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Government of India

PERFORMANCE BUDGET

2005-06

MINISTRY OF COMMERCE & INDUSTRY

(DEPARTMENT OF COMMERCE)

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CONTENTS

PAGES

CHAPTER - I Introduction 4 CHAPTER - II Overall performance of the programmes of

Department of Commerce 6

CHAPTER– III Appraisal report of Major Projects/Programmes costing Rs. 100 crores or more

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CHAPTER – IV Financial requirement and outlays 51 CHAPTER – V Performance and scope of individual, activities

projects and schemes with reference to financial outlays

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1. Export Promotion (a) Market Development Assistance 59 (b)Market Access Initiative – Export Studies 59 (c) India Brand Equity Fund 60

(d) Special Economic Zones 61 2. Development of Export Oriented Industries: 61

(a) Tea 61 (b) Coffee 65 (c) Rubber 70 (d) Spices 77 (e) Tobacco 82 (f) Marine Products 84 (g) Agricultural and Processed Food Products 90

3. Services for Export 96 4. Indian Institute of Foreign Trade. 96 5. Foreign Trade Control 97

CHAPTER – VI Programmes for SCP/TSP 98 CHAPTER VII Gender Budgeting 102 CHAPTER–VIII Public Sector Undertakings 103 Annexure – I 115 Annexure – II 127

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PREFACE

Performance Budget is a technique of presenting the budget of the Ministry in terms of functions, programmes, and activities. It correlates the physical and financial aspects of the individual items, contained in the budget so as to provide for a fuller review of the budget. By providing an indicator of the relationship between estimated inputs and the expected outputs as an integral part of the budget, it acts as a tool for management and as an instrument for evaluation of performance.

Performance Budget highlights the programmes and the activities undertaken by the Department in furtherance of the core objective of strengthening India’s foreign trade performance and the related targets and achievements for 2003-2004, 2004-2005 and targets set for 2005-06. Chapter I is a brief introduction on the functions of the Department and its implementing agencies. Chapter II broadly indicates physical and financial targets for 2005-06 while documenting the performance of various

programmes implemented in 2003-04 and, 2004-05 Chapter III deals with Appraisal Reports of major projects/ programmes, costing Rs.100 crores or more. Chapter IV gives break-up of the financial outlays under various programmes and activities, reflecting the funds needed for the current year and the next as proposed in the Central budget presented to the Parliament. Chapter V explains the scope and performance of individual programmes and projects and schemes thereunder, with reference to the financial outlays. Chapter VI explains the programmes for SCP/TSP. Chapter VII incorporates overall performance and financial highlights of the working of the public sector undertakings under the control of the Department.

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CHAPTER – I

INTRODUCTION This Performance Budget of the Department of Commerce in the Ministry of Commerce & Industry has been prepared on the basis of functions and objectives of the various Functional Divisions and agencies of the Department. A function has been taken to be a substantive part of the total organised efforts of the Department, the purpose of which is to provide a distinct service. A programme represents a segment of a function and while an activity represents the division of a programme into homogeneous type of works. The core functions of the Department are promoting exports and organising, developing and regulating the foreign trade. The function of the Directorate General of Foreign Trade (DGFT),the executive arm of the Department, is implementation of the foreign trade polices laid down by the Government. The Supply Division functions as an agency, through which the Government arranges purchases and quality assurance of a portion of requirement of stores, demand for which is generated by various Departments. This Division also caters to the requirements of State Governments, autonomous bodies, statutory corporations and Government companies on their request. The Department of Commerce has a number of attached and subordinate offices, commodity boards, corporations etc., entrusted with the responsibility to look after the interests and concerns of various specific industries/areas in the context of promoting exports and

implementing the related policies laid down by the Government (a) The attached and subordinate

offices are: (i) The Director General of Foreign

Trade with regional offices at Amritsar, Ahmedabad, Bangalore, Mumbai, Bhopal, Baroda, Chandigarh, Chennai, Coimbatore, Cuttack, New Delhi(CLA),, Ernakulam, Gandidham, Goa, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur Kolkatta Ludhiana,, Madurai, Moradabad, Patna, Pondicherry, Pune, Panipat, Rajkot, Shillong, Varanasi, and Visakhapatnam.

(ii) The Director General Commercial Intelligence and Statistics, Kolkatta.

(iii) The Custodian of Enemy Property, Mumbai and Kolkatta.

(iv) The Development Commissioner, Santacruz Special Economic Zone, Mumbai.

(v) The Development Commissioner, Falta Special Economic Zone, Falta.

(vi) The Development Commissioner,

Kandla Special Economic Zone, Gandhidham.

(vii) The Development Commissioner,

Madras Special Economic Zone, Chennai.

(viii) The Development Commissioner,

Cochin Special Economic Zone, Kochi.

(ix) The Development Commissioner,

Noida Special Economic Zone, Noida.

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(x) The Development Commissioner, Visakhapatnam Special Economic Zone, Visakhapatnam.

The Special Economic Zones, set up as enclaves separated from the Domestic Tariff Area by fiscal barriers, are intended to provide an internationally competitive duty-free environment for export production at low costs. This enables the products to be competitive on quality and price-, in international markets. India has seven Special Economic Zones at Kandla (Gujarat), Santacruz (Mumbai), Falta (West Bengal), Noida(U.P.), Kochi (Kerala), Chennai (Tamilnadu) and Visakhapatnam(Andhra Pradesh) .

(b) The Commodity Boards are:- i) Rubber Board, Kottyam ii) Tea Board, Kolkatta. iii) Coffee Board, Bangalore. iv) Spices Board, Kochi v) Tobacco Board, Guntur.

(c) Besides, there are the following Councils, autonomous bodies under the control of the Department, which receive grants for their activities from the Government:- (i) Indian Institute of foreign

Trade, New Delhi. (ii) Indian Institute of

Packaging Andheri(East), Mumbai.

(iii) Export Inspection Council of India, New Delhi.

(iv) Marine Products Export Development Authority, Kochi.

(v) Agricultural & Processed Food Products Export Development Authority, New Delhi.

(vi) Federation of Indian Export Organisation, New Delhi.

(vii) Indian Council of Arbitration, New Delhi.

(viii) Export Promotion Councils, 11 in all, at Kochi, Mumbai, Kolkatta, Chennai and New Delhi.

(ix) Indian Diamond Institute.

(d) For handling the canalised imports and exports of commodities, undertaking development of exports generally, and for providing assistance and services to the export trade, the following Corporations/organisations are functioning:- i) The State Trading

Corporation of India Ltd. ii) The Projects and

Equipment Corporation of India Ltd.

iii) The Minerals and Metals Trading Corporation of India Ltd. including Mica Trading Corporation Ltd.

iv) The Export Credit and Guarantee Corporation Ltd.

v) India Trade Promotion Organisation.

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CHAPTER – II

OVERALL PERFORMANCE OF THE PROGRAMMES

A range of interventions/activites are carried out by the Department as well as organizations under its jurisdiction within the overall objective of export promotion. A review of their performance is enumerated below: (A) Marketing Development Assistance

(MDA)

The Government of India had set up the “Marketing Development Fund” in the year 1963, to undertake various measures for stimulating and diversifying export trade. The MDA is utilised for assisting:

(a) Individual exporters for export

promotion activities abroad. (b) Export Promotion Councils (EPCs) to

undertake export promotion activities for their products and commodities.

(c) approved organisations/trade bodies in undertaking limited exclusive non-recurring innovative activities connected with export promotion efforts for their members.

(d) EPCs to contest Countervailing duty/Anti dumping cases initiated abroad.

(e) Focus export promotion programmes in specific regions abroad like Focus (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN+2) and also

(f) Supporting residual essential activities connected with marketing promotion efforts abroad.

(B) Market Access Initiative – Export

Studies.

The Market Access Initiative Scheme was launched to identify and address major issues relating to market access that Indian exporters face in various overseas

markets. The X Five Year plan outlay is Rs. 552.00 crore.

MAI scheme is designed on country-

product focus approach. The selection of products and target countries for the purpose of this scheme would be on the basis of the findings of market studies/survey conducted through reputed marketing consultants, appointed in a transparent manner.

Financial assistance shall be made

available under the scheme to Export Promotion Councils, Industry and Trade Associations and other eligible entities on the basis of the competitive merits of the proposal received in this regared for the purposes, which inter-alia, includes:- • Market studies on country product

focus.. • Setting up of common showrooms

under one roof and warehousing facility in the identified centres abroad.

• Participation in sales promotion campaigns through international departmental stores.

• Participation in international trade fairs, seminars, buyer-seller meets.

• Publicity campaigns for launching identified products in select markets.

• Registration charges for products registration abroad for pharmaceuticals, bio-technology and agro-chemicals.

• Testing charging for engineering products.

• Assistance to cottage and handicraft sectors to enhance their competitiveness.

• Market initiative facility to recognized associations in industry clusters for marketing abroad.

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The scheme would help in tapping potential markets for specific products where the country has a competitie edge to achieve additional market access in focused and project approach manner, to make quantum jump in total volume of exports in the next 5 year’s period. • Under MAI scheme, display/marketing

of potential products in the potential market can be had through impressive India pavilions, participated by select top campanies, products-wise, having

world class branded quality products associated with sustained publicity campaigns, seminars, Buyer-Seller meets etc.

• Potential activities like opening of showrooms, warehousing facility and display of products in leading departmetal stores by leading Indian companies to have physical presence of India label and “Made in India” products in the potential markets.

Details of the funds allocated and released under the scheme are:-

(Rs. in crore) Sl. No.

Year Budget Allocation

Revised Budget allocation

Funds released

1. 2001-02 - 14.50 14.50 2. 2002-03 42.00 20.00 10.80 3. 2003-04 44.00 30.00 9.00 4. 2004-05 (upto Oct. 2004) 102.24 15.00 2.10 Total 36.40 Details of project specific funds released during the last four years and the status of the reports is given in Annexure- I (C) India Brand Equity Fund

India Brand Equity Foundation (IBEF,

formerly India Brand Equity Fund) Trust was established on 11th July, 1996 with one time Government budgetary support of Rs. 50 crores. The mandate of IBEF is now “Building Positive Economic Perceptions for India Globally. Its activities are as follows:

1. Conception of a Business Brand for India to be used in building positive economic perceptions globally. “India – Fastest Growing Free Market Democracy” has been conceived by the IBEF and a supporting logo has been developed. 2. Establishing a fully functional “India Resource Centre (www.india-now.org) which interalia provides the following e-services: • E-newsletter to over 20,000 subscribers; • Daily news alerts;

• Weekly profiling of success stories; • Downloadable reports, presentations and research; • Analysis of Govt. Policy Announcements: The website has been running successfully and serving an exponentianally growing number of international users. A content syndication service was launched mainly for journalists and 7-8 well- researched stories are produced every fortnight. . Specific media houses and journalists are being targeted to build the profile of the service. As a result, stories have started appearing in both domestic and international press. A growing number of subscribers are serviced regularly 3. A brand communication toolkit containing an India Brochure, Presentation, Film, and other

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communication contents packaged in a multi-purpose folder, alongwith an information Kiosk and several Posters on Brand India has been prepared. These will be used to proliferate the business brand and the key positioning statement at conferences, exhibition and other strategic events abroad. Moving forward, Brand India kiosks will be placed at major global events with an aim to consistently promote the image of India. 4. An operational partnership with the Ministries of External Affairs and Tourism is being established to drive synergies for promoting Brand India as a business, tourism and a media brand. 5. Networking with international agencies is a recent priority. A visit to the US was recently undertaken to participate in the Annual Convention of the South Asian Journalists Association. A partnership is being established with this strong network of media professionals spread across the USA to allow better penetration of Brand India in the US media. Further more, considering the top US business schools as with “Hubs of Opinion Generation” like negotiations have been initiated to establish relationship. The IBEF has already made deep inroads at Harvard Business School and MIT Sloan School of Menagement, and initiated relationship with several other leading institutions like Wharton, Berkeley, and others. 6. The facilitation of inward visits by journalists and business leaders under a branded “Experience India Programme” has been initiated. Some high-profile visits have already been facilitated by IBEF eg. Global Chief Economist of Morgan Stanley, 80 – member Delegation of Harvard Business School, etc. Negotiations to arrange more frequent visits by journalists representing global media houses, potential investors and

leading opinion makers are being undertaken by IBEF management and its partner organizations. As as result IBEF is being used as resource Centre by companies, individuals and institutions looking to develop a better understanding of India. Several studies and publications in co-operation with leading professional agencies have been commissioned. Perceptions Research of brand India has been an ongoing activity and about which regular reports are made available to stake holders. 7. The IBEF’s Brand Ambassador Network focusing on building economic perceptions in the local media and business communities through their influence networks.is expected to have an early launch in 2005. IBEF has established links in this regard with several influential individuals who will be formally engaged under the Brand Ambassador Network to help build the India Brand. Such Ambassadors would also help build the larger network of IBEF under the “Friends of India”. These people will regularly receive customized information from IBEF on the good news and success stories about India. 8. IBEF is negotiating with several global event organizers to bring leading international business events into the country, with an overall purpose of drawing attention to the rapid economic change the country has seen in the past decade. Media campaigns are being prepared for key global markets and are aimed at driving traffic onto the “India Resource Centre” to bridge the information gap on India abroad. The overall effort of the IBEF has been to drive a holistic approach to building a strong global brand for India.

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1. ASIDE- Introduction The responsibility for promotion of exports and creating the necessary infrastructure has largely been undertaken by the Central Government so far, it is increasingly felt that the states have to play an equally important role in this endeavour. The role of the State Govts. is critical from the point of view of boosting production of exportable surplus, providing the infrastructural facilities such as land, power, water, roads, connectivity, pollution control measures and a conducive environment for production. It is, therefore, felt that coordinated efforts by Central Government in cooperation with the State Governmnets are necessary for development of infrastructure for exports promotion. 2. Scheme

Prior to the launch of ASIDE scheme, the Deptt. of Commerce had been implementing a number of schemes viz. the Export Promotion Industrial Park Scheme(EPIP) Export Promotion Zones Scheme (EPZ) and the Critical Infrastructure Balancing Scheme (CIB) and the Export Development Fund for the North East and Sikkim, in order to develop infrastructure for promotion of exports. With a view to optimize the utilisation of resources, to achieve the objectives of export growth through co-ordinated efforts and also to ensure greater participation from the States in export promotion, a scheme by the name of Assistance to States for Development of Export Infrastructure and other Activities (ASIDE) was formulated by merging the above mentioned schemes and launched in March, 2002.

3. Objective The objective of the scheme is to involve the states in the export effort by providing assistance to the State Governments for creating appropriate

infrastructure for the development and growth of exports. 4. Purposes for the scheme

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 specific purposes for which the funds allocated under the Scheme can be sanctioned and utilised are as follows: i) Creation of new export promotion industrial parks/zones (including SEZs/Agri-Business Zones) and augmenting facilities in the existing ones. ii) Setting up of electronic and other related infrastructure in export conclave. iii) Equity participation in infrastructure projects including the setting up of SEZs. iv) Meeting requirements of capital outlay of EPIPs/SEZs/SEZs. v) Development of complementary infrastructure such as roads connecting the prodution centers with the ports, setting up of container depots and container freight stations. vi) Stabilising power supply through additional tranformers and islanding of export production centres etc. vii) Development of minor ports and jetties of a particular specification to serve export purpose. viii) Assistance for setting up common effluent treatment facilities subject to modalities of assistance being worked out. ix) Projects of national and regional importance. x) Activities permitted as per EDF in relation to North East and Sikkim. 5. Allocation of Funds

The outlay of scheme will have two components. 80% of the funds (State component) shall be earmarked for allocation to the States on the basis of the approved criteria as indicated in Para 2 to

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be utilised for the approved purposes. The balance 20% (central component), and amounts equivalent to un-utlised portion of the funds allocated to the States in the past year(s), if any, shall be retained at the central level for the specified purposes as indicated in Para 4 and especially the requirements of capital outlays of SEZs, activities relating to promotion of exports from NER as per the existing guidelines, requirement of backward States needing specific attention and any other activity considered important by the Central Government from the regional or national perspective.

6. Criteria for State-wise allocation

The State Component will be allocated to the States in two tranches of 50% each. The inter-se allocation of the first tranche of 50% to the the State shall be made on the basis of export performance. This will be calculated on the basis of the share of the state in the total weighted average of exports. The second tranche of the remaining 50% will be allocated inter-se on the basis of share of the states in the weighted average of the total growth of exports over the previous year. The allocation will be based on the date of export of goods alone and the export of services will not be taken into account.

10% of the outlay for the scheme

shall be earmarked for expenditure in the North East and Sikkim. Allocation to the Export Development Fund for NER & Sikkim shall be made out of the earmarked outlay for the NER.

The export performance and

growth of exports from the state will be

assessed on the basis of the information available from the office of the DGCIS. The office of the DGCIS will compile the State – wise data of exports from the Shipping Bill submitted by the exporter. 7. Approval of Projects and Implementation

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 State cell of the Department of Commerce and the Joint Director General of Foreign Trade posted in the State/region and the Development Commissioner of the SEZ/SEZ in the State as Members. The SLEPC will scrutinise and approve specific projects and oversee the implementation of the Scheme.

8. Eligible Agencies

Under the scheme, funds for the approved projects may be sanctioned to:- 1. Public Sector undertakings of

Central/State Governments 2. Other agencies of Central/State

Governments 3. Export Promotion

Councils/Commodity Boards 4. Apex Trade bodies recognised under

the EXIM policy of Government of India and other apex bodies recognised for this purpose by the Empowered Committee set up under para 8.

5. Individual Production/Service Units dedicated to exports.

Funds released during the year 2001-

2002, 2002-2003, 2003-2004 and 2004-05 under the scheme are as under:-

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2001-02 Project State/

Agency Amount released under ASIDE 2001-02

Development of leather export park at Gochibowli, Rangareddy AP 1.70 Additional infrastructure at Aminagaon, Kumrup, Assam 2.08 ACC at Patna Bihar 2.8050 Intergrated logistic-Hub-Patna-Hajipur Bihar 0.2548 Setting up of CFS at Sitalpur Bihar 0.25 STPI-HSDC facility and incubation centre at Bhilai Chattisgarh 2.00 Business Information Centre at ITPO, Delhi (Central Sector) Delhi 1.00 Infrastructure development at Indian Diamond Institute , Surat Gujrat/IDI 0.80 Approach road to Surat SEZ, Surat Gujarat 0.3814 STPI facility with earth station at Gurgaon Haryana 2.50 Software Technology park at Ranchi Jharkhand 2.00 Construction of Bajpe Airport – Derebail-STPI-Link road, Manglore.

Karnataka 2.00

Road to KEPIP, Kakkanad Kerala 2.00 Communication component of IT habitate at Kochi Kerala 2.50 Road and power component of Industrial growth centre, Mandideep Distt. Raisan

MP 1.6395

Strengthening infrastructure at Industrial area Pithampur MP 0.50 CETP collection and disposal system in MIDC (sangli, Miraz, Kupwadi) in Sangli Distt.

Maharastra 1.40

CEPC and recycling treatment effluent in Five star butibori MIDC, Nagpur

Maharastra 1.75

Industrial area, across dahanu-virar railway line in Boisar, Thane Maharastra 2.00 EFC for APMCs in Maharastra Maharastra 0.18 Addl. Funding at weigh bridge Moreh Manipur

0.11

Construction of ROB at Dhandhari Kala, Ludhiana Punjab 3.00 Strengthening of R&D center for Bicycle and Sewing machine in Ludhiana

Punjab 1.00

Improvement of link road to ICD at Marudhar Industrial Area Basni, PII Jodhpur

Raj/RIICO 2.3915

CETP for hosiery export unit Salem TN 0.50 System Improvement scheme Lucknow additional funding UP 1.19 Upgradation of road in sports goods complex Meerut, UP 0.0875 CETP at Khekra UP 0.75 Infrastructure development at Khurja UP 1.04 ST Park at Dehradun Uttranchal 2.00 Roadbridge at Naubhashan W.B. 0.41 Satrengthening of Falta-Zoka transmission line Additional Funding

W.B. 0.4161

Improvement of Sarishahat Nainan Rd and Bhaduria Saharahat Rd in Distt. South 24 parganas

W.B. 1.8842

TFC at Kolkatta for EPC (Central Sector) W.B. 5.00 Total 49.52

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Funds released during the Tenth Five-Year Plan (Rs. In crore)

Sl. No.

State/UT Funds released during the year

2002-03 2003-04 2004-05 (upto

11/1/05)

Total Expenditure Report Upto 11.1.05

1. Andhra Pradesh 12.00 13.00 13.85 38.85 26.58 2. Arunachal Pradesh 1.00 1.25 - 2.25 - 3. Assam 4.00 5.00 11.49 20.49 11.07 4. Bihar 3.00 - - 3.00 - 5. Chattisgarh 4.00 4.00 - 8.00 4.70 6. Delhi 1.00 - 1.00 - 7. Goa 6.00 6.00 3.73 15.73 9.73 8. Gujarat 14.00 15.00 11.70 40.70 64.42 9. Haryana 6.00 6.00 8.49 20.49 12.98 10. Himachal Pradesh 7.00 7.50 1.00 15.50 11.22 11. Jammu & Kashmir 6.00 6.00 - 12.00 8.99 12. Jharkhand 4.00 4.00 - 8.00 - 13. Karnataka 18.00 19.00 24.14 61.14 32.32 14. Kerala 11.00 12.00 3.00 26.00 20.14 15. Madhya Pradesh 20.00 11.00 14.35 45.35 31.02 16. Maharastra 16.00 34.00 57.09 107.09 57.17 17. Manipur 2.00 - - 2.00 1.31 18. Meghalya 2.00 2.50 - 4.50 1.77 19. Mizoram 1.00 - - 1.00 0.76 20. Nagaland 1.00 0.50 1.00 2.50 1.50 21. Orissa 4.50 10.00 6.05 20.55 11.39 22. Panjab 9.00 10.00 3.25 22.25 19.75 23. Rajasthan 12.00 13.00 13.20 38.20 31.50 24. Sikkim 0.50 - - 0.50 25. Tamil Nadu 28.00 30.00 39.19 97.19 73.22 26. Tripura 3.00 3.75 7.28 14.03 3.55 27. Uttar Pradesh 20.00 21.00 - 41.00 20.36 28. Uttaranchal 4.00 2.00 - 6.00 - 29. West Bangal 10.00 11.00 5.10 26.10 10.86 30. Andaman & Nicobar 2.00 1.00 - 3.00 - 31. Chandigarh 1.00 - - 1.00 - 32. Dadar & Nagar Haweli 1.50 - - 1.50 - 33. Daman & Diu 1.50 - - 1.50 - 34. Lakshadweep 2.00 2.00 - 4.00 - 35. Pondichery 3.00 1.50 - 4.50 0.01 Total 241.00 252.00 223.91 716.91 439.84

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Details of Funds released to Central Sector during the Tenth Five Year Plan (Rs. in lakhs)

Sl. No.

State/Project Funds released Total

2002-03 2003-04 2004-05

Expenditure reported (upto 11/1/05)

1. Agricultural Product Export Development Authority

500.00 100.00 500.00 1100.00 -

2. Cochin Special Economic Zone 2006.96 1121.16 802.38 3930.50 2281.39 3. Container Corporation of India 45.00 - 45.00 90.00 45.00 4. Centeral Warerhousing

Corporation, New Delhi 100.00 664.43 - 764.43 758.58

5. Council for Leather Export - - 150.00 150.00 - 6. DC(SSI) - - 50.00 50.00 - 7. DoC - 1005.00 - 1005.00 - 8. DM North 24 Paragana 186.63 - - 186.63 - 9. Enng. Export Promotion

Council - Kolkatta - 150.00 - 650.00 500.00

10. Export Promotion Council for Handicrafts – New Delhi

50.00 750.00 300.00 1100.00 -

11. Footwear Design & Development Institute

51.81 69.45 - 121.26 41.86

12. Gem & Jewellary EPC - Mumbai

400.00 100.00 - 500.00 500.00

13. India Trade Promotion Organisation – New Delhi

500.00 1300.00 1485.00 3385.00 200.00

14. Kandla Special Economic Zone 713.31 298.33 1313.94 2325.58 980.36 15. Madras Special Economic

Zone 1219.70 528.31 201.69 1949.70 1446.73

16. Manikanchan SEZ - - 57.10 57.10 - 17. Marine Products E.D. Authority 600.00 - - 600.00 - 18. National Institute of Fasion

Technology, Gandhinagar 50.00 - - 50.00 -

19. Noida Special Economic Zone 300.00 623.54 690.93 1614.47 828.96 20. Santacruz Special Economic

Zone 361.41 500.00 - 861.41 -

21. Spices Board 43.28 150.00 - 193.28 - 22. Visag. Special Economic Zone 842.25 514.85 484.00 1841.10 1095.77 23. Falta Special Economic Zone 365.63 748.82 1360.65 2475.09 1236.45 24. Handloom Export Promotion

Council 33.00 - - 33.00 -

25. MMTC - 417.76 - 417.76 - 26. National Centre for Trade

Information - 3.35 - - -

27. Border Road Organisation, New Delhi

- 850.00 466.70 1316.70 -

Total 8368.99 9895.00 7907.39 26768.02 9915.10 Special Economic Zones

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

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environment for export production. There are seven SEZs set up by the Government. (D) Kandla Special Economic

Zone(KSEZ) This zone was set up on 700 acres of

area with the objective of increasing exports and earning foreign exchange besides industrializing the backward region of Kutch and assisting in better utilisation of the cargo handling facilities developed at Kandla Port. With 139 units currently operating, the total exports from 2000-01 are as under:-

(Rs. in crores) Year Target Exports 2000-01 550 527.89 2001-02 650 540.26 2002-03 550 729.29 2003-04 1020 1018.82 2004-05 (upto 11/04)

1275.00 710.75

KSEZ is a multi-product Zone in

which a wide range of items including stainless steel utensils, engineering goods, electrical products, pharmaceuticals, cosmetics and toiletries, castor oil, ready made garments, knitwear etc. are manufactured.

(E) Santacruz Special Economic Zone

(SSEZ) Santacruz Special Economic Zone was

set up in Sept., 1974 in 100 acres of land 179 units are in operation in the Zone. The total export during the year from 2000-01 are as under:-

(Rs. in crores) Year Target Export

2000-2001 5193.74 2001-2002 5000 5225.60 2002-2003 5850 6083.02 2003-2004 7600 7832.81 2004-05 (upto 12/04)

9790 6589.81

(F) Noida Special Economic Zone (NSEZ)

The Zone has been set up in 1985 in

Noida (U.P.) near Delhi. NSEZ has been developed in a phased manner on 310 acres of land in which an area of 260 acres has been fully developed. At present, there are 142 units in operation.

NSEZ is a multi product zone with

units engaged in manufacturing of electronics items, software products, engineering goods, gem and jewellery, toys, garments and pharmaceuticals. The exports from the zone during the years from 2000-01 are as under:-

(Rs. in crores) Year Target Export 2000-01 1043.20 2001-02 992.38 2002-03 1100 1001.17 2003-04 1400 1534.17 2004-05 (upto 12/04)

1920 2479.00

(G) Madras Special Economic Zone

(MSEZ) The MSEZ was established in 1985,

over an area of 98 acres, which was expanded with another 163 acres in 1987. Presently there are 101 units engaged in manufacture of electronic items, engineering goods, granite, rubber products, chemicals and allied products, Gem & Jewellery, Textiles, leather goods and pharmaceuticals. The total exports from 2000-01 are as under:-

(Rs. in crores) Years Target Exports 2000-2001 660.00 690.84 2001-2002 800.00 764.30 2002-2003 875.00 822.35 2003-2004 1040.00 1037.96 2004-2005 (upto 12/04)

1295.00 979.15

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(H) Cochin Special Economic Zone

(CSEZ)

The CSEZ was setup in 1985 in an area of 103 acres at Thrikkakara in Ernakulam District. Presenlty 66 units are in operation in the Zone. This is a multi-products zone with units engaged in the manufacture of electronic items, engineering goods, gem & jewellery, readymade garments, wood products, frozen foods, rubber gloves, plastics, ceramics, video cassettes and value added spices. The year-wise exports since 2000-01 are as under:-

(Rs. in crores)

Years Target Exports 2000-2001 304.30 2001-2002 278.82 2002-2003 325 270.42 2003-2004 380 298.91 2004-05 (upto 11/04)

375 290.00

(I) Falta Special Economic Zone(FSEZ)

FSEZ has been set up over an area of 280 acres near Kolkatta. Presenlty there are 82 units functioning. The zone is engaged in manufacture of electronic items engineering goods, gem & jewellery, ready made garments, rubber products, frozen foods, tea etc.

The exports from the zone during the years from 2000-01 are as under:- (Rs. in crores) Year Target Exports 2000-2001 519.97 2001-2002 929.80 2002-2003 650 512.39 2003-2004 720 825.34 2004-2005 (upto 11/04)

1030 337.29

(J) Visakhapatnam Special Economic Zone (VSEZ)

The Government have notified setting

up of the seventh SEZ at Visakhapatnam on 15.3.1989. An area of 360 acres of land has been acquired for the zone out of which basic infrastructural facilities in the first phase of the zone covering an area of about 163 acres have been completed. The zone has also been declared as custom bonded area by the Department of Revenue. At present 25 units in operation. The exports during the years from 2000-01 are as under:-

(Rs. in crores) Year Target Export 2000-2001 219.08 2001-2002 250.98 2002-2003 300 357.27 2003-2004 500 435.67 2004-05 (upto 11/04)

545 288.03

Trade Fairs/ Exhibitions/ Commercial Publicity

The ITPO seeks to achieve the core objective of export promotion through increased exposure to Indian traders at fairs in India and abroad. The character of ITPO and its mandate are at Annexure – IV. Fairs in India ITPO’s domestic exhibitions mirror the latest developments in various sectors of the Indian industry. These events provide opportunity to the Indian manufacturers/exporters to promote their exports and also for launching and test marketing of their new products and services.

In the course of expanding range of products ITPO has included four new events in its calendar of 21 exhibitions during 2004-05. These events include IITF2004, India International Leather Fair, International Leather Goods Fair, Tex-Styles India, Delhi Book Fair, Arogya,

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Aahar, Sajavat Fair, Cool Home Fair, Stationery Fair, Kosmetika 2004 (new event), Ist Sports Goods & Physical Fitness Equipment Exhibition (new event), Ist I.T. India (new event) and Ist Education and Job Fair (new event). In addition, 66 other exhibitions are also organised by Industry Associations, EPCs and private fair organisers. These include Indian Handicrafts & Gifts Fair, FDI International. Congress & Dental Trade Show, India International Garment Fair, Interior/Exterior Expo 2004, Powergen India & Central Asia 2005, and Indian Engineering Trade Fair 2005. During the year 2005-06, ITPO plans to increase the events to 25 fairs by including events on new products like Gardening and Cool Home etc. In addition, the other organisers are likely to host 70 events including major fairs like Indian Handicrafts and Gifts Fair, Garment Fair, Auto Expo, World Book Fair, Screen Printing Fair (FESPA), Dental Equipment Fair, Paperex, Defexpo and Plast India. IITF

ITPO organized 24th annual India International Trade Fair (IITF) from November 14 to 27, 2004 with the theme “ Information Technology and Agriculture”. The display covered an area of about 96700 sq.mtrs. This attracted 26 states and 4 Union Territories as well as 29 Public Sectors Undertakings, Commodity Boards, EPCs, Banks & Insurance Companies.

Around 7400 exhibitors

participated in the fair which included participation of 327 foreign companies from 28 countries. With 86 delegations from 48 countries, the number of delegations visitng IITF 2004 have increased as compared to last year. The fair provided an ideal platform for short and long term business transactions, sourcing supplies and appointing agents/distributors, launching new

products, text marketing & firming up of joint ventures tie-ups and technology transfers. IITF 2005 will be Silver Jubilee edition of the event. As such efforts are on to encourage participation of large industrial houses for depicting the progress made in various fields in India. Efforts shall also be made to increase foreign participation. Fairs Abroad During April –November 2004, ITPO organised participation in 40 trade fairs out of total 54 events expected to be held during the year 2004-05. Of which 19 were general events while 21 were specialized events. Geographically, 9 were held in WANA, 15 in Europe, 8 in South East Asia, 8 in America. An exclusive Indian exhibition “A Slice of India in Mongolia “ was also held in the month of Sept. 2004.

During 2005-06, ITPO targets to increase India’s participation in 63 fairs/exhibitions across various countries viz., 13 in America, 23 in Europe, 13 in WANA countries and 14 in South East Asia. One of the major overseas event in which ITPO will be participating during the year 2005-06 is Expo 2005 Aichi Japan from March 25 to September 25, 2005 being organized on behalf of Government of India. The theme of the event is “Nature & Humankind”. India will be a major participating nation and preparations are on to project India in the right perspective. Trade Development Activities Export development programmes in identified markets create awareness of India’s manufacturing and export capabilities especially in new markets, as also provide opportunities to Indian exporters to garner export orders. During the year 2004-05, two Buyer Seller Meets

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(BSMs) in Japan during 15th India Home Furnishing Fair, the 25th India Garment Fair and one Buyer Seller meet in New Zealand were organised. These three events generated a business worth US$ 23.57 millions and were attended by 2479 buyers from leading department stores, wholesalers, importers, trading houses etc. During 2005-06 five BSMs are targeted in Japan, Australia, New Zealand and Brazil. Visit of 10 buying delegations from Japan, Russia, USA etc. were hosted and one to one meetings were arranged with the potential Indian units during their visit. During 2005-06, ITPO will be hosting about 10 Buying Delegations from different countries across the globe. In order to get maximum foreign business delegations at the time of IITF 2004, a Seminar on “International Trade Opportunities in Technology” was organized. A Seminar relating to export potential in the Indian Textile Industry will be organized during TEX-Style India 2005. Besides above, two Seminars on export potential are also proposed to be organized during 2005-06. Under the new Business Development Programme with Departmental Stores, four Stores have been identified for organizing India Promotion during the year 2005-06. ITPO provided a package of services to export worthy units which are enrolled as Regular Members. The package includes trade enquiries received from foreign offices, market intelligence, product development, details on importers, arranging meeting with visiting delegations, etc. Till November 2004, 160 trade enquiries received through ITPO foreign offices were disseminated to Regular Members.

Trade Information

During the year 2004-05, ITPO organized five Catalogue Shows in Algiers (Algeria), Hamburg (Germany), Damascus (Syria), Thessaloniki (Greece) and Johannesburg (S.Africa). During 2005-06, ten Catalogue Shows, two Product Promotion Programmes (PPP’s) and a Sales cum Study Mission are proposed to be organized.

The Trade Portal and the Business Information Centre (BIC) comprises of physical & electronic library with over 6000 trade related books, publications, periodicals, journals, statistics, directories and CD-ROMs and on-line database. The Trade Portal (www.tradeportalindia.com) contains over 10 GB of information covering 54 countries and 28 product groups accounting for more than 85% of India’s exports.

During 2004-05, over 2900

Associated members and 1200 Regular members were serviced through the Trade Portal while about 2000 visitors benefited from the BIC in Hall no. 19. The electronic portal was accessed by about 80000. 1. Development of Export Oriented

Industries

Some of the important features of production and export of commodities handled by the concerned Commodity Boards are given below :

(A) Tea

The following are the figures of

production and export of tea during the last few years: -

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(in Million Kgs.) Year Production (M.Kgs.) Export (M.Kgs.)

Physical Target

Achievement Physical Target

Achievement

1997 - 1998 825 836 185 211 1998 - 1999 860 855 200 206 1999 - 2000 905 835 220 192 2000 - 2001 950 848 245 204 2001 - 2002 1000 847 265 190 2002 - 2003 906 838 234 184 2003 - 2004 934 850 241 183 2004-2005 946 632.05

(upto 10/04) 248 103.75

(upto 10/04) 2005-06 850 200

During 2003-04 the all India tea

production recovered from the previous year’s setback to reach 850.49 M. Kgs as against 837.60 M. Kgs. This shift was aided by favourable climate in the North India tea growing areas where production increased by about 23.51 M. Kgs over that of last year despite a decline in the South Indian crop by 10.62 M. Kgs. However, during the first seven months of current year i.e, 2004-05 the tea production has declined substantially i.e, by 30.20 M. Kgs over the same period of 2003-04 due to unfavorable agro-climatic conditions in North Indian tea growing regions.

