o.budget 2015-16 (final) 36 dgft maintains a comprehensive website having available foreign trade...

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OUTCOME BUDGET

2015-2016

DEPARTMENT OF COMMERCE

GOVERNMENT OF INDIA

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CONTENTS

_______________________________________________Chapters Subjects__________ ____Pa ge Nos.

PREFACE 3

EXECUTIVE SUMMARY 4-6 CHAPTER I INTRODUCTION 7-25 CHAPTER II FINANCIAL OUTLAYS AND QUNATIFIABLE 26-45 DELIVERABLES CHAPTER III REFORM MEASURES& POLICY INITIATIVES 46-106 CHAPTER IV REVIEW OF PAST PERFORMANCE 107-158 CHAPTER V FINANCIAL REVIEW 159-166 CHAPTER VI REVIEW OF PERFORMANCE OF 167-191 AUTONOMOUS BODIES & STATUTORY BODIES

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PREFACE

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

convert “Outlays ” into “Outcomes ” by planning expenditure, fixing appropriate

targets and quantifying deliverables of each scheme. The “Outcome Budget” is

an effort of the Government to be transparent and accountable to the people.

In addition to an Executive Summary, the Outcome Budget 2015-16

contains six chapters relating to the Demands for Department of Commerce

under Grant No.12. The chapters discuss the statement of outlays and

outcomes; reform measures; policy initiatives and programmes initiated; review

of past performance; financial review for three years and a review of the

performance of statutory and autonomous bodies.

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EXECUTIVE SUMMARY

Department of Commerce is responsible for regulation, development and promotion of India’s international trade and commerce. The Department of Commerce administers the Demand No.12.

The Outcome Budget 2015-2016 document of the Department of

Commerce highlight the various programmes and activities undertaken/envisaged to be undertaken by the Department in furtherance of the core objective of strengthening India’s foreign trade performance in the context of the related targets and achievements for 2013-14 and first nine months of 2014-15 ( up to December 2014) and targets set for 2015-16, wherever possible in terms of financial outlays, physical outputs/quantifiable deliverables and outcomes.

Scheme of chapters contained in the Outcome Budget 2015-16

documents are summarized below: Chapter I brings out a brief introductory note on the functions of the

Department, Organisational set up, list of major programmes/schemes implemented by the Department, its mandate, goals and policy framework.

Chapter II contains a tabular format, which may be visualized as

“vertical compression and horizontal expansion” of the Statement of Budget Estimate (SBE) included in the Expenditure Budget Vol.II. The main objective is to establish a one to one correspondence between (financial) Budget 2015-16 and Outcome Budget 2015-16. The details comprise of the financial outlays, projected physical outputs and projected/ budgeted outcomes (intermediate/partial and final, as the case may be).

Chapter III highlights the details of reforms measures and policy

initiatives, if any, taken by the Department and how these relate to the intermediate outputs and final outcomes in areas such as public private partnerships, delivery mechanisms, social and women’s empowerment processes, greater decentralization, transparency etc.

Chapter IV indicates the performance during 2013-14 and 2014-15 in

terms of targets already set, the scheme-wise analysis of physical performance with reasons for variations, explaining the scope and objectives of individual programme/scheme, giving their physical targets and achievements.

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Chapter V deals with financial review covering overall trends in expenditure vis-à-vis Budget Estimates/Revised Estimates in recent years, including the previous years. Contains data segregated scheme-wise, object head wise, and institution wise in the case of autonomous institutions and the position of outstanding utilization certificates and unspent balances with States and implementation agencies.

Chapter VI reviews the performance of the Statutory and Autonomous

Bodies under the administrative control of the Department on the same principles as in reporting department’s own performance. Mechanism and the Public Information System to moni tor the physical and financial progress

Each Administrative Division is provided the Guidelines for release of budget to the implementing agencies. The implementing agencies put in place their own mechanism for providing assistance to the ultimate beneficiaries to ensure compliance and monitor the implementation and outcomes. The Department also monitors execution of the scheme and its impact towards achieving the desired objectives. Each Administrative Head monitors and reviews the physical and financial progress of schemes under their charge on a quarterly basis, which is further supervised and overseen by the Financial Advisor and the Secretary as and when required.

The Government is committed to facilitate efficiency, transparency and decentralization of decision making process through intensive use of Information and Communication Technologies (ICT) based tools. To facilitate quick appraisal of inter-ministerial and inter-agency trade related matters, an Executive Video Conference System (EVCS) has been installed in the Department, connecting Secretaries to Government of India and all Chief Secretaries/Administrators of States/UTs over NIC network (NICNET). For bilateral and multilateral international negotiations, a Video Conferencing Studio has been setup in the Ministry of Commerce & Industry. The Department's web site (http://commerce.nic.in) is the major source of information dissemination and provides Government-to-Citizen (G2C) and Government-to-Business (G2B) interface for electronic delivery of services, trade facilitation and monitoring various applications. The access to various e-governance and office automation systems/applications and databases is available to the user in the Department through an Intranet Portal.

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DGFT maintains a comprehensive website www.dgft.gov.in having available Foreign Trade Policy, Hand Book of Procedures, all Notifications, Public Notices, Circulars, minutes, Office Orders etc. on it. Application forms for all the schemes / activities are also available on the website. The endeavour is to digitalize all functions of DGFT offices and bring online transactions between DGFT and its various network partners /stakeholders i.e. Customs, Banks and exporters/importers.

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CHAPTER I

INTRODUCTION

I. Goals & Objectives

The long-term vision of the Department is to make India a major player in

world trade by 2020 and assume a leadership role in international trade organisations commensurate with India’s growing importance. The medium term vision is to double India’s exports of goods and services by 2014-15 over the level of 2008-09 with a long-term objective of doubling India’s share in global trade.

The policy tools being adopted in this context are: the Strategy paper

focusing on the targeted commodity and country wise strategy in the medium term and the Strategic Plan/vision and Foreign Trade Policy in the long run.

Functions

The Department formulates implements and monitors the Foreign Trade policy (FTP) which provides the basic framework of policy and strategy for promoting exports and trade. The Trade Policy is periodically reviewed in accordance with emerging economic scenarios in the domestic and global economy. Besides, the Department is also entrusted with responsibilities relating to multilateral and bilateral commercial relations, special economic zones, state trading, export promotion and trade facilitation, and development and regulation of certain export oriented industries and commodities. Work allocated to the Department, in accordance with the Allocation of Business Rules, 1961.

II. Organisational Set Up

The Department is headed by a Secretary who is assisted by an Additional Secretary & Financial Adviser, three Additional Secretaries, thirteen Joint Secretaries/Joint Secretary level officers and a number of other senior officers. The Department is functionally organized in followi ng eight Divisions:

1. Administration and General Division

2. Finance Division

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3. Economic Division

4. Trade Policy Division

5. Foreign Trade Territorial Division

6. State Trading & Infrastructure Division

7. Supply Division

8. Plantation Division.

The Various offices/organizations under the administrative control of the Department are: (A) three Attached Offices, (B) eleven Subordinate Offices, (C) ten Autonomous Bodies, (D) five Public Sector Undertakings, (E) Advisory Bodies, (F) fourteen Export Promotion Councils and (G) five other Organizations. The broad organizational set up and major role and functions of these bodies are discussed below

(A) Attached Offices

(i) Directorate General of Foreign Trade (DGFT)

This Directorate, with headquarters at New Delhi, is headed by the Director General, an officer of the rank of Additional Secretary. It is responsible for implementing the Foreign Trade Policy with the main objective of promoting Indian exports. It includes implementation of various duty neutralization schemes such as Advance Authorization, Duty Free Import Authorization (DFIA), Duty Entitlement Passbook (DEPB), Deemed Export Duty Drawback and Terminal Excise Duty (TED) refund, Export Promotion Capital Goods (EPCG) and other incentive schemes.

DGFT through its various offices provides facilitation to exporters in

regard to developments in the area of international trade, to help the exporters strategize their import and export decisions in an internationally dynamic environment. DGFT also issues licenses to exporters/importers and monitors their corresponding obligations through a network of 36 Regional Offices. All regional offices provide facilitation to exporters in regard to developments in international trade, i.e. WTO agreements, Rules of Origin and anti-dumping issues, etc. to help exporters in their import and export decisions in an internationally dynamic environment.

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

The DGS&D, with headquarters at New Delhi, is headed by a Director General an officer of the rank of AS/Jt. ecretary. It functions as the executive

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arm of the Supply Division of the Department of Commerce for conclusion of rate contracts for common user items, procurement of stores and inspection of stores, consultancy etc. It has five Regional Supply Offices located at New Delhi, Chennai, Hyderabad, Mumbai and Kolkata. The functions of DGS&D are carried out through its functional wings and supporting service wings. The functional wings are the Supply Wing and the Quality Assurance wing. The supporting service wing includes Administration, Vigilance, Complaints and Public Relations, Planning and Co-ordination, Internal Work Study, Management Information Services & Litigation etc.

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

The Directorate General of Anti-Dumping & Allied Duties was constituted in April, 1998 and is headed by the Designated Authority of the level of Additional Secretary/Joint Secretary. In addition, there are fifteen Investigating and Costing Officers to conduct investigations. The Directorate is responsible for carrying out investigations and recommending, where required, under the Customs Tariff Act, the amount of anti-dumping duty/countervailing duty on the identified articles which would be adequate to remove injury to the domestic industry.

DGAD has brought out publications on Anti-dumping Guidelines,

Application Proforma, Exporter/Importer Questionnaires and a user-friendly booklet on Frequently Asked Questions concerning anti-dumping and anti-subsidy measures and placed on the website of the Ministry of Commerce and Industry (http://commerce.gov.in). Also available on the website is compendium on Anti-dumping laws and all the DGAD notifications, i.e. Initiation notifications, Preliminary and Final Findings, and Corrigendum, etc. pertaining to various anti-dumping cases initiated by the DGAD and all trade notices issued by DGAD.

(B) Subordinate Offices

(i) Directorate General of Commercial Intelligence and Statistics

(DGCI&S)

The Directorate General of Commercial Intelligence & Statistics (DGCI&S) is the premier organization of Government of India for collection, compilation and dissemination of India’s trade statistics and commercial information. This Directorate, with its office located at Kolkata, is headed by the

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Director General. The foreign trade data generated by the Directorate are disseminated through (i) Monthly Press Release brought out every month by the Ministry of Commerce and Industry, (ii) Monthly Foreign Trade Statistics of India by Principal Commodities & Countries, (iii) Monthly Statistics of Foreign Trade of India (Import & Export), and (iv) Quarterly Statistics of Foreign Trade of India by Countries. The Directorate brings out a number of publications on, inter alia, inland and coastal trade statistics, revenue statistics, shipping & air cargo statistics. The dynamic pages of the DGCI&S website www.dgciskol.nic.in are mainly for online data transmission and provide access to data under PIS (Priced Information System).

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

The main objectives of the SEZ Scheme are generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities along with the development of infrastructure facilities. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules. Each Zone is headed by a Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006. There are seven Government Special Economic Zones.

(iii) Pay and Accounts Office (Supply)

The payment and accounting functions of Supply Division, including DGS&D, is performed by the Chief Controller of Accounts (CCA) under the Departmentalized Accounting System. Payment to suppliers across the country is made through this organization at its headquarters in New Delhi and regional offices situated in Kolkata, Mumbai and Chennai. Internal Audit functions are also carried out in respect of 9 CDDO and 16 non CDDO situated at various places in the country. There is a separate accounting set up for supply Division under Department of Commerce. It has a Principal Accounts Office & 4 PAOs dealing with rate contract payments in Delhi. There are three regional PAOs in Kolkata, Mumbai and Chennai.

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

The Pay and Accounts Office, common to both the Department of Commerce and the Ministry of Textiles, is responsible for the payment of claims, accounting of transactions and other related matters through the four

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Departmental Pay & Accounts Offices in Delhi, two in Mumbai, two in Kolkata and two in Chennai. These Departmental Pay and Accounts Offices are controlled by the Principal Accounts Office at Delhi with the Chief Controller of Accounts (CCA) as the Head of the Department of the Accounts Wing.

C) Autonomous Bodies

(i) Coffee Board

The Coffee Board is a statutory organization constituted under the Coffee Act, 1942 and functions under the Administrative control of the Ministry of Commerce and Industry, Government of India. The Board comprises of 33 Members including the Chairman, who is the Chief Executive. The remaining 32 Members representing the various stakeholders are appointed as per provisions under Section 4(2) of the Coffee Act read with Rule 3 of the Coffee Rules, 1955.

The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research Stations at Chettalli (Karnataka), Chundale (Kerala), Thandigudi (Tamilnadu), R.V. Nagar (Andhra Pradesh), Diphu (Assam) and Bio-technology Centre at Mysore apart from the Extension Offices located in Coffee growing regions of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha and North Eastern Region.

The Coffee Board acts as a friend, philosopher and guide to the Coffee

Sector by mainly focusing its activities in the areas of research, extension, development, market intelligence, external & internal promotion and welfare measures. The main functions assigned to the Board are:-

• Promotion of Agricultural and Technological Research in the interest of the Coffee Industry.

• Assistance to Coffee Estates for their development. • Promotion of the sale and consumption in India and elsewhere of the

coffee produced in India. • Securing better working conditions and the provision and

improvement of amenities and incentives for workers. • Management of the other operations as per the provisions of the

Coffee Act.

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Apart from that, the Board gathers statistical and other relevant data concerning the Industry and disseminates the information to various segments of the industry; acts as the recognized spokesperson on behalf of the coffee industry to the Government, media, trade and general public and provides guidance for the overall growth and development of the coffee industry in the country.

The Coffee Board also represents the Indian coffee industry in the

International fora viz. International Coffee Organization, International Science Organizations, Specialty Coffee Associations and works with them for the

benefit of coffee industry.

(ii) Rubber Board

Rubber Board was set up under Section (4) of the Rubber Act, 1947. The Chairman is the Chief Executive Officer of the Board and its head office is located at Kottayam in Kerala. The Board is responsible for the development of the rubber industry in the country by way of assisting and encouraging scientific, technical and economic research; providing training to growers in improved methods of planting, cultivation, manuring, spraying, harvesting; improving processing and marketing of rubber; and collecting statistics from the owners of estates, dealers, processors and rubber product manufacturers. It is also the function of the Board to secure better working conditions and provide/improve amenities and incentives to rubber plantation workers. The Board has nine departments, viz., Administration, Rubber Production, Research, Processing & Product Development, Statistics & Planning, Finance & Accounts, Training, Market Promotion and Licensing & Excise Duty.

(iii) Tea Board

The Tea Board is an autonomous body under the Ministry of Commerce & Industry, Government of India, set up as a statutory body on 1st April, 1954 as per provision under Section (4) of the Tea Act, 1953. It is an apex body, which looks after the overall development of the tea industry. The Board is headed by a Chairman (an officer of the rank of Joint Secretary) and consists of 30 Members representing the Parliament(3), owners of tea estates(8), Government of principal tea growing states(6), workers unions(5), Manufacturers of tea(2), consumers(2) and other interest(2). The Head Office of the Board is located in Kolkata, West Bengal and has 16 regional/ sub-regional offices throughout India and three overseas offices located at London, Moscow and Dubai whose activities are mostly promotional in nature to boost

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export. Tea Board has wide functions and responsibilities which include measures for development of the tea industry and trade, extending financial and technical assistance to the tea growers, manufacturers and producers, export promotion and domestic generic promotion, regulating and controlling different marketing activities including that of tea auctions, facilitating R&D activities, market liaison, assistance to labour welfare activities, maintenance of statistical data, etc.

(iv) Tobacco Board

The Tobacco Board was constituted as a statutory body on 1st January, 1976 under Section (4) of the Tobacco Act, 1975. The Board is headed by a Chairperson (an officer of the rank of Joint Secretary) with 25 other members, and its headquarters at Guntur, Andhra Pradesh. The Board is responsible for the development & regulation of the tobacco industry. The Board also has a Directorate of Auctions at Bangalore and 18 auction platforms across the states of Andhra Pradesh and Karnataka. The primary functions of the Board include regulating the production and curing of Virginia Tobacco; keeping a constant watch on the Virginia Tobacco market in India and abroad; ensuring fair and remunerative prices to growers; maintaining and improving existing markets and developing new markets abroad by devising appropriate marketing strategies. The Board is entrusted with the task of recommending to the Central Government the minimum prices that may be fixed; regulating tobacco marketing in India with due regard to the interest of growers, manufacturers and dealers; propagating information useful to growers, traders and manufacturers and purchasing Virginia Tobacco from the growers when the same is considered necessary for protecting the interests of growers.

(v) Spices Board

The Spices Board was constituted as a Statutory Body on 26th February, 1987 under Section (3) of the Spices Board Act, 1986 by merging the erstwhile Cardamom Board and Spices Export Promotion Council. The Board is headed by a Chairman with its head office in Kochi and is responsible for overall development, marketing of both small and large cardamom industry and promoting the export of all the 52 Spices listed in the schedule of Spices Board Act, 1986.

The primary functions of the Board include increasing the production and productivity of small and large cardamom; development, promotion and regulation of export of spices; granting certificate for export of spices;

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undertaking programmes and projects for promotion of export of spices (like setting up of spices parks, support of infrastructure improvement in spices processing etc.); assisting and encouraging studies and research for improvement of processing, grading and packaging of spices; striving towards stabilization of prices of spices for export and controlling and upgrading quality for export (including setting up of regional quality evaluation labs and training centers). With regard to cardamom, the Board also provides financial and other assistance for cultivation and processing of cardamom; monitoring prices; increasing domestic consumption; improving marketing; issue of license to auctioneers and dealers, conducting electronic auction for cardamom; undertaking/ assisting or encouraging scientific, technological and economic research and improving quality. The Board also implements programmes for development of spices in NE region and organic spices in the country. It also supports programmes aimed at better post harvest practices.

(vi) The Marine Products Export Development Author ity (MPEDA)

The Marine Products Export Development Authority was set up as a Statutory Body formed in 1972 under an Act of Parliament (No.13 of 1972) under Ministry of Commerce and Industry. The authority is responsible for development of marine industry with special form on marine export. The Authority, has its headquarters at Kochi and Field Offices in all the maritime states of India and 4 well equipped Quality Control Laboratories in Kochi, Bhimavaram, Nellore and Bhubaneswar respectively. Besides, it has three trade promotion offices, one in Delhi and another two overseas (Tokyo & New York). MPEDA implements various developmental activities for export promotion and extend assistance to promote aquaculture of exportable items. Deep-sea fishing, value addition and increased production through aquaculture are the major thrust areas identified for augmenting export of marine products. Two overseas Trade Promotion Offices liaise with the importers and various agencies for promoting seafood exports to the respective countries. The Authority has one field office in North East (Guwahati). The Quality Control Laboratories serve the industry by analyzing and disseminating test results of marine products to sustain/promote the sophisticated export market. The Authority functions under the overall supervision of the Chairman, supported by a team of officials both at the Head Office and the field units.

(vii) Agricultural and Processed Food Products Exp ort Development Authority (APEDA)

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The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Agricultural and Processed Food Products Exports Development Authority Act passed by the Parliament in December 1985 (2 of 1986) to promote and develop agriculture exports of its scheduled products.

APEDA, in its endeavor to develop and promote the export of agro products, provides financial assistance to the exporters under the following components of its 12th Plan Scheme “Agriculture Export Promotion Plan Scheme’:-

• Market Development • Infrastructure Development • Quality Development • Transport Assistance

Mechanism for monitoring financial assistance schem es:

• The financial assistance, under the schemes, is provided on reimbursement basis to the exporters.

• The claims are duly supported with invoices, project reports, financial status reports and C.A. certificates etc.

• The proposals are evaluated by the technical committee before recommendations for approval.

• Before the release of the claims, the assets created under the schemes are physically verified by APEDA officials to ensure that the assets have been created as per the “in principle” approval accorded by APEDA.

(viii) Export Inspection Council (EIC)

The Export Inspection Council was set up by the Government of India under Section 3 of the Export (Quality control & Inspection) Act, 1963 to provide for sound development of export trade through quality control and pre-shipment inspection. The Act empowers the Central Government to notify commodities and their minimum standards for exports, generally international standards or standards of the importing countries and to set up suitable machinery for inspection and quality control. The EIC is assisted in its functions by the Export Inspection Agencies (EIAs) located at Chennai, Kochi, Kolkata, Delhi and Mumbai having a network of 30 sub-offices and laboratories to back up the pre-shipment inspection and certification activity. In addition, EIC also designates

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inspection agencies and laboratories to supplement its own activities as required.

The main functions of EIC are (i) to advise the central government regarding measures to be taken to enforcement of quality control and inspection in relation to commodities intended for export and (ii) to draw up programmes for quality control and inspection of commodities for exports.

In the changing Global Scenario, as India’s trading partners are installing regulatory import controls, the EIC has re-fashioned its role to develop voluntary certification programmes besides regulatory export control, especially in food sector. The Council is seeking recognition for its certification by official import control agencies of its trading partners, as per provisions of WTO agreements, to facilitate easier access to their markets for Indian exporters.

(ix) Indian Institute of Foreign Trade (IIFT)

The Indian Institute of Foreign Trade (IIFT) was set up in 1963 by the Government of India as an autonomous organization to help professionalize the country’s foreign trade management and increase exports by developing human resources; generating , analyzing and disseminating data; and conducting research. The Institute visualizes its future role as:

• A catalyst for new ideas, concepts and skills for the internationalisation of

Indian economy. • The primary provider of training and research-based consultancy in the

areas of international business, both for the corporate sector, Government and the student community.

• An institution with proven capability to continuously upgrade its knowledge base with a view to servicing the requirements of the Government, trade and industry through both sponsored and non-sponsored research and consultancy assignments.

(x) Indian Institute of Packaging (IIP)

The Indian Institute of Packaging, a Society registered under the Societies Registration Act 1860, was established on 14th May, 1966 by the Packaging Industry, with the support of Ministry of Commerce & Industry, Govt. of India.

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The Institute started its activities from Mumbai with an objective to stimulate consciousness of good packaging, to undertake and promote study, research and development in Packaging and Package design, to recommend standards for packages, to test, evaluate and certify packages, packaging materials, to provide consultancy services, to study packaging for export, commodity wise and country wise for effective improvement, to provide short term and long term training in Packaging Technology, apart from other objectives as laid down in the Memorandum of Association of the Institute.

(D) Public Sector Undertakings (PSUs) (i) State Trading Corporation (STC)

STC was set up on 18th May, 1956, has played an important role in country’s economy. It has arranged imports of essential items of mass consumption (such as wheat, pulses, sugar, edible oils, etc.) into India and contributed significantly in developing exports of a large number of items from India. STC is today able to structure and execute trade deals of any magnitude, as per the specific requirement of its customers.

(ii) MMTC Limited

MMTC Ltd. was incorporated in the year 1963 for trading in minerals and metals. It is actively involved in exploring overseas markets for exports and sourcing material for domestic needs. With focus on bulk operations and having infrastructure spreading across the country, MMTC has primarily seven core commodity groups viz., fertilizers, Agro commodities, Metals, Coal and hydrocarbons, Minerals, Precious metals & General Trade. The company is recognized as India’s largest international trading company and first Public Sector Undertaking to be awarded “Premier Trading House” status in the country.

(iii) PEC Ltd.

The Project and Equipment Corporation of India Ltd. (PEC Ltd.) was formed on 21st April, 1971 as a wholly owned subsidiary of STC. PEC Limited became an independent Company under the Department of Commerce w.e.f. 27th March, 1991.

(iv) ECGC Ltd. (Export Credit Guarantee Corporatio n of India Limited)

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The Export Credit Guarantee Corporation of India Ltd. (ECGC) Mumbai has the primary objective of supporting the country’s exports by extending Insurance and Guarantee facilities to the Indian exporters and the commercial banks. The paid up capital at the end of 2013-14 was 1100.00 crore.

(v) India Trade Promotion Organization (ITPO)

Following the merger of the Trade Fair Authority of India (TFAI) and the Trade Development Authority (TDA), India Trade Promotion Organisation (ITPO) came into existence in 1992. ITPO is the premier trade promotion agency of India and provides a broad spectrum of services to trade and industry so as to promote India’s exports. These services include organisation of trade fairs in India and abroad, Buyer-Seller Meets and Contact Promotion Programmes apart from information dissemination on products and markets. With its Headquarters at Pragati Maidan, New Delhi and regional offices at Bangalore, Chennai, Kolkata and Mumbai, ITPO ensures representative participation of trade and industry from different regions of the country in its events in India and abroad

(E) Export Promotion Councils (EPCs) Presently, there are fourteen Export Promotion Councils under the administrative control of Department of Commerce. These Councils are registered as non-profit organizations under the Companies Act/Societies Registration Act. The Councils perform both advisory and executive functions. The role and functions of these Councils are guided by the Foreign Trade Policy. These Councils are also the registering authorities for exporters under the Foreign Trade Policy 2009-14.

(F) Advisory Bodies

(i) Board of Trade (BOT)

The Board of Trade was set up on 5th May, 1989 with a view to provide an effective mechanism to maintain continuous dialogue with trade and industry in respect of major developments in the field of International Trade. The Board was reconstituted on 16th July, 2009 under the Chairpersonship of Commerce & Industry Minister. The Board, inter-alia, advises the Government on policy measures connected with the Foreign Trade Policy in order to achieve the objectives of boosting India’s exports.

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(ii) Inter State Trade Council

The Inter State Trade Council was set up on 24th June, 2005 with a view to serve as a mechanism for institutionalized dialogue between the Union and the States in matters relating to trade facilitation and to create a framework for making States partners in India’s export effort. The Council is represented by Chief Ministers of the States or State Cabinet Ministers nominated by Chief Ministers, Lt. Governors or Administrators of the Union Territories or their nominees, Secretaries of the Departments of Commerce, Revenue, Industrial Policy & Promotion, Agriculture & Cooperation, Shipping, Road Transport & Highways, Ministries of External Affairs, Power and Chairperson, Railway Board. It also co-opts the Chairperson-cum-Managing Director of Export Credit Guarantee Corporation, Managing Director of EXIM Bank, Deputy Governor of Reserve Bank of India, Chairperson of Agricultural and Processed Food Products Export Development Authority, Chairperson of Marine Products Export Development Authority and presidents of CII, FICCI, FIEO, ASSOCHAM and Export Promotion Council for EOUs/ SEZs.

(G) Other Organizations (i) Federation of Indian Export Organizations (FIE O)

The Federation of Indian Export Organizations set up in 1965, is an apex body of various export promotion organizations and institutions with its major regional offices at Delhi, Mumbai, Chennai and Kolkata. The main objective of FIEO is to render an integrated package of services to various organizations connected with export promotion. It provides the content, direction and thrust to India’s global export effort. It also functions as a primary servicing agency to provide integrated assistance to its members comprising professional exporting firms holding recognition status granted by the government, consultancy firms and service providers. The Federation organizes seminars and arranges participation in various exhibitions in India and abroad. It also brings out ‘FIEO News’, for creating awareness amongst its member exporters and importers.

(ii) Indian Council of Arbitration (ICA)

The Indian Council of Arbitration, India’s premier Arbitral Institution, is a society registered under the Societies Registration Act, 1860 operating on no profit basis, with its head office in New Delhi and eight branches with a pan India network. The organization originally established in 1965 promotes and

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administers the use of alternative dispute resolution mechanisms in commercial disputes. The main objective of the Council is to promote the knowledge and use of arbitration and provide arbitration facilities for amicable and quick settlement of commercial disputes with a view to maintaining the smooth flow of trade, particularly export trade on a sustained and enduring basis.

(iii) Indian Diamond Institute (IDI)

With the objective of enhancing the quality, design and global competitiveness of the Indian jewellery, the Indian Diamond Institute (IDI) was established as a society in 1978 with its two campuses located at Surat. The Institute is sponsored by the Department of Commerce and patronized by the Gems and Jewellery Export Promotion Council (GJEPC). The Institute conducts various Professional diploma and other courses related to Diamond, Gems & Jewellery. It also offers the three year higher diploma course on Jewellery Design & Manufacture.

(iv) Footwear Design & Development Institute (FDDI )

The Footwear Design and Development Institute was set up in the year 1986 under the Societies Registration Act, 1860 with an objective to provide skilled human resources and technical services to the leather industry. FDDI has a distinct presence not only in higher education, but, also in the spheres of industrial consultancy, research and development and training of industry professionals. The institute conducts wide range of professional programmes in the area of Footwear design, Technology, Management Retail Management, Fashion Merchandising, Visual Merchandising, Marketing, Creative Designing & CAD/CAM and Leather Goods & Accessories Design etc.

(v) National Centre for Trade Information (NCTI)

The National Centre for Trade Information (NCTI) was incorporated on 31st March, 1995 as a company under Section 25 of Companies Act, 1956. The company started functioning w.e.f. March 1996. It has a Board of Directors for administration of its affairs, which includes representatives from Ministry of Commerce & Industry, National Informatics Centre (NIC), Indian Institute of Foreign Trade (IIFT), and Directorate General of Commercial Intelligence & Statistics (DGCI&S).

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The ITPO and NIC are co-promoters of the company and have contributed a sum of Rs.4.00 crore (Rs.2.00 crore each) as Corpus Fund in the equity contribution of the Company. The ITPO provides fully furnished office space and the NIC provides the software and hardware against their equity contribution in kind.

The Centre provides value added information in the field of electronic trading opportunities, live trade leads from World Trade Point Federation (WTPF), trade data analysis and organized export awareness seminars and updating/uploading information on its website.

(vi) Price Stabilization Fund Trust

The Price Stabilization Fund (PSF) Scheme was launched by Government of India in April 2003 against the backdrop of decline in international and domestic prices of tea, coffee, rubber, and tobacco causing distress to primary growers. The growers of these commodities were particularly affected due to substantial reduction in unit value realization for these crops, at times falling below their cost of production. The objective of the Scheme is to safeguard the interests of the growers of these commodities and provide financial relief when prices fall below a specified level. The Scheme is being operationalized through the Price Stabilization Fund Trust.

(vii) Centre for WTO studies The Centre for WTO studies was established at the Indian Institute of Foreign Trade in November 2002. The major objective of the Centre is to conduct research in matters related to Trade in general and WTO in particular. It also provides research and analytical support on a continuous basis to the Department of Commerce on identified issues pertaining to the World Trade Organization. In addition, it has also been tasked to carry out outreach and Capacity Building programmes by organizing seminars, workshops, subject specific meetings, etc., and to be a repository of important WTO documents in its Trade Resource Centre. III. Mandate of the Department

The mandate of the Department of Commerce is the regulation, development and promotion of India’s international trade and commerce through formulation of appropriate international trade and commercial policy and implementation of the various provisions thereof. The work allocated to

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Department of Commerce in accordance with the Allocation of Business Rules, 1961 is given below: A. International Trade

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

• International Agencies connected with Trade Policy (e.g. UNCTAD, ESCAP, ECA, ECLA, EEC, EFTA, GATT/WTO, ITC and CFC).

• International Commodity Agreements other than agreements relating to wheat, sugar, jute and cotton.

• International Customs Tariff Bureau including residuary work relating to the Tariff Commission.

B. Foreign Trade (Goods & Services)

• All matters relating to foreign trade. • Import and Export Trade Policy and Control excluding matters relating to

� import of feature films; � export of Indian films- both feature length and shorts; and � Import and distribution of cine-film (unexposed) and other goods.

C. State Trading

• Policies of state trading and performance of organizations established for the purpose and including - � STC Ltd. and its subsidiary STCL Limited; � Projects & Equipment Corporation of India Limited (PEC); � India Trade Promotion Organization and its subsidiaries; and � Minerals and Metals Trading Corporation (MMTC) and its

subsidiaries. • Production, distribution (for domestic consumption and exports) and

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

• Processing and distribution for domestic consumption and exports of instant tea and instant coffee:-

(a) Tea Board. (b) Coffee Board. (c) Rubber Board. (d) Spices Board. (e) Tobacco Board.

23

D. Management of Certain Services

• Cadre Management of Indian Trade Service and all matters pertaining to training, career planning and manpower planning for the service.

• Cadre Management of Indian Supply Service and all matters pertaining to training, career planning and manpower planning for the service.

• Cadre Management of Indian Inspection Service and all matters pertaining to training, career planning and manpower planning for the service.

E. Export Products and Industries and Trade Facilit ation

• Gems and Jewellery. • Matters relating to Export Promotion Board, Board of Trade and

International Trade Advisory Committee. • Matters relating to concerned EPCs/Export Promotion Organizations. • Indian Institute of Foreign Trade and Indian Institute of Packaging. • Indian Diamond Institute and Footwear Design and Development

Institute. • Coordination for export infrastructure. • Development and expansion of export production in relation to all

commodities, products, manufacturers and semi-manufacturers including

� agricultural produce within the meaning of the Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937);

� marine products; � Industrial products (engineering goods, chemicals, plastics, leather

goods etc.); � fuels, minerals &mineral products; and � Specific export oriented products including plantation crops, etc. but

excluding jute products and handicrafts. • All organizations and institutions connected with the provision of services

relating to the export effort including - � Export Credit and Export Insurance including ECGC;

� Export Inspection Council Standards including Quality Control;

� Directorate General of Commercial Intelligence and Statistics; and

� Free Trade-Zones.

• Projects and programmes for stimulating and assisting the export efforts.

24

F. Attached and Subordinate Offices

• Directorate General of Foreign Trade. • Directorate General of Supplies and Disposals. • Directorate General of Anti-Dumping and Allied Duties and related

matters. • Directorate General of Commercial Intelligence and Statistics.

G. Statutory Bodies

• Marine Products Export Development Authority. • Agricultural and Processed Food Products Export Development

Authority.

I Major Schemes:

(i) Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE): Assistance to States is regularly provided under the Assistance to

States for Infrastructure Development of Exports (ASIDE) Scheme of the Department of Commerce for the purpose of creation of export infrastructure. Detailed guidelines of the scheme are available at website of Department of Commerce.

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

providing assistance to the State Governments / UT Administrations for creating appropriate infrastructure for development and growth of exports. Such involvement will be based on projects to be prioritized by States / UTs to address the critical link both at the point of production and the point of evacuation in the industrial cluster, largely within the contour of the first mile and the last mile consideration.

The scheme shall provide an outlay for development of export infrastructure which will be distributed to the States / UTs according to pre-defined criteria.

The activities aimed at development of infrastructure for exports can be funded from the scheme provided such activities have an overwhelming export content and their linkage with exports is fully established. The scheme shall be exclusively used for creating infrastructure which does not get reflected either in the State / UT plan or in the plans of the Central Ministries or its organization(s), yet such infrastructure is critical for growth of exports.

25

ASIDE scheme has two components: 80% of the funds are allocated to the States/UTs as part of the State Component and balance 20% is the Central component of the ASIDE scheme. Projects under the State component are approved by State level Export Promotion Committee (SLEPC) chaired by the Chief Secretary of the State. Projects under the Central component are approved by an empowered Committee chaired by the Commerce Secretary.

Special emphasis is given to development of infrastructure in North East Region (NER) of India. A Export Development Fund (EDF-NER) exists under ASIDE which funds projects in NE. A total of 100 crore have been earmarked for North East in 2014-15. Out of the allocation made under the State component Scheduled Caste Sub Plan allocation is also necessary as per Planning Commission guidelines. J. Miscellaneous

Purchase and inspection of stores for Central Government Ministries/ Departments including their attached and subordinate offices and Union Territories, other than the items of purchase and inspection of stores which are delegated to other authorities by general or special order.

****

26

CHAPTER – II

FINANCIAL OUTLAYS AND QUANTIFIABLE DELIVERABLES - P HYSICAL OUTPUTS & FINAL OUTCOMES

For the financial year 2014-15, a total outlay of 5854.00 crore was approved for the various Plan and Non-Plan schemes of the Department. Out of this, 2226.00 crore was allocated for Plan outlay and 3628.00 crore was allocated for Non Plan Outlay. As against this, a total outlay of 5091.51 crore has been approved for the year 2015-16; consisting of Plan outlay of 1425.15 crore and Non-Plan outlay of 3666.36 crore. As export promotion and market development is the core of the activities of the Department, assistance in the form of export subsidy at 1,209.93 crore, grants-in-aid at 50.00 crore and interest subsidy to banks at 1,625.00 crore constitutes the bulk of the Non-Plan Outlay. On the Plan side, 910.00 crore has been allocated for Foreign Trade and Export Promotion and 495.00 crore has been allocated for plantation sector (including NER & SCSP).

The scheme-wise details of the financial allocations and the quantifiable deliverables/outputs for the year 2015-16, wherever possible, are given below in the tabular form.

27

OUTLAYS, QUANTIFIABLE DEVLIVERABLES/PHYSICAL OUTPUT S & OUTCOMES

SL.No. Name of Scheme Objective/Outcome Outlay 2015-16 ( Rs. in crore)

Quantifiable/ deliverables/ physical Outputs

Projected Outcomes

Processes/Timelines

Remarks/ Risk factors

1. 2. 3. 4.

5.. 6. 7. 8.

Plan Non Plan IEBR 4(i) 4(ii) 4(iii)

1. Secretariat – Economic Services

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

2.15 72.94 0.00 Exchange of information in a transparent and efficient manner resulting in quicker disposal of work and higher productivity.

2015-16 Administrative Expenses

2. Foreign Trade and Export Promotion

Trade Commissioners

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

0.00 169.99 0.00 2015-16 Administrative expense

Directorate General of Foreign Trade

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

4.97 112.03 0.00 2015-16 Administrative expenses

Total(Foreign Trade & Export Promotion)=

4.97 282.02 0.00

3. Assistance for Export

28

Promotion and Market Development

Duty Draw BackScheme for Deemed Export

Refund of Customs Duties/ Excise Duties paid on inputs raw material used in deemed export products/ Refund of TED.

0.00 1209.93 0.00It is not possible to quantify performance in physical terms as duty is reimbursed transactions/works/ supplies made, classified as deemed export under FTP. However, this scheme results in import substitution, saving of foreign exchange and generation of additional employment in the country.

