Outcome Budget 201011

8/3/2019 Outcome Budget 201011

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GOVERNMENT OF INDIA

OUTCOME BUDGET

2010-2011

DEPARTMENT OF COMMERCEMINISTRY OF COMMERCE & INDUSTRY



CONTENTS

Sl. No. Contents Page No.

Executive Summary 1-5

CHAPTER-I Introduction 6-19

CHAPTER-II Financial Outlays and Quantifiable Deliverables –Physical Outputs & Final Outcomes

20-33

CHAPTER-III Reform Measures and Policy Initiatives 34-46

CHAPTER-IV Review of Past Performance 47-96

i. Assistance to States for Development of ExportInfrastructure and Allied Activities(ASIDE)

47-49

ii. Special Economic Zones (SEZs) 49-54

iii. Tea Board 54-55

iv. Coffee Board 55-56

v. Rubber Board 56-58

vi. Spices Board 59-62

vii. Tobacco Board 63-64

viii. Marine Products Export Development Authority

(MPEDA)65-67

ix. Agricultural and Processed Food Products Export

Development Authority (APEDA)67-68

x. Marketing Development Assistance (MDA) 69

xi. Market Access Initiative (MAI) 69-70

xii. National Export Insurance Account (NEIA) 70-71

xiii. Export Credit Guarantee Corporation of India

(ECGC)71

xiv. Price Stabilization Fund Scheme(PSF) 72-73

xv. Crop Insurance Scheme (Proposed) and Other

Initiatives for the Plantation Sector73-74

xvi. Footwear Design & Development Institute (FDDI)74-75

xvii. Modernization & Upgradation of DGFT 75

Annexure-A, B, C, D & E 76-96

CHAPTER-V Financial Review 97-106

CHAPTER-VI Review of Performance of Statutory and

Autonomous Bodies107-128



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EXECUTIVE SUMMARY

The basic role of the Department is to facilitate the creation of an enabling environment andinfrastructure for accelerated growth of exports and trade. In consonance with the Government’s

vision of making India a major player in world trade, the Foreign Trade Policy (FTP) is announcedevery five years. It provides the basic policy framework of translating this vision into specificstrategies, goals and targets. The two basic objectives of the Foreign Trade Policy (FTP), 2004-09were doubling of India’s share in global trade in the next five years and making trade an effectiveinstrument of economic growth by giving a thrust to employment generation. The Policy, withclearly enunciated objectives and strategies and necessary initiatives taken by the Governmentduring the last five years, has been very effective in putting India’s exports on a higher growthtrajectory. Indian exports grew from US$ 83.5 billion in 2004-05 to US$ 185.3 billion in 2008-09,registering an average annual growth rate of 24%. With a view to augment employmentgeneration in key areas, labour intensive sectors coupled with significant export potential wereidentified and specific initiatives undertaken.

The year 2008-09 was marked by an unprecedented global economic slow-down. All majoreconomic activities like industrial production, trade, capital flows, employment, investment andconsumption took a hit. Though India was able to withstand the adverse effects of the globalslowdown relatively well compared to the developed economies of the world, its exports wereadversely affected, especially during the second half of 2008-09. India’s GDP growth came downto 6.7% in 2008-09 as compared to the average annual rate of 8.8% registered during the period2003-04 to 2007-08. The contraction in overseas demand also adversely impacted growth of India’s exports with the growth rate coming down to 13.6% in 2008-09 from a high of 29.1%achieved during the previous year.

India’s exports continued to remain under pressure during the first seven months of the year 2009-10. During the period April-December 2009-10, exports stood at US $ 117.6 billion as against US$ 147.6 billion during the corresponding period of the previous year, showing a decline of 20.3%.However, with a marked improvement in the global economic environment from the secondquarter of 2009, India’s exports have started to recover. After declining consistently for the firstseven months of the year 2009-10, India’s exports have registered positive growth for the monthsof November and December of 2009. It is expected that India’s exports would continue to show apositive growth in the coming months also.

It is against this backdrop of a global economic crisis and faltering exports that the new ForeignTrade Policy (FTP), 2009-14 was unveiled by the Government on 27th August, 2009. The new

Policy clearly spells out both the short term and the long term objectives of the Government. Theshort term objective of FTP (2009-14) is to arrest and reverse the declining trend of exports and toprovide additional support especially to those sectors which have been hit badly by recession in thedeveloped world. The Policy also aims to achieve an annual export growth of 15% with an exporttarget of US$ 200 billion by March, 2011. The medium/long term objectives of the Policy include(i) achieving an export growth of about 25% per annum in the remaining three years of the FTP(2009-14), (ii) doubling of India’s exports of goods and services by 2014 and (iii) doubling of India’s share in global trade by 2020.



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Improvement in infrastructure related to exports, bringing down transaction costs and providingfull refund of all indirect taxes and levies would be the three pillars which are expected to providethe required support to achieve the targets set in the policy. Besides other measures, the importantinitiatives announced in the Policy include strengthening the Focus Market Scheme (FMS) and

Focus Product Scheme (FPS) by increasing the incentives available under the schemes andbringing more products and markets under these schemes; extending the Duty EntitlementPassbook (DEPB) scheme till 31.3.2010; extending interest subvention scheme till 31.3.2010;continuing the income tax exemption to 100% EOUs and STPI units for the financial year 2010-11and introduction of EPCG Scheme at zero duty and 1% duty credit scrip for status holders with aview to aid technological upgradation of our export sector.

Subsequent to announcements made in FTP (2009-14), short term sectoral performance review of the exporting sectors was carried out and additional measures were extended in January, 2010 tosectors still showing significant decline in exports. Some of these measures are:

• 112 new products added under FPS at 8 digit level;

• 113 new products at 8 digit level given higher benefit @ 5% of FOB value of exports underspecial FPS;

• 1837 new products added under Market Linked Focus Product Scheme (MLFPS) at 8 digitlevel;

• Two new major markets; viz. China and Japan, with which we have major trade deficit,have been added under MLFPS;

• New products, viz. sesame seeds and minor coconut products added under Vishesh Krishiand Gram Udyog Yojna (VKGUY);

• A new market viz. Timor Leste added under FMS.

Development of Special Economic Zones (SEZs) is a major initiative of the Government. This isaimed at generation of additional economic activity; promotion of exports of goods and services;promotion of investment from domestic and foreign sources; creation of employment opportunitiesand development of infrastructure facilities. As on 31.12.2009, a total of 573 formal approvalshave been granted for setting up of Special Economic Zones, out of which 346 SEZs have beennotified and are in various stages of operation. SEZs in India provide direct employment to over4.90 lakh persons (as on 31.12.2009). The Special Economic Zones notified under the SEZ Act,2005 have already made an investment of Rs. 124349.54 crore in the very short span of time sincethe coming into force of the SEZ Act in February, 2006. A total of 101 SEZs are alreadyexporting. The exports in the current year i.e 2009-10 from the SEZs have been to the tune of Rs.151785 crore (as on 31.12.2009).

Plantation crops have been the traditional exports of India providing employment to millions of workers. Ageing bushes/ plants which results in low productivity, high cost of production, lowvalue addition, lack of strong build up of ‘brand India’ and volatility of international demand andprices are the major constraints facing this sector. With a view to ensure healthy growth andimproved productivity of the tea gardens, the Government set up a Special Purpose Tea Fund(SPTF) in 2007. The objective is to cover 2.12 lakh hectares over a fifteen-year period. The majorachievements during the year 2008-09 include replantation in 4020.20 hectares, rejuvenation in



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1553.27 hectares, and irrigation and drainage in 4325.37 hectares. During the period April-December 2009-10, replantation in 3284 hectares and rejuvenation in 890.43 hectares have beenachieved. The redesigned e-auction system developed in collaboration with NSE-IT was tested outin all the public auction centers during 2009-10 and the new system would be fully operationalduring the financial year 2010-11. The Tea Research Institute at Tocklai, Jorhat, being managed by

Tea Research Association will be celebrating its centenary in May 2010.

In the Rubber sector, the Rubber Research Institute (RRII) released two new clones (namely RRII417 and RRII 422) for boosting large-scale cultivation in the traditional rubber growing region.The technology for production of deproteinised natural rubber (DPNR) was developed. TheGolden Jubilee Complex of RRII was inaugurated in 2009 which houses the Advanced Centre forRubber Technology (ACRT) under RRII. The ACRT will focus upon industry oriented research inthe areas of Rubber/Polymer Science and Technology with potential applications in the variousrubber goods manufacturing sectors, including tyre industry.

A Special Fund for Replantation & Rejuvenation of Cardamom Plantations has been set up during

the Eleventh Plan with an outlay of Rs.122.23 crore. The scheme aims at replantation of 25,000hectares under cardamom (small) & 10,000 hectares under cardamom (large) and rejuvenation of 15,000 hectares and 10,000 hectares respectively for cardamom (small) and cardamom (large)during the plan period. For the year 2009-10, a target of replantation and rejuvenation of smallcardamom in an area of 2563 ha and 1310 ha respectively has been set. For large cardamom,during 2009-10, replantation and rejuvenation in an area of 1000 ha and 610 ha respectively istargeted. Under the Eleventh Plan scheme of Export Development and Promotion, six Spices parksin growing/marketing centres are proposed to be set up viz. Idukki in Kerala, Sivaganga in TamilNadu, Guntur in Andhra Pradesh, Gujarat, Jodhpur in Rajasthan and Uttar Pradesh. The first everSpices Park set up under the ASIDE scheme at Chhindwara in Madhya Pradesh was inauguratedduring February 2009.The Spices Park at Puttadi, Idukki is expected to become functional inMarch 2010.

The Government launched a Price Stabilization Fund (PSF) Scheme in April 2003 against thebackdrop of decline in international and domestic prices of tea, coffee, rubber and tobacco. Theobjective of the Scheme was to safeguard the interests of the growers of these commodities and toprovide financial relief when prices fall below a specified level. The scheme aims to cover 3.42lakh small growers (up to 2 ha landholding) in the initial phase. As on November 30, 2009, a totalof 46210 growers have been enrolled under the PSF Scheme, of which 18914 are rubber growers,11594 coffee growers and 15702 are tea growers.

A Personal Accident Insurance Scheme is under implementation by PSFT through NationalInsurance Corporation Ltd. The scheme covers growers in the sectors of Tea, Coffee, Rubber andTobacco and Spices (chillies, cardamom, ginger, turmeric and pepper) having plantations up to 4hectares only. The Scheme envisages an insurance cover up to Rs. 1.00 lakh per person. Thepremium of Rs.17/- is shared between the beneficiary and the PSF Trust in the ratio 50:50. As on30.11.2009, a total of 3785 number of growers and 296 workers in Coffee Sector have beenprovided insurance cover. Enrolment of growers and workers at auction platforms as also at theplantations by the Vendor in coordination with Commodity Boards and Commodity Associationshas begun.



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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 relatedmatters, 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 is setup in the Department with requisite hardware and software andis going to be commissioned soon. The Department's web site (http://commerce.nic.in) is themajor source of information dissemination and provides Government-to-Citizen (G2C) andGovernment-to-Business (G2B) interfaces for electronic delivery of services, trade facilitation andmonitoring various applications. The access to various e-governance and office automationsystems/ applications and databases is available to the user in the Department through an IntranetPortal.

The Electronic Trade Project (eTRADE) is a major initiative aimed at promoting e-delivery of

services by various regulatory/facilitating agencies like Customs, Sea Ports, Airports, DirectorateGeneral of Foreign Trade (DGFT), Container Corporation (CONCOR), Export PromotionOrganizations, Exporters, Importers, Agents and Banks. The services covered under the projectinclude electronic filing/clearance of export/import documents by the stakeholders (exporters,importers, agents to Customs, Seaports, Airports, CONCOR, DGFT etc.), e-Payment of duties,charges (handling/freight etc.) and the electronic exchange/clearance of documents betweencommunity partners. The project has helped the trade and industry in easy and quick filing/clearance of import/export documents, easy and faster payment of charges/duties, faster andtransparent clearances and faster receipt of incentives/drawback.

e-Procurement has been integrated as computerized online comprehensive process covering theidentification of buyer requirements and requisition processing, soliciting and receiving bids of allsorts, negotiating and establishing contracts and processing overall purchases and also undertakingvendor registration and inspection of stores to ensure quality. DGS&D has implemented e-procurement for most identified rate contract items which is an important part of the ‘MissionMode Project’ under the National e-Governance Plan (NEGP). With effect from 1st October 2008,all supply orders against the Rate Contract must be placed by Direct Demanding Officers onlinethrough the DGS&D website only (www.dgsnd.gov.in). Over 42,000 supply orders have beenplaced online through the DGS&D system.

The Outcome Budget is a technique of presenting the budget of the Ministry/Department in termsof functions, programmes, and activities. The Outcome Budget 2010-11 of the Department of Commerce highlights the various programmes and activities undertaken/envisaged to beundertaken by the Department in furtherance of the core objective of strengthening India’s foreigntrade performance in the context of the related targets and achievements for 2008-09 and first ninemonths of 2009-10 and targets set for 2010-11 in terms of financial outlays, physicaloutputs/quantifiable deliverables and outcomes. The present document is divided into six chaptersviz:



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Chapter I brings out a brief introductory note on the goals, objectives and functions; theorganizational set up; its mandate and the list of major programmes/ schemes implemented by theDepartment.

Chapter II presents the vertical compression and horizontal expansion of Statement of Budget

Estimates. The main objective is to establish a one to one correspondence between (financial)Budget 2010-11 and Outcome Budget 2010-11. The details comprise of the financial outlays,projected physical outputs and projected/ budgeted outcomes.

Chapter III highlights the details of reforms measures and policy initiatives undertaken by theDepartment and how these relate to the intermediate outputs and final outcomes in areas such aspublic private partnership, delivery mechanisms, social and gender empowerment processes,greater decentralization, transparency etc.Chapter IV reviews the scheme-wise past performance of the various programmes and activitiesundertaken by the Department during 2008-09 and 2009-10 (i.e upto 31

stDecember, 2009) in

terms of targets already set. It also explains the reasons for variations in the physical targets and

achievements.

Chapter V deals with financial review covering overall trends in expenditure vis-à-vis BudgetEstimates/ Revised Estimates in recent years, including the current year i.e. 2009-10 (scheme-wise, object head wise, and institution wise in the case of autonomous institutions), and theposition of outstanding utilization certificates and unspent balances with States andimplementation agencies.

Chapter VI reviews the performance of the Statutory and Autonomous Bodies under theadministrative control of the Department.

Mechanism and the Public Information System to monitor the physical and financial

progress

Each Administrative Division is provided the guidelines for the release of budget to theimplementing agencies. The implementing agencies are directed to put in place their ownmechanism for providing assistance to the ultimate beneficiaries to ensure the compliance of theguidelines and to monitor the implementation and outcomes. The Department also monitors theexecution of the scheme and its impact towards achieving the desired objectives. EachAdministrative Head monitors and reviews the physical and financial progress of the variousschemes under their respective charge on a quarterly basis, which is further supervised andoverseen by the Financial Advisor and Secretary as and when required. The quarterly review onthe Outcome Budget carried out by the Administrative Heads every quarter is made available onthe Website of the Department of Commerce for the information of the public.



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CHAPTER I

INTRODUCTION

I. Goals & Objectives:

The basic role of the Department is to facilitate the creation of an enabling environment foraccelerated growth of international trade. The Department formulates, implements andmonitors the Foreign Trade Policy which provides the basic framework of policy and strategyto be followed for promoting exports and trade. The Trade Policy is periodically reviewed toincorporate changes necessary to take care of emerging economic scenarios both in thedomestic and international economy. Besides, the Department is also entrusted withresponsibilities relating to multilateral and bilateral commercial relations, Special EconomicZones, State Trading, export promotion & trade facilitation, and development and regulationof certain export oriented industries and commodities.

The Department has set a long term vision of making India a major player in world trade. Theachievement of this vision calls for complete synergy and harmony between trade policies andother economic and international policies being followed by the country. The macro policyframework of the international trade policies being followed by the country are guided by thisbasic vision. Playing a leading role in the discussions/negotiations for working out a newinternational order of trade and commerce including the WTO regime in its capacity as amajor emerging economy and as one of the strategy leaders for the developing countries is anintegral part of this vision.

The twin objectives of the Foreign Trade Policy (FTP) 2004-09 was doubling of India’s share

in global trade in the next five years, and making trade an effective instrument of economicgrowth by giving a thrust to employment generation. The Indian exports witnessed robustgrowth during the five year period from 2004-05 to 2008-09. During this period, the exportsgrew at an average annual growth rate of 23.9%; increasing from US$ 83.5 billion in 2004-05to US$ 185.3 billion in 2008-09.

In 2008-09, the world witnessed one of the most severe global recessions in the post-warperiod that affected countries across the globe in varying degrees. Though India was notaffected to the same extent as other economies of the world during this phase, yet its exportssuffered a significant decline since October 2008 due to shrinkage of demand in thetraditional markets of our exports and the reduced international prices of commodities. After

having grown by about 48.1% in dollar terms during the period April to September, 2008,India’s exports started declining from October, 2008, bringing down the annual growth to13.6% in 2008-09. During 2009-10, after showing a negative growth for the first sevenmonths, India’s exports have entered the positive territory from November, 2009.

Against this backdrop, the Foreign Trade Policy, 2009-14 was announced on 27th

August,2009. The short term objective of FTP (2009-14) is to arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit



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badly by recession in the developed world. The long term policy is to double India’s share inglobal trade by 2020. The FTP (2009-14) envisages three basic pillars for supporting India’sexports. These are (i) Strengthening of infrastructure related to exports, (ii) bringing downtransaction costs, and (iii) providing full refund of all indirect taxes and levies.

II. Organisational Set Up

The Department is headed by a Secretary who is assisted by a Special Secretary & FinancialAdviser, three Additional Secretaries and thirteen Joint Secretaries and Joint Secretary levelofficers and a number of other senior officers.

The Department is functionally organized into the following eight Divisions:

1. Administration and General Division2. Finance Division3. Economic Division

4. Trade Policy Division5. Foreign Trade Territorial Division6. State Trading & Infrastructure Division7. Supply Division8. 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) fivePublic Sector Undertakings, (E) Advisory Bodies, (F) fourteen Export Promotion Councils(EPCs) and (G) other Organizations. The broad organizational set up and major role andfunctions 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 of Foreign Trade. It is responsible for implementing the Foreign Trade Policy with the mainobjective of promoting Indian exports. It includes implementation of various dutyneutralization schemes such as Advance Authorization, Duty Free Import Authorization(DFIA), Duty Entitlement Passbook (DEPB), Deemed Export Duty Drawback and TerminalExcise Duty (TED) refund, Export Promotion Capital Goods (EPCG) and incentive schemes

like Focus Market, Focus Product, Vishesh Krishi & Gram Udyog Yojana and Served fromIndia.

DGFT through its various offices provides facilitation to exporters in regard to developmentsin the area of international trade, i.e. WTO agreements, Rules of Origin and SPSrequirements, Anti-Dumping issues, among others, to help the exporters to strategize theirimport and export decisions in an internationally dynamic environment. DGFT also issues



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authorisations to exporters/ importers and monitors their corresponding obligations through anetwork of 35 Regional Offices.

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

The DGS&D, with headquarters at New Delhi, is headed by the Director General. Itfunctions as the executive arm of the Supply Division of the Department of Commerce forconclusion of Rate Contracts for common user items, procurement of stores, inspection of stores, shipment and clearance of imported stores/ cargo. It has three Regional Officeslocated at Chennai, Mumbai and Kolkata. The functions of DGS&D are carried out throughits functional wings and supporting service wings.

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

The Directorate General of Anti-Dumping & Allied Duties was constituted in April, 1998 andis headed by the Designated Authority of the level of Additional Secretary to the Government

of India who is assisted by a Joint Secretary, Adviser (Cost) and Additional EconomicAdviser. Besides, there are twelve Investigating and Costing Officers to conductinvestigations. The Directorate is responsible for carrying out investigations and torecommend, where required, under Customs Tariff Act, the amount of anti-dumping duty/ countervailing duty on the identified articles which would be adequate to remove injury to thedomestic industry.

(B) Subordinate Offices

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

The Directorate General of Commercial Intelligence & Statistics (DGCI&S) is the premierorganization of Govt. of India for collection, compilation and dissemination of India’s TradeStatistics and Commercial Information. This Directorate, with its office located at Kolkata, isheaded by the Director General. The foreign trade data generated by the Directorate aredisseminated through (i) Monthly Press Release brought out every month by the Ministry of Commerce and Industry, (ii) Monthly Foreign Trade Statistics of India by PrincipalCommodities & Countries, (iii) Monthly Statistics of Foreign Trade of India (Import &Export), and (iv) Quarterly Statistics of Foreign Trade of India by Countries. The Directoratebrings out a number of publications on, inter alia, inland and coastal trade statistics, revenuestatistics, shipping & air cargo statistics. The dynamic pages of the DGCI&S websitewww.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 Zone (SEZ)

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 andforeign sources, creation of employment opportunities along with the development of infrastructure facilities. All laws of India are applicable in SEZs unless specifically exempted



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as per the SEZ Act/ Rules. Each Zone is headed by a Development Commissioner and isadministered as per the SEZ Act, 2005 and SEZ Rules, 2006. There are currently eightDevelopment Commissioners of SEZs. Units may be set up in the SEZ for manufacturing,trading or for service activity. The units in the SEZ have to be net foreign exchange earnersbut they are not subjected to any predetermined value addition or minimum export

performance requirements. Sales in the Domestic Tariff Area from the SEZ units are treatedas if the goods are being imported and are subject to payment of applicable customs duties.

(iii) Pay and Accounts Office (Supply)

The payment and accounting functions of Supply Division, including those of DGS&D, areperformed by the Chief Controller of Accounts (CCA) under the DepartmentalizedAccounting System. Payment to suppliers across the country is made through thisorganization.

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

The Pay and Accounts Office, common to both the Department of Commerce and theMinistry of Textiles, is responsible for the payment of claims, accounting of transactions andother related matters through the four Departmental Pay & Accounts Offices in Delhi, two inMumbai, two in Kolkata and two in Chennai. These Departmental Pay and Accounts Officesare 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 was set up under Section (4) of the Coffee Act, 1942. The Board is headedby a Chairman and functions from Bangalore. The Board administers four Regional CoffeeResearch Stations, a Coffee Research Institute, a number of Regional Field Stations andCoffee Demonstrations Farms. The primary functions of the Board include formulating andimplementing programmes and projects for growth and development of the coffee industry;promoting coffee consumption in India and exports in the international market; supportingresearch; extension and developmental activities for raising productivity; evolving pest anddisease resistant varieties; and prescribing and enforcing quality standards at all stages.

(ii) Rubber Board

The Rubber Board was set up under Section (4) of the Rubber Act, 1947. The Board is headedby a Chairman with head quarters at Kottayam. It has five Zonal Offices, thirty nine RegionalOffices, a number of Field Stations, Rubber Development Centers and Regional NurseriesThe Board is responsible for the development of the rubber industry by way of assisting andencouraging scientific, technical and economic research; supplying technical advice to rubbergrowers; training growers in improved methods of planting, cultivation and manuring andcollecting statistics from the owners of estates, dealers, manufacturers.



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(iii) Tea Board

The Tea Board was constituted as a Statutory Body on 1st

April, 1954 under Section (4) of theTea Act, 1953. The Board is headed by a Chairman with head office at Kolkata. As an apexbody for the tea industry in India, the Board has two Zonal Offices at Guwahati and Coonoor

and 13 Regional Offices spread over different parts of India, one Research Centre at Kurseong(Darjeeling) and three foreign offices in London, Moscow and Dubai. The primary functionsof the Board include rendering financial and technical assistance for cultivation, manufacture,marketing of tea; promoting tea exports; aiding research and developmental activities foraugmentation of tea production and improvement of tea quality; encouraging and assisting theunorganized small growers sector financially and technically and collecting & maintainingstatistical data and its publication for the benefit of growers, processors and exporters.

(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 Chairman, with headquarters atGuntur, Andhra Pradesh, and is responsible for the development of the tobacco industry. TheBoard also has a Directorate of Auctions at Bangalore. The primary functions of the Boardinclude regulating the production and curing of Virginia Tobacco; keeping a constant watchon the Virginia Tobacco market in India and abroad; ensuring fair and remunerative prices togrowers; maintaining and improving existing markets and developing new markets abroad bydevising appropriate marketing strategies.

(v) Spices Board

The Spices Board was constituted as a Statutory Body on 26th February, 1987 under Section(3) of the Spices Board Act, 1986. The Board is headed by a Chairman with its head office atKochi and is responsible for the development of cardamom industry and promoting the exportof all the 52 Spices listed in the Spices Board Act, 1986. The primary functions of the Boardinclude increasing the production and productivity of small and large cardamom;development, promotion and regulation of export of spices; assisting and encouraging studiesand research for improvement of processing, grading and packaging of spices; strivingtowards stabilization of prices of spices for export and upgrading quality for export.

(vi) Export Inspection Council (EIC)

The Export Inspection Council was set up as a Statutory Body on 1st January, 1964 underSection 3 of the Export (Quality Control and Inspection) Act, 1963 to ensure sounddevelopment of export trade of India through Quality Control and Inspection and for mattersconnected therewith. The Council is an advisory body to the Central Government, with itsoffice located at New Delhi and is headed by a Chairman. The Executive Head of the EIC isthe Director of Inspection & Quality Control. The Council is assisted in its functions by theExport Inspection Agencies (EIAs), which are field organizations located at Chennai, Delhi,Kochi, Kolkata and Mumbai and have state-of-art laboratories for quality certificationactivities. These Agencies have a network of thirty eight sub-offices and laboratories located



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at different ports or major industrial centres to back up the pre-shipment inspection andcertification activities.

(vii) Indian Institute of Foreign Trade (IIFT)

The Indian Institute of Foreign Trade was registered in May, 1963 under the SocietiesRegistration Act, 1860. The Institute, with its head office at New Delhi and one regionalbranch at Kolkata, is headed by a Director. The Institute has been conferred “DeemedUniversity” status and is engaged in the following activities:-

• Running academic courses leading to issue of degrees in International Business &Export Management;

• Training of personnel in international trade;

• Organizing research on issues in foreign trade, marketing research, area surveys,commodity surveys, market surveys; and

• Dissemination of information arising from its activities relating to research and marketstudies.

(viii) Indian Institute of Packaging (IIP)

The Indian Institute of Packaging was registered in May, 1966 under the SocietiesRegistration Act, 1860. The Institute, with its office located at Mumbai and branch offices atDelhi, Chennai, Kolkata and Hyderabad, is headed by a Director. The main function of theInstitute is to undertake research on raw materials for the packaging industry, organizetraining programmes on packaging technology and stimulate consciousness of the need forgood packaging.

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

The Marine Products Export Development Authority was set up as a Statutory Body in 1972under an Act of Parliament (No.13 of 1972). The Authority, with its headquarters at Kochiand field offices in all the Maritime States of India, is headed by a Chairman/Chairperson.The Authority is responsible for development of the marine industry with special focus onmarine exports. Besides, it has Trade Promotion Offices at Tokyo (Japan) and New York (USA).

(x) Agricultural and Processed Food Products Export Development Authority

(APEDA)

The Agricultural and Processed Food Products Export Development Authority was set up in1986 as a Statutory Body under an Act of Parliament of 1986. The Authority, with itsheadquarters at New Delhi, is headed by a Chairman. The Authority has five RegionalOffices at Guwahati, Hyderabad, Kolkata, Bangalore & Mumbai and is entrusted with the task of promoting agricultural exports, including the export of processed foods in value addedform. APEDA has also been entrusted with monitoring of export of 14 agricultural andprocessed food product groups listed in the Schedule to the APEDA Act. The Authorityextends assistance to its registered exporters for promoting export of agri and processed food



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products under its Schemes for Infrastructure Development, Market Development, QualityDevelopment, Research and Development, Transport Assistance and Special FloricultureRehabilitation Fund for sick floriculture units.

(D) Public Sector Undertakings (PSUs)

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

STC was set up on 18th May, 1956, primarily with a view to undertake trade with EastEuropean Countries and to supplement the efforts of private trade and industry in developingexports from the country. The core strength of STC lies in handling exports/ imports of bulk agro commodities. During past 4-5 years, STC has diversified into exports of steel rawmaterials, gold jewellery and imports of bullion, hydrocarbons, minerals, metals, fertilizers,petro-chemicals, etc. Achieving record breaking performances year-after-year, STC is todayable to structure and execute trade deals of any magnitude, as per the specific requirement of its customers.

STCL Ltd. is a wholly owned subsidiary of STC since 1999. The company developed from asolely cardamom trading corporation to become Spices Trading Corporation Ltd., in 1987.With globalization and opening of trade world over, Spices Trading Corporation Ltd. wasrenamed as STCL Ltd. STCL is involved in import, export and domestic trading of a variedrange of products, both agricultural as well as non-agricultural. STCL, headed by aChairman, is headquartered in Bangalore.

(ii) MMTC Limited

The MMTC Limited (Minerals and Metals Trading Corporation) created in 1963 as an

individual entity on separation from State Trading Corporation of India Ltd. has grown tobecome the largest trading Organization in India. In 1970, MMTC took over imports of fertilizer raw materials and finished fertilizers. Over the years import and exports of variousother items like steel, diamonds, bullion, etc. were progressively added to the portfolio of thecompany.

(iii) PEC Limited

The PEC Ltd (Project and Equipment Corporation of India) was carved out of the STC in1971-72 to take over the canalized business of STC’s railway equipment division, to diversifyinto turn-key projects especially outside India and to aid & assist in promotion of exports of

Indian engineering equipment. PEC became an independent company directly owned byGovernment of India w.e.f. 27.03.1991.

(iv) Export Credit Guarantee Corporation of India Ltd. (ECGC)

The Corporation was established in 1957 as the Export Risk Insurance Corporation of IndiaLtd. The ECGC is the premier organization in the country, which offers credit risk insurancecover to exporters, banks, etc. The primary objective of the Corporation is to promote the



13 | P a g e

country’s exports by covering the risk of export on credit. It provides (a) a range of insurancecovers to Indian exporters against the risk of non-realisation of export proceeds due tocommercial or political causes and (b) different types of guarantees to banks and otherfinancial institutions to enable them to extend credit facilities to exporters on liberal basis.

(v)

India Trade Promotion Organization (ITPO)

India Trade Promotion Organisation has been formed by merging erstwhile TradeDevelopment Authority (TDA) with Trade Fair Authority of India (TFAI) with effect from 1

st

January 1992. India Trade Promotion Organisation is the premier trade promotion agency of India and provides a broad spectrum of services to trade and industry so as to promote India’sexports.