During 2003-04 tea exports suffered a setback with exports reaching 183.07 M. Kgs and earning and Rs. 1636.99 crores as against 184.40 M. Kgs. and Rs.1665.04 crores respectively in 2002-03. Tea sector is yet to recover from this set back as exports have declined by 6.76 M. kgs during the first eight months of 2004-2005. as compared to the corresponding period of the previous year

These trends in 2004-05 signal that the total production and exports during the current year may reach to the level of 825 M.Kgs. and 175 M.Kgs. respectively.

(B) Coffee

Coffee in India occupies an extent of 3.40 lakhs ha. in the most bio-sensitive hilly tracts of western and eastern ghats in the states of Karnataka, Kerala and Tamil Nadu. The production of coffee is subject to vagaries of nature and also is a micro-enterprise activity with over 1,40,000 growers of which over 98% of them on less then 10 ha. area.

The planted area in these states are

as under:-

PLANTED AREA:

Sl. No

State Arabica Robusta Total

1. Karnataka 109620 94658 204278 2. Kerala 4095 80589 84684 3. Tamil

Nadu 25018 5646 30664

4. NTA 31197 3279 34476 5. NCA 1000 0 1000 All India 170930 184172 355102

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Production and Export of coffee - 1997-98 to 2004-05

Crop Production Export Season Target Achievement Target Achievement (In

Tonnes) (In Tonnes) (In Tonnes) Quantity(In

Tonnes) Value(Rs. in crores)

1997-98 2,25,000 2,28,300 1,65,000 1,79,050 1707.59 1998-99 2,40,000 2,65,000 1,70,000 2,11,623 1751.53 1999-2000 2,60,000 2,92,000 1,80,000 2,44,947 1901.21 2000-2001 2,80,000 301,200 1,90,500 2,46,908 1374.25 2001-02 3,00,000 306,600 2,00,000 2,13,586 1050.37 2002-03 3,00,000 275,275 2,10,000 2,07,333 1051.45 2003-04 275,000 270,500 2,15,000 2,32,684 1158.45 2004-05 290,000 290,800* 2,25,000 1,38,564 717.71

(upto 11/04) * Anticipated

(C) Rubber During the last five decades, rubber

plantation has registered significant growth in area, production and productivity. With productivity of 1663 Kgs per ha. in 2003-04, India occupies the highest position among the major natural rubber producing countries. The country is the fourth largest producer of Natural Rubber (NR) sharing 8.67% of the world output and also the fourth largest consumer of NR (719600 MT) accounting for about 9.06% of the global consumption next to China, USA and Japan. NR is the basic raw material for the manufacture of more than 35000 products. About one million farmers are dependent on the rubber sector while about seven lakh people are engaged in the Rubber plantation sector either directly or indirectly. Approximately 10000 tribal families, mostly in the North East, have been resettled on rubber based rehabilitation programmes.

Production of Natural Rubber during

the 9th Plan period and the 10th Plan period upto 2003-04 and targeted production for 2004-05 and 2005-06 are given below :-

Year Production (tonnes)

Annual percentage

change 1997-98 583,830 6.3 1998-99 605,045 3.6 1999-2000 622,265 2.8 2000-2001 630,405 1.3 2001-2002 631,400 0.2 2002-2003 649,435 2.9 2003-2004 711,650 9.6 2004-2005 (e) 760,000 6.8 2005-2006 (p) 798,000 5.0 (e)Estimate (p) Projected (D) Spices

The targets fixed for export during 2004-05 is 2,50,000 tonnes of spices and spices products valued at Rs. 2000.00 crores (US$.450.00 million). Estimated exports for the year 2003-04 was 2,46,566 tonnes valued at Rs. 1905.08 crores (US$ 415.15 Million).

Export performance during April-Nov. 2004 was 93% of targeted quantity and 71% of the targeted value. Thus the exports have increased by 59% in quantity terms and 17% in rupee value terms as compared to the corresponding period last year However, the unit value realization has declined for Cardamom (small), Cardamom (large), Chilli, Ginger, Coriander, Cumin, Fennel, Fenugreek,

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other Seed Spices, Garlic, Nutmeg & Mace etc. Substantial decline in export was noticed in the case of pepper, cardamom, garlic, nutmeg and mint while an unprecedented growth was evident in

the case of chilli, coriander, cumin, fennel, fenugreek and other seed spices.

The spices wise breakup of target

and achievements are given below:- (QTY:TONNES: VALUES: Rs. LAKHS)

Item Actual 2003-04 Target for 2004-05 Achivements 2004-05 (upto Nov. 2004

Qty. Value Qty. Value Qty. Value Pepper 16700 14350.50 20000 17000.00 9000 7869.50 Cardamom(s) 690 3301.00 750 4085.00 325 1268.50 Cardamom(l) 800 1107.00 1400 1960.00 455 606.78 Chilli 81500 35511.25 75000 31500.00 93500 34680.63 Ginger 5000 2340.50 7000 3500.00 6100 2591.25 Turmeric 34500 12751.88 31000 10850.00 29750 11235.00 Coriander 21000 7103.75 18000 5850.00 28650 6763.63 Cumin 6700 4983.75 10000 7500.00 10500 7678.25 Celery 4400 1389.00 4000 1220.00 2925 921.75 Fennel 5200 2143.00 5000 2250.00 5300 1813.48 Fenugreek 7500 1660.75 10000 2250.00 10500 1983.25 Other seeds (1) 10000 2324.75 13000 3250.00 9450 2090.00 Garlic 3500 1321.13 4000 1520.00 850 282.88 Nutmeg & Mace 1450 2731.53 1500 3000.00 875 1434.80 Vanilla 26 3606.35 50 6500.00 15 2276.13 Other spices (2) 24000 7663.00 25000 8750.00 12000 4370.00 Curry powder 7600 6508.13 8000 6800.00 5100 4161.50 Mint Products (3) 11250 42505.00 11500 43815.00 4375 18747.75 Spices Oils & Oleoresins 4750 37206.25 4800 38400.00 3725 30593.75 Total 246566 190508.50 250000 200000.00 233395 141368.80

Value in Million US$ 415.15 450.00 311.59 (E) Tobacco

India is the 3rd largest producer of unmanufactured tobacco in the world. Flue Cured Virginia (FCV) tobacco is the major variety of tobacco exported from India and it constitutes about 70% of the total unmanufactured tobacco exports from the country. Non-FCV tobacco varieties like burley, Sun cured country tobacco, Lalchopadia, Judi and Rustica tobacco are also exported. India also exports tobacco paste, chewing tobacco, bidi, snuff and zarda scented tobacco.

Year wise export targets and actual exports of Tobacco and Tobacco products during the last five years are as follows:-

Year Target Actual exports Qty.

(000 tons)

Value (Rs. In crores

Qty. (000 tones)

Value (Rs. In crores)

2000-2001

115 900.00 115.93 903.38

2001-2002

106.50 930.00 102.08 888.52

2002-2003

106.50 930.00 127.55 1095.95

2003-04

115.00 980.00 150.96 1175.63

2004-05

150.00 1190.00 87.74 746.65*

*upto 10/04. Export of tobacco and tobacco products for the 2003-04 was about 15960 tones valued at Rs. 1175.63 crs. as against 12755 tons exported during 2002-03 at a value of Rs. 1096.00 crs. The export of tobacco and tobacco products increased by 7% in quantity and by 21% in rupee terms.

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(F) Marine Products EXPORT PERFORMANCE:

The performance of Indian seafood exports in 2003-04 was not on the expected lines. There was a declining trend in exports due to the adverse market situation prevailing in the major markets like USA, Japan and European Union. While the anti dumping procedure initiated by the US Government affected the Indian shrimp exports to USA from the month of February 2004, the antibiotic residue in samples drawn from the consignment sent to Europe and the Japanese buyers’ concerns on muddy and mouldy smell in farmed shrimp resulted lesser intake of

goods from India. Added to this production of fish from capture sources was also down last year. The decrease in exports during 2003-04 was 11.83% in quantity, 11.47% in rupee earnings and 6.61% in US$ terms as compared to 2002-03. The average unit value realized however, increased to US$ 3.23 per kg compared to US $ 3.05 per kg of the previous year, recording an increase of 5.92%. The details of exports during the last 5 years are as follows: - EXPORT GROWTH OF MARINE PRODUCTS

(Q: Quantity in M. Tons, V: Value Rupees in crore, $: US Dollar in million)

Year Export Change (%annual change) Unit value

1 2 3 4 5

1999-2000 Q: 343031 40097 13.24 V: 5116.67 489.80 10.59 Rs.149.16 $: 1189.09 82.18 7.42 $: 3.47

2000-2001 Q: 440473 97442 28.41 V: 6443.89 1327.22 25.94 Rs.146.29 $: 1416.32 227.23 19.11 $: 3.22

2001-2002 Q: 424470 -16003 -3.63 V: 5957.05 -486.84 -7.56 Rs.140.34 $: 1253.35 -162.97 -11.51 $: 2.95

2002-2003 Q: 467297 42827 10.09 V: 6881.31 924.26 15.52 Rs.147.26 $: 1424.90 171.55 13.69 $: 3.05

2003-2004 Q: 412017 -55280 -11.83 V: 6091.95 -789.36 -11.47 Rs.147.86 $: 1330.76 -94.14 -6.61 $: 3.23

Item-wise export of marine products during 2003-04:

Frozen Shrimp continued to be the largest item in terms of value. Shrimp contributed 31.50% in volume and 65.88% in value of the total marine exports. from India. Even though the share of Shrimp exports has increased from 28.85% of the previous year to 31.50 % in terms of quantity, it declined from 66.97% of the previous year to 65.88% in terms of value.

Export of Frozen Shrimp has shown a decline both in terms of quantity and value. The unit value of Shrimp also decreased to US$ 6.76 per kg from US$ 7.07 per kg i.e. down by 4.48%. It recorded a decline to the tune of 3.74%, 12.92% and 8.06% in terms of volume, rupee earnings and in US$ realisation respectively.

The share of Frozen Fish during 2003-4 04 was 33.50% in volume against

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42.01% in 2002-03 and 10.19% in value against 12.23% in 2002-03. The export of Frozen fish also showed a considerable decrease of 29.70% in quantity and 26.25% in rupee value compared to the previous year. However, the unit value realised increased to US $ 0.98 per kg from US $ 0.89 of the last year registering a growth of 10.63%. All the Frozen Fish except Frozen Tuna (Skipjack, Yellow Fin, Big eye), Frozen Sea bream Frozen. Baracuda and Fresh water fish contributed considerably for the decrease in the export of Frozen Fish.

This year, export of Cephalopods especially Squid showed a negative growth however Frozen octopus showed a positive growth; though Cuttlefish showed a positive growth in terms of value and unit value realisation it showed a declining trend in quantity. The decline of Frozen Squid was to the tune of 0.02% in terms of quantity and 2.98% in value terms while in dollar terms it has registered a positive growth of 1.47%.With a, a marginal increase in unit value realisation. Export of Frozen Cuttlefish showed an increase of 4.34% in terms of value and 9.90% in terms of US$ realisation. However, it showed a negative growth of 4.28% in terms of volume.

There has been considerable increase in the export of dried items with 53.75% in volume, 72.96% in rupee earnings and 81.50% in US$ realisation compared to that of the previous year. The average unit value also increased by 18.07%. Exports of dried Salted Jelly fish have increased remarkably in quantity, value and unit value realisation. Dried fish fillet, Dried shark tail, Dried Nakhla, Dried fish nails, etc. also contributed for positive growth. Export of Beche-de-mer was nil during the year due to ban.

Live items except Live Whelk (Baigai) and Live Aquarium fish showed a decrease in exports during the year. It showed an increase by 10.69% in volume and 0.27% in US$ realisation and a decrease of 4.77% in rupee earnings. The export of chilled items showed an increase to the tune of 12.81% in volume 8.29% in rupee earnings, and 14.10% in US $ realisation. Growth was mainly recorded in the export of Chilled items like Reef Cod, Prawn, Snapper, Pomfret, Fresh water fish etc.

Export of Surumi declined. However, there is a marginal increase in terms of quantity in respect of Crabstick, Frozen Seafood mix, Crab, Baigai meat, etc. Details of item-wise exports during the last two years are as below: -

EXPORT OF MARINE PRODUCTS

Q: Quantity in M T, V: Value in Rs. Crore, $: US Dollar Million, (*) UV$: Unit value in US$/KG

ITEMS % share to Total

APRIL-MARCH 2003-04

APRIL-MARCH 2002-03 VARIATION

Annual Percentage

change 1 2 3 4 5 6

Frozen Shrimp 31.50 Q 129768 134815 -5047 -3.74 65.88 V 4013.07 4608.31 -595.24 -12.92 65.88 $ 876.64 953.44 -76.80 -8.06 UV$ 6.76 7.07 -0.31 -4.48 Frozen Fin fish 33.50 Q 138023 196322 -58299 -29.70 10.19 V 620.73 841.65 -220.92 -26.25 10.20 $ 135.82 174.63 -38.81 -22.22 UV$ 0.98 0.89 0.09 10.63

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ITEMS % share to Total

APRIL-MARCH 2003-04

APRIL-MARCH 2002-03

VARIATION Annual Percentage

change 1 2 3 4 5 6

7.14 V 435.18 417.09 18.09 4.34 7.13 $ 94.92 86.37 8.55 9.90 UV$ 2.40 2.09 0.31 14.80 Frozen Squid 9.18 Q 37832 37838 -6 -0.02 6.12 V 372.92 384.37 -11.45 -2.98 6.09 $ 81.00 79.83 1.17 1.47 UV$ 2.14 2.11 0.03 1.49 Dried items 3.05 Q 12574 8178 4396 53.75 2.39 V 145.68 84.23 61.45 72.96 2.38 $ 31.69 17.46 14.23 81.50 UV$ 2.52 2.13 0.39 18.07 Live items 0.57 Q 2341 2115 226 10.69 0.84 V 51.1 53.66 -2.56 -4.77 0.84 $ 11.15 11.12 0.03 0.27 UV$ 4.76 5.26 -0.50 -9.42 Chilled items 0.92 Q 3779 3350 429 12.81 1.05 V 64.04 59.14 4.90 8.29 1.05 $ 14.00 12.27 1.73 14.10 UV$ 3.71 3.66 0.05 1.17 Others 11.67 Q 48090 43298 4792 11.07 6.39 V 389.23 432.86 -43.63 -10.08 6.43 $ 85.54 89.78 -4.24 -4.72 UV$ 1.78 2.07 -0.29 -14.22 TOTAL 100 Q 412017 467297 -55280 -11.83 100 V 6091.95 6881.31 -789.36 -11.47 100 $ 1330.76 1424.90 -94.14 -6.61 UV$ 3.23 3.05 0.18 5.92

* U V $ variation % is worked out on the basis of actual value and not on the rounded value. Salient Features of Item/Market-wise export performance during 2003-04. 1) Frozen Shrimp was the single largest item of export earnings contributing Rs. 4013.17 crore with a share of nearly 2/3 of the total export earnings. 2) The export of Frozen Shrimp had registered a negative growth in terms of volume and value. 3) Frozen Fish continued to be the major item in terms of volume in our export basket with a share of 33.50% in 2003-04. The main component was

Ribbonfish, majority of which was exported to China. 4) Export of Cuttlefish registered a decrease in quantity (4.28%) whereas there was an increase in value (4.34%) and foreign exchange realisation (9.90%). 5) Export of Frozen Squid also registered a marginal decrease in quantity (0.02%) and value (2.98%). 6) Export of dried items registered a growth of 53.75% in quantity, 72.96% in value and 81.50% in US $ realisation.

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7) Though the volume of exports to the USA has delined considerably the USA continued to be the single largest market for Indian marine products in value terms. The share of USA in Indian exports has declined to 12.90%, 27.61% 27.49% from 13.21%, 29.81%, 29.79% in quantity, in rupee value and in US$ terms respectively. Export to USA declined by 13.86% in volume, 17.99% in rupee value and 13.82% in US dollar realisation compared to the previous year. 8) There was a shortfall in the export to Japan to the tune of 8.92%, 24.18% and 19.96% in quantity, in rupee value and in US$ terms respectively. The share of Japan during the year was only 12.41% in volume and 19.10% in value. 9) Export to EU has registered a positive growth as compared to the previous year. The export to EU countries showed a marginal increase of 1.84%, 5.94% 11.16% in quantity, rupee value and US $ terms respectively as compared to the year 2002-03. The member countries of EU together accounted for 23.37%, 24.15% and 24.04% in the total quantity, in rupee value and in US $ terms of Indian marine products exported during 2003-04. 10) In terms of quantity, China occupied the first position contributing 30.03% of the total exports from India. However, China’s share was only 11.10% in rupee value terms and 11.39% in US $ terms. This was mainly due to the export of low valued items, especially Finfish varieties like Frozen Ribbonfish, Frozen Croaker, etc. There was also a significant decrease in exports to China in terms of quantity by 27.56% and value by 11.28% in rupee value terms and 4.19% in US $ terms.

There was an increase of 5.92% in the overall unit value. The unit value of all major items exported showed an increasing trend except live items, which showed a decline of 9.42%. ACTUAL PROGRESS DURING 2004-2005.

Export of marine products during the first half (April-September) of the year 2004-05 has registered a negative growth of 3.83% in rupee terms and 1.48% in US$ earnings as per the provisional data. Export effected during this period was 160566 MT valued at Rs.2898.05 crore and US $ 639.11 million. However, a marginal growth of 0.07% is recorded in terms of volume as compared to the same period of last year. The interim order in the Anti dumping case fixing an import duty of 14.20% for the shrimp imported from India to USA, affected the export of Frozen Shrimp to that country. Frozen Shrimp to USA declined to the tune of 19% in volume and 20% in US dollar terms.

Export to Japan has shown a positive growth both in terms of quantity and value. Even though there was considerable growth in volume of the shrimp export to Japan, there was no corresponding growth in value realisation due to fall in unit value realization.

Export to EU was almost stagnant but the share of export to EU has slightly increased aided by diversion of export of shrimp to EU. The export performance during the first half of 2004-05 is given below: -

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EXPORT OF INDIAN MARINE PRODUCTS

(Q: Quantity in M. Tons, V: Value in Rs. Crore, $: US Dollar in Million) Month (*) 2004-05 2003-04 Variation (%)

April-September Q: 160566 160455 111 0.07 V: 2898.05 3013.45 -115.40 -3.83 $: 639.11 648.71 -9.60 -1.48 (*) Provisional

Target for 2004-05 Export target for 2004-05 is US $ 1300 million. Out of which we have achieved US$ 905.85 million based on the provisional export figure up to November 2004 thus achieving 69.68% of the target fixed. Outlook for 2005-06 Export target for 2005-06 is US$ 1500 million. (G) Agricultural and Processed Food Products Export Development Authority

The Agricultural and Processed

Food Products Export Development Authority (APEDA) was established by an Act of Parliament in 1986 for the development and promotion of exports of certain agricultural and processed food products covered under the schedule to the APEDA Act. APEDA’s Head Office is located at New Delhi and there are two Regional Offices located at Mumbai and Bangalore. Cess at the rate of 0.5 percent ad valorem on exports of APEDA scheduled products is collected under the APEDA Cess Act, 1986. The commodities covered under the schedule to the APEDA Act are (1) Fruits, vegetables and their products, (2) Meat and meat products, (3) Poultry and poultry products,

(4) Dairy products, (5) Confectionery, biscuits and bakery products, (6) Honey, jaggery and sugar products, (7) Cocoa products, (8)Alcoholic and non-alcoholic beverage, (9) Cereal products, (10) Groundnuts, peanuts and walnuts, (11) Pickles, papads and chutneys, (12) Guar gum, (13)Horticulture and floriculture products, (14) Herbal and medicinal plants, (15) Rice (non-Basmati).

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The Export performance are as under:- (Qty. in M. Tones) (Value in Rs. cCrores)

Products 2002-2003 2003-04

Value Qty. Qty Value Floriculture & Seeds Floriculture 165.86 0 30659.53 249.55 Fruits & Vegetables seeds 100.97 10657.65 5169.83 53.6 Total for Floriculture & Seeds 266.83 10657.65 35829.36 303.15 Fruit & vegetables Fresh onions 361.80 588711.75 859938.76 715.87 Other Fresh Vegetables 287.64 183019.33 188320.82 252.28 Dried Nuts (Walnuts) 121.23 7631.24 6417.98 101.43 Fresh Mangoes 84.19 38003.43 60551.32 110.52 Fresh grapes 110.15 25680.62 26783.83 105.89 Other fresh fruits 121.74 90608.46 149294.26 171.27 Total for Fruits and Vegetables 1086.75

933654.83

1291306.97 1457.26 Proc. Fruits & Vegetable Dried & Preserved vegetables 561.03 216640.16 211160.09 520.49 Mango pulp 297.01 96107.31 89514.84 241.99 Pickle & Chutney 154.16 56384.37 63052.73 119.75 Other Processed fruits & vegetables

194.73 54792.77 66070.26 243.58

Total 1206.93 423924.61 429797.92 1125.81 Animal Products Buffalo Meat 1305.45 297897.26 343817.08 1536.77 Sheep/Goat Meat 39.95 4973.55 16820.53 110.39 Poultry Products 156.47 26450.01 415228.17 202.4 Dairy Products 153.59 21439.81 15882.67 155.19 Animal Casings 140.27 8296.17 732.84 12.43 Processed Meat 4.8 669.48 986.13 7.63 Total 1800.53 357226.28 793467.42 2024.81 Other processed foods Groundnuts 178.3 67889.75 176109.32 544.3 Guargum 486.74 111948.36 120561.27 507.9 Jaggery & Confectionery 212.98 191522.54 295013.25 331.48 Cocoa Products 11.94 1235.21 1688.37 16.15 Cereal Preparations 268.83 51809.74 46275.35 241.71 Alcoholic & Non Alch. Beverages

102.47 26164.58 28964.09 108.62

Miscellaneous Preparations 170.2 38687.41 65252.02 210.33 Milled Products 288.65 499692.78 545755.39 355.95 Total 1720.11 988950.37 1279619.06 2316.44 Cereals Non-basmati rice 3833.26 4347139.99 771475.37 2174.94 Basmati rice 2062.59 710292.21 2640568.93 1993.05 Wheat 1759.87 3671253.97 4093080.52 2391.15 Other cereals 91.08 106095.78 604222.66 397.55 Total 7746.80 8834781.95 8109347.48 6956.69 Grand Total 13827.95 11551695.69 11939368.21 14184.16

27

Comparative Export Performance for Export (April 2003 – August 2004).

PRODUCTS

Apr - Aug 03

Apr - Aug 04

QTY VALUE QTY VALUE

In MTs Rs. Lakhs MILL $ In MTs Rs. Lakhs MILL $

SCHEDULE PRODUCTS

A. FLORICULTURE 8401.05 18.11 7746.49 16.91

B. FRUIT/VEG.SEEDS 1580.17 2063.52 4.45 1156.26 1545.24 3.37

FLORICULTURE & SEEDS 10464.57 22.55 9291.73 20.29

A. FRESH FRUITS 28791.81 62.05 26709.13 58.32

B. FRESH VEGETABLES 26939.34 58.06 33611.88 73.39

FRUITS & VEGETABLES 55731.15 120.11 60321.01 131.71

A. PULSES 74222.00 15517.45 33.44 102903.00 22384.52 48.87 B. PROCESSED FRUITS & JUICES 12257.90 26.42 13303.08 29.05 C. PROCESSED VEGETABLES 10871.15 23.43 10292.07 22.47

PROCESSED FRUITS &VEGETABLE 38646.50 83.29 45979.67 100.39 A. DAIRY PRODUCTS 7082.64 15.26 8987.49 19.62 B. POULTRY PRODUCT 7355.92 15.85 8903.78 19.44 C. MEAT AND ITS PRODUCTS 49845.85 107.43 57154.63 124.79 LIVESTOCK PRODUCTS 64284.41 138.54 75045.90 163.86

A. GROUNDNUTS 19073.00 6089.90 13.12 58326.00 16955.23 37.02

B. GUARGUM 52880.00 24638.63 53.10 44044.00 19890.86 43.43 C. SPIRIT AND BEVERAGES 5314.82 11.45 4452.39 9.72 D. MISC. PROCESSED ITEMS 41934.83 90.38 33127.88 72.33 OTHER PROCESSED FOODS 77978.18 168.06 74426.36 162.50

NON-BASMATI RICE 1519989.00 118982.96 256.43 755281.00 80257.58 175.23

SUB- TOTAL 366087.77 788.98 345322.25 753.98 NON SCHEDULE PRODUCTS

A. BASMATI RICE 223489.00 62530.20 134.76 443736.00 104866.74 228.97

B. WHEAT 1525868.00 82227.38 177.21 1258547.00 90487.53 197.57 C. OTHER CEREALS 50113.00 3146.41 6.78 820894.00 54196.51 118.33

SUB- TOTAL 147903.99 318.76 249550.78 544.87

TOTAL 513991.76 1107.74 594873.03 1298.85 * SOURCE : FIGURES BASED ON DGCIS August 2004 Monthly Vol.

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3. Service for Exports (i). Quality control and pre-shipment inspection The Export Inspection Council was set up by the Government of India under Section 3 of the Export (Quality Control & Inspection) Act, 1963, as an apex body to provide for the sound development of export trade through quality control and pre-shipment inspection. EIC is assisted in its functions by the Export Inspection Agencies (EIAs) located at Chennai, Kochi, Kolkata, Delhi and Mumbai having a network of 41 sub-offices and laboratories to back up the pre-shipment inspection and certification activity. The main functions of EIC as contained in the Act are:- (1) To advise the Central Government

regarding measures to be taken for enforcement of quality control and inspection in relation to commodities intended for export and to draw up programmes thereof and

(2) To draw up programmes for quality control and inspection of commodities for exports.

Notifications on export commodities

Pet foods and animal by products

not intended for human consumption would be brought under the Compulsory Quality Control and Inspection prior to shipment through necessary notification

under the Export (Quality Control and Inspection) Act, 1963. All establishments intending to export pet food and animal by products would be assessed for approval on merit by EIAs as the Competent Authority (CA). The notifications on black pepper and chillies would also be revised based on the experience and need of the trade during the year 2005-06 Export Certification Systems

The main systems of export inspection and certification being followed by EIC include Consignmentwise inspection (CWI), In-process quality control (IPQC), Self-certification (SC), and Food Safety Management Systems based Certification (FSMSC).

In the food products namely fish and fishery products, egg Products, milk products and poultry products, EIC has introduced Food Safety Management Systems based Certification (FSMSC) aligned with international standards on Hazard Analysis Critical Control Practices (HACCP) / Good Manufacturing Practices (GMP) / Good Hygienic Practices (GHP). The certification system involves approval of the units followed by periodic surveillance by EIAs.

The value of exports certified under each of the above systems by EIAs is given below:

System of Inspection FOB Value of Exports

(Rs. in crore) Systems Actual

2003-04 Estimated 2004-2005

Forecast 2005-2006

1. Consignment Wise Inspection (CWI)

290.10 221.00 225.00

2. In-Process Quality Control (IPQC) 545.10 650.00 680.00 3. Food Safety Management Systems based Certification (FSMSC)

7400.62 8370.00 9000.00

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During the year 2003-2004 the EIAs conducted Consignmentwise Inspection (CWI) of 1491 consignments valued at Rs.290.10 crore. EIAs certified 3100 consignments valued at Rs. 545.10 crores under the system of In-Process Quality Control (IPQC). Under Food Safety

Management based System Certification (FSMSC), EIAs certified the consignments of Fish & Fishary Products (F&FP), Milk & Milk Products and Egg Products valued at Rs. 7400.62 crore.

The performance during the 2003-2004, 2004-05 and forcast for the year 2005-2006 are given as under:

(Value Rs. Crores) S.No. Systems

2003-2004

2004-2005 Forecast for 2005-2006

No. Value No. Value No. Value i. Consignment wise

Inspection (CWI) 1491 290.10 1450 221.00 1470 225.00

ii. Under IPQC 3100 545.10 2257 650.00 2500 680.00 iii. Food Safety Management

based System Certification (FSMSC)

7400.62 8370.00 9000.00

iv. Certificate of Origin 733183 794000 805000 v. Seminars /Training

Programme 28 30 32

Implementation of Certification in the Food Sector The major activity of EIC/EIAs in the area of inspection and certification is in the food sector. This being a very sensitive sector, an increasing number of countries are imposing import controls. It is necessary to strengthen the certification systems in food sector not only to meet end product requirements of various importing countries but also to align with international standards on inspection and certification as laid down by Codex. It is proposed to review the various schemes under implementation as well as the operational instructions to align these with international standards. This is also very important to further progress inMemorandums of Understanding (MOUs) and Mutual Recognition Agreements (MRAs) with importing countries for recognition of India’s

certification. In the area of fish & fishery products, it is proposed to study the certification system in other major exporting countires with a view to strengthening our system.

In the area of milk products, implementation of the Residue Monitoring Plan will be strengthened with a view to seeking recognition by European Commission (EC) and other countries. In the area of poultry meat & poultry meat products, although three units have applied for approval, one has been approved so far. It is expected that during the year 2005-06, some more units will be approved. In the area of raw (chilled/frozen) meat and animal casings, EIC/EIAs is proposing to intitiate certification of these products and will implement the scheme in 2005-06. On Basmati Rice, it is proposed to organize a workshop for exporters and explain to them the benefits of the scheme.

30

New Areas Other Certification Schemes

EIC is developing scheme for HACCP certification and a quality certification scheme for tea exports on voluntary/mandatory basis. The schemes are proposed to be further developed and implemented during 2005-06.

Enlistment of EIA-Kolkata Laboratory with DGHS

Directorate General of Health

services, Ministry of Health and Family Welfare has authorized laboratory of EIA-Kolkata for undertaking analysis of imported food articles. EIA-Kolkata laboratory has been enlisted to test Biscuits, Marine Products and Fruit Juices imported at all International Borders/ Sea Ports/Airports/ICDs in West Bengal. For 2005-06 attempts are being made to get other labs also authorised. Certificates of Origin (CoO) activity

The field offices of the EIC viz EIAs, being authorized certifying agencies as per Foreign Trade Policy, are actively engaged in certifying CoOs required by the exporters for availing preferential tariffs for their goods. Under the integrated computerisation process, it is expected that the entire activity of issue of Certificates of Origin will be computerised during the year so as to make it more transparent, uniform and users friendly and also help facilitate trade and industry to file their applications on line for the purpose of obtaining CoOs.

Lab Testing Activities

EIC has a network of laboratories attached to EIAs and their sub-offices, which forms the backbone of the inspection and certification activities of EIAs besides being offered to other clients on commercial basis wherever extra

facilities or capacity are available. Besides Pilot Test House, Mumbai, which is the only multi-disciplinary laboratory, EIAs have food laboratories in Chennai, Delhi, Kochi and Kolkata and a number of field laboratories attached to various sub-offices for routine microbiological analysis of Fishery and other food products. To achieve acceptability of test results generated in EIAs labs, Quality systems as per ISO 17025 would be implemented in four main EIA labs at Chennai, Kochi, Mumbai, Kolkata and application made to NABL for accreditation. All the four major laboratories would be well equipped and upgraded to carry out the analysis of antibiotics, pesticides residues and other contaminants in food products during 2005-06

The statistics in respect of number of

samples tested are as given below:

Actual 2003-04

Estiamted 2004-05

Forecast 2005-06

52201 59000 65000

Recognition of Private Inspection Agencies / Laboratories

EIC continues to recognize PIAs

under the provisions of Section 7(1) of Export (Quality Control and Inspection) Act, 1963 The Scheme has been aligned with the international standard on acceptance of inspection bodies, ISO/IEC 17020:1998, to make the same internationally acceptable w.e.f. 1st February 2002. 51 inspection agencies have applied for recognition as per fresh norms out of which 8 have already been recognized and for others the exercise is in progress and is expected to be completed in 2005-06. (ii) Indian Institute of Foreign Trade

Indian Institute of Foreign Trade

was registered under the Societies Registration Act 21 of 1860 on 2nd May,

31

1963 under the aegis of Ministry of Commerce, Government of India. The objectives and activites are at Annex -II IITF has conducted various sponsored MDPs during 2003-04 as detailed below: a) Workshop-cum-Training Programme

on Export Promotion and Preparation of EDP for Manipur.

b) Export Marketing, Procedures & Documentation for DGFT Officers.

c) Export Development Programme for NCCF, New Delhi.

d) Export Marketing, Procedures & Documentation for DGFT Officers.

e) Programme for IES Officers. f) Export Marketing, Procedures &

Documentation for DGFT officers. g) Export Marketing, Procedures &

Documentation for ECGC Officers. h) Export Marketing, Procedures &

documentation for DGFT Officers. i) International Trade Logistics for the

Officers of Defence Services j) Residential Programme on

Globalisation of Small and Medium Enterprises.

k) Export Marketing, Procedures & Documentation for DGFT Officials.

l) WTO and the New Trade Regime for IAS Officers.

m) Trade Policy Issues including WTO for MOC Officials.

n) Export Marketing, Procedures and Documentation

o) Advanced Course on Export-Import Management and the New Trade Regime for DGFT Officials.

p) Export Marketing, procedures and Documentation for ECGC Officials.

q) Export Management for Defence Service Officers.

r) Training Programme for ITS Probationers.

s) Analytical Tools for Trade Analysis. t) Export of Agricultural Commodities

for Officers of NAFED. u) WTO threats & Opportunities for SSI.

v) Advance course on WTO for IAS Officers.

w) Workshop cum training programme on Export Promotion for Meghalaya.

Sponsored programmes held during

Apirl 2004 – January, 2005

1. Workshop on Export Promotion for Senior Officers of North East Region

2. International Marketing for NTPC Officers, NOIDA

3. Orientation for Foreign Trade for Office of Development Commissioner, Noida

4. Workshop cum training programme on export promotion for Arunachal Pradesh

5. Workshop cum training programme on Export Promotion for Assam

6. Export Management for Defence officers 7. Programme for the Officers of ECGC 8. Training Programme on Economy

Diplomacy Module for Indian Foreign Service Probationers

9. Programme for the officers of Mitsubishi Corpn.

10. Programme for the Officers of TATA Power

11. WTO and the New Trade Regime for IAS officers

12. Export of Agricultural Commodities for the Officers of NAFED

13. Logistics and Supply Chain Management for the officers of Chambal Fertilizers and Chemicals Ltd.

14. WTO and Indian Agriculture with reference to Marine Products for MPEDA

Sponsored Management Development Progremmes

1. Workshop – cum – Training Programme on Export Promotion and Preparation of EDP for Manipur

2. Export Marketing, Procedures & Documentation for DGFT Officers

3. Export Development

4. Export Marketing, Procedures & Documentation for DGFT Officers

5. Programme for IES officers

32

6. Export Marketing, Procedures & Documentation for DGFT Officers

7. Export Marketing, Procedures & Documentation for ECGC Officers

8. Export Marketing, Procedures & Documentation for DGFT Officers

9. International Trade Logistics for the officers of Defence Services

10. Residential programme on Globalisation of Small and Medium Enterprises

11. Export Marketing, Procedures & Documentation for DGFT officials

12. WTO & the New Trade Regime for IAS Officers

13. Trade Policy Issues including WTO for MOC officials

14. Export Marketing, procedures and Documentation

15. Advanced Course on Export – Import Management and the New Trade Regime for DGFT officials

16. Export Marketing, Procedures and Documentation for ECGC

17. Export Management for Defence Services Officers

18. Analytical Tools for Trade Analysis.

19. Training programme for ITS Probationers

20. Export of Agricultural Commodities for Officers of NAFED

21. WTO Threats & Opportunities for SSI

22. WTO Threats & Opportunities for SSI

23. Advance Course on WTO for IAS Officers

24. Workshop cum training Programme on Export Promotion for Meghalaya

Marketing and Functional Research Activities

Activities Completed during 2003-2004 During the year 2003-04, the Institute conducted following studies for the sponsored originisations.