NA NA NA

Interest Subsidy to Banks

To alleviate the exporters concern.

0.00 1625.00 0.00Performance is not quantified in physical terms as subsidy is given to certain labour intensive and other export oriented sectors to boost the export.

Grant in aid to Export Promotion and Market Development Organisations.

Assist exporters for their participation in approved EPC/Trade Promotion Organisation led export promotion events abroad, undertake export promotion activities for their products and commodities, Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC/Africa/CIS/ASEAN +2)

0.00 50.00 0.00

29

Total(Assistance for Export Promotion and Market Development)=

0.00 2884.93 0.00

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

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

0.00 10.40 0.00As on 31st Dec., 2014 direct employment in the SEZ sector is estimated at 14,13,835 persons and investment is estimated at Rs. 3,22,481.55 crore, 199 SEZs have commenced export and exports from the SEZs were of the order of Rs. 3,48,584 crore in the current year, i.e, 2014-15(up to 31st Dec., 2014)

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

Electronics (SEEPZ) SEZ

0.00 8.45 0.00

Falta 0.00 5.24 0.00 Chennai 0.00 8.25 0.00 Cochin SEZ 0.00 6.38 0.00 NOIDA SEZ 0.00 9.27 0.00 Visakhapatnam SEZ 0.00 7.74 0.00 Indore SEZ 0.00 1.84 0.00 Jaipur SEZ 0.00 0.67 0.00 Manikanchan SEZ

(Kolkata) 0.00 0.83 0.00

Moradabad SEZ 0.00 0.48 0.00 Mahamumbai SEZ 0.00 0.58 0.00 Jodhpur ZEZ 0.00 0.54 0.00 Surat SEZ 0.00 0.81 0.00 Investment in ECGC To provide Export Credit

insurance to exporter and banks.

50.00 0.00 0.00

National Export Insurance Account

To promote projects export from India.

200.00 0.00 0.00

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

250.00 61.48 0.00

30

5. Agricultural and Processes Food Products Export Development Authority

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

120.00 1.00 0.00Plan to set up approx. 15 common pack-house and 5 Transport Units facilities, 20 sheds for storage/ grading, 12 mechanize handling facilities for sorting/grading, 5 pre-cooling facilities with air handling system and cold storage, 3 pre-shipment treatment –fumigation/ X-ray and 13 Integrated post harvest system/pack house. , up/strengthening of labs for exports-20, up gradation/recognition of labs for export testing-15, organization seminars/group activities-5, and at least 360 exporters will be provided transport assistance.

The setting up and up gradation of infrastructure under the scheme will help in maintaining the quality of the produce for exports and also attain incremental export of the APEDA monitored products. Programmes under Market Development Schemes will help in achieving market access in new markets and increase exports of APEDA monitored products in the existing markets. Transport Assistance will enhance competitiveness of our agro products by mitigating transaction/freight cost disadvantage in comparison to the competing countries.

2015-16

6. Marine Products Export Development Authority

To promote marine products abroad, provide assistance for warehousing,

115.00 5.00 0.00 Promotion of value added fish and fishery products,

Continuing scheme

31

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

process, increase acceptance of Indian seafood in overseas markets, help to resolve the trade issues like tariff and non tariff barriers and trade disputes.

7. Other Schemes of Foreign Trade and Export Promotion

. Directorate General of Commercial Intelligence and Statistics

Compilation & Dissemination of Trade Statistics(Non Plan)

1.50 34.55 0.00Compilation and dissemination of foreign trade data through monthly, quarterly and annual publications; meeting the day to day expenses for smooth functioning of the office of DGCI&S.

8. Export Promotion Quality Control and Inspection

Export Inspection Councils

To provide for sound development of export trade through quality control and pre—shipment inspection.

10.00 0.00 0.00 .

Market Access Initiatives

To provide assistance to the departments of Central

200.00 0.00 0.00Financial assistance under MAI is provided

32

Government and organisations of Central/ State Government, EPCs, Registered Trade Promotion Organisations, Apex Trade Bodies, Industrial Clusters & individual Exporters, Commodity Boards for product registration and testing charges for engineering products abroad, Indian Missions, National level institutions like IITs, IIMs, NIFT, Research institutions, Universities and recognized laboratories.

to 239 projects/export promotion events, studies etc.

Centre for WTO Studies

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

16.52 0.00 0.00Physical deliverables are not quantifiable as the outlay is need based.

9. Trade Remedies and Trade Defence

0.00 11.85 0.00

10. Assistance to Institutions IIFT Full fledged campus at

Kolkata especially for imparting training/capacity building for MBA aspirants all over India and

30.00 0.00 0.00Construction of IIFT, Kolkata campus with residential facility for faculty and staff, hostel for students

Capacity building of larger number of students in international business ,

July, 2013

Subject to inherent technological limitations/ constraints in

33

and library/IT and modern facilities for students.

Research studies and Management Development programmes will be conducted in large numbers

achieving projected outputs in cost effective and timely manner and release of grant by DoC

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

10.00 0.00 0.00Upgradation of infrastructural facilities at all centres of IIP including laboratory, Training, library, consultancy & projects & R&D Division.

continuous

FDDI 0.00 0.00 0.00 IIPM 0.00 0.00 0.00 Total (Assistance to

Institutions)= 40.00 0.00 0.00

11. Modernization Up gradation

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

7.50 0.00 0.00No Quantification can be made, with the ongoing computerization. We would be able to process applications online which will lead to more transparent decision making and reduce transaction cost to the exporting community. The achievable results can only be gauged in

• Software Development of new schemes.

• Digital certification of documents.

• Restructuring and improvisation of website of DGFT and all RAs.

• Acquisition of additional bandwidths

FY 2013-14

34

terms of intangible outcomes. As on date Advance Authorization, DFIA and EPCG Scheme is completely online. The message exchange between DGFT and Customs for Advance Authorization, DFIA and EPCG licenses has been implemented for all EDI Ports for authorizations issues after 1.4.2009.

(leased lines/ Broadband)

• Modern Workstations

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

1.50 0.00 0.001) Construction of Meeting Hall: Super structure, internal electrification, etc. 2)Digitization of rare books & document of Commercial Library 3) Updation of frame & conduct of surveys in health and other sectors. 4) Development of software for technical and administrative work. 5) Compilation of inter-state trade data.

Total(Modernization Up gradation)=

9.00 0.00 0.00

12. International Cooperation

35

Contributions to the World Trade Organisations

Annual contribution of India to World Trade Organisations.

0.00 32.00 0.00

Contributions (Other Organisation)

0.00 8.00 0.00

13. International Conferences

0.00 3.50 0.00

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

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

50.00 0.00 0.00Every export infrastructure project carries number of social objectives with like employment generation, growth in per-capital income, growth in human development index, increase in connectivity etc. Hence is not possible to quantify the achievement of objectives by individual project.

NER under ASIDE 0.00 0.00 0.00

Total(ASIDE)= 50.00 0.00 0.00 Jem & Jewellery

Sector

15. Convention centre in Mumbai

0.01 0.00 0.00

16. Common Facility Centre

0.48 0.00 0.00

17. Gem bourse in Jaipur 0.48 0.00 0.00 18. Gems and Jewellery

Park in Mumbai 0.01 0.00 0.00

19. Jewellery Sector 0.02 0.00 0.00 Total(Jewellery Sector)= 1.00 0.00 0.00 Leather and Leather

product Sector

20. New Branches of Establishment of new 99.98 0.00 0.00Construction work is Under

36

FDDI branches of FDDI at Patna and Hyderabad will have the planned capacity to train around 800 students in various capacities. This will help in employment of urban & rural youth and provide trained manpower to the leather industry

in full swing. Implementation

21. Networking Centre(FDDI CNC)

To ensure international level of expertise, infrastructure and support service in the entire domain of leather products sector.

0.01 0.00 0.00Construction action work is in full swing.

Under Implementation

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

0.01 0.00 0.00

Total(Leather & Leather Products Sector)=

100.00 0.00 0.00

Pharma Sector 24. Boisimilar/

Bioequivalent studies 0.01 0.00 0.00

Total(Pharma Sector)= 0.01 0.00 0.00 25. Others Provision for Delegation

going abroad, Delegation from abroad,

0.00 1.60 0.00

26. TEA Increase production, improve quality and value addition and change the product mix for producing more orthodox teas, increase domestic consumption & export of Indian tea by supporting the exporter in their marketing endeavour, extend support

137.00 49.98 0.00Production 1175 mkg Export 220 mkg, Extension Planting 1500 ha, Replanting/ replacement planting 9000 ha, Rejuvenation 1000 ha, Irrigation 2000 ha , New Planting 1000 ha.

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

2012-17 Subject to vagaries of weather conditions-drought, hailstorm, flood etc., availability of water, Aggressive marketing by

37

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

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

alternative beverages colas and fruit drinks, International political scenario staying peaceful and conducive to increase in exports.

27. Coffee 105.00 46.54 0.00 R&D for Sustainable

coffee production To achieve sustainability in Indian coffee production through R&D support, Transfer of Technology through extension centers. Strengthen the Infrastructure of Research & Extension Farms and also by improving labour productivity.

Research support in the form of providing high yielding, disease tolerant plant material, pest, disease management and other package of practices

Seed Production :6 MT, Production of clones 60000 Nos.

2015-16 of XII Plan Period

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

Transfer of Technology & Capacity Building

To transfer the technical knowledge and skills to enable the coffee growers to achieve improvement in production productivity & quality of coffee and market competitiveness.

Transfer of technology from lab to land by the Extension Centres through various methods/tools.

Estate visits –20000 Nos. Field Demonstrations –5000 Nos Trainings – 4500 Nos.

2015-16of XII Plan Period

Development support Scheme

To extend development support for re-plantation, water augmentation, quality up-gradation & Pollution abatement measures. To improve the production, productivity and quality of coffee at the Farm level by providing financial incentives for Re-plantation ofmoribund/unproductive coffee area for Water

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

Replantation Expansion – 6000 ha WAS – 2250units Pollution Abatement- 10 units Interest subsidy-200 (No of beneficiaries)

Investment capacity and quantum of support.

38

augmentation. Quality upgradation and Pollution abatement.

Coffee Development programme in NTA

To undertake coffee development related activities to improved production & productivity in North Eastern Region Development programmers in Non traditional area.

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

Expansion – 2500 Ha. Quality Up gradation – 1250 units


Investment & support from the State Govt.

Coffee Development programme in NER

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

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

Expansion/ Consolidation on –600 Ha. Quality Up gradation – 365 Units

2015-16of XII Plan Period

Investment capacity and quantum of support

Rainfall insurance scheme for coffee

To put in place risk management tools; to provide protection to growers from weather related risks.

Providing incentive to growers for Weather Insurance.

No. of small growers proposed to cover with < 10 ha – 10000


Threat of vagaries of weather on production

Support for Mechanisation of Farm Operations

To provide support to coffee growers to encourage the use of farm machineries to improve productivity and efficiency in carrying out crucial farm operations for coffee in time particularly in the context of farm labour.

Providing subsidy support to growers for procurement of different types of machineries for taking up crucial operations on timely basis & to cope up with labour shortage.

Machineries – 7500 units


Investment capacity of the growers.

Export Promotion of Coffee

To enhance market share of value added and high value coffees in key overseas

Participation in international fairs providing incentives

Incentive for High value coffee –12000 MT In

2015-16 of XII Plan

Price differentials & demand pattern

39

markets to augment export earnings and to enhance market share of Indian coffees in far off key international markets.

for export of value added and high value coffees

centive for High Value Coffee –9000 MT

Period

Market Development To enhance domestic coffee consumption and carry out market research and intelligence and dissemination of information to stake holders

Participation in Domestic Trade Fairs, Exhibitions, Training Programmes for entrepreneurs Market Research & Market Intelligence

Incentive for marketing of

coffee-2500MT


Price volatility and expected investments in the domestic coffee sector

Support for value addition

To achieve value addition in coffee by supporting small and medium entrepreneurs for setting up quality processing untis.

Providing support to the processing activities for value addition

Support for R&G units No. of Unit-37 support for curing works-2units


Investment capacity and quantum of support

28. Rubber 154.00 47.75 0.00 Rubber Plantation

Development & Extension other than North East Planting Tribal Rehabilitation Planting Boundary Protection support for plantation Formation & strengthening of RPS/SHG Farmer education programmes Establishment & maintenance of GPC Women Empowerment Critical Input Supply with price concession

To increase natural rubber production, productivity, enhancement, promotion of extension activities, etc.

1500 ha 80 ha 200 ha 500nos. 130000 participants 75 nos. 200 nos. 15000 ha

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

2015-16

40

Rubber Agro Management Units Entrepreneurship development for farming services Generation of Quality planting material Farm Mechanization Demonstration & Training Centres On Farm advisory services and demonstration Extension Research and capacity building of Extn. Officers North East Planting Tribal Development Planting Boundary Protection Agro management Demonstration Nucleus Farmer Skill upgradation & Group empowerment Advisory & Extension Services Support

150 ha 100 ha 8 lakh nos. 125 nos. 2 nos. 2 lakh nos. 25 nos. 4000 ha 450 ha 2000 ha 1000 ha 12000 nos. 50000 nos.

Strengthening Research (Rubber being a crop with long gestation period, research achievements are not quantifiable. However a few quantifiable parameters are

To develop agro technology through research for increasing NR production by enhancing productivity and disease control measures, maintenance of ongoing field experiments for developing HYVs

Increased availability of location specific and grower friendly agronomic practices to enhance productivity and net income

2015-16

41

provided) Cross pollinations Production of hybrid seeds Hybrids under evaluation Germplasm lines under evaluation Testing of Soil, leaf, ,latex, ethephon and rain guarding materials Field visits and advisories given Supply of buds of nucleus planting materials

13000 nos. 1700 nos. 3650 nos. 6000 nos. 110000 nos. 3200 nos. 13500 nos.

minimize cost of production, reduce the incidence of diseases etc. Enhanced knowledge on scientific aspects related to crop management, improvement, physiology, etc of rubber and rubber technology

Technology Upgradation & Market Development Technology Upgradation Rubber Assistance for rubber processing units Central Testing Laboratory Demonstration and Training Effluent treatment& green technology Market Development Participation in

To develop and strengthen rubber and rubber wood processing sectors to attain international competitiveness in quality and cost Promote marketing of rubber and rubber wood in domestic and international markets

6 nos. 1 no. 2 nos. 2 nos. 7nos.

Enhances efficiency of rubber and rubber wood processing sector in terms of high quality, better methods of waste management Improvement in marketing rubber and rubber wood enhances acceptance of

2015-16

42

international trade fairs Brand Promotion Scheme on “Indian NR”

5000 tonne

Indian rubber and rubber wood based products in international markets.

Human Resource Development Training programmes Tapping Skill Development Labour welfare

To promote HRD in rubber sector, welfare of rubber plantation workers.

3500 participants 3500 participants 26630 beneficiaries

A well trained clientele in the rubber sector improved living conditions for rubber plantation workers.

2015-16

Infrastructure development

Development of infrastructure

Not quantifiable Adequate infrastructure facilities for effective implementation of other plan schemes

2015-16

Statistical Services, Information Services and e-governance Programme

To address the requirements of information and statistics and modernize channels and interfaces of service delivery

Reliable statistics, updated information and ICT based service interfaces.

2015-16

29. Spices Board 95.00 10.35 0.00 Export oriented

production and post-harvest improvement of spices

To Increase production and productivity of cardamom, q development of spices in NE, post harvest improvement of spices,

Export: Quantity : 810,000 MTValue: Rs. 14500 cr.

Overall production development of cardamom, post harvest & quality improvement of spices and increase in export of spices

2015-16 Non plan for administrative expenditure and plan to implement central sector schemes

Small Cardamom (to increase productivity & quality of the produce and to

-Re Planting (1300ha) -Planting material production ( 29 lakh

Increase in productivity and production

2015-16 Availability of equipment for installation and

43

counter drought situation) nos) -Irrigation & land development (400ha.) Improved curing devices (50Nos.)

response from farmers with their investment.

Large Cardamom (to increase productivity & quality of the produce and to counter drought situation)

-Replanting (750ha) -Planting material production (40 lakh nos.) -curing house (30Nos) -Rain water harvesting (30 Nos.)

Increase in productivity and production

2015-16 Availability of equipment for installation and response from farmers with their investment.

Other North Eastern Region Large Cardamom (to

increase productivity & quality of the produce and to counter drought situation)

Replanting (500ha) -Planting material production (20 lakh nos.) -curing house modified bhatti (10Nos.) -Lakadong turmeric New planting (1500ha) -Organic NE ginger (1500 ha)

Increase in production

2015-16 Climate, pests/ diseases and availability of sufficient quality planting material.

Export development & Promotion

To increase export of spices

Infrastructure improvement -Adoption of hi-tech (20nos.) -Technology and process upgradation (40 Nos.) Setting up in house labs (20 Nos.) Quality Certification (30 nos.)

The benefits accrued will be reflected in the increase in volume and value of exports

2015-16

44

Trade Promotion Sending business samples abroad (25nos.) Printing brochures (10 nos) Packaging development (30 nos.)

Capture and expand business opportunities

2015-16

Product development & Research

Product Development and Research (2 nos.)

Introduction of new end products will go a long way to create patentable product with maximum value realization

2015-16

Spices processing in NE Establishing export oriented processing units (3 nos.)

2015-16

Market study abroad 3 nos. To get more opportunities for export

2015-16

Export Oriented Research

Research for crop improvement including post-harvest

Develop high production and post harvest technology

2015-16 Research outcomes based on projects

Quality improvement Quality evaluation and improving quality of spices exported

73000 samples analysis

Provide analytical services (including mandatory testing) with changing quality parameters and analytical standards

Continue analytical services

Contamination of spices

HRD & Capital expenditure for works

Improve skills of people, capital works including new construction, maintenance of Board’s own building etc.)

HRD training for officers and staff of the Board and quality improvement training to growers & traders,

Fine tune knowledge base in view of changing business environment

2015-16 Repeated training

45

exporters etc.(75000 persons)

30.. Cashew Export Promotion Council

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

4.00 0.00 0.00

31. Other Schemes of Plantations

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

0.00 0.10 0.00

Total(Other Schemes of Plantations)=

0.00 0.00 0.00

33.. Supplies & Disposals DGS&D Finalization of Rate

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

10.00 112.77 0.00 Administrative expenses

Grand Total (Grant No1 2)= 1425.15 3666.36 0.00

46

CHAPTER III

REFORM MEASURES AND POLICY INITIATIVES

External Sector and India’s Foreign Trade Policy

The objective of the Foreign Trade Policy (FTP) is to offset the burden of taxes and high cost of trade compared to other countries due to infrastructural inefficiencies and other associated costs and to regulate imports / exports keeping in view environmental and health consideration and national priorities. FTP also provides institutional mechanism to have views of stakeholders. FTP offers a variety of policy instruments for refund of indirect taxes and levies to the exporter. The basic principle is that the taxes are not to be exported. This concept is utilized in our duty remission / exemption schemes and deemed export schemes. It also provides schemes for fiscal incentives to specified products and to exports made to specified markets. The incentives are granted to compensate for high transport costs and offset other disadvantages. The main criteria for identification of products to grant incentives are their export intensity and employment potential.

In view of the decline in export growth (as an immediate relief), the Government provided a policy environment through a mix of measures including fiscal incentives, institutional changes, procedural rationalization, and efforts for enhanced market access across the world and diversification of export markets. Interactions on a regular basis are held with members of Board of Trade, EPCs and exporters for sectoral assessment of exports at regular intervals. Towards achieving these objectives, several steps were announced in the Policy through measures announced under FTP 2009-14, January / March, 2010, Annual Supplement, 2010-11 and 2012-13 and 2013-14.

To provide continuity in policy environment, the existing Foreign Trade Policy

2009-14 has been extended beyond 31.03.2014 until further orders. 2. Ease of Doing Business:

A number of initiatives are being introduced to make export and import competitive and reduce transaction cost. These include reducing the number of documents, enlarging the scope of electronic data inter-change (EDI), promoting acceptance of electronic in place of physical documents and sharing of information amongst Departments dealing with the export imports. Steps are also being taken to convert the remaining non-EDI ports into EDI ports to ensure speedier processing at Customs, enlarge the scope of self assessment and risk management systems at the Customs.

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2.1 India in Ease of Doing Business (DB) 2015 Repo rt of World Bank

India is one of the fastest growing economies in the world. However, India’s position in the ‘Doing Business’ annual reports published by the World Bank continues to be less than favourable. ‘Trading Across Borders’ component of ‘Doing Business’ 2015 Report ranks India 126 out of 189 economies. The report mentions that in India (Mumbai) exporting a standard container of goods requires 7 documents, takes 16 days and costs US $1120. Importing the same container of goods requires 10 documents, takes 20 days and costs US $1250. The following table sums up India’s ‘Trading Across Borders’ Rankings over the years:

INDIA World Bank’s ‘Trading Across Borders’ Rankings ove r the years

Indicator

2015 2014 2013 2012 2011 2010 2009 2008 Overall ranking 126 132 127 127 100 94 97 90

Documents to export (number)

07 09 09 9 9 9 9 9

Time to export (days)

16 16 16 16 16 17 17 17

Cost to export ($ per container)

1,120 1,170 1,120 1,120 1,095 1,055 945 945

Documents to import (number)

10 11 11 11 11 11 11 11

Time to import (days)

20 20 20 20 20 20 20 20

Cost to import ($ per container)

1,250 1,250 1,200 1,200 1,150 1,105 1,040 1,040

“Trading Across Border” one of the important component of Doing

Business 2015 report has following three parameters:

(i) Number of documents required for Export/Import, (ii) Time taken in the process of Export/Import, and (iii) Cost of exporting/importing a consignment.

To compete with other economies of the world, it becomes necessary for us to take steps for reducing transaction cost and transaction time of export/import, which will increase the trade facilitation. It will further facilitate the entrepreneurs to import raw material and capital goods, wherever required, and export their value added and finished produced.

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2.2 e-Trade

The e-TRADE project of Department of Commerce facilitates users to carry out all their foreign trade related, regulatory and other compliances online.

The project emphasizes automation of internal processes for quicker

processing of trade requests. Transparency is induced in the system by reduced personal interface of importers/exporters with Government agencies.

The major stake holders of the project are Customs, Directorate General of

Foreign Trade (DGFT), Seaports, Airports, Container Corporation of India (CONCOR), Inland container Depots(ICDs)/ Container Freight Stations (CFSs), Banks, importers/exporters, agents, airlines/shipping lines.

The project covers the following key services:

• E-delivery of services / clearances by community partners like Customs and Custodians at Sea ports, Airports and ICD/CFSs. These services are extended to exporter, importer, agents etc.

• E-filing of export/import documents by exporter, importer, agents etc. to Customs and Custodians at Sea Ports, Airports and ICD/CFSs.

• Electronic exchange of documents between community partners i. e. Customs and Custodians at Sea Ports, Airports, ICD/CFSs.

• e-Payment by exporter, importer, agents for Custom duties; DGFT’s application and other fee and Charges (handling/freight, etc) of Custodians at Sea Ports, Airports, ICD/CFSs.

2.3 Steps towards creating single window for trad e

India has introduced initiatives that set the stage for creating an electronic single window for trade. India’s trade happens through 12 major ports, 187 minor ports and many private notified ports. These are supplemented by 155 functioning and 89 under development Inland Container Depots (ICDs) and Container Freight Stations (CFSs). For clearance of air cargo, there are 36 functional international airports. There are 138 Land Customs Stations (LCSs) along India’s international borders, of which 66 are functional LCSs. These interface point’s needs to be connected seamlessly to share information with all stakeholders. Important initiative taken by DGFT, Customs, Ports are: 2.4 Important EDI Initiatives Taken by Customs:

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• The customs EDI system (ICES) and its online interface (ICEGATE) connects customs with importers/exporters, customs house agents, airlines and shipping lines, air and sea custodians, banks, the Reserve Bank of India, and government departments such as the Directorate General of Commercial Intelligence and Statistics, Directorate General of Foreign Trade, and the Directorate of Valuation.

• A pilot single window project led by customs and including plant quarantine and FSSAI is being implemented at the Inland Container Deport in Tughlakhabad.

• In 2005, India initiated a risk management system (RMS) in order to decide which containers to inspect and selectively screen only high- and medium-risk cargo for customs examination. The RMS for processing imports is operational at 48 customs offices; some 85% of India’s imports are processed via this system.

2.5 EDI Initiatives Taken by Ports

Port Community System (PCS) was introduced with the objective to provide a single window for Indian port that enables the electronic exchange of information with their private and public stakeholders. 2.6 EDI Initiatives Taken in DGFT

DGFT endeavours to deliver its services on a transparent and efficient basis using tools like Online filing of Applications, Message Exchange with Community Partners, Digital Signatures and Electronic fee payments. Use of EDI at DGFT has enabled faster processing, speedier communication and on-line availability of application processing status. DGFT is committed to enlarge the scope and domain of EDI exchange on a continuous basis. Proposed e-governance initiatives include establishment of message exchange for transmission of scrips from DGFT to Customs, integration of eBRC with CBEC and RBI. Directorate General of Foreign Trade (DGFT) is the first Indian government organization to start Web Based application processing (1997) using Secured Digital Certificates (2048 Byte Key encryption-2004). In the last on decade, many e-Governance initiatives have been implemented to achieve greater transparency and reduce transaction time and costs for the exporting community. Business Process Reengineering along with internal automation has reduced paper work and processing time related to export promotion schemes.

(i). DGFT website is an integrated electronic platform. It

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� Provides information relating to Foreign Trade Policy and procedures and all related documents.

� Allows users’ web based electronic filing of applications for DGFT Schemes/Authorizations to any of the 36 DGFT’s Regional Authorities across the country. The process of applications filing secured with digital signature. It also allows users the facility of electronic funds transfer. The processing status of the requests/applications is also posted on the website of the concerned office.

� Allows users to check and upon information relating to their Shipping bills received from Customs and electronic Bank Realization Certificates (eBRCs) received from Banks.

(ii). All authorizations are being issued online by DGFT; Message exchange with

Customs has been implemented for Advance Authorization, EPCG and DFIA. Exporters can track; monitor their application at the DGFT website.

(iii). All 36 Regional offices of DGFT, spread throughout India have been computerized and connected through Central Server. Networking of these offices through high speed Broadband/Lease Line has enable integration of various applications, message exchange and data bases (in respect of exporter – importer profile, Authorization and blacklisting details).

(iv). A simplified system for issuance of Importer Exporter Code (IEC) online has been introduced in February 2015. The new system has done away with physical issuance of IEC which will be delivered to the applicant online. IEC is mandatory for the exporters and it is communicated online from DGFT to Customs. Integration with PAN database of IT department for validation is likely to be completed shortly. The system allows the new entrepreneurs/exporters/importers to apply online for issue of new Importer Exporter Code or IEC (from the comfort of their home/IT Kiosk; no more visits to the RA's office required) and upload the documents and pay the required fee through Net banking,

(v). A Complaint Resolution System for Resolution of EDI related issues has

been set up. It is actively used by exporters.

(vi). An online system put in place to resolve complaints received through public grievances portal of Department of Administrative Reforms & Public Grievances.

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(vii). Online system for expediting issuance of licences for dual use items (Special Chemicals, Organisms, Materials, Equipments and Technologies [SCOMET]) has been developed and will be made operational soon.

(viii). A system has been established to receive Registration-Cum-membership-Certificate (RCMC) from the Exporter Promotion Councils, Commodity Boards and FIEO in secured online format. DGFT offices will not ask for a copy of the RCMC from the Exporters. 22 EPCs etc. have uploaded the RCMC on DGFT website.

(ix). Electronic Fund Transfer Facility is being used by exporters for payment of application fee. So far 21 banks have signed agreement with DGFT for electronic fund transfer. The facility of accepting payments of application fee through Credit Card is under development and will be launched soon.

(x). Indian Trade Clarification [ITC (HS)] based on internationally acceptable Harmonized System of Coding is compilation of codes for all goods for export/import. Currently the exportability or importability for all goods is indicated in ITC (HS) database available online at DGFT website. Action has been initiated to include information related to online export and import regulatory requirements through an updated online ITC (HS) database by March 31, 2015.

(xi). e-BRC (Electronic Bank Realization Certificate) A BRC is issued by bank after it realizes Foreign Exchange sent by foreign buyers in exporters’ account as payment for goods exported. BRC is subsequently used by many central and state government departments for grant of benefits, refunds to exporters. Processes for BRC issuance and subsequent utilization were largely manual and department centric. Exporters suffered most as they had to run to banks and government departments many times for claiming benefits. e-BRC (Electronic Bank Realization Certificate) project launched on June 5, 2012 created an integrated platform for receipt, processing and subsequent use of all Bank Realization related information by exporters, banks, central and state government departments. e-BRC was made mandatory w.e.f August 17, 2012. This means that from this date DGFT would accept only e-BRCs uploaded by banks onto the DGFT server and not accept physical copies of BRCs if issued by banks on or after this date. Short span of less than 3 years, has brought down the cost of doing business for Indian exporters and enhanced the productivity of banks, DGFT and many other organizations. It has been implemented by Directorate General of Foreign Trade (DGFT). The project reduced transaction time and cost of operations and improved productivity of all stake holders. Project’s success

52

can be recognized from the figures. So far, 95 banks have transmitted more than 1.4 Crores e-BRCs. 13 State Government Departments, including Enforcement Directorate of Government of India have signed MoU with DGFT for sharing of e-BRC data. Estimated annual saving for all stakeholders exceed Rs 2000/- crores. So far e-BRC project has won 2 awards: (a) First prize in Trade Facilitation category of eAsia awards. It was organized by UN-Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) in Ho Chi Minh City, Vietnam on Nov 29, 2013. (b) CSI Nihilent e-governance Award of recognition. It was organized by the Computer Society of India at Visakhapatnam on 14th Dec 2013. Initiatives taken during 2014-15 (i). On-Line RTI: DGFT is now integrated with the RTI online system of the

Department of Personal and Training with effect from 2nd February, 2015. This will enable the citizen to seek information from DGFT and its Regional Authorities under relevant provisions of the RTI Act 2005. All the CPIOs and the Appellate Authorities in the DGFT headquarter and the Regional Authorities all over the country have been provided with User ID and Password to access the RTI Online System. All the CPIOs and the Appellate Authorities can monitor the number of applications received, disposed and pending at any point of time on the online system. The online system would also generate alerts as the deadline for mandatory 30 days draws near.

(ii). On-line Inter-Ministerial Consultation: For the Policy implementations,

different committees have been set up; a few of them are NORM Committees, Committees for SION. Members of these Committees are from different Ministries, namely Ministry of Textiles, Department of Electronic and Information Technology(DeitY), Ministry of Food Processing Industries, Defense Research and Development Organization(DRDO) Department of Chemicals & Petrochemicals(DCPC), Department of Animal Husbandry, Dairying and Fisheries(DADF). Work on an on-line Inter-Ministerial Consultation has been initiated. It will reduce the time to take decisions.

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(iii). DGFT on Twitter: DGFT launched its Twitter handle https://twitter.com/dgftindia) on July 14. DGFT notifications, Public Notices are uploaded on Twitter.

Task Force on Transaction Costs in Exports

High Transaction costs of exports remain an area of concern as it adversely affects competitiveness. To assess the procedural bottlenecks affecting India’s exports and imports and to understand issues involved in depth, Government has so far constituted 2 Task Force on Transaction Costs.

First Task Force on Transaction Costs, to identify the elements of transaction

costs that could be addressed in the short term with the objective of providing immediate benefits to traders was set up in 2009 and its Report was released on 8.2.2011. Report listed measure that resulted in reduction of approximately Rs. 2100 crores of transaction cost.

Second Task Force on Transaction Costs Status was constituted in April,

2013, and its report was submitted in July 2014. The objective was to identify areas where Indian exporters face administrative impediments and suggest guidelines/steps for removing procedural complexity. Second Task Force on Transaction Costs was constituted under chair of DGFT and with members from concerned administrative ministries and Trade and Industry bodies. The task force members visited ports and other points of contact of exporters with a view to find solutions to reduce transaction costs. The Second Task Force has submitted its report in July 2014. Terms of Reference of the Task Force:

• To identify reasons for high transaction cost in exports. • To identify areas, where Indian exporters face administrative impediments

that lead to increase in transaction cost. • Compare procedural complexities in exports between India and its major

competitors. • Suggest guidelines/ steps for removal of procedural complexities drawing

from the global best practices. • Suggest guidelines/steps to move towards transparent and increasingly

paperless processing through digital platform.

Suggestions have been invited from Central government departments, State Government/ UTs, Export Promotion Councils / Trade Bodies etc. and academic institutions (IIMs, JNU, and DU etc). The Task Force has identified issues by frequent deliberations and wide consultations, including visiting important points of trade transactions for gaining first hand understanding of the underlying issues.

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The Second Task Force identified 63 issues for reduction of transaction cost. Following is a list of top 10 issues that adversely affect large number of exporters and hence require urgent attention:

a) Listing the export and import related NOC requirements in ITC (HS) Book b) Automate grant of NOC using online processing c) Enable Customs EDI to accept digitally signed documents d) Integrating Excise and Customs procedures for excise rebate of duty on

exports of goods in a common IT platform e) Allow Self - Certification of Certificate of Origins f) Simplify Let Export Order issuance procedure g) Rationalization of Bank charges h) Automating the export obligation discharge process for EPCG scheme i) Delegation of powers to expedite export and import clearance j) Allowing export commercial shipment through courier mode for B2C e-

Commerce export. Concerned ministries are taking steps to implement the suggestions.

Port Infrastructure development: Jawaharlal Nehru P ort Trust (JNPT)

To identify bottlenecks in export import process at JNPT related to integration of Port, Customs and Gate Automation and streamlining it, an inter-ministerial team of officials from Department of Revenue, Department of Commerce, Ministry of Agriculture, DIPP, Food Safety and Standards Authority of India (FSSAI) etc. led by DGFT visited Jawaharlal Nehru Port (JNPT). DGFT has identified the following tasks for priority completion: (i). Integration /Message Exchange of Port and Customs system, in order to

dispense with Form e-13/e-11 (ii). Integration of JNPT software system with the Customs EDI (iii). Amending JNPT’s system to include additional fields to expedite checking by

CISF at the port gate (iv). Automating ‘Gating’ system (v). Facilitating inter-terminal Movement at JNPT through ‘Virtual gate’ (vi). Automating issuance of Delivery Orders/ Cargo release order (vii). Development of parking sites (viii). Easing of Road congestion and streamlining of traffic movement at JN Port

(ix). Installation of Railway Signals at the Hind CFS (x). Improving Message Exchange between Custom, CFS, Ports and CHA /

Forwarders

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Conversion of Non EDI ports to EDI ports and extens ion of ICEGATE to SEZs

At present there are 344 Ports or Customs points through which India’s exports and imports take place. But due to infrastructural constraints only 126 of these Ports are Electronic Data Interchange (EDI) enabled and the rest of the 218 Ports are still operating on manual system or in Non EDI mode. As a result, at present only a part of India’s Export and import data is captured through EDI mode at Customs (For exports, 88.61% transactions accounting for 65.19% of value). However, remaining data (For exports, 11.39% transactions accounting for 34.81% of value) called Non EDI data is still transmitted with a greater time lag (One month).

In order to ensure faster clearances of export and import goods and for reducing transaction costs and time, all the remaining Non EDI Ports also need to be converted to EDI Ports in a time bound manner. It would also result in capturing of import and export data on real time basis and would lead to better regulation as well as uniform policy and procedures in handling of consignments. Increasing Efficiency of Custom Clearance

The major agency responsible for border clearance is Customs. Custom is gradually increasing the coverage of 24*7 operations to cover more ports. Currently, Customs clearance of all export goods takes place on 24x7 basis from four major Air Cargo Complexes/airports i.e., Bangalore, Chennai, Delhi and Mumbai. In addition, clearance of specified import and export items or exports made under Free Shipping Bills is allowed from four ports i.e. Chennai, JNPT, Kolkata and Kandla and also from thirteen 13 Air Cargo Complexes in the country. The facility is set to be extended to 14 more sea ports. As a result 17 Air Cargo complexes and 18 Sea Ports would become operational on 24x7 basis.

Along with Customs, Additional Drug Controller (ADC), under the Drug Controller General of India (DCGI), Textiles Committee under the Ministry of Textiles, Food Safety and Standards Authority of India (FSSAI) under the Ministry of Consumer Affairs and Wildlife Regional Office (WLRO) under the Ministry of Environment and Forests will need to expand its infrastructure available at the ports to extend working hours. Reduction in Documents

Steps have been taken to reduce the number of documents required for export and import comparable with international bench mark. Now, for the consignments that do not require specific clearance/permits, the number of

56

documents required for exports and imports would be reduced to three. In this regards inter-ministerial meeting has been held on November 26,2014.

It is hoped that the above steps will lead to increase in export and import and will make India a more favoured destination for doing business. This will automatically enhance India’s Doing Business Rank.

3. Niryat Bandhu Scheme

3.1 The Niryat Bandhu Scheme was announced as part of Foreign Trade Policy 2009-14 on 13th October, 2011 to focus on mentoring the first generation entrepreneurs in the field of international trade in a systematic manner. While an overall allocation of Rs. 23.23 crore has been made for the Plan period (2012-17), an amount of Rs. 2 crore has been allocated for the current financial year. The major components of the Scheme are us under:

• Preparation and development of material for use of new IEC holders and its printing;

• Training of new entrepreneurs (IEC holders) every month in each RA; • Training/meetings/seminars at towns of export excellence on specific topic; • Seminars at industry associations, universities, management schools, etc.; • Capacity Building of ITS/DGFT officers; • Development of Business Excellence Support Team (DGFT-BEST).