(E) Export Promotion Councils (EPCs)

Presently, there are fourteen Export Promotion Councils under the administrative control of

the Department of Commerce. Names of these Councils are given below:

• Chemexcil

• CAPEXIL

• Pharmexcil

• Cashew Export Promotion Council

• Council for Leather Exports

• Engineering Export Promotion Council,

• Gems & Jewellery Export Promotion Council

• Project Exports Promotion Council of India (PEPC)

• Plastics Export Promotion Council

• Shellac Export Promotion Council• Sport Goods Export Promotion Council

• Export Promotion Council for EOUs & SEZ Units

• Indian Oil Seeds & Produce Exporters Association,

• Services Export Promotion Council

These Councils are registered as non-profit organizations under the Companies Act/ SocietiesRegistration Act. The Councils perform both advisory and executive functions. The role andfunctions of these Councils are guided by 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 effectivemechanism to maintain continuous dialogue with trade and industry in respect of majordevelopments in the field of International Trade. The Board was reconstituted on 16th July,2009 under the Chairmanship of Commerce & Industry Minister. The Board, inter-alia,



14 | P a g e

advises the Government on policy measures connected with the Foreign Trade Policy in orderto achieve the objectives of boosting India’s exports. The Board is required to meet at leastonce every quarter and make recommendations to Government on issues pertaining to itsterms of reference. The Board has the power to set up sub-committees and to co-opt experts tothese and to make recommendations on specific sectors and objectives.

(ii) Export Promotion Board (EPB)

The Export Promotion Board functions under the Chairmanship of the Cabinet Secretary toprovide policy and infrastructural support through greater coordination amongst concernedMinistries for boosting exports. Secretaries of Department of Commerce; Ministry of Finance; Department of Revenue; Department of Industrial Policy & Promotion; Ministry of Textiles; Department of Agriculture & Cooperation; Ministry of Civil Aviation and Ministryof Surface Transport represent their Ministries in the Board.

(iii) Inter State Trade Council

The Inter State Trade Council was set up on 24 th June, 2005 with a view to ensure acontinuous dialogue with State Governments and Union Territories which, inter-alia, advisesthe Government on measures for providing a healthy environment for international trade inthe States with a view to boost India’s exports. The Council is represented by Chief Ministersof the States or State Cabinet Ministers nominated by Chief Ministers, Lt. Governors orAdministrators 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 and Power and Chairman,Railway Board. It also co-opts the Chairman-cum-Managing Director of ECGC, ManagingDirector of EXIM Bank, Deputy Governor of Reserve Bank of India, Chairman of APEDA,Chairman of MPEDA and Presidents of CII, FICCI, FIEO, ASSOCHAM and ExportPromotion Council for EOUs/SEZs.

(G) Other Organizations

(i) Federation of Indian Export Organizations (FIEO)

The Federation of Indian Export Organizations is an apex body of various export promotionorganizations and institutions with its major regional offices at Delhi, Mumbai, Chennai andKolkata. It provides the content, direction and thrust to India’s global export effort. It alsofunctions as a primary servicing agency to provide integrated assistance to its members

comprising professional exporting firms holding recognition status granted by theGovernment, consultancy firms and service providers.

(ii) Indian Council of Arbitration (ICA)

The Indian Council of Arbitration, India’s premier Arbitral Institution, is a Society registeredunder the Societies Registration Act, 1860 operating on no profit basis, with its head office inNew Delhi and eight branches with a pan India network. The organization originally



15 | P a g e

established in 1965 promotes and administers the use of Alternative Dispute Resolutionmechanisms in commercial disputes, thereby expediting dispute resolution and encouraginggreater domestic and international commerce. The main objectives of the Council are topromote the knowledge and use of arbitration and provide arbitration facilities for amicableand 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 IndianJewellery, the Indian Diamond Institute was established as a Society in 1978 with its officelocated at Surat. The Institute is sponsored by the Department of Commerce and patronizedby the Gems and Jewellery Export Promotion Council. The Institute conducts variousdiploma and other courses related to diamond trade and industry. The Institute also hascertification services for diamonds, coloured stones and gold jewellery.

(iv)

Footwear Design & Development Institute (FDDI)

Footwear Design and Development Institute was set up in 1986 as a Society registered underthe Societies Act, 1860 for Infrastructure Development for the footwear industry and HumanResource Development. The Institute conducts wide range of long term and short termprogrammes in the area of Retail Management, Fashion, Footwear Design, Technology,Management, Fashion Merchandising, Marketing, Creative Designing & CAD/CAM, LeatherGoods & Accessories Design etc. FDDI established its new campus at Fursatganj, Rae Bareliwhich commenced academic programmes from September, 2008.

(v) National Centre for Trade Information (NCTI)

National Centre for Trade Information was set up in 1995 under the aegis of Ministry of Commerce & Industry with a view to create an institutional mechanism for collection anddissemination of trade data and improving information services to the business community,especially small and medium enterprises. NCTI is promoted by India Trade PromotionOrganization (ITPO) and National Informatics Centre (NIC). NCTI is the Operational TradePoint in India under the Trade Efficiency Programme of United Nations Conference on Trade& Development (UNCTAD) and is also the recognized Focal Point of Trade Analysis andInformation System (TRAINS) of UNCTAD Trade Point Development Centre (UNTPDC).

(vi) Price Stabilization Fund Trust

The Price Stabilization Fund Scheme (PSF) was launched by Government of India in April2003 against the backdrop of decline in international and domestic prices of tea, coffee,rubber, and tobacco causing distress to primary growers. The objective of the Scheme is tosafeguard the interests of the growers of these commodities and provide financial relief whenprices fall below a specified level without resorting to the practice of procurement operationsby the Government agencies. The Scheme is being operationalized through the PriceStabilization Fund Trust.



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A Personal Accident Insurance Scheme is also under implementation by PSFT throughNational Insurance Corporation Ltd., which provides insurance cover to the growers in thesectors of tea, coffee, rubber, tobacco and spices (chillies, cardamom, ginger, turmeric andpepper) having plantations up to 4 hectares. The Scheme also covers all plantation workersworking on these plantations regardless of the size of holdings. The insurance cover is up to

Rs. 1.00 lakh per person. The premium of Rs.17/- is shared between the beneficiary and thePSF Trust in the ratio 50:50. The target coverage is 57.17 lakh growers and workers.

III. Major Schemes implemented by the Department under the Plan &

Non- Plan Schemes

The major schemes being implemented by the Department are:

• Marketing Development Assistance (MDA)

• Duty Drawback Scheme

• Assistance to States for Development of Export Infrastructure and Allied Activities

(ASIDE)• National Export Insurance Account (NEIA)

• Investment in ECGC

• Export Inspection Council (EIC)

• Market Access Initiative (MAI)

• Indian Institute of Foreign Trade (IIFT)

• Indian Institute of Packaging (IIP)

• Centre for WTO Studies

• Indian Institute of Plantation Management (IIPM)

• Modernisation of DGFT

• Modernisation of DGCI&S• Computerisation DGS&D

• APEDA

• MPEDA

• Schemes under Tea Board

• Schemes under Coffee Board

• Schemes under Rubber Board

• Schemes under Spices Board

IV. Mandate of the Department

The mandate of the Department of Commerce is the regulation, development and promotionof India’s international trade and commerce through formulation of appropriate internationaltrade and commercial policy and implementation of the various provisions thereof. The work allocated to Department of Commerce in accordance with the Allocation of Business Rules,1961 is given below:



17 | P a g e

A. International Trade

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

• International Agencies connected with Trade Policy (eg. 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 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 purposeand including - STC Ltd. and its subsidiary STCL Limited; (excluding Handicrafts and

Handlooms Export Corporation and Central Cottage Industries Corporation; theTea Trading Corporation of India Limited which are now not its subsidiaries);

Projects & Equipment Corporation of India Limited (PEC); India Trade Promotion Organization and its subsidiaries; and

Minerals and Metals Trading Corporation (MMTC) and its subsidiaries.• Production, distribution (for domestic consumption and exports) and development of

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

• Processing and distribution for domestic consumption and exports of Instant Tea andInstant Coffee:-(a) Tea Board.(b) Coffee Board.(c) Rubber Board.(d) Spices Board.(e) Tobacco Board.

D. Management of Certain Services

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

• 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.



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• Agricultural and Processed Food Products Export Development Authority.

I. Miscellaneous

• Purchase and inspection of stores for Central Government Ministries/ Departments

including their attached and subordinate offices and Union Territories, other than theitems of purchase and inspection of stores which are delegated to other authorities bygeneral or special order.



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CHAPTER – II

FINANCIAL OUTLAYS AND QUANTIFIABLE DELIVERABLES-

PHYSICAL OUTPUTS & FINAL OUTCOMES

The basic thrust of the various programmes/schemes being implemented by the Departmentof Commerce is to promote India’s exports and trade by facilitating the creation of favourable environment for this purpose. The objectives and nature of activities undertakenunder the most important scheme of the Department (going by the financial allocation in ayear) i.e. “Assistance to States for Development of Export Infrastructure and AlliedActivities” (ASIDE) would illustrate the case in clear terms. The major objective of thescheme is to ensure participation of the states in a major way in the export effort byproviding assistance to the states/UTs for creating appropriate infrastructure for developmentand growth of exports. The major activities to be financed under the scheme include creation

of new Export Promotion Industrial Parks/Zones including Special Economic Zones (SEZs)etc.; equity participation in infrastructure projects; development of complimentaryinfrastructure such as roads connecting the production centres with ports; setting up of inlandcontainer depots and container freights stations; stabilizing power supply through additionaltransformers and islanding of export production centres; assistance for setting up commonaffluent plants; assistance for projects of national and regional importance etc. All theseactivities are expected to remove constraints, if any, and help in providing the requiredinfrastructure and support services needed for increased production and other trade relatedactivities. Similarly, the basic objectives of the other major schemes like MarketingDevelopment Assistance (MDA) and Market Access Initiative (MAI), as the names suggest,are intended to provide financial assistance for activities pertaining to development of

marketing infrastructure and access in various markets. The quantifiable deliverables of theactivities under such schemes can be quantified and measured only in indirect way in termsof final outcomes. And the final outcome in this case is the increased volume in the country’sexport and trade. Hence, the final quantifiable deliverables are the exports and importscarried out during a particular year. The performance of the programmes/ schemes can beevaluated in terms of the actual achievement viz-a-viz the targets fixed for exports.

The Foreign Trade Policy (FTP) 2004-09, announced by the Government in August 2004,had spelt out a bold vision of doubling India’s percentage share of global merchandise tradewithin the next five years and making exports growth an engine for generating additionaleconomic activity and employment generation with special focus on rural and semi-urban

areas thus making economic growth process an inclusive one. The Indian exports witnessedan unprecedented and consistently high growth during the five year period from 2004-05 to2008-09. During this period, the exports grew at an average annual growth rate of 23.9%;increasing from US$ 83.5 billion in 2004-05 to US$ 185.3 billion in 2008-09.

Against the backdrop of a fall in growth of India’s exports due to global slowdown in 2008-09, Foreign Trade Policy (FTP) 2009-14 was announced on 27 th August, 2009. The shortterm objective of FTP (2009-14) is to arrest and reverse the declining trend of exports and to



21 | P a g e

provide additional support especially to those sectors which have been hit badly by recessionin the developed world. The Policy envisages an annual export growth of 15% with an annualexport target of US$ 200 billion by March 2011 and to come back on the high export growthpath of around 25% per annum in the remaining three years of the Foreign Trade Policy i.e.up to 2014. The long term policy objective for the Government is to double India’s share in

global trade by 2020.

For the year 2009-10, an outlay of Rs.3652 crore was approved for the various Plan and Non-Plan schemes of the Department. Out of this, Plan outlay was Rs.1560 crore. The provisionalPlan Expenditure (upto 31.12.2009) for the year 2009-10 is estimated at Rs.1072.85 crore. Asagainst this, an outlay of Rs 3980.05 crore has been approved for the year 2010-11;consisting of Plan outlay of Rs.1680 crore and Non-Plan outlay of Rs.2300.05 crore. Asexport promotion and market development is the core of the activities of the Department,assistance in the form of export subsidy, grants and interest subsidy to banks at Rs.1833.55crore constitutes the bulk of the Non-Plan expenditure. On the Plan side, the Centrally-sponsored scheme of Assistance to States for the Development of Export Related

Infrastructure and Allied Activities (ASIDE) constitutes the single most important activityaccounting for an outlay of Rs. 662.98 crore. The scheme-wise details of the financialallocations and the quantifiable deliverables/outputs for the year 2010-11, wherever possible,are given below in the tabular form.



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No. Name of Scheme Objective/Outcome Outlay 2010-11 (Rs. crore) Quantifiable

deliverables/ PhysicalOutputs

Projected

Outcomes

Processes/

Timelines

Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7 8

6 Investment in ECGC To finance increase in equity of ECGCappropriately to meet the capital adequacy

norms for providing adequate insurance

cover to Indian exporters as exports grow.

0.01 To provide additionalinsurance cover

2010-11

7 National ExportInsurance Account

To increase the corpus of NEIA to ensure theavailability of credit risk cover for projects

and other high value exports.

150.00 To provide credit risk cover to exports to high

risk countries and also toprovide additional credit

risk support (short-term

cover) to Exports Industry(MSME Sector) and Banksin view of global financial

crisis.

Increase in projectexports and exports

by MSME sectorand a few other

sectors like Textiles,

Gems & Jewellery,Leather,Engineering

products, Carpets,Project goods, Autocomponents and

Chemicals throughenhanced insurance

and guaranteefacilities.

.

8. Agricultural andProcessed Food

Products ExportDevelopment Authority(APEDA)

Providing assistance for developmentschemes of APEDA for promotion of exportof agricultural & processed food items.

150.00 2.00 Exports: Rs. 32815 crore

(i) Scheme for

InfrastructureDevelopment

Upgrading & setting up of post harvest

handling facilities so as to reduce losses dueto spoilage & ensure quality products.Dev. of market through a number of

activities, packaging standards, publicity,participation in fairs.

- Common Pack house-14

- Specialized transportunits-20

- Setting up Integrated

Pack Houses - 25- Common VHT Projects-

31

- Setting up Mechanizedhandling facilities -10

Total- 121

Increase in export of

agriculture andprocessed products



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No. Name of Scheme Objective/Outcome Outlay 2010-11 (Rs. crore) Quantifiable

deliverables/ Physical

Outputs

Projected

Outcomes

Processes/

Timelines

Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7 8

(ii) Quality Development Improvement of quality of products and

promoting exports of value added products.

Quality Control

Systems/HACCP/ISO/TQM-30

Lab upgradation andfinancial assistance toexporters- 28

Pesticide residue-10

Total - 68

- Food safety

system toexporters

- Lab up gradation- Pesticide residue

programme.

2010-11

(iii) Market Development To promote quality packaging and help

exporters formulate export markingstrategies.

-Participation in

fairs/BSM-17Providing financial

assistance to exporters

under various components-252

Total - 269 (iv) Research &Development

Improve the quality of produce throughproper research and development:

R&D support toorganizations -10

Improved quality of product

2010-11

(v) Transport Assistance To help exports overcome the disadvantages

of un completive freight costs.

Providing finance

assistance to 250 exporters.

Increase

competitiveness of agro exports leadingto higher exports.

9. Marine Product ExportDevelopment Authority(MPEDA)

MPEDA is responsible for promotion of export of marine products from India. Under

the scheme financial assistance is providedfor the development schemes of MPEDA.

90.00 7.00 Non-Padmin

(i) Capture Fisheries - Promotion of Tuna fishing.

- Better preservation to catch.- Engagement of technical consultants

- Conservation of marine resources- Establishment expenses

- Conversion of 55

vessels to Tuna longliners

- Upgradation of 250boats with insulated / refrigerated fish hold /

RSW system.

Increase in exports

of marine products.

2010-11



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No. Name of Scheme Objective/Outcome Outlay 2010-11 (Rs. crore) Quantifiabledeliverables/ Physical

Outputs

ProjectedOutcomes

Processes/ Timelines

Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

(ii) Culture Fisheries - Development of hatcheries

- Shrimp health management- Promotion of Ornamental fish breeding

for exports

- Establishment of Aquaculture- Assistance to farmers

- GIS mapping of shrimp / scampi

farms

- Setting up 2 new

hatcheries- Upgrading 10 hatcheries- Setting up 56

ornamental fishbreeding units andmarketing societies.

- Setting up 5 PCR Labs& 16 Effluent Treatment

System.

- Development of 240 haof new farms and 500 ha

padasekharams and 250ha under organicfarming.

- 7 demonstration

programmes for sea bassand 3 for mussel.

- Assistance to 140

societies.- Organization of a total

of 475 farmers’ societies

by NaCSA.

Increase in export of

marine products.

2010-11

(iii)Processinginfrastructure and value

addition

- Assistance for Exporters for valueaddition

- Cold Chain for seafood industry- Assistance for chill fish exporters/Dried

fish. -Development – Establishment

- 2 beneficiaries

- 25 Beneficiaries inc 10Ice Plants

- 3 beneficiaries

Increase the share of value added items

2010-11

(iv) Quality Control - MPEDA Lab at Kochi, Bhimavaram,Nellore & Bhubaneshwar

- Quality Upgradation

- Quality System Management- Quality Control / Lab Division- Upgradation of fishing harbours

- Extension education programme.

(NETFISH)- Assistance to upgradation of seafood

plants to EU standards.

- 1455 nos. of samples

under NRCP and 1508

under other tests.- Training 19

Beneficiaries for qualityupgradation

- 8 Training programmes- 3 Inspection teams on

QSM

- 4 harbours upgradation- 2400 programmes

-9 beneficiaries

Improvement inquality trading toincrease exports.



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No. Name of Scheme Objective/Outcome Outlay 2010-11 (Rs. crore) Quantifiabledeliverables/ PhysicalOutputs

ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

(v) Market Promotion - Brand Building- Publicity- Participation in International fairs

- Contribution to Infofish- IT & Trade promotion- Market Assistance

- 20 nos. of variousPublicity literatures,brochures to be produced.

- Releasing 25 external/75internal ads inmagazines to promote

logo.- Participation in 10

domestic/6 international

fairs

- Insurance cover to10000 workers in pre-processing/processingunits

- Market access for IndianOrnamental fish throughdevelopmental

assistance to 15 units

Promotion of exports byIncreasing share in

existing majoroverseas market andexploitation of new

overseas markets.

2010-11

(vi) Research &Development

- Assistance to RGCA - Technology transfertraining programmes for

farmers/fishermen- Development of

hatchery and grow out

technology for 3 major

marine fin fish species.- Standardization of

Artemia farming

techniques in Indianconditions

- Production of all male

scampi seeds on

experimental basis.- Development of appropriate technologyfor Tilapia.

- Pilot scale production of SPF seeds of P-monodon and SPF

brood stock.

Increasing theexport production of

Commerciallyimportant fin andshell fishes.

Other Schemes of Foreign Trade Export Promotion

10 Director General of

Commercial

Intelligence andStatistics (DGCI&S)

- To publish trade statistics

- To maintain a commercial library

19.88 Admin

expens

Export promotionQuality control and

Inspection



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ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

11 Export InspectionCouncil (EIC)

To develop export trade through qualitycontrol and pre-shipment inspection.

7.00 - Up gradation of hardware/software

- office automation

- Lab equipment- Implementation of

Residue MonitoringPlan (1000 samples)

- Training- 30

programmes of 500participants

- Recognitions,

Proficiency Testing,Capacity Building

- Construction of EIA -Delhi, Mumbai & suboffices

Improvement inquality andenhancement in

exports.

2010-11

12 Market Access Initiative(MAI)

To devise & evolve specific strategy for

market and products specific studies/surveys.

125.00 Assistance for conducting

10 market studies/surveys

and assistance to E.POrganizations/T.P.Organizations for 100

trade promotion activitieslike marketing projectsabroad, capacity building,

support for statutorycompliances etc.

To promote Indian

exports on sustained

basis

2010-11

13 Assistance toInstitutions:IIFT

IIPIIPM

- For Kolkata centre of Indian Institute of Foreign Trade (IIFT)

- Indian Institute of Packaging (IIP)

- IIPM

Total

8.00

2.00

0.00

10.00

Upgradation of facilities 2010-11

14 Modernization and

Upgradation

- Upgradation of computers in the DGFT

- Construction of office building for the

DGCI&S at Kolkata.

Total

5.00

5.00

10.00

No quantification can bemade.- Construction of new

building & modernization

of DGCI&S, Kolkata

Upgradation of Hardware/Software/ Network &

Operations

2010-11

15 Contributionto international

Organization &Conferences

World Trade Organization, International

Coffee Organization, International PepperCommunity, International Trade Centre,Common Fund for Commodities etc.

20.00 Interna

contribWTO bodies

16 Scheme for Central

Assistance to States forthe Development of Export related

infrastructure and otherallied activities

-To involve the states in the export effort byproviding incentives linked assistance to the

state governments.-To create appropriate infrastructure forexport growth.

662.98 Improvement ininfrastructure.

Contrigrowth

exportachievtargets



28 | P a g e


ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

17 Others To meet the Plan & Non-Plan expenditureof various other schemes, viz.

-International conferences and the

expenditure on foreign delegation etc.

1.62

1.00

To mNon-Pexpen

- Footwear Design and DevelopmentInstitute

3.00 To mPlan

expen

- Centre for WTO Studies

-To develop the Centre as an expert

body- for providing inputs on various

trade policy issues,

- to provide institutional mechanism forcoordinating domestic stakeholders’

consultations

- to develop the Centre for trainingactivities

2.00 The physical activities cannot be quantified as the

outlay is need based

Commodity Boards:

18 Tea Board Promotion of production and exports of teaby providing financial assistance to various

schemes of Tea Board.

145.00 27.00 Production: 1027 Millionkgs

Exports : 210 Millionkgs

Increase inproduction and

exports of tea

Non provis

the ad

i)Plantation DevelopmentScheme

Productivity improvement throughreplanting, rejuvenation pruning & irrigationfacilities etc.

a) New Planting-1000 ha) Replanting 5000 ha

c) Rejuvenation 1000 ha

d) Assisting 60 Self-help

groups.e)Irrigation & drainage-

1700ha

Increasedproduction andexport after tea

bushes become

productive.

2010-11

ii) Quality Upgradation

scheme

To provide financial assistance to the needy

tea gardens/factories for augmenting theprocessing capacity etc.

118 – tea processing units

to be covered

Orthodox Tea production –80 Million kg

To enhance the

quality and quantityof tea export.

2010-11

iii) Market PromotionScheme

To assist tea producers/exporters for boostingexports through various measures such as

fairs/exhibitions etc.

Not quantifiable Increase in exports 2007-12

iv) Research &Development

To assist research projects for improvingproductivity, value addition and product

diversification etc.

Not quantifiable 2007-12



29 | P a g e


ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

v) Human ResourceDevelopment (no. of beneficiaries)

To induct professionalism in plantationmanagement, labour productivity, skillimprovement, etc.

-Educational stipend/ scholarship for 5000students.

- Drinking water facility -1400

-Sanitation facility-2500- Capital grants to 10schools and colleges.

-Building grants tohospitals/clinics -5-Bharat Scouts & Guides

Activities – 1100- Grant towards medical

equipment & ambulances -5

Increase inproductivity of labour.

19 Rubber Board - for promotion, development andencouraging scientific, technical and

economic research, supply technical advice

to rubber growers;- To train growers in improved methods of planting, cultivation, managing and

collection of statistics.

150.00 20.00 Production: 8,53,000tonnes

-Export of 50,000 tonnes

2010-11The Nprovis

the ad

the implemCentra

schem

i) Rubber Plantation

Development Scheme

To increase natural rubber production,

productivity enhancement, promotion of

extension activities etc.

- Replanting 4000 ha

- New Plantation 1000 ha

- Tribal Settlement 250 ha-Input supply & priceconcession 21500 ha.

-Rubber Agro mgmt units4360 nos- Farmer education

programmes & fieldtraining - 10000

Increase in rubber

production through

expansion of cultivation,replanting

uneconomicholdings &promoting the

adoption of productivity

enhancingagronomic practices.

2007-12

ii. Rubber Research To develop agro-technology through research

for increasing NR production by enhancingproductivity and disease control measures,maintenance of ongoing field experiments for

developing HYVs.

Increased

availability of grower friendlyagronomic practices

to enhanceproductivity, reducethe incidence of

diseases etc.Enhancedknowledge on

scientific aspects

related to cropmanagement,improvement,

physiology

2007-12



30 | P a g e


ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

iii. Processing QualityUpgradation & ProductDevelopment

To strengthen rubber processing sector toachieve international competitiveness.

23 TSR factories and13 rubber-woodprocessing units to be

upgraded.

Enhanced efficiencyof rubber and rubberwood processing

sector

iv. Market Development(including exports of NR)

-Export of 50000 Tonnes-Participation in 10

national/ international fairs- Export finance to NR

exporters (loan)-15 NosStrengthening Co-operative sector in

marketing of rubber(grant/loan)-19 Nos-Domestic promotion of

Rubberwood -15 Nos.

Improvement inmarketing rubber

and rubber wood.Enhanced

acceptance of Indianrubber and rubberwood based

products in theinternational market.

2007-12

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

of infrastructure

-Training 3500 workers-Training 6520 rubber

tappers- 24245 plantation workersto be covered under

welfare scheme.

A well-trainedclientele in the

rubber sector.Improved livingconditions for

rubber plantation

workers.

2007-12

vi) Rubber Developmentin NE Region

Rubber plantation development, R&D,quality up-gradation etc.

New planting - 2500 haIntegrated village levelrubber development; Input

Supply and Priceconcession– 4929 ha

Quality planting materialgeneration-5 lakh nosProcessing and quality

Upgradation-198beneficiary units

HRD – 13950 beneficiaries

Increase in NRproduction andproductivity in the

NE region.Settlement of tribals

through block planting of rubber.Overall

development of theNE region.

2007-12

20 Coffee Board - To increase production and productivity of Coffee and promote exports.- Ensuring overall development of Coffee

sector.

80.00 22.00Production: 3.00 lakh MTExports : 2.25 lakh MT

Overalldevelopment of Coffee sector and

increase in exports.

2007-12 The for adm

i. Development Support 1. Replantation/Rejuvenation2. Quality Upgradation

3. Interest Subsidy4. Water Augmentation

Traditional Area :a) Replantation - 3000 ha

b) WAS, QUP,& PA –3760 Units

Coffee Development in

NER – 500 haCoffee Development inNTA – 2500 ha

Welfare support to

Labourers and Growers -3000 Nos

2010-11



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ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7 8

ii. Market Development To enhance domestic coffee consumptionand carry out market research andintelligence

Domestic ConsumptionTarget: 1.08 lakh MT (P)

2010-11

iii. Risk Management To put in place risk management tools; toprovide protection to growers from weatherrelated risks.

- No. of small growersproposed to cover with <10ha. - 15000

- Total area Proposedto cover - 30000 ha.

with < 10 ha

2010-11

iv. R&D for sustainablecoffee production

To achieve sustainability in Indian coffeeproduction through R&D support, Transfer of

Technology through Extension Centresv. Export Promotion of coffee

To enhance market share of value added andhigh value coffees in key overseas markets toaugment export earnings

Export Target (P)Qty : 2.25 lakh MT

2010-11

vi. Support for Coffee

Processing

To achieve value addition in coffee by

supporting the processing activities and to

support small and medium entrepreneurs forsetting up quality coffee processing units.

Setting up of

Coffee Processing - 30

nos.

2010-11

21 Spices Board - To increase the production and productivity

of spices crop & its exports.- To assist Govt. in the development of national quality standards on spices

85.00 4.00 Exports: 4,50,000 MT Increased

production &exports of spices,post harvest &

quality improvement

The n

for ad& implem

Centra

i. Export OrientedProduction

Production of good quality planting material,Export of Spices

Small cardamom - Irrigation & land

development (1300 ha.)- Rain water harvesting

(70 Nos.)-Improved curing devices

(70 Nos.)

Large cardamom-

Rain water harvesting(65 Nos.)

-Improved curing devices(75 Nos.)

North Eastern Region -Large Cardamom- NewPlanting- 350 ha.-Pepper planting- 190ha

- Extension advisoryservices,18000 visits, 2000meetings

- Lakadong turmeric –

New Planting -940 haOrganic Ginger- New

Planting -850 ha

-Polythene/Silpaulin sheets(8500 Nos.)



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ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

ii. Quality improvementAnalyzing 45000 samples.

Provide analyticalservices withchanging quality

parameters andstandards

2010-11

iii. HRD & Works Training 10000 persons Fine tune knowledge

base in view of changing business

environment

2010-11

iv. Special Purpose Fundfor Rejuvenation/

Replanting of Cardamom

Small Cardamom-Replanting- 2500 ha

-Rejuvenation-1000 h aLarge Cardamom-Replanting- 800 ha

-Rejuvenation-700 ha

2010-13

v. Export Development

and Promotion of Spices

- Adoption of hitech (10

Nos.)-Sending business samples

abroad-30 no.

Tech and processupgradation-20 no.-Setting up of Sterilization

unit – 2 no.-Quality Certification- 8nos.

-Setting up of in-house lab-15 nos.

-Printing brochures (10Nos.)

- 2010-13

vi. Export Oriented

Research

Develop high

production and postharvest technologies

vii. Replanting andrejuvenation of pepper in

Wynad district of Keralaand NE region

Increase Production Exportable surplus 2010-15

22. Cashew EPC - -

23. Other Schemes of

Plantation

Crop Insurance 0.01

Price Stabilization Fund - For the benefit of growers of tea, coffee,rubber and tobacco- To provide relief to the growers when the

prices of the Commodities fall below aspecified level.

0.05 Assistance to farmers..



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ProjectedOutcomes


Rema

Plan Non Plan IEBR

1 2 3 4 5 6 7

24 Other GeneralEconomic Services

Settlement of d ues on exports to Cuba

Supplies and Disposal To finalize Rate Contracts for Common user

items, procurement, inspection, shipment andclearance of stores. The Plan provision is forestablishment of total e-procurement

solutions.

Non-P

provisadmin

25. DGS&D 5.00 74.27

Grand total 1680.00 2300.05

(P) = Provisional Estimates



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CHAPTER III

REFORM MEASURES AND POLICY INITIATIVES

Policy making is a dynamic and continuous process involving necessary periodic interventionswith a view to achieving the stated objectives and to fulfill the desired goals. Sustainedaccelerated growth of exports and trade is the primary goal being followed by the Departmentof Commerce. In consonance with the Government’s vision of making India a major player inthe world trade, the Foreign Trade Policy (FTP) is announced every five years that provides thebasic policy framework of translating this vision into specific strategies, goals and targets. Theobjectives of the Foreign Trade Policy (FTP), 2004-09 was doubling of India’s share in globaltrade in the next five years and making trade an effective instrument of economic growth bygiving a thrust to employment generation. The Policy, with clearly enunciated objectives andstrategies and necessary initiatives taken by the Government during the last five years, has beenvery effective in putting India’s exports on a higher growth trajectory. The Indian exports grew

from US$ 83.5 billion in 2004-05 to US$ 185.3 billion in 2008-09, registering an averageannual growth rate of 24%. As far as giving special thrust to employment generation isconcerned, sectors with significant export potential coupled with employment generation insemi-urban and rural areas were identified and specific sectoral strategies were prepared.

