75.74 4.00 4.00 3.74 4.00 4.00 3.00 4.00

Subsidies to small growers 2407 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Subsidies to NER 2407 310.00 310.00 278.00 82.00 82.00 82.00 82.00 61.50 61.50 42.00

Grants-in-aid to NER 2407 49.00 49.00 46.84 8.00 8.00 7.84 8.00 6.00 6.00 8.00

SCSP -Subsidies 2407 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 1.67 20.00

Small Growers Development Scheme 2407 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00

Implementation of regulatory Provision of Tea Act including e-auction and allied activities

2407 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00

Contribution to SPTF 4407 60.00 45.00 45.00 15.00 0.00 0.00 0.00 0.00 0.00 0.00

Total(Tea Board)=

745.00 793.05 722.48 180.00 221.15 220.73 200.20 160.67 144.17 190.00

Tea Plantation Fund

Grants-in-aid: Tea development fund 2407 67.80 74.00 63.74 0.00 6.20 6.20 0.00 0.00 0.00 0.00

-67.80 -74.00 -57.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00

18 Coffee Board

Subsidies 2407 204.50 187.50 168.28 43.50 43.50 43.50 48.50 43.50 36.38 40.00

Grants-in-aid-General 2407 203.75 207.73 209.93 51.00 51.00 51.99 56.00 56.00 42.01 47.00

Grants-in-aid-General(NER) 2407 17.00 14.00 13.96 4.00 4.00 3.00 4.00 4.00 3.01 15.00

Subsidies to NER 2407 14.50 11.50 8.14 1.50 1.50 1.50 1.50 1.50 1.13 8.00

SCSP -Subsidies 2407 5.00 5.00 5.00 5.00 5.00 5.00 5.00 0.00 0.00 5.00

Total= 444.75 425.73 404.01 105.00 105.00 104.99 115.00 105.00 82.53 115.00

19 Rubber Board

Grants-in-aid-General 2407 499.50 486.57 486.57 125.50 104.57 104.57 125.50 110.50 110.50 120.00

Subsidies (NER) 2407 134.50 147.00 147.00 34.50 44.50 44.50 34.50 29.00 29.00 40.00

SCSP-Grants-in-aid-General 2407 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Statistical and Information Services and e-governance

2407 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.01

Total(Rubber Board)= 644.00 643.57 643.57 170.00 159.07 159.07 170.04 149.50 149.50 170.01

137

(Rs. in crore) Major 2007-12 2011-12 2012-13 2013-14

Head

BE RE Actual BE RE Actual BE RE Actual as

on 20.02.13 BE

20 SPICES BOARD

Grants-in-aid-General 2407 148.00 158.00 158.00 36.00 36.00 36.00 36.00 36.00 36.00 41.00

Subsidies 2407 158.00 161.60 160.98 49.00 49.00 49.00 49.00 49.00 49.00 49.00

Grants-in-aid: NER 2407 17.00 17.00 17.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00

Subsidies (NER) 2407 17.00 17.00 16.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00

SCSP-Grants-in-aid-General 2407 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

SCSP -Subsidies 2407 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

Total(Spices Board)= 345.00 358.60 356.98 100.00 100.00 100.00 100.00 100.00 100.00 105.00

21 Cashew EPC

Grants-in-aid-General 2407 5.00 9.02 9.02 0.00 4.02 4.02 1.00 0.50 0.00 1.00

22 Crop Insurance 2407 11.02 1.03 0.00 0.01 0.01 0.00 0.01 0.00 0.00 0.00

Total(B-Agricultural Sector)= 2194.77 2231.00 2142.26 555.01 589.25 595.01 586.25 515.67 476.20 581.01

Grand Total(Department of Commerce)= Grant-11 8275.00 8020.99 7835.72 2000.00 1866.00 1804.21 2100.00 1800.00 1617.80 2226.00

138

TABLE 5.2

11th

& 12th

Year Five Year-wise vis-a-vis year-wise (2011-12, 2012-13, 2013-14) Plan Outlay and Exp. (Rs. In crore)

11th

Plan(2007-12) 12th

Plan Outlay (2007-12) 2011-12 2012-13 2013-14

Outlay Actuals Outlay Outlay Actuals Outlay Actuals (as on 20.02.2013

Outlay

A Industry & Mineral Sector

1 Assistance for Developing Infrastructure & Other Allied Activities

3253.94 3050.60 5775.00 850.96 672.98 800.00 573.24 800.00

2 Agricultural Products Export Development Authority

625.00 629.01 1100.00 180.00 156.99 180.00 150.00 180.00

3 Marine Products Exports Development Authority

470.00 460.13 750.00 110.00 110.00 110.00 69.00 115.00

4 Export Credit Guarantee Corporation 201.02 100.00 800.00 0.01 0.00 100.00 100.00 100.00

5 National Export Insurance Account 640.01 640.00 300.00 0.01 0.00 30.00 30.00 30.00

6 Export Inspection Council 52.75 55.07 60.00 8.00 7.99 8.00 6.28 8.00

7 Market Access Initiative 494.00 418.69 820.00 150.00 149.99 130.00 120.31 180.00

8 Center for WTO Studies 16.00 20.01 45.00 5.00 9.58 7.00 5.05 8.00

Assistance to Institution

9 Indian Institute of Foreign Trade 85.78 40.66 100.00 50.00 12.50 40.00 21.00 60.00

10 Indian Institute of Packaging 19.00 14.13 70.00 6.00 3.50 3.00 1.50 3.01

Modernisation & Up gradation

11 Secretariat-Economic Services 25.00 12.34 11.00 5.00 3.00 4.00 1.67 4.00

12 Director General of Foreign Trade 31.00 30.90 268.00 10.00 11.15 10.00 4.20 14.97

13 DGCI & S 28.00 82.79 26.00 5.00 3.10 4.65 0.61 6.00

14 FDDI((Fursatganj), Major Work 41.23 41.22 0.00 0.01 0.00 - 0.00 0.00

15 FDDI, Jodhpur, Major Work 60.00 60.00 37.00 60.00 60.00 37.00 37.00 0.00

16 FDDI, Noida 15.00 18.12 0.00 4.13 0.00 0.00 0.00

16 (a)Computerization in DGS&D 22.00 18.54 20.00 4.00 4.29 20.00 1.74 25.00

(b)E-Procurement MMP-DGS&D 0.00 0.00 61.00 0.00 0.00 0.00 0.00

17 Gem & Jewellery Sector 0.00 0.00 395.00 0.00 0.00 0.05 0.00 1.00

18 Leather and Leather Products Sector 0.00 0.00 500.00 0.00 0.00 30.03 20.00 110.00

19 Pharma Sector 0.00 0.00 20.00 0.00 0.00 0.02 0.00 0.01

Total – (A)-I&M Sector)= 6079.73 5692.21 11158.00 1444.99 1209.20 1513.75 1141.60 1644.99

B Agricultural Sector 1 Tea Board 745.00 728.68 1425.00 180.00 226.93 200.20 144.17 190.00

2 Coffee Board 444.75 404.01 950.00 105.00 104.99 115.00 82.53 115.00

139

(Rs. in crore)

11

th Plan(2007-12) 12

th Plan Outlay (2007-12)

2011-12 2012-13 2013-14

Outlay Actuals Outlay Outlay Actuals Outlay Actuals (as

on 20.02.2013

Outlay

3 Rubber Board 644.00 643.57 910.00 170.00 159.07 170.04 149.50 170.01

4 Spices Board 345.00 356.98 670.00 100.00 100.00 100.00 100.00 105.00

5 Cashew EPC 5.00 9.02

30.00

0.00 4.02 1.00 0.00 1.00

6 IIPM 0.50 1.25 0.00 0.00 0.00 0.00 0.00 0.00

7 Crop Insurance 11.02 0.00 0.00 0.01 0.00 0.01 0.00 0.00

Total – (B)-Agriculture Sector)= 2195.27 2143.51 3985.00 555.01 589.25 586.25 476.20 581.01