3.2 During the year 2014-15 against the allocation of Rs. 2.00 crore during this

financial year, an amount of Rs. 1.78 crore has so far been sanctioned to the RAs for different programmes under the Scheme. The following achievements have been reported by the RAs under various components of the Scheme:

• 2200 new IEC holders have attended the sensitization programmes being undertaken by the RAs, subsequent to the grant of an IEC;

• 8 seminars have already been undertaken by the RAs at various Towns of Excellence/Industrial Clusters during this year at Ahmedabad, Varanasi, Kolhapur, Moradabad, Surat, Hubli (two) and Belgaun;

• 17 seminars have been undertaken by the RAs in various Universities/Management schools etc. to sensitize the students on the issues of international trade wherein more than thousand students have attended the programmes. Some of the institutes where programmes have taken place are TNA University, Coimbatore, University of Jammu, Regional Centre for Entrepreneurship Development, Panchkula, Engineering College Sitapur, Dr. Gour Hari Sighania Institute of Management, Kanpur;

57

• 10 officers of ITS have undergone in-service training through IIFT, New Delhi

as a part of their capacity building on emerging issues of international trade during 2014-15;

• Development of videos on specific thematic issues has been taken up through FIEO, New Delhi to help a prospective exporter in getting through the procedures such as filing an application for IEC, bank realization certificate, shipping Bill etc. Two such videos have already been developed and uploaded on DGFT channel in YouTube;

• Preparation of training modules have been taken up through IIFT, New Delhi for class room (basic) and online (advanced) training programme for the new IEC holders who desire to take a step forward in knowing about international trade and/or improving their export business.

4. Preparation of FTP (2014-19)

4.1 For the formulation of the Foreign Trade Policy (2014-19) consultations were made since the month of January, 2014. Different exporter’s organizations including FICCI, CII, FIEO, ASSOCHAM, PHD Chamber of Commerce and Industry made presentations to the officers of the DGFT for proposals to be incorporated in the New Foreign Trade Policy(2014-19). Other Central Ministries like Ministry of Micro, Small and Medium Enterprises(MSME),Office of Development Commissioner(MSME),Ministry of Textiles, Department of Electronic and Information Technology(Deity), Ministry of Food Processing Industries, Defense Research and Development Organization(DRDO, ) Department of Chemicals & Petrochemicals(DCPC), Department of Animal Husbandry, Dairying and Fisheries(DADF) which were involved in the revision of the FTP were invited and their proposals were examined. Since Ministry of Finance/ Department of Revenue play a major role in the Foreign Trade Policy, therefore, a series of meetings between officers of DGFT and Department of Revenue were held. FTP is likely to be finalized shortly.

5. Chapter-wise Scheme 5.1 Duty Remission Schemes

Duty neutralization / remission schemes are based on the principle and the commitment of the Government that “Goods and Services are to be exported and not the Taxes and Levies”. Purpose is to allow duty free import / procurement of inputs or to allow replenishment either for the inputs used or the duty component on

58

inputs used. Brief of these schemes along with the amendments carried out during the current year are given below.

5.1.1 Advance Authorization Scheme

Scheme allows duty free import of Inputs, along with fuel, oil, and catalyst etc., required for manufacturing the export product. Inputs are allowed either as per Standard Input Output Norms (SION) or on adhoc Norm’s basis under Actual User condition. Norms are fixed by Technical Committee i.e., Norms Committee. This facility is available for physical exports (also including supplies to SEZ units & SEZ Developers) and deemed exports including intermediate supplies. Minimum value addition prescribed is 15%, except for certain items. Exporter has to fulfill the export obligation over a specified time period, both quantity and value wise. The facilities to club authorizations were simplified and powers decentralized to RAs. Certain items which are prohibited for export have been allowed for export under advance authorization scheme, subject to stipulated conditions. An option has been provided for redemption/regularization of old cases/pending cases of default in meeting Export Obligation (EO) by authorisation holder on payment of applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty, the interest component to be so paid would not exceed the amount of customs duty payable for this default.

5.1.2 Duty Free Import Authorization (DFIA)

DFIA Scheme has been made operational from 01.05.2006. One of the objectives of the scheme is to facilitate transfer of the authorization or the inputs imported as per SION, once export is completed. Provisions of DFIA Scheme are similar to Advance Authorization scheme. A minimum value addition of 20% is required under the scheme. 5.1.3 Schemes for Gems & Jewellery Sector

Gems & Jewellery exports constitute a major portion of our total merchandise exports. It is an employment oriented sector. Exports from this sector suffered significantly on account of the global economic slowdown. Duty free import / procurement of precious metal (Gold / Silver / Platinum) from the nominated agencies are allowed either in advance or as replenishment. In addition, exporters of Gems & Jewellery items are allowed access to duty Free Import of consumables for export production up to a certain specified percentage of FOB value of previous years’ export. List of items allowed for duty free import by Gems & Jewellery sector had been expanded by inclusion of additional items such as Tags and labels,

59

Security censor on card, Staple wire, and Poly bag. This will reduce the cost of the product to some extent.

5.1.4 Authorization issued under different Schemes

During 2013-14 increase in number of authorization issued in Duty Free Import Authorization (DFIA) was 10% whereas in Advance Authorization it was 3.5%. FOB value of export in DFIA becomes around 2.3 times whereas FOB value of exports increased by 10% in advance authorization during 2013-14. The results of April – Dec., 2014 predicts that Advance Authorization Scheme will give an increase of more than 8% in number of authorization whereas there will be a fall in the number of authorization for the DFIA.

Schemes 2012-13 2013-14

Apr 2014 to Dec 2014

Advance Authorization

Number of Authorization 18,994 19,673 16048 CIF value of imports (Rs. Crore) 2,25,666 1,76,903 122793 FOB value of Exports (Rs. Crore)

2,80,557 3,09,503 255914

Duty Free Import Authorization (DFIA)

Number of Authorization 2,834 3,128 1546

CIF value of imports (Rs. Crore) 9,433 27,834 18073

FOB value of Exports (Rs. Crore)

14,560 33,817 22245

Replenishment License (Gem & Jewellery)

Number of Authorization 70 64 23

CIF value of imports (Rs. Crore) 129 45 16


691 701 603

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CIF Value of Authorizations Issued (Value Rs. Crore)

5.2 Reward/Incentive /Neutralization Schemes

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Advance DFIA Gem & Jewellery

18,9

94

2,83

4

70

19,6

73

3,12

8

64

1604

8

1546

23

2012-13 2013-14 April 2014 to December 2014

0

50,000

1,00,000

1,50,000

2,00,000

2,50,000

Advance DFIA Gem & Jewellery

2,25

,666

9,43

3

129

1,76

,903

27,8

34

45

1227

93

1807

3

16


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5.2.1 Vishesh Krishi and Gram Udyog Yojana (Specia l Agriculture and Village Industry Scheme) [VKGUY]

Objective of this scheme is to promote employment generation in rural and

semi urban areas. Duty Credit Scrip’s are granted with an aim to compensate high transport costs, and to offset other disadvantages. Vishesh Krishi and Gram Udyog Yojana has been gradually expanded to include export of Agricultural Produce and their value added products; Minor Forest Produce and their value added variants; Gram Udyog Products; and Other Products, as notified under Appendix 37A of HBP vol.1, from time to time. Exporters of notified products are entitled for Duty Credit Scrip equivalent to 5% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards. Few products are also eligible to additional 2% over & above the 5% as admissible for specified products in Appendix 37A of HBP vol.I. In case of Status Holder, higher incentive is available in the form of duty credit scrip (Agri. Infrastructure Incentive Scrip) equal to 10% of FOB value of agricultural exports, limited to Rs. 100 crore per annum, for products covered under ITC HS Chapters 1 to 24. This includes incentive under VKGUY scrip. This scrip’s can be utilized to import Capital Goods and equipments for Cold Storage Units, Pack houses etc. This scrip’s will also be eligible for import of following specified equipments for setting up of Pack-houses:

i. Packing grading equipments for fruits and vegetables ii. Equipments for ripening of fruits including ethylene generator iii. Adiabatic humidifiers for cold rooms iv. Gas sensor and controlled system covering Co2, ethylene and oxygen

levels v. Ethylene scrubbers vi. Co2 scrubbers vii. Blast freezers for IQF plants viii. Doors for gastight rooms, applications like CA, Banana/fruit ripening ix. Nitrogen generators x. Gas controlling systems for CA stores xi. Bulk bins for CA stores xii. Reach stackers for cold stores and warehouses xiii. Belt driven conveyors for bulk handling of cargo xiv. Gantry cranes, unloading, mechanized loaders for bulk and break bulk

cargo For import of Cold Chain Equipment, this Incentive Scrip shall be freely transferable amongst Status Holders as well as to Units in the Food Parks. Now transferability of the Agric Infrastructure Incentive Scrip shall be allowed to supporting manufacturer of the status holder. Such transferability would have to be endorsed on the Agri. Infrastructure Incentive Scrip from relevant RA.

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5.2.2 Focus Market Scheme [FMS]

For offsetting high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these countries, “Focus Market Scheme” has been launched w.e.f.1.4.2006. Exporters of all products to notified countries (as in Table 1 & Table 2 of Appendix37C of HBP vol.1) shall be entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports. Cayman Islands, Newzealand, Latvia, Lithuania, Bulgaria (w.e.f. 1.1.2013) and Norway (w.e.f. 1.5.2013) have been added to Focus Market Scheme (FMS). The scheme now covers a total of 125 markets. Additional duty credit scrip @1% FOB value of exports is given to markets listed in Table 3 of Appendix 37C with effect from 1.4.2011 under Special Focus Market Scheme. 2 new markets have been added to the Special Focus Market Scheme (Special FMS) taking the total countries under Special FMS to 50. These countries are Eritrea (w.e.f. 1.1.2013) and Venezuela (w.e.f. 1.5.2013). 5.2.3 Focus Product Scheme [FPS]

To incentivize export of such products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products, a Scheme called Focus Products Scheme, has been introduced w.e.f. 1.4.2006.Exports of notified products (as in Appendix 37D of HBP vol.1) to all countries (including SEZ units) shall be entitled for Duty Credit Scrip equivalent to 2% or 5% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards. Further, Bonus Benefits @2% of FOB value ofexports is given over and above the existing benefit for specified products covered under Appendix 37D for exports made from 1.4.2010 onwards. So far, more than 1000 products have been covered at 8 digit level under the Scheme, which include leather products and footwear, handloom products, handmade carpets and other textile floor covering, handicrafts, coir and jute products, technical textiles, engineering products, green technology products, electronic products, etc. 5.2.4 Market Linked Focus Products Scrip [MLFPS]

To give significant boost to market penetration of specific product in specified markets, a variant under Focus Product Scheme called Market Linked Focus Products Scrip has been introduced from 1.4.2008. Export of products / sectors of high export intensity / employment potential (which are not covered under present FPS List) would be incentivized @ 2% of FOB value of exports (in free foreign exchange) under FPS when exported to the Linked Markets (countries),which are not covered in the present FMS List, as notified in Appendix 37D of HBP vol.1,for

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exports made from 27.8.2009 onwards. Further, all Garments covered under Chapter 61 and Chapter 62 of ITC HS Classification of Export and Import Items have been extended the benefit of duty credit scrip @2% of FOB value of exports to USA and EU from 1.4.2011 till 31.3.2012. This benefit has now been extended till 31st March 2014. Presently the products covered under the scheme include Motor vehicles, auto components, bicycles and parts, apparels, knitted and crocheted fabrics, pharma products, value added plastic and rubber goods, glass products, dyes and chemicals, household articles, Machine Tools, Earth Moving equipments, Transmission towers, electrical and power equipments, steel tubes, pipes and galvanized sheets, Compressors, Iron and Steel Structures, Auto components, Three wheelers and cotton woven fabrics etc. The countries covered under the Scheme include Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Ukraine, Australia, New Zealand, Cambodia, Vietnam, Japan and China amongst others. There are around 5000 products so far covered at 8 digit level. Table 2 of Appendix 37D of HBP vol. I may be referred for the list of products and countries. Under table 3 of Appendix 37-D, some new items under Textile & Leather category are added in the scheme for export between 01.03.2014 to 31.08.2014. 5.2.5 Served From India Scheme [SFIS]

The objective of the Scheme is to accelerate growth in export of services so as to create a powerful and unique ‘Served from India’ brand, instantly recognized and respected the world over. Indian Service Providers, of services listed in Appendix 41 of HBP vol.1, which has free foreign exchange earning of at least Rs.10 lakh in current financial year shall qualify for Duty Credit Scrip. For Individual Indian Service Providers, minimum free foreign exchange earnings would be Rs. 5 lakh. Service Providers are entitled to Duty Credit Scrip @10% of the free foreign exchange earned. However, Services and Service Providers listed in Para 3.6.1 of Hand Book of Procedures vol.1 are not eligible. Import are allowed with actual user condition for import of capital goods, office equipments, consumables, vehicles which are in the nature of professional equipment to the service provider, etc. SFIS scrip’s can be utilized for purchase of Motor vehicles. It can also be used for manufacturing sector business of the service provider. With effect from 18.4.2013, SFIS benefit is based on Net Foreign Exchange earned. Now Goods imported / procured against SFIS scrip’s can be alienated on completion of 3 years from the date of import / procurement. 5.2.6 Status Holders Incentive Scrip (SHIS)

With an objective to promote investment in up gradation of technology of some specified sectors such as leather, textiles, Jute, handicrafts, plastics, basic Chemicals, rubber products, glass and glassware, paper and books, paints and

64

allied products, plywood and allied products, electronics products, sports goods and toys, engineering products viz. iron and steel, pipes and tubes, Ferro-alloys etc., Status Holders shall be entitled to a scrip @ 1% of FOB value of exports. During 2009-10 SHIS is entitled for six sectors, viz: Leather Sectors (excluding finished leather); Textiles and Jute Sector; Handicrafts; Engineering Sector (excluding Iron & Steel, Non-ferrous Metals in primary or intermediate forms, Automobiles & two wheelers, nuclear reactors & parts and Ships, Boats and Floating Structures); Plastics; and Basic Chemicals (excluding Pharma Products), and later expanded for exports in 2010-11, 2011-12 and 2012-13 with addition of sectors listed in Para 3.10.8 of Hand Book of Procedures vol.1, [subject to prescribed exclusions as specified in Policy] with actual user condition. This shall be over and above any duty credit scrip claimed/availed under Chapter-3 of FTP. Status holders are issued Status Holders Incentive Scrip (SHIS) to import Capital Goods for promoting investment in up-gradation of technology of some specified lab our intensive sectors like Leather, Textile & Jute, Handicrafts, Engineering, Plastics and Basic Chemicals. It is now decided that up to 10% of the value of these scrip’s will be allowed to be utilized to import components and spares of capital goods imported earlier. Such a dispensation was not available earlier. These scripts were subject to Actual User Condition and were not transferable. Since a status holder may or may not have manufacturing facility, limited transferability of SHIS has been allowed. However, such Transferee shall have to (a) be a status holder and (b) have manufacturing facility. SHIS can be transferred to a manufacturer group company of the scrip holder even though the group company is not a status holder. Group Company is defined in Para 9.28 of FTP. Such transfer will have to be endorsed by relevant RA. The above scheme has sunset on 31.03.2013. 5.2.7 Incentive on Incremental Exports

It has been decided to grant incentive on incremental exports made during the period January-March 2013 over the base period January-March 2012. The incentive would be granted to an IEC holder at the rate of 2% on the incremental growth of exports made to USA, EU and Asian Countries during this particular quarter i.e., January-March 2013. Certain exports like deemed exports, service exports, third party exports, export-turnover of SEZ units etc. would not be eligible under the scheme. Focus is on increasing export to certain specific destinations. Incremental Exports Incentivisation Scheme (IEIS) has been extended for the year 2013-14. 53 Latin American and African countries have been added in the list w.e.f. 1.4.2013. 5.2.8 Issuance of Scrips under different Schemes

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Focus Market and Focus Product Scheme had an increase in number of Scrips in the range of 30% to 41% during 2013-14. The increase in value of Scrips and FOB value of exports in these schemes is in the range of 56% to 70%. During 2014-15, the growth in these indicators would not be as high as it was in 2013-14. “Vishesh Krishi & Gram Udyog Yojana” of India and Status Holder Incentive Scrips Scheme showed an increase in number of Scrips during 2013-14 but it is expected that there will be fall in the number of Scrips during 2014-15. Under Incremental Export Incentivisation Scheme number of Scrips issued during April to Dec., 2014 are 348 whereas; in its 1st year during 2013-14 only 14 Scrips were issued.

Schemes 2012-13 2013-14 Apr 2014 to Dec 2014

Focus Market Scheme

Number of Scrips 19794 27290 21641

Value of Scrips (Rs. Crore) 1,692 2,724 2203


48,209 75,059 63341

Focus Product Scheme

Number of Scrips 78,445 1,10,242 91300



2,03,345 3,34,238 300747

Vishesh Krishi & Gram Udyog Yojana

Number of Scrips 24,232 23,453 17962



67,869 59,346 50171

Served From India Scheme

Number of Scrips 1,908 2,484 1575


Status Holder Incentive Scrip

Number of Scrips 4,504 6,106 2309


Incremental Export Incentivisation Scheme

Number of Scrips NA 40 348

Value of Scrips (Rs. Crore) NA 16 38

Value of Scrips (Rs. Crore) 15,072 18,497 14,274


3,55,378 4,74,907 4,15,421

NA- Not Applicable

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5.2.8 Norm Committee

Norm Committee performs the function of fixation of Standard Input Norm (SION), revision of existing SION and fixation of adhoc Norms for various products. This is an Inter-Ministerial Committee, wherein representative of concerned administrative Ministries also represented. There are Seven Norms Committee dealing with various commodity groups and their progress during the period April, 2014 to December, 2014 is given below. Norms Committee (NC)

Commodity group

Number of cases where adhoc-norms fixed

Fixation of new SION

Modification in existing SION

Total

NC-I Engineering 387 Nil Nil 387 NC-II Electronics 300 Nil Nil 300 NC-III Pharma ‘Organic 903 Nil 4 907 NC-IV Chemicals &

Allied 511 Nil Nil 511

NC-V Textiles 313 Nil Nil 313 NC-VI Food, Marine,

Misc. 78 1 Nil 79

NC-VII Plastic & Rubber 421 Nil Nil 421

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5.2.9 Policy Relaxation Committee (PRC)

In terms of Para 2.5 of FTP, DGFT may pass such orders or grant such relaxation or relief, as he may deem fit and proper, on grounds of genuine hardship and adverse impact on trade. DGFT may, in public interest, exempt any person or class or a category of person from any provision of FTP or any procedure and may, while granting such exemption, impose such conditions as he may deem fit. Such request may be considered only after consulting with Norms Committee/EPCG Committee/PRC, as the case may be. During the financial year 2014-15, PRC received 1546 requests for relaxation in Policy/Procedure upto December 2014. Out of which 950 cases were disposed of either on file or through 16 meetings conducted upto 30.12.2014. 5.2.10 EPCG Scheme: Changes in Zero duty EPCG Sche me.

The scheme allows import of capital goods on zero duty for pre-production, production and post production as well as for computer software systems subject to an export obligation(EO) equivalent to 6 times of duty saved amount to be fulfilled in 6 years reckoned from Authorization issue-date. However, Authorization under EPCG Scheme shall not be issued for import of any Capital Goods (including Captive plants and Power Generator Sets of any kind) for Export of electrical energy (power), Supply of electrical energy (power) under deemed exports, Use of power (energy) in own unit, and Supply/export of electricity transmission services. Import of 2nd hand Capital Goods is not permitted under this scheme.

• The scheme also allows import of spares, moulds, dies, jigs, fixtures, tools and refractory for initial lining; for existing plant and machinery (imported earlier, under EPCG or otherwise). However, import of spares is not allowed in respect of capital goods sourced indigenously.

• The scheme also requires maintenance of average level of exports achieved by the exporter in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, except for certain specified sectors/ products as per Para 5.7.6 of Handbook of Procedures. EPCG Authorization can also be issued for import of capital goods under Scheme for Project Imports. Export obligation for such EPCG authorizations would be six times of duty saved.

• The scope of the EPCG scheme has been extended to Common Service Providers (CSP) who are designated / certified as a Common service Providers by the DGFT, Department of Commerce or State Infrastructural Corporation in a Town of Export Excellence. The Bank Guarantee (BG) shall not exceed the duty saved and can be given by CSP or by any one of the users or a combination thereof, at the option of the CSP.

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• A person holding an EPCG license may source the capital goods from a domestic manufacturer instead of importing them. The domestic manufacturer supplying CG to EPCG authorization holder shall be eligible for deemed export benefits under Para 8.3 of the Policy.

• EPCG license may be issued for retail sector for import of capital goods required by the retailer to create modern infrastructure in the retail sector.

• EPCG Authorizations holders can opt for Technological up-gradation of

existing Capital goods imported under EPCG authorizations subject to conditions stipulated in Para 5.8 (a) to (e) of FTP.

• Authorization holder shall produce to the concerned RA a certificate from the Jurisdictional Central Excise Authority, confirming installation of Capital Goods at factory /premises of authorization holder or his supporting manufacturer(s) /vendor(s) within six months from date of completion of import. However, extension in time for Installation of Capital Goods upto a maximum period of 18 months from the date of completion of import may be considered by the concerned RA.”

• Specific EO in respect of export of Green Technology Products shall be 75%

of the normal EO as mentioned in the Para 5.1 of FTP. The list of Green Technology products is given in Para 5.23 of HBP v1.

• For units located in J&K, North Eastern Region including Sikkim, specific EO

shall be 25% of the EO as stipulated in Para 5.1 of FTP.

• The validity period for import of capital goods under zero duty EPCG Scheme is 18 months.

EPCG authorization for annual requirement

EPCG Authorization can also be issued for annual requirement to exporters having past export performance (in preceding two years). The annual entitlement in terms of duty saved amount shall be up to 50% of FOB value of Physical Export, Service Exports and / or FOR value of Deemed Export, in preceding licensing year. Export Obligation (EO) conditions under EPCG Scheme

• EO is to be fulfilled by export of goods manufactured/service(s) rendered by applicant.

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• Exports shall be physical exports. Certain deemed exports will also be counted towards fulfilment of EO. The export obligation under the Scheme shall be over and above, the average level of exports achieved by the EPCG authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, other than the categories exempted for this purpose.

• There is no request of maintaining average EO for certain sectors like handicraft, handlooms, cottage, tiny sector, agriculture, aqua-culture (including fisheries), animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericulture, Carpets, coir and Jute.

• Extension in EO period may be granted for a period of 2 years subject to

certain conditions specified in Para 5.11 of HBP. • For BIFR units, EO period may be extended as per BIFR package or 9

years, if not specified by BIFR.

• Wherever the holder of any EPCG Authorization is granted relief under Corporate Debt Restructuring (CDR), then such Authorization holder may be allowed EO extension of 3 years (from the date of approval of the CDR mechanism/scheme). Such extension in EO will not attract any Composition fee and will be in addition to (and not in lieu of) the granting of EO extension, if any, available under Para 5.11 of HBP v1.

• Import of Capital Goods shall be subject to Actual User Condition till EO is

completed. Post Export EPCG Duty Credit Scrip(s)

A new scheme ‘Post export EPCG Duty Credit Scrip(s)’ has been introduced w.e.f. 05.06.2012 with following salient features:

(a) EPCG Duty Remission Scheme shall be available to exporters who intend to import/ procure capital goods on full payment of applicable duties and choose to opt for this scheme.

(b) Duty paid on capital goods (excluding portion CENVATed/ Rebated) shall be remitted in the form of freely transferable duty credit scrip(s).

(c) Specific EO under this scheme shall be 85% of the applicable specific EO, if

the imports of such capital goods had taken benefit of duty exemption. (d) Duty remission shall be in proportion to the EO fulfilled.

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(e) These duty credit scrip(s) can be used for payment of applicable custom

duties for imports and applicable excise duties for domestic procurement. (f) All provisions of the existing EPCG scheme shall apply insofar as they are

not inconsistent with this scheme.

Issuance of EPCG Authorization

Schemes 2012-13 2013-14 Apr 2014 to Dec 2014

EPCG

Number of Authorization 19116 18976 14988

Duty saved Amount (Rs. Crore) 14,820 11,750 9238


1,09,243 77,713 57680

5.3 Export Oriented Units (EOUs), Electronics Hard ware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-T echnology Parks (BTPs)

Units undertaking to export their entire production of goods and services (except permissible sales in DTA), may be set up under the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP) Scheme, Software Technology Park (STP) Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering and rendering of services. Trading units are not covered under these schemes. A committee under the Chairmanship of DC, NSEZ was constituted by Department of

0

20000

40000

60000

80000

100000

120000

Number of

Authorization

Duty saved Amount

(Rs. Crore)

FOB value of Exports

(Rs. Crore)


Export Promotion Capital Goods

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Commerce in December, 2010 to review and revamp the EOU Scheme. The Committee submitted its report in July, 2011. Department of Commerce and Department of Electronics and Information Technology (DeitY) notified the Electronics Hardware Technology Park (EHTP) and the Software Technology Park (STP) schemes. Both these schemes were notified as 100% EOU Schemes under the Exim policy of the Ministry of Commerce and Industry. The two schemes are administered by the Inter Ministerial Standing Committee (IMSC) under the Chairmanship of Secretary, Deity. IMSC in its meeting held on 5th July, 2012 resolved that the STP and EHPT schemes need to be revamped in order to give a push to IT / ITES and ESDM sectors. The Sub-Group which was constituted for this purpose has made a number of suggestions for revamping the STP and EHPT schemes. In April, 2013 Sub-Group of the Inter-Ministerial Standing Committee has submitted their report on revision of the STP and EHPT Schemes. The report in this regard is under consideration with Deity. 5.4 Deemed Exports

“Deemed Exports” refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian Rupees or in free foreign exchange. Deemed Exports Scheme is for encouraging import substitution and mainly covers such supply of goods which are otherwise allowed at Zero custom duty. For deemed exports supplies, benefit of advance authorization, duty drawback of taxes paid on inputs and refund of terminal excise duty paid on final goods / exemption, as applicable as per Foreign Trade Policy, are available. Based upon the inputs / suggestions received from the Apex Chambers of Commerce &Industries, FIEO, EPCs & internal deliberations, the provisions of deemed exports were rewritten and notified on 05.06.2012. These provisions have been aligned with the corresponding customs notification. The clarifications issued by the Policy Interpretation Committee have been incorporated. The benefits available for deemed exports under different categories have been consolidated in a tabulated form, under para 8.4 of FTP. Policy Circular No.15 dated 21.02.2013 has been issued clarifying benefits for supplies against ARO / Invalidation. Similarly, Policy Circular No.16 dated 15.03.2013 has been issued making it clear that where ab-initio exemption of duties is available, no refund of TED will be provided. Notification No.4 dated 18.04.2013 has been issued incorporating the changes made under paras 8.3 & 8.4 of FTP. Policy Circular No.9 dated 30.10.2013 has been issued clarifying the applicability of duty drawback as per col ‘B’ of All Industry Rate and requirement of certificate regarding CENVAT declaration as contained in the Public Notice No. 35 dated 01.03.2011. 6. Matter related to Export

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6.1 Change in Export Policy of major Commodities

6.1.1 The Policy Provisions of sensitive agricultur al commodities during the 2014-15 are:

Export of following agricultural products which are sensitive in nature due to

their direct impact on the public as well as domestic trade and industry are monitored regularly by the Government and suitable modifications are made from time-to-time in order to ensure adequate availability for domestic consumption and to keep the prices under check.

(i) MEP on export of edible oil in branded consumer packs of upto 5 Kgs is USD 900 per MT.

(ii) The quantity ceiling for export of Edible Oils, Non-basmati rice, Pulses, Wheat, Milk powders to Bhutan has been removed.

(iii) Export of cotton yarn was subject to registration of contracts with the Textile Commissioner. The registration requirement for export of cotton yarn (Tariff Codes 5205, 5206 & 5207) has been dispensed.

(iv) Registration of contract with DGFT, for export of cotton (Tariff Codes 5201 & 5203) has been dispensed with.

(v) The quantity ceiling for export of organic sugar has been removed.

(vi) Export of onion has been moved from “STE” to “Free” regime, thereby dispensing with the requirement of Canalization for export of onion.

(vii) Minimum Export Price (MEP) for export of potato and onion has been revised time to time. Now the applicable MEP for export of onion is USD 300 per MT and for USD 450 per MT.

6.2 Export Authorization

Export Cell deals with licensing of the items which are Restricted in the ITC (HS) Classification for export (other than SCOMET items). The applications for issuance of export authorization for Restricted Items e.g. as Onion seeds, live animals, seaweeds, husk, fodder, chemicals under Montreal Protocol are considered by an Exim Facilitation Committee (EFC) chaired by Addl. DGFT with representatives of various Ministries and Departments. Such cases are decided on the basis of written inputs/comments and /or No Objection Certificate of concerned

75

Ministry/Department. Meeting of EFC is generally held once in a month. In addition, clarifications on Export Policy are also issued.

Out of the total 47 applications received for export permission during 2014-15 (up to 31st December 2014), as many as 22 applications (which constitute approx. 51% share) have been given export permission and remaining 23 are pending with the concerned Ministry/Deptt for want of written technical comments.

6.3 SCOMET

“Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items are dual-use items having potential for both civilian and WMD (Weapons of Mass Destruction) applications. Export of such items is either restricted, requiring an authorization for their export, or is prohibited. The export policy relating to SCOMET items is given in Paragraph 2.49A of Hand Book of Procedures Vol. –I, 2009-14 and the list of such items is given Appendix 3 to Schedule 2 of ITC (HS) Classification of Export and Import Items. There are eight categories of such items.

All applications for export of SCOMET items as well as applications for on-site verification are considered on merits by an Inter-Ministerial Working Group (IMWG) in the DGFT under the Chairmanship of Additional Director General of Foreign Trade as per guidelines and criteria laid down in Para 2.49A of the Handbook of Procedure Vol. 1. Members include, inter-alia, MEA, Cabinet Secretariat, DRDO, ISRO, DAE and Deptt. Of C&PC.

No export permission is required for supply of SCOMET items from DTA to SEZ. However, Export permission is required if the SCOMET items are to be physically exported outside the country from SEZ.

There is an increasing trend in export of SCOMET items from India. The total value of export of SCOMET items in 2012-13 it was US$ 354.12 million while during 2013-14, US$ 108.35 million and in 2014-15 (upto December 2014) it is US$ 65.14 million. 7. Matter related to Import 7.1 Import Authorization Import Cell considers the applications for import of items which are restricted for import. The applications for issuance of import authorization for import of such Restricted Items (such as Live Animals, Scrap of rubber / plastic, Refrigerant Gases

76

and Arms and Ammunition etc.), are considered by an Exim Facilitation Committee (EFC), consisting of representatives of various Administrative Ministries and Departments, headed by Jt.DGFT. Such cases are decided on receipt of written technical inputs / comments of concerned Administrative Ministry / Department are received. Apart from the above it also grants permission under para 2.11 of FTP with the approval of DGFT for the items (such as Maize and Oats etc), import of which are allowed through State Trading Enterprises.

Out of total 922 applications received in Import Cell during 2013-14 (up to March, 2014), as many as 522 applications (which constitute 56.61 % share) have been given import permission/ EXIM facilitation Committee meetings are also held on every month on third Thursday. 7.2 Pre-Shipment Inspection Agency (PSIA)

As per Para 2.32 of HBP Vol.I, import of any form of metallic waste or scrap will be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise. Import of metallic waste and scrap is permitted only if the importer furnishes to the customs at the time of clearance of goods the Pre-shipment inspection certificate as per the format in Annexure 5B from any of the PSIAs recognized by DGFT, to the effect that the consignment was checked for radiation level and scrap does not contain radiation level in excess of natural background. By Public Notice No. 104 dated 23/3/2012, the following amendments have been made inPara 2.32.2A of HBP Vol.1 (http://dgft.gov. in/Exim/2000/PN/PN11/pn10410.htm) – (a) Application for recognition in respect of PSIAs have to be made in Performa

prescribed in Appendix 5-A. (b) For applicants based in India application fee will be 7500/= and for applicants

based abroad the application fee will be US $200. (c) The applications will be considered by an Inter – Ministerial Committee. (d) The PSIAs will be issued a recognition certificate valid for three years.

However, DGFT has the right to suspend/cancel such a certificate at any time during the 3 year term. At the end of 3 years PSIA has to make a fresh application for further recognition.

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(e) PSIA shall issue Pre-Shipment Inspection Certificate (PSIC) in the format given in Appendix 5-B.Para 2.32.2 B (Responsibility and Liability of PSIA and Importer) has been inserted in the HBP Vol.I (to appear after Para 2.32.2.A).

(a) In case of any mis-declaration in PSIC, PSIA would be liable to pay a

penalty up to 10 Lakh (if the agency is based in India) or up to US $20,000/- (if the agency is based in foreign country), in addition to suspension/cancellation of recognition.

(b) The importer would also be responsible for import of any material in contravention of the declaration as required under Para 2.32.2 of HBP Vol.I and would be liable to pay penalty up to 10 Lakh. 48 PSIAs have been given recognition as on 31.03.2014, of which one agency has been de-listed and the period of recognition of one agency has ended.

8. Rupee Export Credit Interest Rate Subvention Sc heme

The Rupee Export Credit Interest rate Subvention Scheme was introduced in 2007 to reduce cost of credit for the exporters in respect of pre and post shipment Rupee Export Credit for certain employment oriented export sectors with 2 percentage points per annum on rupee credit availed of by exporters. The scheme was available to certain specific sectors like Handicrafts, Carpets, Handlooms, SMEs, Readymade Garments, Processed Agriculture Products, Toys, Sport Goods, 235 tariff lines of Engineering Sector and 6 tariff lines (Textiles Made Ups) under Chapter 63 of ITC HS Classification. In addition, all exporters who are micro and small enterprises, irrespective of the export sector, are beneficiaries of this scheme. In respect of MSME sector, interest subvention is extended to all MSME sectors irrespective of export product. The rate of Interest Subvention was increased from 2% to 3% with effect from 1st August 2013. The validity of the scheme was upto 31st March 2014. Further extension of the scheme beyond March 2014 has not been notified by the Government. Regional and Multilateral Trade Relations (RMTR) With a view to effectively disseminating information on the FTAs signed by India as well as to feed into the process of review of these FTAs, the Department of Commerce chalked out a plan for conducting FTA outreach programmes across the country during 2013-14. As of April, 2014; 10 outreach programmes were organised. Five of these outreaches were organised by the Confederation of Indian Industry (CII) at New Delhi, Chennai, Bangalore, Jaipur and Bhubaneswar. The Federation of Indian

78

Chamber of Commerce and Industry (FICCI) organised five programmes in Mumbai, Ahmedabad, Kochi, Chandigarh and Lucknow. The participants in these outreach programmes were primarily exporters and importers in that region. Questionnaires and some information material were circulated to the stakeholders by CII and FICCI prior to the outreach in order to make these programmes more effective. The meetings have been useful in sensitising the stakeholders. The focus of these outreaches was on the major FTAs signed by India namely the ASEAN-India Trade in Goods Agreement; the Comprehensive Economic Partnership Agreements (CEPA) with Japan and Korea and the Comprehensive Economic Cooperation Agreement (CECA) with Malaysia. Presentations were also made on the opportunities in the services sector in the CEPAs with Japan and Korea. There was dissemination of information on the RCEP negotiations in the outreaches in New Delhi, Kochi and Chandigarh. During 2014-15, Department of Commerce has organised three such FTA outreaches in January, 2015 in collaboration with CII, FICCI and FIEO in Kolkata, Bengaluru, Indore and will be organising more such programmes in Hyderabad, Kanpur, Vadodara, Jaipur, Guwahati and Pune during February-March, 2015. National Export Insurance Account (NEIA)

A separate Fund viz. the National Exports Insurance Account (NEIA) was set

up in 2006. A sum of 946 crores has been funded by the Government of India (GoI) till financial year 2013-14. The total corpus of NEIA as on 31.03.2014 was 1313.79 crore, constituting Government’s contribution, premium, fees and interest accrued. Cabinet on 10.09.2014 increased the corpus to 4000 crore with the risk writing capacity of 20 times the corpus.

The objective of NEIA is to provide credit insurance support to those projects exports which are beyond the underwriting capacity of ECGC/Exim Bank Buyers Credit. The NEIA is maintained and operated by NEIA Trust, a Public Trust set up jointly by the Department of Commerce and ECGC.

Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme is a Plan Scheme formulated to act as a catalyst to promote India’s exports on a sustained basis, based upon ‘Focus Product’ and ‘Focus Market’ concept. The Scheme was revised after a thorough review and extensive consultation with all the stake holders in the year 2006 and the

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revised scheme was launched with effect from January, 2007. The Scheme was further revised in the year 2014 with effect from 4th August, 2014. Under the revised scheme, additional components for assistance to pharmaceutical industry and interest equalization support to project exports have been added.

Under the scheme, assistance is extended to the Departments of Central

Government and organizations of Central/State Government, Export Promotion Councils, Registered Trade Promotion organizations, Commodity Boards, Recognized Apex Trade Bodies, Recognized Industrial Clusters and individual Exporters for product registration and testing charges for engineering products abroad, Indian Missions, National Level institutions like Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), National Institute of Fashion Technology (NIFT) etc., Research Institutions, Universities and recognized laboratories.

The activities eligible for financial assistance under the Scheme are Marketing Projects Abroad, Capacity Building, Support for Statutory Compliances, Studies, Project Development etc.

199.99 crore have been allocated during 2014-15 for MAI scheme. During the year, financial assistance under MAI is provided to 239 projects/export promotion events, studies etc. to eligible agencies which include export promotion councils, trade promotion organizations, national level institutions, etc.

Marketing Development Assistance (MDA) Scheme

To facilitate various measures being undertaken to stimulate and diversify the country’s export trade, Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce.

The Non-Plan scheme supports the following activit ies:

(i) Assist exporters for their participation in approved EPC/Trade Promotion

Organizations led export promotion events abroad. (ii) Assist Export Promotion Council (EPCs) to undertake export promotion

activities for their product(s) and commodities. (iii) Assist approved organizations/ trade bodies in undertaking exclusive

nonrecurring innovative activities connected with export promotion efforts for their members.