The Foreign Trade Policy (FTP), 2009-14 was announced by the Government on 27th August,2009. The new Policy was unveiled in the backdrop of unprecedented economic slow-downand one of the most severe global recessions in the post-war period that affected countriesacross the globe in varying degrees. The short term objective of FTP (2009-14) is to arrest andreverse the declining trend of exports and to provide additional support especially to thosesectors which have been hit badly by recession in the developed world. The Policy also aims to

achieve an annual export growth of 15% with an annual export target of US$ 200 billion byMarch, 2011.

The medium/long term objectives of the Policy include:

(i) Achieving an export growth of about 25% per annum in the remaining three years of the FTP (2009-14).

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

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



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Box 3.1

Highlights of the Foreign Trade Policy (2009-14)

• 26 new markets have been added under Focus Market Scheme. These include 16 newmarkets in Latin America and 10 in Asia-Oceania.

• The incentive available under Focus Market Scheme (FMS) has been raised from 2.5%

to 3%.• The incentive available under Focus Product Scheme (FPS) has been raised from

1.25% to 2%.

• 26 new markets added under FMS; FPS and Market Linked Focus Product Scheme(MLFPS) expanded to include a large number of products and markets.

• FPS benefit allowed to “Green Technology Products” and products originating fromNorth-East.

• Duty Entitlement Passbook (DEPB) Scheme is extended beyond 31.12.2009 till31.12.2010.

• Interest subvention of 2% for pre-shipment credit for 7 specified sectors has beenextended till 31.03.2010.

• Income Tax exemption to 100% EOU and to STPI units under Section 10B and 10A of Income Tax Act has been extended for the financial year 2010-11.

• To aid technological upgradation of our export sector, EPCG Scheme at Zero Duty and1% duty credit scrip for status holders have been introduced.

• Export obligation on import of spares, moulds etc. under EPCG Scheme has beenreduced to 50% of the normal specific export obligation.

• The adjustment assistance scheme initiated in December, 2008 to provide enhanced

ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010.

• To neutralize duty incidence on Jewellery exports, Duty Drawback rates on suchexports notified by Department of Revenue.

• Leather sector shall be allowed re-export of unsold imported raw hides and skins andsemi-finished leather from public bonded ware houses, subject to payment of 50% of the applicable export duty.

• EOUs have been allowed to sell products manufactured by them in DTA upto a limitof 90% instead of existing 75%, without changing the criteria of “similar goods’,within the overall entitlement of 50% for DTA sale.

• To encourage Value Added Manufactured export, a minimum 15% value addition onimported inputs under Advance Authorisation Scheme has now been prescribed.

• A large number of measures undertaken to reduce transaction cost for exportersinclude abolition of application fee on all incentive schemes; facilitating e-commercefor duty neutralisation schemes etc.



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Subsequent to announcements made in FTP (2009-14), short term sectoral performance reviewof the exporting sectors was carried out and additional measures were extended in January,2010 to sectors still showing significant decline in exports. Some of these measures are:

• 112 new products added under FPS at 8 digit level;

• 113 new products at 8 digit level given higher benefit @ 5% of FOB value of exportsunder special FPS;

• 1837 new products added under Market Linked Focus Product Scheme (MLFPS) at 8digit level;

• Two new major markets; viz. China and Japan, with which we have major trade deficit,have been added under MLFPS;

• New products, viz. sesame seeds and minor coconut products added under VisheshKrishi and Gram Udyog Yojna (VKGUY);

• A new market viz. Timor Leste added under FMS.

Some of the major policy initiatives undertaken by the Department during the year are givenbelow.

I. SEZ Policy: A Major Initiative in Public Private Partnership

The Special Economic Zones Policy was announced in April 2000 with the objective of makingthe Special Economic Zones an engine for economic growth, supported by qualityinfrastructure and an attractive fiscal package both at the Central and State level with a singlewindow clearance.

To instill confidence in investors and signal the Government’s commitment to a stable SEZpolicy regime and with a view to impart stability to the SEZ regime thereby generating greatereconomic activity and employment through the establishment of SEZs, a comprehensiveSpecial Economic Zones Act, 2005, was passed by Parliament in May, 2005 and received

Presidential assent on the 23rd of June, 2005. The SEZ Act, 2005, supported by SEZ Rules,came into effect on 10th February, 2006, providing for drastic simplification of procedures andfor single window clearance on matters relating to central as well as State governments. As aresult of this Act and Rules coming into force, it was envisaged that the SEZs would attract alarge flow of foreign and domestic investment in infrastructure and productive capacity leadingto generation of additional economic activity and creation of employment opportunities.

The main objectives of the Act 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 and development of infrastructure facilities.

The following important amendments have been made to the SEZ Rules, 2006:

• Prescribing minimum built up area for Bio-technology & Gem & Jewellery Sectors;

• Prescribing minimum processing area for Free Trade Warehousing Zone (FTWZ);

• Inclusion of specific provisions regarding grant of in-principle approval and itsextension;

• Providing for a lease period of not less than five years as against the earlier provision of lease period being co-terminus with the validity of Letter of Approval;



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• Stipulating the Upper limit of the area required for multi product SEZs at 5000 hectares,with the State Governments having the option to prescribe a lower limit;

• Revising the minimum processing area uniformly at 50% for multi- product SEZs aswell as sector specific SEZs;

• Housing facilities to be provided to the SEZ employees by the developer;

• Type of land to be mentioned in the application form of SEZ;

• Reimbursement of duty in lieu of drawback for supply of goods to SEZ developers

against Indian rupees;• Term “vacant land” defined for the purpose of SEZs;

• Clubbing of contiguous existing notified Special Economic Zones notwithstanding thatthe total area of resultant Special Economic Zones exceeds 5000 hectares

• A number of other amendments effected o delegate powers and to simplify theprocedure;

• SEZ Authority Rules, 2009 have been made for the smooth functioning of zones and theSEZ Authority set up accordingly.

After the coming into force of the SEZ Act, 2005 on 10th February 2006, 573 formal approvalshave been granted for setting up of Special Economic Zones, out of which 346 SEZs have been

notified and are in various stages of operation. The fact that the approved SEZs are spread over20 States and 3 Union Territories indicates that these are not concentrated in any particularregion. The total land area involved in the 573 formally approved SEZs and 147 in-principleapprovals is around 197945 Ha. The total area for the notified SEZs would not be more than0.014% of the total land area of India.

SEZs in India provide direct employment to over 4.90 lakh persons (as on 31st December,2009). The Special Economic Zones notified under the SEZ Act, 2005 have already made aninvestment of Rs. 124349.54 crore in the very short span of time since the coming into force of the SEZ Act in February, 2006. A total of 101 SEZs are already exporting. The exports in thecurrent year i.e 2009-10 from the SEZs have been to the tune of Rs. 151785 crore (as on 31st

December, 2009).

II. National Export Insurance Account (NEIA)

A separate Fund with an approved corpus of Rs.2,000 crore called the National ExportInsurance Account (NEIA) was set up in 2006 , out of which Rs.546 crores have been fundedby the Government so far. The present corpus of NEIA is Rs.646.89 crore (including premiumand interest accrued). During the year 2008-09, Rs.150 crores has been released to NEIA byGovernment of India.

The objective of NEIA is to promote project exports from India, which may not take place but

for the support of a credit risk insurance cover which the ECGC is not in a position to providebecause of its own underwriting capacity. The objectives of NEIA were expanded by theGovernment in December, 2008, in view of the Global Financial Crisis, to provide for shortterm cover also. NEIA funds upto Rs.350 crores were allowed to be used for the financial years2008-09 and 2009-10 to provide the following benefits to the exporters:

• The ECGC cover for MSMEs to be enhanced to 95%.



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• For MSMEs there would be no restriction on sectors while for non-MSMEs the supportwould be limited to Textiles (including handicrafts and handlooms), gems and jewellery,leather, engineering products, carpets, project goods, auto components and chemicals.

• The scheme would be available up to 31st March, 2010 and would be reviewedthereafter. For all policies sanctioned up to 31st March, 2010, the claims could beprocessed in 2009-10 and 2010-11.

• The increase of insurance risk cover to banks from 75% to 85% would be limited to

MSME exporters only.

III. Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme is a Plan Scheme formulated to act as a catalyst topromote 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 allthe stake holders in the year 2006 and the revised Scheme was launched with effect fromJanuary, 2007. The revised Scheme embodies enhancement of scope of the Scheme, increase inthe number of eligible agencies and increase in scale of assistance. The scheme is beingcontinued in the Eleventh Plan with approved allocation of Rs.550 crores.

Under the scheme, assistance is extended to the Departments of Central Government andorganizations of Central/State Government, Export Promotion Councils, Registered TradePromotion organizations, Commodity Boards, Recognized Apex Trade Bodies, RecognizedIndustrial Clusters and individual Exporters for product registration and testing charges forengineering products abroad, Indian Missions, National Level institutions like Indian Institutesof Technology (IITs), Indian Institutes of Management (IIMs), National Institute of FashionTechnology (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.

To further enable the Indian Missions abroad for better coordination, synergizing andfacilitating our export promotion activities, recently a ‘Challenge Fund’ has been set up underthe Market Access Initiative (MAI) scheme. Under Challenge Fund individual Missions would‘bid’ for support from the fund for financing specific export promotion projects dovetailed byplanned market development and market penetration activities by submitting innovative exportpromotion project proposals. Priority would be given for focused, specific projects withquantifiable/tangible results.

IV. Marketing Development Assistance (MDA) Scheme

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

The Non-Plan scheme supports the following activities:

(i) Assist exporters for their participation in approved EPC/Trade Promotion Organizationsled export promotion events abroad



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(ii) Assist Export Promotion Council (EPCs) to undertake export promotion activities fortheir product(s) and commodities.

(iii) Assist approved organizations/ trade bodies in undertaking exclusive nonrecurringinnovative 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.

V. 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, lowvalue addition, lack of strong buildup of ‘Brand India’ and volatility of international demandand prices are the major constraints facing the sector. Some of the major initiatives undertakenin this sector during the year to promote this sector include:

A. Rubber Board

• Annual Mass Contact Campaign Programme: Annual Mass Contact CampaignProgramme for the year 2009 was conducted from June 8 to July 24, 2009 with focus onthe theme “Low Frequency Tapping”. Popularization of low frequency tapping isimportant in the context of growing shortage of tappers to harvest mature rubberplantations. More than 2800 meetings were conducted in which around 85,000growers/tappers participated.

• Two new rubber clones: Two new rubber clones viz., RRII 417 and RRII 422 werededicated to the nation by Shri Anand Sharma, Honourable Minister of Commerce &Industry, Government of India, on October 6, 2009.

B. Tea Board

• Special Purpose Tea Fund : This fund was set up in the year 2007 for accelerating therate of uprooting and replanting/replacement of old and uneconomical tea areas. Longterm loan to the tune of 50% of the unit cost is provided from this fund and another 25%of the unit cost is reimbursed to the tea gardens by way of subsidy after completion of replanting/replacement. During the year 2010-11 it is proposed to link all the ongoingdevelopmental schemes with the replanting undertaken in the tea gardens. Only suchtea gardens which actively participate and take up replanting will be provided with thebenefit of the other schemes of the Board.

• Electronic Auction System: The redesigned e-auction system developed incollaboration with NSE-IT was tested out in all the public auction centers during 2009-

10. The trial runs were found to be successful. Some of the stakeholders had certainreservations which are being addressed in order to make the system fully operational.The new system is expected to be fully operational during the financial year 2010-11.

• Setting up of a separate cell to look into the developmental needs of the small growers: There is a growing demand from all the North Eastern Region for opening of the new offices of the Board to provide better services to small growers. As the existingmanpower of the Board is rather low, a proposal has been submitted to Government foraugmentation of technical manpower of the Board for efficient management of a Small



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Growers Cell and for opening of new field offices in all the important areas havingsmall grower concentration.

• Development of Geographic Information System through remote sensing: This projectwas launched during 2008-09 with the association of the regional center of Indian SpaceResearch Organization (ISRO) at Kharagpur. Substantial preparatory work has beenaccomplished during 2009-10.

• Energy conservation in small tea processing units in South India: This project was

launched with financial support from the United Nations Development Programme –Global Environment Facility (UNDP-GEF) during 2008-09. This project aims atremoval of barriers to energy conservation and energy efficiency that inhibit therealization of large energy saving potential in the tea sector.

• Organic Tea Development Project: This project supported by the Food and AgricultureOrganization – Inter Governmental Group (FAO-IGG), Common Fund forCommodities (CFC) and International Federation of Organic Agriculture Movements(IFOAM) was launched in September 2008. The project aims at establishing a scientificpackage of practices for organic tea, harmonization of certification parameters andidentification of market potential for organic tea and development of marketingstrategies for organic tea in the world market.

• Centenary Celebration of Tea Research Institute (TRI): The Tea Research Institute atTocklai, Jorhat, being managed by Tea Research Association will be celebrating itscentenary in May 2010. A sum of Rs.20 crore has been sanctioned by the Governmentfor commemoration of the Centenary.

• Meeting of the FAO-Inter-Governmental Group on Tea (FAO-IGG): The 19thSession of the FAO-IGG will be held in New Delhi in May 2010.

C. Spices Board

• Special Fund for Replantation & Rejuvenation of Cardamom Plantations: Thisprogramme has been included as an additional scheme in the 11th Plan proposals of

Spices Board with an outlay of Rs.122.23 crore. Under the Programme, the old anduneconomic plantations of cardamom (small & large) will be replanted with healthy anddisease free planting materials of high yielding varieties and identified traditional highyielding varieties having good traits. Under rejuvenation, gap filling of vacancies in theplantations with planting materials of high yielding varieties, scientific plant protectionoperations, fertilizer application, inter-culture operations, irrigation and other goodagricultural practices are proposed to be adopted. The scheme aims at replantation of 25,000 hectares under cardamom (small) & 10,000 hectares under cardamom (large)and rejuvenation of 15,000 hectares and 10,000 hectares respectively for cardamom(small) and cardamom (large) during the plan period. The programme of replantation isunder implementation from 2007-08 and rejuvenation from 2008-09.

• Pepper production programme in Idukki district of Kerala: A project for pepperproduction programme has been approved by the Ministry of Agriculture underNational Horticulture Mission (NHM) in March 2009 with a major focus onreplantation and rejuvenation of pepper in Idukki district of Kerala. Idukki is the majorproduction centre of pepper in Kerala. The total cost of the project, which is to beimplemented for a period of 5 years starting from 2009-10, is Rs.230.58 crore, out of which the approved total NHM assistance is Rs.120 crore. Under the programme,, Rs40.66 lakh have been spent by NHM upto January 2010.



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• Replantation and rejuvenation of pepper in Wynad district of Kerala and NE region:This scheme has been approved in October 2009 with a subsidy component of Rs.53.28crore for implementation over the next 5 years. Action is being initiated for theproduction of quality planting material in the current year itself. The implementation of various components of the scheme will start from 2010-11 onwards.

• Setting up a Plantation Research Unit in Centre for Development Studies (CDS),Trivandrum: The Government had approved and sanctioned an amount of Rs.5.00 crore

as one time grant during 2008-09 for setting up a Plantation research unit in CDS,Trivandrum. As per the MoU signed between Spices Board and CDS, a nine membersteering committee has been constituted for annual review and approval of work plan,budget, audited accounts and annual report of the proposed research unit. The firstmeeting of the steering committee was held in July 2009.

• Spices Parks: Spices Parks in different spice producing States are being set up toprovide common infrastructure facilities at the growing centres, which would facilitateprocessing units close to the production centres, leading to better price realization byfarmers through value addition and enhanced quality of spices. The first ever Spicespark set up by the Board under the ASIDE scheme at Chhindwara in Madhya Pradeshwas inaugurated during February 2009. Under the Eleventh Plan scheme of Export

development and promotion, the Board has proposed to set up six Spices parks ingrowing/marketing centres viz. Idukki in Kerala, Sivaganga in Tamil Nadu, Guntur inAndhra Pradesh, Mehsana in Gujarat, Jodhpur in Rajasthan and Uttar Pradesh. TheSpices Park at Puttadi, Idukki is expected to become functional in March 2010. Theland for Spices Park at Guntur in Andhra Pradesh, Sivaganga in Tamil Nadu andJodhpur in Rajasthan has been acquired.

• Regional quality evaluation laboratories cum training centers: Under ASIDE scheme,a Quality evaluation laboratory has been set up at Mumbai which commenced workingfrom 25th June 2008. It undertakes analysis of export consignments of chilli and chilliproducts and turmeric powder for mandatory certification. The existing lab cum trainingcentre at Cochin is being upgraded and shifted to a new building with more facilities.

Under ASIDE scheme, the Government has also approved setting up of Qualityevaluation lab cum training centres at Guntur, New Delhi, Kolkata, Chennai andTuticorin. The setting up of the lab cum training centre at Guntur is nearing completionand will be operational before the end of 2009-10. The construction work for setting upof lab cum training centre at Delhi and Chennai has been started. A proposal for settingup lab cum training centres at Kandla is under the consideration of the Government.

• Electronic auction system for cardamom: Spices Board has introduced an electronicauction (e-Auction) system replacing traditional manual system for cardamom (small)in Kerala and Tamil Nadu which accounts for 80% of total production in the country. E-auctions are now being conducted at two centres viz., Vandanmettu in Kerala andBodinayakanur in Tamil Nadu with infrastructure facilities provided by the Board. It is

proposed to shift the E-auction centres functioning in private premises to the SpicesPark at Puttadi and Spices Board’s regional office at Bodinayakanur.

• ID Cards: As a measure to identify the right beneficiary in matters of domesticmarketing of cardamom, especially in E-auction of cardamom and export development& promotion of spices, Spices Board has started issuing ID Cards to the growers,dealers of cardamom and registered exporters of spices during 2008-09. The Board hasissued 10452 numbers of ID Cards till December 2009. The introduction of ID cardshas ensured transparency and authenticity of the participants in the E-auctions.



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• GI Registration of Spices: Spices Board has obtained Geographical Indication (GI)registration for Malabar Pepper, Alleppey Green Cardamom and Coorg GreenCardamom. Applications have been filed for GI registration of Byadagi Chilli andGuntur Sannam Chilli and the applications are under process.

• Training on Good Agricultural Practices (GAP) on spice production: A three months’residential programme is being conducted by Indian Cardamom Research Institute of the Board to train unemployed youth from farming families to adopt GAP for quality

spice production.

VI. Trade Facilitating Reforms and Export Promotion Measures

It is the constant endeavour of the Government to plan and carry out trade facilitating reformson a sustained basis to ensure the right type of environment for accelerated growth of international trade. The Government has taken a number of initiatives to simplify proceduresrelating to international trade and put in place an exporter friendly regime for obtaining importauthorizations and disbursement of export linked incentives. During the year, the ongoingreforms were further deepened and new initiatives undertaken to achieve this objective. Themajor initiatives in this regard include:

A. eTRADE Project

The Department of Commerce is pursuing the project Electronic Trade (eTRADE), whichfacilitates international trade in India by way of promoting e-Delivery of services by variousregulatory / facilitating agencies involved in international trade so as to enable the trade to availservices from these agencies in online environment. The major stake holders of this project areCustoms, Sea Ports, Airports, Directorate General of Foreign Trade (DGFT), ContainerCorporation (CONCOR), Export Promotion Organizations (EPO), Exporters, Importers, Agentsand Banks. The eTRADE is a community project and preparedness of all the communitypartners together is a pre-requisite for the smooth operationalisation of the project. Initiatives

have been taken to bring all these agencies on level playing field so as to have seamlessintegration. The services covered under the project are electronic delivery of services in onlineenvironment, electronic filing/clearance of export/import documents by exporter, importer,agents to Customs, Seaports, Airports, CONCOR, DGFT etc., e-Payment of duties, charges(handling/freight etc.) and the electronic exchange/clearance of documents between communitypartners.

Major developments during the year 2009-10 are stated as follows:

• The project has helped the trade and industry in easy and quick filing/clearance of import/export documents, easy and faster payment of charges/duties, faster and

transparent clearances and faster receipt of incentives/drawback.• It has helped trade regulatory/facilitatory agencies in receipt of accurate documents,

which are easy to process, and reduction of transaction processing time and cost.

• Electronic payments facilitation has been introduced by Customs, DGFT, Airports,Seaports and CONCOR.

• The digitally signed electronic message exchange between Customs and DGFT.

• The import and export cycle is operational between Customs and custodian at majorairports.



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• The Express Courier EDI System is being operationalised by Express Industry Councilof India (EICI) under Partnership with Customs.

• The Centralized Port Community System (PCS) which provides single window interfacefor all major ports (12) is being commissioned.

B. e-Procurement

e-Procurement has been integrated as computerized online comprehensive process covering theidentification of buyer requirements and requisition processing, soliciting and receiving bids of all sorts, negotiating and establishing contracts and processing overall purchases and alsoundertaking vendor registration and inspection of stores to ensure quality. DGS&D hasimplemented e-procurement for most identified rate contract items which is an important partof the ‘Mission Mode Project’ under the National e-Governance Plan (NEGP).

DGS&D has created its own latest state of the art and cutting edge technological centre tosupport its in-house e-procurement activities in delivering services to the different GovernmentDepartments through the e-procurement portal. Major activities like online consultativecommittee meeting with the trade and indentors, framing of technical specifications, tender

notices, tender document and award of Rate Contract has already been placed in the publicdomain through the e-procurement portal. This has resulted in bringing transparency in allbusiness transactions. Electronic Payment system for office of Chief Controller of Accounts(CCA) is operational. The system of on-line bidding through E-tendering is also operational inDGS&D.

With effect from 1st

October 2008, all supply orders against the Rate Contract must be placedby Direct Demanding Officers online through the DGS&D website only (www.dgsnd.gov.in). Over 42,000 supply orders have been placed online through the DGS&D system. DGS&D is inthe process of empanelling Application Service Providers (ASP) for providing end-to-endprocurement solutions to Central/State Government Departments & PSUs as and when theyapproach DGS&D.

C. Online Services by Director General of Foreign Trade (DGFT)

The Department is committed to simplifying procedures, facilitating electronic clearances, andputting in place an exporter friendly regime for obtaining authorizations under various exportpromotion schemes. The Directorate General of Foreign Trade (DGFT) is engaged in enablingweb based international trade transactions so as to facilitate exporting community inexpeditious import/export clearances. The Director General of Foreign Trade (DGFT)maintains a comprehensive website www.dgft.gov.in. The details of Foreign Trade Policy,Hand Book of Procedures, all important Notifications, Public Notices, Circulars, minutes, etc.are available on the website. Single online application form for all the schemes/ activities isalso available on the website. Several steps are being taken under the Electronic Data Interface(EDI) programme.

http://www.dgsnd.gov.in%29/



http://www.dgft.gov.in/






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Box 3.2

Initiatives under Electronic Data Interface (EDI) Programme

• Online message exchange with Export Promotion Councils (EPCs) regardingRegistration Cum Membership Certificate (RCMC) to be operational by end of 2009-10.

• Export Promotion Schemes like Focus Product Scheme (FPS), Focus MarketScheme (FMS) and Vishesh Krishi & Gram Udyog Yojana (VKGUY) to be EDIenabled with Customs by June 2010.

• Implementation of e-Trade project to be accelerated, so as to bring all stakeholderson a common platform; Broad services under e-trade project would includeelectronic filing and clearance of export/import documents, e-payment of duties andinter agency message exchange extended to ports, Banks, CONCOR, Airlines andshipping lines, among others.

• Electronic exchange of information with Customs on Importer-Exporter Code (IEC)number, authorization details etc. based on an agreed message protocol;

• Additional ports / locations to be EDI enabled in next few years.

D. Use of Information and Communication Technology

Information and Communication Technologies (ICT) based tools are integrated into the day today functioning of the Department. It facilitates efficient and effective administration, deliveryof services, information dissemination, trade promotion and monitoring. This is backed up withregular review and upgradation of ICT infrastructure installed in the department and technicalsupport from National Informatics Centre (NIC). A Local Area network (LAN) created andmanaged by NIC, is available in the department to connect all sections/ divisions/officers in thedepartment and providing round the clock facilities for e-mail, and Intranet/ Internet operations.The upgradation of the LAN is in progress to integrate latest technological tools and provide

better facilities for Intranet and Internet operations.

To facilitate quick appraisal of inter-ministerial and state matters, an Executive VideoConference System (EVCS) has been installed and operational in the Chamber of CommerceSecretary, connecting Secretaries to Government of India and all Chief Secretaries/ Administrators of States/UTs over NIC network (NICNET). For bilateral and multilateralinternational negotiations, a Video conferencing Studio is setup in the department withrequisite hardware and software and is going to be commissioned soon.

In order to provide necessary support in decision making, monitoring, analysis, officeautomation and e-governance, various ICT based systems, applications and packages are

developed and implemented in the department. The electronic interface with communitypartners for trade facilitation, Electronic Payment through Net Banking and Digital Signatureare integrated with the systems wherever applicable.

The Department's web site (http://commerce.nic.in) is the major source of informationdissemination and provides Government-to-Citizen (G2C) and Government-to-Business (G2B)interfaces for electronic delivery of services, trade facilitation and monitoring variousapplications. Besides providing information about the department and its functioning, the



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

• Preparation of Action Plan pertaining to the Department of Commerce for the overalldevelopment 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 issuesorganized by National Commission for Women and others.

Gender Budget Cell

The Gender Budget Cell is functioning in the Department to ensure that the budget allocationsmade in the various schemes implemented by the Department benefitted women. Most of theschemes under the Commodity Boards such as Tea, Rubber, Coffee, Spices etc. as well asagencies like Indian Instituting of Packaging, Marine Products Export Development Authority,Footwear Design & Development Institute etc. have programmes targeting womenbeneficiaries. Though funds are not specifically earmarked for this group, yet all the

aforementioned schemes subsume the targeted category.



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CHAPTER-IV

REVIEW OF PAST PERFORMANCE

The Plan Schemes being implemented by the Department are aimed at creating an enablingenvironment for promotion of Indian exports. India’s export performance during the period2004-05 to 2008-09 has been very encouraging wherein India’s merchandise exports recordedan annual average growth of 23.9%. The global downturn and contraction in overseas demandduring 2008-09 adversely impacted the growth of India’s exports which came down to 13.6%in 2008-09 from a high of 29.1% achieved during the previous year. The export performance of India for the last six years is given in Table 4.1 below.

Table 4.1Export Performance (2004-05 to 2009-10)

(US $ Billion)

Year Value of Exports

Growth Rate(%)

Export Target (% Increaseover previous year)

2004-05 83.5 30.8 16.0

2005-06 103.1 23.4 16.0

2006-07 126.3 22.5 22.2

2007-08 163.0 29.1 26.6

2008-09 185.3 13.6 25.0

2008-09 (April-Dec) 147.6 - -

2009-10 (April-Dec) 117.6 -20.3 -Source: DGCI&S

India’s exports in dollar terms showed a growth of about 48.1% from April to September, 2008where after from October, 2008, it started declining bringing down the annual growth to 13.6%in 2008-09. After showing a negative growth for seven consecutive months in 2009-10, India’sexports have entered the positive territory in November 2009. Exports during December, 2009also showed a positive growth at 9.3% as compared to same period last year. However, on aquarterly basis, cumulative value of exports for the period April- December, 2009 was US$117.6 billion as against US$ 147.6 billion registering a negative growth of 20.3% over the sameperiod last year.

The scheme-wise performance in respect of major schemes being implemented by the

Department is given below:

I. Assistance to States for Development of Export Infrastructure andAllied Activities (ASIDE) Scheme

The basic objective of the scheme is to involve the States in the export efforts by providingincentive-linked assistance to the State Governments and to create appropriate infrastructure forthe development and growth of exports. The objective has been achieved in spite of various



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constraints as is evident from the active participation of States/UTs in sponsoring a largenumber of export related projects for assistance from ASIDE Scheme and the efforts made bythem to leverage funds for taking up several projects. However, the demands the funds receivedfrom the States still remain substantially more than availability of funds.

Under the State Component of ASIDE, a total number of 1170 projects worth Rs. 19294.06crore have been approved by the State Level Export Promotion Committees (SLEPCs) since2002-03 to 2009-10 (as on 13.01.2010). Out of this Rs. 4386.60 crore has been proposed byState Govt./UTs to be met from the ASIDE funds and the balance of Rs. 14907.46 crore havebeen/are being leveraged from State Govt/UTs contribution and other sources.

Similarly in the Central Component, 337 projects at a total cost of Rs. 1868.54 crore have beenapproved of which, Rs. 1004.52 crore only has been funded from the ASIDE funds. BalanceRs. 864.02 crore has been/is being leveraged from other sources.

During 2008-09, 118 projects were approved by State Governments under ASIDE at a cost of

Rs. 1051.68 crore. Out of this Rs. 660.44 crore has been proposed by State Govt. /UTs to bemet from the ASIDE funds and the balance of Rs. 291.24 crore have been/are being leveragedfrom other sources. Similarly in the Central Component, a total of number 31 projects worthRs. 235.94 crore have been approved so far and out of that Rs. 139.79 crore has been fundedfrom the ASIDE funds. Balance Rs. 96.15 crore has been/is being leveraged from othersources.

The States of Assam, Chandigarh, Delhi, Gujarat, Haryana, Jharkhand, J&K, Karnataka,Kerala, Maharashtra, Madhya Pradesh, Mizoram, Nagaland, Orissa, Punjab, Rajasthan, Tripura,Tamil Nadu, Uttaranchal, U.P. and West Bengal have leveraged large chunk of funds fromother sources.

During the 11th

Five Year Plan, an outlay of Rs 3793 crore was approved for the Scheme. Anoutlay of Rs 570 crore has been approved for the year 2009-10 and Rs. 662.98 crore for 2010-11. The details of the funds released under ASIDE during 2004-05 to 2009-10 are given inTable 4.2 below. The year-wise allocations/ releases of funds to the States/ UTs under the StateComponent, detailed status of major projects under State Component, detailed status of majorprojects under Central Component and detailed status of major projects under ExportDevelopment Fund are given in Annexures A, B, C and D appearing at the end of the Chapter.



