Samsara Newsletter

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Week 28, 2019 (Jul 06 - Jul 12)

Policy & Economy News

Indian pharma industry to grow at 11-13 per cent in FY20

Commerce Minister highlight measures to boost Agro Exports

Business News - The India Boom Factor

Steel imports rose by 4.7 pc in 2018-19, says Minister

India calls for diversification of export basket for sustainable trade with Indonesia

Shipping News

Changes to Indian Sea Cargo Manifest regulations from Aug. 1

PIL announces 2 new India services from Aug.

Cargo transportation through waterways on the rise: Minister

Logistics News

Dedicated Freight Corridor project to be completed by 2022

CONCOR & BHEL jointly setting up multimodal logistics facility in Haridwar

Indian Port News

DP World, UAE Region launches major initiative to attract Indian trade& investments to Jebel Ali Port & Jafza

Port capacity augmentation a top priority for govt

Maharashtra maritime policy changed to increase concession period of greenfield ports & multi-purpose jetties

Gujarat's Non Major Ports handles 103.98 MMT Cargo in Q1 FY20 : GMB

Policy & Economy News

Indian pharma industry to grow at 11-13 per cent in FY20
IBEF - July 08 Top
As healthy demand from the domestic market, given increasing spend on healthcare along with improving access, the growth of Indian pharmaceutical industry is likely to grow at 11-13 per cent in FY20.

This along with moderation in pricing pressure for US market, new dispatches and market share gains for existing products and union advantages will drive growth in FY20

And, the growth would be compelled by administrative interventions, such as, value controls, mandatory genericisation and United States Food and Drug Administration (USFDA) oversight for assembling insufficiencies".

According to an Icra report, covering a sample of 21 firms in the industry, the growth during FY2019 stood at around 12 per cent.

ICRA corporate ratings Vice President & Co-Head Gaurav Jain said, "the growth in FY2020 is relied upon to be upheld by 4.2 per cent WPI connected hike for National list of Essential Medicines (NLEM) portfolio."

The credit metric of leading pharma companies is required to stay stable in perspective on future growth prospects in regulated markets and generally strong monetary records.

Commerce Minister highlight measures to boost Agro Exports
Daily Shipping Times - New Delhi, July 12 Top
The Promotion of agricultural exports is a continuous process and to boost the agricultural exports, the Government has introduced a comprehensive Agriculture Export Policy with the following vision:

"Harness export potential of Indian agriculture, through suitable policy instruments, to make India a global power in agriculture, and raise farmers' income."

Inter-alia, the objectives of the Agriculture Export policy are as under:

i.To diversify our export basket, destinations and boost high value & value added agricultural exports, including focus on perishables.

ii.To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.

iii.To provide an institutional mechanism for pursuing market access, tackling barriers and dealing with sanitary and phytosanitary issues.

iv.To strive to double India's share in world agri exports by integrating with global value chains.

v.Enable farmers to get benefit of export opportunities in overseas market.

The Government has also brought out a new Central Sector Scheme - 'Transport and Marketing Assistance for Specified Agriculture Products' - for providing assistance for the international component of freight, to mitigate the freight disadvantage for the export of agriculture products, and marketing of agricultural products.

The Department of Commerce also has several schemes to promote exports, including exports of agricultural products, viz. Trade Infrastructure for Export Scheme (TIES), Market Access Initiatives (MAI) Scheme, Merchandise Exports from India Scheme (MEIS) etc. In addition, assistance to the exporters of agricultural products is also available under the Export Promotion Schemes of Agricultural & Processed Food Products Export Development Authority (APEDA), Marine Products Export Development Authority (MPEDA), Tobacco Board, Tea Board, Coffee Board, Rubber Board and Spices Board.

This information was given by the Minister of Commerce and Industry, PiyushGoyal, in the Lok Sabha.

Business News - The India Boom Factor

Steel imports rose by 4.7 pc in 2018-19, says Minister
Exim News Service - New Delhi, July 11 Top
India's finished steel imports rose by 4.7 per cent to 7.83 million tonnes (mt) in 2018-19 as against the import of 7.48 mt in 2017-18, as per a written reply by Steel Minister, Mr Dharmendra Pradhan, to the Lok Sabha.

Elaborating, the Minister informed the House that stainless steel, flat products such as hot-rolled and cold-rolled coils, galvanised plain or galvanised corrugated-coated and electrical sheets were the major categories imported, said a report.

India calls for diversification of export basket for sustainable trade with Indonesia
Daily Shipping Times - New Delhi, July 11 Top
India has raised concerns about widening trade deficit with Indonesia and called for diversifying the export basket for sustainable trade.

The issue was flagged by Commerce and Industry Minister Piyush Goyal in his meeting with Indonesian Minister of Trade Enggartiasto Lukita here.

"Goyal raised concerns about India's trade deficit with Indonesia which stood at USD 10.57 billion in India's trade deficit with Indonesia during 2018-19," the Commerce Ministry said in a statement.