(iv) Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2).

(v) Residual essential activities connected with marketing promotion efforts abroad.

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Initiatives in Plantation Sector

Plantation crops have been the traditional exports of India providing employment to millions of workers. Ageing bushes/plants which result in low productivity, high cost of production, low value addition, lack of strong buildup of ‘Brand India’ and volatility of international demand and prices are the major constraints facing the sector. Some of the major initiatives undertaken in this sector during the year to promote this sector include: A. TEA Reform measures in Tea Sector:

1. Tea Plantation Development Scheme The main objective of the Tea Plantation Development Scheme is to

encourage the tea plantations in undertaking various field oriented developmental measures aimed at increasing field productivity and decreasing cost of production. In order to achieve these objectives, and given the high cost of production mainly due to the labour cost accounting for more than 60% of the total cost of production and high fluctuation in the tea prices, it has become necessary to continue the scheme during XII Plan period for providing financial incentives in the form of subsidy for a set of activities to be undertaken by the growers. When compared to XI Plan scheme, the following changes have been proposed for the XII Plan period.

• Extension Planting : Given in the imbalance in demand and supply,

extension planting was not encouraged during the previous two plan periods. It was however allowed on a limited scale for small growers particularly in NE Region and Hilly areas. During the course of last ten years while the overall supply was around 130 million kgs the domestic demand was in the order of 170 million kgs leading to a gap of 40 million kgs. In order to bridge this gap it is proposed to extend support for new planting by way of subsidy @ 25% of the planting cost.

• Irrigation: The irregularity in the monsoon (both in terms of lack of adequate

rainfall and prolonged dry period) is forcing the industry to invest on irrigation infrastructure. Moreover, large scale replanting would bring large area under young bushes. These young sections require irrigation much more than older sections. Hence, irrigation should be a focus area for the XIIth Plan period. Currently the irrigation subsidy being offered is 25% of the total expenditure subject to a maximum of Rs. 10,000 per Ha. Moreover, the total expenditure per garden is also capped at a maximum of Rs. 10 Lakhs. Considering the

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current cost of creating irrigation facility – tube wells, check-dams, sprinklers, drip irrigation etc (Estimated to be around Rs. 80,000 per ha), it is proposed to offer subsidy @ 25% of the actual cost not exceeding Rs.80,000/ha and raise the ceiling limit per garden to 200 ha.

• Subsidy for Field Mechanization: Due to growing problem of labour scarcity across the producing regions (more predominant in South India), the industry needs to explore use of mechanization and use of new technology for activities that are traditionally undertaken manually. Accordingly, it is proposed to incentivize use of following field mechanization equipment’s:

• Mechanical harvesting equipment

• Pruning machines

• JCV machines

• SPTF: Special Purpose Tea Fund was formulated for assisting the tea gardens in undertaking replanting, replacement planting and rejuvenation of old aged tea bushes so that the industry becomes more viable, competitive and financially sustainable. During XI Plan, Tea Board through Special Purpose Tea Fund (SPTF) tried to address this issue by extending a loan component in addition to subsidy. However, the loan component has not received adequate response. The performance of the scheme has been critically reviewed by the CAG through a separate performance Audit and recommended for adequate compensation of the crop loss due to uprooting. Thus it is proposed to provide subsidy @ 25% of the unit cost to encourage producers going for accelerated uprooting and replanting only and to withdrawal of loan component.

2. Tea Quality Up-gradation and Product Diversifica tion Scheme (QUPDS)

The main objective of QUPDS is to serve as a catalyst for tea factories/ blending/ packaging units to undertake investments in modern technologies/ processes (either for expansion or for replacement), which would eventually enable quality improvement, and higher realizations through the production of better quality/ value added teas. The important components to be supported under the scheme would include:

� Settlement of XI Pending machinery up gradation cases � Value addition in blending/packaging units � Warehousing activity � Setting up of speciality tea units

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� Quality assurance certification – ISO/HACCP and Organic Tea Certification

� Incentive for Orthodox / Green Tea production in order to increase production of exportable tea

3. Market Promotion Scheme

The project entails the following tea promotion activities to be conducted by the Board on actual cost basis, which would be undertaken during the 12th plan period. The above has dual objectives viz. (i) creating greater awareness & knowledge about the regional varieties of teas in domestic as well as overseas markets and (ii) increasing consumption of tea in the domestic market. Such active promotion will highlight the health & wellness benefits of tea drinking as well as reposition it as the lifestyle beverage so as to create awareness and a positive disposition amongst the consumers, especially youth and thereby increase the overall consumption of tea.

Domestic promotion

(i) Undertaking domestic campaign aimed at increasing per capita tea consumption (PCC) in the states where PCC is low (average PCC is 0.73 kg per annum in India at present).

(ii) Generic campaign in print & electronic media based on wellness benefits & lifestyle aspects.

(iii) Promotion of single-origin teas jointly with Tea Associations are proposed to be undertaken in India through road shows, generic as well as specialty tea campaign, protection and promotion of various intellectual properties of the Board (Darjeeling GI, Assam (Orthodox) GI, Nilgiri (Orthodox) GI etc).

(iv) Viral advertising through established social networks like Twitter, Face book for propagating the diversity & richness of Indian tea during domestic promotion.

Incentives to Exporters/Associations

(i) Transport subsidy for direct export of Tea from Amingaon Dry Port in Assam – it is proposed to be enhanced from Rs. 1.5/kg in the 11-th Plan to Rs. 2.0/kg in the 12-th Plan.

(ii) For promoting exports of packaged teas of Indian origin packed & exported from India, the costs incurred by individual Indian companies for in-store promotions, launch of promotional campaign, development of web sites and/or publicity literatures etc are proposed to be

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reimbursed to the tune of 25%. This ‘Brand Promotion’ Scheme covers all Indian exporters selling 100% Indian teas in packets less than 1 kg and having “India Tea Logo” printed on their packs. More weightage will be given for exports of high value teas.

Overseas promotion

(i) Origin Promotion to build equity for Indian tea in international markets - It is proposed to promote Darjeeling, Assam, Nilgiri & Kangra teas and the respective logos among consumers. Promotion would be undertaken with inputs and advice from the Industry.

(ii) Promotion of India teas are proposed to be undertaken in the overseas markets by the Board from the H.O. and three foreign offices through road shows, participation in trade fairs & exhibitions, generic as well as specialty tea campaign through Tea Councils in U.K., Germany, Canada and U.S.A., participation in fairs & exhibitions, trade facilitation through arranging Buyer-Seller Meets, exchange of trade delegations (inbound & outbound), information dissemination through gathering of market intelligence, protection and promotion of various intellectual properties of the Board (Darjeeling GI, Assam (Orthodox) GI, Nilgiri (Orthodox) GI etc).

(iii) Viral advertising through established social networks like Twitter, Face book for propagating the diversity & richness of Indian tea during overseas promotion.

Project 5-5-5

(i) Campaign for Indian tea for restoring the position of Indian tea in select markets viz. U.S.A., Russia, Kazakhstan, Iran and Egypt were selected for extensive & intensive promotional intervention through execution of five specific activities over five years through share funding (Project 5-5-5) . The above countries were selected based on the parameters of “Market Attractiveness & Potentiality” and Ability to compete by the Indian Tea Industry”. The foremost objective of the entire exercise would be to position “Indian Tea” as an over-arching umbrella brand under which five identified promotional activities would be designed, coordinated and implemented through reinforcing “Brand India” connects amongst the target trade and consumers. This is expected to result in prominent brand recall for “Indian Tea” over the short to medium term so as to translate into significant increase in value market shares in the targeted markets for years to come. The country-specific activities identified have been planned for implementation through an event management/advertising agencies, who would be guided by

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dedicated Project Management Groups (PMG) constituted for the respective countries.

Legal and Consultancy

Legal charges on account of retainer fees to the empanelled Legal Attorneys toward effective protection of a number of Intellectual Properties (Logos and words pertaining to each single-origin teas like Darjeeling, Assam, Nilgiri, Kangra and India Tea Logo) across various jurisdictions in the world.

Trade-related activities

In order to facilitate export of quality teas in world class packaging, infrastructure like Integrated Tea Park consisting of common infrastructure like processing, blending, packaging, warehousing & testing laboratories is proposed to be created. Creation of warehouses in close proximity to the ports is also proposed to be set up. This will enhance the quality of tea being exported from the country thereby enhancing the unit price realization of tea and also establishment of brands in the world market.

Publicity material

Production of appropriate publicity materials for trade and consumer education in various international languages is including films, audio visual aids, gift items, publicity literature, postures etc depicting Indian tea as a brand. 4. Human Resource Development Scheme

There are various schemes run by state and central govt. that cater to the

various labour welfare related activities like education, drinking water, sanitation, health, etc. currently being covered under Tea Board Schemes. At the same time, it has also been observed that it has become financially unviable for the tea industry to continue to bear the social cost burden in their garden estates. Thus Plantation labour welfare measures have been proposed to fill in the critical gaps in the welfare of tea garden workers, particularly in health and education; improving skills at all levels from workers to managers through extensive training.

5. Research and Development Schemes

The activities covered under this scheme includes – meeting recurring

expenditure on some of the identified items of TRA and UPASI-TRF, up-gradation of DTR&DC, supporting research projects of Tea Research Institutes and other recognized Institutes on quality upgradation, Integrated Pest and Disease

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Management, value addition and product diversification, nutrition management, tea and human health, setting up of quality control laboratories etc.

(A) Ongoing Research Schemes : The research schemes that have been initiated during the XI Plan period are under various stages of completion and some of the schemes are to be continued for one or two years of the XII plan period for their completion. (B) Justification for continuation during XII Plan: Long term Research is necessary for developing and improving the techniques for modernization of processing, as well as, for finding answers to emerging constraints and limitations. Streamlining and strengthening of the research and creating suitable mechanism to ensure that research remains responsive and in tune with the time is cardinal for future progress and growth of the industry.

6. Small Grower Development Scheme Giving due considerations to the special needs of the small growers sector

and increasingly important role the sector is playing in the Indian tea industry, a separate dedicated scheme has been proposed for the sector with various sub-components covering all aspects of development for the sector. The small grower sector has emerged as an important sector contributing nearly one third of the country’s production of made tea. Current estimation indicates that there are nearly 1,60,000 small growers producing nearly 257 M. kg of tea accounting for around 26% of the total tea production of the country. Considering growing contribution of the small grower sector, there is a need to put increased attention to this sector. Accordingly, various subsidies and supports that are available to the small growers under various schemes of XI Plan have been clubbed/ consolidated under one umbrella scheme i.e. Small Grower Development Scheme (SGDS). The primary objective of the scheme is to encourage the small growers to move up in the value chain instead of remaining for ever as only green leaf producers. Through collectivization, the growers could move up as manufacturers and marketer of their teas in a branded and value added form so that the teas from the small sector could be exported at competitive prices. Currently Indian teas are getting priced out in the international markets owing to the high cost of production in the organized sector and thereby share of Indian tea in the global market is steadily declining. This downward slide in export could be arrested by directing the tea produced by the small sector for exports. Thus the key objective of the scheme is the facilitation of collectivization of small tea growers in the form of Primary Producer Societies/SHGs and become business entities engaged in quality tea production and marketing it for better price realization.

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7. Scheme for Monitoring the implementation of Reg ulatory provisions of

Tea Act.

There are certain regulatory and compliance related activities of Tea Board that are not covered under any scheme. Such activities include the following:

• Mandatory check- mechanism to ensure quality of tea meant for export from India

� Mandatory Checking of each consignment before its shipment from India destined for selected countries like, Japan, Germany, United Kingdom, Russia, U.S.A., Iraq, Iran and A.R.E.

� Mandatory Checking of consignments below certain level of unit FOB export price.

Export of tea from India is, at present, regulated /monitored under the provisions of the Tea (Distribution and Export) Control Order 2005 which has been notified in supersession of the earlier order viz:- the Tea (Distribution and Export) Control Order 1957. The standard of quality of tea to be exported from India shall conform to the specifications of black tea, green tea etc as indicated in the above mentioned order of 2005. Apart from the above standard of quality of tea, tea exporters are prohibited from exporting tea in which the maximum level of metallic contaminants, pesticide residue etc. exceed the level as indicated in Para 2(v) of the aforesaid order.

• Mandatory check mechanism to ensure supply of quality Green leaf to the manufacturer and the process of manufacturing quality tea for the consumers.

• To introduce regular monitoring mechanism of checking of Tea Waste generated at the factory level to ensure maintenance of quality tea at the factory.

• To introduce Region wise / State wise study on the status of the tea estates / tea manufacturing factories.

• To undertake a Micro level study on the extent of implementation of the different regulatory provisions of Tea Act and Control Orders.

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• To undertake a Region wise / State wise assessment of extent of programme implementation by the beneficiaries under different schemes of Tea Board, its impact & economic analysis.

• To study the cost of production of tea leaf of the small grower vis-à-vis by estates and cost of manufacturing of made tea by the Estate Factories / Bought Leaf Factories & Co-operative factories.

• Strengthening of e-auction and bringing other allied activities under electronic platform.

` Tea Board needs to strengthen following functional areas, in order to become a more effective development and regulatory agency:

Cost accounting Tea Board has to rely extensively on external agencies for undertaking

studies on cost structure, cost competitiveness, etc of tea industry on a regular basis. It needs to have an in-house cost accounting cell for undertaking such exercises.

Economics & Policy Research Unit For effective planning and policy formulation for the industry, an in-house

economics and policy research cell should be part of Tea Board’s internal structure. This cell should carry out high level policy research, best practice studies in terms of policies and planning, and provide specific periodic recommendations to the authorities in terms of suggested policy interventions.

HRD Cell

Human Resource Development is a crucial function. Tea Board currently

does not have any HRD cell. The same should be created in order to effectively monitor and implement HRD Scheme related initiatives and activities.

B. RUBBER BOARD

National Rubber Policy An Expert Committee to Formulate National Rubber Policy was constituted vide OM No. 8/19/2009-Plant–C dated 16 June 2014 of the Department of Commerce, Ministry of Commerce and Industry, Government of India. The National Rubber Policy will define long-term development goals and strategies for furthering growth and enhancing competitiveness of Indian rubber industry.

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Annual mass contact programme – 2014

Annual campaign with focus on ‘Quality Planting Materials & Certification’ was conducted from 2 May to 13 June 2014. Rubber Board organized campaign meetings in association with Rubber Producers’ Societies and Self Help Groups to create awareness among growers. 68,909 growers and tappers attended 995 meetings organized in different parts of the rubber growing regions in the country. US Patent Rubber Research Institute of India (RRII) got an American patent (US Patent No. US8, 7716,366 B2) for the development of industry ready to use rubber mixes, using techniques that are environment friendly and energy efficient.

C. SPICES BOARD

Replantation of Cardamom Plantations

The programme of Replantation of Cardamom Plantations in both Cardamom small & large is well accepted and very popular among the farmers. In 2014-15, the targeted area to be covered under the scheme was to cover 4000 hectares under replantation of cardamom small & large. This includes area replanted by the farmers with the technical advice of the Board but without availing subsidy. It is proposed to cover an area of 3000 hectares in 2015-16.

Spices Parks

Spices Park is a common infrastructure facility for processing and value addition of Spices and Spice products which offers both primary and higher end processing facilities. The Regional crop specific Spices Park is a well-conceived approach to have an integrated operation for cultivation, post harvesting, processing for value addition, packaging, storage and exports of spices and spice products by meeting the quality specifications of the consuming countries. The basic objective of the concept is to provide common infrastructure facilities for both post harvest and processing operations of spices and spice products, which also aims at backward integration by providing rural employment. Apart from the above facilities, the Board will develop the common infrastructure facilities like Roads, Water supply system, Power stations, Fire fighting & Control systems, Weighing bridges, effluent Treatment Plants, Quality Lab for checking basic parameters, Bank & Post office counters, Restaurant, Business centers, Guest house etc.

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Currently, the Board had completed the establishment of the Spices Park at Chhindwara in Madhya Pradesh, Puttady in Kerala, Jodhpur in Rajasthan, Guna in Madhya Pradesh, Sivaganga in Tamilnadu. The Spices Park at Chhindwara is mainly meant for garlic dehydration and extraction of chilli and other Spices. The operation of the park is started. The Spices Park at Puttady is mainly meant for cardamom and pepper. The operation is started and continuing successfully. The spices park at Jodhpur is mainly for cumin and coriander and the park I under trial run. Board has also established one full line processing system for Chilli and another full line system for Turmeric in Sivaganga. The Spices Park at Guntur (AP) for chilli has also started operations. The work related spics parks at Kota (Rajasthan) and Rae Bareli ( UP) are in progress. Requests has also been receive from Meghalaya and Manipur for establishing Spices Park and is under the consideration of the Government.

Establishment of E- Office in the Board and Electro nic auction system for cardamom.

A paperless E-office system has been implemented in the Board in sync with the needs of a modern Government. The system has replaced the traditional physical file with electronic file system. The activities of the Board have changed significantly with the leverage of information technology. Many manual operations are replaced with online systems which effectively reduce the workload of various departments of Board and reduce the turnaround time for their operations. EDP department facilitates the use of information technology in various departments of Board by working along with them. In effect, this makes the whole system faster and more productive and enables Board to perform more efficiently.

The electronic auction (e-Auction) system introduced for cardamom is functioning successfully at two centre viz., in the Spice Park at Puttadi in Kerala and Bodinayakanur in Tamil Nadu with infrastructure facilities provided by the Board. The existing e-auction will be continued in 2015-16 and the scope for introducing more electronic auction centers is being considered.

Quality evaluation Laboratory

Mandatory sampling and quality checking of spices export consignments of chilli/chilli products and turmeric powder by the Spices Board in its laboratories prior to exports to ensure its conformity with the international standards are being continued since 2003. The aflatoxin test for the export consignment of nutmeg to EU region has been made mandatory in 2011. This quality enforcement initiative has led to significant boost in consumer confidence in overseas markets and has increased exports. Technical and financial support to exporters of spices to upgrade the quality of spices are also provided by the Board for setting up of in-house

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laboratory, quality certification, training of technical personnel in analysis of various parameters besides disseminating quality requirements specified by various buying countries to exporters.

D. COFFEE BOARD

Domestic Promotion: It is evident that for achieving long term sustainability in the coffee sector in India, growth of robust domestic market is important. Besides creating value in the sector, a robust demand helps to create a buffer for the producers against international price fluctuations.

In this context, the Board has taken several steps/programmes for supporting the domestic market development of coffee through awareness about coffee / consumption of pure coffee through generic mass media campaigns like TV campaigns and Print media campaigns, in the form of booklets, journals etc. The Board has also released advertisements to draw the attention of younger generation for making a career in coffee which has abundant openings besides educating the consuming public on the positive health aspects of coffee in reputed magazines. The Board continued its efforts of providing pure coffee experience to the consumers through its 2 India Coffee Depots and 10 India Coffee Houses functioning at key locations in Delhi, Kolkata, Mumbai, Bangalore, Bhopal, Tirumala and Guruvayur besides developing Entrepreneurial Skills by holding trainings on Coffee Roasting, Brewing, etc.

During 2014-15, Coffee Board participated in 21 important exhibitions held in India, thus promoting coffee as a beverage in the non-conventional coffee drinking areas. Priorities/issues identified for coffee sector in X II Plan

1. R&D for evolving improved planting material with disease/ pest tolerance and developing eco-friendly, cost effective technologies for sustainable coffee production.

2. Strengthening of Transfer of technology and Capacity building programme in coffee.

3. Support for Replanting, Expansion, Water Augmentation, Quality Up-gradation and Pollution Abatement.

4. Improving labour productivity through mechanization. 5. Risk management tool to coffee growers (Rainfall Insurance Scheme for

Coffee- RISC). 6. Expansion and consolidation of coffee holdings in Tribal areas of the NTA and

NER.

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7. Encouraging the production of organic / eco-certified coffee. 8. Promotion of Indian coffee in domestic and export markets. 9. Infrastructure development. 10. Welfare measures to farm workers/tiny growers. 11. Support for Value addition.

Monitoring Mechanism: The Coffee Board has an established review and monitoring system of all plan activities and programs that are being implemented. The details of the existing monitoring system are furnished below. Review by Chairman

- All plan schemes at periodical intervals

Review & Monitoring at other levels

Director of Research - Discipline-wise and station-wise Research Activities and Extension and Development Plan Schemes / activities of NTA / NER at periodical intervals

Secretary / Joint Directors - Regional level review and monitoring of Extension and Development Plan Schemes / activities of Traditional Areas at periodical intervals.

Deputy Director - Zonal level review and monitoring of Extension & Development activities at periodical intervals.

Auditing of accounts pertaining to the Board will be done by IAP of Coffee

Board as well as by external auditors from AG’s office

The Technical evaluation of the schemes will be done with outside experts / independent agency at the end of each plan. Public Information System The details of different systems put in place by the Board to provide information to the public are

a) Board’s Website - www.indiacoffee.org b) Publication of Indian Coffee magazine.

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c) Publication of Annual reports & Annual audit accounts report d) Publication of Database on Coffee e) Information through print & electronic media at various levels f) Display of Posters, Banners g) Distribution of brochures, leaflets, handouts etc. h) Conducting Group/Mass meetings and individual contacts i) Sevottam citizen charter j) Right to Information

New Initiatives for Coffee Sector:

1. Signed a MoU with the World Coffee Research (a global R&D initiative based at Norman Borlaug Institute, Texas A&M University) for participating in a multi-country collaborative research programme on improvement of Arabica coffee.

2. Giving top priority for research on coffee white stem borer, the Ministry of Commerce & Industry, Govt. of India constituted a National level Steering Committee on White Stem Borer to identify and suggest best practices for addressing the problem of White Stem Borer in a sustainable manner.

3. For the first time successfully engaged the Indian Council of Agricultural Research (ICAR) into a collaborative research to find an effective control measures against coffee stem borer. Also engaged a private research laboratory M/s. Biocontrol Research Laboratories for research on pheromones and kairomones of coffee stem borer.

4. An Action Plan for rehabilitating the White Stem Borer affected areas was approved by the Ministry which involves support for vacancy filling and community nurseries for raising quality seedlings apart from education and capacity building programme in a Mission Mode approach.

5. Initiated efforts with private laboratories for commercialization of coffee tissue culture which has shown promise at technological front.

6. Constituted 4 Regional Consultative Forums for coffee research by involving consisting of representatives of Growers Associations, Enterprising/ Eminent Growers, Experts in the field of Agriculture as well as Members of the Board so as to have a platform for regular interactions/ consultations on coffee research covering all the major coffee growing regions.

7. Café Movel, an IVRS based mobile phone extension services developed in collaboration with Commonwealth Agril. Bureau International (CABI) was upgraded by adding SMS alerts on coffee cultivation and market information.

8. Eighth revised edition of ‘Coffee Guide’ a manual on coffee cultivation was brought out incorporating latest information on coffee cultivation for the benefit of coffee growers.

9. The Centre for Innovation & Entrepreneurship (CIE) established by Coffee Board has organized six training programmes in major cities like Delhi, Kolkata,

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Chandigarh, Mumbai, Hyderabad and Chennai to build the capacities of potential and nascent entrepreneurs in the coffee sector, especially in the areas of coffee processing & value addition as well as retailing of coffee products.

10. Brought out two new Business Guides viz., “Business Guide on Establishing and Managing a Coffee Roasting and Grinding Business in India” and “Business Guide on Establishing and Managing a Cafe in India” for the benefit of entrepreneurs.

11. A Promotional film on Indian Coffee – ‘Coffee Connoisseur’ was co-produced by the Coffee Board and the National Geographic Channel in order to promote Indian Coffee at International level.

12. Conducted six short term training programmes on coffee roasting and brewing (Kaapi Shastra) for the benefit of R&G manufacturers, traders and potential entrepreneurs.

13. The 2013 batch successfully completed the PG Diploma in Coffee Quality Management. The 2014 batch of this diploma has also commenced.

14. To acknowledge the upcoming challenges of the café culture in India, Coffee Board of India organized the National Barista Championship 2014. This competition was aimed at identifying technically skilled and world class Baristas in this profession and the competition mainly focused on promoting excellence in coffee value chain, strengthen and encourage the skill development in the Indian coffee sector.

15. Mapping of coffee areas in six talukas was taken up on pilot basis using Geo-spatial techniques in collaboration with the Regional Remote Sensing Centre (South), ISRO.

16. Expansion of coffee cultivation in new areas like Himachal Pradesh has been launched on pilot basis for studying feasibility of Coffee cultivation. Darjeeling area of West Bengal state is also being explored for this cause.

17. ‘Indian Coffee’ is a monthly journal published by the Coffee Board of India in English and Kannada language for the benefit of the coffee growers and coffee stakeholders. The information provided in the journal has been found very useful by all associated with the coffee sector. In the past two years the journal has been revamped and its circulation has increased.

E. Marine Products Exports Development Authority (MPEDA).

POLICY:

The MPEDA has formulated a vision document for the marine products industry. This document addresses all the vital linkages that are needed for the industry in marketing capture and culture fisheries, processing, quality control and sustainability. The future growth of the industry will be based on the country’s capability to produce adequate raw materials for export and additional value to the

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products which are the present day requirement of the consumer. The corner stones of the strategy are:

1. Aggressive marketing.

2. Exploitation of un-exploited resources like tuna and other oceanic resources. 3. Expansion and diversification of aquaculture. 4. Value addition. 5. Quality and sustainability.

It is envisaged that the country’s exports would reach US $ 6 billion by 2014-15. Through this overall strategy for improvement of seafood exports, there will be significant improvement in employment generation and rural development. The employment generation of the industry is targeted to reach a level of at least 5 million during this period and it is expected to revitalise the rural sector with improvement in quality of life. CURRENT AREAS OF FOCUS (MAJOR POLICY ITEMS) To facilitate enhanced export of marine products MPEDA has been giving greater attention in the following areas.

• Development of Tuna fishery by extending financial assistance and technical advice for conversion / construction of Tuna Long Liners and chilled tuna packing facilities and imparting training to crew.

• Sea freight Assistance for import of raw material for export of specified value added products to make India a Seafood Processing Hub which will also help in maximum utilization of processing units and thereby create more employment generation especially for women.

• Promoting diversification to increase the share of culture fishery resources by cage farming of finfish and organic culture of shrimps.

• Upgradation of fishing harbours and landing centers to improve the quality of marine products landed.

• Assisting setting up of state of the art processing facilities for value added marine products meant for export.

• Ensuring production of quality seafood by setting up sophisticated laboratories in the maritime states.

• Extending linkages to the grass root level by ensuring better extension packages to fishermen / farmers and the workers engaged in various stages of processing of marine products.

• Enhancing the brand equity and to promote co-branding and joint ventures for strengthening marketing strategies abroad.

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• Participating in International Seafood Shows to show case the strength of Indian marine products industry.

• Facilitating supply of healthy and disease free seed and to demonstrate culture practices of various species.

• Strengthening R & D activities to develop technology for aquaculture.

Appropriate schemes/measures have been devised to achieve these objectives.

CURRENT POLICY INITIATIVES TO INCREASE PRODUCTION A ND EXPORTS

a. To increase the production

• MPEDA in association with SIPPO has taken up organic culture of scampi in an area of 50 hectares in Kerala and Andhra Pradesh.

• Discussion is in the advanced stage to get financial and technical assistance for popularizing marine finfish farming through cage culture, in association with NORAD an agency identified by Innovation Norway with whom MPEDA entered into an MOU.

• Culture of sea bass in cages and ponds with the seeds produced by RGCA on a pilot scale.

• Introduction and adoption of code of practices in shrimp farms addressing thereby sustainability concerns.

• Assistance for conversion of fishing vessels into Tuna Long Liners and provide long line materials to tap otherwise unexploited Tuna resources.

b. To improve quality and sustainability of marine products meant for

Export.

• The National Residue Control Plan (NRCP) to monitor the residue levels of various environmental contaminants in aquaculture was continued more vigorously.

• Hazard Analysis Critical Control Point (HACCP) team continues to assist seafood processing units for preparing HACCP manual and implementation of HACCP system.

• MPEDA laboratories at Kochi, Nellore and Bhimavaram, accredited laboratories’ test results are accepted by the importing countries without further verification.

• The new laboratory made operational at Bhubaneswar tests for antibiotics like Nitrofurans and Chloramphenicol of marine products meant for export.

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• NETFISH and NaCSA, the two societies formed for undertaking extension education programmes continue their effort in capture and culture fisheries sectors, for quality upgradation.

• To prevent, deter and eliminate illegal, unreported and unregulated fishing, implemented Catch Certificate for export of seafood consignments to European Union.

c. Other developmental/promotional activities

• Upgradation and modernization programmes of various fishing

harbours/landing centers are progressing. • Conversion work on fishing vessels underway for tapping the tuna

resources. • Ornamental fish breeding units coming up in a big way to boost the export

of ornamental fish. • Rajeev Gandhi Centre for Aquaculture continues its pioneering effort in

research and development of various efforts in production of seed and culture thereof.

MILE STONES FOR 12TH PLAN

• Promotion of Brand equity of Indian Products • Increase in production of Tuna. • Increase production from aquaculture. • Products exported to be value added • Improve capacity utilisation of processing plants • Improvement of hygiene in landing centres/fishing boats • Create a foundation for Rajiv Gandhi Centre for Aquaculture. • Make India a Seafood Processing Hub. • Increased production of L.vannamei Shrimp

It shall be MPEDA’s endeavor to realize the above goals by following a road

map, which focuses attention on the areas identified above. The schemes and financial outlay of MPEDA’s 12th Plans will follow the vigorous road map. As mentioned earlier, it is inevitable that the areas to be addressed by MPEDA might sometimes fall within the purview of other Ministries/departments/organizations. This is sought to be resolved through convergence with the programmes of the Ministry of Food Processing Industry. Department of Animal Husbandry, Dairying and Fisheries, National Fisheries Development Board etc. whose resources will be adequately utilized by the MPEDA to supplement its own resources. It is expected

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that they will also give due attention to the complex needs of the export sector and lend their unstinted support to MPEDA. REFORMS:

1. Network for Fish Quality Management & Sustainab le Fishing (NETFISH) A society named Network for Fish Quality Management & Sustainable

Fishing (NETFISH), registered with MPEDA, under the Travancore Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 at Ernakulum, has been formulated to organize the extension programmes of MPEDA in all maritime states and a budget of Rs.1000 lakh has been included in the 12th five year plan. The headquarters of NETFISH is at Ernakulum.

NETFISH will undertake capacity building for providing training to fishermen on board handling, training to trainees, training to stakeholders in handling fish in landing centers, training on TED, and training to Societies for conservation of fishery resources, training to pre-processing plant workers, training in hygienic maintenance of fishing boats, etc. NETFISH will evolve a new mechanism for capacity building in quality management at grassroots levels by networking with fishermen societies, federations and other non-governmental organization which work closely with the fishing community, which will be more effective in imparting training to fishermen and fish workers. NETFISH will also promote capacity building for stakeholders etc in planning, marketing, technology dissemination, processing etc and thereby facilitate their empowerment. NETFISH will also bring out extension training materials for all training programmes in various languages; prepare video extension materials, brochures, etc. 2. National Centre for Sustainable Aquaculture (N aCSA)

The National Centre for Sustainable Aquaculture (NaCSA) is an outreach organization of MPEDA to provide technical support to the primary aquaculture societies and build capacity among small farmers to produce quality shrimps in a sustainable manner. It is envisaged that NaCSA will serve as a link between primary aquaculture societies and the farmers in turn to facilitate formulation of common policies, strategies etc. to benefit farming community as a whole in the country. The objective of community participation in coastal aquaculture is expected to augment shrimp production for raising the seafood export from India.

Chief Executive Officer (CEO) and essential staffs have been already

appointed besides housing the headquarters of NaCSA at Kakinada. The

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requirement to the field offices of NaCSA in various maritime states is being attended. A detailed work plan has been formulated for streamlining the activities, for which a workshop was organized with the Stake holders. Action as per the work plan has already been initiated.

3. Crab Project

Mud Crabs are high value species having very good demand in international markets, particularly in the south-east Asian countries. The mud crab species are mainly exported live for higher value realization. The states of Kerala, Tamil Nadu, Andhra Pradesh and Orissa are the main states for natural collection of the species. The Market size Mud crabs caught from the nature and exported live to Singapore and other market destination. Because of its market demand Mud Crab (Scylla spp.) has attracted the attention of fishery biologists as well as entrepreneurs as a candidate species for commercial level aquaculture production for export. However, because of the various reasons, including the major gaps in seed production and culturing technology, it has not so far been adopted for commercial culture operations.

The crab project of MPEDA was done by Rajiv Gandhi Centre for Aquaculture (RGCA), the R& D arm of MPEDA. The Mud Crab Hatchery project of RGCA and the Mangrove Crab Hatchery Project of RGCA was initiated to promote Aquaculture of this species both to augment the Aquaculture production as well for the natural stock enhancement of the species in the wild by ranching activities. This is achieved by the development of Mud Crab hatchery facility and development of technology for hatchery seed production for supply to farmers and Crab fatteners.

SCHEMES/ PROGRAMMES FOR WOMEN

The major schemes/programmes of the Authority which are benefiting women are as follows:-

1. Financial Assistance for extending insurance coverage for workers employed in fish processing units. This is a welfare scheme mainly for the benefits of the women workers employed in seafood pre-processing/processing plants. It aims to provide social and financial security for the insured and their dependents.

2. Development of Hatcheries – a good number of women are working as technicians and aids.

3. Field level extension programme – ensures 20% of women participation in meetings.

4. Developmental assistance to set up PCR Labs – a good number of technicians in labs is women.

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5. Setting up of Ornamental Fish Marketing Societies (OFMS)/Fish Breeding Units (OFBU) – 50% of the persons engaged in the OFMS and OFBU are women.

6. Assistance for construction/renovation captive and independent pre-processing centers – Most of the workers in these centers are women and they are able to get gainful employment and hygienic working environment.

F. APEDA

1. INFRASTRUCTURE DEVELOPMENT

Under the component ‘Infrastructure Development’, APEDA has a plan to set up approximately 15 common pack-house will be set up at various places of the different states. Setting up of these common facilities will help the smaller exporters to get their produce processed and pre-cooled and tested for exports.

Approx. 5 Transport Units facilities, 22 Sheds for storage/grading, 12 Mechanize handling facilities for sorting/grading, 5 pre-cooling facilities with air handling system and cold storage, 3 Pre-shipment treatment – fumigation/X-ray, 13 Integrated post harvest system/pack house, 5 setting up of cable car, 2 VHT Irradiation facilities, 4 environment/pollution control system and 2 Specialized storage/CA have been planned.

The setting up and up-gradation of infrastructure will help in maintaining the quality of the produce for exports and also attain incremental exports of the APEDA monitored products.

2. MARKET DEVELOPMENT

Under the component ‘Market Development’, APEDA has a proposal to initiate a number of programmes for market promotion of agro products.

A. Development of Packaging Standards 3 B. Use of Packaging material 196 C. Development of Data Base 17 D. Assistance for feasibility studies 06 E. Survey feasibility Studies for common Benefits 06 F. Supply of Material Samples etc. 39 G. Publicity & Promotion Literature 12 H. Brand Publicity through Advertisement 10 I. Export Promotion by APEDA 35 J. GENERIC Publicity 03

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K. Market facilitation centers 01 L. Brand image for value added products 02

This will help in achieving market access in new markets and also help in

increasing exports of APEDA monitored products in the existing markets.

3. QUALITY DEVELOPMENT

Food Safety systems such as HACCP, BRC, ISO9001 etc. will be implemented by the individual exporters in their units with APEDA’s financial assistance. The following activities will take place during 2015-16.

• Setting up/Strengthening of labs for exporters by installing quality

testing equipments –20 • Quality Management, assurance, control systems –9 • Standardization/ Mannuals/ Guidelines –3 • Upgradatin/Recognition of Labs for export testing-15 • Testing of soil, water and residues-40 • Adoption of Global standards for Traceability – 10

Capacity Building and Organization Management

• Up-gradation of tech/ managerial skills – 2 • Organization seminars/group activities – 5 • Seminars organized by APEDA – 2 • International study tours – 2 • R&D activities – 2 • For assisting the organic stakeholder for obtaining GSI, certifications

for trace-ability. 4. TRANSPORT ASSISTANCE

The component will help in enhancing the competitiveness of our agro

exports. According to trends, export of fresh fruits and vegetables, floriculture, dairy & poultry products and processed food products have registered a constant growth during the five-year plan period.

Under the component, at least 360 exporters will be provided transport assistance during the year 2015-16. NOTE REGARDING APEDA’s INITIATIVES IN NORTH EASTERN REGION

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Export Development for North Eastern Region (EDF-NE R):

Following the announcements made by the Prime Minister in respect of measures the development of exports from the North-Eastern region in Shillong on January 21-22, 2000, an Export Development Fund (EDF) has been set up with the objective of using the resources for the development of exports from the region. The objective of the is to assist specific activities for promotion of exports from the North-Eastern region of the country including Sikkim. All activities, which have a linkage with the exports from the region and are designed to help exports, shall be eligible for assistance from the fund. The covers Setting up of pioneering/pilot projects aimed at exports , Provision of equipment and machinery for the pioneering pilot projects aimed at exports , Creation of Common facilities for facilitating exports ,Facility for testing and standardization as well as quality improvement of export products, Funding related to the exchange of trade delegations, Any other activity as notify by the department of Commerce having a bearing on export promotion in the North-East. The major criterion for eligibility for the projects is that the proposal must show a direct linkage with the exports from the region and should be desired to help exports from the North-Eastern Region.

Fund Released: So Far DoC had placed an amount of Rs. 67.15 crore at the

disposal of APEDA of which 78 projects have been funded to the tune of Rs. 65.77 crore including assistance extended to exporters on Inland Transport Assistance for the North Eastern Region.