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Table 4.2Outlay and Sanctions/Releases under ASIDE

(Rs. Crore)

Year TotalOutlay

Sanction/Releaseto States

(including N.E.Region

Sanction/Releasein the Central

Sector

TotalSanction/Release

under ASIDE

2004-05 424.88 313.84 111.04 424.88

2005-06 500.99 383.00 117.99 500.99

2006-07 450.00 358.92 90.25 449.17

2007-08 569.00 439.99 129.01 569.00

2008-09 570.00 437.84 131.40 569.24

2009-10 570.00 351.33 82.83 434.16**As on 6.1.2010Source: Department of Commerce

II. Special Economic Zones (SEZs)

Setting up of SEZs is one of the major initiatives undertaken by the Department. The SpecialEconomic Zones (SEZs) set up as enclaves, separated from the Domestic Tariff Area by fiscalbarriers, are intended to provide a duty free environment for export production. There areseven EPZs set up by the Central Government which were converted to SEZs uponannouncement of the SEZ Policy. The performance in respect of these SEZs is given below:

Kandla Special Economic Zone (KSEZ)

The Kandla Special Economic Zone was set up in 1965 on 700 acres of area (now expanded to

1000 acres) with the objective of increasing exports and generation of employmentopportunities earning foreign exchange besides industrializing the backward region of Kutchand assisting in better utilization of the cargo handling facilities developed at Kandla Port.KSEZ is a multi-product Zone in which a wide range of items including stainless steel utensils,engineering goods, electrical products, pharmaceuticals, cosmetics & toiletries, castor oil,readymade garments, knitwear etc. are manufactured. KSEZ provides direct employment toover 26000 persons. About 15 new units are expected to be added this year. These new unitswill have an annual export potential of over Rs 200 crore and additional investment to the tuneof Rs 56 crore. The growth of exports since 2004-05 is given in Table 4.3 below:

Table 4.3

(Rs. Crore) Year Target Exports2004-05 1275.00 1060.14

2005-06 1270.00 1101.182006-07 1275.00 1517.00

2007-08 1500.00 1938.852008-09 Target not fixed 2420.38

2009-10 (April-Dec) Target not fixed 1589.26

Source: Department of Commerce



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Santacruz Special Economic Zone (SEEPZ)

The Santacruz Special Economic Zone was set up in September 1974 in 100 acres of land. Atpresent, there are 350 units in operation in the zone. The export performance of the zone since2004-05 is given in Table 4.4 below:

Table 4.4(Rs. Crore)

Year Target Exports2004-05 9790.00 8298.59

2005-06 9950.00 9192.22

2006-07 10000.00 12047.67

2007-08 11000.00 11268.532008-09 Target not fixed 10078.81

2009-10 (April-Dec) Target not fixed 7515.48Source: Department of Commerce

Noida Special Economic Zone

The Noida Special Economic Zone (NSEZ) was set up in 1985 in Noida (U.P). This zone hasbeen developed in a phased manner on 310 acres of land. At present, there are 346 units inoperation. The NSEZ is a multi product zone with units engaged in manufacturing of electronicitems, software products, engineering goods, gem and jewellery, toys, garments andpharmaceuticals. The export performance of the zone since 2004-05 is given in Table 4.5below:



2005-06 5100.00 5670.76

2006-07 5700.00 6893.002007-08 7000.00 16843.36

2008-09 Target not fixed 16295.65


Madras Special Economic Zone (MSEZ)

The Madras Special Economic Zone was established in 1985 over an area of 98 acres, which

was expanded with another 163 acres in 1987. Presently there are 114 units engaged inmanufacture of electronic items, engineering goods, granite, rubber products, chemicals andallied products, gems & jewellery, textiles, leather goods and pharmaceuticals. The year-wiseexports from MEPZ SEZ since 2004-05 are given in Table 4.6 below:



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2005-06 1650.00 1858.802006-07 1700.00 2383.98

2007-08 2500.00 3046.532008-09 Target not fixed 3985.41


Cochin Special Economic Zone (CSEZ)

CSEZ, a multi-product zone, came in to existence in 1984 and became operational in 1986. Itwas converted into a Special Economic Zone on November 1, 2000. CSEZ stands out amongstthe SEZs in India as having the best infrastructure. It is the only Government owned SEZ inIndia 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 isinstalled 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 foreignpost offshore banking unit, a health dispensary and branches of State Bank of India and IndusInd Bank with ATM facilities. CSEZ has also pioneered public-private participation ininfrastructure development. In the IT sector, a 2.60 lakh sq.ft Software Park Technopolis hasbeen developed with private participation at a cost of Rs 40 crore. The year-wise exports since2004-05 are given in Table 4.7 below:

Table 4.7

(Rs. Crore) Year Target Exports

2004-05 375.00 462.99

2005-06 550.00 696.01

2006-07 800.00 802.70

2007-08 1250.00 4661.00

2008-09 Target not fixed 11332.242009-10 (April-Dec) Target not fixed 12688.34


Falta Special Economic Zone (FSEZ)

The Falta Special Economic Zone has been set up over an area of 280 acres. The zone isengaged in manufacturing of electronic items, engineering goods, gems & jewellery,readymade garments, rubber products, frozen foods, tea etc. The year-wise exports from thezone since 2004-05 are given in Table 4.8 below:



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2005-06 700.00 524.952006-07 700.00 998.70

2007-08 1500.00 1029.872008-09 Target not fixed 961.28


Visakhapatnam Special Economic Zone (VSEZ)

The Visakhapatnam Special Economic Zone was set up in 1994 over an area of 360 acres of land. At present 45 units are in operation. The year-wise exports from the zone since 2004-05are given in Table 4.9 below:

Table 4.9(Rs.Crore)


2005-06 700.00 612.712006-07 700.00 749.79

2007-08 800.00 746.472008-09 Target not fixed 747.86


In addition to the above mentioned 7 Central Government owned SEZs, 12 SEZs were set upby the State Governments/private sector prior to the coming into force of the SEZ act, 2005.These SEZs provide direct employment to 4,18,129 persons.

After the coming into force of the SEZ Act, 2005 on 10th February 2006, 573 formal approvals(as on 31.12.2009) have been granted for setting up of Special Economic Zones. Out of these,346 SEZs have been notified and are in various stages of operation.

Development of Infrastructure in Special Economic Zones

The capital outlay of Special Economic Zones for development of infrastructure is fundedunder 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, 2009, the total direct employment in the SEZ sector is estimated at

4,90,358 persons. It includes incremental employment of 3,55,654 persons generated since



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February, 2006. The composition of total employment generated in the SEZ sector isgiven below:

Table 4.10Employment in SEZs (as on 31st Dec.2009)

S.No. Category Employment (Nos.)1. 7 Central Govt. SEZs 2,00,907

2. 12 Private/State Govt. new generation SEZs setup/notified prior to SEZ Act, 2005

61,225

3. SEZs notified under the SEZ Act, 2005 2,28,226

TOTAL 4,90,358

Investment in the SEZs

As on 31st December, 2009, the total private sector investment in the SEZ sector in India isestimated at Rs.1,28,385.05 core. Incremental private investment after the SEZ Act, 2005came into force, is estimated at Rs.1,24,349.54 crore. The composition of the total privatesector investment (as on 31

stDecember, 2009) is given below:

Table 4.11Private Investment in SEZs (as on 31st Dec.2009)

S.No. Category Investment(Rs. Crore)

1. 7 Central Govt. SEZs 5,986.96

2. 12 Private/State Govt. new generation SEZs setup/notified prior to SEZ Act, 2005

6,794.31

3. SEZs notified under the SEZ Act, 2005 1,15,603.78TOTAL 1,28,385.05

Exports from SEZs

As on 31st December, 2009, 101 SEZs have commenced exports. The exports in the currentyear i.e. 2009-10 (up to 31st December, 2009) from the SEZs in the country as a whole were of the order of Rs 151785 crore as compared to Rs 99689 crore during the complete year of 2008-09. Exports from the functioning Special Economic Zones during the last six years are asunder:



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Table: 4.12Exports from the SEZs (2004-2009)

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

2004-2005 18,314 32

2005-2006 22 840 25

2006-2007 34,615 52

2007-2008 66,638 932008-2009 99,689 50

2009-10 (Apr-Dec) 151785 -Source: Department of Commerce

III. Tea Board

The Tea Board was constituted as a statutory body on 1st

April, 1954 under Section (4) of TeaAct 1953. The Board, with its Head Office at Kolkata, is headed by a Chairman. It has 30

Members drawn from different stake holders of the tea Industry and sixteen regional/sub-regional offices. The Board functions as an apex body for the all round development of the teaIndustry. With a view to promote the export of Tea, the Board has established three officesabroad viz. London, Moscow and Dubai. Tea Board has wide functions and responsibilitieswhich include measures for development of the tea industry, extending financial and technicalassistance to the tea growers, manufacturers and producers, export promotion and domesticgeneric 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.

The following Table 4.13 gives the year-wise details of physical targets and achievement of

production and exports of tea since the year 2003-04.

Table 4.13Production and Exports of Tea

(Million Kgs)

Year Production ExportsTarget Achievement Target Achievement

2003-04 851 879 200 183

2004-05 825 907 200 206

2005-06 850 949 200 197

2006-07 875 973 200 2182007-08 900 987 200 185

2008-09 985 973 203 191

2009-10 1006 748* 207 112**April-OctoberSource: Tea Board



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Production

Tea production in India during the year 2008-09 has been estimated at 972.77 million kgs asagainst 987.02 million kgs produced in 2007-08. Drought like weather conditions was mainlyresponsible for lower production of tea. During the current financial year 2009-10, the

production for April to October, 2009 has been estimated at 748.48 million kgs against 742.61million kgs achieved during corresponding period of last year showing increase in productionby 5.87 million kgs.

Exports

Exports of tea from India during 2008-09 stood at 190.64 million kgs valued at US$ 518.04million with a unit price realization of US$ 2.72 per kg as against 185.32 million kgs valued atUS$ 469.64 million with a unit price of US$ 2.53 per kg in 2007-08. During the currentfinancial year, April to October, 2009 exports of tea has been estimated at 111.52 million kgsvalued at US$ 321.80 million with a unit price of US$ 2.89 per kg against 120.30 million kgs

valued at US$ 334.61 with a unit price of US$ 2.78 per kg during the corresponding period of last year showing a decline of 8.78 million kgs in quantum and US$ 12.81 million in value.

IV. Coffee Board

The Coffee Board is a statutory organization constituted under the Coffee Act, 1942 andfunctions 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 theChief Executive. The remaining 32 Members representing the various interests are appointed asper provisions of Section 4(2) of the Coffee Act read with Rule 3 of the Coffee Rules, 1955.The Coffee Board is mainly engaged in the areas of Research, Extension, Development,

Quality Up-gradation, Economic & Market Intelligence, External and Internal Promotion andLabour Welfare. 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 atMysore. There are also several Extension offices located at coffee growing areas of Karnataka,Kerala, Tamil Nadu, Andhra Pradesh, Orissa and North Eastern Region.

The following Table 4.14 gives the year-wise details of physical targets and achievement of production and exports of coffee since the year 2003-04.



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Table 4.14Production and Exports of Coffee

(Tonne)

Crop Season Production ExportsTarget Achievement Target Achievement

2003-04 2,75,000 2,70,500 2,15,000 2,32,6842004-05 2,90,000 2,75,500 2,25,000 2,11,765

2005-06 3,05,000 2,81,900 2,00,000 2,01,517

2006-07 3,00,000 2,88,000 2,05,000 2,49,030

2007-08 2,87,000 2,62,000 2,10,000 2,18,996

2008-09 2,99,000 2,62,300 2,10,000 1,97,171

2009-10 2,90,000 2,89,600* 2,00,000 1,35,756***Estimates

**For the period April-DecemberSource: Coffee Board

Production

The post monsoon crop estimates for 2008-09 season is 2,62,300 tonnes comprising of 79,500tonnes of Arabica and 1,82,800 tonnes of Robusta as against the targeted production of 2,76,600 tonnes comprising of 90,050 tonnes of Arabica and 1,86,550 tonnes of Robusta forthe season.

As against the targeted production of 2,90,000 tonnes comprising of 90,000 tonnes of Arabicaand 2,00,000 tonnes of Robusta for 2009-10 season, the post monsoon estimates has beenplaced at 2,89,600 tonnes consisting of 94,600 tonnes of Arabica and 1,95,000 tonnes of Robusta.

Exports

A total quantity of 1,97,171 metric tonnes of coffee was exported from India valued atRs.2242.64 crore ( US$ 506.14 million) during the year 2008-09. The foreign exchangeearnings was an all time high in rupee as well as dollar terms. The provisional exports upto theend of December 2009 is 1,35,756 metric tonnes valued at Rs.1,450.43 crores, as against theexport target of 2,00,000 tonnes for the full year 2009-10.

V. Rubber Board

The Rubber Board is a statutory autonomous body constituted under the Rubber Act, 1947 withthe primary objective of the overall development of the rubber industry in the country. TheBoard has been implementing several schemes for the development of the rubber industry inthe country under different five-year/annual plans. The functions of the Board broadly areundertaking & assisting scientific technological and economic research; imparting training tostudents/growers on improved methods of cultivation; manuring and spraying; renderingtechnical advice to rubber growers; marketing; collecting statistics from owners of estates;



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dealers and manufacturers; securing better working conditions and providing/improvingamenities & incentives for workers.

The year-wise details of production, imports and exports of rubber since 2003-04 are given inTable 4.15 below:-

Table 4.15Production, Exports and Imports of Rubber

(Tonne)

Year Production Imports Exports2003-04 711,650 44,199 75,905

2004-05 749,665 72,835 46,150

2005-06 802,625 45,285 73,830

2006-07 852,895 89,699 56,545

2007-08 825,345 86,394 60,353

2008-09 864,500 77,616 46,926

2009-10 840,000* 126,472** 2,639***Estimates for the year

** For the period April-OctoberSource: Rubber Board

Production and Productivity of Natural Rubber (NR)

The production in 2009-10 (April-October) is projected at 840,000 tonnes, which is 9.4% loweras compared to that of the corresponding period in the previous year. The decline in productionis attributable to adverse weather conditions, intense harvesting in 2008 and growing stock of old plantations. Despite not having the best of geographical regions favorable for growingnatural rubber, India continued to hold first position with a yield of 1867 kg per ha per annum

in 2008-09.

Exports

Export of natural rubber is perceived as a tool to adjust the demand-supply balance in thedomestic market so that the Indian farmer is not deprived of the price fetched by hiscounterparts elsewhere. As there is no financial incentive, Natural Rubber export primarilydepends on the difference between the prevailing prices in the domestic and internationalmarkets. During 2008-09 export of natural rubber amounted to 46,926 tonnes (worth US$97.95 million) as against the target of 50,000 tonnes. Export of natural rubber during the periodApril-October 2009 amounted only to 2,639 tonnes. This was because the domestic rubber

prices were ruling above the international prices from the end of March 2009 till early October.

Imports

Import of natural rubber in 2008-09 amounted to 77,616 tonnes. Currently, natural rubber canbe freely imported into the country subject to payment of import duty. The current applied rateof duty for dry forms of natural rubber is 20% and that of latex is 70%.



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The scheme-wise review of performance during 2008-09 and the current year i.e. 2009-10 isgiven in Table 4.16 below:

Table 4.16Scheme-wise Physical Targets & Achievement

SchemesMajor Physical Components

2008-09 2009-10

Target Achievements TargetProvisionalAchievementupto 31.12.09

RubberPlantationDevelopmentScheme(RPDS)

a) New Planting 2000 ha 3617 ha 1500 ha 500 ha

b) Replanting 6850 ha 4311 ha 6500 ha 610 ha

c) Input Supply with price concession 20000 ha 26253 ha 20000 ha 21500 ha

d) Formation of New RPS/SHGs (No.) 150 528 150 50

e) Group Processing Centres (No.) 16 1 102

(work progressing)

f) Apiculture (no. of growers) 3000 3136 3300 1000

Research Not quantifiableProcessingQualityUpgradation& ProductDevelopment (PQUPDS)

Technically Specified Rubber (TSR)

a) Quality Upgradation 5 4 5 3

b) Modernization 6 9 6 5

Rubberwood

a) Processing, value addition and 4 3 4 1

quality improvement

b) Waste utilization and management 2 1 2 0

MarketDevelopment& ExportPromotion

(MD&EP)

Rubber

a) Godown - 100 MT 5 1 5 0

b) Godown - 1000 MT - - - -

c)Strengthening RPS sector in

marketing 11 26 11 11 Rubberwood

Rubberwood promotion - domestic 15 7 15 5

Export Promotion

a) Export of NR (tonnes) 50000 46926 50000 9058

b) Participation in international tradefairs 10 10 10 9

HumanResourceDevelopment (HRD)

a) Training 10020 13523 10020 7700

b) Labour Welfare Programmes 23045 24081 23665 11589

Rubber Dev.

in the NERegion (RDNE)

a) New Planting 3750 ha 7301 ha 5700 ha 1500 ha

b) Replanting 350 ha Nil 350 ha Nilc)Revitalization, restocking & Block Planting 275 ha 51 450 ha Nil

d) Input Supply with Price concession 5000 ha 9450 ha 5000 ha 6100

Source: Rubber Board



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VI. Spices Board

Spices Board was constituted on 26th February 1987 under the Spices Board Act 1986 (No.10of 1986) by merging the erstwhile Cardamom Board and Spices Export Promotion Council.The Board is responsible for promotion of export of 52 spices listed in the schedule of the Act

and the overall development and marketing of both small and large cardamom. Theprogrammes for development of spices in North East, organic spices, and post harvestimprovement as an export enhancing measure are also undertaken by the Board.

Production

The preliminary estimates of production of cardamom (small) and cardamom (large) in Indiaduring 2009-10 are 10,075 tons and 4,180 tons respectively.

Export Performance

Despite the global economic recession, spices export from India managed to continue itsupward trend as the value of spices exports crossed Rs.5000 crore for the first time during theyear 2008-09. During 2008-09 a total of 470,520 tonnes of spices and spices products valued atRs.5300.25 crore (US $1168.40 million) was exported from the country against 444,250 tonsvalued Rs.4435.50 crore (US $1101.80 million) in the previous year. The spices export during2008-09 was an all time high with share of India touching 47% of total quantity and 44% of value of world spices trade. During 2009-10 (April-January, 2009-10), the export of spicesstood at 396,791 tonnes valued at Rs.4405.25 crore.

Import

The import of spices largely takes place for value addition and re-export except items such asclove, cassia, star anise, poppy seed, etc. which are mainly used for domestic demand. Importof large cardamom and fresh ginger takes place from Nepal under the Trade Agreementbetween India and Nepal. The import of spices like pepper, clove and cinnamon is alsopermitted under Free Trade Agreement between India and Sri Lanka. During the year 2008-09India imported spices amounting to 83,545 tonnes valued at Rs. 765.39 crore (US$ 167.55million) as compared to 90000 tonnes valued at Rs. 645.50 crore (US$ 160.60 million) in 2007-08. During 2009-10 (April-December, 2009-10), the import of spices stood at 74,160 tonnesvalued at Rs.776.57 crore.

Scope, Objectives and Performance of Plan Schemes

The Government has approved initially six schemes for implementation during Eleventh Planperiod. Subsequently, the Government approved for (1) Setting up of plantation research unit inCentre for Development Studies (CDS), Trivandrum (2) Replantation and rejuvenation of pepper in Wynad district in Kerala and NE. The details of the scope and objectives of theindividual schemes, the actual achievement in recent years with the reasons for any shortfalls / constraints are given below:



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• 840 ha were covered under organic cultivation of spices, 2817 vermi-compost unitswere set up.

During the year 2009-10, irrigation and land development in 1000 ha, construction of 66 rainwater harvesting devices, improved curing devices (68 Nos.) for small cardamom have been

taken up. For large cardamom, 100 curing houses, new planting in 390 ha and cultivation of pepper in 120 ha, organic cultivation of Lackadong turmeric in 930 ha, organic gingercultivation in 750 ha in NE region have been taken up. Under organic farming, organiccultivation of spices in 590 ha and setting up of 1800 vermi-compost units have been taken up.The total anticipated financial expenditure under the scheme during 2009-10 is Rs.18.00 crore.

(iii) Export development & promotion of spices

The total financial expenditure under the scheme Export development and promotion, during2009-10 is Rs.18.00 crore. The scheme envisages activities related to infrastructureimprovement, trade promotion, and participation in fairs/exhibitions etc.

During 2009-10, under infrastructure improvement the following activities are targeted:

• Adoption of high-tech and process/technology upgradation in 22 processing units• Setting up of 10 in house QC lab• Quality certification – assist 10 units

Under trade promotion, during 2009-10, 25 units would be supported for sending businesssamples abroad and 10 units would be supported for printing brochures. Under market studyabroad, three market studies are proposed to be conducted. During 2009-10, Spices Boardintends to participate in 21 fairs and assisted exporters for participation in 15 fairs and 6

Seminars.

(iv) Export oriented research

The total financial expenditure under the scheme Export Oriented Research during 2009-10 isRs.4.00 crore. The following areas would be emphasized for the purpose of research andtraining:

• Research on crop improvement of small and large cardamom and organic spices.

• Research on crop protection of small and large cardamom and organic spices.

• Research on post harvest improvement of spices

• Equipping unemployed youths belonging to agriculture families of rural region on GoodAgricultural Practices for quality spice production and creating parallel extensionsystem of the Spices Board.

• Training on bio-agent production, organic input preparation to farmers, NGOs andextension agents



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VII. Tobacco Board

Tobacco is an important commercial crop in India. India is the 3rd largest producer and the 3rdlargest exporter of tobacco in the world earning an annual foreign exchange of Rs. 3457.79crore and about Rs. 10,271.55 crore as excise revenue in 2008-09 to the national exchequer. It

provides employment directly and indirectly to 36 million people. The tobacco sector hasregistered all time high remunerative prices to the tobacco growers with average price of Rs.103 per kg for Andhra Pradesh crop season 2009-10 and Rs. 109 per kg for Karnataka cropseason 2008-09. Exports in tobacco have also registered a robust growth at 56%.

The Tobacco Board was constituted as a Statutory Body on 1st January 1976 under Section (4)of the Tobacco Board Act, 1975. The Board is headed by a Chairman, with headquarters atGuntur, Andhra Pradesh and is responsible for the development of the tobacco industry. Atpresent, the activities of the Board are restricted to production and marketing of Virginiatobacco only. However, the Board is performing the function of export promotion in respect of all varieties of tobacco.

Year wise export targets and actual exports of tobacco and tobacco products since 2003-04 aregiven in Table 4.17 below:-

Table 4.17Exports of Tobacco

Year Target Actual Exports(000

tonnes)Rs

CroreUS $

Million(000

tonnes)Rs.

CroreUS $

Million2003-04 115.00 980.00 205 150.96 1175.63 251.04

2004-05 155.00 1235.00 273 162.93 1362.18 305.772005-06 158.00 1280.00 288 166.87 1413.47 322.49

2006-07 170.00 1450.00 330 180.99 1723.42 381.54

2007-08 Not fixed by the Govt. 173.34 1931.88 480.08

2008-09 Not fixed by the Govt. 207.91 3457.79 751.80

2009-10 (Apr-Sept) Not fixed by the Govt. 117.11 2205.87 453.85Source: Department of Commerce

Production

Presently, tobacco is being cultivated in an area of about 4 lakh hectares (0.23% of total arable

land) in the country covering different styles/types of tobacco viz., cigarette, bidi, chewing,hookah, cheroot, cigar wrapper, cigar filler, oriental tobacco, dark fire cured, etc., with aproduction of 700 million kgs. About 300 Million Kgs. of Flue Cured Virginia (FCV) Tobaccois produced in an area of 2.31 lakh hectares mainly in the states of Andhra Pradesh andKarnataka. Among the Non-FCV types, Burley, Harvel De-Bouxo Rio Grande (HDBRG) andNatu are the exportable styles. Bidi tobacco is cultivated in an area of about 1.5 lakh hectares,mostly in the states of Gujarat and Karnataka with an annual production of nearly 160 MillionKgs.



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Auctions

During April-August, 2009-10, a total quantity of 203.94 million kgs. of Andhra Pradesh FCVtobacco crop was marketed in 20 auction platforms at an average price of Rs. 103.39 per kg.The final average price of Rs.103.39 per Kg. realized for 2009 Andhra Pradesh FCV tobacco

crop is higher by Rs. 18.64 per kg. (21.99 %) compared to average price of Rs.84.75 per kg.realized for 2007-08 Andhra Pradesh FCV tobacco crop.

The average price of FCV tobacco is realized in Karnataka during the 2009-10 auctions (Sept-March, 2009-10) was Rs. 110.63 per kg. A total of 93.56 million kgs. were auctioned as on20.02.2010. It is anticipated that the entire estimated production of about 121.60 million kgs.of 2009-10 Karnataka FCV tobacco would be marketed by the end of March 2010.

Exports

The exports of tobacco and tobacco products during 2008-2009 were 207908 tonnes valued at

Rs. 3457.79 crore (751.80 million US$) against 173345 tonnes valued at Rs.1931.88 crore(480.08 million US$) exported in 2007-2008.

During 2009-2010 (April-Sept), a total of 117105 tonnes of Tobacco and Tobacco Products:valued at Rs. 2205.87 crore (453.85 million US$) were exported against 118257 tonnes valuedat Rs. 1666.65 crore (390.15 million US$) exported during the corresponding period of lastyear. The exports of unmanufactured tobacco during the period stood at Rs.324.04 crore, whichrepresented a growth of about 19.94% in quantity terms and 92.10% in value terms. Overall,exports of Tobacco and Tobacco Products during this period increased by 19.94% in quantityterms, 78.99% in Rupee terms and 56% in Dollar terms over the corresponding period of lastyear.

Export Promotion Activities

With a view to promote the exports of tobacco and tobacco products, the Tobacco Board hadparticipated in the following fairs and exhibitions during April-November 2009.

• China Import and Export Fair, 2009, Guangzhou from 15th-19th April, 2009

• World Tobacco Asia’09, Bali, Indonesia from 22nd -24th April, 2009

• India Products Show, St. Petersburg, Russia from 30th September – 3rd October2009.

• TABINFO Asia, 2009, Bangkok, Thailand from 11th

– 13th

November, 2009.

A 12 member delegation of FCV Tobacco growers visited China to study production,technology & marketing of tobacco from August 16-20, 2009. The Chairman, Tobacco Boardalso participated as a member of delegation for attending 28th Meeting of ISO/TC 126 held on11th & 13th May, 2009 at Madrid, Spain.



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VIII. Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development Authority under the Ministry of Commerce andIndustry is a statutory body entrusted with the primary task of promotion of export of marineproducts from India.

Exports

Exports of marine products during April-November, 2009, recorded a decline of (-) 2.89 % inquantity, and (-) 3.74 % in value (in dollar terms). Frozen shrimp continued to be the singlemost important item of export accounting for 47% of total export earnings, followed by frozenfish 18%, cuttlefish 10%, and squid 5%. Details of quantity and value wise exports of marineproducts during the last two years are given in Table 4.18 below: -

Table 4.18Export Performance of Marine Products

2008-09* 2009-10* Growth %Quantity (Metric tonnes) 406742 394999 -2.89

Value (Rupees Crore) 5910.75 6233.48 5.46

Value (Million US Dollar) 1354.82 1304.19 -3.74Source: Department of Commerce, Government of India(*) Provisional for the period April-November, 2009-10

The scheme-wise performance of MPEDA during the year 2009-10 is given in Annexure E.

Thrust Areas

To facilitate enhanced export of marine products MPEDA has been giving greater attention tothe following areas.

• Development of the Tuna Fishery by extending financial assistance and technical advicefor conversion / construction of Tuna Long Liners, construction of chilled tuna packingfacilities and imparting training to crew.

• Diversify culture practices by popularizing cage farming of finfish and organic cultureof shrimps.

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

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

• Ensuring production of quality seafood by setting up sophisticated laboratories in themaritime States.

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



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• Establishing presence of Indian Seafoods in major International markets by co-brandingIndian products with seafood giants abroad.

• Organizing and participating in International Seafood Shows to show case the strengthof Indian marine products industry and trade relationship.

• Facilitating supply of healthy and disease free seed and demonstrate culture practices of

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

To achieve these objectives, appropriate schemes have been devised, and are beingimplemented by MPEDA

Steps taken to increase production and exports during 2009-10

(a) For Increasing Production

• Assistance for conversion of fishing vessels to mono filament Tuna Long Liners and

provide long line materials to tap otherwise unexploited Tuna resources.• Introduction and adoption of code of practices in shrimp farms addressing thereby

sustainability concerns.

• MPEDA in association with Swiss Import Promotion Programme (SIPPO) undertakesorganic culture of scampi.

• Initiating turn key projects on cage culture in India along with buy back arrangementsfor marketing in association with NORAD, a Norwegian agency

• Culture of seabass and green mussels in cages and ponds (on a pilot scale) with theseeds produced by Rajiv Gandhi Centre for Aquaculture (RGCA).

• Provides financial assistance for establishment of ornamental fish breeding units toboost up export of ornamental fish.

(b) Steps to improve quality and sustainability of marine products meant for Export

• Assisting to set up chilled tuna packing centers and chilled fish handling centers.

• Upgradation and modernization programmes of various fishing harbours/ landingcentres are progressing.

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

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

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

• The laboratory at Bhubaneswar tests antibiotics like Nitro furans and Chloramphenicolof marine products meant for export.

• Six ELISA labs set up in Andhra Pradesh also tests Nitro furans and Chloramphenicolof cultured shrimp. Ten more ELISA labs are being set up in other maritime states.

• Network for Fish Quality Management and Sustainable Fishing (NETFISH) andNational Centre for Sustainable Aquaculture (NaCSA), the two societies formed for



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undertaking extension education programmes continue their effort in capture and culturefisheries sectors, for quality up gradation.

• RGCA continued its pioneering effort in research and development of various efforts in

production of seed and culture thereof .

IX. Agricultural and Processed Food Products Export DevelopmentAuthority (APEDA)

The Agricultural and Processed Food Products Export Development Authority (APEDA) wasset up in 1986 as a Statutory Body under an Act of Parliament of 1986. APEDA’s Head Officeis located at New Delhi and there are two Regional Offices located at Mumbai and Bangalore.

The Agricultural and Processed Food Products Export Development Authority (APEDA) ismandated with the development and promotion of the export of scheduled agro productsincluding Fruits, Vegetables and their Products; Meat and Meat Products; Poultry and PoultryProducts; Dairy Products; Confectionery, Biscuits and Bakery products; Honey, Jaggery and

Sugar Products; Cocoa and its products, Chocolates of all kinds; Alcoholic and Non-AlcoholicBeverages; Cereal products; Groundnuts, Peanuts and Walnuts; Pickles, Papads and Chutneys;Guar Gum; Floriculture and Floriculture Products; Herbal and Medicinal Plants. APEDA hasalso been entrusted with monitoring of import of sugar.