Research Projects • Training Module on Trade in

Environmental Services and Human Development

• Marketing Audit of India International Trade Fair 2002

• Export Development Plan for Manipur

• Export Development Plan for Nagaland

• Study on Export of Foodgrains by FCI

• ENVIS Node for Trade in Environmental Services

• Compendium on Technology Exports: A Compilation of Select Exported & Exportable Technologies from India

Seminars/Workshops • Workshop on Integrating Business

Institutes and Industries for Coming Millennium

• National Conference on WTO Issues

• EU-Asia Conference & Workshop on e-Enabling SMEs for Global Competitiveness

• WTO National Seminar on Technical Barriers to Trade

Activities for the year 2004-2005 ( upto January 2005)

Research Projects • "EMCB-ENVIS and IIFT"

• Market – Audit on India International Trade Fair - 2003

• Restructuring and Strengthening of VITC

• Impact of EU's Enlargement on India • Enhancement of PEC Branding in

Developing Countries

33

• Evaluation of Export Promotion Scheme for Handicrafts

• Tariff and Non-tariff Barrier on Export of Jute Products

Seminars/Workshops

EU Enlargement and Its Impact on

India's External Sector.

Management Teachers' Programme on International Business Strategy. Activities for the year 2005-06 • Issues under WTO Agreement on

Agriculture (Min. of Food Processing)

• Review of Financial Control System at EIC/EIA

• Export Potential Survey of Chattisgarh

• Maintenance & Management of the Portal of Handicrafts

• Export Development Plans for North-East

i. Assam ii. Meghalaya

iii. Arunachal Pradesh iv. Tripura v. Sikkim

• Indian Textiles and Garments Sector

Post 2005 • Enlargement of EU and Its Impact on

Indian Textile Trade (Min. of Textiles) • Integration of Supply Chain Networks

for Agri-products in South Asia • Export Potential Survey of Kerala • Export Potential Survey of Tamil Nadu • Export of Greases and Lubricants by

Balmer Lawrie • Creation of Meat Processing Agri

Export Zone in UP. • Enhancing Export Competitiveness of

Small and Medium Enterprises in the Technology-Intensive Services Sector

• Mergers and Acquisitions: Technical Implications

• International Strategic Alliances –

Their Role in Industrial Globalization

(iii) Indian Institute of Packaging (IIP).

The Indian Institute of Packaging

(IIP), Mumbai, was formed in 1966 under the Societies Registration Act., 1860. The Institute is imparting training in packaging by conducting Post Graduate Diploma in Packaging, Intensinve Training Course in Packaging, Distance Education (Correspondence Programme in Packaging), Short term Entrepreneurship Course, Seminars, technical consultancy, testing and evaluation of packages, research and development in packaging and packaging designs etc. The Institute has established its branch offices at Chennai, Delhi and Kolkatta. The Institute has also taken initiative to establish its office at Hyderabad. A Centre in North Eastern Region is likely ot come up during the current Plan period. Industries manufacturing packaging materials, packaging machineries, converting of packaging materials, users of packaging, even traders, exporters, dealers, consultants and organisations dealing in packaging have taken membership of the Institute. As of today, IIP has 969 Members on its roll. Advisory Services

During the year 25 advisory visits were undertaken. The product group include Candy & Toffee, VCI films, Glass Containers, Blower Fan Blades, CFB Box, Rayong Yarns, PTMV products, HDPE woven fabric bags, fertilizers, Dried vegetables, fresh Fruits, and vegetables, Prasad, Rubber Gaskets, Laminates and Modular furnitures, onions, grapes, mangoes, Rabdi Jeera Puris, Boondi Laddus, Edible Oils, Infestation of

34

Chocolates, Drinking water, Plastic containers, Glass Bottles, Adhesives, Packaging Materials, Suitings & Shirtings, yarn, printing machinery, mobile phones, hydraulic pumps, lift parts, pesticides, mango-bar, polyester rolls, medical equipments, insulators, motors and generators etc. These studies were aimed at improvements in Packaging Systems, reduction in damage during distribution, optimision on containers stuffing and advice on packaging for exports etc. Upto 31.3.2005 a minimum 24 more advisory visits are anticipated. Intensive Training Programme The three-month Certificate Programme in Packaging introduced by the Institute in the year 1968 is continued. The programme is also open to participants from abroad. During the year Indian Institute of Packaging successfully conducted ITC at its Mumbai, New Delhi, and Kolkatta branches. As many as 65 participants including candidates from Bangladesh and Tanzania registered for the programme. Introduction of ITC in Packaging has benefited entrepreneurs desiring to set up Packaging Industries and Small and Large Industries wanting to develop the packaging skills of their working executives. Executive Development Programmes The short term programmes of one to four days duration on specific media or product packaging has been going on since the inception of the Institute. These are essentially executive development programmes aimed at orientation for the middle level and senior level executives of the industries to update their knowledge in the field of packaging with an emphasis on the new developments not only in India but also overseas. These programmes are spread over to various industry ventures in

the country so as to extend the benefit widely. Over 2029 senior and middle level executives from industries have participated in the 67 short term programmes organized by the Institute during the year. The Institure also envisages to reach the Industries in the other industrial areas in the country in the remaining months. A few more programmes/seminars will be conducted during the year. Quality Evaluation and Assurance. The testing facilities available at the Institute’s laboratories located at Mumbai, Chennai, Delhi and Kolkatta have been found very useful by industries at large in order to wanting to improve the quality of product. A total number of 5390 samples were received and tested during the period April – Nov. 2004. Approximately 4968 samples are expected to be tested during the remaining period of the financial year. UN Certification The Institute is recognised by the Directorate General of Shipping as the agency for testing and evaluation of packaging for hazardous cargo for UN Certification. Evaluation of packages for dangerious goods is also done at the laboratories of the Institute at Chennai and Kolkatta. During the year 1659 UN Certificates have been and 483 more certificates are likely to be issued in the remaining period of the financial year. 4. Trends in India’s Foreign Trade Export Performance in 2003-04 India’s exports of merchandise goods during 2003-04 are valued at US$ 63.5 billion recording a growth rate of 20.4% in dollar terms exceeding the target of 12% fixed for 2003-04. India has

35

achieved this in spite of an appreciating rupee during the period, global slow down, Iraq War etc. Sectoral Trend The major sectors of exports that have witnessed high export growth (10% and above), during 2003-04 include Engineering goods (35%), Gems & Jewellery (16.4%), Sports goods (28.6%), Chemical & related products excluding Residual chemicals & Allied products (24.6%), Petroleum products (36.6%), Wheat (40.6%), Processed foods (27.4%),Oil meals (131.7%), Man-made textiles made-ups etc (28.2%) and Electronic goods (34.4%). Directional Trend During the same period, exports to EU, constituted about 21.8% of India’s exports and registered a growth rate of 19.9 % in dollar terms. Asia and Oceania accounted for nearly 46% of India’s exports. Exports to this region witnessed a growth rate of 29.4%. Within the region, export to China were impressive with growth rate of 49.8% and this is over and above a very high growth rate in 2002-03. The growth rate of India’s exports to China was 106% in 2002-03. China and Hong Kong together accounted for about 10% of India’s exports. United Arab Emirates, accounted for 8% of India’s exports. Exports to this country have grown at the rate of 52.7%. India’s exports to Africa region that accounted for about 6% of our total exports witnessed a growth rate of 25.6%. Export Target for 2004-05 An export target of 16% corresponding to a level of US $ 73.4 billion has been fixed for the year 2004-05 which is higher than the target for the last two years of 12%.

This will help exports to reach a level of US$ 150 billion in 2009-10. Indian exports had crossed the US$ 50 billion mark in 2002-03 and US$ 60 billion mark in 2003-04. Now with the 16% target, exports should cross the US$ 70 billion mark in 2004-05. Export Performance during April-December, 2004-05 Exports during April –December, 2004-05 are valued at US$ 53.50 billion which is 23.42% higher than the level of US$ 43.37 billion during April–December, 2003-04. India’s Export Performance in April-August, 2004-05 at Disaggregate level Sectoral Trend The major sectors of exports that have witnessed high export growth (10% and above) in dollar terms, during April-August, 2004-05, as compared to the corresponding previous period, include Gems & jewellery (43.63%), Engineering goods (39.26%), Ores & minerals (70.42%), Petroleum products ( 72.72%), Chemicals and related products (27.8%) and Plantation (13.16%). Directional Trend During the same period, exports to EU, constituted 22% of India’s exports and registered a growth rate of 26.11%. Exports to USA accounted for 17.77% of India’s exports and registered a growth rate of 24.43%. Asia and Oceania accounted for 45.89% of India’s exports. Exports to this region registered a growth of 39.48%. Exports to China have registered a growth rate of 67.54%. Exports to the single largest destination in Asia & Oceania, UAE registered a growth of 71.14%. Exports to Africa accounting for 5.88% of India’s exports registered a growth of 31.22%.

36

The DGCI & S and the Directory of Indian Exporters

The DGCI & S has a system of registration of Indian exporting firms which is done on the basis of voluntary provision of information by Indian firms regarding their exports business. Their credentials are then checked and verified from various angles and only if they are found to be satisfactory, the firms are registered with the DGCI&S. This Directorate has been publishing successive editions of this Directory since 1919 and , till date, 25 editions of this Directory have been published. The 26th Edition of this Directory is now on the verge of publication. JOURNALS:- The Indian Trade Journal is edited and issued by the Directorate General of Commercial Intelligence & Statistics (DGCI&S). It is a weekly publication and is due on every Wednesday. The Indian Trade Journal (ITJ) publishes mainly domestic as well as foreign global tenders floated by different Govt. organizations. From Oct. 2003 to March 2004, 4,467 tenders were published in the Indian Trade Journal and between April 2004 to Sept. 2004 a total of 4,671 tenders have been published. One of the objectives of the ITJ is to boost up and promote export efforts of India. It contains a section on exports opportunities providing details of enquiries from overseas firms expressing interest in Indian goods and services which are received from Indian Embassies abroad. From Oct. 2003 to March, 2004 a total of 534 Trade Enquiries were published and between April 2004 to Sept. 2004, a total of 546 Trade Enquiries have been published in the Indian Trade Journal. At present, Trade Enquiries are being received from around 35 countries.

5. D.G.F.T.

The primary function of the Director General of Foreign Trade is implementation of the Import and Export Policy. Review of EXIM Policy is a continuous process and amendments/changes in this policy are being made from time to time as and when these become necessary in public interest. FOREIGN TRADE POLICY

The Foreign Trade Policy (FTP) announced on the 31st August 2004 is valid for a period of five years. Various schems announced in the FTP are briefly as below:

1. EXPORT PROMOTION CAPITAL GOODS SCHEME 1.1 New Capital Goods for pre-production, production and post-production (including Complete Knocked Down/Semi Knocked Down as well as Computer software system) may be imported under the Export Promotion Capital Goods Scheme (EPCG). Imports of Jigs, Fixtures, Dies, Moulds and second hand capital goods without any restriction on age may also be imported under the Scheme. 1.2 The Scheme offers for import of capital goods at a concessional rate of customs duty of 5 % and in such cases the importer is under obligation to export 8 times of duty saved on capital goods imported under the scheme to be fulfilled over a period of 8 years. Capital goods would also be allowed at 0% duty for exports of agricultural products and their value-added variants. In respect of EPCG licences with a duty saved of Rs. 100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years.

37

2. DUTY EXEMPTION/REMISSION

SCHEME 2.1 The Duty Exemption Scheme enables duty free import of input required for export production. An Advance Licence is issued under Duty Exemption Scheme. 2.2 The Duty Remission Scheme enables post export replenishment/remission of duty on inputs used in the export product. Duty Remission Scheme consists of (a) Duty Free Replenishment Certificate (DFRC) and (b) Duty Entitlement Pass Book (DEPB). 3. Duty Exemption Scheme: A. ADVANCE LICENCE Advance Licence includes: - (i) Advance Licence for Physical Exports (ii) Advance Licence for Intermediate

Supplies (iii)Advance Licence for Deemed Exports (i)ADVANCE LICENCE FOR PHYSICAL EXPORTS

Advance Licence is granted to Manufacturer Exporter or merchant exporter tied to supporting manufactuer(s) for the import of inputs required for the export product.

(ii)ADVANCE LICENCE FOR INTERMEDIATE SUPPLIES: Advance Licence is granted to manufacturer exporters for the import of inputs required in the manufacture of goods to be supplied to the ultimate exporter/deemed exporters holding another Advance Licence.

(iii)ADVANCE LICENCE FOR DEEMED EXPORTS:

The Advance Licence for deemed exports is granted to the main contractor for the import of inputs required in the manufacture of goods supplied to EOUs/SEZs/SEZs/STPs/EHTPs, supply of capital goods to holders of licence under EPCG Scheme, supply of goods to project financed by multilateral or bilateral agencies/funds as notified by the Deptt. of Economic Affairs under International Competitive Bidding in accordance with the procedures of those agencies/funds., where the legal agreements provide for tender evaluation without including the customs duty, supply of capital goods including in un-assembled, dis-assembled conditions as well as plants, machinery, accessories tools, dies and such goods which are used for installation purpose and spares to the extent of 10% of FOR value to Fertilizer Plants, supplies of goods to any project or purpose in respect of which Ministry of Finance, by a notification, permits the import of such goods at zero customs duty coupled with the extension of benefits under deemed exports provisions, supply of goods to Power plants and Refineries, supply to projects funded by UN Agencies and supply of goods to nuclear power projects through competitive bidding as opposed to international competitive bidding.

Advance Licence for deemed exports can also be availed by the sub-contractor of the main contractor in respect of certain specified categories of such projects provided the name of the sub-contractor(s) appears in the main contract. Such Licence is also granted for supplies made to United Nations Organisations or under the Aid Programme of the United Nations or other multilateral agencies and paid for in foreign exchange.

B. Duty Free Replenishment Certificate(DFRC)

Duty Free Replenishment Certificate is issued to a merchant exporter or manufacturer-exporter and used for the

38

import of inputs in the manufacture of goods without payment of Basic Customs Duty, Surcharge and Special Additional Duty. However, such inputs shall be subject to the payment of Additional Customs Duty equal to the Excise Duty at the time of import.

DFRC shall be issued on minimum value addition of 25% except for items in gems and jewellery sector. Such licences shall be freely transferable. DFRC is issued with a validity of 18 months from the date of issue. Import of fuel under DFRC entitlement shall be allowed to be transferred to marketing agencies authorized by the Ministry of Petroleum and Natural Gas.

C. DUTY ENTITLEMENT PASS BOOK (DEPB) SCHEME:

Duty Entitlement Pass Book Scheme is

to neutralise the incidence of Basic Customs duty on the import content of export product. The neutralization shall be provided by way of grant of duty credit against the export product.

Under the Duty Entitlement Pass book (DEPB) Scheme an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency. The credit shall be available against such export products and at such rates as may be specified by the DGFT by way of public notice issued in this behalf, for import of raw materials, intermediates, components, parts, packaging materials etc. The DEPB shall be valid for a period of 12 months from the date of issue.

The DEPB and/or the items imported against it are freely transferable. The transfer of DEPB shall however be for import at the port specified in the DEPB, which shall be the port from where exports have been made. Imports from a port other than the port of export shall be allowed under TRA facility as per the terms and

conditions of the notification issued by Department of Revenue.

3. DIAMOND GEM AND JEWELLERY EXPORT PROMOTION SCHEME:

Exporters of gem & jewellery are eligible to import their inputs by obtaining (A) Replenishment Licences (B) Diamond Imprest Licence and (C) Gem Replenishment Licence. (a) REPLENISHMENT LICENCES

The export of gem and jewellery products shall be eligible for grant of Replenishment Licences at the rate and for the items mentioned in the said Appendix-26(HBP) to import and replenish their inputs. Replenishment licence may also be issued for import of consumables as per the details given in paragraph 4.80 of Handbook (Vol.1).

(b) DIAMOND IMPREST LICENCE

Diamond Imprest Licence for

import of cut & polished diamonds including semi processed diamonds, half cut diamonds, broken in any form, for mixing with cut & polished diamonds or for export as it is, may be issued for export of cut & polished diamonds. (c) GEM REPLENISHMENT LICENCE

Gem Replenishment (Gem REP)

Licence may be issued under the schemes for export of gold/silver/platinum jewellery and articles thereof as specified in the FTP. In the case of plain gold/ silver/platinum jewellery and articles, the value of such licences shall be determined with reference to the realisation in excess of the prescribed minimum value addition. In the case of studded gold/silver/platinum jewellery and articles thereof, the value of Gem Replenishment Licence shall be determined by taking into account the value of studdings used in items exported, after accounting for the value addition on

39

gold/silver/platinum including admissible wastage. Such Gem REP licences shall be freely transferable. (D) Schemes for Gold/Silver Platinum Jewellary Exporters of gold/silver/platinum jewellery and aricles thereof may import their essential inputs such as gold, silver, platinum, mountings, findings, rough gems, precious and semi-precious stones, synthetic stones and unprocessed pearls etc. in accordance with the procedure specified in this behalf. (e) Nominated Agencies The exporters availing the schemes of gold/ silver/platinum jewellery and articles thereof may obtain gold/silver/platinum from the nominated agencies. The nominated agencies are MMTC Ltd, Handicraft and Handloom Export Corporation (HHEC), State Trading Corporation (STC), the Project and Equipment Corporation of India Ltd (PEC) , and any agency authorised by Reserve Bank of India (RBI). A bank, authorised by RBI, is allowed export of gold scrap for refining and import in the form of standard gold bars as per the RBI’s notified procedure for the import of gold. The following items, if exported, would be eligible for the facilities under these schemes:- (a) Gold jewellery, including partly processed jewellery and any articles including medallions and coins (excluding the coins of the nature of legal tender), whether plain or studded, containing gold of 8 carats and above; (b) Silver jewellery including partly processed jewellery, silverware, silver strips and any articles including medallions and coins (excluding the coins of the nature of legal tender and any engineering goods) containing more than 50% silver by weight;

(c) Platinum jewellery including partly processed jewellery and any articles including medallions and coins (excluding the coins of the nature of legal tender and any engineering goods) containing more than 50% platinum by weight. Where export orders are placed on the nominated agencies/ status holder/ exporters of three years standing having an annual average turnover of Rs. Five Crore during the preceding three licensing years, the foreign buyer may supply to the nominated agencies/status holder/exporter, in advance and free of charge, gold/ silver/ platinum, alloys, findings and mountings of gold/ silver/ platinum for manufacture and export. The exports may be made by the nominated agencies directly or through their associates or by the status holder/exporter as the case may be. The import and export of findings shall be on net to net basis. The foreign buyer may also supply to the nominated agencies/status holder/ exporter in advance and free of charge plain, semi finished gold/silver/platinum jewellery including findings/ mountings/ components for repairs/re-make and export subject to minimum value addition of 10%. However, if the so imported semi finished gold/silver /platinum jewellery is exported as studded jewellery, value addition of 15% shall be achieved. In such cases of export, wastage of 2% may be permitted. The procedures in this regard shall be as prescribed in the Handbook of Procedure of FTP. (F). EXPORT PROMOTION TOURS/EXPORT OF BRANDED JEWELLERY The nominated agencies and their allociates, with the approval of Department of Commerce, and others, with the approval of Gem & Jewellery Export Promotion Council (GJEPC), may export gold/silver/platinum jewellery and articles thereof for holding/participating in exhibitions abroad.

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Export Against Supply by Nominated Agencies: An The exporter may obtain the gold/silver/platinum as an input for export products from nominated agencies in advance or as replenishment after exports in accordance with the procedure specified in this behalf. (G) Export Against Advance Licence An Advance Licence may be granted for the duty free import of: (a) Gold of fineness not less than 0.995 and mountings, sockets, frames and findings of 8 carats and above; (b) Silver of fineness not less than 0.995 and mountings, sockets, frames and findings containing more than 50% silver by weight; (c) Platinum of fineness not less than 0.900, mountings, sockets, frames and findings containing more than 50% platinum by weight. Such licences shall carry an export obligation which will be required to be fulfilled in accordance with the procedure specified in this behalf. The Advance License holder may obtain gold/silver/platinum from the nominated agencies in lieu of direct import in accordance with the procedure specified in this behalf. 4.1 EXPORT ORIENTED UNITS

(EOU) AND SPECIAL ECONOMIC ZONES (SEZs)/EHTP & STP

Units undertaking to export their

entire production of goods and services may be set-up under the Export Oriented Unit (EOU) scheme or Special Economic Zone (SEZ) scheme or Electronic Hardware Technology Park Units (EHTP) or Software Technology Park (STP) Scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering and

rendering of services. No trading units shall, however, be permitted.

An EOU/SEZ/EHTP/STP unit may import without payment of duty all types of goods, including capital goods, required by it for its activities provided they are not prohibited items of imports in the ITC (HS). The units shall also be permitted to import goods required for the approved activity, including capital goods, free of cost or on loan from clients. The import of capital goods will be on a self certification basis. In addition:- 1. EOUs shall be exempted from service tax in proportion to their exported goods & services 2. EOUs shall be permitted to retain 100% of export earnings in EEFC accounts. 3. Income Tax benefits on plant and machinery shall be extended to DTA Units, which convert to EOUs. Import of Capital Goods shall be on self certification basis for EOUs. 4. For EOUs engaged in Textile & Garments manufacture leftover materials and fabrics upto 2% of CIF value or quantity of import shall be allowed to be disposed of on payment of duty on transaction value only.

STATUS CERTIFICATE

Merchant as well as Manufacturer exporters, Service providers, Export Oriented Units (EOUs)/ units located in Special Economic Zones (SEZs)/Special Economic Zone (SEZs)/Agri Export Zone (AEZs)/ Electronic Hardware Technology Parks (EHTPs)/Software Technology Parks (STPs) shall be eligible for grant of status certificates as Star Export Houses

The applicant shall be categorized depending on his total FOB/FOR export performace during the current plus the previous three years:

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(Rupees in Crores) Category Performance (in Rupees) One Star Export House 15 cr. Two Star Export House 100 cr. Three Star Export House 500 cr. Four Star Export House 1500 cr. Five Star Export House 5000 cr.

Units in Small Scale Industry/Tiny Sector/Cottage Sector, Units registered with KVICs/KVIBs, Units located in North Eastern States, Sikkim and J&K, Units exporting handloom/ handicrafts/hand knotted or silk carpets, exporters exporting to countries in Latin America/CIS/sub-Saharan Africa as listed in Appendix-17C, units having ISO 9000 (series)/ ISO 14000 (series) /WHOGMP/HACCP/SEI CMM level-II and above status granted by agencies listed in Appendix-28A, exports of services and exports of agro products shall be entitled for double weightage of exports made for grant of Star Export House status.

Export made on re-export basis

shall not be counted for the purpose of recognition.

The exports made by a subsidiary

of a limited company shall be counted towards export performance of the limited company for the purpose of recognition. For this purpose, the company shall have the majority share holding in the subsidiary company. The status holders shall be eligible for the following new/ special facilities: Licence/certificate/permissions and Customs clearances for both imports and exports on self-declaration basis. Fixation of Input-Output norms on priority within 60 days; Exemption from compulsory negotiation of documents through banks. The remittance, however, would continue to be

received through banking channels; 100% retention of foreign exchange in EEFC account; Enhancement in normal repatriation period from 180 days to 360 days; Entitlement for consideration under the Target Plus Scheme Exemption from furnishing of Bank Guarantee in Schemes under this Policy. 4.2 SPECIAL ECONOMIC ZONES(SEZ) Special Economic Zones (SEZ) are growth engines that can boost manufacturing, augment exports and generate employment. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle free operational regime encompassing the state of the art infrastructure and support services. The proposed legislation on SEZs to be enacted in the near future would cover the concepts of the developer and co- developer, incorporate the provision of virtual SEZs, have fiscal concessions under the Income Tax and Customs Act, provide for Offshore Banking Units (OBUs) etc . A brief on the facilities available under the SEZ scheme is given as under:- (a) Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.

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(b) Goods and services going into the SEZ area from DTA shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as if these are being imported. (c) SEZ units may be set up for manufacture of goods and rendering of services. (a). SEZ units may export goods and services including agro products, partly processed goods, sub-assemblies and components except prohibited items of exports in ITC(HS). The units may also export by-products, rejects, waste scrap arising out of the production process. Export of Special Chemicals, Organism, Materials, Equipment and Technologies (SDCOMET) shall be subject to fulfillment of the conditions indicated in the ITC (HS) Classification of Export and Import Items. (b). SEZ unit may import/procure from the DTA without payment of duty all type of goods and services, including capital goods, whether new or second hand, required by it for its activities or in connection therewith, provided they are not prohibited items of imports in the ITC (HS). However, any permission required for import under any other law shall be applicable. Goods shall include raw material for making capital goods for use within the unit. The units shall be permitted to import goods required for the approval activity, including capital goods, free of cost or on loan from clients. (c) SEZ units may procure goods required by it without payment of duty, from bonded warehouses in the DTA set up under the Policy and/or under Section 65 of the Customs Act and from International Exhibitions held on India (d). SEZ units, may import/procure from DTA, without payment of duty, all types of goods for creating a central facility for

use by units in SEZ. The Central facility for software development can also be accessed by units in the DTA for export of software. (e). Gem & Jewellery units may also source gold/silver/platinum through the nominated agencies. (f). SEZ units may import/procure goods and services from DTA without payment of duty for setting up, operation and maintenance of units in the Zone. 5. BRAND PROMOTION AND QUALITY

The Central Government

encourages manufacturers and exporters to attain internationally accepted standards of quality for their products. The Central Government extends support and assistance to trade and industry to launch a nationwide programme on quality awareness and to promote the concept of total quality management.

6. EXPORT OF SERVICES

“Services” include all the 161 tradable

services covered under the General Agreement on Trade in Services where payment for such services is received in free foreign exchange. The service providers rendering services shall be entitled for all the facilities mentioned in the Policy. All provisions of the Policy shall apply mutatis-mutandis to such export of services as they apply to goods.” Service provider (other than hotels) shall be entitled to duty free imports equivalent to 10% of the average foreign exchange earned by them in preceding three years. Hotels shall be entitled for duty free imports equivalent to 5% of the average foreign exchange earned by them in preceding three years. The duty free entitlement shall be used for import of

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spares, office equipment and furniture, professional equipment and consumables other than agriculture and dairy products. The entitlement and the goods shall be non-transferable and would be available only to those service providers who have an average foreign exchange earning of over Rs. 10 lakhs in the preceding three licencing years. 7. Electronic Data Interchange

In an attempt to speed up the transactions, reduce physical interface and to bring about transparency in various activites related to exports, electronic data interchange would be encouraged. Applications received electronically shall be cleared within 24 hours.

8. DEEMED EXPORTS "Deemed Exports" refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange. The following categories of supply of goods by the main/ sub-contractors shall be regarded as "Deemed Exports" under this Policy, provided the goods are manufactured in India: (a)Supply of goods against Advance Licence/Advance Licence for annual requirement/DFRC under the Duty Exemption /Remission Scheme; (b)Supply of goods to Export Oriented Units (EOUs) or units located in Special Economic Zone (SEZs) or Software Technology Parks (STPs) or Electronic Hardware Technology Parks (EHTPs); (c)Supply of capital goods to holders of licences under the Export Promotion Capital Goods (EPCG) scheme;

(d)Supply of goods to projects financed by multilateral or bilateral agencies/funds as notified by the Department of Economic Affairs, Ministry of Finance under International Competitive Bidding in accordance with the procedures of those agencies/ funds, where the legal agreements provide for tender evaluation without including the customs duty; (e)Supply of capital goods, including in unassembled/ disassembled condition as well as plants, machinery, accessories, tools, dies and such goods which are used for installation purposes till the stage of commercial production and spares to the extent of 10% of the FOR value to fertiliser plants. (f)Supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notification, permits the import of such goods at zero customs duty coupled with the extension of benefits under this chapter to domestic supplies; (g) Supply of goods to the power projects and refineries not covered in (f) above. (h) Supply of marine freight containers by 100% EOU (Domestic freight containers–manufacturers) provided the said containers are exported out of India within 6 months or such further period as permitted by the Customs; and (i) Supply to projects funded by UN agencies. (j) Supply of goods to nuclear power projects through competitive bidding as opposed to International Competitive Bidding. The benefits of deemed exports shall be available under paragraph (d), (e), (f) and (g) only if the supply is made under the procedure of International Competitive Bidding (ICB).

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Deemed exports shall be eligible for any/all of the following benefits in respect of manufacture and supply of goods qualifying as deemed exports subject to the terms and conditions as given in Handbook (Vol.1):- (a)Advance Licence for intermediate

supply/ deemed export/DFRC. (b)Deemed Exports Drawback. (c) Refund of Terminal Excise duty. 9. Agricultural Export Zones.

With a view to promoting agricultural exports from the country and remunerative returns to the farming community in a sustained manner, AEZ as announced earlier would be set up for end to end development for export of specific products from a geographically contiguous area.

AEZ would be identified by the State Government, who may evolve a comprehensive package of services provided by all State Government agencies, State agriculture universities and all institutions and agencies of the Union Government for intensive delivery in these zones.

Such services which would be managed and co-ordinated by State Government would include provision of pre/post harvest treatment and operations, plant protection, processing, packaging, storage and related research & development etc. APEDA will supplement, within its schemes and provisions, efforts of State Governments for facilitating such exports.

Units in AEZ would be entitled for all the facilities available for exports of goods in terms of provisions of the respective schemes. 10. Towns of Export Excellence

A number of towns in specific geographical locations have emerged as dynamic industrial clusters contributing handsomely to India’s exports. It is necessary to grant recognition to these industrial clusters with a view to maximizing their potential and enabling them to move higher in the value chain and tap new markets. Selected towns producing goods of Rs. 1000 Crores or more will be notified as Towns of Exports Excellence on the basis of potential for growth in exports. However, for the Towns of Export Excellence in the Handloom, Handicraft, Agriculture and Fisheries Sector, the threshold limit would be Rs. 250 Crores. Commen service providers in these areas shall be entitled for the facility of the EPCG Scheme. 11. FREE TRADE AND WAREHOUSING ZONE (i) A new scheme to establish Free Trade and Warehousing Zone has been introduced to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency. This is aimed at making India into a global trading-hub. (ii) FDI would be permitted up to 100% in the development and establishment of the zones and their infrastructure facilities. (iii) Each zone would have minimum outlay of Rs. 100 Crores and Five Lakhs sq. mts. Built up area. (iv) Units in the FTWZs would qualify for all other benefits as applicable for SEZ units. 12. SERVICES EXPORT PROMOTION COUNCIL An exclusive Service Export Promotion council shall be set up in order to map opportunities for key services in key markets, and develop strategic market

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access programmes, including brand building, in co-ordination with sectoral players and recognized nodal bodies of the services industry. 13.PROCEDURAL SIMPLIFICATION & RATIONALISATION MEASURES: (a) All exporters with minimum turnover of Rs. 5 Crores and good track record shall be exempted from furnishing Bank Guarantee in any of the schemes, so as to reduce their transactional costs. (b) All goods and services exported, including through DTA units, shall be exempted from Service Tax (c) Validity of all licenses/entitlements issued under various schemes has been increased to a uniform 24 months. (d) Number of returns and forms to be filed have been reduced. This process shall be continued in consultation with Customs & Excise. (e) Enhanced delegation of powers to Zonal and Regional offices of DGFT for speedy and less cumbersome disposal of matters. (f) Time bound introduction of Electronic Data Interface (EDI) for export transactions. 75% of all transactions to be on EDI within six months. 14. GRIEVANCE REDRESSAL:

A new mechanism for grievance redressal has been formulated and put into place by a government Resolution to facilitate speedy redressal of grievances of trade and industry. 15. Enforcement cum adjudication division: 1. The two broad functions of Enforcement-cum-Adjudication Division of

the Headquarters of the Directorate General of Foreign Trade are as under: i). To act as Secretariat for the Processing of statutory appeals submitted to the Appellate Authority against Adjudication Orders passed by Adjudicating Authorities subordinate to the Appellate Authority. ii). To handle Enforcement-cum-Adjudication cases taken up by the Headquarters of DGFT. 2. Although the territorial jurisdiction of Head quarter’s Enforcement-cum-Adjudication Division extends to all over the country; this work has since been decentralized and Enforcement-cum-Adjudication powers are by and large exercised by various Regional-licensing authorities. The main items of work handled are as follows:- a) Investigation into allegation of misuse of import facilities or violations of Import Trade Control Regulations; b) Adjudication work in respect of violations of conditions of import-export licenses/I.E.Code; c) Adjudication work in respect of violation of condition of import-export licenses, misdeclaration/ misrepresentation of facts/documents to avail import-export benefits/facilities, export of sub-standard goods etc and imposition of fiscal penalty. d). Enforcement of provisions of the Foreign Trade (Development & Regulation) Act, 1992. e). Inspection, search, seizing of goods, things liable for confiscation, records etc. 3. Under Section 15 of the Foreign Trade (Development & Regulation) Act, 1992, the following appellate authorities have been notified:-

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S.No. Designation of Adjudication Authority. Appellate Authortiy.

1 Foreign Trade Dev. Officer Additional Director General of Foreign Trade

2 Asst. Director General of Foreign Trade -do- 3 Dy.Director General of Foreign Trade -do- 4 Jt.Director General of Foreign Trade -do- 5 Additional Director General of Foreign

Trade Additional Secretary in the Ministry of Commerce aided by two Jt. Secretaries & a Director of that Ministry.

In terms of clause 3 of Section

15 of 1992 Act, the Order made in appeal by the Appellate Authority shall be final. 4. Any person aggrieved by any decision or order made by any of the Adjudicating Authorities mentioned above can prefer an appeal to the respective Appellate Authority in accordance with provisions of the Foreign Trade Development & Regulation Act, 1992. ECA Division in the Headquarters of the D.G.F.T. acts as Secretariat for processing statutory appeals preferred to the Additional Director General of Foreign Trade against decision or orders made by various Adjudicating Authority. During the year 2003-2004, a total number of 669 new appeals and during 2004-05 (upto 31.12.2004) 386 new appeals, submitted to the Additional Director General of Foreign Trade, were taken up for consideration. In the process of consideration of various old and new appeals, adequate opportunities of Personal Hearings were offered to the appellants to come and explain their grievances before the Appellant Authority. 6. Supply Division:- Programmes:- The Supply Division renders services to Central Government Departments, State Governments, Public Sector Undertakings, etc. in the area of Purchase and Quality Assurance. A. Purchase:-

This involves processing of individual indents by calling for tenders, analysis of offers, purchase decisions, placement of contracts and administration thereof. For this purpose, the different commodities have been grouped and 14 Directorates formed to deal with various groups, each under the charge of director. The DGS&D has its Headquarters at New Delhi and Regional Supply Directorates entrusted with procurement and shipping work. B. Rate Contracts

Rate contracts are concluded by DGS&D for common user items. The system of buying through Rate Contracts facilitates procurement of quality goods from reliable sources at most reasonable prices without the bother of inviting tenders by each Department separately every time a demand arises. As on 31.12.2004, there were 304 items on DGS& Rate Contracts. The performance of the Purchase Wing is given below:-

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Actuals 2003-04

Budget Estimates (2004-05)

Actuals 2004-05*

Budget Estimates 2005-06 (Proposed)

A. Work Load Data 1. No. of broad categories of Stores on R/Cs

354

- 354 -

2.Receipt of Indents (No.s) 613 520 377 465 3.Receipt of Tenders (No.s) 3858 4211 3215 4427 4.No. of Contracts 4289 4200 4289 5.Total value of payments (Rs in Crores)

3201 3290 2026 -

6.(a) No.of finalization cases cleared

436 474 438 505

(b) Amount released (Rs in Lakhs)

1366 1627 683 946

7. (a) No. of cases Outstanding 234 296 495 156 (b) Amount involved (Rs in Lakhs)

1205 1024 1125 20

B. Performance Data Completion of Supplies within delivery period i) No.of Contracts where supplies were due/expected

2270 2048 1018 2193

ii) No.of Contracts where supplies were completed/ expected to be made

2165 (95%) 1644 (80%) 875 (90%) 2093 (95%)

a) Within the delivery period 1095 (51%) - 533 (61%) 1863 b) Within the first extension of delivery period

552 (25%) - 220 (25%) 170

c) Within the second or more extension

518 (24%) - 124 (14%) 60

iii) No. of Contracts cancelled 17 - - - iv) No.of Contracts where supply is outstanding

128 182 100

*upto Dec., 2004 - can not be estimated.C. Quality Assurance The Quality Assurance Wing of DGS&D undertake inspectionof stores ordered by DGS&D (except where the contracts stipulate inspection by some other authority) and also against direct orders placed by other Government Departments,

State Governments, Autonomous Bodies, etc. It also reports on capacity and performance of suppliers.