Grand Total(Department of Commerce)=

8275.00 7835.72

15143.00 2000.00 1804.21 2100.00 1617.80 2226.00

140

Table 5.3 (Detailed account of Non Plan Outlay & Expenditure in r/o Department of Commerce)

(Rs. in Crore)

Major 2007-12(11th

Plan) 2011-12 2012-13 2013-14

Head BE RE Actual BE RE Actual BE RE Actual (as on 20.02.2013)

BE

1. Secretariat-Economic Services 3451 251.75 260.72 257.79 63.47 63.47 59.64 65.57 65.55 58.00 60.50

Foreign Trade and Export Promotion

2. Trade Commissioners 3453 468.49 483.40 468.20 110.81 110.81 114.13 112.25 124.65 113.76 121.35

3. Director General of Foreign Trade 3453 301.96 337.74 336.98 83.32 83.32 81.08 87.00 92.61 79.54 95.40

4. Assistance for Export Promotion and Market Development

4.01 Export Subsidy 3453 8058.27 9989.69 8700.19 3000.00 931.42 1021.21 1300.00 1262.30 1013.61 1300.00

4.02 Grants in aid to Export Promotion and Market Development Organisation

3453 271.00 266.25 263.49 50.00 50.00 49.99 50.00 39.50 24.75 50.00

4.03 Interest Subsidy to Banks 3453 1250.00 2650.00 2650.00 1000.00 996.00 996.00 1000.00 1000.00 1000.00 1200.00

Total= 9579.27 12905.94 11613.68 4050.00 1977.42 2067.20 2350.00 2301.80 2038.36 2550.00

5 Development of Free Trade/ Export Processing Zones/Special Economic Zones

5.01 Kandla SEZ 3453 35.22 41.93 40.30 9.81 9.81 8.57 9.00 8.80 7.21 9.55

5.02 Electronics (SEEPZ) SEZ 3453 34.17 37.31 37.02 6.66 6.66 7.29 7.70 7.50 6.22 8.10

5.03 Falta SEZ 3453 17.79 19.27 16.76 3.75 3.75 3.08 3.80 4.00 3.40 4.30

5.04 Chennai SEZ 3453 26.10 26.41 27.38 5.53 5.53 5.69 6.25 6.48 5.68 6.65

5.05 Cochin SEZ 3453 23.54 25.08 22.05 6.30 6.30 5.42 6.40 6.30 5.05 6.80

5.06 Noida SEZ 3453 31.00 33.10 31.80 6.30 6.30 6.31 6.65 7.61 5.61 8.25

5.07 Visakhapatnam SEZ 3453 19.03 20.54 20.98 4.60 4.60 5.28 5.70 6.30 5.63 6.80

5.08 Indore SEZ 3453 3.71 4.22 4.48 1.15 1.15 1.23 1.32 1.48 1.23 1.60

5.09 Jaipur SEZ 3453 2.34 2.36 2.05 0.57 0.57 0.53 0.60 0.58 0.47 0.63

5.10 Manikanchan SEZ, 3453 3.06 3.07 2.71 0.72 0.72 0.61 0.70 0.67 0.58 0.73

5.11 Moradabad SEZ 3453 1.66 1.57 1.40 0.37 0.37 0.33 0.40 0.38 0.28 0.40

5.12 Maha Mumbai SEZ 3453 2.20 1.83 0.73 0.48 0.48 0.34 0.45 0.52 0.38 0.57

5.13 Jodhpur SEZ 3453 1.87 1.88 1.43 0.46 0.46 0.37 0.47 0.45 0.37 0.50

5.14 Surat SEZ 3453 1.23 1.50 1.22 0.46 0.46 0.29 0.40 0.45 0.44 0.48

Total(SEZ)= 202.92 220.07 210.31 47.16 47.16 45.34 49.84 51.52 42.55 55.36

6 Agricultural Products Export Development Authority

3453 3.00 3.50 3.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00

141

Table 5.3(Detailed account of Non Plan Outlay & Expenditure in r/o Department of Commerce) (Rs. in crore)

Major 2007-12(11th

Plan) 2011-12 2012-13 2013-14

Head

BE RE Actual BE RE Actual BE RE Actual (as on

20.02.2013) BE

7 Marine Products Exports Development Authority

3453 27.00 27.00 26.41 5.00 5.00 5.00 5.00 4.00 2.50 5.00

8 Other Schemes of Foreign Trade & Export Promotion

8.01 Directorate General of Commercial Intelligence & Statistics.

3453 88.10 96.05 93.04 23.96 23.96 22.66 24.40 24.13 21.63 25.74

8.03 Contribution to International Organisations

3453 85.25 90.75 61.68 20.00 24.00 19.53 24.00 28.00 19.05 32.00

8.04 International conferences 3453 3.10 3.85 3.14 0.50 0.50 0.27 0.50 0.50 0.00 0.50 8.09 Others 3453 8.79 7.90 6.29 1.40 1.40 1.23 1.40 2.25 1.10 1.40 8.10 Director General Trade Remedies 3453 9.50

9 Commodity Boards 9.01 Tea Board 2407 98.60 130.71 130.71 9.10 38.10 38.10 39.00 37.00 29.26 39.00 9.02 Rubber Board 2407 62.24 95.24 95.24 6.74 36.74 36.74 37.50 35.50 35.50 37.50 9.03 Coffee Board 2407 135.49 466.19 466.18 7.41 97.41 97.41 39.80 47.15 29.85 39.80 9.04 Spices Board 2407 9.35 18.35 18.35 9.35 6.35 9.35 9.35 9.00 9.00 9.35

Total(Commodity Boards)= 305.38 710.49 710.48 32.60 181.60 181.60 125.65 128.65 103.61 125.65 11 Other Schemes of Plantation

11.01 Price Stabilisation Fund 2407 0.25 0.55 1.52 0.13 0.13 0.03 0.13 0.03 0.00 0.10 11.02 Payment to PSFT under PS Scheme 2407 4.50 4.50 1.17 4.50 4.50 1.17 4.50 4.50 0.00 6.27

2407 -4.50 -4.50 0.00 -4.50 -4.50 0.00 -4.50 -4.50 0.00 -6.27 13 Supplies & Disposals

13.01 01-DGS&D 2057 322.37 374.44 346.94 80.23 89.65 71.08 76.26 83.31 64.81 81.50 02-Less: Receipts 0.00 -9.42 -9.42 0.00 -9.42 -9.42 0.00 0.00 0.00 0.00 Grants-in-Aid-Export to Cuba 282.00 0.00 124.73 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Grand Total(Commerce)= 11929.63 15512.98 14255.84 4511.58 2600.00 2661.54 2923.00 2908.00 2545.91 3165.00

142

State Wise Unspent balance (Actual) as on 31.1.13 for the Scheme for Central Assistance to the States for Developing Export Infrastructure and Other Allied Activities (ASIDE)

Table 5.4 (Rs. in crore)

Andhra Pradesh

Arunachal Pradesh

Assam Bihar Chandigarh Chhattisgarh Goa Gujarat Haryana Himachal Pradesh

J&K Sikkim Tamil Nadu

0 1.38 0 0 1.40 0 0 0 0 0 5.51 0 0

Kerala Madhya Pradesh

Maharashtra Manipur` Meghalaya Jharkhand Mizoram Nagaland Orissa Punjab Rajasthan Pondicherry

0 0 0 0 0 5.49 0 0 0 0 0 1.37

Tripura UP Uttaranchal WB Karnataka A&N D&N Haveli Daman & Diu

Delhi Lakshadweep Total

0 0 0 0 0 0.57 1.50 3.34 0.00 0.00 13.67

Unspent Balance for the ASIDE Scheme- Central Sector

(Rs. in crore)

APEDA Border Road Org.

Chennai Port Trust

CSEZ Engg. EPC Kol.