It is anticipated that an expenditure of Rs. 30.00 crores is likely to be incurred on various projects during 2014-15 & 2015-16. VII. Trade Facilitating Reforms and Export Promotio n Measures

During the year, the ongoing reforms on the trade facilitation and export promotion fronts were further deepened and new initiatives undertaken. The major initiatives in this regard include:

A. e-Procurement

DGS&D initiated its journey towards implementation of e-Procurement platform in the financial year 2004-05 and over a period of time developed an end-to-end e-Procurement solution beginning with the identification of new items for bringing on Rate Contract(R/C), consultative meetings to finalize deletion/addition of items, governing specification and terms and conditions, formulation of governing specifications, creation and invitation of tender, receiving and opening of bids through secured e-tendering platform, comparative and ranking Statements,

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information regarding dispatch of supplies and receipt by the consignee, e-payments and debit adjustments. Different software modules have been extensively used for its internal activities concerning purchase and inspection. The platform has since stabilized.

DGS&D e-tendering module, which has been developed in-house with National Informatics Centre (NIC), is fully operational and all tenders of generalized items are mandatorily invited online. E-Auction module has been developed by NIC, Chennai following the same model followed by Government of Tamil Nadu, has been operational since the last week of February. New Website for DGS&D has been developed by M/s UBICS and is operational since 04.04.2013. Initially the website was electronically installed in DGS&D Data Center housed in DGS&D (HQ) building. DGS&D Data Center is being migrated to NIC Data Center at Shastri Park, New Delhi. In this regard, Servers have already been procured and installed in the NIC Data Center Server room and all associated software/firmware installations and configurations have been completed. As soon as the mandatory requirement of the Security Audit of the Servers is completed by NIC, DGS&D Website and all the e-operations of DGS&D shall operate from NIC Data Center, Shastri Park. DGS&D budget expenditure for computerization activities for the financial year 2014-15 is Rs. 25.00 Cr. for MMP e-Procurement and computerization activities. B. Online Services by Director General of Foreign T rade (DGFT)

Various e-initiatives are implemented through DGFT’s Plan Scheme viz. Modernization & Up-gradation of DGFT.

DGFT endeavours to deliver its services on a transparent and efficient basis using tools like Online filing of Applications, Message Exchange with Community Partners, Digital Signatures and Electronic fee payments. Use of EDI at DGFT has enabled faster processing, speedier communication and on-line availability of application processing status. DGFT is committed to enlarge the scope and domain of EDI exchange on a continuous basis.

DGFT website is an integrated electronic platform. It:

• Provides information relating to Foreign Trade Policy and procedures and all related documents.

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• Allows users’ web based electronic filing of applications for DGFT Schemes/Authorizations to any of the 36 DGFT’s Regional Authorities across the country. The process of applications filing secured with digital signature. It also allows users the facility of electronic funds transfer. The processing status of the requests/applications is also posted on the website of the concerned office.

• Allows users to check and upon information relating to their Shipping bills received from Customs and electronic Bank Realization Certificates (eBRCs) receive from Banks.

4-DGFT on Twitter • DGFT launched its Twitter handle https://twitter.com/dgftindia) on July 14.

DGFT notifications, Public Notices are uploaded on Twitter. • 5-e-BRC (Electronic Bank Realization Certificate) • e BRC project, introduced in June 2012 in a short span of less than 3 years,

has brought down the cost of doing business for Indian exporters and enhanced the productivity of banks, DGFT and many other organizations. It has been implemented by Directorate General of Foreign Trade (DGFT).

Introduction: eBRC (Electronic Bank Realization Certificate) project launched on June 5, 2012 created an integrated platform for receipt, processing and subsequent use of all Bank Realization related information by exporters, banks, central and state government departments. eBRC was made mandatory wef August 17, 2012. This means that from this date DGFT would accept only eBRCs uploaded by banks onto the DGFT server and not accept physical copies of BRCs if issued by banks on or after this date.

What is a BRC? A BRC is issued by bank after it realizes Foreign Exchange sent by foreign buyers in exporters’ account as payment for goods exported. BRC is subsequently used by many central and state government departments for grant of benefits, refunds to exporters.

Need for Change

Processes for BRC issuance and subsequent utilization were largely manual and department centric. Exporters suffered most as they had to run to banks and government departments many times for claiming benefits.

Results The project reduced transaction time and cost of operations and improved productivity of all stake holders. Project’s success can be recognized from the figures. So far, 95 banks have transmitted more than 1.4 Crores eBRCs. 13 State Government Departments, including Enforcement Directorate of Government of India have signed MoU with DGFT for sharing of eBRC data. Estimated annual saving for all stakeholders exceed Rs 2000/- crores.

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C. Use of Information and Communication Technology

Information and Communication Technologies (ICT) and its tools have become integral part of the functioning of the Department. These have facilitated the efficient and effective administration, monitoring, trade facilitation, delivery of services and information dissemination to the users. The Computer Centre in the department is being manned and managed by National Informatics Centre (NIC). It provides necessary assistance and support in developing and implementing various ICT systems and applications for decision making, monitoring, analysis, office automation and e-governance. All officers/ divisions/ sections are equipped with necessary ICT infrastructure for their desktop computing and functioning. These are connected to a Local Area network (LAN), providing round the clock facilities for e-mail, and Intranet/ Internet operations. The ICT infrastructure in the department is being regular reviewed for its better utilization and upgradation.

Video conferencing is being effectively used as cost effective solution through Video Conferencing Studio at NIC- Head Quarter for national and international meetings and negotiations. An Executive Video Conference System (EVCS) is also available in the Chamber of the Commerce Secretary, connecting Secretaries to Government of India and all Chief Secretaries/ Administrators of States/UTs over NIC network (NICNET) to facilitate quick appraisal of inter-ministerial and state matters.

Various ICT based systems, applications and packages have been deployed in the department in order to provide necessary support in decision making, monitoring, analysis, office automation and e-governance. The electronic interface with community partners for trade facilitation, electronic payment through net banking and digital signature are integrated with the systems wherever applicable.

The website of the department (http://commerce.gov.in) is being regularly enriched and strengthened for information dissemination, electronic delivery of services, trade facilitation and monitoring. It provides Government-to-Citizen (G2C) and Government-to-Business (G2B) interfaces. A separate website for the Standing Committees on Promotion of Exports by Air and Sea (http://escope.gov.in), is also hosted to provide an open forum for the Trading community for direct and quick interface for communication and information dissemination with the Department.

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An Intranet Portal is hosted in the department for providing e-governance and office automation applications to the employees and internal users. It is being regularly updated with latest circulars and notices. Centre for WTO Increasing integration of India in the global economy over the past two decades highlights the need for undertaking objective and rigorous research on trade issues and its impact on India. With a view to encouraging young researchers in the field of economics and international trade law to undertake well grounded research on issues related to international trade, the Centre for WTO studies, IIFT, New Delhi launched an initiative called “ 100 Trade Scholar Initiate”(100 TRASI). The scheme envisages renowned trade and legal experts to mentor research by 100 young scholars over 3-4 year period.

Social and Gender Empowerment Processes

In accordance with the policy of the Government of India, a SC/ST cell is functioning in the Department of Commerce to ensure due compliance of the orders of reservation issued from time to time in favour of SCs and STs. A Liaison Officer has been nominated in the Department to ensure prompt disposal of the grievances of the employees of these classes and to scrutinize and consolidate the statistical data. So far as services and posts in the Department and organizations under its administrative control are concerned, none of the posts has been exempted from the purview of the reservation orders. The Liaison Officer examines and rectifies, wherever necessary, the roster maintained by the various organizations for ensuring representation to SCs/STs/OBCs. The Liaison Officer also provides relevant guidelines to the officers in the Department of Commerce, its attached and subordinate offices and the Public Sector Undertakings, in accordance with the instructions issued by the Department of Personnel and Training (DOP&T) from time to time. The Cell is also looking after the work regarding implementation of the Government Orders in respect of reservation for Other Backward Classes (OBCs) to the extent of 27% in direct recruitment.

The Commodity Boards under the administrative control of the Department

of Commerce have certain specific schemes under Special Tribal Plans, which are operated with a view to supplementing the efforts of the Government in improving the socio-economic conditions of the SC/ST workers in the non-traditional areas. The attached and subordinate offices, PSUs, autonomous bodies etc. under the administrative control of the Department have also undertaken number of welfare activities.

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Women Cell

An independent Women Cell has been set up in Department of Commerce with the following broad functions:

• Prevention and redressal of sexual harassment at workplace, constitution of

Complaints Committee in the Department of Commerce, its attached and subordinate offices, PSUs, autonomous bodies etc., monitoring their performance and providing necessary help and guidance.

• Coordination with the Department of Women & Child Development, National Commission for Women and other concerned agencies in respect of the matters connected with welfare and economic empowerment of women and other related issues.

• Review of the various programmes of Department of Commerce to ensure that various aspects of women welfare, development and empowerment are promoted through the programmes and schemes of the Department.

• Preparation of Action Plan pertaining to the Department of Commerce for the overall development of women in line with the National Policy for empowerment of women.

• Other incidental matters pertaining to the subject.

The Women Cell actively participated in the various workshops/seminars on gender issues organized by National Commission for Women and others.

Gender Budget Cell

The Gender Budget Cell is functioning in the Department to ensure that the

budget allocations made in the various schemes implemented by the Department benefitted women. Most of the schemes under the Commodity Boards such as Tea, Rubber, Coffee, Spices etc. as well as agencies like the Indian Instituting of Packaging, the Marine Products Export Development Authority, and the Footwear Design & Development Institute etc. have programmes targeting women beneficiaries. Though funds are not specifically earmarked for this group, all the aforementioned schemes subsume the targeted category.

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CHAPTER-IV

Brief on Global Economic Situation and Trade in 201 4-15 Introduction

Recovery was affected by geopolitical conflicts in various parts of the world. Furthermore, crude oil prices have fallen since the mid of 2014-15. This fall in crude oil prices had affected economies worldwide and future impact is expected to vary from country to country depending on whether a country is an exporter or importer of crude oil. According to International Monetary Fund (IMF), at an aggregate level global growth will receive a boost from lower oil prices. On the other hand, the organization also raises concern regarding the downside risks which includes investment weakness and diminishing expectation regarding medium term growth in Advanced and emerging market economies.

World Trade in 2014 and Global Trade Prospects

� Global Trade reduced from 2.3% in 2012 to 2.2% in 2013. As per WTO, Global Trade is expected to grow by 3.1% in 2014 and by 4.0% in 2015. However, the growth of 4.0% in 2015 is still below the average of last 20 years (1993-2013) average of 5.2%. The Projections are down from the 4.7% in 2014 and 5.3% in 2015 made earlier by WTO.

� Global trade in the first half of 2014-15 grew at a slow rate. Thus, in order to achieve the growth of 3.1% for 2014 major improvement is required in Developed countries such as Europe, United States (US), Japan and others. Despite the fact that growth projection for the US have improved, Macro-Economic health of China, Euro Area and Japan is equally important for the global trade revival. In Russia and Thailand political or geopolitical crises, have affected the trade in 2014.

� As per the current rankings, India is the 19th largest exporter (with a share of 1.7%) and 12th largest importer (with a share of 2.5%) of merchandise trade in the world. China is the top ranked exporter and United States of America (USA) is the first largest importer of merchandise trade in the world. In Commercial Services India is the 6th largest exporter (with a share of 3.20%) and 9th largest importer (with a share of 2.80%). USA is the top exporter as well as the top importer of commercial services trade in the world.

� Global trade prospects: As per WTO, on the export side, the WTO anticipates a 2.5% increase in shipments from developed economies in 2014, followed by a 3.8% rise in 2015. Meanwhile, exports of developing economies are expected to grow by 4.0% in 2014 and 4.5% in 2015. Imports of developed

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economies are forecast to rise 3.4% this year and 3.7% next year, while those of developing economies increase 2.6% in 2014 and 4.5% in 2015.

World Economic Update 2014-15

� IMF in its World Economic Outlook (WEO) released on 20th January 2015 has projected global growth for 2015 and 2016 to be at 3.5% and 3.7% respectively, a 0.3% reduction in both years’ projection individually from the October 2014 WEO. As per IMF, world output remained at 3.3% for 2014.

� India maintained a percentage growth of 5.8% for 2014, registering a 0.8% increase from the previous year. India’s growth projection for the year 2015 and 2016 is marked at 6.3% and 6.5% respectively, indicating a 0.1% decrease in current projection for the year 2015 as against projection made in 2014 October issue of WEO. However, a noteworthy fact here is that India’s growth forecast for the year 2016 surpasses that estimated for China by 0.2%. India’s growth is projected to be higher than all the BRICS nation countries for the year 2016.

� Global growth will receive a boost from lower oil prices, which reflect to an important extent higher supply. But this boost is projected to be more than offset by negative factors, including investment weakness as adjustment to diminished expectations about medium-term growth continues in many advanced and emerging market economies.

� The revisions reflect a reassessment of prospects in China, Russia, the euro area, and Japan as well as weaker activity in some major oil exporters because of the sharp drop in oil prices. The United States is the only major economy for which growth projections have been raised. The distribution of risks to global growth is more balanced than in October.

� The main upside risk is a greater boost from lower oil prices, although there is uncertainty about the persistence of the oil supply shock. Downside risks relate to shifts in sentiment and volatility in global financial markets, especially in emerging market economies, where lower oil prices have introduced external and balance sheet vulnerabilities in oil exporters. Stagnation and low inflation are still concerns in the euro area and in Japan.

India’s External Sector

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� Growth rate of India’s exports entered the negative zone after a gap of six months, declining 5.04 per cent in October 2014. The trade deficit in October 2014 increased to $13.35 billion as against $10.59 billion in October 2013.

� India’s merchandise exports reached a level of US$ 241.15 billion during Apr-Dec 2014-15 (P) registering a growth of 4.02%. Cumulative value of imports for the Period Apr-Dec 2014-15(P) was US $ 351.21 billion registering as growth of 3.63%. Trade deficit during Apr-Dec 2014-15(P) was estimated at US $ 110.05 billion.

Conclusion Indian Economic situation improved significantly in 2014-15 due to macro-

economic stability, greater economic policy reforms being undertaken and positive trade growth. Although, it is still too early to detect signs of robust recovery as globally downside risks have increased since the spring. As per IMF, Short-term risks include a worsening of geopolitical tensions and volatility in financial markets. Medium-term risks include stagnation and low potential growth in advanced economies and a decline in potential growth in emerging markets.

Under the “Make in India” Initiative, focus should be on improving efficiency with focus on technology and skill development. Main objective should be to produce world class products such that our exports or products do not get rejected on the basis of rising standards getting established under upcoming future trade agreements of which we are not a part. Challenges also remains in terms of reviving Industrial Production, adequate infrastructure development. With the improvement in business, Gross Domestic Product (GDP) growth should pick up towards the close of the year.

India needs to focus on promoting manufacturing exports and items which

have high value added content and move away from goods which have high import content. Also, focus should be on revamping growth in traditional sectors like textiles, gems & jewellery and handicrafts which were earlier strong areas of exports. The strategy to boost our capabilities of exports in these sectors should receive high priority in future strategy for export promotion and diversification.

The Indian economy is experiencing positive trends, although the

fundamentals remain the same. The country expects economic and administrative reforms. Trade and industry are awaiting the big reform in indirect taxation the introduction of the goods and services tax (GST). The scheme-wise performance in respect of major sch emes being implemented by the Department is given below:-

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I. Assistance to States for Development of Export Infr astructure and Allied Activities (ASIDE) Scheme:

Assessment of the projects completed indicates a large number of success stories, which have brought economic and social benefits to the people of that State. There has been growth in exports, employment, and growth in per capita income and increase in land, sea and air connectivity. For example:

(i) India Exposition Mart, Greater Noida is established for improving the vast potential of exporting Indian Handicrafts. In view of export enhancement of the cottage sector, a committee of secretaries headed by Cabinet Secretary had approved the project for setting up of India Exposition Mart in April 1999 based on the themes of upcoming centralized export centres in Dallas, Atlanta, Los Angeles, Utrecht in the Netherlands and Shanghai, China. IEML is India’s first state of the art project for cottage sector wherein Round ‘O’ Clock International Marketing has been conceptualized. This state-of-the-art, multi-functional venue with a rare combination of technology merged with world-class facilities and safety standards is suitable for hosting international business-to-business exhibitions, conferences, congresses, product launches, promotional events and most predominantly act as a centralized contact point for overseas buyers and the cottage based manufacturer exporters for conducting business. India Expo Centre and Mart is spread over 58 acres of land (25000 sq. mtrs covered area) and has a unique combination Trade Marts with Exhibition & Convention Facilities, Lawn, Business Centre, Restaurants, Transportation facilities and sufficient Parking Area. The contribution under Central Component of ASIDE Scheme to the project was to the tune of Rs. 12 crore. Photographs of the project are also enclosed. A further assistance of Rs 1.65 crores for up gradation of the facilities at the Mart has been provided in 2014-15.

(ii) The Testing Laboratory at Ranipet was established by South India Tanners and Dealers Association (SITDA) with financial assistance under Central Component of ASIDE, Government of India. The lab is centrally located in the Ranipet Leather Cluster which is around 110 kms from Chennai. The Council for Leather Exports (CLE) was appointed as Implementation Agency and ILIFO was engaged as the Project Management Consultant (PMC) for the project. The lab was established at a cost of Rs. 9.79 crores of which 75% was financially assisted by DOC under ASIDE scheme and the remaining 25% was brought in SPV, SITDA as promoter’s contribution. The Testing Laboratory was completed on 26-3-2014 and SITDA and officially inaugurated on 25-10-2014 by Shri J.K.Dadoo, Joint Secretary to Government of India, Ministry of Commerce and Industry, Department of Commerce, New Delhi. The SPV has entered into an agreement with TUV SUD South Asia Pvt. Ltd. for operation and maintenance of the laboratory. The lab will

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soon be accredited with ISO 17025 certification. The laboratory was established over a built up area of 12000 sq.ft, (Ground Floor and First Floor of 6000 sq. ft each). The lab has been established with an objective to meet the growing needs of leather and allied industries. The laboratory has all modern equipment for conducting the testing through physical and chemical testing which are mandatory requirements for restricted substances. The laboratory is also equipped to meet the specific needs buyers as per their testing benchmark.

Benefit arising from the project:-The proximity of the lab for the manufacturers and exporters of leather and leather products will greatly help to reduce testing lead time and expected to result in faster response to the buyers besides saving in the transactional cost as the members of the Council and SITDA will get a discount of 30% of testing fee as agreed upon by the operator. It is expected that the laboratory will result in providing authentic certification on the quality of the products, compliance to the product specifications, improved quality of the products manufactured in and around this location, prompt information on the quality of the products and importantly reduced logistic cost. Photographs of the project are also enclosed.

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II. Special Economic Zones (SEZs)

Setting up of SEZs is one of the major initiatives undertaken by the Department. The Special Economic Zones (SEZs) set up as enclaves, separated from the Domestic Tariff Area by fiscal barriers, are intended to provide a duty free environment for export production. There are seven EPZs set up by the Central Government which were covered to SEZs upon announcement of the SEZ Policy. Santacruz Special Economic Zone (SEEPZ SEZ)

The Santacruz Special Economic Zone was set up in September 1974 in 100 acres of land. At present, there are 602 units in operation in the zone. The export performance of the zone since 2010-11 is given in Table 4.1

Table 4.1 Export Performance by SEEPZ

(Rs. Crore) Year Target Export

2010-11 ---- 11,582.40 2011-12 ---- 12,607.65 2012-13 ---- 14,398.53 2013-14 ---- 16989.03 2014-15 (up to 31.12.2014) 12126.63 Source: SEEPZ Noida Special Economic Zone

The Noida Special Economic Zone (NSEZ) was set up in 1985 in Noida (U.P.). This zone has been developed in a phased manner on 310 acres of land. At present, there are 412 approved units out of which 357 are currently in operation providing employment to 48672 persons. The NSEZ is a multi product zone with units engaged in sectors like Gem & Jewellery, IT/ITES, Electronic Hardware, Engineering, Textile & Garments, Chemical & Pharmaceuticals, Leather & Sports, Plastic & Rubber, Food & Agro etc. The export performance of the zone since 2010-11 is given in Table 4.2

Table 4.2 Export Performance by NSEZ


2010-11 9,000.00 9405.08

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2011-12 9,000.00 10948.75 2012-13 9,000.00 8177.95 2013-14 10,000.00 9991.80 2014-15 ( up to 31.12.2014) - 6212.87 Source: NSEZ Kandla Special Economic Zone (KSEZ)

Kandla Free Trade Zone was set up in 1965 as Asia’s first export processing Zone (EPZ) was converted into Special Economic Zone (KASEZ) with effect from November, 2000. Kandla SEZ is situated in the Gulf of Kutch on the west coast of India, at distance of only 9 kms away from the major port of Kandla, fully developed all weather port. Mundra port with world class container terminal is only 60 kms away. The Zone’s adjectives are earning foreign exchange for the country, developing more employment opportunities. The zone has achieved all these objectives in significant measures. The total number of units operating in the zone is 185. The export performance of the zone since 2010-11 is given in Table 4.3

Table 4.3 Export Performance by KASEZ


2010-11 ---- 2672.29 2011-12 ---- 2997.02 2012-13 ---- 2969.78 2013-14 3636.07 2014-15 ( up to 31.12.2014) - 2790.13 Source: KASEZ Madras Special Economic Zone (MEPZ SEZ)

MPEZ Special Economic Zone was established in May 1984 as a Multi product Export Zone with the main objective of augmenting exports and thereby enhancing foreign exchange earnings by setting up Units inside the Zone. The zone ensure excellent infrastructure required for setting up industrial units, including developed plots and modules in Standard Design Factory buildings for immediate occupation. There are at present 132 active exporters within the zone. The year-wise exports from MEPZ SEZ since 2010-11 are given in Table 4.4.

Table 4.4 Export Performance by MEPZ SEZ

(Rs. Crore)

116

Year Target Export 2010-11 ---- 9019.08 2011-12 ---- 10807.00 2012-13 ---- 10711.00 2013-14 7376.00 2014-15 ( up to 31.12.2014) - 4814.00 Source: MEPZ SEZ Cochin Special Economic Zone (CSEZ)

CSEZ, a multi-product zone, came in to existence in 1984 and became operational in 1986. It was converted into a Special Economic Zone on November 1, 2000. CSEZ stands out amongst the SEZs in India as having the best infrastructure. It is the only Government owned SEZ in India distributing power within the Zone. It has an integrated water management system comprising a 2.25 MLD water supply system and a 1.8 MLD Common Effluent Treatment Plant. The Zone has round the clock on-site Customs clearances. A VSNL 15 GBPS gateway is installed in the Zone which provides internet connection through optical fibre cable to users. The Zone has state-of-art 1000 line telephone exchange, a video conferencing studio, a foreign post offshore banking unit, a health dispensary and branches of State Bank of India and Indus Bank with ATM facilities. CSEZ has also pioneered public-private participation in infrastructure development. The year-wise exports since 2010-11 are given in Table 4.5:

Table 4.5 Export Performance by CSEZ


2010-11 ---- 18746.00 2011-12 ---- 28637.32 2012-13 ---- 32579.47 2013-14 ---- 4455.50 (*) 2014-15 ---- 1542.00 (*) The ban on export of Gold Coins and medallions has resulted in a shortfall of export in CSEZ during the period 2014-15 and 2013-14 over the period 2012-13.

Source: CSEZ Falta Special Economic Zone (FSEZ)

The Falta Special Economic Zone has been set up over an area of 273 acres. The Zone became operational in 1985-86. At present, there are 83 units. During

117

2014-15, approval has been given to 03 new units in the Zone. The year-wise exports from the zone since 2010-11 are given in Table 4.6.

Table 4.6 Export Performance by FSEZ


2010-11 ---- 1485.24 2011-12 ---- 1470.13 2012-13 ---- 1114.85 2013-14 ---- 1820.59 2014-15 ( up to 31.12.2014) ---- 1122.12 Source: FSEZ Visakhapatnam Special Economic Zone (VSEZ)

The Visakhapatnam Special Economic Zone was established in March, 1989 as a multi product Export zone. At present, there are 100 active exporters within the zone. The year-wise exports from the zone since 2010-11 are given in Table 4.7.

Table 4.7 Export Performance by VSEZ


2010-11 1100.00 1583.00 2011-12 1402 2404.15 2012-13 3000 3123.79 2013-14 ---- 2155 2014-15 (upto 31.12.2014) 1492.48 Source: VSEZ

In addition to the above mentioned 8 Central Government owned SEZs, 11 SEZs were set up by the State Governments/private sector prior to the coming into force of the SEZ act, 2005.

After the coming into force of the SEZ Act, 2005 on 10th February 2006, 491 formal approvals have been granted for setting up of Special Economic Zones. Out of these, 352 SEZs have been notified (as on 20.02.2015) and are in various stages of operation. Development of Infrastructure in Special Economic Z ones

118

The capital outlay of Special Economic Zones for development of

infrastructure is funded under the Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme from 1.4.2002. Employment in the SEZs

As on 31st December, 2014, the total direct employment in the SEZ sector is estimated at 14,13,835 persons. It includes incremental employment of 12, 79,131 persons generated since February, 2006. The composition of total employment generated in the SEZ sector is given in Table 4.8.

Table 4.8 Employment in SEZs (as on 31 st December, 2014)

Sl. No Category Employment (Nos.) 1. 7 Central Govt. SEZs 2, 31,271 persons 2. 12 Private/State Government set-up/notified prior to SEZ

Act, 2005 74,812 persons

3. SEZs notified under the SEZ Act, 2005 11,07,752 persons TOTAL 14,13,835 persons

Investment in the SEZs

As on 31st December, 2014, the total investment in the SEZ sector in India is estimated at Rs. 3, 22,481.55 crore. Incremental investment after the SEZ Act, 2005 came into force, is estimated at Rs. 3, 18,446.04 crore. The composition of the total investment (as on 31st December, 2014) is given in Table 4.9.

Table 4.9 Private Investment in SEZs (as on 31 st December, 2014)

Sl. No. Category Investment (Rs. Crore) 1. 7 Central Govt. SEZs 12,422.97 2. 12 Private/State Government set-up/notified

prior to SEZ Act, 2005 10,738.49

3. SEZs notified under the SEZ Act, 2005 2,99,320.09 TOTAL 3,22,481.55

Exports from SEZs

119

As on 31st December, 2014, 199 SEZs have commenced exports. The

exports in the Financial Year 2014-15 (as on 31st December, 2014) have registered a decrease of 7.61% over the exports of the corresponding period of Financial Year 2013-14. Exports from the functional Special Economic Zones during the last 5 years are as indicated in Table 4.10.

Table: 4.10 Exports from the SEZs

Year Value (Rs. Crore) Increase (%) (Over previous year)

2010-11 3,15,868 43.11% 2011-12 3,64,478 15.39% 2012-13 4,76,159 31% 2013-14 4,94,077 4% 2014-15 (as on 31.12.2014)

3,48,584 -7.61% (corresponding period)

120

III. Tea Board

REVIEW OF SCHEME WISE PERFORMANCE DURING 2014-15(up to 31.12.2014) Financial -in Rs.cr. Sl. Name of

the XII XII Plan

XII Plan Physical

Targets Achievements Targets Achievements Targets

No. Plan Activity

Outlay (Rs. crore)

Major Targets 2012-13 2012-13 2013-14 2013-14 2014-15 2014-15 (upto 31.12.2014) *

Fin. Phy. Fin. Phy. Fin. Phy. Fin. Phy. Fin. Phy. Fin. Phy.

1 Planta tion 400 Irrigation (ha)

61.81

4000

63.1

7171.42

54.82

2000

54.77

7040.84

46 (Actual Receipt

upto Dec,14-

34.49

2000

19.79

4750

Development

Self –Help Group ( Nos.) 25 27 75 74 100 262

Extension Planting (ha) 1500 1056.62 1000 758.59 1500 450

1.1 Special Purpose Tea Fund

Replanting (ha) /Replacement planting(ha.)

6000 6534.04 7000 5090.24

8500 3200

Rejuvenatio n (ha) 1000 1049.05 1000 984 1500 967.1

2.1 Quality Up gradation & Product Diversification

350 Factory Modernization (units)

47.65 350 45.85 387 18.99 18 18.37 18 30

( Actual Receipt

upto Dec,14-

22.50)

100 15.00

47

Value Addition (units)

13 18 10 3 12 _

Quality certification (units)

110 14 25 5 50 9

2.2 Orthodox Production subsidy

Orthodox Production Subsidy ( m.kg.)

95 61.65 100 61.16 110 42

121

3 Market Promotion

200 International Fairs & Exhibitions -175Nos. ( for entire 12 th plan period)

18.67 28 18.6 25 19.8 36 18.84 32 26.00 (Actual Receipt

upto Dec,14-

19.50)

28 14.00 25

4 Human Resource Development

100 i. Health Care:

Drinking water 12.97 33500 12.69 42090 9.89 0 7.89 0 5 ( Actual Receipt

upto Dec,14-

3.75)

0 2.07 0

Sanitation 1600 1667 0 0 0 0

Ambulance 10 3 6 6 15 0 capital grant to Hospital/clinics

- 11 0 0 0 0

Disabled person

150 42

Medical equipments

100 1834 400 385 1

ii Education :

Education stipend/uniforms/book grant etc capital grant to schools & hostels

2000 11220 2967 12203 1000 1503

Assistance for organizing Bharat Scouts and sports activities in plantation Districts

50program

257 program

s

40program

210program

40 8

Training:

Training of small growers + workers

1000 27590 &9638 persons

48069 &1018 persons

22000 14715

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5 Research & Development

150 10 NQ 10.63 NQ 19.48 NQ(**) 20.73 NQ 15.5 ( Actual Receipt upto Dec,14-11.61)

NQ 10.95 NQ

6 Small Growers development

200 New Planting (ha) Rejuvenation (ha) Irrigation (ha) Nos. of SGH / Producers society setting up of new factories by SHGs strengthening of field officers of Tea Board field Mechanization

New Schemes proposed for 12 th Plan

0 0 0 0 0 0 0 0

7 National Programme for Tea Regulation

25 0 0 0 0 0 0 0 0

8 Scheduled Caste- sub Plan

0 9.58 - 8.58 - 1.4 - 2.56 - - - 1.00 -

Total 1425 160.68 159.45 124.38 123.16 122.5 (Actual Receipt Rs.101.85)

62.81

(*)Prov isonal

(**)NQ-Not Quantifiable

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IV. Coffee Board( REVIEW OF SCHEME-WISE PERFORMANCE DURING 2012-13, 2013-14 & 2014-15 (up to December 2014))

Sl. No

Name of Scheme/ programme

Objective/ Outcome

Physical Performance during 2012-13


Physical Target during 2014-15

Physical Performance up to Apr.-Dec. 2014

Reason for variation

1 2 3 4 5 6 7 8 1 R & D for

Sustainable coffee production

To increase coffee production, productivity and quality through sustainable research & developmental approach.

Production estimates – 3,18,200 MT Productivity – 846 kg./ha.

Post Monsoon estimate 3,04,500 MT Productivity-799 kg/ha



Post monsoon estimates, subject to change depending on weather conditions

2 Development Support

To provide development support to enhance farm productivity through replanting, water augmentation, pollution abatement, coffee development in NE Region and NTA (Andhra Pradesh & Orissa), capacity building among various stake holders in the Indian coffee sector, welfare support to coffee sector workers and tiny coffee growers.

Replantation - 3120 ha. Water Augmentation & Quality Up-gradation -7126 Units NER Expansion : &. Consolidation : 320 ha. Quality upgradation: 407 units NTA Expansion : 3403 ha. Quality upgradation : 519 units

Replantation/Expansion - 2291 ha. Water Augmentation & Quality Up-gradation - 4739 Units NER Expansion/ Consolidation : 451 ha. Quality upgradation: 227 units NTA Expansion : 3344 ha. Quality upgradation : 1284 units

Replantation/Expansion – 1700 ha. Water Augmentation & Quality Up-gradation – 3800 Units NER Expansion/. Consolidation –300 ha. Quality upgradation–300 units NTA Expansion – 3000 ha. Quality upgradation – 500 units

Replantation/Expansion – 115.34 ha. Water Augmentation & Quality Up-gradation – 264 Units NER Expansion/. Consolidation – 67.95 ha. Quality upgradation - NTA Expansion–3600 ha. Quality upgradation – 480 units

The approval of plan schemes received from the Govt. of India only on 18.12.2014. Hence, the progress is low.

124

Sl. No


Objective/ Outcome




Physical Performance upto Apr.-Dec. 2014


1 2 3 4 5 6 7 8 3 Risk

Management to coffee growers

To provide effective risk management aid to those coffee growers likely to be impacted by adverse rainfall.

Small Growers : 2112 nos.




RISC is implemented and marketed by AIC. Coffee Board provide subsidy on premium to the growers. Hence, achievement under this scheme mainly depends on the marketing of products by AIC.

4 Export Promotion of coffee

To enhance market share of value added and high value coffees in key overseas markets to augment export earnings and to enhance market share of Indian coffees in far off key international markets.

Export of coffee : Qty in MT: 2,99,288

Export of coffee : Qty in MT : 2,98,152



Based on the export permits issued from the Coffee Board

5 Market Develop-ment

To enhance domestic coffee consumption and carry out market research and intelligence and dissemination of information to stake holders

Domestic Consumption :survey is underway

--

Domestic Consumption : Survey is underway

Domestic Consumption : Survey is underway

Domestic Consumption : Survey is underway .

125

Sl. No


Objective/ Outcome




Physical Performance upto Apr.-Dec. 2014


1 2 3 4 5 6 7 8 6 Support

for coffee processing

To achieve value addition in coffee by supporting the processing activities and to support small and medium entrepreneurs for setting up quality coffee processing units.

Setting up -14 nos of Coffee processing units

Setting up - 6 nos of Coffee processing units

Setting up -10 nos of Coffee processing units

-- The approval of plan schemes received from the Govt. of India only on 18.12.2014. Hence, the progress is low. The targets will be achieved in fourth quarter.

7 Support for Mechanisa-tion of farm operations

To provide support to coffee growers to encourage the use of farm machineries to improve productivity and efficiency in carrying out crucial farm operations for coffee in time particularly in the context of farm labour.

Machineries – 5921 units.




Balance is likely to be achieved in fourth quarter.

126

Traditionally, coffee is cultivated in the Southern States of India namely Karnataka, Kerala and Tamil Nadu. Expansion of area under coffee is mainly taking place in the non traditional area viz., Andhra Pradesh and to some extent in Odisha State. Efforts are also made to encourage coffee cultivation in the North Eastern States like Assam, Arunachal Pradesh, Meghalaya, Mizoram, Nagaland and Manipur with very limited success. Area under Coffee Coffee is cultivated in an area of around 4.15 lakh hectares predominantly in the traditional areas covering the States of Karnataka, Kerala and Tamil Nadu, which contribute to around 98 percent of the total production. Coffee is also cultivated to some extent in Non-Traditional Areas of Andhra Pradesh and Odisha and to a lesser extent in the North Eastern States of Assam, Arunachal Pradesh, Meghalaya, Mizoram, Tripura, Nagaland and Manipur with main emphasis on tribal development and afforestation. Coffee Holdings There are about 3.00 lakh coffee holdings in the country, of which around 2.98 lakh holdings (99%) constitute the small growers’ category (upto 10 hectares) and the balance 1% of the total holdings fall under the large grower category with holding size of more than 10 hectares. Production The final crop estimates for 2013-14 have been placed at 3,04,500 MT consisting of 1,02,200 MT of Arabica and 2,02,300 MT of Robusta as compared to the 2012-13 final crop estimates of 3,18,200 MT comprising of 98,600 MT of Arabica and 2,19,600 MT of Robusta. The post-Monsoon crop estimates for the year 2014-15 have been placed at 3,31,000 MT comprising of 99,600 MT of Arabica and 2,31,400 MT of Robusta. Productivity Based on the final crop production for the year 2013-14, the overall productivity of coffee was 799 kg/ha. The productivity for Arabica was 564 kg./ha and for Robusta, it was 1011 kg/ha. As far as the traditional area is concerned, the overall productivity for 2013-14 was 905 kg/ha. with the productivity for Arabica being 733 kg/ha and that for Robusta being 1015 kg/ha.

127

Export of Coffee:

Coffee is primarily an Export Oriented Commodity and presently 75% of Coffee is being exported while balance is being consumed domestically. The total quantity of coffee exported from India during 2013-14 including re-exported coffee after value addition was 2,98,565 Metric Tonnes. The top five export destinations for Indian Coffee are Italy, Germany, Russian Federation, Belgium and Turkey which accounted for about 50.81% of our total coffee exports. The value realization out of coffee exports during 2013-14 was Rs. 4537.00 crores.

During the year 2014-15 (upto 31.12.2014), India has issued an export permit for a quantity of 2, 03,560 MT of coffee valued at Rs.3, 480.00 crores, as against the export target of 2, 60,000 MTs.

V. Rubber Board

Review of Past performance-Scheme – wise: During 2012-13 and 2013-14, XI plan schemes were continued, pending approval of 12th Plan proposals.