The performance data in respect of the Quality Assurance Wing is given below:-

Actuals 2003-04

Budget Estimates (2004-05)

Actuals 2004-05*

Budget Estimat2005-06 (Proposed)

A. Work-load data (i) Checking of Indents (Nos) 394 400 231 400 (ii) Advice on purchases Cases (Nos) 280 350 164 350 (iii) Verification of capacity of firms (Nos) 1909 1900 520 1000 (iv) Examination of specifications (Nos) 53 65 51 70 (v) Issue of Inspection documents (Nos) (a) Against DGS&D Orders 50123 50000 37948 50000 (b) Against Direct Orders 21574 21000 12074 20000 Total (a)+(b) 71697 71000 50022 70000

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*upto Dec., 2004 Inspection of Stores should be undertaken purposefully and in time. Time-limits are set for inspection. The

number of inspection calls given during the last three years and those attended in time, are given below:-

2002-03 2003-04 2004-05* i). No. of I/Calls attended 39556 40845 27176 ii) No. of I/Calls attended within time

schedules. 39422

(99.7%) 40530

(99.2%) 26844

(98.85%) iii) Value of rejection rectification at pre-

despatch stage (Rs. In crore) 12.36 90.8 24.10

*upto Dec., 2004. Figures in bracket indicated percentage of calls attended within time schedule. D. Consignee’s rejections

The consignees have the right to reject the stores received by them if these are not in accordance with the contract or received short or with damages in transit. Rejections made on grounds of quality are taken into cognizance and where it is considered expedient joint investigation is

arranged. The feed-back from the joint investigation and decision taken thereof are communicated to the Purchase Wing as also other agencies involved for necessary contractual action. On the basis of the analysis of the complaint and the results of joint investigation, action is also taken for deregistration of the suppliers or administrative action against Officers concerned on their merits. The statistics of complaints received on grounds of quality are as follows:-

Value of Complaints

(Rs. in Crores) Year Value of Inspection

work undertaken (Rs. in crores) Received Justified

Percentage of complaints justified over

total work done. 1 2 3 4 5

2002-2003 3488 7.04 0.11 0.003 2003-2004 3639 6.5 1.73 0.05 2004-2005 2752 6.44 0.91 0.33 *upto Dec., 2004. The lower level of rejection is due to better control on operations as a result of restructuring of Quality Assurance offices and greater attention paid to resolving the pending matters. The information and feed back obtained from complaints are used in upgrading the specification, modifying the inspection procedures etc. as a continuous endeavor. E. Consultancy Services

Consultancy Services are being offered by DGS&D to different Central &

State Govts./PSUs etc. Consultancy package includes formualation of bidding documents/technical particulars, invitation of bids, bidding strategy, commercial and/or technical evaluation of bids, technical assistance, vendor development, quality assurance/pre-despatch inspection, contract management etc. It also provides necessary inputs on different areas of procurement activity. DGS&D charges fees for these services on mutually agreed terms.

DGS&D has already signed Memorandum of Understanding (MOU) with Chhatisgarh State Industrial Development Corporation (CSIDC), Indira

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Gandhi National Open University (IGNOU), Punjab School Education Board (PSEB). Central Power Distribution Company of Andhra Pradesh Ltd. (CPDCL) and J&K State Board of School Education (JKBSE). MOUs provide for a comprehensive consultancy package.

F. Revenue:-

DGS&D earns revenue through the fees charged for Procurement, Quality Assurance. A moderate fees of 0.5% is charged for procurement of stores from the indentures. A similar fee is charged for inspection of stores also. In addition, some revenue is earned through sale of tenders forms etc. The total revenue earned during the last five years is given below:-

(Rs. in crores). Activity 2000-01 2001-02

2002-03 2003-04 2004-05*

Fees for procurement 16.34 17.08 15.63 16.42 12.53 Fees for inspection 22.18 22.15 20.24 21.72 15.67 Other Receipts (Sale of Tender Sets etc.)

4.13 6.10 3.18 2.63 3.76

Total 42.65 45.33 39.05 40.77 31.96 *upto Dec., 2004.

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CHAPTER III

APPRAISAL REPORT OF MAJOR PROJECTS PROGRAMMES COSTING RS.100 CRORES OR MORE

There are only four schemes,

pertaining to Department of Commerce, for which provision is Rs.100 crores or more in B.E. 2005-2006:- (i) Assitance for Export Promotion and Market Development:- The provision is for deemed exports benefits (duty drawbacks and refund of terminal excise duty (Rs. 661.07 cr.).

Details of the schemes are given in Chapter – II

(ii) Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) (Rs. 500.00 cr.).

This scheme was started in March 2002 and continued during the 10th Five Year Plan with the objective to involve the states in the export effort by providing assistance to the State Govt. for creating appropriate infrastrucuture for the development and growth of exports. The outlay of this scheme has two components. 80% of the funds is earmarked for allocation of States. The balance of 20% is retained at the central level for meeting the requirement of inter-state projects.

Details of the schemes are given in

Chapter – II

(iii) Equity to Export Credit Guarantee Corporation (Rs. 100.00 cr.). The primary objective of the Corporation is to support the country’s exports by providing a range of insurance covers to Indian Exporters against the risk of non-realization of export proceeds due to commercial or political causes; and different type of guarantees to Banks and other financial institutions to enable them to extend credit facilities to exporters.

Details of the schemes are given in Chapter – VIII

The paid up capital of the Corporation is Rs. 500.00 cr. as on 31.3.2004. It is proposed to be increased to Rs. 800.00 crore during the Tenth Five Year Plan. Rs. 100.00 crore is provided in the year 2004-05 and 2005-06 for this purpose.. (iv) Market Access Initiatives (Rs. 40.00 cr.). This scheme was introduced in the last year of Ninth Five Year Plan and the modified scheme was approved by the Govt. in Dec. 2003 to act as a catalyst to promote India’s exports on sustained basis. The scheme is devised to evolve specific strategy for market and product specific Studies/Surveys.

Details of the schemes are given in Chapter – II

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CHAPTER IV

FINANCIAL REQUIREMENTS AND OUTLAYS Financial Review During the year 2003-04 total expenditure incurred was Rs.1924.72 crores against the budget provision of Rs.1822.55 crores which was revised to Rs. 2000.00 crore.

The expenditure for the year 2002-2003 was Rs. 1933.71 crore. The provision for the year 2004-2005 is Rs. 2337.25 crore which is revised to Rs. 2200.00 crore. Revenue Section Plan: The Plan expenditure for the year 2003-04 was Rs. 278.07 crore as against Rs.296.21 crore during 2002-2003. The Plan outlay for the year 2004-2005 is Rs. 561.25 crore which is reduced to Rs. 431.00 crore. Non-Plan: The Non-Plan expenditure for the year 2003-2004 was Rs.1236.81 crores as against Rs.964.58 crores during 2002-2003. The provision for the year 2004-2005 is Rs.1250.00 crores. Capital Section Plan: The Plan expenditure was Rs.409.84 crores during the year 2003-2004 as against Rs.374.46 crores during the year 2002-2003. The provision for the year 2004-2005 is Rs.526.00 crore which is reduced to Rs. 519.00 crore. Ninth Five year Plan (1997-2002) The outlay for the Ninth Five Year Plan was Rs. 1633.95 crores. The details are as follows:-

(a) Gross Budget Support Rs. 1455.44 crores of which. (i) Domestic Budget Support 1347.86 Crores (ii) External Aid 107.58 Crores (b)Internal and Extra Budgetory Resources 178.51 Crores Total 1633.95 crores Year wise Plan expenditure during the Ninth Five Year Plan are shown in the Annexure – ‘A. Tenth Five Year Plan (2002-2007)

The outlay for the Tenth Five Year Plan is Rs. 4562.00 crores. The details are as follows:- (a) Gross Budget Support Rs. 4562.00 crores. (i) Domestic Budget Support 4547.00 Crores (ii) Internal and Extra Budgetory Resources 15.00 Crores Total 4562.00 crores Schemewise Tenth Plan outlay, Annual Plan outlay/Actuals for the year 2002-03 to 2005-06 is at Annexure “B” Actual expenditure 2003-04, Budget Estimates and Revised Estimates 2004-05 and the Budget Provision 2005-06 for both Plan and Non-Plan is shown in Annexure–‘C’

52

Ninth Plan Outlay and Utilisation Annexure “A” (Rs. in Crore)

Agriculture Sector Approved Outlay

Ninth Plan (1997-2002) B.S. IEBR EAP Total Actual Actual Actual Actual Actual Total 1997-98 1998-99 1999-00 2000-01 2001-02 1997-02 1. Tea Board 130.00 9.00 139.00 27.52 15.09 17.68 57.75 55.00 173.04 2. Coffee Board 105.00 20.00 125.00 25.89 24.20 24.00 23.02 31.00 128.11 3. Rubber Board 195.61 70.00 107.58 373.19 54.16 72.42 83.30 69.11 70.00 348.99 4. Spices Board 55.00 10.34 65.34 12.20 12.33 13.00 15.20 17.30 70.03 5. Tobacco Board 35.17 35.17 3.57 1.33 10.24 3.19 7.53 25.86 6. Cashew EPC 2.50 2.50 0.44 0.44 1.00 1.00 1.00 3.88 7. IIPM 1.00 0.59 1.59 Total Agriculture Sector 488.11 144.51 107.58 740.20 123.78 125.81 149.22 170.27 182.42 751.50 Industry & Mineral Sector 0.00 1. APEDA 162.00 162.00 24.99 30.70 30.70 37.77 44.00 168.16 2. MPEDA 71.00 71.00 9.82 8.38 11.60 20.25 30.00 80.05 3. Export Processing Zones 71.00 71.00 15.39 16.18 16.03 17.38 18.87 83.85 4. EPIP 70.00 70.00 20.00 20.00 19.00 26.50 22.00 107.50 5. ECGC 300.00 300.00 75.00 75.00 55.00 60.00 50.00 315.00 6. Critical Infrastructure Balance 142.00 142.00 26.87 30.00 26.86 25.86 30.60 140.19 7. IIP 10.00 14.00 24.00 1.07 1.90 1.00 1.85 1.35 7.17 8. DGCIS 5.00 5.00 1.50 0.61 0.31 0.82 0.55 3.79 9. EAN India 3.00 3.00 0.10 0.25 0.12 0.15 0.35 0.97 10.Studies on Export Dev. 2.00 2.00 0.18 0.51 0.53 0.60 14.50 16.32 11. !TPO 1.00 20.00 21.00 2.00 2.00 12. Modernisation 4.75 4.75 0.90 1.00 1.99 1.91 2.05 7.85 13. IIFT 9.00 9.00 4.00 2.00 3.00 4.00 5.00 18.00 14. DGFT Modernisation 6.19 3.61 2.91 12.71 14. Centre for WTO Studies 1.40 1.40 0.48 0.50 0.60 1.58 15. Footwear Design & Dev. Inst. 5.00 5.00 2.00 2.00 1.00 5.00 16. EIC 2.00 2.00 1.60 3.10 4.70 17. Quality Council of India 0.60 0.60 0.45 0.45 19. Export Development Fund 5.00 5.00 10.00 20. VRS - TTCI 1.50 1.50 21. Coustodian of Enemy Property 0.10 0.10 22. Export Development Fund for States 49.52 49.52 23. Supply 22.19 22.19 1.62 1.98 1.93 2.70 2.03 10.26 Total I&M Sector 881.94 34.00 0.00 915.94 179.82 186.53 178.86 208.20 285.03 1038.44 Grand Total 1370.05 178.51 107.58 1656.14 303.60 312.34 328.08 378.47 0.00 467.45 1789.94

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Annexure ‘B’ (Rs. in crore)

Tenth Plan Outlay and Annual Plan Outlay/Actuals 2002-03 to 2005-06 A Industry & Mineral Sector 10th Plan Outlay Actuals Outlay Actuals Outlay RE BE

Outlay 2002-2003 Upto 3/03 2003-04 2003-04 2004-05 2004-05 2005-06

2002-07 (BS) (BS) (BS)

1 Assistance to States for infrastructure 1725.00 330.00 325.46 350.00 349.84 425.00 425.00 500.00

2 Agricultural and Processed Food 310.00 62.00 35.00 52.30 40.00 53.00 45.00 55.00 Products Export Development Authority (APEDA)

3 Marine Products Export Development 200.00 40.00 40.90 52.27 41.00 52.00 44.00 54.00 Authority

4 Anti-Dumping 5.00 1.00

5 Export Credit Guarntee Corporation 432.00 50.00 50.00 80.00 60.00 100.00 100.00 100.00

6 Export Promotion Quality Control and Inspection I. EAN India 2.00 0.36 0.36 0.43 0.25 0.41 0.35 0.01 ii. Export Inspection Council 15.00 1.69 9.34 4.00 4.00 5.89 4.59 4.50 iii. Centre for WTO Studies 5.00 0.80 0.80 0.80 0.40 1.00 1.00 1.20 iv. Market Access Initiatives 552.00 42.00 10.86 44.00 9.00 102.24 5.00 40.00 v. Assistance to Institutions (a) Indian Institute of Foreign Trade 25.00 6.50 2.50 4.50 4.50 7.35 3.85 2.03 (b) Indian Institute of Packaging 30.00 5.00 3.00 3.00 7.70 2.80 2.80 vi. Quality Council of India 0.60 0.15 0.15 0.15 0.15 0.15

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10th Plan Outlay Actuals Outlay Actuals Outlay RE BE

Outlay 2002-2003 Upto 3/03 2003-04 2003-04 2004-05 2004-05 2005-06

2002-07 (BS) (BS) (BS) 7 Modernisation and Upgradation

a. Secretariat - Economic Services 10.00 2.00 0.07 b. Director General of Foreign Trade 14.00 4.00 3.64 2.64 3.33 5.00 3.00 4.00 c. DGCI&S 12.40 3.50 3.00 1.00 1.00 6.00

8 Footwear Design & Dev. Inst. 5.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

9 Computerisation in DGS&D 7.00 2.00 0.54 1.91 0.57 1.26 1.26 1.30

10 National Export Insurance Account 200.00 Total - I & M Sector 3350.00 552.00 480.47 600.00 516.89 763.00 638.00 971.99 B Agricultural Sector

1 Tea Board 350.00 63.00 56.32 65.00 41.69 93.25 93.25 75.00 1.01 Tea Plantation Fund 60.00 60.00 53.00 120.00

2 Rubber Board 415.00 80.00 71.28 83.54 80.83 90.00 90.00 96.60

3 Coffee Board 300.00 50.00 48.00 52.00 26.00 55.00 50.00 58.00

4 Spices Board 140.00 28.50 15.67 23.21 20.20 25.00 25.00 30.00

5 Tobacco Board 2.00 1.00

6 Cashew EPC 3.00 1.50 1.25 0.87 1.00 0.75 0.01

7 IIPM 2.00 1.00 Total - Agricultural Sector 1212.00 225.00 191.27 285.00 169.59 324.25 312.00 379.61

Grand Total - Department of Commerce 4562.00 777.00 671.74 885.00 686.48 1087.25 950.00 1351.60

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Annexure “C” STATEMENT OF BUDGET ESTIMATES - Demand No - 12 (2005-06) Actual 2003-04 Budget 2004-2005 Revised Estimates 2004-05 Budget 2005-2006

Head Plan Non-Plan Total Plan

Non-Plan Total Plan

Non-Plan Total Plan Non-Plan Total

Revenue 278.07 1236.81 1514.88 561.25 1250.00 1811.25 424.00 1250.00 1674.00 744.00 1070.00 1814.00 Capital 409.84 409.84 526.00 526.00 526.00 526.00 606.00 606.00 Total 687.91 1236.81 1924.72 1087.25 1250.00 2337.25 950.00 1250.00 2200.00 1350.00 1070.00 2420.00 1. Secretariat-Economic Services 3451 27.82 27.82 29.65 29.65 31.30 31.30 35.35 35.35 Foreign Trade and Export Promotion 2. Trade Commissioners 3453 70.90 70.90 73.00 73.00 75.00 75.00 80.00 80.00 3. Director General of Foreign Trade 3453 35.80 35.80 40.50 40.50 39.00 39.00 40.97 40.97 4. Assistance for Export Promotion and Market Development 4.01 Export Subsidy 3453 711.95 711.95 676.27 676.27 686.22 686.22 662.07 662.07 4.02 Grants in aid to Export Promotion 3453 52.00 52.00 55.00 55.00 55.00 55.00 55.00 55.00 and Market Development Organisation 4.03 Food Grain Export Subsidy 3453 0.01 0.01 0.01 0.01 0.01 0.01

Total 763.95 763.95 731.28 731.28 741.23 741.23 717.08 717.08 5. Development of Free Trade/ Export Processing Zones/Special Economic Zones 5.01 Kandla SEZ 3453 2.90 2.90 3.52 3.52 3.35 3.35 3.90 3.90 5.02 Electronics (SEEPZ) SEZ 3453 4.41 4.41 6.05 6.05 4.71 4.71 4.90 4.90 5.03 Falta 3453 1.60 1.60 1.88 1.88 1.75 1.75 2.06 2.06 5.04 Madras 3453 3.44 3.44 3.86 3.86 3.58 3.58 4.05 4.05 5.05 Cochin SEZ 3453 1.97 1.97 2.44 2.44 2.35 2.35 2.78 2.78 5.06 Noida 3453 3.31 3.31 3.93 3.93 4.39 4.39 5.00 5.00 5.07 Visakhapatnam 3453 2.02 2.02 2.18 2.18 2.03 2.03 2.43 2.43 5.08 Indore SEZ 3453 0.02 0.02 0.40 0.40 0.38 0.38 0.50 0.50 5.09 Jaipur SEZ 3453 0.02 0.02 0.37 0.37 0.34 0.34 0.40 0.40

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Actual 2003-04 Budget 2004-2005 Revised Estimates 2004-05 Budget 2005-2006

Head Plan Non-Plan Total Plan

Non-Plan Total Plan

Non-Plan Total Plan Non-Plan Total

5.10 Manikanchan SEZ Kolkatta 3453 0.02 0.02 0.37 0.37 0.31 0.31 0.40 0.40 5.11 Moradabad SEZ 3453 0.01 0.01 0.37 0.37 0.25 0.25 0.35 0.35 5.12 Maha Mumbai SEZ 3453 0.40 0.40 0.40 0.40 5.13 Jodhpur SEZ 3453 0.37 0.37 0.25 0.30 0.30 5.14Investment in ECGC 5465 60.00 60.00 100.00 100.00 100.00 100.00 100.00 100.00 5.15 National Export Insurance Account 3453 200.00 5.16 Indian Institute of Foreign Trade (IIFT) 3453 1.75 1.75 1.75 1.75 1.00 1.00 1.00 1.00 Total 60.00 21.47 81.47 100.00 27.89 127.89 100.00 24.69 124.69 300.00 28.47 328.47 6. Agricultural and Processed Food Products Export Development Authority 3453 40.00 2.00 42.00 53.00 2.00 55.00 45.00 0.65 45.65 55.00 55.00 7. Marine Products Export Development Authority 3453 41.00 4.00 45.00 52.00 4.00 56.00 44.00 1.33 45.33 54.00 4.50 58.50 8. Other Schemes of Foreign Trade and Export Promotion 8.01 Director General of Commercial Intelligence and Statistics 3453 15.48 15.48 10.84 10.84 10.97 10.97 11.25 11.25 8.02. Export Promotion Quality Control and Inspection 8.02.01 Quality Council of India 3453 0.15 0.15 0.15 0.15 0.15 0.15 8.02.02 Export Inspection Council 3453 4.00 2.42 6.42 5.89 0.01 5.90 4.59 4.59 4.50 4.50 8.02.03 EAN - India 3453 0.25 0.25 0.41 0.41 0.35 0.35 0.01 0.01 8.02.04 Market Access Initiatives-Export 3453 9.00 9.00 102.24 102.24 5.00 5.00 40.00 40.00 Studies 8.02.05 Centre for WTO Studies 3453 0.40 0.40 1.00 1.00 1.00 1.00 1.20 1.20 8.02.06 Assistance to Institutions 3453 7.50 7.50 13.55 13.55 6.65 6.65 4.83 4.83 8.02.07 Modernisation and Upgradation 3453 3.63 3.63 5.00 5.00 3.00 3.00 4.00 4.00 5453 1.00 1.00 1.00 1.00 6.00 6.00 8.02.08 Footwear Design and Development 3453 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Institute

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Actual 2003-04 Budget 2004-2005 Revised Estimates 2004-05 Budget 2005-2006

Head Plan Non-Plan Total Plan

Non-Plan Total Plan

Non-Plan Total Plan Non-Plan Total

8.03 Contributions to International Organisations 3453 5.97 5.97 7.00 7.00 7.00 7.00 9.90 9.90 8.04 International Conferences 3453 0.25 0.25 0.40 0.40 0.40 0.40 0.40 0.40 8.05 Scheme for Central Assistance to the States for Developing Export Infras- and other Allied Activities 3601 3602 3453 5453 329.84 329.84 385.00 385.00 385.00 385.00 450.00 450.00

Total 329.84 329.84 385.00 385.00 385.00 385.00 450.00 450.00 8.06 Reimbursement of losses to STC on procurement of Rubber 3453 8.07 Advance to Foreign Govts. 7605 8.08 Others 3453 1.86 1.86 2.51 2.51 1.62 1.62 2.00 2.00 Total 355.62 25.98 381.60 515.24 20.76 536.00 407.74 19.99 427.73 511.69 23.55 535.24 Total - Foreign Trade and Export Promotion 496.62 924.10 1420.7 720.24 899.43 1619.67 596.74 901.89 1498.63 920.69 894.57 1815.26 Plantations 9. Commodity Boards 9.01 Tea Board 2407 11.57 21.04 32.61 54.93 16.00 70.93 54.93 16.00 70.93 35.00 18.00 53.00

Total 11.57 21.04 32.61 54.93 16.00 70.93 54.93 16.00 70.93 35.00 18.00 53.00 9.02 Rubber Board 2407 66.95 10.50 77.45 70.60 11.00 81.60 70.60 10.00 80.60 75.00 12.00 87.00

Total 66.95 10.50 77.45 70.60 11.00 81.60 70.60 10.00 80.60 75.00 12.00 87.00 9.03 Coffee Board 2407 23.00 12.50 35.50 51.00 13.00 64.00 46.00 13.00 59.00 53.00 13.50 66.50 9.04 Spices Board 2407 18.00 3.00 21.00 21.00 3.20 24.20 21.00 1.07 22.07 26.00 1.00 27.00 Total 18.00 18.00 21.00 3.20 24.20 21.00 1.07 22.07 26.00 1.00 27.00 9.05 Cashew EPC 2407 0.87 0.87 1.00 0.75 0.75 0.01 Total - Commodity Boards 120.39 47.04 167.43 198.53 43.20 241.73 193.28 40.07 233.35 189.01 44.50 233.51 10. Other Schemes of Plantations 10.01 Payments to Tea Trading Corporation of India 2407 10.02.01 Price Stablisation Fund 2407 200.00 200.00 234.13 234.13 234.13 234.13 50.18 50.18 10.02.02 Payment to PSFTrust - PSF Scheme From 2.08 2.08 1.75 1.75 2.75 2.75 TO -2.08 -2.08 -1.75 -1.75 -2.75 -2.75

58

Actual 2003-04 Budget 2004-2005 Revised Estimates 2004-05 Budget 2005-2006

Head Plan Non-Plan Total Plan

Non-Plan Total Plan

Non-Plan Total Plan Non-Plan Total

10.04 Tea Plantations Fund 2407 Transfer To 58.50 58.50 51.50 51.50 103.00 103.00

From net 58.50 58.50 51.50 51.50 103.00 103.00

Total 200.00 200.00 234.13 234.13 234.13 234.13 50.18 50.18 Total - Plantations 120.39 247.04 367.43 257.03 277.33 534.36 244.78 274.20 518.98 292.01 94.68 386.69 Crop Husbandary 11. Commercial Crops 11.01. Tobacco Board 2401 12. Lump sum provision for projects/ schemes for the benefits of the North Eastern Region and Sikkim 12.01 Schemes for Assistance to States for Development of Infrastructure and other Allied Activities 2552 4552 20 20 40.00 40.00 40.00 40.00 50.00 50.00 12.02 Tea 2552 30.13 30.13 38.32 38.32 38.32 38.32 40.00 40.00 4552 12.03 Rubber 2552 13.88 13.88 19.40 19.40 19.40 19.40 20.00 20.00 4552 12.04 Coffee 2552 3 3 4.00 4.00 4.00 4.00 5.00 5.00 4552 12.05 Spices 2552 2.2 2.2 4.00 4.00 4.00 4.00 4.00 4.00 4552 12.06 Tea Plantation 2552 1.50 1.50 1.50 1.50 17.00 17.00 12.07 Indian Institute of Packaging 2552 1.50 1.50

Total 69.21 69.21 108.72 108.72 107.22 107.22 136.00 136.00 Supplies and Disposals 13. D.G.S. & D 2057 1.69 37.85 39.54 1.26 43.59 44.85 1.26 42.61 43.87 1.30 45.40 46.70 Grand Total 687.91 1236.81 1924.7 1087.25 1250.00 2337.25 950.00 1250.00 2200.00 1350.00 1070.00 2420.00

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CHAPTER V

PERFORMANCE AND THE SCOPE OF INDIVIDUAL ACTIVITIES PROJECTS AND SCHEMES WITH REFERENCE TO FINANCIAL OUTLAYS

1. EXPORT PROMOTION (A) Assistance for Export Promotion and Marketing Development Assistance is given for the development of exports for the following schemes: - i) Subsidy The provision under this head is generally for the payment of Duty Draw Back on Deemed Exports and reimbursement of CST in Special Economic Zones/EOUs and terminal excise duty in respect of deemed exports. ii) Grants-in-aid to Export Promotion and Market

Development Organisations Under this head, grants-in-aid are given to the various approved product specific Export Promotion Councils, Commodity Boards and Export Development Authorities for their development activities to promote exports of Indian products and commodities. MDA assistance to exporters is routed through FIEO, EPCs, Commodity Boards and Export Development Authorities for sale-cum-study tour, participation in trade fair/exhibition and publicity through printed material.

The budget provision for export

assistance is as under:

(Rs. in crore) Actual Head of Expenditure

2002-03 2003-04

Budget Estimate 2004-05

Revised Estimate 2004-05

Budget Estimate 2005-06

i) Subsidy 583.11 711.95 676.27 686.22 662.07 ii) Grants-in-aid to Export Promotion and Market Development Organisations.

45.00 52.00 55.00 55.00 55.00

Total 628.11 763.95 731.27 741.22 717.07 A comparative position of the financial assistance provided vis-à-vis exports during the last five years is as under:-

(Rs. in crore) Year Provision Disbursed Export realization 2000-2001 35.00 35.00 203571 2001-2002 44.00 44.00 209018 2002-2003 45.00 45.00 250130 2003-2004 52.00 52.00 283605 2004-2005 55.00 44.07 (upto 10.1.05) 211141 (upto Nov. 04)

(A)(B) Market Access Initiative – Export Studies

Under the “Market Access Initiative- Export Studies” Scheme, EPCs and Trade Promotion Organisations etc. would project their requirements for

undertaking marketing promotion efforts abroad on country- product focus approach basis in a single project covering the objectives of the scheme namely, (i) Market Studies for select products in select countries to generate data for promotion of

60

exports from India, (ii) assisting the exporters and (iii) EPCs in the promotion of Indian products and brands in international market,(iv) assisting projects for research and product development, (v) supplementing State Governments efforts in carrying out export potential surveys of

the respective State(s) for identified product groups etc.

The BE 2004-2005, RE 2004-2005

and BE 2005-2006, under the “Market Access Initiative – Export Studies “ Scheme are as under:-

(Rs. in crore) Head of Expenditure Budget

Estimate 2004-05

Revised Estimate 2004-05

Budget Estimate 2005-06

Market Access Initiative- Export Studies Scheme

102.24 5.00 40.00

(C) India Brand Equity Fund

The present corpus of the fund is

approximately Rs. 188.44 crores which includes the interest earned on the deposits made in Banks and other financial institutions.

Only 6 Companies have been assisted with disbursement of Rs. 16.34 crores. M/s Eastman Industries Ltd. has closed accounts with IBEF, after paying off all their dues.

So far, loans from IBEF fund have

been disbursed to the following Companies:

Details of loan granted by the IBEF Trust. Sl. No

Name of the firm Disbursement year

Purpose Amount (Rs. in lakhs)

1. M/s. K.G. Denim Ltd., Coimbatore

1999-2000 Promoting Trigger Brand jeans in SAARC and Middle East countries.

148.47

2. M/s. HMT (International Ltd., Bangalore.

1999-2000 Promoting the sale of watches in Dubai and outlet in Kuala Lampur.

100.00

3. M/s. International Creative Foods Ltd., Kochi

1999-2000 Promoting their Ocean Diamond and Brilliant Brands in US market

600.00

4. M/s. Clutch Auto Ltd., New Delhi

2001-2002 CA Plus, ECOCLUTCH, EZ n LITE CLUTCH and CA made in India” in US market.

350.00

5. M/s. Vishuddha Rasayanee Pvt. Ltd., Thane

2001-2002 Promote Urvashi Brand Perfume in France

425.00

Total 1623.47

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(D Special Economic Zones

The provisions under SEZs are as under:- (Rs. in crore)

S. No.

Zone Revenue (Non Plan)

BE 2004-

05

RE 2004-

05

BE- 2005-

06 1 Cochin SEZ 2.44 2.35 2.78 2 Falta SEZ 1.88 1.75 2.06 3 Indore SEZ 0.40 0.38 0.50 4 Jaipur SEZ 0.37 0.34 0.40 5 Jodhpur SEZ 0.37 0.25 030 6 Kandla SEZ 3.52 3.35 3.90 7 Madras SEZ 3.86 3.58 4.05 8 Maha Mumbai

SEZ 0.40 - 0.40

9 Manikanchan SEZ

0.37 0.31 0.40

10 Moradabad SEZ

0.37 0.25 0.35

11 Noida SEZ 3.93 4.39 5.00 12 Santacruz SEZ 6.05 4.71 4.90 13 Vishakhapatnam

SEZ 2.18 2.03 2.43

Total 26.14 23.69 27.47 Explanation of Financial requirements

The provision is towards administrative expenses such as salaries and allowances of officers and staff, travel expenses, advertisement and publicity and maintenance of the zones premises. (II) DEVELOPMENT OF EXPORT ORIENTED INDUSTRIES (A) TEA The Tea Board, a statutory body, was set up under section-4 of the Tea Act, 1953 by the Government of India to

benefit the tea industry and trade. The Board’s main functions include looking after all-round development of the tea industry as also tea licensing and promoting Indian tea exports including value added teas. The Board has 16 Regional and Sub-Regional Offices in different parts of India, besides its head office at Kolkatta. It has three overseas offices situated in London, Dubai and Moscow.

The main source of revenue of Tea

Board is from proceeds from cess levied on all teas produced under Section 25 of the Tea Act, 1953. The present rate of cess is 30 paise per kg. for all teas except Darjeeling teas which is levied @12 paise per kg. The cess so collected is credited to the Consolidated Fund of India, after deduction of collection charges and such sums, as are voted by Parliament, are released to the Board. The estimated cess collection for 2004-2005 and 2005-2006 is Rs. 25.57 crore and Rs.25.52 crore respectively. Besides the amounts released to the Board out of cess collection, funds available with the Board by way of grants received from the Central Government, fees levied and collected in respect of licenses, permits, sale of publications, interest received on advances etc., are also utilised towards meeting the expenses of the Board. Financial Requirements: Programme and activity-wise classification and source of financing are as under:

( Rs. in lakhs) Programme & Activity Classification

B.E. 2004-2005

R.E. 2004-2005

B.E. 2005-2006

i. Tea Promotion : 9325.00 9325.00 7500.00 ii. Tea Development Fund 6000.00 6000.00 12000.00 iii. Non-Plan 1600.00 1600.00 1800.00 Total 16925.00 16925.00 21300.00

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1. ADMINISTRATION AND DIRECTION: The provision relates to the expenditure on Pay and Allowances of Officers and staff of the Board including Travelling Allowances and other expenditure under administration such as maintenance of office equipments and office buildings, contingencies, postage and telegrams, rent, purchase of furniture and equipment etc., Administrative expenses on general administration of the Board including the departments of Tea Statistics and Tea licensing. Expenditure on works and pension and loans/ advances to the employees are also included in the above provision. 2. TEA DEVELOPMENT AND RESEARCH ACTIVITIES

Development of tea industry is one of the main functions of the Board. The Board has taken up various development schemes for this purpose. The main thrust of the Annual Plan of 2005-2006 would be on the following spheres of activities:

a) Enhancement of production through

various development measures such as tea replanting, replacement planting, rejuvenation pruning and infilling of vacancies with improved planting materials.

b) Enhancement of productivity of small tea growers.

c) Special emphasis on Irrigation for combating the drought conditions.

d) Augmentation of tea processing facilities for manufacture of additional crop by construction of new tea factories.

e) Modernisation of existing tea factories to ensure production of quality tea suitable for domestic and export market.

f) Market Promotional activities both at domestic and export front.

g) Encouragment to export of value added and speciality teas such as organic tea , Green Teas, instant teas etc.,

h) Taking advantage of IT tools for promotion.

i) HRD programme for the people associated with tea cultivation and processing

j) Implementation of ISO and HACCP standards as a part of quality assurance programme

k) Stepping up of R & D measures . To achieve the desired objectives in the above noted spheres, the Board is operating the below noted developmental schemes during the Annual Plan 2004-2005 -06.

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Scheme Objective

1. Tea Plantation Development Scheme (Subsidy)

Productivity improvement through replanting, rejuvenation pruning & consolidation through infilling of vacancies, improvement of drainage and creation of irrigation facilities, special focus on small tea gardens for enhancing productivity and quality, new planting in small growers sector in traditional and non traditional area, intensive mechanized pruning in small holdings, setting up of pilot tea producers societies etc. The financial package offered by the scheme include subsidy @ 25% of the unit cost as approved by NABARD.

2.Market Promotion Scheme (Subsidy)

To assist tea producers/exporters for increasing domestic consumption and boosting export through various measures like adoption of medium term strategy for export, generic promotion for new tea markets as also for domestic consumption, brand promotion, introduction of Exporter Rating system, re-launching of the tea logos, protection of IPRs.

3 Tea Quality Upgradation and Product Diversification Scheme (Subsidy)

To provide financial assistance to the needy tea gardens/factories for creation of new facilities for product diversification like green tea and other speciality teas, setting up of modern blending/packaging units, installation of orthodox tea manufacturing machinery ,electronic control devices for withering and sorting machinery, obtaining ISO/HACCP/organic tea certification for tea manufacturing units/gardens and imparting training to small growers and Bought leaf factory owners in quality awareness.

4.Human Resource Development (Subsidy)

To induct professionalism in plantation management, labour productivity, skills improvement at all levels from workers to managers through extensive training by recognised institutes and labour welfare measures etc.

5.Research and Development (Grant-in-aid )

Assistance to research projects of Tea Research Institutes and other recognized Institutes for quality up- gradation, technology transfer for improving productivity, value addition and product diversification, nutrition management, tea and human health, setting up of quality control laboratories etc. Development assistance is also proposed for setting up of training centres and advisory centres for small growers, opening of new development offices of the Board for closer interface with small growers, strengthening of existing Board’s offices, setting up of nurseries/demonstration plots for benefit of small growers, study tours and workshops for small growers etc. setting up of a web based portal (www.Indianteaportal.com) for dissemination of information pertaining to all aspect of tea industries and strengthening auction system through introduction of appropriate electronic system etc.