CONCOR Council for Leather Exports

DC(SSI) DM North 24 Pargana

Handloom EPC

EPC Handicrafts

FSEZ FDDI, Noida

0.00 0 0.00 0 0 0.00 0 0.86 0 0 0 0 0

ILFS ITPO KSEZ MSEZ G&J EPC Rubber Board

MMTC NIFT NSEZ RITES MP. SEDC Bhopal

Mani SEZ Kol

MPEDA

0 0 0 0 0.00 0 0.00 0 0 0.00 0.00 0

DOC Govt. of Kerala

Govt. of West Bengal

GNIDA HRDI HPSIDC IDI J&KSIDCL MPAKVNL NCTI Proj. EPC STCL Ltd. TNWICL, Chennai

0.15 0 5.00 6.00 2.40 5.40 0 5.00 0 0.00 0.00 0.00 0.00

NMPT M’lore

PSIEC CWC Cashew EPC

SEEPZ SIDICO Sikkim

Spices Board

VSEZ WEFPI& HDC.Kol

WE TPO Govt. of Gujarat

Govt. of Mizoram

Govt. of Tripura

0.00 0 0 0 0 0 0 0 1.84 0.00 4.50 0 4.00

Tea Board Govt. Of Meghalaya

Total

0 1.44 29.24

143

CHAPTER VI

REVIEW OF PERFORMANCE OF AUTONOMOUS AND STATUTORY BODIES

(A) Autonomous Bodies

(B) Public Sector Undertakings

I. State Trading Corporation of India Ltd. (STC)

STC, set up on 18th May 1956, has played an important role in country’s

economy. It has arranged imports of essential items of mass consumption (such as

wheat, pulses, sugar, edible oils, etc.) into India and developing exports of a large

number of items from India. STC is today able to structure and execute trade deals

of any magnitude, as per the specific requirement of its customers.

The overall performance of STC during 2010-11, 2011-12 and April-

December, 2012 vis-a-vis figures for April-December, 2012 and estimates for 2012-

13 is given below:

Table: 6.1

Performance of STC

(Rs. in Crore)

April – December

2010-11 2011-12 Provisional 2012-13

Actuals 2012 2011 (Estimates)

Exports 492 344 687 257 1400

Imports 18938 29961 13081 24409 16500

Domestic 555 139 70 107 100

Total Turnover 19985 30444 13838 24772 18000

Profit Before Tax 80 18 10 21 14

Performance: 2011-12

Total Turnover

The Corporation achieved the highest ever turnover of Rs. 30, 444 crore

during 2011-12 thereby exceeding the previous year’s turnover by 52%.

Exports

During 2011-12, the Corporation made exports worth Rs. 344 crore with iron ore

being the single largest export item with an all-time high sale of Rs. 195 crore.

Other major items handled were rice, castor oil, maize and molasses.

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Imports

The Corporation attained an all time high import turnover of Rs. 29961 crore

during 2011-12. Bullion continued to occupy the foremost position on import front

with highest ever sales of Rs. 17905 crore as compared to Rs. 14964 crore in the

previous year. During 2011-12, the Corporation continued to arrange supplies of

imported thermal coal to NTPC, which resulted in sales worth Rs. 9885 crore. It

also imported 5.6 lakh MT of urea valuing Rs. 1393 crore on the directives of the

Government of India. The Corporation imported edible oils both on its own account

as well as for the state governments for distribution to the weaker section under

Public Distribution System (PDS) resulting in overall sales of Rs. 484 crore. The

Corporation also imported and sold pulses worth Rs. 205 crore on behalf of

Government of India.

Domestic Sales

During 2011-12, the corporation effected total domestic sales worth Rs. 139

crore contributed mainly by oils, seeds jute goods, coal, pulse and tea. During the

year, the Corporation undertook, though on a modest scale, stock and sale of soya

bean, mustard seeds and desi chana and also opened retail outlets for sale of own

brand “STC Tea” in southern India in 250 grams packs.

Profitability

During 2011-12, STC earned a Profit Before Tax (PBT) of Rs. 18 crore. The

profitability of the Corporation remained under strain due to thin trading margins,

high interest costs and provisioning/write offs in certain cases.

Dividend

The Corporation paid a dividend of 20% of its paid-up equity capital for the year

2011-12.

Performance: April – December, 2012

Total Turnover

The Corporation achieved a turnover of Rs.13838 crore during April-Dec.,

2012 as against Rs. 24773 crore in April-Dec., 2011.The decline is mainly due to

lower imports of coal and bullion.

Exports

Total exports of the Corporation at Rs. 687 crore during April-Dec., 2012 were over

2.5 times the exports achieved during corresponding period of previous year.

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During the period, the Corporation undertook exports of wheat out of Central Pool

stocks as one of the nominated agencies of the Government of India. Total

contracting of wheat stood at 6 lakh MT as on 31.12.2012 against which shipments

worth Rs. 650 crore have already been made. The Corporation also exported rice

amounting to Rs. 30 crore and manufactured products worth Rs. 6 crore. Total

exports of the Corporation would have been higher but for high export duty and

restrictions on mining and transportation of iron ore imposed by various state

governments resulting in no exports of iron ore during the current financial year as

against Rs. 114 crore in April-Dec., 2011.

Imports

The import turnover of the Corporation for the period April.-December, 2012

amounted to Rs. 13081 crore. Lower import turnover is mainly attributable to

reduced imports of bullion and coal. These two items contributed Rs. 22311 crore

in the import turnover during the previous year which fell to Rs. 7669 crore during

the current year – a decline of over Rs. 14600 crore. Coal imports decreased by

Rs.7962 crore and bullion imports by Rs. 6680 crore.

Bullion continued to be single largest item of import with sales valuing Rs.

7533 crore. However, the volume of bullion business was significantly lower as

compared to sales valuing Rs. 14213 crore made during April-Dec., 2011 due to

increase in customs duty on gold and silver leading to reduction in import demand.

The Corporation continued to import urea on behalf of the Government and

arranged imports amounting to Rs. 4964 crore during April-December, 2012 as

against imports worth Rs. 1394 crore during the same period last year.

Import of coal was drastically lower at Rs. 136 crore due to a change in the

system for import of coal by NTPC whereby its per plants are now individually

importing coal to meet their requirements and inability of the Corporation to get a

share of non NTPC coal business. During April-Dec., 2011, The Corporation had

imported about Rs. 8100 crore worth of coal for NTPC. Edible oils worth Rs. 367

crore were imported during April-Dec., 2012 as against Rs. 369 crore during the

same period last year. Pulses and manganese ore worth Rs. 26 crore and Rs. 25

crore respectively were also imported during the period April-Dec., 2012.

Domestic Sales

During April-Dec., 2012, sales by the Corporation amounted to Rs. 70 crore

mainly accounted for by oilseed/extractions (Rs. 30 crore), jute goods (Rs. 12 crore)

and pulses (Rs. 25 crore).

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Profitability

During period under review, STC earned a Profit Before Tax (PBT) of Rs.10 crore.

Notable Achievements during 2012-13

All time high urea imports – full year turnover estimated at Rs. 5000 crore

(Previous year – Rs. 1400 crore).

Quantum jump in agricultural exports – full year turnover estimated at Rs.

1400 crore (Previous year – Rs. 150 crore).

Turnover excluding bullion and coal estimated at Rs. 7300 crore for full year –

about 2.75 times the corresponding figure of Rs. 2650 crore in the previous

year.

II. Minerals and Metals Trading Corporation (MMTC)

MMTC Ltd was incorporated in the year 1963 for trading in minerals and

metals. It is actively involved in exploring overseas markets for exports and

sourcing material for domestic needs. With focus on bulk operations and having

infrastructure spreading across the country, MMTC has primarily six core commodity

groups’ viz., fertilizers, Agro commodities, coal and hydrocarbons, minerals &

precious metals. The company is recognized as India’s largest international trading

company and the first Public Sector Undertaking to be awarded “Premier Trading

House” status in the country.

The summary of financial performance of MMTC Limited for the period

ending December, 2012 is given below in table 6.2.