Review of past performance- Scheme-wise Physical Targets & Achievement

Schemes Major Physical Components 2012-13 2013-14

Target Achievement Target

Achievement

Scheme 1 a) Planting (ha) 9000 10047 9000 8409

Rubber Plantation Development Scheme

b) Input Supply with price concession (ha) 20000 19000 15000 15000

c) Formation of New RPS/SHGs (No.) 50 140 50 63 d) Generation of quality planting materials

(Lakh No.) 7.0 9.91 7.0 9.81

e) Rubber Agro-management units (ha) 2950 3038 2150 2401

f) Farmer education programmes & field training (No. of participants) 10000 92100 100000 132250

Scheme 2 a) Cross pollination (No.) 11000 14676 11000 11972 Research b) Testing of soil. leaf, latex, ethephon

and rainguarding material (No.) 70000 66197 70000 73276

c) Scientific and popular publications (No.) 60 194 60 170

Scheme 3 Processing Quality

a) Quality Upgradation -TSR (No.) 5 7 5 2

b) Modernisation – TSR (No.) 6 13 6 3

128

Upgradation & Product Development

c) Processing, value addition and quality improvement –rubberwood (No.) 4 2 4 2

Scheme 4 Market Development & Export Promotion

a) Strengthening RPS sector in marketing of rubber (No.) 11 13 11 12

b) Strengthening RPS sector in marketing of inputs (No.) 2 10 2 10

c) Brand promotion/incentive schemes on logo implementation (tonne) 3000 17813 3000 2724

d) Participation in international trade fairs (No.) 4 4 8 9

Scheme 5 Human Resource Development

a) Training (no. of participants) 10000 11066 10000 9447

b) Labour Welfare Programmes (no. of beneficiaries) 21650 26844 21650 32731

Scheme 6 a) Planting (ha) 7500 9779 7500 8588 Rubber Dev. in the NE Region

b) Generation of quality planting materials (Lakh No.) 5.0 5.02 5.0 3.61

Review of physical performance of plan scheme during 2014-15 Scheme: Sustainable and inclusive development of natural rubber sector

Sl. No.

Major Components 2014-15 Targets

Achievement (April-December)

Remarks

1 Rubber Plantation Development & Extension Other than North East Planting (ha) 4000 4929 Tribal Rehabilitation Planting (ha) 80 327 Boundary Protection Support for plantations (ha) 200 50 Fund shortage Formation & Strengthening of RPS/SHG (nos.) 500 110 Fund shortage Farmer education programmes (participants) 130000 97133 Establishment & maintenance of GPC (nos.) 75 20 Fund shortage Women Empowerment (nos.) 200 0 Could not be taken

up due to fund shortage

Critical Input Supply with price concession (ha) 15000 15000

Rubber Agro Management Units (ha) 150 0

Could not be taken up due to fund shortage

Entrepreneurship development for farming services (ha) 100 0

Generation of Quality planting material (lakh nos.) 8 9.57 Farm Mechnisation (nos.) 125 0 Could not be taken

up due to fund shortage

Demonstration and Training Centres (nos.) 2 2 On-farm advisory services and demonstration 2 1.08

129

Sl. No.



Remarks

(lakh nos.) Extension Research and capacity building of

Extension Officers (nos.) 25 76

North East Planting (ha) 4000 3650 Tribal Development Planting (ha) 450 266 Boundary Protection (ha) 2000 2093 Model Nurseries (nos.) 1 0 Deferred for next

year due to shortage of funds

Maintenance of Board's Nurseries (nos.) 3 3 Input Supply with price concession (ha) 4000 2100 fund shortage Agro-management Demonstration-Nucleus

Estates in Tripura, RRTC, Assam and District Development Centres in the NE (ha)

1000 365

Farmer Skill upgradation & Group Empowerment (nos.) 12000 17959

Processing & Quality Upgradation (nos.) 50 49

Farm Mechanisation (nos.) 20 0

Could not be taken up due to fund shortage

Advisory & Extension Services Support (nos.) 50000 21852 2 Strengthening Research

(Rubber being a crop with long gestation period, research achievements are not quantifiable. However a few quantifiable parameters are provided)

Cross pollinations (nos.) 13000 0

Season is February-March

Production of hybrid seeds(nos.) 1600 3599 Hybrids under evaluation(nos.) 3600 4664 Germplasm lines under evaluation (nos.) 6000 4992 Testing of Soil, leaf, latex, ethephon and rain

guarding materials (nos.) 100000 51596

Ongoing laboratory and field trials (nos.) 675 658 Field visits & advisories given (nos.) 3000 2455 Supply of buds of nucleus planting materials of

new clones (nos.) 13000 33281

Training in Centres of excellence (nos.) 25 0 fund shortage Publications (nos.) 80 107 Number of new projects initiated 50 24 fund shortage Number of projects completed 100 50 fund shortage Number of ongoing projects 595 572 3 Technology Upgradation & Market Development Technology Upgradation Rubber Assistance for rubber processing units (nos.) 5 0 fund shortage Central Testing Laboratory (nos.) 1 1 Demonstration and Training (nos.) 2 2

130

Sl. No.



Remarks

Effluent treatment, green technology & rubberisation of roads (nos.) 2 0

fund shortage

Rubberwood Value addition & quality improvement, waste

utilisation, SHG activities (nos.) 2 0

fund shortage

Support to Indiawood and Metrowood (nos.) 2 2 Wood Testing Laboratory (nos.) 1 1 FSC Certification (nos.)

1 0 Could not be taken up due to fund shortage

Market Development Working capital loan for trading of NR (nos.) 16 11 Interest subsidy, procurement of containers,

transportation of raw material (nos.) 25 13

Grant-in-lieu of share capital (nos.) 3 0 fund shortage Working capital loan for trading of plantation

inputs (nos.) 16 11

Improvement in packaging of rubber (nos.) 3 0 fund shortage Participation in international trade fairs (nos.) 6 5 Grant to exporters for participation in trade fairs

(nos.) 12 11* * 2013-14 claims

Financial incentives to exporters for developing publicity materials to be used in trade fairs (nos.)

8 2* * 2013-14 claims

Participation in domestic fairs/buyer seller meets and training (nos.) 8 0 Could not be taken

up due to fund shortage Electronic Weighing Machine to Rubber

Dealers(nos.) 30 0

Brand Promotion scheme on "Indian NR" (tonne) 5000 82 Export could not be taken up due to higher price in domestic market

4 Human Resource Development Training Programmes (participants) 3500 4093 Tapping Skill Development (participants) 3500 3433 Labour Welfare (beneficiaries) 27630 11425 fund shortage 5 Infrastructure development ( no. of works) Works completed 16 Works in progress 36 12 Works to be initiated 6 Works terminated 2 6 Statistical Services, Information Services and e-

governance Programme

Statistical Services(Field Suvery ) (nos.) 12 9 Statistical Services(Publications ) (nos.) 2 2 Information Services(Publications) (nos.) 40 32 Information Services(Exhibitions) (nos.) 8 5 Information Services(Advertisements) (nos.) 40 48 e-Governance Programme Works/Contracts Related (no. of projects) 6 1 5 projects

131

Sl. No.



Remarks

progressing Data Centre/DR Centre equipment (nos.) 3 2 End-User Equipment (nos.) 40 0 Fund shortage Capacity Building (nos.) 95 0 Fund shortage

VI. SPICES BOARD

Review of past performances:

Indian spices export have been able to continue the record strident gains in both volume and value during 2013-14. The total export of spices during the year has crossed Rs.13, 000 crore mark for the first time. During April- March 2013-14, a total of 8,17,250 tonnes of spices and spice products valued Rs.13,735.39 crore (US$2267.67 Million) has been exported from the country as against 7,26,613 tonnes valued Rs.12,112.76 crore (US$ 2212.13 Million) in 2012-13 registering an increase of 12% in volume and 13% in rupee terms and 3% in dollar terms of value.

The total export of Spices during 2013-14 has exceeded the target in terms of both quantity and value. Compared to the target of 6,24,700 tonnes valued Rs.10394.00 crore (US$1825.00 Million) for the financial year 2013-14, the achievement is 131% in terms of quantity and 132 % in rupee and 124% dollar terms of value.

During 2013-14, the export of pepper, cardamom(small), chilli, ginger, coriander, cumin, fennel, fenugreek, celery, other seeds like mustard, aniseed, ajwanseed etc., nutmeg and mace, garlic and other spices such as asafoetida, tamarind etc., have shown increase both in volume and value as compared to 2012-13. The export of value added products like curry powder/paste and spice oils & oleoresin had also shown increase both in volume and value as compared to 2012-13. In the case of cardamom (large) and turmeric the increase is in value only. In the case of mint products the increase is in terms of volume only.

In the spices export basket, chilli (38%), cumin (15%) and turmeric (10%) together accounted for 63% of the total volume and mint products (25%), chilli (20%), spice oils & oleoresins (13%) and cumin (11%) together accounted for 69% of the total value in 2013-14.

Average domestic prices of pepper, cardamom (small), coriander, turmeric,

132

fenugreek, mustard, saffron, chilli, ginger, garlic, fennel, ajwan seed, tamarind and clove have increased whereas prices of cardamom (large), cumin, nutmeg and mace have decreased during 2013-14 compared to the previous year.

The Board has submitted a XII plan EFC/SFC proposal with a revised total outlay of Rs.670.00 crore to the Government and the same has now been approved. However, during 2013-14, pending the approval of XII plan, the Government has issued guidelines for continuation of the XI plan schemes and utilization of budget provision for the Financial Year (FY) 2013-14. Accordingly XI Plan schemes and its programmes were continued during 2013-14 with a financial achievement of Rs.95.35 crore against the annual plan budget allocation of Rs.94.50 crore.

During 2013-14, an area of 2125 hectares was brought under replantation of cardamom (small). In the case of cardamom (large), 1045 hectares was brought under replanting/new planting.

Programmes such as providing assistance for irrigation & land development, rain water harvesting devices, improved curing devices etc. were implemented for cardamom. In the North Eastern region, assistance was given for cultivation of cardamom (large), ginger and Lakadong turmeric. For other spices, assistance was given for post-harvest improvement operations like supply of polythene sheets, threshers, polishers and training to farmers. Support was also given for organic farming of spices, promotion of IPM, setting up of vermi-compost units etc.

The new scheme for development of pepper in Wayanad district of Kerala &

North Eastern states was sanctioned by the Ministry during October 2009 and its implementation was continued during 2013-14. Under replantation/rejuvenation programme, an area of 3626 hectares has been covered in Wayanad district and North Eastern states.

The Board continued the implementation of the pepper replantation and rejuvenation programme in Idukki district of Kerala, under the National Horticulture Mission programme and covered an area of 3481 hectares during 2013-14. The project implemented since 2009-10 covered a total area of 21,396 hectares, came to an end on 31.3.2014.

Under Export development and promotion of spices, programmes for adoption of hi-tech in spice processing, setting up/upgradation of in house quality control lab, sending business samples abroad, setting up common infrastructure facilities for grading, processing, packing, warehousing etc., participation in

133

international fairs/exhibitions etc., were implemented during 2013-14. The Board participated in 14 international fairs in different countries and 38 domestic exhibitions.

The Spices Board is in the process of establishing crop specific Spices Parks in major production/market centers. The Board has completed the establishment of Spices Park at Chhindwara, Madhya Pradesh; Puttadi, Kerala; Jodhpur, Rajasthan; Guna, Madhya Pradesh; Guntur, Andhra Pradesh and Sivaganga in Tamil Nadu. The Spices Park at Kota and Rae Bareli are under construction.

The Central Quality Evaluation Laboratory of the Board at Cochin has been extending its activities to accommodate more samples for analysis of various parameters. In addition to this, laboratories set up in Mumbai, Delhi, Chennai, Guntur and Tuticorin are in operation. The establishment of the Quality Evaluation Lab at Kolkatta and Kandla are in progress. All the regional quality evaluation laboratories of the Board are established under the ASIDE scheme.

During the period, the Quality Evaluation laboratory analysed 83,671 Samples for various parameters including pesticide residues, Aflatoxin, illegal dyes etc. in chilli & chilli products, curry powder, masalas and turmeric powder.

Indian Cardamom Research Institute of the Board is undertaking research programmes on varietal improvement, biotechnological interventions, integrated nutrient, pest and disease management and scientific post-harvest technologies and transfer of technology in respect of cardamoms(small and large). Extension activities envisaged are advisory services on Integrated Pest Management, soil test based fertilizer recommendations, spice clinics, training on spices production technology, bioagents production and supply.

The Official Language section functioning in HO extended assistance to the Board to implement Official Language (OL) policy of the Government effectively during the year 2013- 14. It is the nodal point to monitor implementation of OL policy in the offices of the Board spread all over the country. With concurrence and approval of the Official Language Implementation Committee of the Board, Official Language section formulated and carried out various promotional programmes in line with the Annual Programme as well as other instructions and orders issued by the Dept. of Official Language, M/o Home Affairs with regard to use of Hindi as Official Language from time to time.

A paperless E-office system has been implemented in the Board in sync with the needs of a modern Government. The system has replaced the traditional

134

physical file with electronic file system. The activities of the Board have changed significantly with the leverage of information technology. Many manual operations are replaced with online systems which effectively reduce the workload of various departments of Board and reduce the turnaround time for their operations. EDP department facilitates the use of information technology in various departments of Board by working along with them. In effect, this makes the whole system faster and more productive and enables Board to perform more efficiently. India has now initiated strategies for harmonization of global standards for quality parameters in spices and culinary herbs taking into consideration the international and national legislations and other available standards and specifications. The Spices Board India hosted the first Session of the Codex Committee on Spices and Culinary Herbs (CCSCH1) from 11th -14th February 2014 in The Gateway Hotel, Marine Drive, Kochi, Kerala, India.

The XII World Spice Congress, a biennial event, was held at Cochin during 16 – 19th February 2014 with the theme of ‘Sustainability and Food Safety: Global Initiatives’ which has become very crucial for spice Industry as a whole. WSC could bring in nearly 800 delegates covering 45 countries. The WSC witnessed discussion on various topics such as Sustainable Agriculture Programmes, Engaging Research to meet Industry Challenges, Regulations; Harmonization and Simplification; Crops and Markets and Value Addition in Spices, Eminent speakers and experts in the filed presented the topics.

The Board has effectively implemented the RTI Act 2005 and complied with all the directions of the Government in this regard. During 2013-14, a total of 58 applications were received under RTI Act and information disseminated in all the cases within the stipulated time.

Production of spices Production development of cardamom (small & large) is looked after by Spices Board and production development of all other spices is under the Union Agriculture Ministry and the concerned State Agriculture/Horticulture Departments. The Directorate of Arecanut & Spice Development, Calicut, monitors the Central Sector Schemes of the Ministry of Agriculture on spices in this regard. Cardamom (small & large)

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The estimated production of cardamom (small & large) during the last three years is given in table I and II

Table I State-wise area and production of cardamom (small)

(Area in Hect., Production in MT) State 2012-13 2013-14 2014-15(*)

Area Production Area Production Area Production

Kerala 39660 11350 39730 14,000 39730 16,000

Karnataka 25050 1800 25080 1050 25080 1050

Tamilnadu 5160 850 5160 950 5160 950

Total 69870 14000 69970 16,000 69970 18,000

(*) Preliminary crop estimation

Table II State-wise area and production of cardamom (large)

(Area in Hect., Production in MT)

State 2012-13 2013-14 2014-15

Area Production Area Production Area Production

Sikkim 22755 3483 22755 3744 23082 4075

West Bengal 3305 662 3305 721 3305 775

Total 26060 4145 26060 4465 26387 4850

(*) Preliminary crop estimation

Export of spices The export of spices from India during the last few years is given below. Export of spices from India

Year Quantity(MT) Value(Rs.crores) Value(US$ Million) 2008-09 470,520 5300.25 1168.40 2009-10 502,750 5560.50 1173.75 2010-11 525,750 6840.71 1500.00 2011-12 575,270 9783.42 2037.76 2012-13 7,26,613 12112.76 2212.13 2013-14 8,17,250 13735.39 2267.67 2014-15(APR-NOV) 5,75,145 9545.39 1572.27

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Spices export from the country continued its momentum of growth and recorded yet again a new peak both in quantity and value during the financial year 2013-14 During the financial year 2013-14 a total of 8,17,250 MT of spices and spice products valued Rs.13735.39 crore (US$ 2267.67 Million) has been exported as against 7,26,613 MT valued Rs.12112.76crore (US$ 2212.13 million) in 2012-13,registering an increase of 12% in volume and 13% in rupee terms and 3% in dollar terms of value. Compared to the spices export target of 6,24,700 MT valued Rs.10394.00 crore (US$1825 million) set for the financial year 2013-14, the achievement is 131% in terms of quantity and 132 % in rupee and 124% dollar in terms of value. The item wise export of spices during 2013-14 and Apr – Nov 2014 is given in Table III .

Table III Item 2013-14(E) 2014-15(Apr-Nov)(E)

Quantity (Tons)

Value (Crores)

Qty (Tons)

Value (Crores)

Pepper 21250 940.02 13100 693.25 Cardamom (small) 3600 283.81 2195 180.96 Cardamom (large) 1110 79.61 340 43.85 Chilli 312500 2722.27 218000 2145.80 Ginger 23300 256.14 19000 173.38 Turmeric 77500 666.76 59000 474.75 Coriander 45750 371.86 30500 320.42 Cumin 121500 1600.06 112500 1245.90 Celery 5600 36.61 3900 29.22 Fennel 17300 160.01 8650 95.91 Fenugreek 35575 133.78 14450 80.47 Other seeds (1) 27800 154.26 16000 90.55 Garlic 25650 83.87 13510 46.48 Nutmeg & mace 4450 262.86 2625 156.65 Other spices (2) 34700 418.47 20000 258.40 Curry powders/paste 23750 401.32 14850 282.20 Mint products (3) 24500 3430.42 18700 2004.25 Spice oils & oleoresins 11415 1733.25 7825 1222.95 Total 817250 13735.39 575145 9545.39 Value in Million US$ 2267.67 1572.27

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(E): Estimate (1) include mustard, aniseed, ajwanseed, dill seed, poppy seed etc (2) include tamarind, asafetida, cassia, saffron etc (3) include mint oils, menthol & menthol crystal Source : DGCI&S Kolkata/Exporters’ Returns/DLE from Customs

Import of spices

India is importing all spices mainly spices like pepper, fresh ginger, cassia, clove, cardamom (large) etc. Pepper is mainly imported for the industrial purposes.

The estimated Import of spices during 2013-14 was 1, 30,010MT valued at 2905.13crores (US$ 481.86 million) as compared to 1, 31,722 MT valued at 2102.32 crores (US$ 387.90 million) in 2012-13.

VII. Tobacco Board

India is the 3rd largest producer of tobacco in the world The FCV tobacco is grown principally in the states of A.P. 64%, Karnataka 35% and Maharastra & Orissa below 1%. The Board fixes the Flue Cured Tobacco crop size every year in Karnataka, Andhra Pradesh, Maharashtra and Orissa states to match the demand for the same both for domestic and export front.

Production: The year-wise crop targets and actual production of FCV Tobacco products during the last four years are as follows in Table *estimated

Exports

The Board undertakes the following measures for sustaining and improving the exports of Indian tobacco.

• Participation in international trade fairs and exhibitions. • Intensive interaction at high level bilateral official meetings. • Undertaking an extensive advertisement campaign in the international print

media to create brand image for Indian tobacco. • Sponsoring trade delegations to various countries and inviting delegations

from abroad.

Year-wise exports of tobacco and tobacco products during the last few years are as follows:

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Year Quantity (MT) Value (Rs. Crores) Value(Million USD) 2011-12 2,40,395 4,100.30 854.94 2012-13 2,63,575 4,979.05 914.43 2013-14 2,64,384 6,059.31 1,001.54 2014-15 (Apr-Dec)*

1,86,982 4,253.83 698.89

* Provisional

Auctions:

Auction system for sale of FCV tobacco was introduced during 1984 in Karnataka and during 1985 in Andhra Pradesh. At present, Board is conducting auctions at 11 auction platforms in Karnataka and 19 auctions plat forms in Andhra Pradesh. Following are the details for crop year 2014-15:

(a) For Andhra Pradesh 2014-15 crop season, a total quantity of 193.85 mkg of tobacco was marketed at an average price of ₹ 115.49 per kg between 01-04-2014 to 23-09-2014 (the auction sales were concluded on 23-09-2014).

(b) For Karnataka 2014-15 crop season, FCV tobacco auctions are in progress, as on 16-12-2014 a total quantity of 34.51 mkg of tobacco was marketed at an average price of ₹ 114.92 per kg.

Export Promotion Activities With a view to promote the exports of tobacco and tobacco products, the Board had participated in international exhibitions at the following places to show case the Indian unmanufactured tobacco and tobacco products as a part of export promotion activities.

1) World Tobacco Middle East 2014, Dubai, 01 & 02 April, 2014

2) Euro Tab 2014, Krakow, Poland – 19th & 20th May, 2014

3) Global Tobacco Networking Forum (GTNF), Washington D.C. & West Virginia, U.S.A. – 29th September to 3rd October 2014. Chairman, Tobacco Board had participated Global Tobacco Networking Forum, in USA. The organizers of GTNF selected Tobacco Board and honoured the “2014 Golden Leaf Award” under category “Most impressive public service initiative”. Tobacco Board is the only one Government organization awarded since its inception by the organizers from 2006.

139

VIII. Marine Products Export Development Authority (MPEDA)

During the financial year 2013-14, exports of marine products reached an all-time high of US $ 5007.70 million. Marine product exports, crossed all previous records in quantity, rupee value and US $ terms. Exports aggregated to 9,83,756 MT valued at Rs. 30,213.26 crores and US $ 5,007.70 million. Compared to the previous year, seafood exports recorded a growth of 5.98 % in quantity, 60.23% in rupee and 42.6 % growth in US $ earnings respectively. The unit value realization also reached to record high from USD/Kg 3.78 during 2012-13 to USD/Kg 5.09 during 2013-14 and recorded growth of 34.55%. The increased production of L. Vannamei shrimp, has helped to achieve higher exports.

Exports during 2013-14 compared to 2012-13

1425

1331

1478

1644

1853

1899

1909

2133

2857

3508

3512

5008

0

1000

2000

3000

4000

5000

6000

US

$ M

illi

on

EXPORT PERFORMANCE SINCE 2002-03 (US $ MILLION)

Export details 2012-13 2013-14 Growth % Quantity Tonnes 928215 983756 5.98 Value Rs.crore 18856.26 30213.26 60.23 Value US $ Million 3511.67 5007.70 42.60

140

Major items of export

Frozen shrimp continued to be the major export value item accounting for a share of 64.12% of the total US $ earnings. Shrimp exports during the period increased by 31.85%, 99.54% and 78.06% in quantity, rupee value and US $ value respectively. There was all time high growth in unit value realization of frozen shrimp at 35.05%.

The overall export of shrimp during 2013-14 was to the tune of 3,01,435 MT

worth US $ 3210.94 million. USA is the largest market (95,927MT) for frozen shrimps exports in quantity terms followed by European Union (73,487 MT), South East Asia (52,533MT) and Japan (28,719 MT).

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

Quantity Tonnes Value Rs. 10 lakh US $ '000

928215

1885626

351167

983756

3021326

500770

Exports during 2013-14 compared to 2012-13

2012-13

2013-14

Unit value (US$/Kg) 3.78 5.09 34.55

141

The contribution of cultured shrimp to the total shrimp export is 73.31% in terms of US $. The export of cultured shrimp has shown tremendous growth of 36.71% in quantity and 92.29% in dollar terms.

The export of Vannamei has shown tremendous growth to 1,75,071 MT from 91,171 MT and US $ 1,994.27 million from 731.01 million compared to 2012-13. The export of Vannamei recorded a growth of 92.03% in quantity and 172.81% in dollar terms. 44.59 % of total Vannamei shrimp was exported to USA followed by 17.07% to EU, 16.54% to South East Asian countries and 4.01 % to Japan in terms US $. Export of Black Tiger shrimp reduced from US $521.33 million to 435.79 million and 61,177 MT to 34,133 MT compared to last year.

Fish, has retained its position as the principal export item in quantity terms and the second largest export item in value terms, accounting for a share of about 32.97% in quantity and 14.15% in US $ earnings. Unit value realization of fish also increased by 21.65%.

Export of Fr. Squid has shown growth of 15.98%, 25.68% and 10.78% in terms of Quantity, Rupee Value in and US $ terms. However it has shown decrease in unit value realization by 4.48%. Fr. Cuttlefish recorded a growth of 8.34% in quantity. Dried items have shown a positive growth in terms of rupee value by 21.72% and in dollar terms by 9.86%. Live items exports shown a growth by 16.17%, 42.43% and 26.81% in quantity, rupee value and US $ realization respectively compared to the previous year. The details of major items of exports are given in the following table

Export Compilation for April- 2013 to March- 2014 - Item wise Total Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million

ITEM Share % Apr-2013 - Mar-2014

Apr-2012 - Mar-2013 (%)

FROZEN SHRIMP

Q: 30.64 301435 228620 31.85 V: 64.11 19368.30 9706.36 99.54 $: 64.12 3210.94 1803.26 78.06

US$: 10.65 7.89 35.05 FROZEN FISH

Q: 32.97 324359 343876 -5.68 V: 14.22 4294.81 3296.86 30.27 $: 14.15 708.63 617.59 14.74

US$: 2.18 1.80 21.65 FR CUTTLE FISH

Q: 6.97 68577 63296 8.34 V: 4.59 1386.98 1354.28 2.41

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$: 4.56 228.13 251.54 -9.31 US$: 3.33 3.97 -16.29

FR SQUID

Q: 8.89 87437 75387 15.98 V: 5.73 1731.97 1378.08 25.68 $: 5.68 284.60 256.90 10.78

US$: 3.25 3.41 -4.48 DRIED ITEM

Q: 6.90 67901 72953 -6.93 V: 3.30 998.00 819.90 21.72 $: 3.35 167.89 152.81 9.86

US$: 2.47 2.09 18.04 LIVE ITEMS

Q: 0.52 5080 4373 16.17 V: 0.93 281.85 197.89 42.43 $: 0.93 46.70 36.82 26.81

US$: 9.19 8.42 9.16 CHILLED ITEMS

Q: 2.01 19755 26868 -26.47 V: 1.75 527.84 537.11 -1.73 $: 1.77 88.48 99.87 -11.41

US$: 4.48 3.72 20.49 OTHERS

Q: 11.10 109212 112841 -3.22 V: 5.37 1623.50 1565.78 3.69 $: 5.44 272.34 292.86 -7.01

US$: 2.49 2.60 -3.92 TOTAL

Q: 100.00 983756 928215 5.98 V: 100.00 30213.26 18856.26 60.23 $: 100.00 5007.70 3511.67 42.60

US$: 5.09 3.78 34.55

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FROZEN SHRIMP

31%

FROZEN FISH

33%

FR CUTTLE FISH

7%

FR SQUID

9%

DRIED ITEM

7%

LIVE ITEMS

0%

CHILLED ITEMS

2% OTHERS

11%

ITEM WISE 2013-14( IN MT)

FROZEN SHRIMP

64%

FROZEN FISH

14%

FR CUTTLE FISH

5%

FR SQUID

6%

DRIED ITEM

3%LIVE ITEMS

1%

CHILLED ITEMS

2% OTHERS

5%

ITEM WISE 2013-14 (in US $)

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Major export markets

South East Asia continued to be the largest buyer of Indian marine products with a share of 26.38% in terms of US $ value realization. USA is the second largest market with a share of 25.68% followed by European Union (EU) (20.24%), Japan (8.21%), other countries (8.20%), China (5.85%) and Middle East (5.45%). The exports to South East Asian Countries as shown positive growth by 11.47%, 84.67% and 62.72% in terms of Quantity, Rupee value and US dollar terms respectively.

Exports to US had registered a tremendous growth of 19.94% in quantity and 72.06% in US$ realization and is mainly attributed to the export of Fr. Shrimp which showed a growth of about 34.81% in volume and 92.40% in US$ terms. Exports of Vannamei shrimp showed a tremendous increase in US market by 59.63 % in quantity and 135.71% in US $ realization.

Export to Japan registered increase in terms of US $ by 10.30%. Export of Frozen Shrimp increased by 7.38% in quantity terms and 28.23 % in dollar terms.

Export to Middle East countries has shown good growth of 40.13%, 43.65% and 30.29% in terms of Quantity, Value and Dollar terms respectively.

The details on major markets for Indian marine products are given in the following table.

Market wise Exports - April- 2013 to March- 2014

Q: Quantity in Tons, V: Value in Rs. Crores

$: USD Million

Country Share % Apr 2013-Mar 2014

Apr 2012- Mar 2013 (%)

JAPAN Q: 7.27 71484 76648 -6.74

V: 8.16 2463.83 1999.59 23.22

$: 8.21 410.95 372.57 10.30 USA Q: 11.27 110880 92447 19.94

V: 25.63 7744.67 4026.48 92.34

$: 25.68 1286.04 747.45 72.06 EUROPEAN UNION Q: 17.76 174686 158357 10.31

V: 20.29 6129.69 4176.42 46.77

$: 20.24 1013.28 777.41 30.34 CHINA Q: 7.70 75783 87776 -13.66

V: 5.85 1766.72 1444.86 22.28

$: 5.85 293.12 269.47 8.78

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SOUTH EAST ASIA Q: 38.63 380061 340944 11.47

V: 26.63 8046.59 4357.28 84.67

$: 26.38 1320.95 811.80 62.72 MIDDLE EAST Q: 5.90 58040 41419 40.13

V: 5.29 1599.37 1113.34 43.65

$: 5.45 272.65 209.26 30.29

OTHERS Q: 11.47 112822 130623 -13.63

V: 8.15 2462.40 1738.29 41.66

$: 8.20 410.71 323.71 26.88 Total Q: 100 983756 928215 5.98

V: 100 30213.26 18856.26 60.23

$: 100 5007.70 3511.67 42.60

JAPAN

8%

USA

26%

EUROPEAN UNION

20%

CHINA

6%

SOUTH EAST ASIA

26%

MIDDLE EAST

6%OTHERS

8%

Market wise 2013-14 (in US $)

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Major Port wise Exports:

Marine products were exported through 26 sea/air/land ports. Exports improved from Vizag, Chennai, Krishnapatnam, Tuticorin and Mangalore compared to the corresponding period during the last year. Pipavav is the major port in terms of quantity (25.27%) and Vizag is the major port in terms of dollar value (22.59%).

Outlook for 2014-15

MPEDA envisages target of USD 6.0 Billion for the year 2014-15. Increased production of L. Vannamei shrimp, Quality control measures and increase in infrastructure facilities for production of value added items are expected to help in achieving this target.

IX. Agricultural and Processed Food Products Expor t Development Authority (APEDA)

Component-wise targets and achievements, Financial and Physical performance for the year 2013-14, 2014-15 (till Dec., 2014) & targets for the year 2015-16 are as follows:

(Rs. in crores)

711

18

839

6

12

Market Wise Exports 2013-14 [Quantity]

Japan

USA

European Union

China

South East asia

Middle East

others

147

Name of the scheme

Targets 2013-14

Achievements 2013-14

Targets 2014-15

Achievements 2014-15

(till Dec’ 2014)

Targets 2015-16

Fin Phy. Fin. Phy. Fin Phy. Fin Phy. Fin Phy.

Development of Infrastructure

50.00 60 37.91 29 45.00 85 15.94 13 87.00 93

Quality development

7.00 65 3.30 42 87.00 105 1.83 32 15.00 110

Market development

23.00 130 17.56 121 22.00 290 16.69 71 46.00 330

Transport assistance

100.00 335 56.33 334 55.00 340 52.73 200 174.00 360

Total 180.00 590 115.00 526 130.00 820 87.19 316 322.00 893

Component-wise objectives and achievements for the year 2013-14, 2014-15 & performance targets for the year 2015-16 are as follows:

1. INFRASTRUCTURE DEVELOPMENT

Development of a strong infrastructure is critical for the growth of agro industries sector and export of agricultural products. The emphasis is primarily on setting up of post harvest handling facilities so as to reduce losses caused due to spoilage and to ensure quality production of agro products. This scheme seeks to provide financial assistance to the exporters and export related government/ cooperative institutions for setting up of infrastructure such as cargo centers at International airports & seaports and pack house facilities with packing/grading lines, pre-cooling units, cold storages and refrigerated transportation etc. The high cost of investment to maintain cold chain and its economic unavailability has always restrained exporters to invest in post harvest handling Infrastructural facilities.

Therefore it has become imperative for APEDA to set up common facilities to maintain cold chain and to improve the quality of the produce such as integrated pack houses, (pre-cooling, cold storages and mechanized handling facilities), perishable cargo handling centers at exit points like airports, seaports etc.,

This has helped in improving the quality of the perishables by maintaining

complete cold chain and enhanced credibility of agro exports from India.

148

a. Apart from this, pack house/ facilities i.e. pre-cooling, cold storage facilities with mechanized handling systems are also being set up by individual exporters for export of fresh fruits & vegetables.

b. Common laboratory facilities for export testing of pesticide residues, heavy metals, aflatoxins, drugs and toxins etc. have been upgraded and set up with

APEDA’s financial assistance at NRC Grapes-Pune, CFTRI-Mysore,

AGMARK laboratory at Mumbai, Maharashtra Government laboratory at Pune, IIIM, and Jammu.

c. Laboratory facilities are being set up at Herbal Research & Development

Institute, Gopeshwar (Uttarakhand) and will be completed in 2012-13. Apart from this, private laboratories are being upgraded with APEDA’s financial assistance for export testing of agro products. Outcome:

The setting up and up-gradation of infrastructural facilities has helped in integration of supply chain (cool chain) and improvement of quality of fresh horticulture perishables like fruits, vegetables, flowers, and processed food products etc., which has led to enhancement in the export of APEDA monitored products. The quality of the produce has been widely accepted in the European and other markets in developed countries. The export of fresh grapes, honey, egg products and ground nuts to European market has been possible due to the up gradation of Infrastructure facilities like laboratories and pack house facilities in the major growing areas. The year-on-year growth in APEDA products exports is also a result of continuous efforts to up gradate infrastructure facilities by APEDA.

2. MARKET DEVELOPMENT

Good packaging is extremely important both in terms of quality of the product as well as its image. It is, thus, necessary to encourage exporters to make use of good quality packaging material. Similarly, compilation and consolidation of data is very important for exporters to enable them to formulate export marketing strategies. The marketing strategies are implemented through Market Development which involves participation in International trade fairs, exchange of trade delegations and conducting buyer seller meets etc. This has helped in achieving the market access in new markets and also to sustain the present level of exports in the existing markets.

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APEDA has initiated the following steps for market promotion of agro products:

1. As result of APEDA’s effort the Australian, New Zealand and Chile market for Indian mangoes has been opened, Grapes & walnut market of Chile is also open for Indian Exporters.

2. Efforts are being made constantly for opening up of Australian and Japanese market for Indian grapes, US market for grapes and Litchi, Chinese market for fruit & vegetables, South Korean market for walnuts & grapes.

3. Efforts are also being made to lift the ban on poultry products in Kuwait, UAE and Saudi Arabia.

4. Efforts are also being made to open up markets like Russia, Belarus & Kazakhstan (Custom Union) for Bovine meat and egg products. In addition discussion and meeting were also organized with veterinary department of Hong Kong, China for Market access and Bovine meet.

5. Delegation from Kuwait has been invited to visit Poultry plants and to lift ban on import of poultry and poultry products.

6. A DVC was held with Russian FSVPS on 23/10/2013 and another was held towards end December 2013. Another around is expected during 2014-15.

Outcome:

This has helped in achieving market access for export of Indian mangoes into Japan, USA, Australia, New Zealand and Chile, mango pulp to Mexico and Grapes, Mangoes, Basmati rice and Bitter gourd into China.

As regards, Livestock Products the detail is as und er:

1. A team of 10 delegates from Malaysia visited India to inspect APEDA registered Integrated Abattoirs cum Meat Processing Plants from 10th -22nd February 2013. The delegates were teamed from various Ministries/Departments-Director General of Veterinary Services, Director of Biosafety and SPS Management Division, Director of Jakim, Director General of Health, Head of Quarantine, Export/Import Services Section different, DOVS, JAKIM, Food Safety etc. and each delegation compromised of a delegate from Prime Minister’s Office. Seven plants were approved for export of deboned deglanded frozen buffalo meat to Malaysia and eight plants were recommended after compliance and review and are approved for exports of meat.

150

2. A team of three Algerian delegation visited India from 10th March 2013 to 26th March 2013 to inspect APEDA registered Integrated Abattoirs cum Meat Processing Plants. 18 plants are approved for export of deboned deglanded frozen buffalo meat to Algeria.

3. A team of four Egyptian delegates visited India from 11th June to 4th July 2013 to inspect APEDA registered Integrated Abattoirs cum Meat Processing Plants. 21 plants have been approved for export of deboned and deglanded frozen buffalo meat to Egypt and three plants have to submit compliance report for approval.

4. A team of six delegates from Jordan visited India from 7th June 2013 to 18th June 2013 to inspect APEDA registered Integrated Abattoirs cum Meat Processing Plants. 17 plants have been approved for export of deboned and deglanded frozen buffalo meat to Jordan.

5. A team consisting of representative of Ministry of Agriculture of Georgia, Dr. Mikheil Sokhadze, Chief Veterinary Officer and Dr. Paata Khurdadze from Feed Inspectorate Department carried out on the spot inspection of selected Integrated Abattoirs and Meat Processing Plants in India with the view to continue exports to Georgia.

6. Memorandum of Understanding has been signed between APEDA, Ministry of Commerce & Industry, Govt. of India and The General Administration of Quality Supervision, Inspection and Quarantine People’s Republic of China(AQSIQ) signed on 20th May 2013 in order to ensure quality and safety of buffalo meat to be exported from India to China and to initiate export of for export of deboned and deglanded frozen buffalo meat to China. A team of delegation comprising of Joint Secretary, MoC&I, Additional Economic Advisor, MoC&I, Secretary, APEDA, Joint Commissioner DAHD & 14 delegates from meat industry visited China to initiate the implementation of MOU.

7. Restriction imposed on import of frozen buffalo meat from India on account of alleged FMD outbreak reported in the Annual Report 2012 of OIE / FAO FMD reference laboratory network, Pirbright, U.K. APEDA’s intervention had opened up the Tajikistan market.

Forthcoming delegations/Visits abroad

1. A delegation from SFDA, Saudi Arabia visited India for inspection of APEDA registered Integrated Abattoirs cum Meat Processing Plants in February’2014.

2. A delegation from AQSIQ is expected to visit India for inspection of APEDA registered Integrated Abattoirs cum Meat Processing Plants and for the implementation of MOU.