APEDA has been actively engaged in the development of markets besides upgradation of infrastructure and quality to promote the export of agro products. In its endeavour to promoteagro exports, APEDA provides financial assistance to the registered exporters under thefollowing schemes:

• Scheme for Market Development

• Scheme for Infrastructure Development

• Scheme for Quality Development

• Scheme for Research & Development

• Transport Assistance Scheme

Export Performance

The export of APEDA monitored agri and processed food products showed an overall declineof 8.06% during April-September, 2009over the same period of previous year. However,feedback from the industry suggests that the exports are on recovery path and the positivegrowth in exports is expected to be achieved during the full year 2009-10. The exportperformance of APEDA monitored products for the period April-September of 2008-09 and2009-10 is given in Table 4.19 below:



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Table 4.19Export Performance of APEDA Monitored Products.

(Rs. in crore)

Product Group Exports Growth in %April’08-Sep’08 April’09-Sep’09

Floriculture & Seeds 199.98 162.41 -18.79Fruits & Vegetables 60.55 80.06 32.22

Processed fruits &Vegetable

1917.59 2358.70 23.00

Livestock products 1897.87 1808.96 -4.68

Other Processed Foods 3677.26 2775.47 -24.52

Non-Basmati Rice 1261.40 260.13 -79.38

Basmati Rice 4777.19 6200.86 29.80

Wheat 0.00 0.00 0.00

Other cereals 2853.77 1654.50 -42.02

Total 16653.61 15310.09 -8.06


Scheme- wise Performance

The major schemes are being implemented by APEDA development of Infrastructure facilities;research and development; quality development; market development; and transport assistance.The performance of the individual schemes in physical terms and the outcomes resultingthereof are given in Table 4.20:

Table 4.20Scheme-wise Targets and Achievements (Financial and Physical Performance)

(Rs. in crore)Name of thescheme

Targets2008-09

Achievements2008-09

Targets2009-10

Achievements2009-10 upto15th December’09

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

Developmentof Infrastructurefacilities

47.00 134 47.30 143 50.00 94 6.91 37

Research anddevelopment

1.00 4 0.70 3 1.00 2 0.65 2

Qualitydevelopment

9.00 65 9.00 65 7.00 45 2.28 15

Marketdevelopment

15.00 279 15.00 280 17.00 150 4.68 53

Transport

assistance

28.00 210 40.52 259 40.00 210 28.12 150

Total 100.00 692 112.52

750 115.00 501 42.64 257




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X. Marketing Development Assistance (MDA)

To facilitate various measures being undertaken to stimulate and diversify the country’s exporttrade, Marketing Development Assistance (MDA) Scheme is under operation in theDepartment of Commerce. The Scheme supports the following activities:

• Individual exporters for participating in approved EPC/Trade bodies led exportpromotion activities abroad.

• Export Promotion Councils (EPCs) to undertake export promotion activities for theirproduct(s) and commodities.

• Approved organizations/trade bodies in undertaking limited exclusive non-recurringinnovative activities connected with export promotion efforts for their members.

• Focus Area export promotion programmes in specific regions abroad like Focus LACFocus Africa, Focus CIS and ASEAN+2.

• Residual essential activities connected with marketing promotion efforts abroad.

Details of outlays approved and actual expenditure under the MDA scheme during the period

2003-04 to 2009-10 are given below in Table 4.21.

Table 4.21Outlay and Expenditure

(Rs. In Crore)

Year Outlay Actual Expenditure2003-04 52.00 52.00

2004-05 55.00 55.00

2005-06 55.00 38.47

2006-07 52.25 52.25

2007-08 52.25 52.25

2008-09 52.25 52.25

2009-10 53.00 23.35*Source: Department of Commerce*Actual expenditure upto Dec.09

XI. Market Access Initiative (MAI) Scheme

The Scheme was launched to identify and address major issues relating to market access thatIndian exporters faced in various overseas markets. Under the scheme, assistance is extended tothe Departments of Central Government and organizations of Central/ State Governments,

Export Promotion Councils, Registered Trade Promotion organizations, Commodity Boards,Recognised Apex Trade Bodies, Recognized Industrial Clusters and individual Exporters forproduct 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 for Discovery Science (NIDS), National Institute of Fashion Technology (NIFT) etc., Research Institutions, Universities and recognizedlaboratories. The activities eligible for financial assistance under the Scheme are - Marketing



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Projects Abroad, Capacity Building, Support for Statutory Compliances, Studies, ProjectDevelopment etc.

During the year 2008-09, a total of 92 projects/export promotion events and studies/exportpromotion surveys were organized with the assistance under the MAI scheme, by different

Export Promotion Organizations/Trade Promotion Organizations/National Level Institution etc.During the year 2009-10, so far a total of 148 projects/studies were approved for receivingassistance under the scheme. Details of outlays allocated and actual expenditure incurred underthe scheme during the period 2003-04 to 2009-10 are given in Table 4.22 below:

Table 4.22Outlay and Expenditure

(Rs. in Crore)

Year Outlay Expenditure2003-04 44.00 9.00

2004-05 102.44 4.84

2005-06 40.00 19.912006-07 40.00 39.99

2007-08 45.00 44.99

2008-09 50.00 49.99

2009-10 *124.00 **48.62Source: Department of Commerce* At RE Stage, outlay reduced to Rs.64.00 crore** Actual expenditure upto Dec.09

XII. National Export Insurance Account (NEIA)

A separate Fund with an approved corpus of Rs.2,000 crore called the National ExportInsurance Account (NEIA) was set up in 2006 , out of which Rs.546 crore have been funded bythe Government so far. The present corpus of NEIA is Rs.646.89 crore (constituting premiumand interest accrued).

The objective of NEIA is to promote project exports from India, which may not take place butfor the support of a credit risk insurance cover which the ECGC is not in a position to providebecause of its own underwriting capacity. The objectives of NEIA were expanded by theGovernment in December, 2008, in view of the Global Financial Crisis, to provide for shortterm cover also. NEIA funds upto Rs.350 crore were allowed to be used for the financial years2008-09 and 2009-10 to provide the following benefits to the exporters:

• The ECGC cover for MSMEs to be enhanced to 95%.

• For MSMEs there would be no restriction on sectors on markets while for non-MSMEsthe support would be limited to Textiles (including handicrafts and handlooms), gemsand jewellery, leather, engineering products, carpets, project goods, auto componentsand chemicals.



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• The scheme would be available upto 31.3.2010 and would be reviewed thereafter. Forall policies sanctioned upto 31.3.2010, the claims could be processed in 2009-10 and2010-11.

• The increase of insurance risk cover to banks from 75% to 85% would be limited toMSME exporters only.

XIII. Export Credit Guarantee Corporation of India Ltd. (ECGC)

The Export Credit Guarantee Corporation of India Ltd. (ECGC) Mumbai was set up in 1957under the Companies Act, 1956. It has the primary objective of supporting the country’sexports by extending Insurance and Guarantee facilities to the Indian exporters and thecommercial banks. The paid up capital at the end of 2008-09 is Rs. 900.00 crore. ECGC hasregistered itself with the IRDA on 27

thSeptember, 2002 bearing Registration No. 124.

There were 13371 short-term policies including transfer guarantees and 103 long term policies,in force on 31.03.2009. The total value of shipment declared under the schemes (short-term

policies, transfer guarantees and factoring) amounted to Rs.68866.34 crore in 2008-09 ascompared to Rs.52766.57 crore in 2007-08, recording a growth of 30.51%.

The total claims paid during the year 2008-09 amounted to Rs.450.62 crore as compared toRs.420.02 crore in the previous year. During 2008-09, a total sum of Rs. 157.05 crore wasrecovered as compared to Rs. 210.20 crore in the previous year.

The total premium income from all the schemes of ECGC during 2008-09 amounted toRs.744.53 crores as compared to Rs. 668.37 crores in previous year. This premium income of ECGC mainly comprises Short Term Guarantee Business, accounting for 62.34% of the totalpremium income, followed by Short Term Policy sector including factoring, which contributed

33.11%. The income from medium and long term sector accounted for just 4.54% (Rs. 33.77crores) of the total premium income. During the year, ECGC achieved a growth of 11.39%.ECGC has a share of about 90% of the export credit insurance market in India inspite of competition from the public sector, as well as private sector insurance companies.

During 2008-09, the Corporation maintained same rates of premium, which was reduced by anaverage 10% in the previous year, across all sectors of business. This is inspite of adversedevelopments in the major export destination markets due to the onset of global recession,benefiting the export community. The full-fledged factoring services of ECGC registered a netincome of Rs.55.14 lakh as against Rs.25.98 lakh with total invoices factored amounting toRs.75.66 crore.

ECGC covers exports to 237 countries. The top five countries covered by ECGC during theyear were USA, UK, Germany, UAE and Italy. They represent about 45% of its total cover.Engineering Goods, Leather and leather manufactures, readymade garments, Chemical andallied products and Basic Chemical, Pharmaceuticals & Cosmetics are the top five commoditiescovered by ECGC during the year. These aggregate to Rs.24, 000 crore, representing 35% of the total value covered by ECGC during the year. ECGC has continued reinsurance with 20%under obligatory and quota share.



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The Corporation paid total dividend of Rs. 180 crore for the year 2008-09 as compared to Rs.162 crore paid during the previous year.

XIV. Price Stabilization Fund Scheme (PSF)

The Price Stabilization Fund Scheme was started from April 2003 with the objective of providing relief to small growers when the prices of coffee, tea, rubber and tobacco fall below aspecified level, without resorting to the practice of procurement operations by Governmentagencies.

The major achievements of the Scheme during the year 2009-10 are:

• As on November 30, 2009, a total of 46210 growers have been enrolled under the PSFScheme, of which 18914 are rubber growers, 11594 coffee growers and 15702 are teagrowers. Tobacco growers have expressed their unwillingness to join the scheme.

• Based on Price Spectrum Band 2008, all the commodities viz. Tea, Rubber and Coffeehave been classified under Boom Year due to good prices.

• Price Spectrum Band for 2009 is due for declaration in March/April 2010.

Since the launch of the Scheme in April 2003, the PSF Trust has announced Price SpectrumBands for 2003, 2004, 2005, 2006, 2007 and 2008, and the cumulative committed financialassistance stood at Rs.4.48 crore, as per details in Table 4.23. However, due to default bygrowers in depositing their contribution during normal years, assistance of only Rs.1.23 crorecould be released to tea and coffee growers as at the end of October 2009.

Table 4.23

Summary of PSF Scheme Pay-out(Rs. in crore)

Commodity PSB2003

PSB2004

PSB2005

PSB2006

PSB2007

PSB2008*

Total

RUBBER 0 0 0 0 0 0 0

COFFEE 0.82 0.58 0 0 0 0 1.40

TEA 0.09 0.73 0.74 0.75 0.77 0 3.08

TOTAL 0.91 1.31 0.74 0.75 0.77 0 4.48

* In Boom years, no payout liability of PSFT


Modified Personal Accident Insurance Scheme (PAIS)

Personal Accident Insurance Scheme (PAIS) had been introduced for grower members of PSFScheme as a social security measure in 2005 having a cover of Rs.25,000/-. This cover wasraised to Rs.1.00 lakh and premium is to be shared between the PSFT and beneficiary in theratio 50:50. 3505 growers could be covered during 2007-08.



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PAIS has since been modified by the Government which will be implemented by NationalInsurance Co. Ltd. during 2008-09 and 2009-10. Salient features of modified Scheme are asunder:

• The scheme will cover the growers in the sectors of Tea, Coffee, Rubber, Tobacco andSpices (Ginger, Chilly, Pepper, Turmeric and Cardamom) having plantations up to 4

hectares.• The Scheme will also cover the workers working on all plantations in the sectors of Tea,

Coffee, Rubber, Tobacco and Spices (Ginger, Chilly, Pepper, Turmeric and Cardamom)regardless of the size of the plantation.

• Growers in the sectors of Tea, Coffee, Rubber, Tobacco and Spices (Ginger, Chilly,Pepper, Turmeric and Cardamom) who have not enrolled themselves as members of PSFT earlier, will have to become members of PSFT by paying one time entry fee of Rs.100/- for the purpose of PAI Scheme coverage in addition to 50% share of theannual premium.

• Existing grower members of PSFT will not be required to pay any additionalmembership fee and will pay only their 50% share of the annual premium.

• The workers will not be required to pay any membership fee and will only pay the 50%share of the annual premium.

• The Scheme is targeted to cover approximately 60 lakh growers and workers in thesector of Tea, Coffee, Rubber, Tobacco and Spices (Ginger, Chilly, Pepper, Turmericand Cardamom).

• The annual premium of Rs.17/- (valid for 2008-09 and 2009-10) is to be shared betweenthe beneficiary grower/worker and PSFT in the ratio 50:50.

Progress under PAIS as on 30 November 2009.

As on 30.11.2009, a total of 3785 number of growers and 296 workers in Coffee Sector

have been provided insurance cover. Enrollment of growers and workers at auctionplatforms as also at the plantations by the Vendor in coordination with Commodity Boardsand Commodity Associations has begun. Field Level Meetings have also been conductedto address operational issues.

XV. Proposed Crop Insurance Scheme for Plantation Sector

Department of Commerce constituted a Task Force to make recommendations on the PlantationSector for improving the economic status of small growers. The recommendations of the Task Force were deliberated by the GoM and it was decided that the Crop Insurance Scheme for Tea,Tobacco, Rubber and Spices (chillies, cardamom, ginger, turmeric and pepper) may be taken

up for immediate implementation.

The Salient features of the Crop Insurance Scheme are as under:

• The Scheme is to be implemented for the growers of Tea, Rubber, Tobacco and Spices(Chillies, Ginger, Turmeric, Pepper and Cardamom).

• The Scheme will cover growers having landholding up to 10 hectares. For Tea andCardamom, the scheme will be extended to growers having landholding between 10-50



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hectares in view of the fact that the plantation size for these two sectors is quite largeand most of the medium sized plantations above 10 hectares are in financial distress.

• The Government will provide subsidy of 50% on the annual premium to growers havinglandholding up to 10 hectares. In case of growers of Tea and Cardamom having

landholdings between 10-50 hectares, the subsidy provided by the Government wouldbe restricted to 25%.• The project cost (Govt’s share) is estimated at Rs.728.86 crore over a period of 5 years.• The scheme is proposed to be funded out of PSFT’s interest earnings on its Corpus and

the balance through budgetary support from the Union Government. This wouldrequire a budgetary support from the Government to the extent of Rs.499.55 crore overthe project period.

• The Crop Insurance Scheme is proposed to be implemented by the respectiveCommodity Boards along with PSFT as the Nodal agency in the Department of Commerce and by a consortium of Insurance Companies led by AICL.

The issues regarding premium subsidy liability sharing between the Centre and the States areunder consideration at the highest level of the Government. Upon Government’s approval, theCrop Insurance would be taken up for implementation.

XVI.

• Based on the recommendations of the Task Force for the Plantation sector, GoMapproved a pilot project on “IOU” (I Owe You) in some selected areas.

Other Initiatives for the Plantation Sector:

• The pilot project is proposed to be implemented with the objective of developing “IOU”as an “instrument” designed to help the small growers/farmers in times of distress.

• The project is expected to be implemented over a period of five years. Latest estimates

received from the implementing agency viz India Development Foundation (IDF), hasput the project cost (for 5 years) at Rs.23.40 crore (including Rs. 19.20 crore towardspotential payout by PSFT in worst case scenario). In view of the high cost, the agencyhas been advised to scale down the pilot and the cost thereon.

XVII. Footwear Design & Development Institute (FDDI)

The Footwear Design & Development Institute was set up by Ministry of Commerce in 1986with an objective to provide one stop solution to the footwear and leather product industry.Since then FDDI is involved in Human Resource Development and providing other technicalservices such as testing, inspection, designing, consultancy etc. to the leather and leather

product industry. FDDI has expanded its services and its reach for both organized andunorganized sectors and has emerged as “Centre of Excellence” in its core area. The variousPostgraduate and Undergraduate level academic programmes of the Institute as per theacademic calendars 2008-09 & 2009-10, are being conducted successfully. A total of 524candidates have been selected to undergo training under various programmes.

In order to bridge the gap between the demand and supply of trained manpower in the Footwearand Leather Product Industry at all levels, the Government has approved the establishment of



75 | P a g e

three full fledged campuses of FDDI at Chennai (Tamil Nadu), Kolkata (West Bengal) &Rohtak (Haryana) and one Training centre at Chhindwara (Madhya Pradesh). All the campusesof FDDI would be equipped with a state-of-the-art library, computer lab, well furnished andcentrally air-conditioned building, class rooms and lecture halls, latest multi-media audio-video, educational support for international standards of delivery in the area of training and

consultancy services.

XVI. Modernization and Upgradation of DGFT

During 2008-09, a sum of Rs 6.00 crore was allocated for upgradation of Hardware /Software/Network and operations at DGFT. The budgeted amount was fully utilized. During2009-10, Rs 4.00 crore has been allocated. The entire amount would be utilized under DGFT’sEDI initiatives.



76 | P a g e

Annexure A

Year-wise allocation/releases made to the States/UTs under State Component of ASIDE Scheme

(Rs in crore

o. StateOutlay02-03

Release02-03

Outlay03-04

Release03-04

Outlay04-05

Release04-05

Outlay05-06

Release05-06

Outlay06-07

Release06-07

Outlay07-08

Release07-08

Outlay08-09

Release08-09

Outlay09-10

AndhraPradesh

12.00 12.00 13.00 13.00 13.85 13.85 15.45 15.45 17.00 17.00 21.20 21.20 19.20 18.12 20.41

Andaman &NicobarIslands

2.00 2.00 2.00 1.00 2.00 0.00 2.00 0.00 2.20 0.00 2.20 0.00 1.20 1.20 1.14

Bihar 3.00 3.00 6.50 0.00 2.00 0.00 2.00 0.00 2.20 0.00 2.20 0.00 2.20 0 2.09

Chandigarh 1.00 1.00 2.00 0.00 2.00 0.00 3.20 3.20 3.50 1.75 3.50 0 2.50 2.50 2.37

Chhattisgarh 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 5.50 5.50 5.50 4.35 5.50 0.00 5.22

Dadra &Nagar Haveli

1.50 1.50 3.00 0.00 2.00 0.00 2.000.00

2.20 0.00 2.20 0.00 1.20 0.00 2.42

Daman & Diu 1.50 1.50 3.00 0.00 2.00 0.00 2.00 0.00 2.20 0.00 2.20 0.00 1.20 0.00 2.42

Delhi 1.00 1.00 2.00 0.00 2.65 0.00 2.65 2.65 2.90 1.45 2.90 2.8351 1.90 0.00 3.12

Goa 6.00 6.00 6.00 6.00 3.73 3.73 6.09 6.09 6.70 0.00 6.70 6.70 5.70 5.70 5.41

Gujarat 14.00 14.00 15.00 15.00 35.78 35.78 43.38 43.38 47.70 47.70 60.35 59.725 58.35 58.35 59.57

Haryana 6.00 6.00 6.00 6.00 8.49 8.49 14.05 14.05 15.45 7.725 15.45 15.45 15.45 15.45 14.68

HimachalPradesh

7.00 7.00 7.50 7.50 5.00 5.00 5.535.53

6.00 6.00 6.00 6.00 6.00 6.00 5.70

Jammu &Kashmir 6.00 6.00 6.00 6.00 5.00 5.00 5.25 5.25 5.80 5.80 5.80 5.80 5.80 5.80 5.51

Jharkhand 4.00 4.00 4.00 4.00 5.00 0.00 5.00 0.00 5.50 2.75 5.50 2.75 5.50 0 5.22

Karnataka 18.00 18.00 19.00 19.00 24.14. 24.14 33.99 33.99 37.40 37.40 42.62 42.62 41.62 41.62 39.54

Kerala 11.00 11.00 12.00 12.00 9.30 9.30 10.69 10.69 11.75 11.75 11.75 11.75 9.75 9.75 9.26

Lakshadweep 2.00 2.00 2.00 2.00 2.00 0.00 2.00 0.00 2.20 0.00 2.20 0.00 1.20 0.00 1.14

MadhyaPradesh

20.00 20.00 11.00 11.00 14.35 14.35 14.35 14.35 15.80 7.90 15.80 15.80 14.80 14.80 14.06

Maharashtra 16.00 16.00 34.00 34.00 57.09 57.09 65.52 65.52 72.10 72.10 82.00 82.00 80.00 80.00 81.22

Orissa 4.50 4.50 10.00 10.00 6.05 6.05 6.93 6.93 7.65 7.65 8.92 8.92 7.92 7.92 9.14

Pondicherry 3.00 3.00 3.00 1.50 2.00 0.00 2.00 0.00 2.20 0.00 2.20 0.00 2.20 0.00 2.09



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Punjab 9.00 9.00 10.00 10.00 9.68 9.68 12.17 12.17 13.40 6.0 13.40 6.70 13.40 13.26 12.73

Rajasthan 12.00 12.00 13.00 13.00 13.20 13.20 13.20 13.20 14.53 7.96 14.53 14.53 13.53 13.53 12.85

Tamil Nadu 28.00 28.00 30.00 30.00 39.19 39.19 39.19 39.19 43.12 43.12 49.88 49.88 47.88 47.88 49.10

Uttar Pradesh 20.00 20.00 21.00 21.00 12.59 12.59 21.00 21.00 23.10 11.55 23.10 23.10 22.10 22.10 20.99

Uttaranchal 4.00 4.00 4.00 2.00 5.00 5.00 5.27 5.27 5.80 0.00 5.80 0.00 5.80 5.80 5.51

West Bengal 10.00 10.00 11.00 11.00 14.91 14.91 20.09 20.09 22.10 22.10 22.10 22.06 20.10 20.10 19.09

Total 226.50 226.50 260.00 239.00 304.00 282.35 360.00 343.00 396.00 323.21 436.00 402.17 412.00 389.88 412.00

orth Eastern Region ArunachalPradesh

1.00 1.00 1.25 1.25 2.51 0.00 2.51 2.51 2.76 1.38 2.76 2.76 2.76 0.00 2.76

2 Assam 4.00 4.00 5.00 5.00 11.49 11.49 12.57 12.57 13.83 6.915 13.83 13.83 13.83 13.83 13.83

3 Manipur 2.00 2.00 2.50 0.00 2.00 2.00 2.06 2.06 2.27 2.27 2.27 2.27 2.27 2.27 2.27

4 Mizoram 1.00 1.00 2.50 0.00 2.00 2.00 3.24 3.24 3.56 3.56 3.56 3.56 3.56 3.56 3.56

5 Meghalya 2.00 2.00 2.50 2.50 5.72 5.72 8.34 8.34 9.17 9.17 9.17 2.99 9.17 8.89 9.17

6 Nagaland 1.00 1.00 1.25 0.50 2.00 2.00 2.00 2.00 2.20 2.20 2.20 2.20 2.20 2.10 2.20

7 Sikkim 0.50 0.50 1.25 0.00 2.00 0.00 2.00 2.00 2.20 2.20 2.20 2.20 2.20 2.10 2.20

8 Tripura 3.00 3.00 3.75 3.75 8.28 8.28 7.28 7.28 8.01 8.01 8.01 8.01 8.01 5.01 8.01

Total 14.50 14.50 20.00 13.00 36.00 31.49 40.00 40.00 44.00 35.705 44.00 37.82 44.00 37.76 44.00

Grand Total 241.00 241.00 280.00 252.00 340.00 313.84 400.00 383.00 440.00 358.915 480.00 439.99 456.00 427.64 456.00



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Annexure BStatus of Major Projects under State Component

(Rs in Lakh)

S.No. State Project

ApprovalYear Total Cost

CostASIDE Cost SG

Cost Pvt.Sector

1 GujaratSetting up Marine DisposalEfflu. from Dahej Est. 2002-2003 17,600.00 4,400.00 4,400.00 8,800.00

2 GujaratFour Laning of Dahej BharuchRoad 2004-2005 23,054.00 8,800.00 14,254.00 0

3 Gujarat Surat - Hajira Rail Link Project 2006-2007 11,525.00 700 10,825.00 0

4 GujaratExpansion of Final EffluentTreatment Plant at Ankleswar 2008-2009 3,314.00 1,657.00 0 1,657.00

5 Gujarat

Construction of additional twolane road & widening of existing road from Daydra toNabipur Zanor at Bharuch. 2008-2009 3,972.00 1,986.00 1,986.00 0

6

Gujarat

Construction of four lane roadfrom Derol to Dayadra DistrictBharuch 2008-2009 2,426.00 1,213.00 1,213.00 0

7

Gujarat

Widening of existing four laneroad of Derol-Wagra-gandharupto Vilayat junction atDistrict Bharuch. 2008-2009 3,089.00 1,544.50 1,544.50 0

8

Haryana

Creation of 220 KV

Transformer BAY SEC-166KV Sub-station, IMT,Manesar 2007-2008 2,472.00 1,000.00 1,472.00 0

9

Haryana

Construction of IInd Unit of Common Effluent TreatmentPlant 21 MLD Capacity forDyeing Units, Sector-29,Panipat. 2007-2008 2,530.00 700 1,830.00 0

10Jharkhand

Adityapur Industrial WaterSupply Scheme 2004-2005 24,600.00 500 5,300.00 18,800.00

11 Jammu &Kashmir

ICD Rangreth, Sri Nagar,J & K 2004-2005 2,267.00 2,135.00 132 0

12Karnataka

Hassan Mangalore GaugeConversion 2003-2004 27,871.00 1,000.00 3,500.00 23,371.00

13

Karnataka

Improvement of Road from

Bangalore to Nandi viaInternational Airport 2007-2008 3,000.00 1,500.00 1,500.00 0

14

Karnataka

Formation of road betweenHope Farm - Whitefield toMalur Indl. Area 2007-2008 2,300.00 1,150.00 1,150.00 0

15

Karnataka

Improvement of Road fromBangalore - Magadi -Huliyurdurga- Tavarekere 2007-2008 4,100.00 1,000.00 3,100.00 0

16

Karnataka

Improvement of Road fromYelahanka - Doddaballapur -Hindupur 2007-2008 4,910.00 1,000.00 3,000.00 910

17Karnataka

Improvement of road NH4 toDevanahally ( 0 - 27 km) 2007-2008 2,800.00 1,400.00 1,400.00 0

18

Kerala

Kottayam - Nedumbassery Inl.

Airport Road (Dropped) 2004-2005 70,944.94 800 70,144.94 019

KeralaIntl Exhibition Trade Centre,Kochi (Dropped) 2004-2005 3,100.00 900 2,200.00 0

20

Maharashtra

Chakan Industrial Area -Construction of Link Roadbetween Talwade STP &Chakan Indl. Area 2006-2007 3,722.10 1,861.05 1,861.05 0

21Maharashtra

Construction of bypass Roadto Ahmednagar. 2006-2007 2,849.00 1,424.50 1,424.50 0

22 Maharashtra Upgradation of the facilities at 2006-2007 2,055.32 1,027.66 0 1,027.66



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66

Tamil Nadu

ELCOT - VADAPALANJI,MADURAI - Addl.Infrastructure to IT SEZ 2007-2008 2,790.00 500 2,290.00 0

67

Tamil Nadu

ELCOT - NAVALPATTU,TIRUCHIRAPALLI - Addl.Infrastructure to IT SEZ 2007-2008 3,260.00 500 2,760.00 0

68

Tamil Nadu

ELCOT -JAGIRAMMAPALAYAM,SALEM - Addl. Infrastructureto IT SEZ 2007-2008 21,800.00 1,000.00 0 20,800.00

69

Tamil Nadu

TIDEL PARKCOIMBATORE - IT Park atCoimbatore 2007-2008 33,500.00 1,800.00 0 31,700.00

70Tamil Nadu

SIPCOT - ENGINEERINGGOODS SEZ AT RANIPET 2007-2008 3,100.00 1,000.00 2,100.00 0

71

Tamil Nadu

SIPCOT- InfrastructureDevelopment at PerunduraiSEZ 2007-2008 5,280.00 1,000.00 4,280.00 0

72Tamil Nadu

ELCOT - VADAPALANJI,MADURAI - IT Park 2006-2007 4,008.00 500 0 3,508.00

73Tamil Nadu

ELCOT - NAVALPATTU,TIRUCHIRAPALLI - IT Park 2006-2007 4,803.00 500 0 4,303.00

74

Tamil Nadu

ELCOT -VISWANATHAPURAM,HOSUR - IT Park 2006-2007 3,415.00 500 0 2,915.00

75

Tamil Nadu

ELCOT -JAGIRAMMAPALAYAM,SALEM - IT Park 2006-2007 4,068.00 500 0 3,568.00

76

Tamil Nadu

ELCOT -GANGAIKONDAN,TIRUNELVELI - IT Park 2006-2007 2,770.00 500 0 2,270.00

77Tamil Nadu

ELCOT - ILANDAIKULAM,MADURAI - IT Park 2006-2007 21,300.00 1,000.00 0 20,300.00

78Tamil Nadu

TIDCO - Automobile & AutoComponent SEZ, Tiruvallur 2006-2007 65,000.00 500 0 64,500.00

79Tamil Nadu

TIDCO - Nanguneri SEZ,Nanguneri, Tirunelveli Dist. 2006-2007 1,02,500.00 500 0 1,02,000.00

80

Tamil Nadu

TIDCO - India-SingaporeMultiproduct SEZ inTiruvallur Dist. 2006-2007 1,06,400.00 200 0 1,06,200.00

81

Tamil Nadu

TWICL - CETP for TirupurTextile Processing Industriesat Tirupur 2006-2007 42,187.00 1,000.00 3,000.00 38,187.00

82

Tamil Nadu

ELCOT -SHOLINGANALLUR - ITSEZ 2006-2007 17,709.00 500 15,209.00 2,000.00

83 Tamil Nadu TIDCO - Perambalur SEZ 2006-2007 1,50,000.00 500 2,000.00 1,47,500.00

84

Tamil Nadu

SIPCOT-SEZFORTRANSPORTENGINEERING GOOD ATGANGAIKONDAN -UPGRADATION OFINFRASTRUCTURE 2008-2009 3,795.00 1,250.00 2,545.00 0

85

Tamil Nadu

TIIC - IT - SEZ at

Sholinganallur 2006-2007 58,000.00 500 57,500.00 086

Tamil Nadu

SIDCO - CAAIIUC- Infra inthe Industrial Estates of Ambattur, Thirumzhisai &Thirumudivakkam 2006-2007 6,110.00 1,168.00 3,063.00 1,879.00

87

Tamil Nadu

MAHINDRA - Provision of Infrastructure for Apparel &Auto Components SEZs of MAHINDRAS atKancheepuram Dist. 2006-2007 28,255.00 433 0 27,822.00



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88Tamil Nadu

TIDCO - Hosur SEZ atKrishnagiri Dist. 2006-2007 51,500.00 500 0 51,000.00

89Tamil Nadu

ELCOT - VILANKURICHI,COIMBATORE - IT SEZ 2006-2007 5,690.00 300 5,390.00 0

90

Tamil Nadu

SIDCO - Development of Infrastructure facilities atGuindy Industrial Estate,Chennai 2005-2006 2,226.00 1,212.00 620 394

91

Tamil Nadu

MAHINDRA - Formation of Approach Road connectingNH45 to Mahindra IndustrialPark-SEZ (CANCELLED) 2004-2005 30,000.00 443 220 29,337.00

92

Tamil Nadu

SIPCOT - Water SupplyAugmentation to IndustrialPark and SEZs atIrungattukottai andSriperumbudur - Revised 2005-2006 9,000.00 2,400.00 500 6,100.00

93Tamil Nadu

TNTPO - Convention Centreat Chennai Trade Centre 2002-2003 2,684.00 650 0 2,034.00

94 Tamil Nadu Tirupur Water Supply Project 2002-2003 1,02,300.00 3,000.00 2,500.00 96,800.00

95Tamil Nadu

TICEL - TICEL Bio Park Project 2003-2004 6,250.00 800 258 5,192.00

96Tamil Nadu

TNRDC - IT Corridor Project,Chennai 2003-2004 29,000.00 2,250.00 6,150.00 20,600.00

97 Tamil Nadu TIDCO - SEZ at Ennore 2003-2004 95,000.00 200 1,100.00 93,700.00

98Tamil Nadu

TIPRL - Rubber Product SEZ,Kanyakumari Dist. 2003-2004 2,532.00 215 604 1,713.00

99Uttranachal

Cyber Tower, IT Park,Dehradun 2006-2007 4,275.00 1,000.00 1,095.00 2,180.00

100Uttranachal

Central Effluent TreatmentPlant, IIE, Haridwar 2005-2006 2,200.00 500 0 1,700.00

101 Uttranachal Electronic & IT Park 2002-2003 2,918.00 523 275 2,120.00

102Uttar Pradesh

SEZ Moradabad (LandAcquisition) 2003-2004 2,650.00 2,650.00 0 0

103West Bengal

Setting up Gem & JewelleryPark in Salt Lake (SEZ) 2002-2003 2,498.00 500 1,998.00 0

104

West Bengal

Permanent Trade FairComplex (Milan Mela),Kolkata 2005-2006 4,500.00 2,100.00 2,400.00 0

105

West Bengal

Creation of Infrastructurefacilities in MullickghatFlower Market 2006-2007 2,583.00 100 2,483.00 0

106

West Bengal

Tea Logistic Hub consisting of Processing Storage, Packing,Distribution and GlobalAuction at Dabgram,Jalpaiguri 2008-2009 2,433.00 530 1,903.00 0

107West Bengal

Export Logistic Hub, Dry Portfor Cargo 2008-2009 2,527.00 630 1,897.00 0

108

West Bengal

Development of Food Park (Phase-II) at sankrail inHowrah 2007-2008 3,000.00 500 2,500.00 0

109West Bengal

Paridhan, the Garment Park (Phase-II) 2007-2008 3,046.50 1,000.00 2,046.50 0



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Annexure CDetails of Major Projects under Central Component of ASIDE

(Rs in lakh)

S. No. Project Name Central AgencyYear of sanction

Total CostContributionfrom ASIDE

Total Amt.releasedunderASIDE

CumulativeExpenditurefrom ASIDE

1. Trade Facilitation Centre atKolkata

Engineering EPC,Kolkata

2001-2002 1,300.00 650.00 650.00 650.00

2. Second module CETP at

Leather Computer, Jalandhar

PSIEC 2001-2002 1,680.00 840.00 400.00 40 0.00

3. Construction of Multi StoreyedStandard design factory(SDF) inCSEZ

Cochin SpecialEconomic Zone

2002-2003 966.00 966.00 966.00 966.00

4. Development of infrastructurefacilities at CSEZ

Cochin SpecialEconomic Zone

2002-2003 867.85 867.85 867.85 867.85

5. Indian Institute of Gems &Jewellery at MIDC, Mumbai

Gems &JewelleryExport PromotionCouncil, Mumbai.