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TEA RESEARCH

Tea Board is supporting the tea

research activities at Tea Research Association in the North-Eastern regions and UPASI-TRF in South India to the extent of 49% of their recurring expenditure for regular research activities. The Board has released financial support to TRA to the extent of Rs. 328 lakhs each year during 2002-2003 and 2003-2004. UPASI-TRF was granted Rs.52 lakhs annually for the year 2002-2003 and 2003-2004. In the year 2004-2005, the Board has allocated Rs. 204 lakhs to TRA and 39 lakhs to UPASI-TRF (up to Nov,04).

The research activities in both the institutes includes laboratory and field research activities in the disciplines of agronomy and plant breeding, soil science and irrigation, plant protection, biochemistry, and for advisory services to the tea gardens through a network of advisory offices. Releasing of high yielding clones both for North East and South India helped in enhancing the total production and productivity of tea, Supporting package and practices were also updated for nutrient application, plant protection measures, irrigation and drainage. Biochemical analysis of tea for quality parameters has helped in recommending quality up gradation manufacturing technology.

Under 10th plan, the Board has

launched 5 research schemes at TRA with a total out lay of Rs. 447 lakhs of which Rs. 322.02 lakhs has been released and Rs. 275.17 lakhs utilized until Nov. 2004. In case of UPASI-TRF, 6 research schemes were sanctioned with a total out lay of Rs. 527.09 lakhs of which Rs. 403.73 lakhs has been released. All the infrastructure was built along with starting of field experimentation.

Technical Programmes under 10th plan Research schemes both at TRA & UPASI- TRF included networking of all the advisory centers with respective base laboratories totaling 14, seven each in North-East and South India. Instrumentation and networking have been completed in S. India and expected to be completed in the N.E within few months. The implementation of programmes in the N.E is being supported by the Ministry of Information & Technology, Govt. of India. Data generation from the gardens and computerization in respective advisory centers and feed back from the main laboratories are channeled under this programme to speed up advisory services at grass root level. In another scheme, establishment of a chain of quality control laboratory in the North-East and S. India has been taken up. So, far 4 such quality testing laboratories were set up by UPASI – TRF each at Valparai, Coonoor, Gudalur and Vandiperiyar. TRA has established three such quality testing laboratories each at Jorhat, Nagrakata and Silchar (Cachar). Further steps have been taken to establish more such units so that quality testing facilities of tea can be extended to the tea gardens at door step.

Diversification of product and innovation of new technologies is a thrust area under the 10th plan. Implementing a scheme by TRA, extraction of chemicals and aroma constituents from tea leaves has been standardized. Drainage and irrigation using remote sensing technology was supported for generating information.

TEA PROMOTION

Activities are grouped broadly under

(i) Generic Promotion and (ii) Uninational Promotion.

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Generic Promotion For promotion of tea as a beverage vis-à-vis other drinks, generic promotion are conducted through Tea Councils set up jointly by producing countries and local tea trade. India is currently a member of the Tea Council of U.K., Germany, USA and Canada and also the International Tea Committee, London.

As part of this Tea Council’s

generic promotion programme, Indian and Sri Lankan teas are being promoted in particular. (i) Uninational promotion

Uninational promotion is aimed at

improving the position of Indian tea and its image in the world market. Such activities are conducted by the Tea Board mainly through its overseas offices at London, Moscow and Dubai. The medium of promotion includes (a) media advertising (b) participation in international Fairs and Exhibitions (c) Buyer-Seller Meets (d) store demonstrations (e) promotional support to Indian exporters as also to foreign importers for marketing of pure Indian tea brands (f) organising visits of tea delegations to and from India and (g) public relations. Export of value-added teas, mainly Indian tea in branded form in consumer packs, tea-bags, chest lets etc. and bio-organic tea, instant tea, green tea etc. are thrust items in such promotional programmes. Special promotional campaigns are conducted to give support to such tea brands containing pure Indian tea and specialty Indian tea. Tea Board also introduced distinguishing logo marks to identify the pure Darjeeling, Assam and Nilgiri teas and promotional programmes. publicity for such logos are conducted. New rules for grant of Board’s marketing logo to licensed users based on specified quality benchmarks for teas and PFA parameters etc. along with a monitoring mechanism for 100% Indian Tea content

in packs packed outside Indian in Russia has also been put in place.. (B) COFFEE The main activities of the Coffee Board, established under the Coffee Act VII of 1942 are: (1) Promoting agricultural and

technological research of Coffee; (2) Promotion of sale and increase in

consumption of Coffee in India and abroad;

(3) Providing Technical assistance for overall development of coffee plantations in India;

(4) Securing better working conditions and the provision and improvement of amenities and incentives for plantation workers;

(5) Management of the other operations as per the provisions of the Coffee Act.

In the post liberalised era for coffee, the emphasis of the Board is now on critical areas such as Research, Development, Extension, quality upgradation, support to small grower sector, Training, Market Intelligence, Promotion of Exports/Domestic consumption apart from providing socio-economic development programmes to encourage tribal coffee growers to take up coffee cultivation in the non-traditional states. The thrust areas identified by the Board for overall development of coffee industry are grouped under 7 major heads of programmes as follows: 1. Step up Production, Productivity and

Quality 2. Infrastructure Development, Capacity

Building & Transfer of Technology. 3. Market Development.. 4. Support for Small grower sector. 5. Interest Subsidy for Small Growers 6. Interest Subsidy for Large Growers. 7. Transport Subsidy.

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The Government levies a Cess on

coffee at Rs. 50.00 per quintal under section 11 of the Coffee Act 1942 on all coffee exports. The Cess so collected is credited to the Consolidated Fund of India after deduction of collection charges and such sums as are voted by the Parliament are released to the Board. The actual cess collection for the year 2003-04 is Rs. 7.70

crs. Other sources of income of the General Fund are sale of coffee produced in the coffee Research Stations and Coffee Demonstration Farms of the Board, interest on corpus and miscellaneous receipts from the produce in farms etc.

The Programme and activity-wise classification and source of financing are as under:

( Rupees in lakhs) Programme and activity classification Budget

Estimate 2004-2005

Revised Estimate

2004-2005

Budget Estimate 2005-

2006 Source of Finance Demand No.12-Deparment of Commerce

(i) Major Head “2407” Coffee Payment against collection of cess Coffee Board (Non-Plan) 1300.00 1300.00 1350.00 Subsidy for plantation Coffee Board (Plan) 1780.00 1780.00 2400.00 Other Expenditure Grants-in-aid to Coffee 3320.00 Board (Plan) 4120.00 2820.00 2900.00 Provision for NE Region 400.00 400.00 500.00 TOTAL 6800.00 6300.00 7150.00

Export Promotion: External Publicity for Indian Coffee is aimed at projecting the image of Indian Coffee as quality coffee for use, both independently and in blends. Promotion of Indian Coffee abroad is carried out in various ways as indicated below. (i) Regular participation in selected International Food fairs. Besides receiving valuable trade enquiries, these fairs also serve as effective platforms to project and popularize the image of Indian Coffee. (ii) Release of advertisements on the excellence and selectivity of Indian Coffee

in selected overseas trade journals and magazines. Under the Budget Head External Publicity, a sum of Rs.2.31 crore is allocated under plan funds for the year 2004-05. The Board participated in the following overseas exhibitions during 2004-05:- 1) 16th Annual of SCAA 2004, Atlanta,

USA, 23-26, April, 2004. 2) World Barista Championship 2004,

Trieste, Italy – 18-20, June, 2004. 3) Fine Food, Melbourne, Australia – 06-

09, September, 2004. 4) Food & Hospital China, Shanghai,

China – 14-17, September, 2004. 5) World Food Fair, Moscow, Russia –

21-24, September, 2004

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6) Tea & Coffee World Cup Asia, Singapore – 12-19 October, 2004

7) Hostelco Trade Show, Barcelona, Spain – 23-27, October, 2004

8) Trieste Expresso Expo – 2004, Trieste, Italy – 05-07, November, 2004

INTERNAL PUBLICITY: The main aim and efforts of Internal Publicity are: i) To increase the consumption of pure coffee and ii) To popularize the correct methods of roasting, grinding and brewing of coffee for consumers to enjoy the stimulating drink.

The above objectives are achieved through running certain India Coffee Depots/Coffee Houses in different parts of the country. The Indian coffee Houses serve pure Coffee in the cups brewed according to acknowledged/established standards. In the non-traditional areas, raw coffee beans are also sold through promotional units to the consumers. The Board participated in the following Internal Exhibitions during the period under report:- i) Agri-Intex 2004, Coimbatore – August 20-25, 2004. ii) 111th UPASI Industrial Exhibition, Coonoor – September 6-7, 2004. iii) Food Tech India 2004, Kolkata – October 1-4, 2004. iv) Coffee & Tea India 2004, Jaipur – October 29-31, 2004. v) India International Trade Fair 2004, New Delhi – November 14-27, 2004. vi) Food Expo 2004, Chandigarh – December 3-6, 2004. COFFEE DEVELOPMENT IN THE NORTH EASTERN REGION AND

NON-TRADITIONAL STATES Viz., ANDHRA PRADESH AND ORISSA. A: On-going scheme on Coffee Development in the North Eastern Region: The plan programme ‘Special Area Programme’ for the North Eastern Region implemented by the Board for IX plan is being continued during X plan under the name ‘Coffee Development in the North Eastern Region’. The objectives of the scheme are: (a) Weaning away the tribals from ‘Jhum’ cultivation (b) promoting coffee cultivation as an eco-friendly activity in the tribal areas (c) providing gainful self employment to the tribals and (d) rehabilitating the tribals on a permanent footing in an agro-based enterprise like coffee. The above scheme is implemented in close co-ordination with the Coffee Development agencies of the States of Assam, Arunachal Pradesh, Meghalaya, Tripura, Nagaland, Manipur and Mizoram. The Board provides a subsidy of Rs.15,000/- for coffee expansion and coffee consolidation and subsidy of Rs.10/- per kg of coffee under the Market Support Scheme to meet part of the cost of procurement, transportation, curing and disposal of coffee. Besides providing subsidy, the Board’s extension network provided much needed technical support for development of coffee in the region. B. Coffee Development in the Non-Traditional States of Andhra Pradesh and Orissa: The plan programme ‘Special Area Programme for Coffee Development in the Non-Traditional Areas of Andhra Pradesh and Orissa’ implemented during IX plan is being continued during X plan also and the scheme is titled ‘Coffee Development in the Non-Traditional in the Non-Traditional Areas of Andhra Pradesh and Orissa’. The

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scheme aims at (a) Weaning away the tribal growers from the practice of ‘Podu’ cultivation (b) preserve the ecology of eastern ghats by systematic cultivation of coffee (c) improve the socio-economic status of tribals and (d) settle the tribals on agro-based enterprise like coffee.

The Board provided a subsidy of Rs.15000/- per ha. for Coffee Expansion in Orissa and a one-time subsidy of Rs.5000/-

per ha. for Coffee Consolidation in Andhra Pradesh. Under Quality up-gradation scheme, the Board provided subsidy for installation for community pulpers / Baby pulpers, construction of community godowns for storage of coffee, establishment of mini coffee curing works to cure the coffee produced by the tribal growers of Andhra Pradesh.

Achievement – 2004-05 (upto Sept 2004)

Coffee Development in North Eastern Region:

Physical: ha/units, Financial:Rs. In lakhs

Target Achievement Sl.No

Scheme Physical Financial Physical Financial

1 Coffee Expansion Scheme 600 54.00 24.00 1.44 2 Coffee Consolidation Scheme 600 54.00 180.50 10.83 3 Group Plantation Scheme 125 21.00 Nil Nil 4 Market Support Scheme

(Metric Tones) 300 159.00 71.30 26.17

Likely achievement for 2005-06

Coffee Development in North Eastern Region :

(Physical: ha / units - Financial : Rs. In lakhs) Target Likely Achievement Sl.

No Scheme

Physical Financial Physical Financial 1 Coffee Expansion Scheme 600 0.90 600 0.90 2 Coffee Consolidation Scheme 600 1.07 600 1.07 3 Group Plantation Scheme 125 0.10 125 0.10 4 Market Support Scheme

(Metric Tonnes) 100 10.00 100 10.00

Coffee Development in Andhra Pradesh and Orissa : (upto Sept. 2004) Physical: ha/units, Financial: Rs. In lakhs

Target Achievement Sl.

No Scheme

Physical Financial Physical Financial 1 Coffee Expansion in Orissa 150 6.75 226.84 10.20 2 Coffee Consolidation in Andhra

Pradesh 600 30.00 239.98 11.98

3 Quality Upgradation a) Baby Pulpers (No. of Units) 450 22.50 1 0.37 b) Community Pulpers (No of Units) - - - - c) Community godowns (No. of Units) 3 6.00 nil nil

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Coffee Development in NTA (AP and Orissa)

Physical: ha/units, Financial: Rs. In lakhs Physical Financial Physical Financial 1. Coffee Expansion in Orissa 250 0.30 250 0.30 2. Coffee consolidation in

Andhra Pradesh 600 0.30 600 0.30

3 Quality Upgradation a. Baby pulpers (No. of Units) 200 200u b. Community Pulpers (No. of

Units) 10 10 u

c. Community godowns (No. of Units)

10

90.00

10 u

90.00

Coffee Board is implementing the following schemes during the Tenth Five Year Plan (2002-07):- 1. Step up Production & Productivity 2. Infrastructure Development, Capacity

building and Transfer of Technology 3. Market Development Programme 4. Support to Small Grower Sector Activities in each of above four schemes are as under: Step up production and Productivity

This scheme includes seven

components viz., 1. Plant improvement and bio-technology 2. Crop Management 3. Plant protection 4.Standardization of PHT, mycotoxin, pesticide residues in coffee 5. Setting up Quality evaluation-testing centres, raining, certification systems 6. Coffee development in NER and NTA 7. Promotion of Organic Coffee. Infrastructure Development, Capacity Building and Transfer of Technology

The scheme includes five components viz., 1. Transfer of Technology through Extension Centres. 2. Maintenance of Research/Extension farm and infrastructure development 3. Promotion of Self Help Group 4. Capacity building among various segments of the Industry including Board’s Personnel 5. Labour Welfare Measures in Coffee Sector. Market Development This programme includes the following three schemes. 1. Export Promotion of Indian Coffee 2. Promotion of domestic coffee consumption 3. Strengthening of Economic and Market Intelligence Unit. Support to Small Grower Sector This programme includes the following three schemes. 1. Incentive for replanting & water augmentation programmes in coffee farms. 2. Incentive for Quality up-gradation 3. Development & implementation of Pollution abatement measures.

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In addition, the following schemes have been approved for providing relief to coffee growers and exporters as an ad-hoc relief measure.

1. Interest Subsidy to Small Growers 2. Interest Subsidy to Large Growers 3. Transportation Subsidy to Exporters (C) RUBBER The Rubber Board, constituted under the Rubber (Production and Marketing) Act, 1947 looks after the development of rubber industry in India. The Board undertakes and encourages Scientific, Technical and Economic Research and renders advice to Rubber Growers. As per the Act, it is also the duty of the Board to advise the Central Government on all matters connected with rubber and development of rubber industry in India including marketing and import of rubber. The Rubber Board is entrusted to assess, collect and remit to the Consolidated Fund of India, a duty of excise as cess on indigenous production of natural rubber. At present a duty of excise as cess on rubber is levied @ Rs. 1.50 per Kg. on indigenous production of natural rubber. The cess so collected is remitted to Consolidated Fund of India after retaining 2% as cost of collection. The cess collected from 1999-2000 are as under:-

(Rs. In Crore) Year Cess collection 1999-2000 74.28 2000-2001 80.84 2001-2002 75.50 2002-2003 83.15 2003-2004 84.78 2004-05(upto 1/05) 91.36 2005-2006 (e) 90.00 (e) Estimated.

The programme and activity-wise classification and source of financing are given below:

71

(Rupees in Lakhs) Programmes and Activity Classification Budget

Estimates 2004-05

Revised Estimates 2004-05

Budget Estimates 2005-06

Non-Plan

Research, Works and Labour Welfare etc. 1100.00 1000.00 1200.00 Plan (i) Against Collection of Cess Research, Development, Processing, 7060.00 7060.00 7500.00 Extension, Schemes for SC/ST rubber grower, Labour welfare etc.

(ii) Provision for NE Region 1940.00 1940.00 2000.00 Total 10100.00 10100.00 10700.00 Source of Financing

A brief description of the major schemes operated by the Boards during the 10th Plan are given below:- 1.Rubber Plantation Development Scheme:-

Approval of the Scheme for Rubber Plantation Development is under the active consideration of the Government. The unmodified components of the Scheme which were implemented during the 9th Plan period are being continued during the year 2004-05 with the approval of the government. Rubber Board has been implementing the Rubber Plantation Development Scheme since 1980. Under

this scheme, free technical and financial assistance were provided to the growers to take up the plantation in a scientific manner. For increasing production and productivity of natural rubber, it is proposed to continue: 1. Replanting the old and uneconomic plantations with high yielding cultivars 2. Expansion of area under rubber cultivation through new planting and 3. Productivity improvement of existing mature plantations through improved agro management practices developed by the Board through Research, field studies and experiments.

The physical targets and achievements during the 9th plan period and 10th Plan Period are tabulated below:

(area in hectares) New Planting Re-planting

YEAR Target Achievement Target Achievement 1997-98 9700 12509 5400 5898 1998-99 8500 7061 5400 4849 1999-00 6000 4785 4000 3911 2000-01 2750 3359 3250 3714 2001-02 2750 3322 21300 21626 2002-03 1000 1087 3200 2982 2003-04 1000 1384 4200 6547 2004-05 1000 1000* 6000 4000* 2005-06 1000 5000

*Expected

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This scheme has following components:- Productivity Enhancement (a) Input distribution (b) Quality planting material

generation. (c) Educational compaign meetings &

Farmers meetings. (d) Support to model RPS. (e) Rubber Plantation Project for

Tribal Settlement (Boards share for SCP/TSP/Block Plantation)

(f) Group/Block plantations. (g) Extra income generation from

Rubber Plantations. (h) Intergrated village level rubber

development. (i) Assistance for Boundary

protection/Irrigation. Processing, Quality Upgradation and Product Diversification

i) Providing Engineering consultancy services for the establishment and modernisation of rubber processing factories, rubber goods manufacturing units, Rubberwood treatment plants etc.

ii) Providing analytical services and technical advice to rubber processors and implementation of the schemes for production of latex concentrates and dry rubber conforming to BIS specifications.

iii) Providing financial assistance to co-operative societies, Rubber Producers’ Societies, Marketing and Processing companies to improve processing and marketing of rubber.

iv) Undertaking market promotion activities for selling rubber in order to get price advantage to the farmers.

v) Undertaking research and developmental activities in the field of Radiation Vulcanisation of Natural Rubber Latex (RVNRL) with technical support of BARC, Bombay and participation in co-ordinated Research Programmes evolved by the International Atomic Energy Agency (IAEA) on RVNRL.

vi) Popularising modern methods of processing of rubber by running TSR Factory, Pilot Crumb Rubber Factory and Pilot Latex Processing Centre.

vii) Providing loans to Trading and Processing Companies sponsored by the Board for the procurement of sheet rubber from rubber growers as a measure to improve marketing of rubber.

viii) Popularising the use of Treated Rubberwood through Promotion Campaigns.

ix) Providing wood testing facilities to the parties in the field of manufacturing rubber wood products for improving the quality of their products through the Rubberwood Testing Laboratory.

x) Export promotion work for Rubber wood and products.

This scheme comprises following components

A. Rubber-Group Level/Individual The Board is providing financial assistance to Rubber Producers’ Societies undertaking group processing activities. Assistance is provided for construction of smoke house (650 k/1000 kg. capacity) bio gas plant, battery operated roller, generator etc.

Item RPS/Co-op. Society

2004-05 2005-06 1. Smoke House 100 44 2. Roller 100 44 3. Biogas Plants 100 44 4. Collection Centers 100 106 5. Processing shed 100 44 6. Dripping Shed/training facilities.

100 64

7. Generator 100 10 8. Latex Collection Equipments..

100 202

Quality Upgradation of Technically Specified Rubber (TSR) Block rubber and latex concentrate are together known as Technically

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Specified Rubber (TSR). Consequent on the lifting of Quantitative Regime from 1.4.2001 under the WTO regime it has become necessary that the TSR produced in the country must attain international competitiveness in price, quality, packaging and delivery schedules. The International market and demand in the case of Block Rubber is for high quality Block Rubber quite consistent in quality. It is therefore essential for the Block Rubber factories to adopt quality upgradation measures. The scheme activity ‘quality upgradation’ aims at quality improvement of Block Rubber by the following techniques: a) By providing additional Pre-breaker and Crepers for blending Field Coagulum Grades with latex in different forms. b) By providing additional machinery for size reduction viz. Slab cutter, Pre-breaker, Hammer mill, Shredder etc. c) Through replacement/modification of machinery for size reduction, creeping and drying. d) Replacement/modification/addition of blending tanks to reduce dirt content and to improve homogeneity of rubber. e) Modification/replacement of Hydraulic Presses providing facilities for Plasticity Retention Index (PRI) improvement through chemical treatment, procurement of additional testing and quality control equipment and ISO 9000/14000 Certification systems. f) Providing additional machinery/equipment for making high quality Block Rubber to meet specific requirements of the consumers. g) Providing additional storage areas for raw materials and finished products. In the case of Latex Centrifuging Factories, the scheme envisages quality improvement through improved field practices, collection, storage, packing and transportation to reduce Volatile Fatty Acid (VFA) content and sludge content of the latex when received at the factory.

The Scheme envisages for

providing financial assistance to both the Block Rubber and Latex Centrifuging Factories under the Xth Plan. During the year 2004-05, the budget provision kept for quality upgradation is Rs.30 Lakhs in respect of 6 units. BE for Rs.40 Lakhs has been proposed for the year 2005-06 for providing financial assistance for 5 units. B. Modernisation of the TSR Factories Under this component, financial assistance is given to TSR factories in the private, co-operative and RPS sectors to enable them to attain international cost and quality competitiveness and also to equip them for export and get into the world market. The assistance is given for – i) Quality Improvement

ii) Cost reduction iii) Strengthening the environmental

protection systems iv) Promoting group processing activities

of smallholdings for improving the quality of rubber produced in the country.

v) Community processing Centres and also crop collection centres for feeding group processing factories.

vi) Improvement in packaging systems vii) Promoting speciality rubbers like

Radiation Vulcanised Rubber, Latex, Styrene Grafted Natural Rubber etc.

All these are intended to enable them to improve the quality of rubber produced in India to world standards and also to enable export of rubber and to accelerate export of rubber products, improving the price competitiveness of rubber in relation to major natural rubber producing countries. The budget sanction for modernization activities during 2004-05 is Rs. 30 lakhs involving 10 units. The B.E. proposed for 2005-06 is Rs. 60 lakhs in respect of 10 units.

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C. Rubberwood Processing and Value Addition The main activities under the component ‘Rubberwood’ are the following. i) Processing, value addition and quality

improvement, which include, existing units, new units and also development work.

ii) Waste utilisation and management iii) Quality control (Rubber wood Testing

Lab) iv) Demonstration, Training and Technical

support which include model Rubberwood Factory, Rubberwood harvesting, Heat and power generation from waste wood etc.

The budget sanction for this activity during the year 2004-05 is Rs.`15 Lakhs in respect of 3 units. The BE proposed for 2005-06 is Rs.32 Lakhs in respect of 6 units. D. Product Diversification.: -

The Rubber Board renders technical assistance to the Indian rubber Industry by providing services like modernization of indigenous technology, collective implementation of foreign technology, investment planning, quality control, management development, market analysis etc. Technology upgradation and exploring new areas for the use of natural rubber are important to increase the consumption of NR. In this direction the Board identified the following activities. a) Technical Support to Industries. b) Rubberisation of roads. c) Seismic bearings. Other areas of product diversification: The following areas are identified under the scheme for increasing consumption of Natural Rubber in non-conventional fields.

a. NR Latex based cement concrete in building construction.

b. Irrigation Canal lining with NR. c. Inflatable Check Dam. d. Thermoplastic Natural Rubber. Export Promotion

As the imports would increase due

to removal of Quantitative Restrictions (QR), the country has to promote export of Natural Rubber (NR) to maintain demand-supply balance of NR in India.

The Government of India accorded

approval for implementing the scheme on “Export Promotion of Natural Rubber” during the 10th Five Year Plan and included Natural Rubber (NR) as a major item for export in the Medium Term Export Strategy (MTES) 2002 – 07. The revised total financial outlay for the scheme during the 10th Five Year Plan is Rs. 63.77 crore. The scheme provides financial incentive for the export of Natural rubber for quality improvement, certification, packaging, transportation, terminal handling charges, agency charges, transportation to port of entry and overhead expenses upto the financial year 2004-05. During the year 2005-06 the Board will provide market information to the exporters; participate in international trade fairs/exhibitions to promote export of Indian Natural rubber in international market. The Board will also provide publicity in potential NR importing countries through various media highlighting the country’s capability for export of NR. The Board also maintains a website exclusively for the promotion of export of NR by providing on-line information and other supporting services to the exporters of Indian Natural Rubber.

The physical and financial targets

and achievements of the scheme are given below.

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(In Metric Tones)

(Rs. in lakhs) S.L No.

Particulars Actual 2003-04

B.E 2004-05

R.E 2004-05

B.E 2005-06

1. 2. 3.

Export incentive Promotional Activities Operating expenses

2504.77 27.78 33.42

1766.00 29.00 30.00

1766.00 29.18 29.82

-- 26.68 29.32

TOTAL 2565.97 1825.00 1825.00 56.00

Market Development

This scheme comprises two components i.e., Rubber and Rubberwood. The main activities under the component ’Rubber’ are the following: The important activities proposed for implementation under the scheme are financial assistance for the godowns facilities, procurement of computers, Rubberwood promotional activities (domestic), providing market information on Rubberwood and Export Promotion of Rubberwood.

The activities under the component ‘Rubberwood’ are the following.

• Rubber wood Promotion

(Domestic) • Assistance to processors for

acquiring godown, showroom etc. on rent

• Market information • Export promotion of Rubberwood. • Grant/loan to RPS Sector.

Human Resource Development (HRD) The scheme consists of 3 components viz. Training, Labour Welfare and Infrastructure Development. Infrastructure development includes construction of office/residential buildings at RRII, Central Experiment Station at Chethackal and Regional Research Stations, standardisation of electrical installations, water supply systems at RRII and CES, Chethackal etc. In Rubber Plantations, tapping is the most skilled job and the tappers have to be trained in scientific methods of tapping to boost the productivity of the holding & quality of the produce. For this purpose, Board is running regular tappers training schools and conducting short-term intensive training in tapping. The target/achievement under this sector is as follows.

2003-04 2004-05 2005-06 Particulars Physical

Target

Achievement

Physical Target

Achievement up to 30-11-04)

Physical Target

Natural Rubber 60000 75904

50000 33286 ---

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2004-05* 2005-06** No. of TT School 14 14 No. of batches trained

100 108

No. of trainees 1150 1500 Short duration tapping training batches

450 667

Short duration trainees

6750 10000

*Expected **Proposed Under the various components of HRD

schemes labour welfare for plantation

workers is an important component, which aims at securing better working conditions and improvement in amenities and incentives for the workers. These workers/rubber tappers (over 3 lakh) belong to the lowest strata of society and are very poor. Therefore, it is an important social sector component with an objective to maintain and attract the workers to the tapping job in rubber plantations.

The performance under each sub

components is shown here under.

LABOUR WELFARE COMPONENT

Physical and Financial Targets And Achievements

(Rs.in lakh)

Sl. No. Subcomponents

Achievements (2003-2004)

Targets (2004-2005)

Achievements (2004-2005)upto

30/11/04 Targets

(2005-2006) Physical Financial Physical Financial Physical Financial Physical Financial

1 Educational Stipend 8121 45.91 4730 35.50 2680 20.10 5866 44.00 2 Merit Award 165 2.14 240 3.00 150 1.98 240 3.00 3 Medical Attendance 451 7.87 470 8.00 330 5.77 588 10.00 4 Housing Subsidy 796 59.69 746 56.00 516 38.70 1066 80.00 5 Sanitary Subsidy 660 19.80 666 20.00 421 12.64 600 18.00 6 Housing/Sanitary (SC/ST) 555 40.20 280 20.00 55 3.88 280 20.00 7 Insurance cum Deposit 9541 11.69 9700 13.00 9600 11.50 8 Operating Expenses 13.50 13.50 7.69 13.50

20289 200.80 16832 169.00 4152 90.76 18240 200.00 Rubber Plantation Development for North East A. New Planting: Board has been implementing the New Planting scheme in NE Region, with the aim to promote the new-planting activity in the country. It is proposed to undertake new planting on 2000 ha. every year during the 10th Plan Period (2002-03 - 2006-07). Achievement during 2003-04 was 2720.37 ha and planting anticipated for the year 2004-05 is 2100 ha. B. Replanting: As the plantations existing in the NE Region are relatively young, the scope of replanting in this

region is limited. The estimate for replanting in NE region is 30ha for each year during the plan period. The achievement during 2003-04 is 32.86 ha. and targeted for the year 2004-05 is 30 ha. C. Processing & Quality Upgradation: Board pays adequate attention to the primary processing sector where latex is converted into marketable form of rubber, in the NE Region, as the region does not have enough expertise in the matter. For facilitating this activity, it is proposed to give adequate support to RPS Sector in all of its operations. The targets proposed for 2004-05 and 2005-06 as as follows:-

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2004-05 2005-06 Smoke Houses – Individual

37 (nos.) 60 (nos.)

Rubber sheeting rollers 78 120 Bio-gas plants 70 70 Group Processing facilities

15 15

Strengthening of research in different Regions in NE

There are four regional stations in

NE including the North Eastern Research Complex at Agartala. These stations were established to undertake location-specific research. More land is proposed to be acquired at Tura and Agartala in a phased manner to expand the research activities there. The new Rubber Research and Training Centre is proposed at Guwahati with a total area of 150 hects for which 50 hects is exclusively for research. Research Major Achievements Research Activities of the RRII 1. Improvement of the yield potential by

evolving and introducing high yielding location specific clones.

(i) Breeding for high yield (clone showing a potential yield 20% or more than the highest yielding clone, RRII 105-evolved by the RRII). (ii) Fundamental studies on yield components and the effect of various environmental constraints on yield and yield components . (iii) Screening of Brazilian germ plasm for traits related to productivity and disease/stress tolerance. (iv) Incorporation of selected genotypes in improvement of the Wickham clones. (v) Tissue culture and molecular approaches for productivity improvement.

2. R&D support for extension of plantations to non-traditional regions. The plantations in non-traditional regions are confronted with a variety of agro-

climatic constraints such as drought, low temperature in winter, high temperature in summer, high altitude etc. The major research priorities are: a) Selection and evaluation of clones suitable for various agro-climatic regions. b) Integration of socio-economic and environmental factors to make rubber based agro-systems acceptable to these regions. c) To evolve appropriate nutrient and plant protection schedules for the non-traditional areas and d) To evolve suitable exploitation systems in tune with the climatic constraints of these regions.

The major component of the long term research scheme are as under:- • Crop improvement • Crop management • Crop protection • Physiology and Exploitation • Advance Centre for Rubber

Technology • Economic Analysis • Linkage with national and international institutes of excellence. (D) SPICES As contemplated in the Spices Board Act, the Spices Board is responsible for improving the post harvest operation and the development of exports of various spices - Pepper, Cardamom, Ginger, Turmeric, Spice Oils and Oleoresins. For cardamom it is responsible for production also. The major source of revenue for the functioning of the Board is the cess collected on export of spices. Cess is collected by the Customs and directly remitted to the consolidated fund of India. Through budgetary appropriations it is made available to meet the plan expenses of the Board. At present the cess is collected at the rate of 0.5% advalorem on

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all spices on f.o.b. value except from EOUs and units set up in Export Promotion Zones/Special Economic Zones.

The statement showing financial requirements for the various programmes, projects and schemes under Non-Plan and Plan and sources for financing them are given below:-

( Rupees in lakhs)

Activity/Schemes Budget Estimates 2004-

2005

Revised Estimates 2004-

2005

Budget Estimates 2005-2006

Non-Plan 1. Administration 2. Plantation Labour Welfare

3. Publicity and Propaganda 320.00 107.00 100.00 4. Market Promotion Total 320.00 107.00 100.00 Plan Export Oriented Production Quality improvement Export Development Research etc.

2500.00

2500.00

3000.00

Total 2500.00 2500.00 3000.00

Total 2820.00 2607.00 3100.00

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Explanation for Financial Requirements Administration The establishment expenses of the Board on General Administration including salaries, allowances, advances, etc. is proposed to be met from the provision under Administration. The provision also includes allocation for administrative expenses like rent, telephones, vehicles maintenance, printing and stationery etc. Export oriented Production

Development of cardamom, both small and large, is the responsibility of the Board. Accordingly, Board draws up various schemes and programmes for improving production and productivity of cardamom, its processing, post-harvest handling and marketing. The major programmes being taken up for improving production and productivity are :- (1) Production and supply of quality

planting materials; (2) Replanting of senile and uneconomic

gardens; (3) Development of irrigation facilities;

and land development (4) Post Harvest Improvement of Spices

Board is producing and supplying quality planting material through its departmental nurseries and through other nurseries under the following schemes like:-

• Certified nurseries • Polybag nurseries • Sucker nurseries The replanting scheme is to ensure

rejuvenation of cardamom plantations exceeding an economic life span of 12-15 years. Similarly, irrigation programmes sustain the productivity of cardamom. Though the cardamom developmental programmes are ear-marked for the small and the marginal growers, the extension advisory services benefit all categories of growers.

In the case of spices other than cardamom, the Board is implementing a number of post harvest improvement programmes. The major among them are:- • Supply of polythene sheets for

hygienic drying of spices. • Construction of drying yards to

prevent physical contamination • Supply of bamboo mats • Supply of pepper threshers. • Supply of low cost driers for large

cardamom.

These activities are mainly concentrated in spices like pepper, chilli, turmeric, ginger and seed spices.

On the production side, apart from

cardamom, the Board is offering assistance for new planting of vanilla, production of quality vanilla cuttings under certified nursery scheme and assistance for post harvest processing units. Board is making limited interventions in the areas of production of organic spices, herbal spices, saffron and paprika for making available quality planting material and for creating replicable models. In the case of organic farming, Board assists farmers, farmer groups, NGOs and farmer co-operative societies and processors in acquiring certification for their farms/processing units. Special emphasis is given for promoting organic cultivation of paprika like chilli for export and production of organic spices in special/hill areas. Promotion of integrated pest management in chilli is another area where support is given. The Board has programmes to extend both technical and financial support in setting up of vermicompost units on growers’ field.

The Board has also formulated and implemented various developmental programmes for spices in North-Eastern region. These include large cardamom development, production of organic pepper, herbal spices, ginger, lakadong turmeric and setting up of vermicompost

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units. On the post harvest side, there are proposals to set up driers for drying ginger and turmeric and warehouse- cum-cold storages. Training programmes are also in place benefiting officers, farmers, NGOs and workers in the plantation sector on scientific cultivation and processing of spices. Quality Improvement

To encourage spices conforming to required quality and safety standards the Board offers training to its own technical staff and that to exporters’ labs, conducts of regular survey of hot-spots of contamination and offers analytical services for the exporting community on a commercial basis. Regular interaction with various regulatory bodies, spice trade associations and Codex Alimentarius Commission etc. for updating the method of analysis, fixing up of MRLs for pesticide residues/aflatoxin and finalising quality standards for bilateral/multilateral trade are some of the other areas of activities.

The Quality Evaluation Lab is

undertaking analysis of spices and spice products to assess physical, chemical and microbial contaminants. Many exporters use these analytical results for reference purpose. In addition to the above, analysis of mandatory samples of chilli and chilli products to detect the presence of Sudan and aflatoxin is also being takenupby the laboratory which alone exceeds 10,000 samples per annum.

Export Development

Quality of Indian spices is ensured through a three tier quality accreditation system namely Award of Spice House Certificate for exporters who are following good manufacturing practices, Award of Indian Spices logo to exporters having prescribed hygienic practices in the manufacture of quality products and to market them in consumer packs of one kg and below and institutional packs of 25

kgs and acquisition of ISO 9000/HACCP certifications by individual manufacturing exporters. Acquisition of ISO/9000/HACCP has now become mandatory for obtaining Spices House Certificate/Indian Spices Logo.