151

3. After sustained efforts and joint group meetings, FSVPS the veterinary department of custom union indicated to visit Indian for inspection of APEDA registered Integrated Abattoirs cum Meat Processing Plants.

4. Confirmation of visit of delegation has been received for inspection of APEDA registered Integrated Abattoirs cum Meat Processing Plants during 2014-15

5. Confirmation of visit of delegation from Egypt delegation for visit to India for inspection of APEDA registered Integrated Abattoirs cum Meat Processing Plants has been received during August’2014.

6. A Algeria delegation has visited India for inspection of APEDA registered Integrated Abattoirs cum Meat Processing Plants in 2014.

The participation in the International Trade Fairs has substantially helped in incremental exports and also in developing new markets. The packaging of the agro products has been substantially upgraded and improved.

3. QUALITY DEVELOPMENT

The concept of food safety and quality is a growing global concern. Keeping in view the growing global concerns for quality and Phytosanitary requirements; it has become essential to continue with the ongoing quality development scheme. There is a need to promote exports in consumer packs and value added products. To promote the export of organic products, we need to develop organic farming. In view of the changes taking place in international trade, different systems are being developed to improve quality of food products. The exporters have to comply with the specific quarantine and technical requirements of the importing countries. Hence, it is essential that financial assistance is given for the implementation of food safety management systems like HACCP, BRC, GAP and ISO-9001etc. to enhance the export capability and credibility of Indian agro products.

The exporters have been helped in certification of their manufacturing units for HACCP, GAP and ISO 9001systems etc. which has further enhanced the acceptability of the Indian agro products in international markets.

In order to maintain our exports to European Union, we need to continue the implementation of residue monitoring plan for grapes, okra, peanuts and rice as per their requirement.

To enhance the acceptability of Indian agro products in the international markets, we have to promote implementation of HACCP, GAP, ISO: 9001, ISO: 22000 in processed food sector and fresh produce.

152

In-house laboratories of the exporters are also required to be upgraded for on-going testing of products for exports. Recognized laboratories with APEDA also needs up gradation in recently introduced high precision equipment.

ORGANIC PRODUCTION FOR EXPORTS:

a. Presently 25 certification bodies have been accredited under NPOP, 4 new domestic bodies are expected to be accredited during 2015-16.

b. APEDA has continued with the achieved Equivalence agreement with European Union Switzerland and conformity assessment recognition with EU. Equivalence with Canada for increasing the Organic Products export Taiwan expected in 2015-16.

c. New products categories for Organic certification under NPOP have been introduced in 2014-15 (Aquaculture, Livestock and Textile).

Outcome: The Quality Development assistance has helped in improvement of the quality of agro products and we have been able to meet out the food safety and hygiene requirements of the importing countries. The export of honey, ground nuts, fresh grapes, okra and other fresh vegetables, poultry products etc. has been possible to Europe only due to the implementation of residue monitoring plans by APEDA as per the European Union requirements.

The export of processed food products, Basmati rice, fresh fruits and vegetables and other products has steadily grown due to implementation of TQM, HACCP, ISO – 9001: 2000, BRC and Eurep-gap etc. coupled with up gradation of in-house laboratories. In organic sector, the area of certification has increased from 4.43 million htr. to 5.56 million htr. The export volume has also increased from 69837 m.t. In 2010-11 to 147799 m.t. In 2011-12 (111.83%)

The outcome of ‘TraceNet’ helped in bringing in conformity in certification of organic products and the peanut traceability could be established from farm to the fork. The monitoring of risk has been possible due to the tracenet monitoring system for organic products.

4. TRANSPORT ASSISTANCE Indian exporters of fresh perishables, processed food products, poultry

products, dairy products etc. have been facing the disadvantage of high freight rates

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from India in comparison to the competing countries and our agro products have become in-competitive. The export of horticultural perishables has been carried out by air transport and airfreight rates are comparatively very high. In order to mitigate the dis-advantage of high air freight and sea freight rates, it has become imperative upon Govt. of India to provide transport assistance on selected fruits, vegetables, flowers, poultry, dairy and other processed food products etc. for exports both by sea and air to enable the agro products to compete in the international markets. The scheme has helped in continues incremental exports in this sectors.

Outcome:

Transport Assistance has helped in incremental exports as export of fresh fruits and vegetables, floriculture, dairy & poultry products and processed food products have registered a constant growth during the Xth Five year plan. Transport Assistance Schemes was approved for continuation in XIth Plan. Major benefit of the Schemes as listed below has been achieved.

1. Exporters of identified products continue to face a transaction cost and freight cost disadvantage vis-à-vis their international competitors. Hence the TAS has helped to mitigate this disadvantage enhancing the overall competitiveness of Indian agricultural product exporters.

2. TAS has helped in promoting exports of identified products where India has strong export potential but so far has been unable to make a dent in international markets due to the transaction/ freight cost disadvantage.

3. TAS has helped in promoting exports of value added processed products rather than unprocessed low value products.

4. TAS has helped in the employment generation potential for these commodities due to an increase in exports.

5. The Scheme is a medium term support to enable these eligible items to gain a foothold in global markets.

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COMPARATIVE STATEMENT FOR EXPORT OF AGRI AND PROCESSED FOOD PRODUCTS (April-November 2014 VIS-A-VIS PREVIOUS YEAR)

PRODUCTS April-November 2013 Unit value April-November 2014 Unit value % Change QTY VALUE (In Rs. Lakhs QTY VALUE (In Rs. Lakhs Rs. USD In MTs Rs. Lakhs USD Million Per Tonnes) In MTs Rs. Lakhs USD Million Per Tonnes)

SCHEDULE PRODUCTS A. FLORICULTURE 0.00 29907.73 49.94 0.00 29986.84 49.57 0.26 -0.75 B. FRUIT & VEGETABLE SEEDS 9476.96 27316.14 45.59 6831.51 29427.15 48.68 4.31 7.73 6.76

FLORICULTURE & SEEDS 57223.87 95.54 59414.00 98.25 3.83 2.84 A. FRESH FRUITS 301562.00 178722.83 307.38 282342.00 175931.45 291.43 0.62 -1.56 -5.19 B. FRESH VEGETABLES 1388164.00 340701.54 566.13 1396721.00 302659.17 500.14 0.22 -11.17 -11.66

FRUITS & VEGETABLES 519424.38 873.51 478590.63 791.56 -7.86 -9.38 A. PULSES 255275.00 129784.16 217.29 167098.00 91074.91 150.58 0.55 -29.83 -30.70 B. PROCESSED VEGETABLES 0.00 80857.14 135.16 0.00 112577.18 186.17 39.23 37.73 C. PROCESSED FRUITS & JUICES 0.00 211070.80 349.44 0.00 232931.73 384.28 10.36 9.97

PROCESSED FRUITS &VEGETABLE 421712.11 701.89 436583.82 721.03 3.53 2.73 A BUFFALO MEAT 855432.00 1667695.71 2767.11 989547.00 1959000.46 3228.69 1.98 17.47 16.68 B SHEEP/GOAT MEAT 15388.00 47026.41 79.14 16516.00 57400.18 94.96 3.48 22.06 19.99 C ANIMAL CASINGS 257.26 2142.25 3.59 223.58 1620.96 2.68 7.25 -24.33 -25.40 D PROCESSED MEAT 463.00 642.83 1.09 105.00 309.18 0.51 2.94 -51.90 -52.96 E OTHER MEAT 195.00 240.73 0.39 234.00 228.48 0.38 0.98 -5.09 -3.10 F. POULTRY PRODUCT 0.00 34401.08 56.96 0.00 42551.98 70.19 23.69 23.22 G. DAIRY PRODUCTS 0.00 252275.64 422.63 0.00 146492.37 242.90 -41.93 -42.53

LIVESTOCK PRODUCTS 2004424.64 3330.92 2207603.60 3640.32 10.14 9.29 A. GROUNDNUTS 281769.00 189089.63 315.85 374058.00 236622.61 390.57 0.63 25.14 23.65 B. GUARGUM 356334.00 818583.74 1405.74 464582.00 687859.38 1135.40 1.48 -15.97 -19.23 D. CEREAL PREPARATIONS 206994.00 183015.45 305.24 200087.00 199734.47 329.86 1.00 9.14 8.06 E. COCOA PRODUCTS 9959.57 32259.78 53.38 13713.57 55303.88 91.46 4.03 71.43 71.33 F. MILLED PRODUCTS 307078.45 72262.46 119.96 293844.74 71676.06 118.42 0.24 -0.81 -1.28 G. SPIRIT AND BEVERAGES 0.00 162212.98 270.76 0.00 140304.01 231.45 -13.51 -14.52 H. MISC. PROCESSED ITEMS 0.00 161330.43 269.45 0.00 186666.42 308.48 15.70 14.48

OTHER PROCESSED FOODS 1618754.47 2740.39 1578166.83 2605.64 -2.51 -4.92 A BASMATI RICE 2361670.00 1752487.18 2961.38 0.74 2192187.00 1789198.94 2962.10 0.82 2.09 0.02 B. NON-BASMATI RICE 4672221.00 1165853.99 1932.21 0.25 5277880.00 1340628.63 2209.40 0.25 14.99 14.35 C. WHEAT 3826975.00 622201.14 1075.09 0.16 2638249.00 446189.93 743.85 0.17 -28.29 -30.81 D. OTHER CEREALS 2912579.00 459436.59 786.07 0.16 2795835.00 418939.19 697.02 0.15 -8.81 -11.33

CEREALS 3999978.90 6754.75 12904151.00 3994956.68 6612.37 -0.13 -2.11 TOTAL 8621518.37 14497.00 8755315.57 14469.16 1.55 -0.19

Source : DGCIS Principal commodities data April-Nov ember 14 (Provisonal data)

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X. Market Access Initiative (MAI) Scheme

The MAI scheme was launched in 2003 to act as a catalyst to promote India’s export on sustained basis. The scheme is formulated on focus product – focus country approach to evolve specific strategy for specific market and specific product. The scheme was launched with a total outlay of Rs.552 crores during the X Plan. However in view of the apparent short fall in achieving of financial target in the initial years of the Xth Plan, the department held extensive consultations with the stakeholders to evaluate the scheme in 2006. Based on the above, the revised scheme was approved in December, 2006. Thereafter the present revised MAI scheme was notified in January 2007.

The scheme was restructured to include enhancement of scope of the scheme, increase in number of eligible agencies and increase in scale of assistance. After the scheme was revised there is no short fall in respect of achievement of physical and financial targets. The Planning Commission has approved outlay of Rs.834 crores for 12th Plan period.

The Scheme was further revised in the year 2014 with effect from 4th August, 2014. Under the revised scheme, additional components for assistance to pharmaceutical industry and interest equalization support to project exports have been added.

Under the scheme, assistance is extended to the Departments of Central

Government and organisations of Central/State Government, Export Promotion Councils, Registered Trade Promotion organisations, Commodity Boards, Recognised Apex Trade Bodies, etc. The activities eligible for financial assistance under the Scheme are Marketing Projects Abroad, Capacity Building, Support for Statutory Compliances, Studies, Project Development etc. During the year 2014-15, 239 projects/studies including 15 “India Shows” were approved for receiving assistance under the scheme. Out of 15 India Shows, 4 were cancelled. Year-wise status of MAI allocation/release is as under:-

Year wise Status of MAI Allocation/Releases (Rs. in Crore)

Year Outlay Expenditure

2006-07 40.00 39.99

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2007-08 45.00 44.99

2008-09 50.00 49.99

2009-10 65.00 64.99

2010-11 110.00 110.00

2011-12 150.00 150.00

2012-13 125.00 125.00

2013-14 179.99 179.99

2014-15 200.00 188.93 (as on 23.02.2015)

INDIA SHOW

� Display and promotion of India’s capabilities as provider of world class goods and services.

� Project India as an attractive investment destination. � Create a strong Brand Image for India. � Focus on entire region with mega event to create a major impact. � Provide high quality and authentic Indian cuisines. � Shows cultural programme in consultation with ICCR.

Approved “India Show” (2014-15) S. No. Region Council Date

1 Poland EEPC 3-6 June, 2014

2 IIJS Show, Mumbai G&JEPC 17-21 July 2014

3 Turkey FICCI 29th August – 2nd September 2014

4 India IT Show, Mumbai ESC EPC 12-13 February, 2015

5 Hong Kong CII 27-29 April 2014

6 Textiles(TEXTRENDS), New Delhi AEPC 28-30 January 2015

7 Engineering, Mumbai EEPC 16-18 December, 2014

8 Japan FICCI 2-4 July, 2014

9 Russia FIEO 24-26 September, 2014

10 Pharmaceuticals, Mumbai Pharmexcil 24-26 April, 2014

11 Mexico CII 28-30 August, 2015 XI. Marketing Development Assistance (MDA) Scheme

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To facilitate various measures being undertaken to stimulate and diversify the country’s export trade, Marketing Development Assistance (MDA) Scheme is under operation in the Department of Commerce. This non-plan scheme supports the following activities:

• Individual exporters for approved EPC/Trade bodies led export promotion activities abroad.

• Export Promotion Councils (EPCs) to undertake export promotion activities for their products and commodities

• Approved organisations/trade bodies in undertaking limited exclusive non-recurring innovative activities connected with export promotion efforts for their members.

• Focus Area export promotion programmes in specific regions abroad like Focus LAC Focus Africa, Focus CIS and ASEAN+2 programmes.

• Residual essential activities connected with marketing promotion efforts abroad.

Details of outlays approved and actual expenditure under the MDA scheme

during the period 2008-09 to 2014-15 are as under.

Outlay and Expenditure (Rs. in Crore)

XII. National Export Insurance Account (NEIA)

A separate Fund viz. the National Exports Insurance Account (NEIA) was set up in 2006. A sum of 946 crores has been funded by the Government of India (GoI) till FY 2013-14. The total corpus of NEIA as on 31.03.2014 was 1313.79 crore, constituting Government’s contribution, premium, fees and interest accrued.

Year Outlay Actual Expenditure 2008-09 52.25 52.25 2009-10 53.00 53.00 2010-11 56.00 56.00 2011-12 49.99 49.99 2012-13 39.49 39.49 2013-14 49.99 49.99 2014-15 50.00 36.92

(as on 23.02.2015)

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The objective of NEIA is to promote projects export from India. NEIA supports export of projects of large values that are undertaken overseas and may involve long credit period for repayment which are beyond the underwriting capacity of ECGC, or in countries facing economic/political difficulties but where Indian presence is required to be maintained as part of the long-term economic strategy. The NEIA is maintained and operated by NEIA Trust, a Public Trust set up jointly by the Department of Commerce and ECGC.

To provide further impetus to Project Exports from India, the Department

introduced a scheme in April 2011, where under Exim Bank, in conjunction with the ECGC, introduced a new product/initiative, viz., Buyer's Credit under which the Bank finances and facilitates Project Exports from India where minimum 75% of the value of goods and services covered under the Programme must be sourced from India. To give boost to this initiative, Union Cabinet has on 10.9.2014 given the approval for Increase the Corpus of NEIA Trust to 4000 crore with risk underwriting capacity at 20 times of the actual corpus against the present leverage of 10 times the available corpus and Budgetary support by GOI for settlement of claims in case it is beyond the corpus.

The Trust, apart from issuing direct covers to exporters/banks, also provides

cover to ECGC on select project export covers (medium & long term). One Buyer’s Credit cover was issued by the Trust to Exim Bank of India during the year. One cover issued by ECGC during 2013-14 was supported with NEIA guarantee of value

518.08 crore. NEIA has issued 31 Covers supporting 16 projects in 11 countries of value

11146.56 crore as of 31.03.2014. Projects in water treatment plants, railway line, oil pipelines etc in countries like Sri Lanka, Algeria and Sudan have been supported under NEIA. The Trust earned an income of 104.72 crore as interest, premium/guarantee fees during the FY. The Trust also compensated ECGC to the extent of 50% on a claim payment of 99.53 crore.

*******

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CHAPTER V

Financial Review

The total expenditure (Plan and Non-Plan) of the Department during the financial year 2012-13 was Rs. 4642.54 crore. As against this, the total expenditure for the year 2013-14 was Rs.5243.58 crores compared to the Budget Estimate for 2013-14 was Rs. 5391.00 crore and Revised Estimate for 2013-14 was Rs. 5395.00 crore.

The Budget Estimate for the financial year 2014-15 is Rs. 5854.00 crore which was subsequently revised to Rs.5687.40 Crore in the RE 2014-15.

Revenue Section

Plan: During the year 2013-14, the Plan expenditure was Rs. 987.56 crore as against Rs.940.94 crore during 2012-2013. The provision made in Budget Estimates for the year 2014-15 is Rs. 1921.50 crore and is revised to Rs. 1607.32 crore in the Revised Estimates 2014-15. Non-Plan : During the year 2013-14, the Non-Plan expenditure was Rs. 3306.38 crore as against Rs. 2878.17 crore during 2012-2013. The provision made in Budget Estimates for the year 2014-15 is Rs.3628.00 crore and is revised to Rs. 3587.40 crore in the Revised Estimates 2014-15.

Capital Section

Plan : During the year 2013-2014, the Plan expenditure was Rs. 949.64 crore as against Rs. Rs.823.43crore during the year 2012-13. The provision made in Budget Estimates for the year 2014-2015 is Rs.304.50 crore and is revised to Rs. 392.68 crore in the Revised Estimates 2014-15.

Year-wise & scheme wise outlay of fund and expendit ure:

Detailed account of outlay and expenditure for both Plan as well as Non-Plan schemes of the Department during the financial years 2012-13, 2013-14 and 2014-15, 2015-16(only plan outlay) are given in Table 5.1& Table 5.2 respectively.

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Utilization Certificates (UCs)

There were 180 UCs outstanding as on 1.4.2012 involving Rs. 610 crore. 10 UCs have been received upto 25.02.2013 amounting to Rs. 138.00 crore and 170 UCs are outstanding as on 25.02.2013 involving Rs. 486.67 crore.

Opening Balances

The detailed statement for Outstanding Unspent Balance with the States and implementing agencies as on 31.01.2013 is shown in Table 5.1

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Table 5.1(Detailed account of Plan Outlay & Expendi ture in r/o Department of Commerce)

(Rs. in crore) Major 2012-13 2013-14 2014-15 2015-16 Head BE RE Actual BE RE Actual BE RE BE A Industry & Mineral Sector 1 Assistance for Developing Infrastructure & Other Allied Activities For other than NER under head Major Works 5453 666.00 521.50 521.50 640.00 585.10 577.60 0.00 110.00 50.00 3601 700.00 474.84 0.00 For NER under head Major Works 4552 70.00 70.00 70.00 100.00 100.00 100.00 0.00 0.00 0.00 2552 100.00 90.00 0.00 SCSP 5453 64.00 64.00 64.00 60.00 60.00 60.00 0.00 0.00 Total 800.00 655.50 655.50 800.00 745.10 737.60 800.00 674.84 50.00

2 Agricultural Products Export Development Authority Grants-in-aid General 3453 55.00 52.00 52.00 10.00 10.00 10.00 10.00 10.00 8.00 Subsidies 3453 125.00 98.00 98.00 125.00 67.50 67.50 75.00 75.00 62.00 Grants for creation of capital assets 3453 45.00 37.50 37.50 45.00 45.00 42.00

NER 2552 8.00

Total= 180.00 150.00 150.00 180.00 115.00 115.00 130.00 130.00 120.00 3 Marine Products Export Development Authority

Subsidies 3453 110.00 95.00 95.00 115.00 115.00 115.00 115.00 105.00 115.00 4 National Export Insurance Account (GIA) 3453 30.00 30.00 30.00 30.00 30.00 30.00 30.00 130.00 200.00 5 Export Credit Guarantee Corporation Investment 5465 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 50.00 6 Export Inspection Council Grants-in aid-General & Grants for Cr. of CA 3453 8.00 5.00 6.28 8.00 5.00 3.20 8.00 6.64 10.00 7 Market Access Initiative Grants-in-aid-General 3453 130.00 125.00 125.00 180.00 180.00 179.99 200.00 200.00 200.00 Other charges 3453 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 130.00 125.00 125.00 180.00 180.00 180.00 200.00 200.00 200.00 8 Center for WTO Studies (Other charges) 3453 7.00 5.05 5.05 8.00 8.00 8.00 8.00 8.00 16.52 Assistance to Institutions 9 Indian Institute of Foreign Trade 3453 40.00 34.00 34.00 60.00 52.27 41.47 60.00 36.56 30.00 10 Indian Institute of Packaging 3453 3.00 1.50 1.50 3.01 6.01 6.01 10.01 10.01 10.00 Total (Assistance to Institutions)= 43.00 35.50 35.50 63.01 58.28 47.48 70.01 46.57 40.00 Modernisation & Upgradation

11 Secretariat-Economic Services 3451 4.00 3.00 2.36 4.00 2.66 1.88 6.50 4.39 2.15

12 Director General of Foreign Trade (OAE) 3453 10.00 6.00 5.87 10.00 4.14 5.39 7.50 6.46 7.50

Niryat Bandhu Scheme 3453 0.01 0.00 0.00 1.00 1.00 0.00 2.00 1.00 2.00

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Major 2012-13 2013-14 2014-15 2015-16

Head BE RE Actual BE RE Actual BE RE BE Office/Residential Building 3453 0.01 0.00 0.00 2.97 2.97 0.00 2.97 0.01 2.97 Training/Capacity Building 3453 0.01 0.00 0.00 1.00 1.00 0.00 0.00 0.00 0.00 Total(DGFT)= 10.03 6.00 5.87 14.97 9.11 5.39 12.47 7.47 12.47 13 DGCI & S

Other Administrative Works 3453 0.00 0.00 0.00 3.00 0.85 0.85 3.00 3.00 1.50

Major Work 5453 4.65 3.65 2.69 3.00 3.00 2.54 3.00 1.18 1.50 Total(DGCI&S)= 4.65 3.65 2.69 6.00 3.85 3.39 6.00 4.18 3.00 14 FDDI, Jodhpur, Major Work 5453 37.00 37.00 37.00 0.00 0.00 0.00 0.00 0.00 0.00 15 Computerization in DGS&D ( OAE/OE) 2057 20.00 2.35 2.38 25.00 15.00 15.09 25.00 13.84 10.00 Gem & Jewellery Sector

Convention Centre in Mumbai 3453 0.01 0.00 0.00 0.01 0.01 0.00 0.01 0.01 0.01 Common Facility Centre 3453 0.01 0.00 0.00 0.48 0.48 0.00 0.48 0.01 0.48 Gem bourse in Jaipur 3453 0.01 0.00 0.00 0.48 0.48 0.00 0.48 0.01 0.48 Gems and Jewellery Park in Mumbai 3453 0.01 0.00 0.00 0.01 0.01 0.00 0.01 0.01 0.01 Jewellery Sector 3453 0.01 0.00 0.00 0.02 0.02 0.00 0.02 0.01 0.02 Total( Gem & Jewellery Sector )= 0.05 0.00 0.00 1.00 1.00 0.00 1.00 0.05 1.00 Leather and Leather Products Sector

New Branches of FDDI 5453 30.01 30.00 29.90 108.50 108.50 108.50 200.00 180.00 99.98 Networking Centre (FDDI CNC) 5453 0.01 0.00 0.00 1.00 1.00 1.00 1.00 1.00 0.01

Creation of Venture Capital Fund for Corporisation of leather Sector- Creation of Seed Fund

5453 0.01 0.00 0.00 0.50 0.50 0.00 0.50 0.50 0.01

Total( Leather and Leather Products Sector )= 30.03 30.00 29.90 110.00 110.00 109.50 201.50 181.50 100.00 Pharma Sector

Boisimilar /Bioequivalent Studies 3453 0.01 0.00 0.00 0.01 0.01 0.00 0.01 0.01 0.01 Total( Pharma Sector )= 0.02 0.00 0.00 0.01 0.01 0.00 0.01 0.01 0.01 Total( A - Industry & Mineral Sector)= 1513.75 1284.33 1141.60 1644.99 1498.01 1471.53 1713.49 1612.49 930.15 B Agricultural Sector

16 Tea Board

Subsidies 2407 96.00 79.17 79.17 96.00 72.00 72.00 45.00 42.50 38.50 Grants-in-aid+C.Assets: (R&D) 2407 4.00 4.00 4.00 18.00 14.50 13.49 7.50 7.50 7.50 Subsidies to small growers 2407 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Subsidies to NER 2552 82.00 61.50 61.50 42.00 31.50 31.50 62.00 59.50 62.00 Grants-in-aid+C.Assets to NER 2552 8.00 6.00 6.00 8.00 8.00 6.00 8.00 8.00 8.00 SCSP -Subsidies 2407 10.00 10.00 10.00 20.00 10.00 10.00 20.00 10.00 15.00 Small Growers Development Scheme 2407 0.00 0.00 0.00 5.00 3.00 0.00 5.00 5.00 5.00

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

2407 0.00 0.00 0.00 1.00 1.00 0.00 1.00 1.00 1.00

Contribution to SPTF 4407 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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*Grant No has been changed from 11 to 12 w.e.f. the financial year 2015-16

Major 2012-13 2013-14 2014-15 2015-16 Head BE RE Actual BE RE Actual BE RE BE Total (Tea Board) = 200.20 160.67 160.67 190.00 140.00 132.99 148.50 133.50 137.00 Tea Plantation Fund

Grants-in-aid: Tea development fund 2407 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17 Coffee Board

Subsidies 2407 48.50 43.50 43.50 40.00 40.00 36.00 40.00 40.00 40.00 Grants-in-aid-General+C.Assets 2407 56.00 56.00 56.00 47.00 47.00 43.75 37.00 37.00 40.00 Grants-in-aid-General(NER) 2552 4.00 4.00 4.00 15.00 9.00 8.84 15.00 15.00 11.00 Subsidies to NER 2552 1.50 1.50 1.13 8.00 4.00 4.01 8.00 8.00 4.00 SCSP -Subsidies 2407 5.00 0.00 0.00 5.00 5.00 3.25 5.00 5.00 10.00 Total= 115.00 105.00 104.63 115.00 105.00 95.85 105.00 105.00 105.00 18 Rubber Board

Grants-in-aid-General 2407 125.50 110.50 110.50 120.00 107.08 107.08 110.00 100.00 88.99 Subsidies (NER) 2552 34.50 29.00 29.00 40.00 40.00 40.00 40.00 40.00 40.00 SCSP-Grants-in-aid-General+C.Assets 2407 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 25.00

Statistical and Information Services and e-governance

2407 0.01 0.00 0.00 0.01 0.01 0.00 0.01 0.01 0.01

Total (Rubber Board) = 170.01 149.50 149.50 170.01 157.09 157.08 160.01 150.01 154.00

19 SPICES BOARD

Grants-in-aid-General+C.Assets 2407 36.00 36.00 36.00 41.00 38.00 38.00 38.00 38.00 36.00 Subsidies 2407 49.00 49.00 49.00 49.00 44.00 44.00 42.00 42.00 39.00 Grants-in-aid: NER 2552 5.00 5.00 5.00 5.00 5.00 3.75 5.00 5.00 5.00 Subsidies (NER) 2552 5.00 5.00 5.00 5.00 5.00 3.75 5.00 5.00 5.00 SCSP-Grants-in-aid-General+C.Assets 2407 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 5.00 SCSP -Subsidies 2407 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 5.00

Total(Spices Board)= 100.00 100.00 100.00 105.00 97.00 94.50 95.00 95.00 95.00 20 Cashew EPC Grants-in-aid-General 2407 1.00 0.50 0.50 1.00 2.90 2.07 4.00 4.00 4.00 Total(B -Agricultural Sector)= 586.25 515.67 515.30 581.01 501.99 482.49 512.51 487.51 495.00 Grand Total(Department of Commerce)= * Grant-12 2100.00 1800.00 1764.37 2226.00 2000.00 1937.20 2226.00 2100.00 1425.15

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Table 5.2 (Detailed account of Non Plan Outlay & Ex penditure in r/o Department of Commerce) (Rs. in Crore)

Major 2012-13 2013-14 2014-15 2015-16 Head BE RE Actual BE RE Actual BE RE BE

1. Secretariat-Economic Services 3451 65.57 65.55 64.69 60.50 66.58 61.95 72.53 75.69 72.94

Foreign Trade and Export Promotion 2. Trade Commissioners 3453 112.25 124.65 129.20 121.35 129.21 142.24 134.55 159.43 169.99 3. Director General of Foreign Trade 3453 87.00 92.61 91.29 95.40 106.47 94.17 108.51 117.35 112.03 4. Assistance for Export Promotion and Market Developm ent

4.01 Export Subsidy 3453 1300.00 1262.30 1261.23 1300.00 1204.76 1142.24 1275.00 1237.37 1209.93

4.02 Grants in aid to Export Promotion and Market Development Organisation

3453 50.00 39.50 39.49 50.00 50.00 49.99 50.00 50.00 50.00

4.03 Interest Subsidy to Banks 3453 1000.00 1000.00 1000.00 1200.00 1475.00 1475.00 1625.00 1435.00 1625.00 Total= 2350.00 2301.80 2300.72 2550.00 2729.76 2667.23 2950.00 2772.37 2884.93

5 Development of Free Trade/ Export Processing Zones/ Special Economic Zones 5.01 Kandla SEZ 3453 9.00 8.80 8.06 9.55 8.83 8.27 9.55 10.17 10.40 5.02 Electronics (SEEPZ) SEZ 3453 7.70 7.50 7.20 8.10 8.22 8.13 8.45 8.70 8.45 5.03 Falta SEZ 3453 3.80 4.00 3.82 4.30 4.55 4.01 4.70 4.80 5.24 5.04 Chennai SEZ 3453 6.25 6.48 6.39 6.65 6.95 6.80 6.95 7.90 8.25 5.05 Cochin SEZ 3453 6.40 6.30 5.70 6.80 6.49 6.46 6.80 9.02 6.38 5.06 Noida SEZ 3453 6.65 7.61 6.33 8.25 8.19 7.13 8.40 8.78 9.27 5.07 Visakhapatnam SEZ 3453 5.70 6.30 6.50 6.80 7.10 7.71 7.72 7.78 7.74 5.08 Indore SEZ 3453 1.32 1.48 1.39 1.60 1.76 1.42 1.78 1.78 1.84 5.09 Jaipur SEZ 3453 0.60 0.58 0.56 0.63 0.63 0.61 0.63 0.77 0.67 5.10 Manikanchan SEZ, 3453 0.70 0.67 0.66 0.73 0.71 0.65 0.73 0.70 0.83 5.11 Moradabad SEZ 3453 0.40 0.38 0.35 0.40 0.43 0.45 0.43 0.48 0.48 5.12 Maha Mumbai SEZ 3453 0.45 0.52 0.51 0.57 0.57 0.50 0.58 0.52 0.58 5.13 Jodhpur SEZ 3453 0.47 0.45 0.43 0.50 0.58 0.31 0.58 0.54 0.54 5.14 Surat SEZ 3453 0.40 0.45 0.49 0.48 0.55 0.56 0.55 0.75 0.81

Total(SEZ)= 49.84 51.52 48.39 55.36 55.56 53.01 57.85 62.69 61.48 6 Agricultural Products Export Development Authority 3453 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 7 Marine Products Exports Development Authority 3453 5.00 4.00 3.25 5.00 5.00 5.00 5.00 7.98 5.00

8 Other Schemes of Foreign Trade & Export Promotion

8.01 Dte. General of Commercial Intelligence & Statistics.

3453 24.40 24.13 24.65 25.74 27.73 26.65 29.70 42.47

34.55

8.03 Contribution to International Organisations 3453 24.00 28.00 23.57 32.00 30.70 26.33 32.18 54.00 40.00 8.04 International conferences 3453 0.50 0.50 0.29 0.50 1.80 0.66 3.50 3.50 3.50

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2012-13 2013-14 2014-15 2015-16 Head BE RE Actual BE RE Actual BE RE BE

8.09 Director General Trade Remedies 3453 9.50 8.00 4.79 16.75 13.84 11.85 8.10 Others 3453 1.40 2.25 1.45 1.40 2.22 2.09 1.60 1.87 1.60

9 Commodity Boards 9.01 Tea Board 2407 39.00 37.00 37.00 39.00 39.00 39.00 39.00 47.09 49.98 9.02 Rubber Board 2407 37.50 35.50 35.50 37.50 43.50 37.50 37.50 58.50 47.75 9.03 Coffee Board 2407 39.80 47.15 47.15 39.80 56.00 56.00 39.80 65.00 46.54 9.04 Spices Board 2407 9.35 9.00 9.00 9.35 9.35 9.35 9.35 15.00 10.35

Total (Commodity Boards) = 125.65 147.85 141.85 125.65 185.59 154.62 11 Other Schemes of Plantation

11.01 Price Stabilisation Fund 2407 0.13 0.03 0.00 0.10 0.10 0.00 0.10 0.10 0.10 11.02 Payment to PSFT under PS Scheme 2407 4.50 4.50 0.00 6.27 6.27 0.63 3.00 3.00 0.00

2407 -4.50 -4.50 0.00 -6.27 -6.27 0.00 -3.00 -3.00 0.00 13 Supplies & Disposals

13.01 01-DGS&D 2057 76.26 83.31 78.68 81.50 83.02 81.82 89.08 139.52 112.77 02-Less: Receipts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Grand Total(Commerce)= 2923.00 2908.00 2878.17 3165.00 3395.00 3306.38 3628.00 3587.40 3666.36

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State Wise Unspent balance (Actual) as on 31.1.13 f or the Scheme for Central Assistance to the States for Developing Export Infrastructure and Other Alli ed Activities (ASIDE)

Table 5.4 (Rs. in crore) Andhra Pradesh

Arunachal Pradesh

Assam Bihar Chandigarh Chhattisg arh Goa Gujarat Haryana Himachal Pradesh

J&K Sikkim Tamil Nadu

0 1.38 29.41 3.91 0 5.84 6.12 64.00 0 0 5.51 0 59.77

Kerala Madhya Pradesh

Maharashtra Manipur` Meghalaya Jharkhand Mizoram Nagaland Orissa Punjab Rajasthan Pondicherry

0 19.40 0 0 0 0 0 0 0 0 0 0

Tripura UP Uttaranchal WB Karnataka A&N D&N Haveli Daman & Diu

Delhi Lakshadweep Total

0 0 2.66 31.53 0 0.52 0 0 0 0 231.82

Unspent Balance for the ASIDE Scheme- Central Secto r (Rs. in crore)

APEDA Border Road Org.

Chennai Port Trust

CSEZ Engg. EPC Kol.

CONCOR Council for Leather Exports

DC(SSI) CPT Handloom EPC

EPC Handicrafts

FSEZ FDDI, Noida

7.47 0 0.00 0 0 7.50 5.00 0 7.50 0 0 0 0

ILFS ITPO KSEZ MSEZ G&J EPC Rubber Board

MMTC NIFT NSEZ RITES MP. SEDC Bhopal

Mani SEZ Kol

MPEDA

0 0 0 0 0 0 0 0 0 0.00 0.00 0

DOC Govt. of Kerala

Govt. of West Bengal

GNIDA HRDI HPSIDC IDI J&KSIDCL MPAKVNL NCTI Proj. EPC STCL Ltd. TNWICL, Chennai

0 0 5.00 0 2.40 0 0 5.00 0 0.00 0 0 0

NMPT M’lore

PSIEC CWC Cashew EPC

SEEPZ SIDICO Sikkim

Spices Board

VSEZ WEFPI& HDC.Kol

WE TPO Govt. of Gujarat

Govt. of Mizoram

Govt. of Tripura

0 0 0 0 0 3.06 7.50 0 0 0.00 0 0 0

In case of Central agencies implementing projects under ASIDE- Central Component, Expenditure is reported on after project completion and Web Enabled Monitoring System (WEMS) is also updated only when concerned project is completed and UC is given thereafter. A system of expenditure reporting during the implementation period is proposed to be followed henceforth.

Govt. Of Meghalaya

GNIDA Tea Board Coffee Board

Total

0 0 0 3.25 59.29

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CHAPTER VI

REVIEW OF PERFORMANCE OF AUTONOMOUS AND STATUTORY B ODIES

(A) Autonomous Bodies

(B) Public Sector Undertakings I. State Trading Corporation of India Ltd.

STC, set up on 18th May 1956, has played an important role in country’s economy. It has arranged imports of essential items of mass consumption (such as wheat, pulses, sugar, edible oils, etc.) into India and contributed significantly in developing exports of a large number of items from India. STC is today able to structure and execute trade deals of any magnitude, as per the specific requirement of its customers.

The overall performance of STC during 2012-13, 2013-14, April-December 2014 vis-a-vis figures for April-December 2013, estimates for 2014-15 and projections for 2015-16 are summarised below:

Table: 6.1

Performance of STC ( Crore)

April – December 2012-13 2013-14 Provisional 2014-15 2015-16 Actuals Actuals 2014 2013 Estimates Projections

Exports 1563 1781 1125 955 1000 2200

Imports 17015 13546 9344 10939 14600 15300

Domestic 120 47 403 49 400 500

Total Turnover 18698 15374 10872 11943 16000 18000

Profit Before Tax 14 (-)492 40 (-)307 49 60

PERFORMANCE: 2013-14

Turnover

During the year, total turnover of STC amounted to 15,374 crore as against 18,698 crore in 2012-13. The decline in turnover vis-à-vis previous year was

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mainly due to lower allocations made by GOI for import of urea leading to reduced imports. Exports

During the year, STC achieved an export turnover of 1,781 crore – the best performance during the past five years.

STC continued to undertake export of wheat as one of the nominated CPSEs out of the surplus stocks of wheat held by FCI. A total quantity of 10 lakh MT of wheat was contracted for exports during the year and the same resulted in a turnover of 1,774 crore as against wheat export turnover of 1,525 crore in the previous year. STC also exported tea worth over 4 crore. Imports

The import turnover at 13,546 crore was 20% lower than the previous year mainly due to reduced imports of urea handled by the Company on behalf of GOI. Imports of bullion by STC continued to be hit due to restrictions on gold imports by way of increase in customs duty and changes in the policy of gold import aimed at controlling the current account deficit. However, the Company successfully imported and sold bullion worth 11,654 crore – marginally higher than sales worth 11,258 crore made in 2012-13. Thus, bullion once again emerged as the single largest item of STC’s imports.