2002-2003 1,254.00 627.00 627.00 627.00

6. Setting up of Trade-cum-Exhibition centre at Guwahati.

India TradePromotionOrganisation, NewDelhi.

2002-2003 2,074.70 2,074.70 2,074.70 1,906.71

7. Rehabilitation at KFTEZ Kandla SpecialEconomic Zone

2002-2003 765.49 765.49 765.49 607.49

8. Purchase of 26 Modules fromNBCC in SDF III building inMSEZ

Madras SpecialEconomic Zone

2002-2003 915.37 915.37 626.31 626.31

9. Setting up of LABs (HPLC MS-MS) for WB, TN, Karnataka,Orissa

Marine Product E.D.Authority, Cochin

2002-2003 660.00 600.00 600.00 600.00

10. Construction of RCC Road andproviding 50 MM thick BM and2.5 MM thick AC treatment toremaining roads

SEEPZ SpecialEconomic Zone,Mumbai

2002-2003 2,112.88 2,112.88 361.41 261.00

11. Development of phase II atVSEZ

VishakhapatnamSpecial EconomicZone

2002-2003 750.00 233.52 233.52 233.52

12. Setting up of Trade-cum-

Exhibition Centre at Kolkata

West Bengal Trade

PromotionOrganisation,Kolkata

2002-2003 1,500.00 1,500.00 664.15 664.15

13. Development of Surma Trunk Road from Karim Ganj toSutarkhadi

Border RoadsOrganisation, NewDelhi.

2003-2004 1,820.75 866.70 866.70 791.00

14. India Exposition Mart at GreaterNoida

Export PromotionCouncil Handicrafts,New Delhi.

2003-2004 17,000.00

1,200.00 1,200.00 1,200.00

15. Construction of Industrial Shed,filling of land & improvement of existing road at FSEZ

Falta SpecialEconomic Zone

2003-2004 523.48 523.48 523.48 523.48

16. IL&FS for developing projectsfor SEZs

ILFS 2003-2004 2,000.00 1,000.00 1,000.00 500.00

17. RTPCs at Chennai & Bangalore India TradePromotionOrganisation, NewDelhi.

2003-2004 3,314.00 2,485.00 2,332.22 2,332.22

18. Infrastructure development atMangalore Port Trust

NEWMANGALOREPORT TRUST

2003-2004 517.76 417.76 417.76 417.76

19. Installation of fire detection /firefighting systems in the existingSDF Block No.A-G in NSEZ

Noida SpecialEconomic Zone

2003-2004 585.00 585.00 585.00 531.03

20. IInd Instalment of Export APEDA 2004-2005 627.00 627.00 627.00 627.00



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43. Network of ducts for electricalcables


2006-2007 900.00 900.00 450.00 450.00

44. Setting up of 33 KVA sub-station


2006-2007 566.00 566.00 566.00 566.00

45. Infrastructure Development atNathula Border

Sikkim IndustrialDevelopment andInvestmentCorporation Ltd.,(SIDICO), Sikkim

2006-2007 1644.17 1644.17 1,636.24 835.24

47. Construction of 132/33 KV sub-station


2006-2007 900.00 900.00 900.00 100.00

48. Export Development Fund forNE Region of India

APEDA 2007-2008 1,600.00 1,600.00 1,600.00 0.00

49. AEZ Projects for Kerala,Madhya Pradesh, Maharashtra

APEDA 2007-2008 954.00 954.00 954.00 0.00

50. International Animation Schoolat KINFRA

Government of Kerala

2007-2008 2,057.00 686.00 456.00 228.00

51. Development of theInfrastructure Facilities atKollam Port, Kerala

Government of Kerala

2007-2008 1,280.00 1,280.00 1,280.00 500.00

52. Construction of Rail OverBridge (ROB) in Dadri, U.P.

Greater NoidaIndustrialDevelopmentAuthority, Uttar

Pradesh

2007-2008 4,500.00 1,250.00 450.00 0.00

53. City Centre of IDI, Surat Indian DiamondInstitute

2007-2008 1,180.00 472.00 472.00 359.04

54. Construction of one additionalSDF L block


2007-2008 1,933.51 1,933.51 1,933.51 600.00

55. Setting up Lab cum TrainingCentre, Delhi

Spices Board,Kochi.

2007-2008 500.00 500.00 50.00 0.00

56. Setting up of Spices Park atChhindwara, Madhya Pradesh

Spices Board,Kochi.

2007-2008 1,860.00 1,698.60 1,698.60 895.00

57. Setting up of Common EffluentTreatmetn Plant (CETP) atTripur

Tamil Nadu WaterInvestment CompanyLtd., Chennai

2007-2008 42,100.00

3,000.00 3,000.00 3000.00

58. Construction of SDF Building VishakhapatnamSpecial Economic

Zone

2007-2008 900.00 750.00 750.00 375.00

59. Construction of Additional TwoFloors


2007-2008 500.00 400.00 400.00 200.00

60. Three infrastructure projects (i)11 collection centre forvegetables, M.P. (ii) centre forPerishable Cargo, Cochin and(iii) Centre for perishable cargo,Kolkata

APEDA 2008-2009 3,870.00 1,092.00 1,092.00 0.00

61. Development of LCS atPhulbari

Government of WestBengal

2008-2009 1,403.00 871.85 300.00 0.00

62. Development of LCS at Hilli Government of WestBengal

2008-2009 773.00 654.00 300.00 0.00

63. Setting up of Trade Centre atBaddi, Dist. Solan (HP)

Himachal PradeshState IndustrialDevelopmentCorporation

2008-2009 1,081.00 540.00 540.00 0.00

64. Setting-up of two CommonEffluent Plants (CETPs) inJammu & Kashmir at IndustrialGrowth Centes at Lasipora(Pulwama) and Samba

Jammu & KashmirState IndustrialDevelopmentCorporation Ltd.

2008-2009 641.55 320.00 320.00 164.36

65. Setting up of International TradeCentre at Pampore (J&K)

Jammu & KashmirState Industrial

2008-2009 4,000.00 3,000.00 500.00 0.00



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DevelopmentCorporation Ltd.

66. Developing InfrastructureFacilities at Pithampur (Indore)SEZ

Madhya PradeshAudyogik KendraVikas Nigam Ltd

2008-2009 691.47 500.00 100.00 100.00

67. Setting up of Common Pre-processing Centres (CPCs) atSakthikalangara & Ambalapuzhain Kerala

Marine Product E.D.Authority, Cochin

2008-2009 586.00 526.00 263.00 0.00

68. Construction of 33/11 KV newsubstation


2008-2009 525.36 525.36 525.36 173.29

69. Border Trade Mart, Nathula Sikkim IndustrialDevelopment andInvestmentCorporation Ltd.,(SIDICO), Sikkim

2008-2009 850.00 850.00 455.00 0.00

70. Setting up of Quality EvaluationLaboratory cum Training Centreat Chennai

Spices Board,Kochi.

2008-2009 600.00 600.00 600.00 0.00

71. Setting up of Quality EvaluationLaboratoty cum Training Centre,Kolkata

Spices Board,Kochi.

2008-2009 500.00 500.00 250.00 0.00

72. Establishment of SteamSterilization unit Chindwara, MP

STCL Limited 2008-2009 804.00 629.00 629.00 0.00

73. Construction of a road from

Pragpur Chowkdi to Adani Port,Mundra (Gujarat)

Govt. of Gujarat 2009-2010 2,600.00 1,300.00 450.00 0.00

74. Construction of Sheds Kandla SpecialEconomic Zone

2009-2010 864.00 864.00 700.00 25.00

75. CC roads and duct (Electrical/ Communication


2009-2010 902.70 902.70 902.70 0.00



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Annexure D

Details of Major Projects under Export Development Fund

(Rs. In Lakh)

Sl.No.

Project State / Agency Year of Sanction

AmountSanctioned

AmountReleased

1. Pilot Project for handloom exports fromArunachal Pradesh

Government of Arunachal Pradesh

2001-02 213.00 213.00

2. Pilot Project Handloom ExportPromotion from Nagaland

Government of Nagaland 2002-03 205.00 205.00

3. (i) Project for Aggressive InternationalMarketing of North EasternHandicrafts

(ii) For setting up of InternationalMarketing Cell

EPCHEPCH

2002-032005-06

404.00106.06

404.00106.06

4. Replication of Pilot Project forhandloom exports in Upper SiangDistrict of Arunachal Pradesh on thelines of project sanctioned at Bomdilla


2003-04 213.00 213..00

5. Project for Handicrafts Artisans ExportInfrastructure Training and InternationalMarketing for Arunachal Pradesh


2004-05 218.50 218.50

6. Project for setting up of Patkai Labs atGuwahati, AssamAdditional funding

Government of Assam 2004-05

2007-08

207.37

59.50

207.37

59.50

7. Project for Export PromotionInfrastructure for 2 TPH Passion FruitProcessing plant in Manipur.

Government of Manipur 2005-06 250.00 250.00

8. Project Proposal for creation of integrated trade information and stayfacility centre for traders at Moreh

Government of Manipur 2006-07 370.00 185.00

9. Project Proposal for Floriculture inMizoram

M/s Zopar Export Pvt.Ltd. Chanmari , Aizawl

2006-07 210.94 105.47

10. Rubber wood based doormanufacturing unit

Tripura ForestDevelopment andPlantation CorporationLimited

2007-08 508.40 200.00



88 | P a g

AnnexureScheme wise performance of MPEDA during 2009- 10

Name of Scheme

Financial Performance(Rs. lakh)

Physical Performance/ Quantifiable Deliverables

Outcome01.03.2009 TO

30.11.2009

Remarks

Outlay2009-10

REProposed

2009-10

TotalExpenditure

upto30.11.2009

Target01.12.2009

To31.03.2010

Target 2009-10 Achievement01.03.2009 to 30.11.2009

100 MARKETPROMOTION

2545 2545 582.34

Brand Building 1100 1100 102.94 997.06

Strengthening the brand image of

Indian Marine Products in overseasmarkets. Enhancing the brand equityof Indian Black Tiger shrimp in majormarkets like USA, EU and Japan.Enhancing value addition to promoteIndia as a seafood processing hub. Tohelp Indian seafood processors inpromoting their products ininternational super markets throughco-branding by entering intoagreements with major buyers whoare having very good reputation inoverseas markets.

Entered into an MoU with

Sysco for co-branding.MPEDA Logo with theirPortico brand to arrest thedecline of export of shrimpsto USA.

Brand equity promotion

of Indian Black TigerShrimp in USA helps toincrease brand imageour product and therebyexport.

New Scheme.

The promotion progwill be implementephases. Ist phase programme will completed by the endfinancial year. 50%expenditure proposedincurred have to be MPEDA.

Publicity 122 122 35.99 86.01 25 Nos. of various Publicity literature,brochures to be produced.

Purchase of machinery/ equipmentswill be undertaken to upgrade thephotographic studio to meet theexpected standards.

60 External and 25 internal

advertisements would be released inmagazines/ journals to promote logofor Indian sea foods abroad.4 sales team delegation

19 Nos. of various publicityliteratures, brochures werebrought out.

94 Nos. advertisements have

been released in variousnational/international leadingfishery magazines/journals.

Disseminatedinformation among theexporters as well aspublic about theschemes of MPEDA andalso various productsexported from India.

Publicity of IndianMarine products inoverseas markets.

Continuing Scheme.



89 | P a g

Name of SchemeFinancial Performance

(Rs. In lakh)Physical Performance/

Quantifiable Deliverables Outcome01.03.2009 to

30.11.2009Remarks

Outlay2009-10

REProposed

2009-10

TotalExpenditure

. Upto30.11.2009

Target01.12.2009

to31.03.2010

Target 2009-10Achievement

Upto 30.11.2009

Participation inInternational Fairs.

150 150 101.93 48.07

10 International + 7 Domestic Fairs.For increased acceptance of Indianseafoods in overseas markets andstrengthen our existing markets andpenetration into new markets, we areparticipating in International fairs.

MPEDA participated in 6international fairs to get awide acceptance to ourproducts on overseas marketsand to enable to firm up ourtrade relations.

MPEDA also participated in 7domestic fairs.

Increased acceptance of Indian seafoods inOverseas markets.Strengthen our existingmarkets and penetrationinto new markets.Increase in export of value added productsand hence a higherexport turnover.

InformationTechnology

40 40 24.85 15.15 Provide correct information in righttime.

Online access tobeneficiaries.

Trade Promotionoffices

410 410 230.55 274.70Operation of existing TPOs at Tokyo

and New York.Increased exports toJapan, USA and bettertrade relations.

Sea freightAssistance

600 600 0.00 0.00 Import of raw material for processing(200 containers).Promote export of specific valueadded products (2500 containers).

India evolving into aseafood processing hub,increased exports of value added productsand increaseemploymentopportunities.

New Scheme.Scheme approved by Mvide No. 2/14/2006-EPdated 22.07.2009



90 | P a g

Name of Scheme

Financial Performance(Rs. Lakh)

Physical Performance/ Quantifiable Deliverables Outcome

01.03.2009 to30.11.2009

Remarks

Outlay2009-10

REProposed

2009-10

Totalexpdtr. Upto30.11.2009

Target01.12.2009

to31.03.2010


Upto 30.11.2009

Market Assistance1. Developmentalassistance for exportof ornamental/ aquarium fishes2. Insurance scheme

for workersemployed in the fishprocessing/pre-processing units

20 20 11.50 13.40

15 (ornamental /aquarium fish)

10,000 workers for insurance scheme

6

3891

Improvement in socialsecurity , morale of workers.

Exports of ornamentalfish will increase.

Scheme aims to provisocial and financial sefor the insured and thedependents.

Establishment 90 90 74.58 15.42 - Salary and otherestablishment expense

200 CAPTUREFISHERIES 800 800 403.51 396.49

Promotion of TunaFishing 550 550 225.48 351.17 Conversion of 110 vessels to Tuna long

liners.18 vessels convertedas tuna long liners.

Additional productionand export of tuna invalue added form.

Assistance tofishermen for betterpreservation of catch

160 160 123.75 52.25Upgradation of 200 boats with insulated / refrigerated fish hold / RSW system and icemaking facilities on board vessels. Reducewastage of fish by 5%.

210 vesselReduce on boardwastage of fish catch by5% and providing betterpreservation of catch.

Engagement of TechnicalConsultants

45 45 27.70 17.30Training of fishermen intuna fishing, squid

jigging and use of FAD

helps to increaseproduction from capturefisheries.

Conservation of marine resources.

10 10 0.80 9.20Training of fishermen in tuna fishing,(15 programmes), squid jigging (15programmes) and the use of FAD toincrease production from capture fisheries.It is proposed to conduct series of workshops/seminars on the conservation of marine resources.

Certification of selectedIndian fisheries forensuring sustainabilityby availing assistancefrom internationalcertification agencieswill get wide acceptancein the internationalmarkets.

Establishment 35 35 25.78 13.22 Salary & other establiexpenses



91 | P a g

Name of Scheme

Financial Performance(Rs. lakh)


Outcome 01.03.2009 to30.11.2009 RemarksOutlay

2009-10RE

Proposed2009-10

Totalexpenditure

Upto30.11.2009

Target01.12.2009

to31.03.2010


Upto 30.11.2009

300CULTUREFISHERIES

1525 1555 733.92 821.08

Development of Hatcheries 40 15 6.00 9.00 Setting up of 3 new hatcheries 1 No. Hatchery

Helps to improve thequality of seed

production.

A good nutechnicians are

Assistance toFarmers 600 600 180.82 416.27

Assistance to 300 societies and 362 trainings /farmers meet/antibiotic campaigns etcDevelopment of 305 ha of new farms and500 ha Padasekharams,260 ha organic farming8 demonstration programmes, .

Assistance to 5Societies,DevelopmentAssistance to 64.62has. Of new farms,138.52 haspadasekharams, 2 nos.training programmes.

Achievement of costreduction and fetchingof premium price by theadoption of BMP andorganic culture.Increase in production of shrimp and scampi,finfish,shellfish etc.,

25% women participageneral training and trfor SC/ST members.

Shrimp HealthManagement.

48 40 13.14 26.86 Establishment of 5 PCR Labs and 20 No.ETS Unit

2 Nos. PCR Labs and1 No. ETSUnit.

Production of healthyseed and thereby healthyraw material for export.

GIS Mapping of Shrimp/Scampi farm 100 100 0.76 99.24

Mapping of GIS work in the state of Karnataka, Goa, Kerala, Orissa, Tamil Naduand Gujarat in the process of completion.

Achievement of traceability formonitoring qualitycontrol measures.

Promotion of Ornamental Fishbreeding for exports

237 300 167.64 132.36Setting up of 56 nos. ornamental fishbreeding units and marketing societies.

63 units Increase in productionand export of ornamental fish

Employment generatirural/semi urban areasEnhanced income & s

of living.

Establishment 500 500 365.56 134.44 Salary & Other establexpenses.



92 | P a g

Name of Scheme

Financial Performance(Rs. Lakh)

Physical Performance/ Quantifiable Deliverables Outcome

01.03.09 to 30.11.09 Remarks

Outlay2009-10

REProposed

2009-10

Totalexpenditure

Upto30.11.2009

Target01.12.2009

to31.03.2010


Upto 30.11.2009

400PROCESSINGINFRASTRUCT-URE AND VALUEADDITION

1330 1283 484.30 798.70

Assistance forExporters for valueaddition

500 500 97.58 402.42 9 Beneficiaries including 16 nos. ice plants 1 No. Beneficiary Helps to increase theratio of value addedproducts.

Cold chain forseafood Industry 300 300 154.65 145.35 168 Beneficiaries including 15 nos. ice plants 36 Beneficiaries Improve quality of

ice/quality of storage.

Assistance toExporters forchilled/dried fish

100 100 0.60 99.40 3 Beneficiaries The export of chilled/dried fish itemsis likely to increase

New Scheme. Sanctio24.10.08 and 27.08.20

Special EconomicZone.

50 3 2.97 0.03 Set up one SEZ each in West Coast (Gujarat)and East Coast (Andhra Pradesh)

The facility is to becreated exclusively forprocessing and packingof value added seafooditems for export

The work relateidentification of suitafor SEZ is in progress

Establishment 380 380 228.50 151.53 Salary & Other establexpenses



93 | P a g

Name of SchemeFinancial Performance

(Rs. lakh)


Outcome 01.04.2009 to30.11.2009

Remarks

Outlay2009-10

REProposed

2009-10

Totalexpenditure

Upto30.11.09

Target01.12.2009

to31.03.2010


Upto 30.11.2009

1 2 3 4 57

9 10 11

500QUALITY

CONTROL

1100 1262 803.66 458.34

MPEDA LABS atCochin,Bhimavaram,Nellore &Bhubaneswar1.National ResidueControl Plan

250 250 142.11 107.89National Residue Control Plan (NRCP) –2009 (Calendar year basis)1423 nos. of samples and 86 other tests.

1409 samples(NRCP) and655 other samples

analyzed.

Monitoring the residuelevel of antibiotics helpsto take corrective actionto provide safer product.

Quality upgradation250 496 332.78 163.22

Subsidy for Captive PPC 15 beneficiaries,Subsidy for Independent PPC 3beneficiaries, Subsidy for Mini Lab 13beneficiaries, Subsidy for ELISA TestEquipment 10 beneficiaries.

Mini Lab – 5Captive PPC – 6 Nos.Independent PPC – 5 Nos.Elisa Lab - 10

Helps to ensurereduction in bacterialcontamination andexport of qualityproducts.

Assistance for upgradation of SeafoodPlants to EUStandards.

100 70 50.43 19.57Seafood plants to EU standards 15beneficiaries. 9 Nos.

Helps to ensurereduction in bacterialcontamination andexport of qualityproducts.

Quality System

Management200 145 40.27 104.73

6 training programmes Training of

TechnologistsTwo visits by inspectionteams/delegations. Up gradation of 7fishing harbours

3 Nos. Training,

2 Nos. Delegations, and5 Nos. fishing harbours.

Upgradation of fishing

harbours help toimprove the quality of catch landed.

Extension EducationProgramme

(NETFISH)130 130 115.00 15.00

2400 programmes 1948 programmescompleted.

Increased awarenessamong fishermen on fishquality management andconservation of resources.

Continuing S

Establishment 170 171 123.07 46.93 Salary & Other establexpenses



94 | P a g

Name of Scheme

Financial Performance(Rs.lakh)


Achievement upto30.11.2009

Outcome 01.04.2009 to30.11.2009

Remarks

Outlay2009-10

REProposed

2009-10

TotalExpenditure

. Upto30.11.2009

Target 01.12.2009to 31.03.2010 Target 2009-10

600RESEARCH ANDDEVELOPMENT

1700 3000 1000.00 2000.00Technology transfer training &

administrative Complex – Sirkali, TamilNadu

90% of work completed. Strengthening theaquaculture productionof export orientedspecies.

The construction remaining componentcomplex will be taduring the remaining of 09-10.

Development of hatchery and grow outtechnology for Seabass at Thoduvai &

Karaikkal –a) Continuous production of seedb) Construction of facilities in hatcherylike Office, Reservoirs & link acrossBuckingham Canalc) Transfer of Quarantine animals of Recirc systemsd) Purchase of New Farme) Farming of Seabass in cages

Approximate 3.20 lak fingerlings have been

produced and marketedand approx.60,000fingerlings are ready tosupply to demofarms/farmers/hatcheriesetc.

Diversification of aquaculture production

for export has beencommenced with theintroduction of thetechnology on farmingof seabass in India andthe hatchery productionof seed by RGCAfacilitate to improve theproduction of theexportable variety of fish from all over India.

Development of hatchery and grow outtechnology for Grouper at Andamansa)_ Production of seed by standardi-zingthe larval rearing techniquesb) Production of fingerlings &standardizationc) Development of live feed &standardization

Production of GrouperFingerlings, the highvalued export qualitycoral fish was achievedfor the first time in India.Standardization of largescale production isunderway at the leasedfish fish hatchery, suitablemodified by RGCA.

The production of fingerlings of grouperfish in RGCA Hatcheryhas opened anotheropportunity to producethe high valued exportquality coral fishes inIndia throughaquaculture.

Pilot Scale Marine fin fish – Cobia as

candidate species Trivandruma) Infrastructure improvements in thehatchery at Pozhiyoorb) Broodstock collection & conditioningc) Development of technology for larvalrearing

Infrastructure

developments at thehatchery have beenprogressing, broodstock collection andconditioning has beencontinuing. Live foodproduction of larvalrearing is under progress.The consultants fromTaiwan are providingnecessary assistance tobreed the Cobia fish, thecandidate speciesidentified.

The breeding of Cobia

fish opens newaquaculture prospects onproduction of highvalued marine fin fishfor export from India.



95 | P a g

Name of Scheme

Financial Performance(Rs. Crore)

Physical Performance/ Quantifiable Deliverables Outcome 01.04.09 to

30.11.09Remarks

Outlay2009-10

REProposed

2009-10

Fundreleased

3rdquarter

Target 3rdquarter

Target 2009-10AchievementUpto 30.11.09

Standardization of Artemia cysts& biomass production, Tuticorin

–a) Standardization of productionlevel of cyst & biomassb) processing of cysts & biomass

Infrastructure development workssuch as clay blanketing and PVC

lining of ponds, preparation of evaporation ponds, waterpumping system, establishingvacuum packing unit for Artemiacysts, processing unit for Artemiabiomass etc., have beencompleted.

Standardization of Artemia cyst and

biomass productionthrough aquaculturefarming would facilitatethe captive productioncapabilities of the livefood for shrimp, marinefin fish and ornamentalfish hatcheries in India.

Scampi Broodstock &Development Project,Vijayawadaa) Development of neo-femaleb) Development of progeniesfrom three stainsc) Diallel crossing of stains

Broodstock developmentprogramme from the threedistinctive strains of wild freshwater prawn is in progress.Experiments to develop neo-females to produce all male prawnseed is in progress.

High quality brood stock helps revival of scampifarming in India.Neo-female productionhelps to the productionof all male seeds forscampi farming to attainhigher yield per unitarea.

Domestication of Tiger ShrimpProjecta) Infrastructure development forNBCb) Seed production from PilotScale BMC at Channai

a) Reservoir Constructedb) Office Building and Maturationand larval rearing blocks arenearing completion.c) Pilot scale BMC at Chennaiestablished and maturation of stocks progressing for productionof SPF seed for field trials.

Production of SPF seedsof P-monodon from G3Generation helps toconduct grow out trials.Study with University of Arizona may provide anopportunity to developPCR kit for detection of IGHS in broodstock.



96 | P a g

Development of technology forMud Crab Hatchery & farminga) Construction of full fledgedHatchery for Mud Crabb) Seed Production in Pilot ScaleHatcheryc) Farming demonstration

Various phases of the constructionof the full scale mud crabhatchery is in progress. Pilotscale hatchery operation is inprogress.Trial production of crab instarsare in progress.Pen culture of crabs and trials forproduction of soft shell mud crabat the demo farm is in progress.

Development of technology for crab seedproduction will facilitateincrease in production of mud crab throughaquaculture project.

Development of grow out &hatchery for Tilapia

Shrimp Broodstock & NaupliProduction Centre

3 Officials attended World FishCentre, Malaysia. Preparation of ponds for stocking Tilapiafingerlings has been completed.

The Centre was operated fromNeelankarai to facilitateproduction of disease free seeds isproposed to operate fromOSSPARC Hatchery by utilizingthe SPF brookstock beingproduced at Andamans

Development of appropriate technologyfor Tilapia seedproduction and farmingwill strengthen theexport production baseof India as Tilapia is aleading exportcommodity in seafoodmarket.Production of diseasefree seeds of tigershrimp enhancesproduction of shrimp forexport.

TOTAL 9000 10445



97 | P a g e

CHAPTER V

FINANCIAL REVIEW

The total expenditure (Plan and Non-Plan) of the Department during the financial year 2007-08 was Rs.3647.90 crore. As against this, the total expenditure (Plan and Non-Plan) for the

year 2008-09 was Rs. 4890.50 crore compared to the Budget Estimate of Rs.3520 crore and

Revised Estimate of Rs.4934.00 crore.

The Budget Estimate for the year 2009-2010 was Rs.3652.00 crore which was revised to

Rs.3813.63 crore. As against this, the total expenditure up to December, 2010 was Rs.

2870.51 crore.

Revenue Section

Plan: During 2008-09, the Plan expenditure was Rs.830.96 crore as against Rs.741.44 crore

during 2007-2008. The provision for the year 2009-10 was Rs. 947.78 crore and Revised

Estimate was Rs. 888.78 crore.

Non-Plan: During 2008-09, the Non-Plan expenditure was Rs.3448.79 crore as against

Rs.2235.65 crore during 2007-2008. The provision for the year 2009-10 was Rs.2092.00

crore and the Revised Estimate was Rs.2313.63 crore.

Capital Section

Plan: During the year 2008-2009, the Plan expenditure was Rs.610.25 crore as against

Rs.670.96 crore during the year 2007-08. The provision for the year 2009-2010 was

Rs.612.22 crore which was revised to Rs.611.22 crore.

Detailed account of outlay and expenditure for both Plan as well as Non-Plan schemes of the

Department during the years 2007-08, 2008-09 and 2009-10 is given in Table 5.1.