With the implementation of

programmes to upgrade technology, process and infrastructure of the manfacturing units, acquisition of high-tech systems, Board encourages exporters for value addition. Thrust is also given for upgradation of quality through infrastructure support for establishing in-house labs, improved technical gadgets for monitoring pesticide residues and acquisition for ISO 9000/HACCP certifications.

On the promotion side, Board is

regularly participating in international food fairs, assisting exporters for trade fair participation; participation in international meetings/seminars, sending business delegations to identified markets for export development. Support for packaging development & reimbursement of cost of packaging and reimbursement of courier charges for sending business samples abroad are part of this programme.

On an average the website of the

Board is accessed two lakh times per month. Export Oriented Research Indian Cardamom Research Institute with its stations located at Myladumpara, Thadiankudissai, Saklespur and Pangthang are engaged in developing technologies for increasing production and productivity of both small and large cardamom. The major disciplines working are:- • Crop Improvement and

Biotechnology • Agronomy and Soil Science • Entomology • Plant Pathology

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• Post Harvest Technology • Transfer of Technology

Selection and hybridization are the

major activities taken up by the Crop Improvement Division. Five hybrids are under multi locational trails. The major projects under implementation are collection, cataloguing and conservation of germ plasm, selection and hybridization, development of protocols through tissue culture route for rapid multiplication of planting material, development of cost effective cultural practices, development of organic and eco-friendly farming with the use of bio agents and periodical revision of package of practices for cardamom and vanilla. Development of technology for improvement of post-harvest practices, infrastructure improvement for production of organic inputs, implementation of collaborative projects with Department of Science & Technology, Department of Biotechnology, Indian Council of Agriculture Research etc. are the other fields of activities.

Board is taking up promotion of Indian Brands of Spices and Spices Products in identified markets abroad by supporting Market Studies, Product & Packaging Development, Identification of Marketing Channels, Listing and Slotting in Super Stores and Retail Stores, Promotional trips abroad, Participation in international fairs for promoting individual brands and Promotional campaigns.

The medicinal, nutritional and

cosmetic values of spices need to be

documented. Product Development/Research need to be taken up with proper clinical trials, evaluation and patenting. Support for these efforts are proposed.

With a view to bring the spice producers in North East and other special areas in the main stream markets, it is proposed to assist entrepreneurs/farmer’s association/NGO’s to set up spice processing/extraction units in these areas.

Board proposes to subscribe to the share capital of prospective spice processing units in North East and in other hill areas promoted or set up by grower’s associations/NGOs to help them in value added exports.

Human Resources Development and works. Regular conduct of in-house training, sending officials and staff to specialised training conducted by other reputed organizations, post harvest training for growers, traders, processors and workers in manufacturing units on hygienic handling of spices and spice products are the major HRD activities. On an average 40,000 personnel is trained under this programme. To improve the efficiency, Board proposes to modernize its field offices with IT gadgets and on-line network. Maintenance of the assets of the Board is another activity under this head. Physical Targets and achievements of Plan Schemes during previous year, current year and targets for 2005-06 are as follows:

Sl. No.

Name of the Scheme Actual 2003-04

Target 2004-05

Achiv. (upto 9/04)

Target 2005-06

A. EXPORT ORIENTED PRODUCTION 1. Productivity improvement of small & large cardamom a). Small cardamom i). Planting, Material Production (Nos. in lakhs) 24.33 20 16.4 20 ii). Replanting (in ha.) 1031.62 650 105.85 1500 iii). Irrigation & Land Development (in ha.) 938.00 570 64.66 1700 b). Large Cardamom i). Planting Material Production (Nos. in lakhs) 9.36 4.25 4.75 8 ii). Replanting (in ha.) 595.10 615 47.10 450

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iii). Irrigation (in ha.) 200 100 - 200 iv) Low Cost Drier -- 50 - 100 v) Processing & Powdering Unit(Nos.) 5 5 - 1 2. Post Harvest Improvement of Spices a) Drying yard (in sq.m.) 67931 19200 8280 34000 b). Polythene Sheets (in Nos.) 26604 23350 - 25000 c). Bamboo Mats (in Nos.) 10000 10000 - 10000 d). Pepper Threshers (in Nos) 22 -- - -- 3. Development of Exotic and High Value Spices a) Vanilla i) Area Expansion (in ha.) 221 1250 400 1500 ii) Curing Units (in Nos) 76 136 - 500 b) Herbal Spices (in ha.) 4.20 30 - 20 c) Paprika (in ha.) -- -- 80 4. Organic Farming/IPM a) Organic Certification (cases ) 3 40 - 14 b) Vermicompost Units 3557 1750 400 3000 c) Paprika like chilli (in ha.) 75 175 174.64 280 d) Organic Spices (in ha.) 90.60 150 10.00 400 e) IPM in chilli (No. of Farmers) 1863 2550 18.31 4000 5. Export Oriented Spices Development in NE States a) Large Cardamom (in ha.) 142.40 250 99.00 440 b) Organic Pepper (in ha.) 10.40 800 30.00 100 c) Herbal Spices (in ha.) -- 20 6.00 30 d) Vermicompost Units 546 1000 12.50 1000 e) Lakadong Turmeric (in ha.) -- 150 33.75 295 f) Ginger (in ha.) 155.90 150 27.50 290 g) Supply of driers (Nos.) -- -- 15.00 -- h) Warehouse/Cold Storage (Nos) -- 3 100.00 3 i) Training of Officers(Nos.) 9 25 5 25 j) Training of Farmers (Nos.) 113 100 5 100 6. Extension Advisory Service (No. of visits/meetings) 18000 15000 537 15000 B. Export Development 1. Adoption of High-Tech and Technology Upgradation a). General Area (Nos.) 22 16 11 24 b) NE/Special Area (Nos.) -- 4 -- 2. Trade Promotion 19 15 7 12 3. International Meeting/Seminars/Trade Fairs (Nos.) 9 14 12 C Export Promotion of Spices 1. Promotion of Indian Brands of Spices & Spices Products

(Nos. -- -- --

2. Product Development & Research -- 2 2 3. Export Oriented Processing of spices in NE/Special Area

(Nos.) -- 1 5

4. Equity Fund (Nos.) -- 1 1 D. Quality Improvement No. of Samples analysed 12147 11000 11000 E. HRD & WORKS 1. Human Resources Development including training of

officers (persons) 42540 40152 40145

( E ) TOBACCO

The Tobacco Board was set up in

1976 with its Head quarter at Guntur under the Tobacco Board Act, 1975 to protect the interests of the tobacco growers and to

promote exports of tobacco. Under the provisions of the Tobacco Cess Act, 1975, customs duty at the rate of 0.5% advalorem on tobacco exported is levied on the exports with effect from 1st January 1976. Excise duty @ one paise per Kg. of

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tobacco sold at auction platforms is also levied from the growers under the Tobacco Cess Act, 1975 with effect from 18th September 1984. These amounts are credited to the Consolidated Fund of India. The Board derives its income by way of registration fees from growers, dealers and exporters and also by way of service charges from buyers & growers @ one percent each on the value of tobacco sold on the auction platforms. (1) Production and Regulation of FCV

tobacco: Flue Cured Virginia tobacco is the

major tobacco variety exported accounting for 70% of the total export and also major type utilized upto 60% by the Domestic Cigarette Industry which is earning about Rs. 8,000 crores per year in the form of Central Excise Duties to the country. The FCV tobacco is grown principally in the states of A.P. 63%, Karnataka 36%, Maharastra and Orissa 1%. Board plans the Flue Cured tobacco crop size every year for Karnataka, A.P. Maharastra and Orissa states. The crop targets fixed for the year 2004-2005 are as follows:- State Target

Q.M. Kgs.

Achievement Q.M. Kgs.

Karnataka 67 60.32* A.P. Maharastra & Orissa

111.06 0.04**

*as on 29.1.05 **as on 20.1.05 • Auction sale are in progress • The normal production of FCV

tobacco in Orissa is around 0.5 m.kgs. and in Maharastra below 0.20 m.kgs.

Export Promotion Measures a). Trade Delegation to Abroad: Tobacco Board proposes to send a tobacco trade delegation for promoting exports to traditional markets and explore new markets for Indian tobacco in African region in the month of March 2005

covering countries Egypt, Algeria, Libya and Morocco. b). Image Building and Promotion:

Board undertakes various activities to build up the image of Indian tobacco and tobacco products in the International Markets through a variety of activities as detailed hereunder; (1). Fairs and Exhibitions Abroad:- Tobacco Board participated in the following fairs/exhibitions during 2004-05 for promotion of Indian Tobacco & Tobacco Products Exports. 1. Saitex, Johannesburg (S. Africa) 2. Zagreb International Autumn Fair,

Croatia 3. Grand Tabak Expo 2004, Moscow 4. World Tobacco Exhibition and

Conference, Kunming, China

The Board also proposes to participate in the following events during the year

ii.Expocomer International Fair, Panama iii.Cairo International Fair, Cairo, Egypt.

(c) Market Survey: Tobacco board proposes to conduct market surveys in African and Middle East regions and CIS countries in the coming three years using services of professional consultants. It also proposes to conduct at least two market surveys for Indian FCV tobacco and non-FCV tobacco during 2005-06.. (a)(d) Delegation from Abroad:

As an export promotion measure the Board is inviting delegations from different countries to enable them to appraise the quality characteristics, supply position and marketing aspects of various types of tobacco grown in India. a A trade delegation from Vietnam visited India in Dec., 2004 and confirmed intention to buy

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around 500 tonnes of tobacco from 2004-05 crop. Delegations from Pakistan and Jordan may visit India before March 2005. (F) MARINE PRODUCTS

The Marine Products Export Development Authority, set up under an Act of Parliament with Head Quarters at Cochin, and 6 Regional and 6 Sub-Regional Offices in the maritime States continued to discharge their export promotional functions under various plan schemes by providing guidance and assistance to the seafood industry.

A separate set of six Regional and four Sub-Regional Centres established in the maritime states and the Training Centre for Aquaculture at Vallarpadom are engaged in Shrimp farming promotional

activities in their respective regions to augment export production of shrimp. The promotional programmes include survey to identify suitable area for Aquaculture, technical assistance to farmers and entrepreneurs in all aspects of Aquaculture starting from site selection till harvest and marketing through preparation of project reports for finance, technical guidance in quality seed procurement, stocking, pond management, input supply, training to entrepreneurs and workers on prawn culture etc. Subsidy assistance for development of new prawn farms and hatchery are also extended. Apart from this, regular farmers meets, trainings and seminars were also arranged. The Authority maintains three trade promotion offices, one each at New Delhi, Tokyo (Japan) and New York (USA).

(Rs. In lakhs)

Programme and Activity Clarification Budget Estimates 2004-2005

Revised Estimates 2004-2005

Budget Estimates 2005-2006

Source of Financing Demand No.12 – Department of Commerce 3453 Foreign Trade and Export Promotion (Major Head)

00.800 Other Expenditure (Minor Head ) 08 Marine Products Export Development Authority

08.01 Payment against collection of Cess 08.01.50 Other Charges 08.01.33 Subsidies Plan 5200.00 4400.00 5400.00 Non- Plan 400.00 133.00 450.00 Financial requirements

Administration and Direction: The Non-Plan provision is for expenditure and pay and allowance of officers and staff of the Authority and other establishment charges of the Authority at Headquarters and the Regional/other offices of the Authority.

Development Schemes I. Export Production: Capture

fisheries. I. Assistance for diversified fishing:- (a) Training camps for crew and Trainers’ Training camp for the crew of mechanized Fishing Vessels:

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Training camps are organized near fishing centers in different region for training of crew on proper operation and optimum utilization of fish finders, Global Positioning System, etc.

During the year 2003-04, 38 training

camps were organised against a target of 65 training camps. Fourteen training camps were organized during the current year upto December 2004 as against the target of 65 training camps.

(b) Assistance for installation of Fish Finders, GPS, Communication sets:

The scheme is operated on a pilot

basis since 1999-2000 for encouraging installation of fish finders, Global Positioning System, Radio telephone and construction of insulated fish hold on board mechanized fishing vessels of length less than 20 M so as to equip them to venture into deeper waters. The scheme is in operation on regular basis from 2000-2001 onwards.

During 2003-04, Rs.83.50 lakh was

disbursed to 310 fishing vessels against a target of Rs.100 lakh for 400 fishing vessels.

During 2004-05 (April -

December), Rs.20.82 lakh was released to 94 fishing vessels against a target of Rs.100 lakh for 400 fishing vessels for installation of GPS, Fish Finder, Radio Telephone, etc.

(c) Scheme to encourage Installation of TED in Shrimp Process:- The scheme is to encourage installation of TED in the trawl nets of the mechanised fishing vessels as a conservation measure, conduct training/demonstration of TED and erect hoardings on TED in the various regions identified by the Expert Committee. The scheme is in operation since 2000-01.

During 2004-05(April-December) 13 training programmes were conducted at various landing centers, on the use of TED. II. Export Production - Culture

Fisheries Overall Performance:

Cultured shrimp production increased substantially in 2003-04 and its share in shrimp exports increased nominally from the previous year. During the year 2003-04, it was estimated that the shrimp/prawn farms produced 1,48,650 MT of shrimp, which was estimated to have contributed 78,713 MT of processed product valued at Rs.3348 crore. This contribution constituted 61% of the total shrimp exports of 1,29,780 MT in terms of volume and 83% of the earnings (Rs.4132 crore) thereof.

During the year 2004-05 the reports received up to November 2004 indicate that the production data would be around 1,19,700 MT. It is anticipated that this year the production would cross the previous year barrier. During the year 2005-06 it is targeted to produce 1,90,000 MT.

a. Promotion of commercial hatcheries

for seed production:

During the current year 2004-05 the Authority has so far provided subsidy assistance to 7 hatcheries upto Nov. 2004 against the target of 21 hatcheries in the private sector.

b. Subsidy assistance for new shrimp/prawn farms:- During 2004-05, the MPEDA has so far assisted 29 beneficiaries from the States of Tamil Nadu, Gujarat and Orissa for developing 244.01 ha. area under shrimp/prawn farming.

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c. Development Assistance for Setting up PCR in Private hatcheries:- To establish PCR labs in hatcheries by private entrepreneurs, financial assistance will be given @ 50% of capital cost, subject to a maximum of Rs.5 lakh per beneficiary / hatchery. During the year 2003-04 an amount of Rs.91.10 lakh was disbursed to 23 hatchery owners / private labs. During the year up to 30.11.2004 an amount of Rs.33.09 lakh was assisted to set up 7 PCR labs. BE for 2005-06 is Rs.100 lakh. d. Training of SC/ST Communities:-

304 SC/ST candidates were trained under 12 training programmes during the year 2003-2004. Six programmes were conducted benefiting 124 beneficiaries during the current financial year 2004-2005 (upto Dec., 2004). 1. Induction of new technology, Modernisation of processing facilities and Development of Infrastructure facilities:- A) Research & Product Development:- Development of new and value added products: a) Samples of fish molly and fried mussel, in retortable pouches, prepared by CIFT were sent to TPO, Tokyo for display in International Fairs. b) Action was taken for setting up of two solar fish drying units with the technical assistance of Planters Energy Net work, as pilot project. The project details were circulated among the processors to ascertain their willingness to set up the units availing the assistance from MPEDA. Two beneficiaries, one each from Visakhapatnam and Paradeep, evinced interest in the project.

c) Arranged a pre-feasibility study in Lakshadweep Islands with two Japanese experts for the preparation of 'katsuobushi' in Lakshadweep itself, envisaging expansion of export market for this item. We have offered our comments on the draft plan proposal prepared by Lakshadweep Administration, for establishing a Katsuobushi processing unit in Lakshadweep, with the technical consultancy from Japan.

The expenditure under this head during the year 2003-04 was Rs.12.06 lakh. Achievements under the scheme during 2004-05, are under: - (a) Follow-up action was taken for setting up of two pilot projects for the establishment of fish drying unit using solar energy with the technical assistance of Planters Energy Net work. (b) Follow-up actions on the pre-feasibility study in Lakshadweep Islands for the preparation of 'katsuobushi' in Lakshadweep island envisaging expansion of export market for this item were taken with Lakshadweep Administration and with the Japanese Experts.

During 2003-04, organised two workshops on value added products at Kolkata and Chennai in association with INFOFISH, Kuala Lumpur. 23 technologists attended the programme at Kolkata and 19 technologists attended the programme at Chennai.

During these training programmes production of about 24 items of value added product was demonstrated.

During the current year, organised

three training programmes on tuna based value added products, one each at Cochin, Chennai and Vizag in association with INFOFISH. Another two training programmes on value added products are

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proposed to be conducted at Cochin and Mumbai in association with INFOFISH. (d) Assistance for setting up of Ornamental Fish breeding units:

The main objective behind the formulation of the scheme is to enhance the domestic production of Ornamental Fishes so as to make it surplus to cater to the needs of the export market.

During 2003-04, 222 units have

been assisted disbursing an assistance of Rs.71.41 lakh. During 2004-05, 69 units has been assisted and an amount of Rs. 19.09 lakhs was disbursed (upto Dec.04). Financial support to CUSAT for their project on “Diseases of Ornamental Fishes”.

The proposal of the Centre for Fish Disease Diagnosis and Management, School of Environmental Studies, CUSAT for funding a three year project on “Diseases of Ornamental Fishes: Aetiology, Disease Management and Development of Biosecurity packages for Exotic species” was approved by the Technical Committee of the Authority at a total cost of Rs.8,59,625/-. During the year 2003-04 an amount of Rs.2.93 lakh was incurred as 1st year contribution. Setting up of Aqua Technology Park for mass production of ornamental fishes. a) In order to provide centralized infrastructure facilities for the mass production of exportable varieties of ornamental fishes a survey was conducted by a team from the Agri-Food and Veterinary Authority (AVA), Singapore and INFOFISH at a site identified at Nedumbassery Airport for developing Aqua Technology Park. The concept plan prepared by the Agri-Food Veterinary Authority (AVA), Singapore, in respect of the proposed aqua park at Cochin, had been forwarded to Cochin International

Airport Ltd. (CIAL). NOC has been obtained from the Airport Authority of India and also from the Ministry of Civil Aviation. b) An agreement has been signed with an Israeli consultant for setting up of four ornamental fish units for mass breeding of ornamental fishes, like guppy and angel fish. III. Quality control & Upgradation

During 2003-2004 two 4-day HACCP (basic) training programmes have been conducted one each at Mumbai and Cochin and 56 participants were trained. A five-day HACCP Audit training was organized in association with INFOFISH and FAO and 26 participants were trained. Two 4-day workshop-cum-training on ‘Seafood HACCP Verification and Audit” was conducted at Veraval and New Mumbai and 36 participants were trained. A one-day seminar in association with US FDA on ‘Sanitation Control’ and ’FDA Product Detention’ was organized at Cochin, which was attended by 34 participants. During 2004-05 so far, 3 HACCP Basic/Audit training programmes were conducted at Cochin, Mangalore and Tuticorin, which were attended by 49 personnel from the seafood plants in the regions. A one-week in-house training programme on HACCP manual scrutiny and compliance verification for Technical Officers/Junior Technical Officers of Regional Offices/Sub Regional Offices was conducted. Two one-day workshops on traceability system for aqua-cultured shrimps were conducted at Bhimavaram (Andhra Pradesh) and Kolkata, which was attended by about 100 personnel. During the first seven months of the current year, 43 HACCP manuals have been scrutinized and 17 certificates of scrutiny and 2 certificates of compliance have been

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issued after inspecting the processing units. Integrated Development Programme for Seafood quality and Extension Services:

As part of the overall development of Seafood Industry for achieving the export target and especially to ensure productivity of safe and quality products for export, MPEDA regularly undertakes training programmes to Fishermen, Pre-processing and Processing workers throughout the coastal regions of the country under the scheme ‘Integrated development programme for seafood quality and extension services’. Up gradation of the landing centres, especially

from the hygienic point of view is of paramount importance to ensure quality products meeting the stringent standards specified by importing countries such as Japan, USA and Europe.

Extension activities include

demonstration-cum-theory training classes with the help of audio-visual equipment, extension literature, folders, pamphlets etc.

During the year 2003-2004, 257

training programmes were conducted along the maritime states and 10810 persons handling fishery products have been trained as detailed below:

Sector No. of Batches No. of Beneficiaries

Fishermen 117 5443 Pre-Processing Workers 87 3487 Processing Workers 53 1880

Total: 257 10810

Extension training programmes – Target for the year 2004-05.

Fishermen Pre-Processors Processors Total

151 114 89 354

Out of the total number of 354

training programmes targeted for the current year, up to 30.11.2004, MPEDA

have conducted 146 batches of training programmes to 6091 beneficiaries as per the details given below: -

Sector No. of Batches No. of Beneficiaries

Fishermen 49 2479 Pre-Processors 55 2141 Processors 42 1471

Total: 146 6091

Flake/chip/tube ice making machine:

The aim of the scheme is to assist seafood processors for installing machines for production of quality ice required for implant use. The rate of assistance is 25% of the cost of the machine, subject to a

maximum of Rs.2.25 lakh. During the year 2003-2004, 24 units were financially assisted with with an amount of Rs.56.14 lakh. During the current year 2004-05 an assistance of Rs.9.16 lakh was extended to 5 beneficiaries (upto 11/04).

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Upgradation of deficient cold storage:

The scheme is aimed at upgrading the efficiency of cold storage so as to maintain the optimum temperature in the cold storage for preservation of seafood. The rate of assistance is 25% for improving insulation and 25% for upgrading diffusers, subject to maximum of Rs.3.5 lakh. During the year 2003-2004, an expenditure of Rs.17.66 lakh was incurred for assisting 7 units under the scheme. During the current year 2004-05 an amount of Rs.6.77 lakh was disbursed to 2 beneficiaries (upto 11/04). Distribution of Insulated Fish Boxes: The scheme is intended for assisting the owners of processing plants, peeling sheds, shrimp farmers, mechanised fishing boat operators, fisherman, exporters etc. to purchase insulated fish boxes for proper preservation of raw materials. The scheme envisages distribution of moulded synthetic Insulated Fish Boxes of various capacities to above categories of beneficiaries at 50% assistance. During the year 2003-2004, an amount of Rs.40.28 lakh was incurred for assisting 118 beneficiaries under the scheme. During the current year 2004-05 expenditure was Rs.30.67 lakh incurred for assisting 111 beneficiaries (upto 11/04). Installation of generating sets: The objective of the scheme is to assist seafood-processing units to have captive power as a stand by arrangement in the plant. The quantum of assistance to be given to a unit is 25% of the cost of generator set or Rs.2.50 lakh whichever is less. During the year 2003-2004 a financial assistance of Rs.23.16 lakh was extended to 14 plants owners. During the current year 2004-05 expenditure was Rs.2.50 lakh disbursed to one beneficiary (upto 11/04).

Chill Room: Assistance under the scheme is extended @ 25% of the cost of establishment of Chill Room facility subject to a maximum of Rs.3.00 lakh per Room. The assistance would be available for a maximum of two chill rooms in a plant. During the year 2003-04 seventeen units were assisted with an amount of Rs.38.30 lakh. During the current year 2004-05, 3 units were assisted with a subsidy of Rs.4.37 lakh. (upto 11/04).

Support for acquisition of Refrigerated Containers:

The objective of the scheme is to provide assistance to seafood processing units for procurement of refrigerated containers, which will help improve the quality of the raw material. The scheme, as approved by the Ministry, provides for grant of subsidy @ 25% of the investment subject to a maximum of Rs.3.50 lakh. During the year 2003-2004 an amount of Rs.11.67 lakh was given to 4 units. During the year 2004-05 an amount of Rs.3.50 lakh was given to one beneficiary (upto 11/04).

IV. Market promotion MPEDA implements a number of activities for promotion of exports of marine products from the country. The following activities are in progress:- (1) Development assistance for export of

aquarium/ornamental fish (2) Part reimbursement of cost of air

freighting of live Marine Products. (3) Insurance for workers employed in

Fish Processing Units. (4) Sales teams/delegations, buyer seller

meets abroad, invitation to overseas buyers, visit of foreign experts to India etc.

(5) Participation in Trade Fairs in India and abroad including organisation of

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Indian seafood festival Overseas through reputed Restaurant Chains;

(6) External and domestic advertisements (7) Logo promotion (G) AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORT DEVELOPMENT AUTHORITY As contemplated in the APEDA Act, APEDA is responsible for development and promotion of exports of agricultural and processed food products. The expenditure of the Authority on administration and Developmental Schemes is financed through collection of cess on export of scheduled products. The cess so collected is credited to the Consolidated Fund of India and such sums

as may be voted by Parliament, are released for meeting the expenditure of the Authority. The cess collection during the last five year are as under:-

(Rs. in crores) Year Total

Export Cess

1999-2000 5575 27.88 2000-2001 6593 32.97 2001-2002 6881 34.41 2002-2003 9914 49.57 2003-2004 - 55.15 The statement showing financial requirement and source of financing is given below:-

(Rupees in lakhs) Programme and Activity Classification Budget

Estimates 2004-05

Revised Estimates 2004-05

Budget Estimates 2005-06

Source of financing Demand No.12-Department of Commerce Major Head “3453” Other Expenditure: Agricultural and Processed Food Products Export Development Authority

Subsidy (Plan) 5300.00 4500.00 5500.00 Grant-in-aid (Non-Plan) 200.00 65.00 1. Explanation of Financial Requirements Administration The Non-Plan provision is meant for expenditure on salaries and allowances, T.A. advances etc. to officers and staff of the Authority, rentals, office expenses like stationery, printing, telephone, telex purchase and maintenance of furniture and fittings, maintenance of vehicles etc. Major Achievements Agri Export Zones

The policy for setting up of such Agri Export Zones was announced by the Govt. on the 31st March 2001 with the primary objective of boosting agri exports. The concept of Agri Export Zone attempts to take a comprehensive look at a particular produce/products located in a contiguous area for the purpose of developing and sourcing the raw materials, their processing/packaging, leading to final exports. Thus, the entire effort is centered around a cluster approach of identifying the potential products, the geographical region in which these are grown and adopting an end to end approach of integrating the entire process, right from

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the stage of production till it reaches the market. The anticipated benefits to accrue such zones are as follows:- i) Strengthening of backward linkages. ii) Product acceptability and its competitiveness abroad as well as in the domestic market. iii) Value addition to basic agricultural produce. iv) Cut down cost of production through economy of scale . v) Better price for agricultural produce. vi) Improvement in product quality and packaging. vii) Promote trade related research and development. viii) Increased employment opportunities.

APEDA was appointed as the

nodal agency by the Central Government to promote setting up of Agri Export Zones.

Promotion of agricultural export is important for creating conditions for providing remunerative prices to farm produce. For this purpose Agri Export Zones are being promoted in different states and 60 such zones have been approved so far. APEDA will catalyze development of infrastructure and flow of credit to the units in these Agri Export Zones”.

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STATEMENT OF ACTUAL INVESTMENT AND EXPORTS FROM SANCTIONED 60 AGRI EXPORT ZONES S No

State AEZ Project State and Districts Actual Exports

Sanctioned Amount by CG/SG but not released

Actual assistance released and actual Investment made by Parties

(Rs. Cr.)

(Rs. Cr.) (Rs. Cr.)

1 West Bengal

Pineapple West Bengal (Darjeeling, Uttar Dinajpur, Cooch Behar and Jalpaiguri 0.00 0.04 22.15

Lychee West Bengal (Districts of Murshidabad Malda, 24 Pargana (N) and 24 Pargana(s)

0.62 0.72 0.21

Potatoes West Bengal (Districts of Hoogly, Burdwan, Midnapore (W) Uday Narayanpur and Howrah)

0.58 0.06 0.09

Mango W. Bengal (Malda and Murshidabad) 20.00 3.28 0.18 Vegetables W Bengal (Nadia, Murshidabad) and North 24 Parganas 4.48 0.00 10.00 Darjeeling

Tea West Bengal (Darjeeling) 0.00 0.00 0.00

Sub total 25.68 4.10 32.63 2 Karnataka Gherkins Karnataka (Tumkur, Bangalore Urban Bangalore, Rural, Hassan, Kolar,

Chitradurga, Dharwad and Bagalkot) 470.94 0.23 11.22

Rose Onion Karnataka (Bangalore Urban Bangalore (Rural), Kolar

125.94 0.00 0.13

Flowers Karnataka (Bangalore(Urban) Bangalore(Rural), Kolar, Tumkur, Kodagu and Belgaum

10.00 3.57 0.00

Vanilla Karnataka (Districts of Dakshin Kannada, Uttara Kannada, Udupi, Shimoga, Kodagu, Chickamagalur)

0.00 0.00 0.00

Sub total 606.88 3.80 11.35 3 Uttranchal Lychee Uttranchal (Udhamsingh Nagar, Nainital and Dehradun) 2.13 1.95 1.77

Flowers Uttranchal (Districts of Dehradun, Pantnagar) 0.04 0.19 0.00 Basmati rice Uttranchal (Districts of Udham Singh Nagar, Nainital, Dehradun and

Haridwar) 0.00 0.00 0.00

Medicinal & Aromatic Plants

Uttaranchal (Districts of Uttarkashi, Chamoli, Pithoragarh, Dehradun and Nainital)

0.00 0.00 0.00

Sub total 2.17 2.14 1.77

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4 Punjab Vegetables Punjab (Fatehgarh Sahib, Patiala, Sangrur, Ropar and Ludhiana) 0.55 2.50 33.00

Potatoes Punjab (Singhpura Zirakpur (Patiala) Rampura Phul, Muktsar, Ludhiana, Jullunder

0.30 2.75 1.22

Basmati Rice Punjab (Districts of Gurdaspur, Amritsar, Kapurthala, Jalandhar, Hoshiarpur and Nawanshahar)

0.00 1.86 0.47

Sub total 0.85 7.11 34.69 5 Uttar

Pradesh Potatoes Uttar Pradesh (Agra, Hathras, Farrukhabad, Kannoj, Meerut, Aligarh and

Bagpat) 1.24 0.00 0.09

Mangoes and Vegetables

Uttar Pradesh (Lucknow, Unnao, Hardoi, Sitapur and Barabanki) 0.35 0.30 2.79

Mangoes Uttar Pradesh (Saharanpur, Muzzfarnagar, Bijnaur, Meerut, Bhagpat and Bulandshahar)

1.41 0.00 2.25

Basmati Rice Uttar Pradesh (Districts of Bareilly, Shahajahanpur, Pilibhit, Rampur, Badaun, Bijnor, Moradabad, J B Phulenagar, Saharanpur, Mujjafarnagar, Meerut, Bulandshahar, Ghaziabad)

0.00 0.00 0.47

Sub total 3.00 0.30 5.60 6 Maharashtra Grape and

grapewine Maharashtra (Nasik, Sanghli, Pune, Satara, Ahmednagar and Sholapur) 202.00 4.00 2.00

Mango Maharashtra (Districts of Ratnagiri, Sindhudurg, Raigarh and Thane) 123.00 18.31 18.55 Kesar Mango Maharashtra (Districts of Aurangabad, Beed, Jalna, Ahmednagar and

Latur) 12.17 1.93 0.55

Flowers Maharashtra (Pune, Nasik, Kolhapur and Sangli) 0.00 5.00 0.00 Onions Maharashtra (Districts of Nasik, Ahmednagar, Pune, Satara, Jalgaon and

Solapur) 588.00 19.60 7.16

Pomegranate Districts of Solapur, Sangli, Ahmednagar, Pune, Nasik, Osmanabad & Latur

10.50 0.00 0.00

Banana Jalgaon, Dhule, Nandurbar, Buldhana, Parbhani, Hindoli, Nanded and Wardha

0.00 0.00 0.00

Oranges Nagpur and Amraoti 0.00 0.00 0.00 Sub total 935.67 48.84 28.26

7 Andhra Pradesh

Mango Pulp & Fresh Veg.

Andhra Pradesh (Chittoor District) 141.84 1.11 29.61

Mango and Grapes

Andhra Pradesh (Districts of Rangareddy, Medak and Parts of Mahaboobnagar Districts)

17.70 0.00 12.74

Mango Andhra Pradesh (Krishna District) 2.75 0.00 2.65 Gherkins Andhra Pradesh (Districts of Mahboobnagar, Rangareddy, Medak, 29.50 0.00 14.02

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Karimnagar, Warangal, Ananthapur and Nalgonda) Chilli Guntur 0.00 0.00 0.00 Sub total 191.79 1.11 59.02

8 Jammu & Kashmir

Apple Jammu and Kashmir (Districts of Srinagar, Baramula, Anantnag, Kupwara, Badgaum and Pulwama)

4.80 3.88 0.00

Walnuts Jammu & Kashmir Region- Baramulla, Anantnag, Pulwama, Budgam, Kupwara and Srinagar) (Jammu Region - Doda, Poonch, Udhampur, Rajouri and Kathua)

121.00 0.00 2.43

Sub total 125.80 3.88 2.43 9 Tripura Organic

pineapple Tripura (Kumarghat, Manu, Melaghar, Matabari and Kakraban Blocks 0.00 7.00 0.62

Sub total 0.00 7.00 0.62 10 Madhya

Pradesh Potatoes Onion Garlic

Madhya Pradesh (Malwa, Ujjain, Indore, Dewas, Dhar, Shajajpur, Ratlam, Neemuch and Mandsaur)

2.42 14.01 0.29

Seed Spices Madhya Pradesh (Districts of Guna, Mandsaur, Ujjain, Rajgarh, Ratlam, Shajapur and Neemuch)

14.43 0.00 1.20

Wheat Madhya Pradesh (Three distinct and contiguous zones :- Ujjain Zone comprising of Neemach, Ratlam, Mandsaur and Ujjain Indore Zone comprising of Indore, Dhar, Shajapur and Dewas Bhopal Division, comprising of Sehore, Vidisha, Raisen, Hoshangabad, Harda, Narsinghpur and Bhopal

0.00 0.00 0.04

Lentil and Grams

Shivpuri, Guna, Vidisha, Raisen, Narsinghpura, Chhindwara 0.00 0.00 0.00

Oranges Chhindwara. Hosanagabad. Betul 0.00 0.00 0.00 Sub total 16.85 14.01 1.53

11 Tamil Nadu

Flower Tamil Nadu (Dharmapuri) 0.50 14.42 8.05

Flowers Tamil Nadu (Nilgiri District) 0.10 0.00 2.54 Mangoes Tamil Nadu (Districts of Madurai, Theni, Dindigul, Virudhunagar and

Tirunelveli) 0.00 0.00 1.20

Cashewnut Cuddalore, Thanjavur, Pudukottai and Sivaganga 0.00 0.00 0.00 Sub total 0.60 14.42 11.79

12 Bihar Lychee, Vegetables & Honey

Bihar (Muzaffarpur, Samastipur, Hajipur, Vaishali, East and West Champaran, Bhagalpur, Begulsarai, Khagaria, Sitamarhi, Saran and Gopalganj)

4.00 0.00 0.71

Sub total 4.00 0.00 0.71

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13 Gujarat Mango and Vegetables

Gujarat (Districts of Ahmedabad, Kheda, Anand, Vadodra, Surat, Navsari, Valsad, Bharuch and Narmada)

1.65 5.10 0.67

Value Added Onion

Gujarat (Districts of Bhavnagar, Surendranagar, Amreli, Rajkot, Junagadh and Jamnagar Districts)

93.42 0.00 0.17

Sesame Seeds Amreli, Bhavnagar, Surendranagar, Rajkot, Jamnagar 0.00 0.00 0.00 Sub total 95.07 5.10 0.84

14 Sikkim Flowers (Orchids) and Cherry Pepper

Sikkim (East Sikkim) 0.00 0.20 0.95

Ginger Sikkim (North, East, South & West Sikkim) 0.00 0.00 0.00 Sub total 0.00 0.20 0.95

15 Himachal Pradesh

Apples Himachal Pradesh (Shimla, Sirmour, Kullu, Mandi, Chamba and Kinnaur) 0.00 0.00 0.00

Sub total 0.00 0.00 0.00 16 Orissa Ginger and

Turmeric Orissa (Kandhamal District) 4.08 0.00 0.00

Sub total 4.08 0.00 0.00 17 Jharkhand Vegetables Jharkhand (Ranchi, Hazaribagh and Lohardaga) 0.00 0.00 0.00

Sub total 0.00 0.00 0.00 18 Kerala Horticulture

Products Kerala (Districts of Thrissur, Ernakulam, Kottayaam, Alappuzha, Pathanumthitta, Kollam, Thiruvanthapuram, Idukki and Palakkad)

95.00 0.00 5.06

Medicinal Plant

Wayanad, Mallapuram, Palakkad, Thrissur, Ernakulam, Idukki, Kollam, Pathanamittha, Thiruvananthapuram

0.00 0.00 0.00

Sub total 95.00 0.00 5.06 19 Assam Fresh &

Processed Ginger

Assam (Kamrup, Nalbari, Barpeta, Darrang, Nagaon, Morigaon, Karbi Anglong and North Cachar districts)

0.00 0.00 0.00

Sub total 0.00 0.00 0.00 20 Rajasthan Coriander Kota, Bundi, Baran, Jhalawar & Chittoor 0.00 0.00 0.00

Cumin Nagaur, Barmer, Jalore, Pali and Jodhpur 0.00 0.00 0.00 Sub total 0.00 0.00 0.00 TOTAL

2107.00 112.00 197.30

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III. Services for Exports Quality Control and Pre-shipment Inspection. In order to enable the Export Inspection Council to discharge its functions, under the Act, the Central Government after due

appropriation made by the Parliament by law in this behalf, pays to the Council such sums of money as the Government considers necessary by way of grants or otherwise. Financial Requirements

(Rs. in lakhs)Programme and Activity classification Budget

Estimates 2004-2005

Revised Estimates 2004-2005

Budget Estimates 2005-2006

Demand No.12 - Department of Commerce

Major Head “3453” Quality Control of Exports Grants-in-aid to Export Inspection Council (Non-Plan)

242.00 242.00 240.00

Plan 400.00 400.00 589.00

The above budget provision represents the administrative expenditure of the Export Inspection Council which advises the Government regarding measures for enforcing quality control and inspection in respect of commodities intended for export and to draw up programme therefor, and to perform such other activities as may be assigned under

the Act for matters connected therein for quality control and inspection. IV. Indian Institute of Foreign

Trade.