During 2012-13, the Company had imported urea worth 5127 crore (2.04

million MT) on behalf of GOI. Imports of urea came down to less than one third at 1495 crore (0.73 million MT) during 2013-14 due to lower authorizations by the GOI.

During the year, the Company was able to develop import of coal/coke for private parties and effected sales worth 220 crore as against total import sales of

121 crore in the previous year. Imports of edible oils and pulses were adversely affected during the year due

to no imports of these two items for Public Distribution System. Import sales of edible oils and pulses on commercial account amounted to 69 crore and 34 crore respectively.

The Company imported maize amounting to 60 crore on behalf of actual

users under Tariff Rate Quota (TRQ) Policy of the Govt. of India as against 35 core worth of maize imported during 2012-13.

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Domestic sales

During the year, domestic sales by the Company amounted to 47 crore contributed mainly by jute goods ( 19 crore), iron ore pellets ( 16 crore) and chana ( 6 crore). Profitability

During the year, the Company earned a trading profit of 183 crore, which was 54% higher than the trading profit of 119 crore earned in 2012-13. On an overall basis, the Company reported a loss of 492 crore during the year as against a profit before tax of 14 crore during 2012-13. However, the loss was due to provisions & write-offs (net) of 566 crore made for doubtful debts/advances as a matter of prudence as against provision & write-offs (net of write-back and net of transfer from contingency reserves) of `60 crore made in the previous year. PERFORMANCE : APRIL – December 2014

Total Turnover The Corporation achieved a turnover of 10,872 crore during Apr - Dec’14.

The turnover was lower when compared to 11,943 crore in the corresponding period last year due to stoppage of export of wheat from FCI stocks and lower imports of bullion, together accounting for a decline of 4001 crore during the period. Exports During Apr - Dec’14, the Corporation’s exports grew by 18% to 1,125 crore from 955 crore during the corresponding period last year despite stoppage of wheat exports out of FCI stocks.

Exports of steel plates/coils to Iran continued and picked up pace during the current quarter. Accordingly, shipments worth 580 crore were made during the third quarter alone thereby taking total shipments to 1011 crore during Apr -Dec’14. Imports

The import turnover amounted to 9,344 crore during Apr - Dec’14 as against 10,939 crore in the corresponding period last year. The overall imports were down

mainly due to lower imports of bullion during the period under review.

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Though bullion continued to be the single largest item of import, sales of bullion decreased from 9,206 crore in Apr.-Dec.’13 to 6,067 crore in Apr - Dec’14 due to restrictions put under the 20:80 scheme of RBI for most part of the period under review. A number of Trading Houses have also been allowed to import gold since May 2014 leading to increased competition and decline in margins. The 20:80 schemes for gold import has since been dispensed with.

The Corporation imported higher quantities of urea amounting to 2782 crore during Apr - Dec’14 as compared to 1495 crore in Apr - Dec’13. During the period under review, the Corporation imported and supplied cashew worth 100 crore to Kerala Govt. Undertakings. Import of edible oils was continued and sales worth `67 crore were made during the third quarter thereby taking total sales of edible oils to 164 crore. The Corporation also imported and sold coal/coke worth 120 crore, industrial raw materials amounting to 74 crore, and equipments/instruments worth

33 crore during the period under review. Domestic Sales

Domestic sales by the Corporation during Apr - Dec’14 amounted to 403 crore. During the quarter, the Corporation continued to supply fertilizers to tobacco growers and the same resulted in cumulative sales worth 97 crore. Domestic sale of coal/coke amounted to 172 crore. During the period, STC successfully supplied entire tendered quantity of rice valued at 55 crore to the Govt. of Puducherry for distribution through PDS.

The Corporation started undertaking cardamom auctions at Bodinayakanur, Tamilnadu since July’14 and sales amounting to 50 crore were made till Dec’14.

Profitability

During the period under review, the Corporation earned a PBT of 40 crore as compared to a loss of 307 crore during the corresponding period last year, mainly due to higher margins earned from bullion operations in the first quarter. Notable Achievements during April-December’14

• Finalised an agreement with an Iranian Government organization for export of steel plates/coils and also an MOU with Iranian Railways for supply of rails.

• Obtained licence from the Spices Board to undertake cardamom auction at Bodinayakanur, Tamil Nadu and started Operations w.e.f. July’14

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• Entered into an arrangement with Tobacco Board and started supplying fertilizers to tobacco growers.

• Started supply of rice to the Govt. of Puducherry for distribution through PDS.

• Signed an MOU with Small Farmers Agri. Business Consortium for domestic sale/export of agro products.

• Started retail sale of packaged drinking water and coffee under STC Brand in small quantities.

PROJECTIONS: 2015-16

The Corporation has projected a turnover of 18000 for the year 2015-16 as compared to estimated performance of 16000 crore during 2014-15 - a growth of 12.5% . The growth is planned in all the three segments of business viz. exports, imports and domestic trading. Exports have been projected to more than double to

2200 crore in 2015-16 when compared to estimated exports of 1000 crore in 2014-15. Import turnover has been projected to go up by 5% so as to reach 15300 crore from estimated imports of 14600 crore in 2014-15. Similarly, domestic sales have also been projected to increase by 25% to 500 crore in 2015-16 from

400 crore in 2014-15.

Proft Before Tax (PBT) for the year 2015-16 has been projected to increase by 22% to 60 crore from an estimated PBT of 49 crore in 2014-15. II. Minerals and Metals Trading Corporation (MMTC)

The summary of financial performance of MMTC Limited for the period

ending 30th September, 2014 is given below in table 6.2.

Table 6.2

Financial Performance of MMTC ( in Crore)

Trade Performance

Actuals 20113 -14 (Audited)

MOU 2014-15

Prop. Target Apr-

Sept.’14

Actual Apr-Sept.’14

Increase/ Decrease (%)

Excellent Rating

Excellent Rating

Exports 4,127 4881 2440 1506 (38) Imports 18,714 19980 9990 5732 (43) Domestic 2,234 2139 1070 454 (58) Total Turnover 25,075 27000 13500 7692 (43) Profit Before Tax 225 64 32 43 35

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Profit After Tax 19 46 23 31 35 Net Profit To Turnover (%)

0.08 0.17 0.17 0.40

Source: MMTC

The highlights of the financial performance of MMTC during 2014-15 are as follows:

The Company has achieved a turnover of Rs. 7,692 crore for period ended on 30th September, 2014 against MOU target of Rs.13, 500. There was net profit of of 31 crore during April-Sept., 2014 as against the proportionate MOU target of 23 cr., showing an increase of 35% over MOU target for the period.

Subsidiary/Associates

MMTC Transnational Pte. Ltd. (MTPL), Singapore :

The wholly owned foreign subsidiary was set up in the year 1994 for promoting international trade. During 2013-14 it has achieved a business turnover of US$ 369 million. MTPL continues to enjoy “Global Trader Programme (GTP)” status awarded to it by IE Singapore. To expand and give impetus to growing trade between India and Africa, MMTC has opened an office at Johannesburg, South Africa in January, 2011.

Neelachal Ispat Nigam Limited (NINL) :

Neelachal Ispat Nigam Limited, a company promoted by MMTC, IPICOL, NMDC, MECON etc., has set up an iron & steel plant of 1.1 million tonnes capacity, coke oven of 0.8 million tone capacity along with a by-product plant, captive power plant of 62.50 MW etc., with total expenditure of Rs 2,000 crores at Kalinganagar, District Jajpur, Orissa. The phase-II of the project for production of steel, with Basic Oxygen Furnace, Oxygen Plant and SMS got commissioned in March, 2013 and steel billets production also started. During this period also, NINL maintained its position of being the largest Pig Iron producer & exporter in the country.

The total turnover and cash loss of the company for the year 2013-14 is 1548 crore and 147crore respectively.

Other Projects

Aiming at diversification and with a view to add value to its existing trading operation, the Company has undertaken various strategic initiatives following public-private partnership route. These strategic initiatives are aimed to enhance future sustainability include:

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• Commodity Exchange under the name and style of “Indian Commodity Exchange (ICEX)” which has commenced operations during November, 2009.

• Participation in equity of Currency Exchange under the name and style of “United Stock Exchange of India Ltd.” which has commenced operations during September, 2010.

• Joining hands with an international producer as a joint venture partner for setting up a gold/silver medallion manufacturing unit, which would also include a gold refinery as an integral part, under the name and style of “MMTC-Pamp India private Limited” has commenced commercial production in April, 2011.

• For promoting retail sales of value added products like medallions, silverware and jewellery on all India basis, MMTC has set up a joint venture “MMTC Gitanjali Private Limited” . The JV commenced operation in April 2009 and 8 showrooms are operational in different cities in India under the Brand name “SHUDHI”.

• Setting up permanent berth with loading facilities for Iron ore at Ennore Port jointly with M/s SICAL and L&T Infrastructure under the name and style of M/s. SICAL Iron Ore Terminals Limited, Chennai. Due to non-availability of iron ore for exports, commercial operations of SIOTL could not commence.

• Development of deep draught iron ore berth at Paradip Port jointly with Noble Group Ltd and Gammon Infrastructure Projects Ltd. under the name and style of M/s. Blue Water Iron Ore Terminal Private Limited. It could not commence construction in view of the project being rendered unviable as a result of inordinate delay in getting mandatory clearances, change in iron ore export trade scenario, restrictions imposed by State Government on mining of iron ore, refusal of Paradip Port Trust to give concessions etc. The JV Company is being wound up.

• Towards investing in mining infrastructure MMTC has promoted a joint venture Company with M/s. TATA Steel Ltd. for exploration and development of mines under the name and style of TM Mining Ltd.

III. Project and Equipment Corporation of India Lt d.(PEC)

PEC Limited was formed on 21st April, 1971 as a wholly owned subsidiary of STC. PEC Limited became an independent Company under the Department of Commerce w.e.f. 27th March, 1991. Activities

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• PEC is primarily engaged in export of projects, engineering equipment and manufactured goods, defence equipment & stores and import of industrial raw materials, bullion and agro commodities.

• Consolidation of existing lines of business and simultaneously

developing new products and new markets. • Diversification in export of non-engineering items e.g. coal & coke, iron

ore, edible oils, steel scraps, etc. • Counter trade/special trading arrangements for further exports.

Objectives

• To be a profit oriented international trading organization. • To provide adequate return to the stakeholder, commensurate with the

market expectations. • To seek new opportunities in the global and domestic market. • To focus on export of engineering projects and equipment especially from

small and medium enterprises. • To trade in commodities such as agricultural products, industrial raw

materials, chemicals and bullion. • To continuously strive for enhancement of the corporate image of a reliable,

long term and professionally competent organization. • To continuously strive for improvement in productivity and competitiveness. • To serve as an effective instrument of public policy and social responsibility.

Performance

Table: 6.3 The Overall Performance of the Corporation since 20 12-13 is given below :

( in crore) Items 2012-13 2013-14

2014-15

MOU Targets 2014-15

Achievement (Provisional)

upto 31.12.2014

2015-16 MOU

Targets (Provisional)

Sales Turnover 11649.02 9780.37 12500.00 *4800.00 7500.00

Income 159.63 43.02 134.26 35.32 47.25 Expenditure 46.56 41.04 49.26 34.65 45.25 Profit before Tax 113.07 1.98 85.00 #0.67 2.00 Profit after tax 96.56 0.71 56.60 #0.59 1.82 Dividend & Corporate tax 17.55 0.00 17.55 0.00 0.00

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Equity 60.00 60 60.00 60.00 60.00 Reserves 302.04 302.75 407.03 303.34 305.48 Net Worth 362.04 362.75 467.03 363.34 365.48

* Includes Bullion – 1,239 crore. # Without considering provisions and write offs, i f any. Sales Turnover

Table: 6.4 The Sales turnover of the Company since 2012-13 is given below: ( in crore)

Year Sales Turnover 2012-13 11649.02 2013-14 9780.37

2014-15(Provisional/unaudited upto 31.12.2014)

4800.00

During the year 2013-14, PEC has achieved sales turnover of . 9780.37

crore as compared to 2556.03 crore, imports at Rs. 5680.85 crore and domestic sales at 1543.49 crore.

The earnings Per Share (Basic & diluted) was 1.18 during the year 2013-

14. MOU rating for 2013-14 is ‘Good’. During the year 2014-15, as against MOU target of 12500 crore, the

Company has registered a turnover of Rs. 4800 crore upto 31.12.2014. Exports

Table: 6.5 The item-wise composition of exports since 2012-13 is given below:

( in Crore)

Item 2012-13 2013-14 2014-15 Provisional/unaudited

Upto 31.12.2014) Agro commodities 2917 2479 414.86 Engineering & Manufactured Goods

45 51 19.76

Others 67 26 0.00 T O T A L 3029 2556 434.62

Export sales turnover during the year 2013-14 was Rs.2556 crore.

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During the year 2013-14, PEC exported wheat, rice, maize. The major contributor was wheat valued at 1948 crore. PEC executed contracts for supply of line hardware, cables & conductors, insulators, steel wires, etc. to Ethiopia, Kenya, Liberia and Nepal. Imports

Table: 6.6 The item-wise composition of imports since 2012-13 is given below :

( in Crore)

PEC achieved import turnover of 5680 crore during the year 2013-14. Coal & Coke, manganese, steel scraps & coils and bullion were major items of import during the year. Major agro import during the year as RBD Palm Olein, Sugar, yellow peas, pulses etc.

Domestic Sales

Domestic sales of agro commodities, industrial raw material, engineering and manufactured goods aggregated to 794 crore till 31.12.2014. Corporate Governance PEC is fully committed to promoting and strengthening the principles of sound corporate governance norms through the adherence of highest standards of transparency, trust and integrity, performance orientation, responsibility and accountability, social responsiveness, ethical business practices and commitment to

Item 2012-13 2013-14 2014-15 Provisional/unaudited

upto 30.09.2012 Agro Commodities 1757 1281 376.27 Industrial Raw material 3754 2333.47 1795.88 Bullion (including Diamond) 1329 2027 1238.55 Engineering & Manufactured Goods

119 35.31 0.00

Others 1 3.59 159.30 T O T A L 6960 5680 3570.00

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the organization as a self discipline code for sustainable enrichment of value for suppliers, customers, directors employees or the community in general.

Key Initiatives

PEC continues to strive in its efforts to capture new opportunities in international as well as domestic trade to sustain. PEC looks forward optimistically to achieve targets in future.

USE OF HINDI IN OFFICIAL WORK

PEC continued its earnest efforts to promote use of Hindi in official work. Employees were encouraged to work in Hindi through training programs, workshops and improved incentive schemes. Fortnight-long program was organized to mark Hindi Diwas on 14th September, 2013.

PEC has been awarded third prize of Indira Gandhi Official Language for its excellent performance for the year 2012-13 by Honorable President of India, Shri Pranab Mukherjee on 14th September, 2014. For the year 2013-14, PEC bagged Ministry of Commerce & Industry’s First Prize for excellent performance in promotion of official language. HUMAN RESOURCE

The Company’s key strength is its human capital. We continuously strive towards having sound, proactive and progressive HR strategies and practices in place so that Company’s objectives and employee aspirations and needs are aligned.

The company has high caliber, multifunctional team of 178 employees as on 31.12.2014. PEC has built vibrant team of highly qualified professionals and fresh graduates with professional background.

The Company realizes that it is important to further develop capabilities of the

employees. For this purpose, both in-house and institutional training is provided. ‘SPECTRUM’ a monthly e-bulletin has been launched to accelerate momentum of team building.

The Corporation has been implementing the policies and guidelines issued by the Government of India from time to time with regard to recruitment of SC/ST/OBC and physically challenged persons.

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Industrial relations remained peaceful and cordial. LOOKING AHEAD

We expect our economy to return to a robust growth ahead of others that are experiencing recessionary conditions. Again this back-drop, we see favorable prospects for our kind of business and are well positioned to capitalize on these opportunities. As we prepare ourselves for the next phase of growth, we will work on further diversifying our business streams. CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY

PEC has set aside a budget of 2.22 crores for its CSR & Sustainability activities for the year 2014-15. PEC endeavours to undertake projects under its CSR & Sustainability activities as per Companies Act and DPE guidelines. The Board has sanctioned allocation of funds for Supporting the Mid Day Meal Programme under 15 Point programme of Planning Commission; Skill Enhancement / Vocational Training for SC/ST/OBC Women & other weaker section of society; Health/Medical Welfare for weaker sections; Education of Disabled; Education of Weaker / Underprivileged Section of Society; Rehabilitation of differently-abled and Environment Sustainability. CITIZEN’s CHARTER

PEC has a Citizen Charter and the same has been uploaded on its website, namely www.peclimited.com. PUBLIC REDRESSAL MECHANISM

The Company has a proper mechanism for registration and time bound disposal of grievances received from the public. Grievance officers both for Public and Staff grievances have been designated, and their details and contact information is uploaded on the PEC website. A complaint box has been placed at reception and Vigilance Cell. Further, a link to http://pgportal.gov.in under the heading “Public Grievances” on the home page of PEC’s website has been provided to help citizens lodge/monitor the grievances electronically. Any member of the public who has any grievance against the company or wants any information/clarification etc. may approach Public Grievance Redressal Officer whose details are available on the corporation’s website, namely, www.peclimited.com. RTI

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PEC has been complying with the provisions of the Right to Information Act in

letter and spirit. Complying section 4(1) (b) of RTI ACT-2005 all material information of general interest to the public has been hosted in electronic form on its website viz. www.peclimited.com. Central Public Information Officers (CPIOs) and Public Information Officers (PIOs) have been appointed at PEC’s Corporate Office at New Delhi and all its branch offices. Any public person can approach CPIO/PIO for seeking information under the Right to Information Act-2005. The names and contact details of PIOs, Performa of RTI application, amount of fee required, mode of payment are available on the official website of PEC www.peclimited.com. A Transparency Officer has also been appointed and his details and contact information has been uploaded on the website under the link ‘Right to Information Act 2005’.

PEC regularly files its quarterly returns on the RTI Portal provided by Central Information Commission. PROGRAMMES UNDERTAKEN FOR THE WELFARE SCs/STs/OBCs, WOMEN AND PERSONS WITH DISABILITIES

Government Directives / Instructions with regards to SCs/STs/OBCs, persons with disabilities are duly complied with in PEC.

In PEC, there exists a Time Scale Promotion Scheme for staff cadre. Qualifying period for promotion for employees belonging to SC/ST and persons with disabilities categories is relaxed by one year in each stage of promotion.

Further, a Complaints Register is being maintained at Head Office. No complaint has been received till date. WOMEN WELFARE ACTIVITIES

PEC is a small organization having total manpower of 178 employees, out of which 38 are females, as on 31.12.2014.

In compliance with the terms of Section 4(1) of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, ‘Internal Complaints Committee’ has been re-constituted in PEC for prevention and redressal of sexual harassment at workplace.

During the year, no complaint has been received from any employee. SPORTS ACTIVITIES

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Sports activities such as cricket also take place in PEC wherein employees

participate which improves inter-personal relations / team building and developing competitive spirit. A Budget of 10 lakhs has been sanctioned for sports activities for the financial year 2014-15.

PEC has developed our business to serve diverse needs of the trade and

economy. Given the volatile operating environment, the focus was on capital conservation, liquidity management and risk containment. IV. STCL LIMITED

STCL was originally incorporated in the name and style as “Cardamom Trading Corporation Limited” as a Private Limited Company under the Companies Act 1956 in October 1982.

Consequent to the change of name, the Company obtained a fresh certificate

of incorporation under the name of SPICES TRADING CORPORATION LIMITED with effect from August 1987 in order to widen its marketing base from Cardamom to other range of spices.

Thereafter, STCL became a subsidiary of The State Trading Corporation of India Ltd., with effect from 14.9.1999 and shares held by the Ministry of commerce were transferred to the State Trading Corporation of India Ltd.

With the diversified trading activities, the company’s name has been further amended from Spices Trading Corporation Limited to “STCL LIMITED” and fresh Certificate of Incorporation under the name of STCL Limited has been obtained with effect from August 13, 2004.

Share Capital

The authorized Share Capital of the company as laid down in its amended Memorandum of Association is Rs. 5,00,00,000/- (Rupees Five Crores), divided into 5,00,000/- equity shares of 100/- each (Five Lakh equity shares of One hundred).

The Paid up Share Capital of the Company as on today is 1,50,00,000/-(Rupees one Crore fifty lakh) comprising of 1,50,000 equity shares.

Performance:

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During the Financial Year 2013-14, the Company has achieved a turnover of 84.63 crore. The company had taken exemption from entering into MOU for the

year 2014-15 and 2015-16, in view of winding up process. The detail of actual achievement of the company is as follows in Table 6.7:

Table 6.7 Particulars 2013-14 Audited 2014-15 2015-16 Gross Sales 90.09 Nil Nil PBT -352.52 Nil Nil PRESENT POSITION OF THE COMPANY:

The company is incurring loss from the year 2008-09 and is having a negative net worth of 2,454.64 crore as on 31.03.2014.

In view of the above, the Union Cabinet in its meeting held on 13.08.2013 had approved the winding-up of the company. Accordingly, the company has filed an application in the Hon’ble High Court of Karnataka for winding-up of the company u/s 433(a) of the Companies Act, 1956.

V. National Centre for Trade Information (NCTI)

The National Centre for Trade Information (NCTI) was incorporated on 31st March, 1995 as a Company under Section 25 of Companies Act, 1956. The Company started functioning w.e.f. March 1996. It has a Board of Directors for administration of its affairs, which includes representatives from Ministry of Commerce & Industry, National Informatics Centre (NIC), Indian Institute of Foreign Trade (IIFT), and Directorate General of Commercial Intelligence & Statistics (DGCI&S).

The ITPO and NIC are co-promoters of the Company and have contributed a sum of 4.00 crore ( 2.00 crore each) as Corpus Fund in the equity contribution of the Company. The ITPO provides fully furnished office space and the NIC provides the software and hardware against their equity contribution in kind.

The Centre provides the following services: • Electronic Trading Opportunities (ETOs) or live trade enquiries – all markets

all products. • Uploading 52 issues of E-weekly ‘Trade Point-India’ annually on its website

containing approximately 250 Trade Leads each week. • Trade data based research and analysis – 2/4/6/8 digit HS classification-India

/ Target Country – 9/10 digit level.

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• Focus Market: Focus Product-Export potential studies. • Drawing/evaluating wish lists/offer lists under various PTA/FTAs of India

(existing and prospective). • Creation and maintenance of websites. • Website content management. • Market research/studies/surveys. • Creation of databases-Importers/Exporters (product category wise). • Setting up Trade Information Centres. • Trade Fair/exhibitions support:

� Website design and development. � Database creation. � Visitor registration. � Feedback surveys.

Some of the major studies undertaken

• Study on India’s Bilateral Engagements with Indonesia and Thailand.

• India-Canada FTA Work.

• Study on ‘Identification of Tariff lines with high export potential to Eastern and

Central European Countries – Czech Republic, Poland, Bulgaria, Hungary &

Austria’.

• Study on ‘India ASEAN FTA-Post implementation impact on trade of NT1,

NT2 and ST items with Malaysia, Thailand, Indonesia and Singapore.

• Study on ‘Identification/mapping of possible handicrafts items, HS

Classification, trends in imports by major markets and increasing India’s

exports to major markets’ for Development Commissioner of Handicrafts,

Ministry of Textiles.

VI. ECGC Ltd. (Export Credit Guarantee Corporati on of India Ltd.)

The ECGC Ltd., Mumbai was set up in 1957 under the Companies Act, 1956. It has the primary objective of supporting the country’s exports by extending Insurance and Guarantee facilities to the Indian exporters and the commercial banks. The paid up capital at the end of 2013-14 was 1100.00 crores.

Infusion of paid up capital of 800 Cr. in the ECGC Limited has been

approved for the 12th FYP. In the last three years, Rs.300 crore has been infused

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as paid up capital in ECGC Ltd. This will provide the cooperation to underwrite high level of risk coverage and also facilitate higher exports from the country.

The Corporation provides Export Credit insurance to exporter and banks. i)

The Export Credit Insurance Policies (Policy) issued to Exporters provides insurance cover against commercial and political risks for shipment made on short-term/long-term credit. There were 11109 short-term policies and 64 long term policies in force at the end of year amounting to 131343 crores. ii) The Export Credit Insurance for Banks (ECIB) provides covers against non-payment of export credit by exporters due to default/insolvency. The corporation has provided 78 WT covers to 41 banks.

The total premium collected from all the schemes of the Corporation during

the year amounted to .1303.73 crores as compared to 1157.25 crores in 2012-13, registering a growth of 12.66%. During the year a total sum of 158.31 crores was recovered as against to 120.53 crores in the previous year. The total claims paid during the year amounted to 897.49 crores compared to 548.50 crores in the previous year.

The total gross income of the Corporation amounted to 1395.38 crores

(Previous year 1206.60 crores) of which net earned premium income was 907.35 crores (Previous year 796.04 crores). The year under review ended with a profit of about .539.05 crores before tax. ( 350.14 crores profit before tax earned for 2012-13). The Corporation has declared and paid a total dividend of Rs.88.00crores for the year 2013-14 as compared to 60.00 crores paid during the previous year.

New Initiatives

The Authorized Capital of the Corporation has been enhanced during the year from Rs 1000 crores to 5000 crores in the month of July 2013. During the FY, Government of India (GOI) subscribed 100 crores towards paid up capital of the Corporation increasing it to 1100 crores.

Comprehensive Buyer Score Card system was implemented in the

Corporation during the year. A new Country Risk Rating model was developed and implemented with support from an international consultants for Dynamic quarterly updating of Country Risk Rating.

Underwriting policies and operating procedures of the Corporation were updated after 2007 during the year in Novemeber 2013. An Independent Review Committee (IRC) is set up in April 2013 to handle customer complaints, and during FY 2013-14, IRC has examined 48 such cases and recommended 14 cases to claims committee, of which 9 cases were paid.

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Corporation adopted additional Risk Mitigation measures for ECIB in

Consultation with Indian Bank Association(IBA) from February 2014 onwards. Corporation introduced the following new Policy Covers for MSMEs during

the year after due approval from IRDA.

• Micro Exporters Policy (Export turnover upto 1 crores)

• Small Exporters Policy (Export turnover upto 5 crores)

• Multi Buyer Exposure Policy (Export turnover from 20 crores to 100 crores)

Corporation under its ECIB portfolio introduced “Surety Cover” for banks (for all exporters) after revamping its earlier ECIB – Export Performance cover.

Corporation opened its first overseas representative office in London in the

month of September 2013. Corporation strengthened Corporate Governance practices by formulating

various policies (e.g. Compliance policy, code of ethics, for Directors/Senior Management, comprehensive Audit Manual etc.) for the first time and improved its Corporate Governance Rating (as per Department of Public Enterprises guidelines) from ‘Very Good’ in FY 2012-13 to ‘Excellent’ in FY 2013-14. Overall rating under MOU for the FY 2013-14 was “Excellent” achieved after a gap of six years.

ECGC in Association with D & B organized Export Risk Management

Conclaves at Mumbai, Bangalore, Faridabad, Kolkata, Indore, Coimbatore, Ludhiana and Ahmadabad during November 2013 to March 2014, to serve the purpose of educating the exporters about management of risks in the export trade.

VII. Export Inspection Council of India (EIC) Activities and Achievements

Export Certification Certification continues to be mandatory in the areas of fish & fishery products,

milk products, fresh poultry products, egg products, meat & meat products, animal casing, crushed bones, gelatin and honey. The EIAs also continue to certify other notified products such as basmati rice, black pepper etc and non-notified products such as coir Pith, Tea, and Auto Parts etc. Steps were taken to bring some more

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areas/products under the certification regime of EIC. These included products such as crushed bones, gelatin, animal feeds and casing

Residue Monitoring Implementation of Residue Monitoring continued to be an important area.

Residue Monitoring Plans were implemented in dairy, honey, poultry and egg sectors. During 2013-14, a total number of 776 samples were tested. During April-Nov 2014, 499 samples have been tested for the entire range of residues relating to pesticides, antibiotics, heavy metals and other chemicals as required by the European Commission.

Certificates of Origin EIC/EIAs continued to issue certificates of origin under various preferential

tariff schemes. As on date, EIC / EIAs are issuing preferential certificates of origin under the following 15 schemes.

1. Generalized System of Preferences 2. Global System of Trade Preferences 3. Asia Pacific Trade Agreement 4. SAARC Preferential Trading Arrangement 5. FTA between India and Sri Lanka 6. India Afghanistan FTA 7. India Thailand FTA 8. India Singapore comprehensive Economic cooperation Agreement 9. South Asian Free Trade Area 10. PTA with Chile 11. India MERCOSUR PTA 12. India Korea CEPA 13. ASEAN India FTA 14. India Malaysia CECA 15. India Japan CEPA Whereas, for the year 2013-14 the ElAs issued 995912

preferentialtariffcertiflcatesundervariouspreferentialrariffschemes, during April-Nov. 2014, the number of certificates issued by the EIAS under various preferential tariff schemes stood aL65774.

Strengthening Laboratory Capabilities

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ElCisalsoconcentratingonstrengtheningofitslaboratorycapabilities.Thelaboratories at Mumbai, Kochi, Chennai and Kolkata were upgraded with new equipment New premises for ElA Kolkata lab was finalized and the lab has started functioning from the new premises ensuring that there is better Working atmosphere and more credibility is added to the lab network.

Strengthening Manpower EIC continued its effort to train both the internal manpower as well as have

Awareness programme for the industry. Till March 2074, 11 programmes were held for internal manpower in which 112 persons were given exposure. The basic areas Which Were covered included certificate of origin, dairy products, and fish & fishery products’ HACCP ‘computerization' laboratory testing etc.

Computerizations and Modernisation

• New Project initiative: A new project for complete digital issuance of Certificate of origin (CoO) under various schemes has also been taken up by the department on the 'complete managed hosting concept’. Through this system, all types of CoO would be issued online as well as all related fee for CoO could be paid online through various possible payment modes. This system would have more facility as compared to the existing system for issuance of CoO under various schemes and will be more user-friendly.

• Agreement with M/s. PCS was signed to support the Facility Management Services. Under this agreement, M/s. PCS maintain the IT – Infrastructures at EIC, EIAs and their sub-offices including website management, provide Data Entry Operators and Resident Engineers for the smooth functioning of the offices.

• To establish a new & better way of communication among the offices of EIC/EIAs and with the stakeholders/customers e-certification systems for Fish and Fishery products intended for exports to European Union were established which has provided for transparency and objectivity to the certification process. This project is has been extended in the scheme of peanuts as well.

Agreements with other Countries:

Continued efforts were made towards entering into Memoranda of Understanding (MoUs)/ Mutual Recognition Agreements (MRAs)/ Equivalence Agreements with the major trading partners so that EICs certification is accepted by these countries. Effective steps were taken towards negotiating agreements with Israel for food & agricultural items, Brazil for fishery products. Further discussions

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were also held to enter into similar agreements with Japan, Thailand, Mauritius and Sri Lanka. The Agreement with Singapore in the electrical and electronics sector was further streamlined. The status of existing MoUs/MRAs/Recognition Agreements is given in Table 6.8.

Table 6.8 Existing Agreements/Recognition on EIC certification

Country Products Covered Year of Agreement/ Recognition

USA Black Pepper 1988 European Commission Fish & Fishery Products, Basmati Rice 1997 Korea Frozen marine products, processed spice

goods, processed nuts, tea, honey, jam, preserved goods, sauce, sugar syrup, edible oil and fats

2004

Turkey Food products, food packaging materials and stainless steel utensils

2004

Singapore Food & agriculture (egg products, dairy products, drinking water), electric & electronic products, Telecommunication equipment’s and Drugs & Pharmaceuticals

2005

Japan Poultry & marine products 2005 Italy Marine sector (Technical cooperation) 2005 China Iron ore (under renewal) 2006 Saudi Arabia Fish and Fishery Products 2008 Russia Fish and Fishery Products 2009 Vietnam Products of Animal and Plant origin 2011 China Animal feed ingredients-oil cakes 2013 Exports

The value of exports certified by the EIAs during the year 2013-14 was 11123.98 crore. During April-Nov, 2014, the value of exports certified by the EIAs was 8239.27 crore as given in Table 6.9 .

Table 6.9 Products Certified for Exports during April-Nov 201 4

Group/Product Name Value of product certified ( In core) Fish & Fishery Products 5109.44 Basmati Rice 22.04 Black Pepper 66.51 Egg Products 104.21 Milk & Milk Products 865.11 Poultry 59.41

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Honey 121.44 Chemical & Allied products 21.26 Engineering 126.44 Other Schemes 1743.41 Total 8239.27 Source: Department of Commerce Fees and Revenue Generation:

The basic source of revenue of EIC/EIAs continued to be from monitoring and inspection fee realized for different notified and non notified products as well as certification under GSP and other preferential tariff schemes. The fee charged is at a level of 0.4% of FOB value for products inspected under Consignment wise inspection while it is 0.2% of FoB value for products under systems certification.

Testing is mostly carried out for samples collected for the purpose of inspection & certification and are generally not charged separately, while some amount of samples are tested for other government departments and industry on cost basis.

The total revenue generated in 2013-14 by the organization was to the tune of 8771.24 crores. The revenue realized between April-Nov 2014 is 6581.03 crore.

The break-up of actual fees realized under various schemes and activities

during April-Nov. 2014 is given in Table 6.10.

Table 6.10 Revenues

( In lakh) Schemes/Activities Actual Fees Realized till 30 Nov 2014 Fish & Fishery Products 1124.46 Basmati Rice 149.42 Black Pepper 50.46 Egg products 65.97 Milk & Milk Products 79.44 Poultry 2.64 Honey 28.49 Chemical & Allied Products 21.49 Engineering 107.50 Other Schemes 1064.24 Total from Inspection 2694.11

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Certificate of Origin 3421.44 Other Income 465.48 Total 6581.03 Source: Department of Commerce. VIII. The Indian Institute of Packaging (IIP)

The Indian Packaging Industry, is growing at a fast pace of 13% annually and estimated to cross the 100,000 crore mark by 2015.

The current value of the industry rests at 78,000 crore. The Packaging industry is expected to grow at 18-20 per cent from the current, and will soon climb upto the 4th position in the world packaging industry from the 11th position currently. Consultancy and Projects

The Institute during the year 2013-14 undertook and conducted consultancy projects for Packaging of Passport, Travel Documents (Phase-1) for Indian Security Press, Nasik, Development of specification for packaging of 20 klg Apples in RSC type CFB boxes for Directorate of Horticulture Govt. of Himachal Pradesh

The Institute undertook number of advisory study visits to offer the suggestions in terms of cost optimization of packaging materials, modernization/automation etc. Testing and Analysis

The Institute’s Laboratories which is accredited by NABL and also approved by Bureau of Indian Standard, conducted testing on total of 6993 nos. of samples on behalf of 3244 firms as general testing analysis and evaluation.

The Institute also issued 7545 nos. of UN Certification for testing of 6818 nos. of samples for 6782 nos. of firms.

The Institute is also recognized as R&D Institute by the Dept. of Science and Technology under Scientific and Industrial Research Organisations (SIROs) scheme. Training and Education

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The Institute conducts two year Post Graduate Diploma in Packaging, Three months intensive training course in Packaging, One and half years correspondence course Diploma under Distance Education Programme in Packaging.

The Institute also conducted Executive Development Programmes and Collaborative/In-plant Training Programmes for the benefit of different packaging industries.

The Institute also conducted workshops at National levels on behalf of Ministry of Food Processing Industries, Govt. of India. Research and Development The Institute is currently engaged in carrying out the R&D on

• Shelf life enhancement of coconut water using minimal processing and packaging

• Fluid transfer equipment development for minimal contamination • Exploring processing techniques, assessment and evaluation • Development of suitable packaging.

National/International Exhibition

The India pack 2013 and Indpack 2014 was held at Mumbai and Delhi.

The Institute also participated at Interpack 2014 during 12th – 17th May,2014 in the form of India Pavilion. National Conference

National Conferences conducted on Global Trends in Packaging of Food Pharmaceuticals and Bulk Drugs at Hyderabad during 26-27 July, 2013, Consumer packaging – challenges & opportunities held during 17-18 Jan, 2014 at New Delhi and Packaging Hazardous Goods for Export and the Importance of UN Certificate held on 30th August, 2013 at Mumbai International Interface Training programme was also conducted for upliftment of African Packaging Industries under Indo-Africa Summit.

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25 participants from 12 African countries i.e. Nigeria, Ghana, Botswana, , Egypt, Zambia, Lesotho, Tunisia, Rwanda, Burundi, Uganda, Zimbabwe, Ethiopia attended the programme. The Institute also conducted Two weeks residential training programme on Packaging Technology from 1st – 12th July, 2013 for multi-discipline group of from Sri Lanka which was sponsored by the Ministry of Industrial Development, Sri Lanka. Information and Publication The Institute published its bi-monthly Packaging India Journal during the year covering different segments of packaging including the innovation and latest development in the field of Packaging. Financial Performance Institute has reported the increase of 4% in Gross Total income to Rs. 2489/- lac during the financial year 2013-14 from Rs. 2393/- lacs FY 2012-13. Operating income of the Institute has increased by 4% to Rs. 2011.57/- lacs for FY 2013-14 from Rs. 1933.20 lacs for FY 2012-13.

Although there is decrease in total expenses by 2.67% to Rs. 1674/- lacs for FY 2013-14, the operating expenses have increased by 6.72% to Rs. 1550.09 lacs for FY 2013-14 from Rs. 1452.49 lacs for FY 2012-13 mainly due to establishment costs and rise in administrative

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