Table 6.2

Financial Performance of MMTC (Rs. in Crore)

Trade Performance

MOU 2012-13 Prop. Target Apr-Dec.’12

Actual Apr-Dec’12

Increase (%)

Excellent Rating Excellent Rating

Exports 3500 2625 1477 (44)

Imports 64750 48563 16168 (67)

Domestic 3150 2362 3483 (47)

Total Turnover 71400 53550 21128 (61)

Profit Before Tax 111 83 94 13

Profit After Tax 75 56 (73) (230)

Net Profit To Turnover (%)

0.11 0.11 (0..34) (409)

Source: MMTC

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The highlights of the financial performance of MMTC during 2012-13 are as

follows:

The Company has achieved a turnover of Rs. 21,128 crore for period ended

on 31 December, 2012 against MOU target of Rs. 53,550 crore falling short of the

target by 61%. In one segments of trading business, namely, domestic trade, the

company has witnessed growth as compared to proportionate MOU targets to the

extent of 47%. Net profit at Rs. (73) crore has a shown a decrease of 230% as

against the MOU target of Rs. 56 crore.

Subsidiary/Associates

MMTC Transnational Pte. Ltd. (MTPL), Singapore:

The wholly owned foreign subsidiary was set up in the year 1994 for

promoting international trade. During April-Sept., 2012 it has achieved a business

turnover of USD 392 million. MTPL continues to enjoy “Global Trader” status

awarded to it by IE Singapore. To expand and give impetus to growing trade

between India and Africa, MMTC has opened an office at Johannesburg, South

Africa in January, 2011.

Neelachal Ispat Nigam Limited (NINL):

Neelachal Ispat Nigam Limited, a company promoted by MMTC, IPICOL,

NMDC, MECON etc., has set up an iron & steel plant of 1.1 million tonnes capacity,

coke oven of 0.8 million tone capacity along with a by-product plant, captive power

plant of 62.50 MW etc., with total expenditure of Rs 2,000 crores at Kalinganagar,

District Jajpur, Orissa. During this period also, NINL maintained its position of being

the largest Pig Iron producer & exporter in the country.

The total turnover and cash profit/loss of the company for the half year was

Rs. 768 crore and Rs. 16.98 crore respectively. Construction of Phase II expansion

of Plan of NINL for steel making facility (Billets, wire rods) is under progress.

Other Projects

Aiming at diversification and with a view to add value to its existing trading

operation, the Company has undertaken various strategic initiatives following

public-private partnership route. These strategic initiatives are aimed to enhance

future sustainability include:

Commodity Exchange under the name and style of “Indian Commodity

Exchange (ICEX)” which has commenced operations during November,

2009.

Participation in equity of Currency Exchange under the name and style of

“United Stock Exchange of India Ltd.” which has commenced operations

during September, 2010.

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Joining hands with an international producer as a joint venture partner for

setting up a gold/silver medallion manufacturing unit, which would also

include a gold refinery as an integral part, under the name and style of

“MMTC-Pamp India private Limited”. The civil construction activities for

medallion manufacturing unit located in Haryana are already complete and

the trial production for minting of medallions commenced.

For promoting retail sales of value added products like medallions, silverware

and jewellery on all India basis, MMTC has set up a joint venture “MMTC

Gitanjali Private Limited” . The JV commenced operation in April 2009 and

17 showrooms are operational in different cities in India under the Brand

name “SHUDHI”.

Setting up permanent berth with loading facilities for Iron ore at Ennore Port

jointly with M/s SICAL and L&T Infrastructure under the name and style of

M/s. SICAL Iron Ore Terminals Limited, Chennai.

Development of deep draught iron ore berth at Paradip Port jointly with Noble

Group Ltd and Gammon Infrastructure Projects Ltd. under the name and style

of M/s. Blue Water Iron Ore Terminal Private Limited.

Towards investing in mining infrastructure MMTC has promoted a joint

venture Company with M/s. TATA Steel Ltd. for exploration and development

of mines for minerals, ferrous and non-ferrous ores, precious metals,

diamonds and coal etc.

MMTC has been allotted a coal mine in Jharkhand having estimated reserves

of about 700 million MT. The prospecting license for the said mine has been

issued by the concerned authorities and pre-feasibility study commenced.

III. Project and Equipment Corporation of India Ltd.(PEC)

PEC Limited was formed on 21st April, 1971 as a wholly owned subsidiary of

STC. PEC Limited became an independent Company under the Department of

Commerce w.e.f. 27th March, 1991.

Activities

PEC is primarily engaged in export of projects, engineering equipment and manufactured goods, defence equipment & stores and import of industrial raw materials, bullion and agro commodities.

Consolidation of existing lines of business and simultaneously developing new products and new markets.

Diversification in export of non-engineering items e.g. coal & coke, iron ore, edible oils, steel scraps, etc.

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Counter trade/special trading arrangements for further exports.

Objectives

To be a profit oriented international trading organization.

To provide adequate return to the stakeholder, commensurate with the

market expectations.

To seek new opportunities in the global and domestic market.

To focus on export of engineering projects and equipment especially from

small and medium enterprises.

To trade in commodities such as agricultural products, industrial raw

materials, chemicals and bullion.

To continuously strive for enhancement of the corporate image of a reliable,

long term and professionally competent organization.

To continuously strive for improvement in productivity and competitiveness.

To serve as an effective instrument of public policy and social responsibility.

Performance

Table: 6.3

The Overall Performance of the Corporation since 2010-11 is given below:

(Rs. On crore)

Items 2010-11 2011-12

20121-13

MOU Targets

2012-13

Achievement

(Provisional)

upto

30.09.2012

2013-14

MOU

Targets

(Projected)

Sales Turnover 9969.94 11026.27 11500.00 *5000.00 12000.00

Income 146.40 159.73 170.80 75.00 180.35

Expenditure 39.84 41.20 51.40 26.00 55.35

Profit before Tax 106.56 118.53 119.40 49.00 125.00

Profit after tax 70.92 79.55 77.40 35.85 83.10

Dividend & Corporate tax 17.43 17.43 18.00 8.72 17.43

Equity 20.00 20.00 20.00 20.00 20.00

Reserves 265.51 327.63 377.48 349.87 449.06

Net Worth 285.51 347.63 397.48 369.87 469.06

* Includes Bullion – Rs. 30.00 crore.

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Sales Turnover

Table: 6.4

The Sales turnover of the Company since 2010-11 is given below:

(Rs. in crore)

Year Sales Turnover

2010-11 9969.94

2011-12 11026.27

2012-13(Prov. Upto 30.09.2012) 5000.00

During the year 2011-12, PEC has achieved sales turnover of Rs. 11026.27

crore as compared to Rs. 9969.94 crore in the previous year, an increase of 11%.

Consequently, the Profit before tax increased to Rs. 118.53 crore from Rs. 106.56

crore, an increase of 11%. The Profit after tax increased to Rs. 79.55 crore as

compared to Rs. 70.92 crore in the previous year, recording an increase of 12%.

The earnings Per Share (Basic & diluted) was Rs. 398 during the year 2011-

12 as compared to Rs. 355 in the previous year.

MOU rating for 2011-12 is ‘Excellent’.

During the year 2012-13, as against MOU target of Rs. 11500.00 crore, the

Company has registered a turnover of Rs. 5000.00 crore upto September, 2012 and

as per current expectations, it is estimated to achieve a total turnover of Rs.

10500.00 crore.

Exports

Table: 6.5

The item-wise composition of exports since 2010-11 is given below:

(Rs. Crore)

Item 2010-11 2011-12 2012-13

Provisional

Upto

30.09.2012)

Agro commodities 553.81 622.18 486.00

Minerals (Iron Ore) 552.87 391.55 52.00

Engineering & Manufactured Goods 26.42 20.88 11.00

Others 3.15 2.12 1.00

T O T A L 1136.25 1036.65 550.00

Export sales aggregated to Rs.1036.55 crore during the year 2011-12.