IIFT''s Plan and Non-Plan budget is as under:-

(Rs. in lakhs) Programme & Activity classification Budget

Estimates 2004-05

Revised Estimates 2004-05

Budget Estimates 2005-06

Demand No. 12 - Deptt. of Commerce MH - 3453 - Grant-in-aid to IIFT (NP) 175.00 100.00 100.00 MH-3453 Foreign Trade & Export Promotion (Plan) 735.00 385.00 203.00

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The provision is for construction of Hostel, upgradation of existing computer centre and Training and Research Facilities.

V. Foreign Trade Control There are 31 Regional Import & Export Offices under the Directorate General of Foreign Trade. The Regional Offices are at Ahmedabad, Amritsar, Bangalore, Bhopal, Mumbai, Kolkatta, Chandigarh, Coimbatore, Cuttack, Kochi,

Gandhidham, Guwahati, Hyderabad, Jaipur, Panjim (Goa), Patna, Panipat, Pondicherry, Pune, Rajkot, Shillong, Jammu, Varanasi, Visakhapatnam, Chennai, , Kanpur, Ludhiana, Moradabad, Madurai New Delhi and Vadodra. Financial Requirements A statement showing financial requirements and source of financing them is as under:-(Rs. in lakhs)

Programme & Activity classification Budget Estimates 2004-05

Revised Estimates 2004-05

Budget Estimates 2005-06

(i) Administration Direction (ii) Source of Financing: Demand No12-Department of Commerce Major Head “3453” Foreign Trade and Export Promotion Foreign Trade Control (Non-Plan) 4050.00 3900.00 4097.00 (Plan) 500.00 300.00 400.00 Total 4550.00 4200.00 4497.00

The budget provision of this organisation represents the administrative expenditure of the DGFT and its Regional Offices. This Directorate also realizes receipts from Import & Export application fees. The receipts realised during the last 6 years are as under:-

(Rupees in lakhs) Year Receipts realised

from import licence fees

2000-2001 11372.55 2001-2002 11048.32 2002-2003 12288.26 2003-2004 10823.71 2004-2005 (upto 12/04)

10297.93

No. of Import Licenses Applications:

The number of import license applications handled by the Directorate General of Foreign Trade during last five years is as under:-

Year No. of imports

licenses applications

2001-2002 243244 2002-2003 299089 2003-2004 367116 2004-2005 (upto 12/04)

308358

No. of import licenses issued: Year Number

(actual) Value (Rs. in crores)

2001-2002 175,637 59,400.00 2002-2003 195,746 58,947.00 2003-2004 221,858 89,159.00 2004-2005 (upto12/04)

166,157 98,466.00

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CHAPTER VI

Programmes for SCP/TSP

The commodity Boards under the administrative control of the Ministry of Commerce have certain schemes under Special Tribal Plans. The brief of the schemes are as under:-

1. Rubber Board:- (i). Rubber Plantation Project for Tribal Settlement (Board’s share for SCP/TSP/Block Plantation)

Board is taking up Rubber Plantation in Tribal areas with the participation of the State Governments for the economic upliftment of Tribal Settlements. Under this concept, suitable tribal areas are identified. The planting and cultural operations upto maturity are done by the Board on scientific lines, and later these plantations are handed over to the tribal beneficiaries to have a sustainable income for living. The achievements made during the 9th plan and 10th Plan period so far are as follows: Year Achievement Beneficiaries 9th Plan : 1997-98 328 ha 880 (nos.) 1998-99 285 ha 849 1999-00 210 ha 565 2000-01 194 ha 572 2001-02 10 ha 37 !0th Plan : 2002-03 183 ha. 175 2003-04 100 ha. 155 The target for 2004-05 and 2005-06 are given below: 2004-05 2005-06 Target 30 ha. 250 ha. Achievement 55.34ha. 250 ha. Beneficiaries 172 * 250*

* expected

Group / Block plantations:

Board has changed its strategy of individual approach to a group approach among the rubber growers. Accordingly, Block Planting Projects were taken up with the active participation of State Governments and the beneficiaries. The achievements during the 9th plan and the first year of the 10th Plan period are as follows: 1997 –98 35.41 ha 1998 –99 64.47 ha 1999- 00 90.00 ha 2000 –01 134.00 ha 2001 –02 72.00 ha 2002-03 50.00 ha. 2003-04 50.00 ha. Proposal for Block Planting Project for the year 2004-05 and 2005-06 are as follows: 2004-05 50.00 ha 2005-06 50.00 ha

2. Tea Board:- Tea Plantation Development Scheme:-

Productivity improvement through replanting, rejuvenation pruning and consolidation through infilling of vacancies, improvement of drainage and creation of irrigation facilities, special focus on small tea gardens for enhancing productivity and quality, new planting in small growers sector in traditional and non traditional area, intensive mechanized pruning in small holdings, setting up of pilot tea producers societies, etc. The financial package offered by the scheme

99

include subsidy @ 25% of the unit cost as approved by NABARD.

3. Spices Board :- Tribal Development Programme:- Spices Board is offering some additional incentives to tribal cardamom growers for taking up various developmental programmes implemented by the Board. Because of the recent Supreme Court order it has become very difficult to extend support to tribal growers as they are not holding valid patta or lease document for the land they are cultivating cardamom. A sizeable number of large cardamom growers in the State of Sikkim are from Scheduled Tribes. Board is implementing a number of developmental programmes for increasing production and productivity of large cardamom. 4. Coffee Board SPECIAL AREA PROGRAMME FOR NORTH EASTERN REGION & OTHER TRIBAL SECTOR. Objectives: • Promote coffee development as an

economically viable activity among the tribal sector of NE Region, Andhra & Orissa by discouraging them from shifting cultivation.

• Provide financial support to the Tribal sector for coffee cultivation, processing and marketing in NE Region and Non-Traditional Area (NTA).

• Provide technical support through research, training, demonstrations, workshops/seminars and transfer of technology.

Schedule of activities: North East Region:

• Consolidation –1088 ha. (@Rs. 9000/ha. as 1st instalment).

• Expansion – 325 ha. (@ 9000/ha. as 1st instalment)

• Group Plantation – 70 ha. • Market support – 100 MT of coffee. • Market promotion compaigns/roasting

and grinding units/quality upgradation (mini curing works in Mizoram/Retail outlets) in NE Region.

• Research programmes at RCRS, Diphu.

• Maintenance of Research Farms/Technology Evaluation Centres.

Non-Traditional Areas: • Consolidation scheme in Andhra

Pradesh – 1000 ha. (@ Rs. 5000/ha. as one time subsidy)

• Expansion of coffee in Orissa – 250 ha. (@ Rs. 4500/per ha. as 1st instalment).

• Quality upgradation –Baby Pulpers – 200 units, Community centres – 20 nos. and Community pulpers – 10 nos.

• Training programme/study tour for tribal growers.

• Maintenance of Research Farms/TECs.

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Department of Commerce Tribal Sub-Plan-Financial

(Rs. In crores) Sl. No.

Sector/Sub-Sector Annual Plan 2002-03 Actual

Annual Plan 2003-04 Actual

Annual Plan 2004-05 Anticipated

Annual Plan 2004-05 Anticipated

Agriculture Sector Total outlay

Flow to TSP Total outlay

Flow to TSP Total outlay Flow to TSP

Total outlay

Flow to TSP

1 Spices Board* 15.67 0.37 23.21 0.49 25.00 0.60 30.00 0.65 2. Rubber Board 71.28 3.54 83.54 4.35 90.00 5.15 95.00 6.33 3. Tea Board 56.32 5.48 65.00 4.32 70.00 3.70 4. Tobacco Board 0.80 0.01 2.59 0.04 -- -- Tribal Sub Plan – Physical Achievement Sl. No.

Sector/Sub-Sector Unit Annual Plan 2002-03

Annual Plan 2003-04

Annual Plan 2004-05

Annual Plan 2005-06

1. Spices Programme: Export Oriented Production

Large Cardamom: 7.33 lakh planting material, 450 ha. Replanting, 200 ha. Irrigation, 10 driers.

Large Cardamom: 9.36 lakh planting material, 595 ha. Replanting, 100 ha. Irrigation, 5 driers.

Large Cardamom: 4.25 lakh planting material, 615 ha. Replanting, 200 ha. Irrigation.

Large Cardamom: 8.00 lakh planting material, 450 ha. Replanting, 200 ha. Irrigation, 50 driers.5 processing units

2. Rubber Board: TSP Number of Beneficiaries

Nos. 1200 1450 1700 1950

3. Tea Board: Agriculture & Allied Sector

HA 498.97 500 500

101

ANNUAL PLAN 2004-05: SPECIAL COMPONENT PLAN – FINANCIAL OUTLAYS

(RS. IN LAKHS) Sl. No

Sector/ Sub-Sector

Tenth Plan (2002-07) Annual Plan 2002-2003 (Actual)

Annual Plan 2003-2004 (Actual)

Annual Plan 2004-05 (Anticipated)

Annual Plan 2005-06 Proposed

Total outlay

Flow to T.S.P.

Total outlay

Flow to T.S.P.

Total outlay

Flow to T.S.P. Total outlay

Flow to T.S.P.

Total outlay

Flow to T.S.P.

1 2 3 4 5 6 7 8 9 10 11 12 1. Spices Board

Tribal Development

14000.00 770.00 1596.00 167.00 2321.00 1.30 2500.00 140.00 300.00 204.00

2. Tobacco Board 58.80 3.35 13.00 0.75 121.50 8.65 91.00 3. Rubber Board 41500.00 90.83 8408.00 24.00 8354.00 40.00 9000.00 40.00 9500.00 40.00

ANNUAL PLAN 2004-2005: SPECIAL COMPONENT PLAN – PHYSICAL ACHIEVEMENTS

Sl. No.

Sector/ Sub-Sector

Unit Tenth Plan 2002-2007 Target

Annual Plan 2002-03 Actual

Annual Plan 2003-2004 Anticipated

Annual Plan 2004-05 anticipated

Annual Plan 2005-06 target

1 2 3 4 5 6 7 8

1. Spices Export Oriented Production

Production of 10 lakh cardamom seedlings; 2.5 lakh suckers, replanting 250 ha. and irrgation in 200 ha.

Production of 2.00 lakh cardamom seedlings, replanting 85 ha. And irrigation 55 ha.

Production of 2.00 lakh cardamom seedlings, replanting in 650 ha. irrigation in 65 ha.

Production of 2.00 lakh cardamom seedlings, replanting in 65 ha. irrigation in 57 ha.

Production of 2.00 lakh cardamom seedlings, replanting in 150 ha. irrigation in 170 ha.

2. Rubber Board Nos. 25 50 50 50

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Chapter VII

GENDER BUDGETING

A new initiative – Gender Budgeting – was taken up in the Department as per the guidelines received from the Finance Ministry. Since the schemes and programs supported by the Department have export promotion focus, the same were being implemented without any exclusive gender focus. As such allocations of funds, setting targets and monitoring the programme implementation were not designed to capture any gender specific information so far. However, few schemes such as “Extra income generation – Apiculture have a large component for women. Furthermore, some components of the schemes particularly in plantation & fisheries sectors also have gender specific benefit. However, such schemes are so far

not subjected to gender oriented monitoring. Going forward, as the first step the Department has established a Gender Budget Cell in the Department serviced by the Budget Division. This cell has identified beneficiary oriented schemes that have potential for targeting women beneficiaries to a significant extent. All the implementing agencies, in consultation with the newly created cell in the Budget Division, are being encouraged to devise appropriate mechanism to target, and monitor the flow of benefit to women under various schemes as part of 2005-06 action plan.

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CHAPTER VIII

PUBLIC SECTOR UNDERTAKINGS The overall performance and the

financial highlights of the Public Sector enterprises mentioned in para 4 of the Chapter I are given below: 1. The State Trading Corporation of India Ltd. The State Trading Corporation of India was incorporated on 18th May, 1956 as

Government Company under the Companies Act, 1956. STC is engaged in export, import and domestic sales of large number of commodities. The highlights of the operational and financial results of the corporation during 2003-04 and 2004-05 (up to 11/2004) and projections for 2005-2006 are given below:

(Rs. in crores) Turnover 2003-04 2004-05 2005-06 actual Budget Provisional

April-Nov. 04 Estimates Full Year

Projection

Exports 1192 800 313 600 850 Imports 6978 5830 5259 6125 6300 Domestic 179 120 255 275 350 Total Turnover 8349 6750 5827 7000 7500 Profits 26 14 21 32 30

Estimates: 2004-2005 Turnover The Corporation’s exports are estimated to amount to Rs.600 crore during 2004-05 as against the full year MOU target Rs.800 crore. Despite change in the Govt. policy, the Corporation has been able to effect food grains exports of Rs. 272 crore till November 2004. In a significant move, STC has also been able to export chemicals, drugs and disposables worth Rs.30 crore during the current year so far. The total exports of STC have thus amounted to Rs.313 crore during April-November’04. The import sales by STC are estimated to be higher at Rs.6125 crore than the full year MOU target of Rs.5830 crore. The major share of import turnover is contributed by bullion. Till November’04, the Corporation has already effected import sales of bullion amounting to

Rs.3600 crore. Total import sales of the Corporation have reached the level of Rs.5200 crore during April-November’04. The Corporation is estimated to register all time high domestic sales of Rs.275 crore during 2004-05 – 2.3 times the full year MOU target of Rs.120 crore and 54% higher than domestic sales of Rs.179 crore effected during 2003-04. Major items contributing to the record domestic sales are hydro-carbons, metals, jute, pulses and edible oils. Domestic sales worth Rs255 crore have already been effected by the Corporation during the current financial year upto November’04. Profit Before Tax The profit before tax (PBT) of the Corporation is estimated to increase significantly from Rs.26 crore in 2003-04 to Rs.32 crore during 2004-05. The increase in profit is likely to be achieved

104

despite overall trade business being affected during the year due to change in the Govt. policies relating to food grains and bullion. PROJECTIONS : 2005-06 Turnover The total turnover of the Corporation is projected to go up by 7% from an estimated Rs.7000 crore during 2003-05 to Rs.7500 crore during 2005-06. Significant increases have been planned to be achieved in all the three segments of trade viz. exports, imports and domestic sales. Exports by STC have been projected to increase by 42% so as to reach Rs.850 crore during 2005-06 as against exports of Rs.600 crore estimated to be achieved during 2004-05. This is planned to be achieved by laying renewed emphasis on existing areas as also by diversifying into other areas of business. The import turnover of the Corporation has been projected to go up from Rs.6125 crore estimated during 2004-05 to Rs.6300 crore during 2005-06. The Corporation plans to give an added impetus to its import activities in the fields of hydro-carbons, fertilisers minerals and metals besides undertaking larger volume of business of edible oils.

The Corporation plans to further increase its domestic sales, which have also been projected higher at Rs.350 crore during 2005-06. Profit Before Tax

The Corporation has projected a profit before tax (PBT) of Rs.30 crore for 2005-06. 2. Minerals and Metals Trading Corporation of India Ltd. The Minerals and Metals Trading Corporation of India Limited was incorporated in 1963 after bifurcation of State Trading Corporation of India. The main objective of the Corporation is to emerge as a leading International Trading House operating in the competitive global trading environment. The Corporation exports minerals and other non-canalised items and also imports commodities like metals, fertilizers, industrial raw materials etc. which the Government has entrusted from time to time. Over the years with the expansion and diversification of its trade, MMTC has grown into India’s leading Company in the field of International Trade. The trading activities, financial highlights for 2003-2004, 2004-05 are as under:-

(Value Rs. in crores) Actuals

2003-04 MOU 2004-05

Actuals upto 11/04 (Provional)

Likely performance (2004-05)

TRADE PERFORMANCE (Turnover)

Exports 1891.20 1500.00 1669.46 2400.00 Non-Canalised 664.87 585.00 518.14 702.00 Canalised 1226.33 915.00 1151.32 1698.00 Imports 6678.64 4640.00 7892.70 9550.00 Non-Canalised 6678.64 4640.00 7631.94 9250.00 Canalised 260.76 300.00 Domestic 529.35 710.00 445.61 550.00 Total 9099.19 6850.00 10007.77 12500.00

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Summarised statement showing gross & net profit

Trading profit 162.37 115.00 157.97 197.00

Other Income 34.99 15.00 12.19 17.00

Interest earned 31.96 20.00 34.71 42.00

Total Income 229.32 150.00 204.87 256.00

Estt. Expenses 68.96 61.00 44.87 64.00

VRS/DRE EXP/. 9.53 7.50 5.51 10.00

Admin. Overheads 22.52 31.00 20.93 28.00

Debts/claims written off 0.95 - 6.68 6.68

Interest. Paid 25.12 12.67 19.59 24.00

Depreciation 4.30 4.00 2.50 4.00

Provision for doubtful debts/ADV. 7.64 4.00 8.96 14.00

Provision for diminution in value of investment/W.I.P

6.26 - - -

prior period adjustment 3.94 - (0.04) (0.06)

Total overhead 149.22 120.17 109.00 150.62 Profit before tax 80.10 29.83 95.87 105.38

Provision for taxation/Previous year tax adjustment

29.48 2.33 27.00 31.60

Profit after tax 50.62 27.50 68.87 73.78

Dividend 12.50 - - 10.00

Tax on dividend 1.60 - - 1.31

Equity 50.00 50.00 50.00 50.00

Reserve 621.87 649.37 690.74 695.65

Net worth 655.00 668.00 723.87 728.78

Overhead as % of sales 1.01 1.34 0.66 0.74

Trading profit as % of sales 1.78 1.68 1.58 1.58

A. SEGMENT WISE PERFORMANCE i. Exports Company achieved second highest ever export turnover of Rs. 1891 cr. during the year 2003-04. Mineral exports were to the tune of Rs. 1419 cr. as against Rs. 1245 cr. during the previous year registering a growth of 14%. Precious metal group has achieved a growth of nearly 7 times and General Trade group has registered a growth of nearly 15 times over previous year. ii. Imports Company recorded the highest ever import turnover of Rs. 6679 crs. registering a growth of 79% over the import turnover of

Rs. 3732 crs. achieved during the preceding year. This achievement became possible due to over all growth in all core commodity groups of MMTC e.g. growth of 282% in Fertilizers, 78% in Precious Metals, 67% in General Trade, 60% in the Coal & Hydro Carbon products, 40% in Agro products & 37% in Metal products over preceding year 2002-03. iii. Domestic Under domestic trade company achieved highest ever turnover of Rs. 529 crs. registering a growth of nearly 235% over the preceding year. Major factor, which contributed to this impressive growth, was higher sale of Pig Iron, SANCHI brand sterling silverware and gold and silver medallions.

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B. PROFITABILITY Company improved the operating margins by higher value addition, greater focus on business offerings, better inventory management, continued cost reduction and improvement in productivity. All these factors resulted in profit before tax of Rs. 80 cr., 124% higher than the previous year. Profit after tax at Rs. 51 crs. generated during 2003-04, registered a growth of 102% over the preceding year. 2. OUTLOOK 2004-05 With the strong business base that can respond to agility to changes in its operating environment and the drive to strengthen the core business and adding new ones is yielding results during the year 2004-05. First time in the history of the company turnover during the period April-November 2004 crossed Rs. 10000 crs. mark as against proportionate MOU target of Rs. 4338 crs. – 231% achievement of MOU. Performance during same period is 108% higher than the turnover of Rs. 4818 crs. achieved during the same period last year.

• Export turnover at Rs. 1669 crs. as against MOU target of Rs. 950 cr. for the April-November period – 176% achievement. Export is 78% higher than achieved during the same period last year.

• Import during the same period stood at Rs. 7893 crs. and has achieved 269% of MOU proportionate target and was 124% higher than the performance in the same period last year.

• Domestic business also registered an increase of 26% over previous years performance during the same period.

• Profit after tax at Rs. 67 cr. has already surpassed actual profit of Rs. 51 crs. realized in the whole year of 2003-04.

All set to further improve the performance and achieve new milestones, by the end of 2004-05 it is expected that a turnover of Rs. 13000 crs. would be achieved. 3. Export Credit Guarantee Corporation of India Ltd. The Export Credit Guarantee Corporation of India Ltd. was set up by the Government of India in 1957 to support and strengthen the export promotion efforts of the country. Due to risks and uncertainties in international trade, export credit insurance provided by the Corporation plays a pivotal role in promoting India’s export trade. The Corporation protects exporters from the consequences of the payment risks arising out of insolvency and default of the foreign buyer. It also covers political risks arising out of war, imposition of new import control orders or exchange control orders by the foreign countries and delays in externalisation of funds to India. The protection enables Indian exporters to expand their overseas business without fear of loss. Besides this, the Corporation also gives various types of guarantees for finance given by banks to exporters, thereby providing protection to the banks against risks of loss inherent in granting various types of credit facilities to exporters. The resultant timely and adequate credit facilities at pre-shipment and post-shipment stages facilitates the exporter to maximise their exports. The objectives of the Corporation: a) Non commercial objectives: To encourage, facilitate and develop trade between India and other Countries. b) Commercial Objectives: i) To provide adequate export credit insurance cover, comparable to similar covers available to exporters in other countries, so that Indian exporters would be able to save themselves from losses that may arise due to credit risks, both

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commerical and political, and also be in a position to maximise their export business. ii) To provide the banks in India with export credit guarantees with a view to enabling them to extend adequate credit facilities to Indian exporters both at pre-shipment and post-shipment stages. iii) To provide investment insurance to Indian investors undertaking investments in foreign countries. iv) To operate the various schemes in such a manner that the corporation would generate enough surpluses to enable it to meet the losses that may result from unforeseen political situations out of such resources. v) To introduce new product lines so as to diversify into trade related services. Performance Highlights 2003-04: During the year the Corporation has developed certain new products to cater exclusively to niche segments of the market. The Corporation has also effected about 25% to 45% reduction in the premium rates in respect of medium and long-term credit insurance cover. Further the existing and time tested products like Standard Policies and Export Turnover Policy have been fine-tuned to make them more customer friendly. During 2003-04, the Corporation covered the risks aggregating to Rs. 328018 crore as against Rs. 264978 crore during 2002-03 registering a growth of 23%. The total premium earned during 2003-04 was Rs. 445.48 crore as against Rs. 374.41 crore in the year 2002-03. The claims paid during the year 2003-04 amounted to all time high of Rs. 449.26 crore and recoveries amounted to Rs. 62.93 crore as against Rs. 437.06 crore and Rs. 63.44 crore respectively during 2002-03.

After taking into account the provision for unsettled claims, recovery of claims and the reserves for unexpired risks as required under the IRDA regulations, the operation during the past year ended with posting the post tax profit of Rs. 68.56 crore. WORKING RESULTS The total income of the Corporation for the year went upto Rs. 562.15 crore consisting of premium income of Rs. 440.84 (net of reinsurance premium and refund), investment and other income of Rs. 121.31 crore. The Total expenditure came to Rs. 617.42 crore comprising of claims of Rs. 569.55 (net of recoveries and estimated liability for the current year) and administrative expenses of Rs. 47.87 crores (including depreciation of Rs. 3.09 crore). After taking adjustment for changes in Reserve for Unexpired Risk (RUR) (as per IRDA guidelines) and provision for tax, the year under review ended with post tax profit of Rs. 68.56 crore. Trends during the Current Year 2004-2005: Based on actual achievement upto November, 2004, it is estimated that the premium income during the current year would be Rs. 478.00 crore as against Rs. 440.84 crore during the previous year. Normally, the performance for the first half of year would be around 40% in volume of business covered and premium income and second half of year account for 60% of the business of the Corporation. The provisional revised estimates are based on actual performance upto November, 2004 and taking into account the projections given by Branches and different departments. As against net claims of Rs. 569.55 crore paid in 2003-04, it is estimated that this year an amount of Rs. 415.00 crore (net of recoveries and provisions at year end) is to be paid. The claim payment to the tune of

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Rs. 182.00 crore have been settled upto November, 2004. This is slightly higher than what was budgeted at the beginning of the year, this is due to some of the major claims is estimated during coming 3-4 months of new year. However, the working results of the year 2004-05 is likely to end up with net surplus of Rs 67.08 crore (after tax). Prospects for the next year 2005-06 Taking into account actual business coverage upto November, 2004 and present trend in export trade, the estimates of premium income for the year 2005-06

have been fixed at Rs. 488.00 crore (net of reinsurance and refund of Rs. 2.00 crore) registering a growth of 2.09%. The cash outflow on account of claims payment for 2005-06 is estimated to be around Rs. 400.00 crore and after taking into consideration total estimated liability at year end and estimated recoveries the net claims for 2005-06 is estimated to be Rs. 436.00 crore. Thus the year 2005-06 is likely to end up in surplus of Rs. 73.00 crore, after tax. . The performance highlights are detailed below:-

(Rs. in crore)

Actual 2003-04 BE 2004-05 RE 2004-05 BE 2005-06 Premium Income 440.84 442.00 478.00 488.00 Claims paid 449.26 415.00 325.00 400.00 Recoveries 62.93 20.00 20.00 20.00 Financial Results: Share capital 500.00 500.00 600.00 700.00 Reserves 166.95 243.05 243.05 299.54 Net worth 666.95 743.05 843.05 999.54 Net Profit before tax 90.93 121.78 105.08 114.65 Net Profit after tax 68.56 97.03 67.08 73.00

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Provisional financial results for the year 2004-05 with comparative figures of 2003-

04 and Budget 2005-06: (Rs in crore)

Actuals 2003-04

Budget Estimates 2004-05

Revised Estimates 2004-05

Budget Estimates 2005-06

INCOME: Premium collection (after setting off reinsurance premium) 440.84 442.00 478.00 488.00 Change in Reserve for Unexpired Risk 146.20 10.00 -19.00 -5.00 Other Income 121.31 125.00 112.00 125.00 Total 708.35 577.00 571.00 608.00 EXPENDITURE: Administrative Expenses 44.78 42.97 47.42 53.35 Net Claims 569.55 410.00 415.00 436.00 Write-offs - - - - Depreciation 3.09 2.25 3.50 4.00 Total 617.42 455.22 465.92 493.35 NET RESULT: Profit before Tax and Adjustment 90.93 121.78 105.08 114.65 Prior Perion Adjustment(Net) -10.23 0.00 0.00 0.00 Provision for Tax 32.60 24.75 38.00 41.65 Profit after Tax 68.56 97.03 67.08 73.00

4. The Projects and Equipment Corporation of India Ltd. The Projects and Equipment Corporation of India Ltd. was incorporated on 21st April, 1971 as a Government Company under the Companies Act, 1956. The Head Office of the Corporation is located at New Delhi. It has three Branch Offices in India at Mumbai, Kolkata and Bangalore and two site offices in Libya and Vietnam. Further, the overseas offices

of the State Trading Corporation also serve the Corporation in its overseas operation. Its main areas of business are export of engineering projects & equipment’s, specially from small & medium enterprises, commodities, Defence stores and other manufactured goods and imports of bullion, metals, agro commodities, edible oil, petroleum products, industrial raw-materials etc.

110

PEC's expertise lies in identifying markets where Indian products enjoy a competitive edge and associating with reputed manufacturers to participate in international competitive bidding. PEC performs multi-disciplinary services such as marketing, contracting financing, post contract follow-up and acts as a useful interface between the clients and associates/ traders. EXPORT (2003-2004)

The composition of export during

the year 2003-04 is placed below:

(Rs. in lakhs) Agro Commodities 135614 Engg. Equipment & Projects Materials 1314 Defence Equipment 8522 Industrial Raw Material 17787 Other items 821

164058

PEC executed contracts for supply

of Galvanized Roofing sheets worth Rs. 51 crore to Sri Lanka, Construction Steel Bars worth Rs. 20 crore to Puerto Riceo and Family Planning Devices worth Rs. 8.18 crore to Bangladesh. Other major exports were conductors and Line hardware to Suriname, Trinidad and Bangladesh, Transformers to Surinam, Rollers to Morocco, Loco spares to Vietnam etc. Machinery worth Rs.3.80 crore was supplied for setting up Lime Colcination Plant in Brazil during the year. The Plant has since been satisfactorily commissioned. PEC was successful to break into new markets by securing contracts for Transformers worth Rs.4.6 crore to Syria and Tanzania, insulators and hardware worth Rs.2.9 crore to Ethiopia and medical instruments worth Rs.1 crore to Ghana.

In Surinam a high value contract valued at Rs.57 crore has been signed and is under execution for a 161 KV Transmission Line. PEC is one of India’s leading exporter and importer of agro commodities. Agro trade has become key business area contributing in the growth of PEC. PEC exported wheat and rice worth Rs.1239.15 crore during the year. Other agro exports during the year were maize, soya meal and seasame seeds. IMPORTS (2003-2004) During 2003-04, the Company achieved import turnover of Rs. 4089.07 crs. The composition of the import is placed below:-

2003-04 (Rs. crore)

1 Bullion 3105.07 2 Industrial Raw Material 660.75 3 Agro Commodities 67.67 4 Timber 9.29 5 Edible Oil 237.42 6. Others 8.87 Total 4089.07

Highlights for 2004-05 As against targeted figures of Rs. 3860 cr., the company has registered a turnover of Rs. 2351 cr. upto 30.9.2004 and it is estimated to achieve a total turnover of Rs. 4700 cr. . The break-up of turnover is as under:- (Rs. crore)

Actual upto

30.9.2004

Estimates for the

2004-05 Exports 564 1044 Imports 1775 3581 Domestic Sales 12 75 TOTAL 2351 4700

The major items of export have been ACSR conductors, cables, line

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hardware, current transformers, insulators, railway rolling spares, medical equipment, steel works, mini cement plant, iron ore, defence stores and wheat, rice, maize, soyabean and other agro commodities. PEC’s major items of imports have been bullion, coal & coke, pulses, edible oil, steel scrap, petrochemicals and other industrial raw materials. PEC’s export markets have been Bangladesh, Nepal, Bhutan, China, Vietnam, Iran, Yemen, Morocco, Ghana,

Trinidad, Ethiopia, Tanzania, Surinam and Syria. Targets for 2005-06

(Rs. In cr.) Exports 755 Imports 3130 Domestic sales 65 Total 3950 Financial Results The following table gives actual achievement of 2003-2004, 2004-05 along with projections for the year 2005-2006.

(Rs. in crore) 2003-04 Estimated

for 2004-05 Actuals for 2004-05 (Upto 30.9.2004)

Budget Proposed 2005-06

(a) Exports 1640 1044 564 755 (b)_ Imports 4089 3581 1775 3130 ( c ) Domestic Sales 124 75 12 65 TOTAL 5853 4700 2351 3950 (d) Profit before Tax 36.67 24.80 14.09 9.50

(e) Profit after Tax 24.36 15.55 9.00 5.65 (f) Dividend & C.D Tax 7.19 3.15 2.00 1.25 (g) Equity 1.50 1.50 1.50 1.50 (h) Reserves 53.06 65.46 60.06 69.86 (i) Net Worth 54.56 66.96 61.56 71.36 5. India Trade Promotion Organisation Financial Highlights:-

As per the audited results for the

year 2003-2004, the Organisation generated a surplus of Rs. 40.03 crores as compared to Rs. 21.93 crores in the previous year. The total income generated during 2003-2004 was Rs. 132.24 crores

as compared to Rs. 115.14 crores during 2002-2003.

Since the company is registered under section 25 of the Companies Act, 1956, no dividend is payable.

The brief of the financial period for the year 2002-2003 and 2003-2004 are as under:-

Liabilities

(Rs. in crore)

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2002-2003 2003-2004 Share Capital 0.25 0.25 Reserve & Surplus 253.11 293.27 Current liabilities Provisions 64.77 79.17 Total 318.13 372.69 Assets 2002-2003 2003-2004 Fixed Assets 39.90 43.61 Investments 48.50 8.50 Current Assets 151.16 266.44 Loans & Advances 78.53 54.08 Misc. 0.04 0.06 Total 318.13 372.69 6. Spices Trading Corporation of India Ltd. The Spices Trading Corporation Limited formerly known as Cardamom Trading Corporation Ltd. Was incorporated under the Companies Act, 1956 in Oct. 1982. But the actual activities commenced from Sept. 1993. The main objectives of the Corporation are given below:- a) To carry on Domestice and International Trade in Spices and other agricultural commodities. b) To process and procure spices and manufacture its products. c) To support, project, maintain, increase and promote the production of its products as also the sale and export. d) To undertake and promote research and development of spices and its products. e) To promote and develop market for spices and its products. f) To carry on business as dealers and Exporters of agricultural commodities and products thereof. g) With the diversified Trade outlook, to trade in non agricultural products like industrial Goods, Equipments, Components and also the materials consumed by the industries of Power and Energy and to trade in any other Commercial products; and

h) To carry on domestic and international trade in Iron Ore, bullion, precious metals, limestones, metcoke, other minerals, polymer, polyester yarn, Cotton yarn and such other textile products, PVC resins, HMS scraps, other metal scraps. i)

The authorised share capital of the Corporation is Rs. 5 crs. The paid up Share Capital as on 31.3.2004 was Rs. 1.50 crore.

The purchase centres of spices are

spread over in the States of Tamil Nadu, Karnataka and Kerala whereas main Cardamom collection centres and Cardamom Auctions are in the State of Kerala and Tamil Nadu.

Turnover – Performance during 2003-04.

The Company has achieved an all time high total turnover of Rs. 315.23 cr. during 2003-04 compared with Rs. 222.86 cr. achieved during 2002-03.

The Company has earned a Trading Profit of Rs.5.52 crores during 2003-04 as against Rs.4.01 crores in the previous year. The Profit after tax for the year has increased to Rs.2.50 crores as against Rs.1.58 crores during the previous year.

During 2003-04 the Company has exported commodities valued at Rs.193.03

113

crores registering an increase of 63.34% over the previous year. The Company has also achieved a Domestic sales turnover of Rs.122.20 crores registering an increase of 16.74% over the previous year.

Due to the sustained efforts of the Company in maximizing its exports, the Company could export 102678 MTs of Onion valued at Rs. 89.47 crore, 26581 MTs of Maize valued at Rs.17.89 crore, 12140 MTs of Raw Rice valued at Rs.9.50 crore and 25031 MTs of Parboiled Rice valued at Rs.19.44 crore, 85329 MTs of Wheat valued at Rs.54.99 crores, 431 MTs of Niger Seeds valued at Rs.1.05 crore, 238 MTs of Chillies Whole valued at Rs.0.89 crore and total exports amounting to Rs.193.03 crore.