Eleventh Five Year Plan (2007-2012)

An outlay of Rs.9916.00 crore (at current prices) has been approved for the various Planschemes of the Department for the Eleventh Five Year Plan. The Scheme-wise allocation for

Eleventh Plan and outlay & expenditure for the Annual Plans i.e. 2007-08, 2008-09, 2009-10

and 2010-11 are given in Table 5.2.



98 | P a g e

Table 5.1Plan Schemes

(Rs. in crore)

2007-08 2008-09 2009-10 2010-11

BE RE Actual BE RE Actual BE RE

ActualuptoDec, 2009 BE

A Industry & Mineral Sector

1

Assistance for DevelopingInfrastructure & Other AlliedActivities

For other than NER under head Major

Works 540.00 509.22 508.96 513.00 513.00 512.25 513.00 513.00 339.77 623.98

For NER under head Major Works 60.00 60.00 60.00 57.00 57.00 57.00 57.00 57.00 39.00

Total 600.00 569.22 568.96 570.00 570.00 569.25 570.00 570.00 339.77 662.98

2Agricultural Products ExportDevelopment Authority

Grants-in-aid 17.00 27.00 27.00 50.00 50.00 50.00 65.00 69.00 28.00 50.00

Subsidies 63.00 63.00 63.00 50.00 62.52 62.52 50.00 50.50 40.00 100.00

Total 80.00 90.00 90.00 100.00 112.52 112.52 115.00 119.50 68.00 150.00

3Marine Products ExportsDevelopment Authority

Subsidies 80.00 80.00 80.00 100.00 90.00 89.63 90.00 90.50 60.00 90.00

4 National Export Insurance AccountGrants in aid 150.00 150.00 150.00 150.00 150.00 150.00 190.00 190.00 190.00 150.00

5 Export Credit Guarantee Corporation

Investment 100.00 100.00 100.00 100.00 - - 1.00 0.00 0.00 0.01

6Export Promotion, Quality Control &Inspection

a Export Inspection Council

Grants-in aid 18.75 18.75 15.25 10.00 15.83 15.83 9.00 9.00 4.30 7.00



99 | P a g e

(Rs. in crore)

2007-08 2008-09 2009-10 2010-11



b Market Access Initiative

Grants-in-aid 38.00 38.00 38.08 43.00 43.00 43.00 119.00 59.00 47.03 120.00

Other charges 7.00 7.00 6.99 7.00 7.00 7.00 5.00 5.00 1.59 5.00

Total 45.00 45.00 45.07 50.00 50.00 50.00 124.00 64.00 48.62 125.00

c Center for WTO Studies

Other charges 3.00 3.00 1.50 4.00 4.00 4.00 2.00 2.00 - 2.00

d Assistance to Institutions

Grants-in-aid

e Indian Institute of Foreign Trade 10.00 10.00 3.00 10.00 11.51 9.48 7.78 7.78 4.85 8.00

f Indian Institute of Packaging 3.00 3.00 3.00 5.00 4.90 4.13 3.00 2.00 - 2.00

g IIPM 0.25 0.25 0.25 0.25 1.00 1.00 - -

Total 13.25 13.25 6.25 15.25 17.41 14.61 10.78 9.78 4.85 10.00

h Quality Council of India

Grants-in-aid

7 Modernisation & Upgradation

a Secretariat-Economic Services 5.00 5.00 1.97 5.00 5.00 4.88 5.00 2.50 - 5.00

b Director General of Foreign Trade

Other Administrative Expenses 6.00 6.00 5.03 6.00 6.00 5.90 4.00 4.00 1.79 5.00

c DGCI & S

Major Work 7.00 67.78 64.26 5.00 7.00 5.00 6.00 6.00 4.80 5.00

FDDI 21.00 21.00 21.00 20.22 20.22 16.74

8 Footwear Design & Dev. Inst.

Grants-in-aid 2.00 2.00 2.00 5.00 5.00 5.00 4.00 4.00 4.00 3.00

9 Computerization & DGS & D

Other administrative Expenses 5.00 5.00 3.51 4.00 4.00 3.31 4.00 4.00 2.25 5.00



100 | P a g e

(Rs. in crore

2007-08 2008-09 2009-10 2010-11



B Agricultural Sector

1 Tea Board

Subsidies 73.00 69.90 40.00 35.00 35.00 40.75 35.00 38.00 31.50 31.00

Grants-in-aid: (R&D) 25.00 12.00 8.00 20.00 25.00 17.00 20.00 20.00 19.00 12.00

Subsidies to small growersSubsidies to NER 54.00 54.00 22.00 52.00 52.00 52.00 52.00 52.00 51.84 70.00

Grants-in-aid to NER 8.00 8.00 6.00 8.00 8.00 8.00 8.00 8.00 5.33 17.00

Contribution to SPTF 15.00 15.00 15.00 15.00 15.00 15.00 15.00

Total 160.00 143.90 76.00 130.00 135.00 132.75 130.00 133.00 125.23 145.00

Tea Plantation Fund

Grants-in-aid: Tea development fund 53.00 53.00 49.42 10.74 10.74 4.06 4.06 4.06 4.06 0.00

-53.00 -53.00 -49.42 -10.74 -10.74 -4.06 -4.06 -4.06 -4.06 0.00

2 Rubber Board

Grants-in-aid 75.00 75.00 75.00 89.00 89.00 89.00 90.00 98.00 88.43 120.00

Other Charges (NER) 15.00 17.50 17.50 25.00 25.00 25.00 30.00 30.00 22.22 30.00

Total 90.00 92.50 92.50 114.00 114.00 114.00 120.00 128.00 110.65 150.00

3 Coffee Board

Subsidies 26.00 26.00 26.00 60.00 51.00 31.78 45.00 37.00 11.25 30.00

Grants-in-aid 28.00 28.00 28.00 47.75 47.24 47.75 31.00 35.49 31.00 46.00

Grants-in-aid to NER 3.00 3.00 3.00 6.00 3.00 3.36 2.00 2.00 1.81 2.00

Subsidies to NER 3.00 3.00 6.00 3.00 2.64 2.00 2.00 0.15 2.00

Total 60.00 60.00 57.00 119.75 104.24 85.53 80.00 74.49 44.21 80.00

4 Spices Board

Grants-in-aid 25.00 28.00 28.00 25.00 30.00 30.00 30.00 32.00 22.50 32.00

Subsidies 20.00 20.60 19.98 20.00 23.00 23.00 24.00 24.00 18.00 45.00

Grants-in-aid: NER 2.50 2.50 2.50 2.50 2.50 2.50 3.00 3.00 1.11 4.00

Subsidies (NER) 2.50 2.50 1.50 2.50 2.50 2.50 3.00 3.00 2.25 4.00

Total 50.00 53.60 51.98 50.00 58.00 58.00 60.00 62.00 45.00 85.00



101 | P a g e

(Rs. in crore)

2007-08 2008-09 2009-10 2010-11


ActualuptoDec,2009 BE

5 Cashew EPC

Grants-in-aid - - - 5.00 5.00 3.75

Total - - - 5.00 5.00 3.75

6. Crop Insurance 1.00 1.00 10.00 0.01 - 0.01

Grand Total (Dept. of Commerce) 1475.00 1505.00 1412.40 1560.00 1470.00 1441.21 1560.00 1500.00 1072.85 1680.00



102 | P a g e

Non-Plan Schemes(Rs. in crore

2007-08 2008-09 2009-10 2010-11



1. Secretariat-Economic Services 37.00 37.00 35.87 38.1 43.87 48.87 55.88 55.65 45.17 57.30

Foreign Trade and Export Promotion

2. 2. Trade Commissioners 78.50 78.50 70.64 80.00 90.79 86.60 98.58 97.08 58.10 100.60

3. 3. Director General of Foreign Trade 45.71 45.71 41.62 47.80 57.89 60.39 62.13 71.82 61.57 63.00

4.

4. Assistance for Export Promotion and Market

Development

4.01 Export Subsidy 694.00 1594.00 1587.11 1294.00 2394.00 2384.10 1542.72 1542.72 1372.64 1527.55

4.02 Grants in aid to Export Promotion and MarketDevelopment Organisation 55.00 55.00 52.25 55.00 52.25 52.25 55.00 53.00 23.35 56.00

4.03 Interest Subsidy to Banks 300.00 300.00 500.00 500.00 200.00 250.00

5.5. Development of Free Trade/ Export ProcessingZones/Special

5.01 Kandla SEZ 5.09 5.08 5.38 5.62 6.19 7.15 6.21 9.38 6.77 8.49

5.02 Electronics (SEEPZ) SEZ 5.65 6.25 5.85 6.54 7.36 6.90 7.30 8.49 4.97 8.02

5.03 Falta SEZ 2.62 2.85 2.56 3.38 3.81 3.38 3.99 4.80 2.83 4.05

5.04 Madras SEZ 4.40 4.28 4.22 4.66 5.23 5.92 5.64 6.15 4.96 5.87

5.05 Cochin SEZ 2.95 3.01 2.91 3.64 4.21 4.31 5.04 5.29 3.91 5.6

5.06 Noida SEZ 5.47 5.75 5.39 6.00 6.70 7.14 6.56 7.13 4.91 6.67

5.07 Visakhapatnam SEZ 2.65 2.92 2.96 3.00 3.22 3.82 4.00 4.57 2.90 4.78

5.08 Indore SEZ 0.55 0.47 0.48 0.56 0.64 0.72 0.68 0.84 0.53 0.775.09 Jaipur SEZ 0.41 0.34 0.25 0.41 0.47 0.36 0.48 0.44 0.30 0.47

5.10 Manikanchan SEZ Kolkatta 0.49 0.44 0.39 0.51 0.57 0.49 0.70 0.64 0.45 0.64

5.11 Moradabad SEZ 0.39 0.20 0.17 0.28 0.29 0.22 0.31 0.35 0.20 0.31

5.12 Maha Mumbai SEZ 0.40 0.16 0 0.40 0.44 0.08 0.46 0.38 0.12 0.46

5.13 Jodhpur SEZ 0.33 0.23 0.18 0.30 0.36 0.22 0.39 0.39 0.21 0.39

5.14 Surat SEZ 0.16 0.12 0 0.16 0.20 0.23 0.20 0.29 0.24 0.25

5.16 Indian Institute of Foreign Trade (IIFT)



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(Rs. in crore)

2007-08 2008-09 2009-102010-11



6.

Agricultural and Processed Food Products

Export Development Authority 0.50 2.00

7.Marine Products Export DevelopmentAuthority 5.00 5.00 4.41 5.00 5.00 5.00 5.00 5.00 5.00 7.00

8Other Schemes of Foreign Trade and ExportPromotion

8.01 Director General of Commercial

Intelligence and Statistics 13.50 13.55 13.57 13.95 15.95 15.96 16.81 19.63 16.10 19.88

8.02. Export Promotion Quality Control andinspection

8.02.02 Export Inspection Council

8.03 Contributions to International

Organisations 12.75 13.25 11.60 14.00 18.50 7.39 18.50 15.00 10.37 20.00

8.04 International Conferences 0.30 0.30 0.04 0.30 1.05 0.99 1.00 1.00 0.87 1.00

8.08 Others 1.92 2.32 1.98 2.33 1.47 1.06 1.52 1.09 0.53 1.62

Plantations

9. Commodity Boards

9.01 Tea Board 18.75 18.75 18.75 18.75 21.86 21.86 25.00 25.00 18.50 27.00

9.02 Rubber Board 10.25 10.25 10.25 10.25 13.25 13.25 15.00 15.00 13.50 20.00

9.03 Coffee Board 14.25 14.25 14.25 14.25 14.25 14.25 77.28 77.28 77.28 22.00

9.04 Spices Board 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 1.50 4.0010. Other Schemes of Plantations

Corporation of India

10.02.01 Price Stabilization Fund 0.01 0.01 0.01 0.01 0.04 0.03 0.05 0.05 0.05

11. D.G.S. & D 46.50 45.01 41.56 47.80 67.37 69.12 73.57 82.67 59.88 74.27

12. Grants-in-Aid –Export to Cuba 282.00 124.73

Grand Total 1066.00 2266.00 2235.65 1960.00 3464.00 3448.79 2092.00 2313.63 1797.66 2300.05



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Table 5.2Eleventh Plan Outlay and Outlay & Expenditure for the Annual Plans

(Rs. in crore)

11th Plan Outlay Actual Outlay Actual Outlay Actual Outlay

Outlay 2007-08 2007-08 2008-09 2008-09 2009-10 2009-10 2010-2011

A Industry & Mineral Sector (Apr-Dec)

1 Assistance to States for infrastructure 3793.00 600.00 568.96 570.00 569.25 570.00 339.77 662.98

2Agricultural Products Export Development Authority(APEDA)

720.50 80.00 90.00 100.00 112.52 115.00 68.00 150.00

3 Marine Products Export Development Authority 450.00 80.00 80.00 100.00 89.63 90.00 60.00 90.00

4 Export Credit Guarantee Corporation 800.00 100.00 100.00 100.00 - 1.00 - 0.015 National Export Insurance Account 1000.00 150.00 150.00 150.00 150.00 190.00 190.00 150.00

Export Promotion Quality Control and Inspection

6 ii. Export Inspection Council 50.00 18.75 15.25 10.00 15.83 9.00 4.30 7.00

7 iii. Market Access Initiative 550.00 45.00 45.00 50.00 50.00 124.00 47.58 125.00

8 iii. Centre for WTO Studies 20.00 3.00 1.50 4.00 4.00 2.00 - 2.00

9 v. Assistance to Institutions

10 (a) Indian Institute of Foreign Trade 40.00 10.00 3.00 10.00 9.48 7.78 4.85 8.00

11 (b) Indian Institute of Packaging 30.00 3.00 3.00 5.00 4.13 3.00 - 2.00

12 C) Footwear Design & Dev. Inst. (Noida) 15.00 2.00 2.00 5.00 5.00 4.00 4.00 3.00

13 vi. Quality Council of India - -

Modernisation and Upgradation

14 a. Secretariat - Economic Services 17.00 5.00 2.02 5.00 4.88 5.00 - 5.00

15 b. DGFT 25.00 6.00 5.00 6.00 5.90 4.00 1.76 5.00

16 c. DGCI&S 17.00 7.00 3.00 5.00 5.00 6.00 4.80 5.00

17 Footwear Design & Dev. Inst. (Rai Bariely) 85.00 62.58 21.00 21.00 20.22 16.74 -

19 Computerisation in DGS&D 23.00 5.00 3.36 4.00 3.31 4.00 2.21 5.00

Total - I & M Sector 7635.50 1114.75 1134.67 1145.00 1049.93 1155.00 744.01 1219.99

B Agricultural Sector

19 Tea Board 800.00 160.00 76.00 130.00 132.75 130.00 125.23 145.00

20 Rubber Board 580.00 90.00 92.50 114.00 114.00 120.00 110.65 150.00

21 Coffee Board 600.00 60.00 57.00 119.75 85.53 80.00 44.21 80.00

22 Spices Board 300.00 50.00 51.98 50.00 58.00 60.00 45 85.00

23 Tobacco Board - - -

24 Cashew EPC - 5.00 3.75 -

25 IIPM 0.50 0.25 0.25 0.25 1.00 -

26 Crop Insurance - 1.00 10.00 - 0.01

Total - Agricultural Sector 2280.50 360.25 277.73 415.00 391.28 405.00 328.84 460.01

Grand Total - Department of Commerce 9916.00 1475.00 1412.40 1560.00 1441.21 1560.00 1072.85 1680.00



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Utilization Certificate (UCs)

There were 242 UCs outstanding as on 1.4.2009 involving Rs.1117.67 crore. 156 UCs have been

received upto 31.1.2010 amounting to Rs.541.58 crore and 86 UCs are outstanding as on

31.1.2010 involving Rs.575.09 crore.

Opening Balances

The detailed statement for Outstanding Unspent Balance with the States and implementingagencies as on 30.1.2010 is shown in Table 5.3.



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Table 5.3

State Wise Unspent balance (Actual) as on 30.1.2010 for the Scheme for Central Assistance to the States for Developing Export Infrastructure andOther Allied Activities (ASIDE)

(Rs. in crore)AndhraPradesh

ArunachalPradesh

Assam Bihar Chandigarh Chhattisgarh Goa Gujarat Haryana HimachalPradesh

J&K Sikkim TamilNadu

0 2.61 18.99 0 0 3.20 0 0 0 0 4.32 0 0

Kerala MadhyaPradesh

Maharashtra Manipur` Meghalaya Jharkhand Mizoram Nagaland Orissa Punjab Rajasthan Pondicherry

11.77 0 0 7.88 0 0 0 0 0 0 0 1.50

Tripura UP Uttaranchal WB Karnataka A&N D&NHaveli

Daman &Diu

Delhi Lakshadweep Total

1.03 95.68 0 0 0 0 1.50 0 2.83 2.22 153.53

Unspent Balance for the ASIDE Scheme- Central Sector(Rs. in crore)

APEDA BorderRoad Org.

ChennaiPort Trust

CSEZ Engg. EPCKol.

CONCOR Council forLeatherExports

DC(SSI) DM North24 Pargana

HandloomEPC

EPCHandicrafts

FSEZ FDDI,Noida

43.72 3.23 0.00 4.62 0.00 0.00 1.84 1.36 0.55 0.33 1.03 3.30 0.23

ILFS ITPO KSEZ MSEZ G&J EPC RubberBoard

MMTC NIFT NSEZ RITES MP. SEDCBhopal

Mani SEZKol

MPEDA

5.00 1.94 22.06 13.84 0.00 4.98 0.50 27.98 0.08 0.00 0.00 4.82

DOC Govt. of Kerala

Govt. of WestBengal

GNIDA HRDI HPSIDC IDI J&KSIDCL MPAKVNL NCTI Proj. EPC STCL Ltd. TNWICL,Chennai

0.15 15.08 11.00 4.50 2.40 5.40 3.28 8.50 0.00 0.00 0.00 6.29 0.00

NMPTM’lore

PSIEC CWC CashewEPC

SEEPZ SIDICOSikkim

SpicesBoard

VSEZ WEFPI&HDC.Kol

WE TPO Govt. of Gujarat

Govt. of Mizoram

Govt. of Tripura

0.00 4.40 0.27 0.00 12.54 12.56 20.81 20.35 5.00 0.00 4.50 0.00 0.00

Tea Board Total

0.00 278.43



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CHAPTER VI

REVIEW OF PERFORMANCE OF STATUTORY AND

AUTONOMOUS BODIES

(A) Autonomous Bodies

I. Export Inspection Council (EIC)

The Export Inspection Council of India (EIC) is an apex body to provide for sounddevelopment of export trade through quality control and pre-shipment inspection. EIC isassisted in its functions by the Export Inspection Agencies (EIAs) at Chennai, Kochi, Kolkata,Delhi and Mumbai having a network of 37 sub-offices and laboratories to back up the pre-shipment inspection and certification activity. The main functions of EIC are:-

• To advise the central government regarding measures to be taken for enforcement of quality control and inspection in relation to commodities intended for export.

• To draw up and implement programmes for quality control, inspection and certificationof commodities for exports.

Review of Performance

Fees and Revenue Generation

The basic source of revenue of EIC/EIAs continues to be the monitoring and inspection feesrealized for different notified and non notified products as well as certification under GSP andother preferential tariff schemes. The fee charged is at a level of 0.4% of FOB value forproducts inspected under consignment wise inspection, while it is 0.2% of FOB value forproducts under systems certification.

Testing is mostly carried out for samples collected for the purpose of inspection & certificationand are generally not charged, while some samples are tested for other government departmentsand industry on cost basis.

The total revenue generated in 2008-09 by the organization was to the tune of Rs.55.35 Crore.Between 1/4/2009 to 31/12/2009 the total fees collected by the organization amounted to Rs.42.37 Crore. The breakup of fees likely to be realized under various schemes and activities

during 2009-10 is given below in Table 6.1.



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Table 6.1

Breakup of Revenue realised under various Schemes(Rs in lakh)

Schemes/ Activities Actual income

upto Dec.2009

Projected income

Jan- March 2010

Total income

2009-10Inspection & certification Fish & Fishery Products 1647.21 27.79 1675.00

Basmati Rice 241.28 60.72 302.00

Black Pepper 31.32 23.68 55.00

Egg products 31.68 8.32 40.00

Milk & Milk Products 139.27 85.73 225.00

Poultry 1.18 0.32 1.50

Honey 33.86 11.14 45.00

Chemical & Allied products 1.75 0.25 2.00

Engineering 4.15 0.85 5.00

Other Schemes 63.27 9.23 72.50

Total income fromInspection & Certification

2194.97 228.03 2423.00

Certificate of Origin 1846.10 273.90 2120.00

Other Income 196.27 68.73 265.00

Total Income 4237.34 570.66 4808.00


Exports

The value of exports certified by the EIAs during the year 2008-09 was Rs. 13951.92 crore. Forthe period 1/4/2009 to 31/12/2009, the value of exports certified by the EIAs was Rs. 7003.72

crore (provisional) as given in Table 6.2.

Table 6.2

Products Certified for Exports(Rs in Lakh)

Group/Product Name Value of product certified upto

31 Dec 2009

Fish & Fishery Products 532353.83

Basmati Rice 95329.50

Black Pepper 7143.27

Egg products 9468.27

Milk & Milk Products 26985.35

Poultry 163.28Honey 3112.84

Chemical & Allied products 823.10

Engineering 1942.18

Footwear & components 23.08

Others Schemes 23028.35

Total 700372.05




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The EIAs are also authorized to issue various types of certificates such as health, authenticity,non-genetically modified organism, etc. for consignments export. Under the non-geneticallymodified organism (non-GMO) testing, consignments of various agricultural and FoodCommodities valued at Rs 686.18 Crore were tested between 1st April, 2009 to 31st December,2009.

II. Indian Institute of Foreign Trade (IIFT)

The Indian Institute of Foreign Trade (IIFT) was established in 1964 by the Government of India with the objective of strengthening the country’s external trade sector throughdevelopment of human resources; generating, analyzing and disseminating data; conductingresearch and providing consultancy services. The Institute has been playing a pioneering rolein imparting training in foreign trade management in the country besides undertaking researchand consultancy in various areas of international business. The Institute was awarded the statusof Deemed University in May 2002 by University Grants Commission (UGC) and accredited inMay 2005 as an “A” grade institution by National Assessment and Accreditation Council

(NAAC) – an autonomous institution of UGC. During 2008-09, the Institute was reviewed byan Expert Committee of the University Grants Commission for continuing the DeemedUniversity status of IIFT. The Expert Committee of the UGC visited the Institute campuses atDelhi and Kolkata on 3rd and 6th October 2008 and was satisfied with the academic standardsand milestones achieved by IIFT.

Details of the major activities carried out by the Institute during 2009-10 in the areas of training, research and conducting seminars/workshops are given below:

Education

• 11 Foundation programmes• 8 Part-Time certificate Courses

Training

• 11 Open Programmes

• 2 IAS In-Service Training Programmes

• 2 IES In-Service Training Programmes

• 1 ITS In-Service Training Programme for 18 months

• 5 Overseas Executive Development Programmes

• 7 Sponsored Programmes

• 1 Collaborative Programme• 1 Interactive Meet

Research

• Indo-ASEAN FTA & Concern for West Bengal

• Study of Prospects of India’s Economic Cooperation with Jordan



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Research & Development, Projects & Laboratory Activities

The Institute undertakes research & Development Projects for induction of renovation,increasing shelf life, package development for fresh foods, vegetables, processed foods,development of packaging for engineering products etc.

The Institute has equipped its laboratories with new testing equipments. The Laboratorytesting equipments at Mumbai are accredited by National Accreditation Board for Testing andCalibration Laboratories (NABL). The new testing equipments “Differential ScanningCalirometry” used for plastic films testing and “Head Space” analyzer used for analyzingOxygen head space are being installed at Hyderabad and Chennai.

The Laboratory of the Institute is also accredited by Directorate General Shipping to certifythe packages for export of dangerous goods by ship. The Institute’s laboratory facilities arealso accredited by Directorate General of Civil Aviation for testing the packages to be used forcarriage of dangerous goods by air.

Training & Education

The training & education dept. of the Institute undertakes two years Post Graduate Diploma inPackaging Technology (PGDP) and 18 months Distance Education Programme for theworking executives. Currently 25th batch of Two Years PGDP course is being undertaken.15th batch of 18 months Distance Education Programme is expected to start from January,2010. The Post Graduate Diploma in Packaging course of the Institute is accredited by theWorld Packaging Organization and Asian Packaging Federation.

The Institute also conducts workshops for medium and small enterprises engaged in the fieldof exports. The Institute has planned to train 20 candidates from 20 different countries underthe sponsorship programme of World Packaging Organization. The training programme willbe taken up in the month of March, 2010. The trainees will also be provided online training incoordination with The Packaging Society, UK.

Publications

The Packaging India Journal published by the Institute has established good readership amongthe Industry as well as Government agencies which cover the developments in packaging inthe field of plastic, paper, glass, tinplate etc. including subjects on converters in Packaging,Packaging Machinery Manufacturers, etc.

The Institute has planned to organize an International Packaging Exhibition “India Pack 2010”and International Summit for Packaging Industries in the year 2010.



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Rs 4282 crore as against Rs 3070 crore during Apr.-October, 2008-09, thus accountingfor 45% of the total import turnover. Imports of hydrocarbons also continued to be amajor activity that yielded a turnover of Rs 2661 crore. Imports of petrochemicalscontributed a turnover of Rs 1520 crore. Import sales of edible oils and pulses increasedas compared to sales during the corresponding period of previous year. While sales of

edible oils went up from Rs 612 crore in Apr.-October, 2008-09, to Rs 627 crore inApr.-October, 2009-10, that of pulses increased from Rs 291 crore to Rs 370 croreduring the same period. Other major items of import were sugar (Rs 45 crore) andalmonds/cashews (Rs 44 crore).

• Domestic sales: During the period April-October, 2009-10, domestic sales stood at Rs.439 crore as against sales of Rs. 811 crore during the corresponding period of theprevious year. During the period, domestic sales of pulses/coarse grains amounting toRs 159 crore were made as against only Rs 32 crore in same period last year. Othermajor items of sales on domestic front included minerals/metals (Rs 111 crore),oils/seeds/extractions (Rs 80 crore) and jute goods (Rs 20 crore). The Corporationcontinued to undertake processing and sale of tea leaves procured domestically from

small growers in Tamil Nadu which resulted in a turnover of Rs 13 crore.• Profitability: During April-September 2009-10, the Corporation’s Profit before Tax

(PBT) amounted to Rs.77.43 crore - 47% higher than the corresponding period of previous year.

Fresh Initiatives

In the recent past, the Corporation has taken many new initiatives to increase its business.These include:

• Identification of new coal buyers namely National Aluminium Company Limited

(NALCO), the Generation Corporation of Andhra Pradesh (APGENCO), Gujarat StateElectricity Board and Tamil Nadu State Electricity Board.

• Diversification of supply base for bullion imports and setting up necessaryinfrastructure at the corporate office building for facilitating online settlement of contracts, payments, etc.

• Enlisting two new processing units for domestic tea operations in Tamil Nadu underwhich STC sources green tea leaves directly from small growers and arrangesprocessing of the same for exports and sale in the domestic market under own brandname “Tohfa”.

• Discussions are on with Solvent Extraction Producers Association to form a consortiumto purchase/take on long term lease, land in Latin America and Africa for pulses

cultivation.• Planning to create additional oil storage capacities on the land allotted to STC in the

Mumbai Port area for bulk handling of edible oils.

II. MMTC Limited

MMTC Ltd was incorporated in the year 1963 for trading in minerals and metals. Over theyears, the company has diversified its trading activities in the areas of bullion, fertilizers, agro



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products, coal and hydrocarbons etc besides minerals & metals. With focus on bulk operationsand having infrastructure spread across the country, the company has achieved consistentgrowth in top-line as well as bottom-line. The company is widely recognized as India’s largestinternational trading company and the first Public Sector Undertaking to be awarded PremierTrading House status in the country.

The summary of financial performance of MMTC Limited during the years 2007-08, 2008-09and 2009-10 vis-à-vis targets for the year 2009-10 is given in Table 6.4 below.

Table 6.4

Financial Performance of MMTC(Rs. in crore)

Item 2007-08

Actuals

2008-09

Actuals

2009-10

Targets(Excellent)

2009-10

Estimates

Exports 3,911.45 4,575.88 2,415.00 2,770.00

Imports 20,448.96 30,695.14 20,880.00 33,470.00

Domestic 2,063.05 1,549.74 960.00 1,760.00

Total Turnover 26,423.46 36,820.76 24,255.00 38,000.00

Trading Profit 429.76 320.86 232.00 235.00

Profit Before Tax(PBT) 324.60 217.38 138.50 212.00

Net Profit (PAT) 200.48 140.22 91.50 140.00

Source: MMTC

The highlights of the estimated performance during 2009-10 vis-à-vis targets are as follows:-

• Overall Performance: Despite continuing global economic slowdown in the first half and sluggish recovery of economy during second half of 2009-10, the Company islikely to achieve a turnover of Rs. 38,000 crore against MOU target of Rs. 24,255 croreduring the full year 2009-10 exceeding the target by 57%. The company is likely toachieve a net profit of Rs. 132 crore in 2009-10 as against the MOU target of Rs. 91.50crore exceeding the target by 44%.

• Exports: During 2009-10, MMTC is likely to achieve an export turnover of Rs 2,770crore against MOU target of Rs 2,415 crore. The company is likely to achieve anincrease of 15% in export turnover as compared to the MOU target.

• Imports: MMTC is likely to achieve import turnover of Rs 33,470 crore during 2009-10against the MOU target of Rs 20,880 crore. The company imported essentialcommodities of mass consumption i.e. pulses, palmolein oil, soya oil and sugar duringthe current year. The import of precious metals is likely to contribute substantially inimport turnover on account of rise in prices of gold. The company is likely to achievean increase of 60% in total import turnover as compared to the MOU target.

• Domestic Trade: The turnover against domestic trade is estimated at Rs 1,760 croreduring 2009-10 against the MOU target of Rs 960 crore, showing an increase of 83%over the MOU target. This is mainly attributed to increase in sales of jewellery andother gold & silver items in exhibitions at different places, which marked an increasedrecognition of MMTC in Hall marked jewellery as a symbol of purity.



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• Profitability: During 2009-10, the company is likely to achieve trading profit of Rs 235crore, profit before tax of Rs 212 crore and net profit of Rs 140 crore against MOUtargets of Rs 232 crore, Rs 138.50 crore and Rs 91.50 crore respectively.

• MOU Rating: The Company has been consistently exceeding most of the parameters of MOU targets. During 2009-10, the company is expected to be rated ‘EXCELLENT’ for

its achievements against MOU targets.• Dividend : The Company has paid a dividend of Rs 40 crores on the equity capital of Rs

50 crores for the year 2008-09. As per the MOU targets, MMTC is expected to pay adividend of Rs 20 crore for 2009-10 which is likely to be achieved by the company.