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During the year, PEC continued its efforts in maintaining is potential export

markets such as Bhutan, Nepal, Bangladesh, Sri Lanka, Mauritius, Ethiopia, Kenya,

Liberia, Mauritania, etc. The Company has secured contracts from Bhutan, Nepal,

Kenya, Ethiopia and Liberia for supply of transformers, stay rods, conductors,

cables, transmission and distribution hardware, insulators etc.

Agro business continues to be key contributor to the growth of the

corporation. PEC exported rice, wheat and soya meal during the year. Other major

exports were iron ore fines to China, home appliances & spares and medical

equipment to various nations.

Imports

Table: 6.6

The item-wise composition of imports since 2010-11 is given below:

(Rs. in Crore)

Item 2010-11 2011-12 2012-13

Provisional upto

30.09.2012

Agro Commodities 2530.25 1775.13 1175.00

Industrial Raw material 3987.97 5242.02 2370.00

Bullion (including Diamond) 1311.26 971.35 50.00

Engineering & Manufactured Goods 69.16 149.08 100.00

Others 8.16 53.72 25.00

T O T A L 7906.80 8191.30 3720.00

During the year 2011-12, PEC achieved import turnover of Rs.8191.30 crore.

Bullion import aggregate to Rs. 971.35 crore during the year.

PEC undertook bulk import of coal, manganese ore, industrial chemicals,

diamonds, etc. during the year.

Agricultural commodities like edible oil, pulses, jute were also imported during

the year.

During the year, contracts for import of new chemicals & resins, namely

LUPOL-Polycarbonate and Poly Propylene, were also executed.

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Domestic Trade

Domestic sales during the year almost doubled to Rs. 1798.32 crore from Rs.

926.89 crore in the previous year. The domestic sales include coal, steel, cotton

seeds , edible oil, cotton yarn, defence stores and other miscellaneous items.

Dividend

During the year 2011-12, PEC has paid dividend and tax thereon of Rs.

17.43 crore at the rate of 75% on the share capital of Rs.20 crore.

MOU rating for 2011-12 is “Excellent” (Provisional). MOU for the year 2012-

13 has been signed with the Ministry of Commerce & Industry.

Key Initiatives

PEC continues with its commitment to promote export of engineering and

manufactured goods.

Over the years, business of PEC has changed with industrial raw materials,

agro commodities and bullion constituting major part of its turnover and profit. Some

of the key initiatives have been consolidation of existing line of business and

selective diversification into sustainable business areas, improving operational

efficiency and cost effectiveness.

PEC continues to strive in its efforts to capture new opportunities in

international as well as domestic trade to sustain. PEC looks forward optimistically

to achieve targets in future.

PEC has sought to be adaptable, anticipating and responding to the changing

needs of the economy, dynamic business environment and public policy. PEC

believes in innovation to enhance the range of products and services.

PEC has developed our business to serve diverse needs of the trade and

economy. Given the volatile operating environment, the focus was on capital

conservation, liquidity management and risk containment.

Corporate Social Responsibility

PEC has set aside a budget of Rs. 2.10 crores for its CSR activities for the

year 2012-13. Under its CSR activities PEC has undertaken projects, as per DPE

guidelines, for the education of physically and mentally handicapped children, solar

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lighting in rural areas, sponsoring mid-day meal scheme, provision of hand-paddled

tricycles and fitment of foot/limbs and calipers to differently-abled/ bilateral polio

patients and/or amputees, vocational education program for underprivileged women,

Camps for Prevention of Avoidable Blindness and Visual Impairment among other

projects.

Sustainable Development

PEC has allocated a budget of Rs. 40 lakhs towards Sustainable

Development Initiatives for the financial year 2012-13. The projects/activities

undertaken in the year 2012-13 include Contribution towards Tiger Protection Fund,

Construction of Rain Water Harvesting Pits, Deep Aquifer Recharge through the

Technology of Recharge Shaft Planting of Trees through External Agency and

Training to employees on Sustainable Development.

IV. Spices Trading Corporation of India Ltd (STCL)

STCL was originally incorporated in the name and style as “Cardamom

Trading Corporation Limited” as a Private Limited Company under the Companies

Act 1956 in October 1982. Consequent to the change of name, the Company

obtained a fresh certificate of incorporation under the name of SPICES TRADING

CORPORATION LIMITED with effect from August 1987 in order to widen its

marketing base from Cardamom to other range of spices.

Thereafter, STCL became a subsidiary of The State Trading Corporation of

India Ltd., with effect from 14.9.1999 and shares held by the Ministry of commerce

were transferred to the State Trading Corporation of India Ltd.

With the diversified trading activities, the company’s name has been further

amended from Spices Trading Corporation Limited to “STCL LIMITED” and fresh

Certificate of Incorporation under the name of STCL Limited has been obtained with

effect from August 13, 2004.

Objectives

To trade in spices, other agricultural commodities, fertilizers, pesticides in the

domestic as well as global markets.

To develop core competitiveness in selected areas and exploit the market opportunities in these areas to the best advantage of the Company and to lay emphasis on quality of services to its Clientele in the long-term business relationship.

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To promote sale/export of Indian spices and other Agricultural commodities.

To make optimum utilization of infrastructure available with the Company.

To strive to pay adequate returns to the parent company (The State Trading Corporation of India Limited).

To fulfill Company’s social responsibility by following ethical business practices and reinforcing commitment to customers, employees, partners and communities.

To undertake on a continuous basis training/re-training of existing manpower and induct professionally qualified young talent so as to create a cadre of highly professional and motivated managers.

To become a credible company of international standards of corporate governance and offer quality services.

Share Capital

The Share Capital of the company as laid down in its amended Memorandum of

Association is Rs. 5,00,00,000/- (Rupees Five Crores), divided into 5,00,000/- equity

shares of Rs. 100/- each (Five Lakhs equity shares of Rs. One hundred) .The Paid

up Share Capital of the Company as on today is Rs. 1,50,00,000/-(Rupees one

Crore fifty lakhs) comprising of 1,50,000 equity shares.

Achievements:

During the Financial Year 2011-12, the Company has achieved a turnover of

Rs. 127.77 crore. The company is estimated to achieve turnover of Rs. 108.75

crore during 2012-13.

Service to Farmers

The presence of STCL in Plantation areas in the State of Karnataka and

effects of distribution of fertilizers, agro chemicals and other inputs

manufactured by reputed companies at competitive prices and thus the

farmers interests are not exploited by the middlemen and traders. The timely

supply of fertilizers helped the farmers in carrying out their fertilizer

application/operations on time, which has boosted their productivity /

production.

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STCL is regularly conducting cardamom Auctions and due to the good

auctioning practices adopted; the growers are assured of realizing

reasonable price for their produce. The auction practices followed are also

benchmark for other auctioneers.

V. National Centre for Trade Information (NCTI)

The National Centre for Trade Information (NCTI) was incorporated on 31st

March, 1995 as a Company under Section 25 of Companies Act, 1956. The

Company started functioning w.e.f. March 1996. It has a Board of Directors for

administration of its affairs, which includes representatives from Ministry of

Commerce & Industry, National Informatics Centre (NIC), Indian Institute of Foreign

Trade (IIFT), and Directorate General of Commercial Intelligence & Statistics

(DGCI&S).

The ITPO and NIC are co-promoters of the Company and have contributed a

sum of Rs.4.00 crore (Rs.2.00 crore each) as Corpus Fund in the equity contribution

of the Company. The ITPO provides fully furnished office space and the NIC

provides the software and hardware against their equity contribution in kind.

The Centre provides value added information in the field of electronic trading

opportunities, live trade leads from World Trade Point Federation (WTPF), trade

data analysis and organize export awareness seminars and update/upload

information on its website. The Centre uploads 52 issues of E-weekly ‘Trade Point-

India’ annually on its website containing approximately 250 Trade Leads each week.