During the year 2003-04 the Company has successfully conducted Cardamom Auction at Bodinayakanur in Tamil Nadu and achieved an auction sales turnover of Rs. 11.25 crores and also the company supplied Pesticides and Fertilizers at competitive prices valued at Rs. 15.45 crore.

During 2004-05, the Company has drawn

out an action plan to achieve a turnover of Rs. 500 corer against its previous year turnover of Rs.315.23 corer. The action plan are as under:- 1. The Company has been nominated as one of the canalizing agencies for export of onion. During the year 2004-05 the Corporation has drawn up plans to export Spices, Onion, Red Split Lentils, Wheat, Rice, Maize and other Agricultural Commodities valued at Rs. 191.99 crore which includes exports on back to back contracts. The Company has utilized the quota and exported 41400 MTs of Onion valued at Rs.36 crore till 30.11.2004. 2. The Company has also been nominated as one of the nodal agencies for export of wheat and rice along with other PSUs viz., STC, MMTC & PEC by the Food

Corporation of India. Since the Food Corporation of India has withdrawn allocation of wheat and rice for exports from 20.08.2003, no further contracts were made for export of wheat and rice during the year 2004-05. The Company will take position for exports once the FCI opens up the allocation of wheat and rice for exports. 3. The Company will not take positions in procurement of spices and other agricultural commodities for exports and would export only on back to back contracts. However, wherever it is possible and if there are no risks of price fluctuations, the Company may procure directly on contract basis for exports. 4. The Company is in a position to export Cardamom and Black Pepper if the procurement prices are competitive and matching to the international prices. 5. The Company has established good contacts with overseas buyers/importers in potential markets and during the Current year, it is proposed to work through agents globally for generating export trade.

The Corporation has drawn out an

action plan to achieve a turnover of Rs.750 crore during 2005-06. This action plan has been drawn out based on export of commodities for Rs. 457.50 crore and the balance from domestic sales of Rs. 292.50 crore.

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(Rs. In lakhs) ACTUALS ESTIMATES PROVISIONAL PERFORMANCE FOR FOR ACTUALS BUDGET

PARTICULARS 2003-04 2004-05 2004-05 FOR 2005-06 UPTO 30.11.04

SALES TURNOVER 31523.11 50000.00 25303.81 75000.00 CAPITAL EMPLOYED 4767.80 4600.00 4523.00 5000.00 GROSS PROFIT 552.38 530.00 344.01 795.00 NET PROFIT BEFORE TAX 370.82 556.47 360.22 840.00 Sales Performance EXPORT SALES 19302.75 30616.82 5981.64 45750.00 DOMESTIC SALES 12220.36 19383.18 19222.17 29250.00 TOTAL SALES 31523.11 50000.00 25203.81 75000.00 TOTAL IMPORTS 1376.02 5085.00 955.29 9000.00

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Annexure - I Details of Project wise funds released under Market Access Initiative are as under:- 2001-2002 Sl.No.

Projects Amount Allocated

Disbursed Status

1 Trade in Distribution Services 78,750 78,750 Study completed 2 Export Potential in WANA Countries 40,000 20,000 Study completed 3 Market Studies on Dyes & Chemical engineering

sectors in LAC 22,00,000 22,00,000 Study completed

4 Promotion of India's Trade with Sub-Saharan African Countries

3,03,000 1,51,500 Study completed by IIFT.

5 Trade Potential for North East Asian Countries 3,00,000 3,00,000 NCTI has submitted the final report.

6 Dwell Time at inland container Depot, Nhava Sheva & Container Freight Station Nagpur

1,20,000 1,20,000 Study completed.

7 PTA with Columbia and PTA with Brazil 74,500 74,500 Study completed

8 Market Study on Privatisation of operation and maintenance of sercices in Kandla SEZ

11,50,000 4,60,000 Final feasibility report submitted.

9 Market study on benchmarking SEZ policy by M/s KMPG,N.Delhi

40,95,000 29,25,000 M/s KMPG has submitted the draft study report and also draft Central SEZ Act.

10 Study on competitiveness of Indian products vis-à-vis China etc., by M/s ICRA Advisory Services, N.Delhi.

36,00,000 10,80,000 M/s ICRA Advisory Services is expected to submit the interim report shortly.

11 Market study on trends in US global imports by NCTI

5,85,000 2,40,000 NCTI has submitted 16 study reports and has yet to complete study.

12 Market study on post phasing out analysis of USA & Canada textile quotas by NCTI

50,000 50,000 Study completed.

13 Transport subsidy to exports of coffee by Coffee board

3,00,00,000 3,00,00,000 As on date a sum of Rs.2,86,80,691 has been utilised by coffee board.

14 Econometric forecasting model for India's export sector - study by RIS

18,00,000 4,00,000 Study is in progress and the first report is expected soon.

15 Market study by TERI on WTO & Environmental issues

15,00,000 3,75,000 TERI has started the study project and has submitted preliminary reports on TRIPS CBD relationship & effect on market access on environmental measures.

16 Market survey for promotion of plastic consumer items in US market by Plastic EPC

45,50,000 45,50,000 Terms of Reference of the study approved and study completed. Final report is to be submitted shortly.

17 Market study and publicity for promotional activities in USA for rubber manufactured products by CAPEXIL

39,00,000 39,00,000 Terms of Reference of the study approved. Consultant (World Link USA) appointed in July, 2002. Report is to be submitted shortly.

18 Market study, publicity and special showcase on Portal for promotional activities in USA and Germany for E-Publishing and publishing by CAPEXIL

35,17,000 35,17,000 TOR of the study approved. Consultant appointed in August, 2002. Report to be submitted by MARCH, 2003. B2B Portal to be completed by March, 2003.

116

Sl.No.

Projects Amount Allocated

Disbursed Status

19 Market study for promotion of exports of software services to Japan by Electronic & Computer Software EPC

78,00,000 50,00,000 TOR of the study approved. Council is negotiating for appointing consultants for the study.

20 Market study for promotion of exports of IT enabled services to USA by Electronic & Computer Software EPC

76,00,000 50,00,000 TOR of the study approved. Council is negotiating for appointing consultants for the study.

21 Market study on IT and Enabled services to EU Countries by Electronic & Computer Software EPC

85,00,000 55,00,000 TOR of the study approved. Council is negotiating for appointing consultants for the study.

22 Organising Indiasoft London April 2002 by Electronic & Computer Software EPC

95,00,000 95,00,000 Indiasoft London held on 24-25 April, 2002. 23 Indian software companies from SME sector participated as exhibitors and found it worthwhile.

23 Market survey for setting up Indiamarts in USA, Canada, Brazil and Japan by Engineering EPC

96,00,000 96,00,000 TORs of the study approved. 4 Consultants appointed in September, 2002 and final reports would be available by February, 2003.

24 Market survey of Australasian markets for promotion of engineering products from India and organising India Tech Melbourne by Engineering EPC

31,25,000 31,25,000 Study has been completed and Eng. EPC organised Indiatech in September, 2002.

25 Enahancement of footwear exports to USA by Council for Leather Exports

2,58,51,000 2,00,00,000 Leading Footwear companies have joined this programme and have presented their products in an exclusive business event in Las Vegas in USA Show.

26 Enhancement of export of leather & leather products to Japan by Council for Leather Exports

76,66,000 52,00,000 The Council has conducted a detailed market study on the Japanese leather market covering areas like trade regulations, export documentation, leather apparel, leather bags etc. The study has been done by M/s. Dun & Bradstreet.

27 Market study on marketing of spices in USA by Spices Board

1,00,00,000 70,00,000 TOR s of the study approved. Consultant appointed and report to be available very shortly.

28 Market study on marketing of spices in Japan by Spices Board

50,00,000 30,00,000 TORs of study approved. Proposal for approving higher cost (Rs. 70.00 lakh) quoted by the consultant is under consideration.

29 Market study for promotion of Cashew in USA and Japan by Cashew EPC

1,25,00,000 1,00,00,000 TORs of the study approved. Consultants appointed.

30 Marketing promotion of mangoes - phase I by APEDA

64,13,000 64,13,000 11 Market Promotion Programme for phase-1 were approved with financial assistance of Rs.5.83 lakh each. APEDA has organised 5 shows to launch mangoes in Dubai, London, Frankfurt, Hong Kong and Kualalampur. The promotion drive is stated to be a major success and feed back very encouraging.

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Sl.No.

Projects Amount Allocated

Disbursed Status

31 Setting up marketing centre in Netherlands for export of cut flowers by APEDA

35,98,000 33,72,750 Phase-I of the project completed & APEDA has proposed its extension by another one year before considering taking up phase-II. Extension requested has been approved for one more year as per approved cost for the first year except warehouse charges would be 50%.

32 Desktop study on feasibility of FTA/RTA with Morocco by IIFT

25,000 0 Study completed

33 Benchmarking study by M/s Gherzi Eastern Ltd.on production cost of textiles and garments

85,05,000 0 Draft report submitted to Texprocil and under consideration.

34 Study and trade data analysis for LAC countries by NCTI

3,00,000 0 Study completed.

35 Analysis of data on India's export of Pharmaceutical items to Mexico by NCTI

2,500 2,500 NCTI has submitted the report.

36 Trade Analysis of Gem & Jewellery/USA's Global imports vis-à-vis major supplying countries for Jan-May 2000/2001 and Jan-June 2000/2001

40,000 40,000 Study completed.

37 Project on Trade in Services : Opportunities and Constraints - by ICRIER, N.Delhi

25,00,000 5,00,000 Study completed.

38 Compatibility of India Social Security Legislation with that prevalent in USA - Payment of professional fee

5,15,000 3,00,000 Study report has been submitted and is under consideration.

39 Integrated study on Free Trade Agreement(FTA) with Mauritius

5,00,000 1,25,000 Study is going on.

40 Quick study on Rationalisation of Procedures in Export and Import handled in Mumbai Airport - by Agriculture Finance Corp. Ltd., Mumbai

1,50,000 75,000 Study completed.

41 Study on feasibility of FTAs/PTAs with Argentina, Brazil, Colombia and Venezuela - by RIS, N.Delhi

1,00,000 50,000 Study completed.

42 Study relating to PTA with Brazil and Colombia - by NCTI, N.Delhi

50,000 50,000 Study completed.

43 Study of the Process Reengineering at Mumbai Port by Agriculture Finance Corp. Ltd. Mumbai

6,00,000 2,40,000 Draft report submitted and is under consideration.

44 Study relating to analysis of Pre Nafta/Post Nafta trade 75,000 75,000 Study completed. 45 Extended Project on Trade in Services : Opportunities

& Constraints - by ICRIER, N.Delhi 5,00,000 1,50,000 Study is going on.

46 Writing a paper on Multi-lateral Agreement on Investment : a briefing on the investment - related desciplines and the WTO

2,40,000 2,40,000 Study completed.

TOTAL Rs.

14,50,00,000

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Funds released during 2002-2003 under MAI Scheme Total Allocation - Rs. 14.50 crore S.No. Organisation Subject Amount (Rs.) Remark 1. M/s National Industrial

Development Corp. Ltd. (NIDC), N. Delhi.

Feasibility Study for privatisation of operation and maintenance Services of Kandla SEZ.

5,75,000/-

2. National Centre for Trade Information (NCTI), New Delhi.

Study to identify items for Preferential Trade Agreement (PTA) with Chile by NCTI.

45,000/-

3. National Centre for Trade Information (NCTI), New Delhi.

Carrying out updated Study on Latin American Countries by NCTI

3,00,000/-

4. Agriculture Finance Corp. Ltd. Mumbai (AFC)

Study of the dwell time at Inland Container Depot, Nahava Sheva & Container Freight Station, Nagpur.

1,20,000/-

.5 Research & Information System for the Non-Alligned & other Development Countries (RIS)

Carrying out studies on investment matters and various analytical studies for 20 months w.e.f May/June 2002 & Advise on matters by Dr. Nagesh Kumar by RIS, New Delhi.

2,20,000/-

6 "ICRIER, India Habitat Centre, Lodhi Road, N.Delhi

"Studies under the extended project on "Trade in Services: opportunities and constraints".

2,00,000/-

7. National Industrial Development Corporation (NIDC), N.Delhi.

Feasibility Study on Privatisation of operation & maintenance services of Kandla SEZ by NIDC

1,15,000/-

8. ICRIER, India Habitat Centre, Lodhi Road, N.Delhi

Payment to Indian Council for Research on International Economic Relations (ICRIER) for studies relating to GATS.

15,00,000/-

9. M/s KPMG India Pvt. Ltd. Gurgaon.

Study on SEZ and Developing of Central Level Act by KPMG.

11,70,000/-

10. ICRA Ltd. New Delhi. Study regd. Competitiveness of Indian Leather, Textiles and Engg. Products vis-à-vis Korea, Taiwan, Malaysia, Indonesia and China.

21,60,000/-

11. NCTI, New Delhi. Study on India's Export potential to France, Italy and Poland by NCTI.

75,000/-

12. IIFT, New Delhi. Study conducted on "effect of trade liberalisation by India on Bhutanese exports to India" by IIFT, N.Delhi.

56,000/-

13. The Cotton Textiles EPC, Mumbai.

For conducting the studies on Benchmarking by M/s Gherzi Eastern Ltd. Mumbai.

34,00,000/-

14. Engineering EPC, New Delhi.

For reimbursement of the expenditure incurred on India Tech Exhibition at Melbourn, Australia during Sept. 2002.

1,58,90,000/-

15. Research & Information System for the Non-Alligned & other Developing Countries (RIS), New Delhi.

Project on " Modelling of Export Sector for short term forecast".

4,00,000/-

119

S.No. Organisation

Subject Amount (Rs.) Remark

16. MIDS Study on Trade Facilitation by Madras Institute of Development studies (WTO Studies)

3,00,000/-

17. SGEPC Focussed export promotional activities

1,00,00,000

18. NCTI Study for identification of PTA with Venezuela

45,000

19. CLE Nation wide survey to update the database on Raw & hides & skin resources

22,00,000/-

20. Price Water House Coopers, N.Delhi

FEMA Study on SEZs 2,85,000

21. RIS Study on tariff commitments which India could make at the next round of WTO

5,00,000

22. ICRA Study regarding competitiveness on Indian leather, textiles & engineering products vis-à-vis Korea, Taiwan, Malaysia etc.

3,60,000

23. E&CS EPC Implementation of language related market access facilitation initiative (LRMAF) in Japanese Market

4,44,000

24. SG EPC Export Promotional activities 25,00,000 25. APEDA Setting up of marketing centre in

Netherland for cut flowers 33,00,000

26. CLE Setting up of Design studio by seven manufacturing units

7,00,000

27. Tea Board Communication Campaign in Russian market

4,00,00,000

28. CLE Enhancement of footwear exports to USA

26,85,000

29. E&CS EPC Compatibility of Indian Social Security legislation with that prevalent in USA.

1,15,000/-

30 Economic Law Practice Study on Emergency Safeguard Measures (ESM) under GATS

3,00,000/-

31. TERI Study on Trade & Environment by TERI

3,75,000/-

32. NCTI Sector specific analysis of trend in the USA's Global imports vis-à-vis from India

1,20,000/-

33. Agriculture Finance Corp. (AFC), Mumbai.

Study of the process reengineering at Mumbai Port.

3,00,000/-

34. NCAER Studies of co-operation in the Goods sector

3,35,500/-

35. ICRIER Studies on Services sectors-Comprehensive Economics Co-operation Agreement

2,97,000/-

36. NCTI Study for PTA with Mexico 18,000/- 37. Centre for Development

Economics (CDE) Study on Trade & Competion policy & related matters.

1,60,000/-

38. IIFT. Study on PTA with Morocco 25,000/- 39. M/s Nishith Desai

Associates, Mumbai Project study on "Technical Review of GATS provisions" .

1,00,000/-

40. IIFT Study on Promotion of India's Trade with Sub-Saharan African Countries.

1,51,500/-

120

S.No. Organisation Subject Amount (Rs.) Remark 41. NCTI Sector Specific analysis of trend in

USA's global imports vis-à-vis from India.

1,20,000/-

42. CEBECO Pvt. Ltd. Studies on Horticulture and floriculture sector - a part of the comprehensive economic cooperation agreement between India & Singapore

3,00,000/-

43. Academy of business studies

Pre-feasibility study for preparation of custom regulations under the India customs act

25,000/-

44. AFC, Mumbai Quick study on Rationalisation of procedures in export & import handled in Mumbai Airport.

75,000/-

45. IIFT Study on preferential trading Arrangement (PTA) with Egypt & South Africa

2,70,000/-

46. Consumer Unity & Trust Society, Jaipur

Study on Non-tariff barrier affecting India's exports : strategies for future

1,25,000/-

47. International Collective in Support of Fisherwork (ICSF)

Study on various aspects of subsidisation of domestic fishries sector in the context of possible sectoral negotiations at WTO

2,00,000/-

48. FICCI & CII Joint India EU Study for enhancement of bilateral trade & investment.

35,30,000/-

49. TERI Study on trade & environment 7,50,000/- 50. NCAER Study on the issues involved in the

on-going negotiations on WTO Agreement on Agriculture.

13,20,000/-

51. ASCI, Hyderabad Study on Imbalances in the current WTO Agreement on subsidies and countervailing measures and Trade.

3,50,000/-

52. M/s. G.N.Consulting, Ghaziabad (U.P)

Time & Motion study at Delhi ACC. 2,20,000/-

53. IIFT, N.Delhi Study on Bangkak Agreement 1,00,000/- 54. ICRIER Studies on service sector

comprehensive cooperation Agreement.

2,97,000/-

55. Cashew Export Promotion Council

Study for promotion of cashew in USA & Japan.

7,50,000/-

56. NCAER Studies on cooperation in the Goods sector

3,35,500/-

57. NCAER Research Project on "The Uruguay round agreement & Indian Agriculture

4,34,000/-

58. RIS Study related to cross border trade between India & Bangladesh.

87,500/-

59. RIS Study on feasibility of FTA and special economic arrangement with Singapore

62,500/-

60. NIPM Study of Process Re-engineering at Chennai Port by NIPM

3,60,000/-

61. NIFT Research on cost of quality in Indian Apparel manufacture industry.

2,37,000/-

62. ISEPC Market research studies in EU and USA for silk sector.

18,00,000/-

121

S.No. Organisation Subject Amount (Rs.) Remark 63. The Cotton Textiles EPC,

Mumbai. For conducting the studies on Benchmarking by M/s Gherzi Eastern Ltd. Mumbai.

50,15,000/-

64. NCTI PTA Study with Iran 20,000/- Total = 10,86,25,500/- Funds released during 2003-2004 under MAI Scheme

Sl. No.

Subject Amount approved for assistance

Amount released

Status

1. Assistance to the Seafood Exporters Association of India for defending Anti-dumping suit in USA through MPEDA

2,40,00,000 1,94,00,000 Under progress

2. Trade Impact of EU Enlargement on India 3,90,922 -------- -do- 3. Study on various aspects of Market Access for non-

agricultural products in the WTO round of negotiations (WTO Committee)

10,00,000 5,00,000 -do-

4. Study regarding PTA/FTA between India & Countries of Gulf Co-operation Council

4,80,000 ---------- -do-

5. Upgradation of Trade Analysis Study of Global Trade of LAC countries by NCTI

4,50,000 ---------- -do-

6. Market potential studies for select LAC countries for Handloom items

15,000 15,000 -do-

7. Study regd. PTA with Uruguay by NCTI 45,000 ----- -do- 8. Study of Columbia and Chile as an investment

destination by NCTI 12,84,000 5,13,600 -do-

9. (A) Study of identification of items for Preferential Tariff Agreement with MERCOSUR by NCTI

(B) Two Additional parts of the MERCOSUR study.

1,80,000 1,30,000

3,10,000 completed

10. Study of Russian Market by CLE 13,95,000 9,45,750 Completed 11. Footwear Programme in USA by CLE

Footwear business show in US in Feb 2004 i) 49,40,000 ii) 34,00,000

49,40,000 34,00,000

Completed

12. Proposal for countering Adverse campaign against Indian leather industry – CLE

20,50,000 17,33,000 Completed

13. Proposals from the Govt. of Andhra Pradesh 18,22,000 & 18,75,000 & 26,25,000

Under progress

14. Study for Indo-South Africa PTA/FTA 45,000 -do- 15. Market Studies of eleven markets in Cotton Textiles

sector by CTEPC 31,18,000 -do-

16. Study regd. Trend in India's import for items where anti-dumping duty has been levied 65,000

-do-

17. Introduction of a language related Market Access Facilitation Initiative in the Japan IT Market (LRMAFI - G)

20,00,000 + 3,75,000

4,81,666

-do-

18. Introduction of a language related Market Access Facilitation Initiative in the German IT Market (LRMAFI - G)

24,00,000 + 3,75,000

-------- -do-

19. ESC Proposal for taking up two studies in lieu of three study which were approved earlier 2,20,00,000 2,20,00,000 -do-

20. Study of CIS Region develop strategy for export growth of Shellac products - Shellac EPC 12,00,000

6,00,000 -do-

21.

Negotiations on the Anti-Dumping Agreement – Study on Injury margins 1,00,000

-----

-do-

22. Programme on WTO-related issues with a focus on Trade & Environment 15,00,000

3,75,000

-do-

122

Sl. No.

Subject Amount approved for assistance

Amount released

Status

23.

Study by RITES on Transport Optimization for International Linkages of North Eastern Region of India. 10,50,000

10,50,000

Completed

24. Study on Prospects of Making India’s Manufacturing Sector Export Oriented by RIS

34,00,000 13,60,000

Under progress

25 Setting up of Warehouse in Uruguay – proposal by Central Warehousing Corporation (CWC)

30,22,110 (1st Year) 20,40,740 (for 2nd year) 10,07,370 (for 3rd year)

15,11,055

-do-

26 Russia Focus Market Promotion Programme-2004-05 – Leather Footwear, Goods and Garments 74,47,000

---------- -do-

27 US Focus Market Programme- Leather Garments and Leather Goods 80,33,000

40,16,500 -do-

28 Third year US Footwear Programme 89,14,000 44,57,000 -do- 29 FDI in the Export Sector-A Survey of Prospects and

Problems by World Trade Centre, Mumbai, in association with Academy of Business Studies, N.Delhi.

38,50,000 15,40,000

-do-

30 India’s Exports of Selected BPO Services: Understanding Strengths and weaknesses” by the Institute for Socio-Economic Change, (ISEC), Banglore

14,50,000 5,80,000

-do-

31 Shellac Proposal for “Export Enhancement Plan” 22,50,000 11,25,000 -do- 32 Proposal of Chemexil on market study on patent expiry

drugs to EU 56,25,000 28,12,500

-do-

33 Proposal of Plexconcil on Plastic consumer items 1,96,00,000 97,75,000 -do- 34 Reverse BSM in India for business negotiation between

buyers from Australia & Indian engineering exporters 48,00,000 ------------

-do-

35 Market study for export development of Wind Energy Projects in Germany, Spain, Austria 50,00,000 25,00,000 -do-

36 Opening of Showrooms, warehouses etc. by Engineering Export Promotion Council 1,45,00,000

61,38,800 -do-

37 Study on logistics and competitiveness of coffee Exporting Companies – India Brazil & Vietnam 44,00,000

1 5,00,000 -do-

38 Export Enhancement plan under MAI Market Study on Menthol –CHEMEXCIL 56,25,000 28,12,500 -do-

39 Market study on Anti-Aids Drugs-Anti retroviral drugs – CHEMEXCIL 56,25,000

28,12,500 -do-

40 Market & media campaign in USA for increasing exports of marine products to USA - MPEDA 5,07,29,000

90,00,000 -do-

41 Proposal relating to the marketing study for finding out the customer profile, demographics and target market and potential for expansion in the export of Ahimsa Peace Silk by People for Animals. (through HEPC)

15,00,000

7,50,000

-do-

42 Market study of USA in Wind Sector by EEPC 25,87,500 10,93,000 -do-

123

Funds released during 2004-2005 under MAI Scheme (Rs.Lakh)

Sl. No.

Subject Amount Approved from MAI

Amount released

Present Status

1. Feasibility studies for inclusion of ‘Investment’ and ‘Services’ Sectors in the proposed FTA between India & Gulf Co-operation Council.

I)6,00,000 II) 5,94,000

2,40,000 2,37,600

Under Progress

2. An overall study of Chhattisgarh on Export Promotion & Prospects with WTO implications and also to formulate appropriate export strategy for the State.

10,50,000 --------- -do-

3. Proposal for study on India-China Trade in Goods & Services: Possibilities for increased Trade by ICRIER. 13,50,000 5,40,000 -do-

4. Proposal from Andhra Pradesh Chamber of Commerce & Industry for participation in International Trade Fair in Rome, Italy from 9th to 18th July, 2004

29,00,000 ---- -do-

5 CII Proposal for Enhancing Exports of Organic Chemicals to China – 2004/05 to 2006/07 40,89,000 -------- -do-

6. CII Proposal for Pharmaceuticals (including biotechnology products) – Market penetration in Malaysia and Singapore. 33,19,000 -------- -do-

7. CII Proposal for enhancing Exports of Machinery to China – 2004/05 to 2006/07 26,50,000 ---- -do-

8. CII Proposal for Machinery Market penetration in ASEAN 5 Countries. 15,46,000 ---- -do-

9. CII Proposal for Pharmaceutical Industry Market penetration in Expanded EU and Applicant Countries – Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia & Turkey.

28,42,000

-------- -do-

10. FIEO’s Proposal on conducting “International Congress on Trade-in-Services” 53,73,000 ------ -do-

11. FICCI’s Proposal for enhancing India-GCC Trade Linkage in Pharmaceuticals & Healthcare 96,00,000 ---- -do-

12. FICCI’s Proposal for Export Promotion Strategy for India in the EU Accession Countries 1,63,000 ------- -do-

14. FICCI’s Proposal for promotion and higher value generation for the Indian Mining Sector 3,00,000 -------- -do-

15. FICCI’s Proposal for enhancing Indian Drugs & Pharmaceuticals exports to the ASEAN Region – Thailand, Indonesia and Philippines

62,89,000

-------

-do-

16. India Promotion event on the theme of “Modern India” in the GALERIES LAFAYETTE STORE, FRANCE for a period of one month in April 2005

65,00,000 ----- -do-

17. ESC’s Proposal for setting up of an Export Facilitation and Business Support Centre in New Jersey, USA.

7,41,00,000 for3 years +1,08,000

------

-do- (Subject to M/IT approval)

18. Study of the Process Reengineering at Chennai Port (Ex-post facto) 4,00,000 3,60,000 -Do- 19. Study on trilateral trade and economic cooperation among India

Brazil and South Africa (IBSA) by RIS – (Ex-post facto) 10,00,000 4,00,000 -Do-

20. Market Survey in Armenia in the Sectors of Cut & Polished diamond, Information Technology, Tea, Coffee, Meat & Processed food.

4,50,000 -----

-Do-

21. Market Study on export of Chemicals to Taiwan by India-Taipei Association

4,30,000 ----------- -Do-

22. Making use of International Media in boosting Indian Exports in Russia, South Africa and USA .

31,33,000 ------- -Do-

23. Expanding India’s share in the Chemical market of Mexico (BSM) by CII

53,60,000 ----------- -Do-

24. Expanding India’s share in the Pharmaceutical market of Mexico by CII

88,30,000 --------- -Do-

124

Sl. No.

Subject Amount approved for assistance

Amount released

Status

25. Market Penetration of pharmaceuticals products in USA by CII 34,00,000 ------ -Do- 26. Proposal from Madhya Pradesh Hastshilp evam Hathkargha Vikas

Nigam Ltd. for participation of craftsmen, SHG’s and SMEs from MP in Sharjah & Dubai Festival in Oct.- Nov. 2004.

34,20,000 ----- completed

27. Study on “Export Promotion of Consultancy & Management Services from India” by Consultancy Development Centre

5,00,000 ----- Under progress

28. Extension of Language related Market Access Facilitation Initiative in the Japanese Language for a period of 4 years 2004 –05 to 2007-08

80,00,000 + 14,00,000

----- -Do-

29. Extension of Language related Market Access Facilitation Initiative in the Japanese Language for a period of 3 years 2005 –06 to 2007-08

72,00,000 + 11,25,000

----- -Do-

30. Establishing an “Indian Leather Desk” at Milan, Italy by CLE 37,50,000 ----- -Do- 31. Proposal for countering Adverse campaign against leather export

industry by CLE 18,72,000 ----- -Do-

32. Setting up of a design station for shoe designing and design intelligence.

37,50,000 ----- -Do-

33. Mega show for Indian leather products in Spain during Feb. 2005 95,00,000 ----- -Do- 34. Opening of Showroom, Warehouse, publicity and direct marketing

USA. 3,08,00,000 ----- -Do-

35. Market Facilitation Centre for Cut flower, fruits and vegetables to Europe

60,00,000 ----- -Do-

36. Study on Import Intensity of India’s exports in Liberalized trade policy regime

10,00,000 ----- -Do-

37. Promotional activities for export enhancement of Agarbattis 67,75,000 ----- -Do- 38. Proposal for participation in various film festivals in India and

abroad by CII 52,00,000 ----- -Do-

39. Market study of drugs for which patent protection is nearing end to maximize India’s share of generics in USA market by Chemexcil

5,00,000 ----- -Do-

40. Study on Export enhancement plan on Therapeutic proteins by using phytopharming by Chemexcil.

5,00,000 ----- -Do-

41. Study for export enhancement plan on defining strategies to position India as a global biotechnology hub and identifying action point for various stake holders.

5,00,000 ----- -Do-

42. Expanding India’s share in the pharmaceutical market of West Africa

1,67,00,000 ----- -Do-

43. Proposal for engaging consultants for analysing the submissions made by WTO member countries to the negotiating Group on rules and the implications for India

4,50,000 ----- -Do-

44. RIS Study on Rules of origin issues in India’s economic partnership agreements with other countries viz. ASEAN, BIMST-EC

5,00,000 2,50,000 -Do-

45. Study on ‘Impact of Exports on Employment” by the Institute for Studies in Industrial Development (ISID)

9,83,000 ----- -Do-

46. Study on “Some Dimensions of Employment in the Export Sector of India” by RIS

10,00,000 ----- -Do-

47. Study on India’s Trade in Audio Visual Services under GATS by RIS

4,95,000 1,00,000 -Do-

48. Study on Rules of Origin in order to frame the Unilateral Tariff Preferences (UTP) to be granted by India for Least Developed Countries (LDCs) by Mr. P.V.Ramanan.

4,25,000 1,70,000 -Do-

49. Study by NCTI on India’s exports to USA on 2003 trade data to avail benefits under the USA’s GSP Scheme

50,000

---- -Do-

50. Marketing Project of Automobiles in ASEAN regions by Society of Indian Automobile Manufacturers (SIAM)

Actual to be decided

--------- -Do-

125

Sl. No.

Subject Amount approved for assistance

Amount released

Status

51. Seminar on Forecasting of Jewellery Trends and Merchandising on 4th & 5th December 2004 by GJEPC

6,32,000 ----- -Do-

52. Country specific survey for Handicrafts sector vis-à-vis commercial intelligence report of Handicrafts product lines as per HS code in USA

18,00,000

-------- -Do-

53. Diagnostic study of identified handcrafts cluster on supply chain of Jaipur and Jodhpur by EPCH

14,80,000 ----- -Do-

54. Aggressive International Marketing of North Eastern Handicraft

To be decided on file

-------- -Do-

55. International Marketing Linkages for Handicrafts & Allied Products – Reverse BSM and Publicity campaign

3,37,36,000 -------- -Do-

56. Study of trends and evolving marketing strategy of enhancing the sale of Indian Handmade Carpets in USA

18,00,000 ------ -Do-

57. Study of trends and evolving marketing strategy of enhancing the sale of Indian Handmade Carpets in LAC

18,00,000 ------- -Do-

58. Display of Indian Handmade Carpets in Departmental Stores in USA for three years.

1,41,00,000 ------ -Do-

59. Opening of warehouses – cum – showrooms in USA 50,00,000 ------ -Do- 60. Extension of newly developed Backing technology for Hand tufted

Carpet by All India Carpet Manufacturer’s Association (AICMA) 50,00,000 ------- -Do-

61. Expanding India’s share in Pharmaceutical market of Russia and CIS Countries

1,29,00,000 ------ -Do-

62. Deptt. of Scientific and Industrial Research (DSIR) to promote high technology Co-operation and Trade between India and CIS Countries

20,00,000 ------ -Do-

63. Participation in International apparel & textile exhibition in Cape Town in Nov.2004 by High Commissioner of India Cape Town

2,50,000 ------- -Do-

64. Enhancing Participation of India in Project Opportunities in Africa – by CII

51,50,000 ------- -Do-

65. Study for market development strategy for man-made fiber textiles in USA by SRTEPC

3,75,000 ----- -Do-

66. Study for market development strategy for man-made fiber textiles in CIS by SRTEPC

3,75,000 ------- -Do-

67. Participation in All China Leather Exhibition(ACLE) by ITPO To be decided

------ -Do-

68. Participation in Asia-Pacific Leather Fair (APLF), Hong Kong in April 2006

To be decided

-------- -Do-

69 Organising an India promotion in Robinson Departmental Store, Thailand

To be decided

-------- -Do-

70. Sports Goods & Physical fitness equipment exhibition, March 2005 – Reverse visit of buyers - by ITPO

To be decided

-------- -Do-

81. India-ASEAN Health Summit in Banglore, followed by Reverse BSM – by FICCI

49,86,000 ---------- -Do-

82. Reverse visits of 50 prominent foreign buyers, foreign trade journalists to Tex-Styles India- by ITPO

To be decided

------- -Do-

83. Organising Reverse visits of two delegations from select UK buyers of BPO/ITES – by ESC

39,27,000 ------ -Do-

84. Madhya Pradesh Export Corporation Ltd. Proposal relating to exploration & penetration of Herbal & Natural Products in European Markets

3,82,000 -------- -Do-

85. Madhya Pradesh Export Corporation Ltd. Proposal relating to exploration & penetration of Herbal & Natural Products in United Arab Emirates Markets

To be decided

---- -Do-

86. Study on “Enhancing India-Israel Partnership – Convergence & Constraints”- by FICCI

3,75,000 ----- -Do-

126

Sl. No.

Subject Amount approved for assistance

Amount released

Status

87. Proposal from Indian Machine Tool Manufacturers for market penetration in China – Group Participation at CIMT 2005

To be decided

---- -Do-

88. Proposal from Govt. of AP for market study on Medicinal and Aromatic Plants.

3,75,000 ------- -Do-

89. FIEO’s proposal for study on “Restructuring export benefits – a perspective of small and medium enterprises”

15,00,000 -------- -Do-

127

Annexure – II

The major objectives for which Indian Institute Foreign Trade was established are:

I. IIFT'S OWN INITIATIVES 1. To provide training both short-term and long-term for specialised personnel employed in industry and commerce for international trade and for persons in Government or private employment engaged in fostering international trade; 2. To promote and stimulate action in universities and commerce colleges, to provide education in commerce and marketing for post-graduate students. 3. To establish relation and cooperate with any other agency or organisation having similar objectives; 4. To provide and disseminate information relating to trade of India with other countries; 5. To prepare, print and publish papers / periodicals or reports; II. SPONSORED ACTIVITIES 1. To undertake and promote study and research in problems of export and import trade; 2. To study prospects of export commodity wise and country wise and to

suggest measures to the authorities concerned for accelerated export; 3. To study the conditions of demand and supply in different areas for India’s export products and make a survey of foreign markets and undertakes market research studies; 4. To review the trade policies, trade regulations and trade agreements including GATT regulations in major industrial countries and their impact upon India’s exports and suggest measures to the authorities concerned to further national interests; 5. To study the administrative and other organisation arrangements for quickening export including studies relating to financing of export trade, insurance and guarantee against risk; 6. To establish and maintain libraries and information services concerning various objects for which the Society is established; 7. To constitute regional institutes at convenient places in India or outside to promote the objectives of the Society.

128