Subsidiary/Associates

MMTC Transnational Pte Ltd (MTPL), Singapore: This wholly owned foreign subsidiary wasset up in the year 1994 for promoting international trade. Against an investment of Rs 3.15crore by way of equity contribution, the company has so far distributed dividends of Rs 19.18crore ( US$ 4.08 million) besides enhancing its net worth to Rs 68.53 crore ( US$ 14.58

million).

Neelachal Ispat Nigam Limited (NINL): As a strategy to diversify and add value to the tradingoperations, the company, with Government of Orissa, has set up an iron and steel plant of 1.1million tonnes capacity, 0.8 million tonne coke oven plant with captive power with a projectcost of Rs 1910 crore. The construction of second phase of the project costing Rs 1810 crore isunder progress. The project has firm iron ore supply linkages and also has captive iron oremining rights for reserves estimated about 150 million tonnes.

Projects/Joint Ventures

The company has undertaken several strategic initiatives through public-private partnershipaimed at enhancing future growth and to insulate future performance of the company againstadverse market developments. The initiatives include:

• Free Trade Warehousing Pvt. Ltd .: A joint venture established to set up free tradeand warehousing zones on lines similar to Special Economic Zones to promote twoway trade at Haldia and Kandla.

• Indian Multi Commodity Exchange: A commodity exchange in partnership withIndia Bulls, Indian Potash Ltd (IPL), Krishak Bharati Cooperative Limited(KRIBHCO) etc. has been set up with 26% equity contribution by MMTC. It hasalready commenced operations in November 2009.

• United Stock Exchange of India Ltd .: A joint venture for currency futures exchangeis being set up which is likely to commence operations in the 4th quarter of currentfinancial year.

• MMTC-Pamp India Private Limited : The Company is setting up a gold/silvermedallion manufacturing unit including refining of gold with 26% equityparticipation by MMTC. Civil construction has already commenced and the unit islikely to begin production in 2010-11. MMTC will also get an opportunity to marketa certain percentage of products of the joint venture.



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• MMTC Gitanjali Private Limited : The Company has set up a joint venture inpartnership with Gitanjali Jems Limited to establish a chain of retail stores to marketthe finished products under a new brand “SUDDHI” with 26% equity participationby MMTC. Three retail outlets have been opened and more outlets are being addedto cater to the retail marketing network.

• SICAL Iron Ore Terminals Limited : A joint venture has been formed to set up apermanent berth at Ennore Port with M/s SICAL and L&T Infrastructure with 26%equity participation by MMTC. The berth with loading facilities for iron ore is likelyto be operational in the 2nd quarter of 2010-11.

• Blue Water Iron Ore Terminal Limited : A joint venture has been set up fordevelopment of deep draught iron ore berth at Paradip Port with Noble Group Ltdand Gammon Infrastructure Projects Ltd.

• Process is on for setting up a joint venture company with M/s TATA Steel Ltd. formining infrastructure i.e. exploration of minerals, ferrous and non ferrous ores,precious metals, diamonds and coal etc.

• The company has been allotted a coal mine in Jharkhand having estimated reserves

of about 700 million MT, pre-feasibility study of which has already commenced andprospecting license is likely to be issued shortly.

III. Export Credit Guarantee Corporation of India Ltd. (ECGC)

The Export Credit Guarantee Corporation of India Ltd. (ECGC) Mumbai was set up in 1957under the Companies Act, 1956. It has the primary objective of supporting the country’sexports by extending Insurance and Guarantee facilities to the Indian exporters and thecommercial banks. The Corporation provides a range of insurance covers to Indian exportersagainst commercial risks of nonpayment by the overseas importers as well as the country riskscaused due to political developments. It also provides credit insurance covers to banks against

the nonpayment risks of exporters availing pre-shipment, post-shipment as well as other nonfunded export credit facilities. These covers to banks enable the latter to extend the creditfacilities on a more liberal basis. The paid up capital at the end of 2008-09 is Rs. 900.00 crore.ECGC has registered itself with the Insurance Regulatory and Development Authority (IRDA)on 27th September, 2002.

The achievements of the Corporation are given below:

• There were 13371 short-term policies including transfer guarantees and 103 long termpolicies, in force on 31.03.2009. The total value of shipment declared under theschemes (short-term policies, transfer guarantees and factoring) amounted to

Rs.68866.34 crore in 2008-09 as compared to Rs.52766.57 crore in 2007-08, whichrepresents a growth of 30.51%.

• The total claims paid during the year 2008-09 amounted to Rs.450.62 crore ascompared to Rs.420.02 crore in the previous year. During the year, a total sum of Rs.157.05 crore was recovered as compared to Rs. 210.20 crore in the previous year 2007-08.

• The total premium income from all the schemes of ECGC during 2008-09 amounted toRs.744.53 crore as compared to Rs. 668.37 crore in 2007-08. This premium income of



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ECGC mainly comprises of Short Term Guarantee Business, accounting for 62.34% of the total premium income, followed by Short Term Policy sector including factoring,which contributed 33.11%. The income from medium and long term sector accountedfor just 4.54% (Rs. 33.77 crore) of the total premium income. ECGC has a share of about 90% of the export credit insurance market in India inspite of competition from the

public sector, as well as private sector insurance companies.• During 2008-09, the Corporation maintained same rates of premium, which was

reduced by an average 10% in the previous year, across all sectors of business. This isinspite of adverse developments in the major export destination markets due to the onsetof global recession benefiting the export community. During the year, full-fledgedfactoring services of ECGC registered a net income of Rs.55.14 lakh as againstRs.25.98 lakh with total invoices factored amounting to Rs.75.66 crore.

• ECGC covers exports to 237 countries. The top five countries covered by ECGC duringthe year were USA, UK, Germany, UAE and Italy. They represent about 45% of itstotal cover. Engineering Goods, Leather and leather manufactures, readymadegarments, Chemical and allied products and Basic Chemical, Pharmaceuticals &

Cosmetics are the top five commodities covered by ECGC during the year. Theseaggregate to Rs.24, 000 crore, representing 35% of the total value covered by ECGCduring the year. ECGC has continued reinsurance with 20% under obligatory and quotashare.

• The Corporation paid total dividend of Rs. 180 crore for the year 2008-09 as comparedto Rs. 162 crore paid during the previous year.

• ECGC received the Indira Gandhi Award for official language implementation for thetwelfth time successively. ECGC has achieved excellent rating under its annualMemorandum of Understanding signed with the Ministry of Commerce & Industry forthe year.

IV. PEC Limited

PEC Ltd. was formed on 21st April, 1971 as a wholly owned subsidiary of STC. PEC Limitedbecame an independent Company under the Department of Commerce from 27

thMarch, 1991.

The main activities of the company are:

• Export of projects, engineering equipment and manufactured goods, defence equipment.

• Import of industrial raw materials, bullion and agro commodities.

• Consolidation of existing lines of business and simultaneously developing new productsand 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.

The overall performance of the Corporation since 2007-08 in terms of sales turnover, income,expenditure, profitability and net worth is given in Table 6.5 below.



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• Imports: The major item-wise composition of imports by the Company since 2006-07 isgiven in Table 6.7 below.

Table 6.7

Composition of Imports of PEC Ltd(Rs. in Crore)

Item 2006-07 2007-08 2008-09 2009-10(Estimates)

Bullion 1285.32 1211.49 2391.43 2500.00Industrial Raw material 1850.28 1837.85 4301.75 3580.00

Agro commodities 650.54 724.31 1032.38 1600.00

Edible Oil - 109.03 609.96 320.00

Others 44.41 464.40 184.76 50.00

T O T A L 3830.55 4347.08 8520.28 8050.00

Source: PEC

• Dividend: During the year 2008-09, PEC has paid dividend of Rs. 15.00 crore at the rateof 75% on the increased share capital of Rs. 20 crore as against Rs. 9.00 crore paid in the

previous year.• MOU Rating: The remarkable top and bottom-line performance was rated “Excellent” in

the achievement of targets for the year 2008-09. MOU for the year 2009-10 has beensigned with the Ministry of Commerce & Industry.

V. Spices Trading Corporation of India Ltd (STCL)

STCL Ltd., a wholly owned subsidiary of STC of India Ltd, was originally known as“Cardamom Trading Corporation Limited”. It was set up as a Private Limited Company underthe Companies Act, 1956 in October 1982. Consequent upon the change of name, the Companyobtained 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 toother range of spices. Thereafter, STCL became a subsidiary of the State Trading Corporationof India Ltd. with effect from 14.9.1999 and shares held by the Ministry of Commerce weretransferred to the State Trading Corporation of India Ltd.

The Company’s name has been further amended its name from Spices Trading CorporationLimited to ‘STCL Limited’ and a fresh Certificate of Incorporation under the name of ‘STCLLimited’ has been obtained with effect from August 13, 2004. The main objectives of theCompany are:

• To trade in spices, other agricultural commodities, fertilizers, pesticides in the

domestic as well as global markets and establishing of processing units of international standards.

• To make best use of the financial strength of the Company and diversifyimport/export of commodities and ensure an efficient and streamlined system of operations, with minimum transaction costs.



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• To develop core competitiveness in selected areas of exports, exploit the marketopportunities in these areas and provide on quality of services to its Clientele in thelong-term business relationship.

• To support, protect, maintain, increase and promote production of Indian Spices andother Agricultural commodities as well as their Sale/Export.

• To undertake on a continuous basis training/re-training of existing manpower andinduct professionally qualified young talent so as to create a cadre of highlyprofessional and motivated managers.

• To create new infrastructure and make optimum utilization of infrastructure availablewith the Company.

• To strive to pay adequate returns to the parent company (The State TradingCorporation of India Limited).

• To fulfill Company’s social responsibility by following ethical business practices andreinforcing commitment to customers, employees, partners and communities.

• To become a credible company of international standards of corporate governance andoffer quality services.

The Authorized Share Capital of the Company as laid down in its amended Memorandum of Association is Rs. 5.00 crore, divided into 5 lakh equity shares of Rs. 100/- each. The Paid upShare Capital of the Company as on today is Rs. 1.5 crore comprising of 1.5 lakh equity shares.

Performance

Total turnover of the company during the year 2009-10 is estimated at Rs.750.00 crorereflecting strong performance in a competitive environment of liberalized trade and stiff competition. The total estimated exports and domestic sales of the company are Rs.665.62crore and Rs.84.38 crore respectively during the year. The details of actual achievements

during 2008-09 and estimates for the year 2009-10 are briefly enumerated in Table 6.8 below: -

Table 6.8

Financial Performance of STCL

(Rs. in crore)

PARTICULARS2008-09

ACTUALS

MOU

TARGET

2009-10

(Revised)

2009-10

Actuals up

to 31.12.09

[Provisional]

Estimates

from Jan 10

to Mar 10

Total

Estimated

for 2009-10

Export Sales 1722.40 450.00 421.81 174.52 665.62Domestic Sales 448.03 300.00 32.32 31.90 84.38

Total Sales 2170.43 750.00 454.13 206.42 750.00

Imports 123.33 0.00 0.54 0.0 0.54

Net Profit [before tax] 20.70 0.53 *0.48 *0.05 *0.53

*A sum of Rs 126.53 crore being interest accrued on the amount due to banks not considered while

arriving at the net profit as the same is not debited by banks.

Source: STCL



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The highlights of activities of the Corporation during 2009-10 are given below:

• STCL has taken position in the Tobacco and plantation areas in Karnataka and soldfertilizers, Agro-chemicals and other inputs manufactured by reputed companies atcompetitive prices to protect farmers’ interests from the middlemen and traders. The

timely supply of the fertilizers had helped the farmers in carrying out their fertilizerapplication operations on time, which has boosted their productivity/ production.

• With a view to help the coffee, pepper and chilli growers to avoid distress sale, STCLis financing stocking of produce at concessional rate of interest at Kushalnagar inKodagu District, Karnataka and for chillies at Byadagi/Gadag, Karnataka as well asmarketing their produce to realize a higher price for their produce.

• STCL also has been regularly conducting Cardamom Auctions and due to goodauctioning practices adopted, the growers are assured of realizing a reasonable pricefor their produce.

• STCL has established a Chilli Processing Plant at Byadagi in Haveri District,Karnataka. The company has already started the project of Pepper Processing Plant at

Siddapur in Kodagu District, Karnataka. Besides, the company has also started theSteam Sterilization Unit at Chhindwara, Madhya Pradesh. These projects help thegrowers to get remunerative price by value addition for their produce. These projectsshall achieve the following objectives:

To encourage farmers to produce organic and conventional spices (black pepper and Chillies) to meet the export demand.

To increase the export share of value added products from India to the worldspice market.

To help farmers to have higher sales realization.

VI. National Centre for Trade Information (NCTI)

The National Centre for Trade Information (NCTI) was incorporated on 31st March, 1995 as aCompany 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 includesrepresentatives from Ministry of Commerce & Industry, National Informatics Centre (NIC),Indian Institute of Foreign trade (IIFT), and Directorate General of Commercial Intelligence &Statistics (DGCI&S), India Trade Promotion Organisation (ITPO), Council for Leather Exports(CLE), The Marine Products Export Development Authority (MPEDA), PEC Ltd, Coir Boardand ASSOCHAM.

The ITPO and NIC are co-promoters of the Company and have contributed a sum of Rs. 4.00crore (Rs.2.00 crore each) as Corpus Fund in the equity contribution of the Company. TheITPO provides fully furnished office space and the NIC provides the Software and Hardwareagainst 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 organizesexport awareness seminars, and updates/uploads information on its website. It has uploaded on



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its Website 52 issues of Trade Point-India containing approximately 250 Trade Leads eachweek.

Studies Undertaken

• ASEAN FTA/PTA Study;

• Analysis of India-GCC FTA /PTA;

• India–Thailand EHS Analysis;

• Coir Board study on Australia

Major Initiatives by NCTI

• Setting of Computerized Trade Information Centre (CTIC) for Visvesvaraya IndustrialTrade Centre (VITC) at Hubli;

• Maintenance and Management of Trade and Investment Information Centre (TIIC) forTRIFAC, Bhopal;

• Development of Focus Africa Portal;• Trade leads and trade data support to Govt. and private sector companies.

VII. India Trade Promotion Organization (ITPO)

The Indian Trade Promotion Organization (ITPO), which was formed by merging the TradeFair Authority of India (TFAI) and the Trade Development Authority (TDA) in 1992, is thepremier trade promotion agency of India. It provides a broad spectrum of services to trade andindustry with a view to promoting India’s exports. With its Headquarter at Pragati Maidan andregional offices at Bangalore, Chennai, Kolkata and Mumbai, ITPO ensures representativeparticipation of trade and industry from different regions of the country in its events in India

and abroad. It also operates a network of overseas offices at Frankfurt (Germany), New York (USA), Tokyo (Japan), Moscow (Russia) and Sao Paulo (Brazil) for enlisting participation andvisitor response for its events.

Financial Highlights

During 2009-10, the ITPO’s total income is estimated at Rs. 218.22 crore (provisional) ascompared to Rs. 220.69 crore in the previous year while the total expenditure is anticipated atRs.159.21 crore (provisional) as against Rs. 135.05 crore incurred during the previous year.The ITPO is anticipating a surplus of Rs. 59.01 crore during the year 2009-10 as compared toactual surplus of Rs. 85.64 crore in the previous year.

Fairs in India

Large and small industries, exporters and manufacturers covering various sectors of trade andindustry displayed their exhibits/products at ITPO fairs in India. During 2009-10, 18 eventswere slated to be organized in India – 11 in Delhi and 7 at regional level. The events organizedin Delhi from April-December 2009 include the mega event India International Trade Fair(IITF) at Pragati Maidan, New Delhi; Delhi International Leather Fair; Delhi Book Fair;



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Stationery Fair; International Arogya Fair; Energy Tech. and Envirotech. The fairs to be heldduring Jan-March 2010 are International Exhibition of Security Fair, Nakshatra, Tex StylesIndia and Aahar International Food Fair. At the regional level, Maritime Expo Mumbai, EastHimalayan Expo, Siliguri & Aahar Fair at Chennai have already been held till December 2009.Apart from these, India International Leather Fair, Chennai, International Leather Goods Fair at

Kolkata, Arogya Bangalore & North East Expo Guwahati are to be held during Jan-March2010.

The 3rd East Himalayan Expo was organized at Paribahan Nagar, Matigara, Siliguri, WestBengal during June 9-15, 2009. The aim of the EXPO was to provide an exclusive platform toNorth Eastern Region for opening up of new vistas in the area of trade and commerce and alsoshowcase the vast inherent export potential from this part of the country. The fair wasinaugurated by Hon’ able Minister in charge, Shri Ashok Bhattacharya, Municipal Affairs andUrban Development, Govt. of West Bengal. The fair was organized in collaboration withFederation of Chamber of Commerce & Industry, North Bengal (FOCIN). Thailand was thepartner country in the said event. A total of 130 units/organizations participated in this trade

show.

The 15th Delhi Book Fair and the 11th Stationery Fair were organized by ITPO from August29- September 6, 2009 with the support of Federation of Indian Publishers. The exhibition wasinaugurated by Minister of State for Corporate & Minorities Affairs Shri Salman Khurshid. Atotal number of 274 participants including five overseas companies from China, Japan,Pakistan, UAE and USA participated in the fair. The theme of Delhi Book Fair was “Literaturefrom North East”.

‘Aahar’, the International Food Fair, was held at Chennai during August 27-29, 2009 with 84participants. The fair was inaugurated by Shri E.V. Velu, Hon’ble Union Minister for Food.Visitors from major hotel chain owners and from small cities in South attended the fair.

International Arogya Fair was held from Sept.18-21, 2009 at Pragati Maidan. Special highlightof the fair was Yoga and Music Fusion Programme during the fair. The main products ondisplay were Ayurveda, Yoga, Naturopathy, Homeopathy, Unani, Siddha, Herbal Medicines,Medicinal Plants, Health Tourism, Health Fitness Systems, Health and Medical Insurance etc.

The 29th ‘India International Trade Fair’ 2009 (IITF) was held during Nov.14-27, 2009 atPragati Maidan. The fair was inaugurated by the Hon’ble President of India, Smt. PratibhaDevi Singh Patil. The theme of IITF this year was “Exports of Services”, Partner Country wasThailand and Focus Country was China. Partner State was Delhi and Focus State wasUttarakhand. The new initiatives taken during IITF’09 were “A Green & EnvironmentFriendly Fair” and declaration of Pragati Maidan as a “No Smoking Zone”. Giving the fair apronounced business dimension, the first five days viz. November 14-18, 2009, were keptexclusively for business and trade visitors. One of the special features of the fair was anexhibition by ITPO in association with ISRO titled “India – A Space Odyssey” highlighting themilestones of India’s entry into the Space Age. A total of 5846 delegates including 929 foreigndelegates, visited the fair.



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In order to draw attention to the Global warming and other environmental issues the ITPOorganized 2nd edition of twin events namely: Envirotech 2009 and Energytech 2009 duringDecember 11-14, 2009. In all, there were about 50 participants in these events – including TheEnergy and Resources Institute (TERI), Bureau of Energy Efficiency (BEE), Ministry of Newand Renewal Energy (MNRE), Building Materials & Technology Promotion Council

(BMTPC) etc. Japan was the partner country and its participation was coordinated by TheJapan External Trade Organization (JETRO). Leading companies like New Energy andIndustrial Technology Development Organization (NEDO), Okaya, Hitachi Zosen, Kawasakiparticipated in the Japan pavilion. About 2000 visitors including about 1600 business visitorsvisited the four day show. 46 visitors from abroad also paid a visit to these Shows.

ITPO successfully organized ‘India International Maritime Logistics Expo” at World TradeCentre, Mumbai during April 10-12, 2009. This was the first show in the field of maritimeindustry organized by a Government of India organization with the support of Ministry of Shipping. The show was organized in an area of 1500 sq.mtrs. There were about 31 exhibitorsincluding India’s leading ports, ship builders and other service providers in the field of

maritime logistics. About 1000 business visitors and decision makers from the field of maritimeand port development attended the show.

Apart from organizing trade fairs, the ITPO also leased its facilities in Pragati Maidan toorganizers of trade events. During 2008-09, as many as 91 events were organized in PragatiMaidan by Export Promotion Bodies/Apex Industries Associations/Central Ministries as wellas private fair organizers. During 2009-10, as many as 64 events were organized till December,2009.

Fairs Abroad

During the year 2009-10, ITPO proposes to organize participation in 28 overseas trade fairsincluding two exclusive India shows (St. Petersburg and Almaty), one Guest of Honourparticipation (Thessaloniki) and two mini India shows in Osaka. Out of these 28 events, 21events have been held so far during the period April-Dec. 2009. Of these, 5 were held inEurope, 5 in Africa & Middle East region, 1 in Latin America, 4 in South East Africa includingFar-East, 3 in USA 1 in SAARC region and 2 in CIS region. Further, out of these 21 events 8were general fairs, 8 were specialized fairs and 5 were exclusive India Shows/Guest of Honourparticipation/Mini India Shows.

During the year 2010-11, ITPO proposes to organize 30 overseas trade fairs including 3exclusive India Shows (Mexico, Turkey & Vietnam) and 2 Mini India Shows (Osaka).

Trade Development Activities

During the year, two Exclusive Indian Commodity Shows were organized in Japan – the “20thIndia Home Furnishing Fair” and the “30th India Garment Fair”. The Shows for HomeFurnishings & Garments, being organized annually for the last several years are wellestablished and have become major sourcing avenues for these products. The simultaneousorganization of the shows for furnishings and garments during 2009 provided ample



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opportunity for buyers and sellers to conduct business under one roof, not only in terms of Home Furnishings, but also in Garments. These two events together generated business worthUS$ 17.74 million and were attended by 1783 buyers from leading department stores,wholesalers, importers, trading houses, etc.

Coming as a sequel to the Expo series, next Expo is scheduled to be held during May 1-October 31, 2010 at Shanghai. ITPO is the nodal agency for setting up India Pavilion at thismega event. The Theme of India Pavilion is “Cities of Harmony”, in line with the overall themeof the Expo: “Better City, Better Life”. The India Pavilion will showcase the Indian culture,heritage, diversity, traditional and modern scientific & technological developments over theyears. The construction of India Pavilion as per the concept and design is in full swing.

ITPO hosted visits of 14 delegations from Russia, Japan, Thailand and Singapore for tradepromotion and arranged business meetings for them with the potential Indian companiespertaining to wide range of products and services during their visits.

ITPO provided a package of services to export worthy units which are enrolled as RegularMembers. These services include live trade enquiries received from foreign offices, marketintelligence, product development, details of importers, arranging meetings with visitingDelegations, participation in developmental programmes, etc. This year, till December, 2009,102 trade enquiries received from ITPO’s foreign Offices/Indian Missions abroad weredisseminated among the members enabling them to explore business opportunities with theiroverseas counterparts.

ITPO is networking with International Organizations in the field of Trade and Commercethrough membership or collaborative arrangements such as Memorandum of Understanding(MOU). ITPO is a founder member of Asia Trade Promotion Forum (ATPF) and participatesin its Annual meet regularly. The ATPF Annual Meet held in Xiamen (China) during April 21– 25, 2009 was attended by CMD, ITPO.

In an effort to promote Indian industrial design globally, an MOU was signed between ITPOand National Institute of Design (NID). A Show Case Design Centre has been set up in PragatiMaidan under this MOU. Presently, some of the India’s best design innovations are on display,which are constantly updated. There is also an interactive space, where the importance of design applications in various industries has been highlighted.

Computerization

ITPO embarked upon a prestigious “Comprehensive Organizational Restructuring and E-Enablement of ITPO” project and appointed a consultant. The consultant has since given ablue-print of the proposed organizational restructuring and E-enablement which is under activeconsideration by ITPO. The present IT infrastructure in ITPO includes about 400 desktopcomputers, 10 servers, 6 work-stations, attached peripherals and supporting applicationsoftware which are operational in the networking environment.



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Besides facilitating IT enabled services in various Divisions, the Computer Department alsofacilitates development, hosting and maintenance of corporate website of ITPO, two tradeportals and fair specific websites.

Trade Information

During 2008-09, 700 periodicals, 90 publications including trade directories and 9 CDs werereceived in the Library. During April-December, 2009, as many as 650 periodicals, 93publications including trade directories, 25 Annual Reports and 48 CDs were received in theBusiness Information Centre (BIC) Library. Besides these, 39 issues of Indian Export Bulletinwere brought out and hosted on the website upto December 2009. ITPO has nearly 1000 TradePortal members as on December, 2009.

Business Information Centre

With a view to provide reliable trade information to Indian exporters and overseas buyers, the

ITPO has set up the Business Information Centre (BIC) and a Trade Portal(www.tradeportalofindia.com) at Pragati Maidan. The Portal presently has 12 GB of information covering 54 major countries and 28 product groups which accounts for more that85% of India’s trade. The Portal covers, a data base of more than 52000 overseas importers,15,626 Indian exporters and more than 2500 ITPO members, Product and Country Profiles,Fairs and Exhibitions, India’s Trade Statistics, Global Trade Statistics, EXIM Policy,notifications and circulars of Central Excise, Customs and RBI, Market Surveys, productcatalogues of ITPO members, and tariffs and taxes. It has links to various trade relatedorganizations as well.

Nearly 200 visitors access the Trade Portal daily. The ITPO has also a Physical and Electronic

Library located at Hall No.19 at Pragati Maidan which is visited by more than 2000 visitors.The Centre provides online access to KOMPASS – (a database of 1.8 million companies for 82countries, searchable by country and product, classified bymanufacturer/importer/distributor/agent).

ITPO is also maintaining another portal, www.tradeportalofindia.org, which was developedwith the assistance of India and EU Trade and Investment Development Programme (TIDP)with a view to promoting trade between India and EU. The Portal contains vast information onvarious aspects of trade and economy with special reference to EU region. Now the Portal ishaving information with regard to 110 countries including 27 countries falling under EU.Currently this portal is accessible with the issuance of login ID and password for members.

Setting up of Regional Trade Centres

ITPO is providing assistance to State Governments in setting up Regional Trade PromotionCentres (RTPCs) for creating Export Infrastructure in State Capital/major cities.

• A Joint Venture Company namely, Tamil Nadu Trade Promotion Organization(TNTPO) was set up during the year 2001 under a joint initiative of ITPO & TIDCO,



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Chennai. During 2009-10(1st April, 2009 to 31st December, 2009), 104 events wereorganized at Exhibition and Convention Halls of TNTPO. About 32 events are expectedto be held from January, 2010 to March, 2010.

• A Trade Centre at Bangalore was set up in 2004 and which is managed by a JointVenture Company called Karnataka Trade Promotion Organization (KTPO). KTPO is a

joint venture of ITPO and Karnataka Industrial Area Development Board (KIADB).The commissioning of this centre has provided added impetus to trade promotionactivities in the Southern Region. During 2009-10 (1st April’09-31st Dec.’09), KTPOhosted 5 events.

• A project of Trade Centre at Guwahati for developing trade from North Eastern Regionwas completed in December 2006 and has been taken over by Assam IndustrialDevelopment Corporation (AIDC) – a Govt. of Assam Undertaking on 5th April, 2007.A new Company “Assam Trade Promotion Organization” has been formed to run the‘Maniram Dewan Trade Centre’. The Centre was inaugurated on 19th February, 2009by the Hon’ble Union Minister for Commerce & Industry.

• A project of establishment of an International Trade and Convention Centre at Pampore,

J&K, Srinagar is under consideration with a total funding support of Rs.30.00 croreonly from Govt. of India under ASIDE Scheme. The State Government has identified50 acre land at Pampore which is 12 kms away from Srinagar. Detailed project reporthas been prepared for this project.

Commercial Publicity & Public Relations

During the year, ITPO made optimum publicity arrangements through print, electronic andinternet media to mobilize participation as well as promote its various events in India andexclusive shows in select locations overseas. This publicity campaign was supplemented withbrochures, invitation mailers, posters, fair catalogues and outdoor media efforts. ITPO also

effectively liaised with the Print and Electronic Media to ensure maximum coverage andfootage for its events in India and exclusive exhibitions abroad. Promotional booklets werealso brought out in respect of India’s participation in different overseas fairs.

The various facets of ITPO’s activities and its exhibition infrastructure were highlighted in theCalendar of Events which also listed ITPO’s programme of events in India and abroad over aperiod of three and two years respectively besides events of other organizers in PragatiMaidan, New Delhi during the year. Similarly, a Calendar of Events folder highlighting ITPO’sprogramme of events in India during 2009-12 was also brought out. The Calendar was mailedto its target audience comprising trade and industry associations in India and abroad, overseasmissions in India and Indian missions abroad, nodal industry organizations in different States.

It was also widely distributed at various overseas fairs participated by ITPO and at exclusivetrade shows organized by ITPO in select locations.

ITPO also brought out a quarterly newsletter ‘Log On’ for disseminating information onITPO’s events and activities to trade and industry in India and overseas, Central Ministries andDepartments, State Governments, PSUs, EPCs etc. As part of corporate publicity efforts,advertorials were brought out in publications/newspaper supplements in respect of major fairswhile corporate advertisements on major fairs were released in prominent publications. The



Corporate Publicity booklet “ITPO - Leveraging Indian Business Globally” highlightingITPO’s role and activities in pursuance of its mandate, was also distributed to target audience inIndia and abroad. Tender notices pertaining to various matters were also released in variouspublications from time to time.

Infrastructure

During the year 2009-10 (April–December, 2009), ITPO has undertaken works of modernization/upgradation of facilities in Pragati Maidan as follows:

• Improvement of Gate Nos. 1, 2, 3, 4, 5, 7, 8 & 10

• Improvement of front area of Shakuntalam Theatre

• Providing/fabrication of Porta Scanner Rooms near Gate Nos.2,3,4,5, 8 & 11

• Integration of Hall Nos. 14 & 18

• Upgradation of isolated toilet blocks between Hall No. 14 &18

• Improvement at the entrance of Hall No.8

• Resurfacing of roads at various locations in the ground• Procurement of Plastic Dustbins

• Renovation of toilet blocks at Hall No.1

• Renovation of Ticket Booth at Gate No.1 & 2

• Providing/Installation of Scanner Machine at Gate Nos.1,2,4,5,8 & 11

• Supplying and fixing the emergency light fittings (LED) on the Exit Gate of Halls

• Providing exit signs at various Halls at Pragati Maidan

• Providing Hose Reels and Manual Call Points in Hall Nos.1 to 6, 15 &16

• Augmentation of Electric Substation No.V at Pragati Madian

• Upgradation and replacement of DG set at Substation No.II at Pragati Maidan

Security Measures

Outcome Budget 201011

Documents

Transcript of Outcome Budget 201011