Studies undertaken

ASEAN FTA/PTA Work

GCC FTA/PTA

India-Chile FTA/ PTA

Trade data analysis for WTO Division

India-MERCOSUR FTA/PTA

India-New Zealand FTA/PTA

Study under ‘Duty Free Tariff Preference (DFTP) Scheme

Trade Data Analysis of Agriculture items for APEDA

Trade data support for AEPC

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Other major activities

• Setting up and Operationalization and Management of Computerized Trade

Information Centre (CTIC) at Dharwad for Visvesvaraya Industrial Trade

Centre, Bangalore

• Electronic Trading Opportunities (ETO) service to APEDA, NSIC and VITC,

Bangalore.

• Trade data support for AEPC.

• Development and maintenance of websites, Creation of databases and

conducting feedback surveys for ITPO events.

• Trade leads and trade data support to Govt. and Public Sector Organisations

and SMEs etc.

VI. India Trade Promotion Organization (ITPO)

The Trade Fair Authority of India (TFAI) and the Trade Development

Authority (TDA) were merged together in 1992 and the new organization was

renamed as India Trade Promotion Organisation (ITPO). ITPO is the premier trade

promotion agency of India and provides a broad spectrum of services to trade and

industry so as to promote India’s exports. These services include organisation of

trade fairs in India and abroad, Buyer-Seller Meets and Business Meets &

Conventions, Contact Promotion Programmes apart from information dissemination

on products and markets. With its Headquarters at Pragati Maidan, New Delhi and

regional offices at Bangalore, Chennai, Kolkata and Mumbai; ITPO ensures

representative participation of trade and industry from different regions of the

country in its events in India and abroad.

Financial Highlights During 2012-13, ITPO’s total income would be Rs.301.50 Crore (provisional)

as compared to Rs.373.79 Crore in 2011-12 while the total expenditure is

anticipated at Rs.191.50 Crore (provisional) as against Rs.190.76 Crore incurred in

2011-12. ITPO is anticipating a surplus of Rs.110.00 Crore (provisional) during the

year 2012-13 as compared to actual surplus of Rs.183.03 Crore in 2011-12.

Fairs in India India Trade Promotion Organization (ITPO) organized specialized events

during 2012-13. During the period from 1.4.2012 to 31.12.2012, ITPO organized

India International Leather Fair, Pragati Maidan, New Delhi, Aahar-the International

Food Fair, Chennai, 18th Delhi Book Fair, Pragati Maidan, New Delhi, 14th Stationery

Fair, Pragati Maidan, New Delhi, 15th India International Security Expo, Pragati

Maidan, New Delhi, 32nd edition of India International Trade Fair (IITF-2012). Other

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regular events of ITPO namely India International Leather Fair at Chennai,

International Leather Goods Fair at Kolkata, Nakshatra, Pragati Maidan, New Delhi,

Aahar – the International Food & Hospitality Fair, Pragati Maidan, New Delhi etc. are

scheduled to be held during the period January to March 2013.

Lifestyle Pakistan

ITPO successfully hosted “Lifestyle Pakistan” exhibition at Pragati Maidan

from April 10-15, 2012. The event was organized by Trade Development Authority

of Pakistan (TDAP) and supported by Department of Commerce, Government of

India and ITPO. The event was a huge success and attracted a good number of

business visitors and general public. The event was attended by Shri Anand

Sharma, Hon’ble Minister of Commerce & Industry and Textiles, Government of

India.

India International Leather Fair – Delhi

The 2nd edition of India International Leather Fair (IILF), Delhi 2011 was

organized at Pragati Maidan, New Delhi from July 5-7, 2012.

The fair was inaugurated by Shri S.R.Rao, Commerce Secretary, Govt. of

India

CLE, CLRI, ISF, IFCOMA and IFLMEA were the co-organizers of the Fair

A total number of 128 companies participated in the Fair (including 40 from

overseas mainly from Italy, China, Taiwan and Singapore)

Aahar-the international Food Fair, 2012, Chennai

Aahar, the international food fair-2012 was organized in Chennai from

August 23-25, 2012.

ITPO & TNTPO were the co-organizers and supported by MoFPI,

APEDA, ARCHI, NSIC, IFCA and HOTREMAI.

The fair was inaugurated by Mrs. M.P.Nirmala, Secretary (Food Supplies)

Govt. of Tamilnadu.

A total number of 119 companies participated in an area of 1799 sq. mtrs.

18th Delhi Book Fair, New Delhi

The 18th Delhi Book Fair 2012 was organized by ITPO from September 1-9,

2012 at Pragati Maidan, New Delhi. The Federation of Indian Publishers (FIP)

was the co-organizer of this event.

The Federation of Indian Publishers (FIP) was the co-organizer of this event.

Hon’ble Lt. Governor of Delhi, Shri Tejender Khanna inaugurated the event.

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The net area sold to 230 participants was 5355 sq. mtrs.

A number of seminars were conducted during the period of the fair.

Four foreign countries namely USA, China, Pakistan and UK also participated

in the fair.

The theme for the year was “eBooks”.

Stationery Fair

Concurrent to Delhi Book Fair ITPO also organized 14th Stationery Fair.

Over 38 companies participated in this twin fair.

15th International Security Expo

ITPO organized 15th edition of India International Security Expo, Pragati

Maidan, New Delhi (September 13-16, 2012)

The fair was inaugurated by Mrs. Rita Menon, CMD, ITPO.

65 companies displayed their products including Home land security, disaster

management & NBC equipment, radio communication system etc.

Foreign delegates and visitors from 25 countries visited the event.

The fair was visited by 3573 business visitors who registered their names for

their visits to the fair.

32nd India International Trade Fair 2012

32nd edition of ITPO’s popular annual event, the India International Trade Fair

(IITF) was organized in Pragati Maidan, New Delhi from November 14 to 27,

2012 (First five days were exclusively for business visitors).

The fair was inaugurated by Shri Pranab Mukherjee, Hon’ble President of

India.

The Theme of the Fair was -“Skilling India”

Uttarakhand was the Partner States.

Andaman & Nicobar Islands were the Focus States.

Online allotment of space to domestic exhibitors was streamlined for better

transparency.

Space rent payment by NEFT and RTGS was encouraged.

To facilitate the visit of overseas delegates, exclusive International Business

Lounge was operated near Gate No. 7, Pragati Maidan. The facilities

provided at International Business Lounge include registration of foreign

delegates, foreign exchange counter, Cyber Café.

159

For convenience of the visitors a Round Robin Bus Service and Three Hop-

on-Hop-off (HOHO) Low floor buses for plying on Round Robin Route were

operated.

Protocol was shifted to Gate No.1 so as to decongest Mathura Road.

Elaborate arrangements were made for safety & security of visitors, which

included X-Ray baggage scanners at all entry points, explosive detectors for

the anti-sabotage check, enhanced number of CCTV, observation towers,

Walkie- talkie sets and inverted mirrors, flap-barriers to regulate entry with

bard coded badges, tickets, fire-fighting systems inside all halls as per the

requirement of Delhi Fire Service, emergency lights in case of sudden power

failure, arrangements of standby generators and barrier-free access to the

halls.

Park & ride facility was available for the visitors.

Over 6000 exhibitors from India and abroad took part in the event as detailed

below:-

Domestic Participants in IITF 2012

32 States and Union Territories, 38 Central government Ministries/

Departments, Public Sector Companies, etc., participated in the fair.

Foreign Participants in IITF 2011

About 414 Overseas Exhibitors from 26 countries took part in the event.

12 countries participated at country level i.e., Afghanistan, Bangladesh,

Belarus, China, Cuba, Iran, Pakistan, Papua New Guinea, South Africa, Sri

Lanka, Tanzania, Thailand.

New Initiatives in IITF 2012

The allotment of space to private sector companies was done electronically.

Potential exhibitors had to apply online for allotment of space and were

encouraged to send booking amount and participation fee through

NEFT/RTGS.

Locations were divided into A, B and C categories. The objective was to give

prime location to good companies.

The display profile was restricted to the product groups identified for each hall.

Hall No. 6 and 18 were kept for foreign and government participation.

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Mobile Application: Key information on IITF, as also floor-plans of all halls,

details of exhibitors was available on Blackberry, Android, Google play and i-

phones.

New Product Launch: Two slots (11.00 a.m. -1.00 p.m./3.00 p.m.- 5.00p.m.)

were earmarked in Hall No.8 for new product launches, at a nominal fee of

Rs. 50000/slot. Four new products (3 by M/s Ambrane and 1 by M/s, GXT

Green) were launched.

This year, for the first time, ITPO introduced the Cuisine of the State Awards

in IITF. In this category, Maharashtra bagged the Gold Medal, Kerala won

the Silver, while Uttarakhand received the Commendation and special

appraisal certificates were given to Karnataka and West Bengal. Mementos

and Certificates were also presented to the Partner and Focus countries as

well as Partner and Focus States.

India-ASEAN Business Trade Fair (IABF)

2nd India-ASEAN Business Trade Fair (IAFB) was successfully organized in

Pragati Maidan from December 18-20, 2012 by Department of Commerce,

Government of India with the support of FICCI and ITPO. The event was attended

by Trade Ministers of a number of ASEAN countries along with Shri Anand Sharma,

Hon’ble Minister of Commerce & Industry and Textiles, Government of India.

Fairs Abroad

Overseas fairs during April-December, 2012

During the year 2012-13, ITPO proposes to organise participation in 24

overseas trade fairs including two mini India shows in Osaka, Japan.

Out of 24 events, ITPO has organised participation in 19 events from

April-December, 2012)

Out of 19 events held so far, 5 events were held in Europe, 5 in Africa &

Middle East region, 4 in LAC/NAFTA, 2 in Asia, 1 in CIS region and 1 in

Australia. Further, out of 19 events, 6were general fairs, 13 were

specialised fairs including two exclusive Mini India Shows.

Proposed overseas fairs during 2012-13

During 2013-14, ITPO proposes to organise 36 overseas trade fairs including

1 India Shows and 2 Mini India Shows.

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Brand India Shows

India Garment Fair & India Home Furnishing Fair, Japan

During the year, two exclusive Indian commodity shows were organised in

Japan in the month of July, 2012 i.e. the 33rd India Garment Fair and 23rd

India Home Furnishing Fair 2012.

The shows for Home Furnishings and Garments are being organised

annually for the last several years are well established and have become

major sourcing avenues for these products.

The simultaneous organisation of the Shows for Furnishing and Garments

during 2012 provided ample opportunity for buyers and sellers to conduct

business under one roof, not only in terms of Home Furnishings but also in

Garments. These two events generated business worth US $ 28.14 million

and were attended by 2057 business visitors.

Participation in overseas events as “Guest/Partner Country”

ITPO organized India’s participation in 2 overseas event i.e. Muba, Basel

(Switzerland) in April, 2012 as “Guest Country” and in Africa’s Big Seven/SAITEX,

Johannesburg (South Africa) in July, 2012 as “Partner Country”. Trade Delegations

35 trade delegations visited India Trade Promotion Organization from April

2012 till December 31, 2012. These included a 13 member delegation from The

Export Promotion Council of Kenya, a 2 member delegation from the Hong Kong

Trade Development Council, a two member delegation from Japan External trade

Delegation and 3 member delegation from Messee Frankfurt visited ITPO and were

given an introduction of ITPO and its trade promotion activities and exploring

possibilities of collaborating in trade promotion activities and exploring possibilities

of collaborating in trade development activities for furtherance of bilateral trade. 31

trade delegations visited the India International Trade Fair, 2012.

Membership ITPO provided a package of services to export worthy units which are

enrolled as Members. These services include trade enquiries received from Indian

Missions abroad, market reports, details of importers and arranging meetings with

visiting delegations during Trade Fairs & Exhibitions organized by ITPO. This year,

till December 2012 about 315 trade enquiries received from Indian Missions abroad

were disseminated among the members through Trade Intelligence Bulletin enabling

them to explore business opportunities with the overseas counterparts. In addition,

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trade information related to overseas tenders and trade fairs & exhibitions organized

by ITPO and overseas agencies are also published in the Indian Export Bulletin.

Networking with TPOs ITPO has been actively participating in Asian Trade Promotion Forum

(ATPF), a gathering of Trade Promotion Organisations (TPOs) since very beginning.

All the activities of ATPF are coordinated by Japan External Trade Organisation

(JETRO). Under the programme, the working-level meeting with representatives of

the TPOs of the member countries and the meeting of the CEOs of the member

organizations is held annually. The 25th AT`PF CEO Meet, held at Bangkok-

Thailand from April 18-20, 2012 was attended by CMD and a senior official of ITPO.

ITPO was also represented by senior officials at the 21st Working level Meeting

(WLM) in Fukuoka, Japan from December 10-12, 2012. The 26th ATPF CEO

Meeting is being hosted by ITPO in Agra, India, from March 5-7, 2013.

Export Potential Seminars 19 seminars were organized during IITF 2012 in association with FICCI &

State Governments like Government of Bihar, West Bengal, Uttarakhand,

Department of Science & Technology, NSIC, etc. Some of the seminars organized

by FICCI were (i) Skill for All: For the people, by the people; (ii) Workshop I on

‘Contact Creation for the Media & Entertainment’ and Workshop II on ‘Opportunities

in the Food Processing Industry’. Department of Industries, Govt. of Bihar

organized a Seminar on Investment & Business Opportunities in Bihar. Govt. of

West Bengal organized Seminar on Business Opportunities in West Bengal and

Uttarakhand organized Seminar on Investment & Business Opportunities in

Uttarakhand.

Computerization Knowledge management system – A Section on Knowledge Management

System has been created on ITPO’s website and this Section is being

updated regularly.

IT infrastructure in ITPO – The present IT infrastructure in ITPO includes

about 350 desktop computers, 10 servers, 6 work-stations, attached

peripherals and supporting application software which are operational in the

networking environment.

Mobile Application for IITF’2012 – A mobile application was developed for

Smart Phones/Tablets to view information and updates about IITF’2012. The

mobile application was developed for various platforms such as iphone/iPods,

Android and a compatible website (m.iitf.in) was also created for viewing the

IITF’2012 details on web/internet enabled phones. The application contains

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the information on IITF, exhibitors, floor plans, factsheets, facilities, safety

and security etc.

Development and Maintenance of Software Modules for Online Space

Booking and Deposit of Space Rent – To provide the facility of online space

booking to the potential exhibitors for greater transparency and doing

business; Software module for online booking of space and online payment of

space rent has been developed for IITF’2012. The online booking of space

and online payment of space rent module for Aahar International Fair and

Leather Fairs, 2013 are also being implemented.

Besides facilitating various Divisions in their IT enabled functions on day-to-

day basis, the Computer Department of ITPO has also been facilitating

development, hosting and maintenance of corporate website of ITPO, two

trade portals and fair specific websites

Trade Information During 2011-12, over 100 titles of periodicals of which 8 priced ones and rest

on gratis basis and about 10 CD-ROMS were added in the Business Information

Centre. Out of these titles (about 1500 issues of these titles), 80 were trade related

periodicals and others non trade related periodicals (i.e. Grah Shobha, Sarita, India

Today etc.). During April-December 2012 over 100 titles of periodicals of which 9

priced ones and rest on gratis basis as mentioned above and 34 CDs were received

in BIC Library. Besides 39 issues of Indian Export Bulletin were brought out and

hosted on the website up to December 2012. Business Information Centre With a view to provide reliable trade information to Indian exporters and

overseas buyers, the ITPO has set up the Business Information Centre and Trade

Portal www.tradeportalofindia.org at Pragati Maidan. The trade portal was set up by

the Government of India under the EU – India Trade Investment and Development

Programme for promoting trade between India and EU. This provides information

on the EU countries and covers other countries and regions as well. It also offers

linkages to relevant government websites that provide information access, both off-

line and online, on countries, trade statistics, market surveys, sector – based

information and statistics, country regulations, trade events, business directory etc.

At present this portal contains information on more than 100 countries including 27

countries of EU.

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The Centre provides online access of KOMPASS – (a database of 1.8 million

companies for 82 countries, searchable by country and product, classified by

manufacturer/importer/distributor/agent) to its members.

Setting up of Regional Trade Centres ITPO is providing assistance to State Governments in setting up Regional

Trade Promotion Centres (RTPCs) for creating Export Infrastructure in State

Capital/major cities. The present status is as given below:

1. Tamilnadu Trade Promotion Organisation

TNTPO has three AC Halls having area of 4400 sq. mtrs. 1760 sq. mtrs and

4400 sq. mtrs respectively. A modern Convention Centre having built up

area of 6672 sq.mtrs on Ground Floor and 1817 sq. mtrs on First Floor with

seating capacity of 2000 is also operational since November, 2004 in the

Chennai Trade Centre (CTC). CTC is also having 4000 sq. mtrs open area

for display.

During 2012-13 (April, 2012 to 1 December, 2012), 175 events were

organized at Exhibition and Convention Halls of TNTPO. 38 events are

anticipated to be organized at CTC during January – March, 2013.

The important events organized at Chennai Trade Centre include IILF, Hindu

Metro Plus, Tyre Expo, Weld India, Medicall, Acetech, RSSDI, ISNT, Gems &

Jewellery, Roof India, BAICON, Print Expo, India International Build Expo,

Textile and Garment Show, Electrica.

2. Karnataka Trade Promotion Organisation

The Trade Centre at Bangalore was set up in 2004 and is managed by a

Joint Venture Company called Karnataka Trade Promotion Organisation

(KTPO). KTPO is a Joint Venture of ITPO and Karnataka Industrial Area

Development Board (KIADB).

KTPO is having one Exhibition Hall measuring 5371 sq. mtrs. and one

Conference Hall measuring 1500 sq. mtrs.

During 2011-12 (April – December 2011), KTPO hosted 24 events and it is

expected to organize 6 more events during January – March, 2012.

The important events organized at KTPO during April – December, 2011

includes IPCA Expo 2011, SS-12 Range Presentation, All Thai Products,

SAP TechED-2011, The Great Indian October Fest 2011, Bengaluru

Midnight Marathon and Grace Hopper Celebration for Women in Computing

etc.

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Commercial Publicity & Public Relations

During the current year, ITPO made extensive publicity arrangement for its

B2B and B2C and B2C events through multimedia campaign viz. Print,

electronic and outdoor media in India and overseas. This publicity campaign

was supplemented with brochures, invitation mailers, posters etc. Fair

catalogues were printed for both domestic and overseas events.

ITPO worked in close coordination with the print and electronic media to

ensure meaningful coverage through newspapers, magazines, radio and TV

channels disseminating information for attracting quality visitorship.

Close liaison with All India radio and Doordarshan who in turn cooperate with

ITPO in disseminating information of its fairs and other promotional activities.

ITPO’s activities and its exhibition infrastructure were highlighted in the

Calendar of Events booklet which also listed ITPO’s programmes of events in

India and abroad over a period of two years. The booklet was mailed to its

target audience comprising trade and industry associations in India and

abroad, overseas missions in India as well as Indian missions abroad and

nodal industry organisations in different States.

ITPO also brought out a quarterly newsletter ‘Log On’ for updates on ITPO’s

activities and events to trade and industry in India and overseas, Central

Ministries and Departments, State Governments, PSUs, EPCs etc. As part

of corporate publicity efforts, advertorials were brought out in publications/

newspaper supplements in respect of major fairs while corporate

advertisements on major fairs were released in prominent publications.

Tender Notices pertaining to various matters were also released in various

publications from time to time apart from uploading on ITPO’s website.

Infrastructure

During the year 2012-13 (April-December, 2012), works of

creation/upgradation of facilities in Pragati Maidan undertaken by ITPO are

as follows:

Construction of toilet block at mezzanine floor of Hall No.18.

Up gradation of toilet block at the basement of Hall No.18.

Up gradation of Phoolwari as Convention and Conference hall.

Up gradation of Shakuntalam as Convention and Conference hall.

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Up gradation of toilet blocks in Administrative building.

Renovation/up gradation of ITPO Cafeteria/Canteen.

Construction of Ticket Booth & Toilet at Gate No.10.

Renovation of Hall C at Gate no.1.

Construction of general toilet block (outside of hall) at Hall No.7.

VII. Export Credit Guarantee Corporation of India Limited (ECGC)

The Export Credit Guarantee Corporation of India Ltd. (ECGC) Mumbai was

set up in 1957 under the Companies Act, 1956. It has the primary objective of

supporting the country’s exports by extending Insurance and Guarantee facilities to

the Indian exporters and the commercial banks. The paid up capital at the end of

2011-12 was Rs. 900.00 crores. ECGC has registered itself with the IRDA on 27th

September, 2002 bearing Registration No. 124.

The standard policies provide insurance cover to exporters against

commercial and political risks for shipment made on short-term credit. Transfer

guarantee are issued to banks in India which add confirmation to letter of credit and

such guarantees protect the banks against losses that may be sustained by them

due to default of the banks or because of certain political risks. There were 13005

short-term policies including transfer guarantees and 62 long term policies, in force

on 31.03.2012. The total value of shipment declared under the schemes (short-term

policies, transfer guarantees and Domestic Credit Insurance) in the year 2011-12

amounted to Rs.99550.01 crores as compared to Rs.93127.40 crores in 2010-11,

recording a growth of 10.25%.

The total claims paid during 2011-12 amounted to Rs. 713.03 crores as

compared to Rs.620.53 crores in 2010-11. Claims paid during April to September,

2012 were Rs. 201.70 crore as compared to Rs. 162.50 crore paid during the

corresponding period in previous year.

During the year 2011-12, a total sum of Rs. 168.64 crores was recovered

(previous year Rs. 136.06 crore) consisting of Rs. 6.31 crore from the short term

policy cases, Rs. 152.59 crore from the Export Credit Insurance to Bank cases and

Rs. 9.74 crore from Medium and Long term cases. An amount of Rs. 63.81 crore

was recovered during the period April to September, 2012 as against Rs. 96.35

crore recovered during the same period in the previous year.

The total gross premium income from all the schemes of ECGC during the

year 2011-12 amounted to Rs.1004.83 crores as compared to Rs. 885.47 crores in

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201-11. The growth came from the Export Credit Insurance to Bank business,

accounting for 59.89% of the total premium income, followed by Short Term Policy

sector including factoring, which contributed 35.42%. The income from medium and

long term sector accounted for just 4.69% (Rs. 47.27 crores) of the total premium

income.

The total gross income of the corporation amount to Rs. 1355.72 crores (previous year Rs. 971.72 crore) of which net earned premium income was Rs. 766.25 crore (previous year Rs. 674.86 crore). Of the other income, interest on investments earned last year alone, accounted for Rs. 353.59 crore (previous year Rs. 280.17 crore). The year under review i.e., 2011-12, ended with a profit of about Rs. 327.72 crore before tax (previous year Rs. 117.63 crore).

ECGC covers exports to 237 countries. The top five countries covered by

ECGC during the year were USA, UK, Germany, UAE and Italy. They represent

about 42.10% of its total cover. Engineering Goods, Leather and leather

manufactures, readymade garments, Cotton & Handloom and Agricultural Products

(including Dairy and processed foods) are the top five commodities covered by

ECGC during the year. These aggregate to Rs. 51766 crore, representing 52% of

the total value covered by ECGC during the year. ECGC was having 23%

Proportional reinsurance which includes 10% Quota share with GIC of India Ltd and

1% each with New India Assurance, Oriental Insurance, and United India insurance.

The Corporation has declared and paid dividend of Rs. 54.00 crores for the year 2011-12 as compared to Rs. 26.10 crores dividend paid during the previous year.

Given the economic meltdown and recession world over which affected the

export trade and resulted in increased incidence of defaults & claim, the Corporation

extended full support to bankers and exporters by huge amount of claim settlement,

without leaving an adverse impact on its balance sheet.

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