He said the balance of trade is heavily in favour of Indonesia and both countries need to work towards establishing sustainable trade by diversifying the export basket.

"There is considerable potential for expanding trade in agricultural, automobiles, engineering products, IT, pharmaceuticals, bio-technology and healthcare sectors," he added.

With a bilateral trade of USD 21.13 billion in 2018-19, Indonesia has emerged as the second-largest trading partner of India in the ASEAN region after Singapore.

Shipping News

Changes to Indian Sea Cargo Manifest regulations from Aug.
Exim News Service - New Delhi, July 8 Top
Effective August 1, 2019, the Central Board of Indirect Taxes and Customs (CBIC) has effected a change in the regulations for filing Sea Cargo Manifest for all cargo arriving on vessels into India and departing on vessels from India.

It is now compulsory for all shipping lines and the importer/exporter to adhere to the defined timelines for manifest filing of all cargo on a vessel to/from an Indian port, as per a communique.

The rule is applicable for all cargo transhipping, discharging and going via (FROB - Freight Remain on Board) an Indian port.

Departure Manifest: Export manifest is now required to be submitted to Customs prior to the departure/sailing of the vessel from any port of loading in India.

Arrival Manifest: Import Manifest is now required to be submitted to Customs prior to the departure of the vessel from the last foreign port.

To adhere to these new timelines, lines will now need:

* Shipper's instruction to be submitted before these deadlines

* Shipper's instructions to include the following mandatory details:

1.HS Code:6 Digit HS (Harmonized) Code

2.IEC Code(Import Export Code) of Consignee

3.PAN Number of notify party (if notify party is from India)

All information (including HBL details) needs to be submitted within these new deadlines. All amendments will also need to be done before these deadlines. Non-compliance of these requirements may lead to cargo not being loaded, or issuance of original Bill of Lading may be held back, the communique pointed out.

PIL announces 2 new India services from Aug.
Exim News Service - Singapore, July 9 Top
PIL has announced the launch of 2 new India services-China India Service (CIS) and China Pakistan Service (CPS), with effect from August 2019.

These new services will provide enhanced direct service between Central/Southern China and India, Pakistan and Sri Lanka, calling Nhava Sheva, Mundra, Karachi (SAPT and Port Qasim), and Colombo, said a release.

Rotation of CIS: Shanghai - Ningbo - Shekou - Nansha - Singapore - Port Klang (Westport) - Nhava Sheva - Karachi -Colombo - Singapore - Shanghai

Maiden Voyage: SHA, August 7, 2019

Service Highlights

* Direct call from China to India/Pakistan/Sri Lanka service (v.v)

* Fastest transit time from Singapore to Nhava Sheva

Rotation of CPS: Qingdao - Shanghai - Ningbo- Shekou - Singapore - Port Klang (Westport) - Mundra - Karachi (Sapt) - Port Qasim - Singapore - Qingdao

Maiden Voyage: TAO, August 6, 2019

Service Highlights

* New and fastest service from Singapore to Port Qasim

* Faster transit time from Singapore to SAPT

* Direct call from China to India/Pakistan (v.v)

Cargo transportation through waterways on the rise: Minister
Exim News Service - New Delhi, July 11 Top
The Minister of State for Shipping (I/C) and Chemicals and Fertilisers, Mr Mansukh Mandaviya, in a written reply to a question in the Lok Sabha, informed that 111 National Waterways are being developed in a phased manner for the purpose of shipping and navigation. He highlighted that cargo transportation on waterways rose to 72.31 million tonnes (mt) in 2018-19, from 55.20 mt in 2016-17 and 55.03 mt in 2017-18.

The Minister further informed the House that various initiatives have been taken by the government to increase the use of inland waterways and coastal shipping for greater cargo shipment. These include providing assured depth of water in the channels, navigation aids like GPS and River Information System, terminals at regular intervals, facilities for mechanised handling of cargo, etc.

A minimum 40 per cent discount and priority in berthing is being given to coastal vessels at Major Ports. The Ministry of Fertilisers and the Department of Promotion of Industry and Internal Trade have agreed to provide subsidy for transportation of fertilisers as well as raw materials and finished goods for new industrial units in the North-East region through the IWT mode. Licencing relaxations have been done under Section 406 and 407 of the Merchant Shipping Act, 1958 for fertilisers, agricultural products, fisheries, horticultural and animal husbandry products, empty containers and containers being transhipped from another Indian port, special vessels such as RoRo, RoPax, and project cargo/ODC.

Allowing carriage of coastal containers through the territorial waters of Sri Lanka, Bangladesh and Myanmar and streamlining of the mechanism for freight subsidy reimbursement for fertilisers are other steps taken in this direction, informed a release.

Logistics News

Dedicated Freight Corridor project to be completed by 2022
Exim News Service - New Delhi, July 8 Top
The Dedicated Freight Corridor project will be completed by 2022, the Union Minister of Finance and Corporate Affairs, Ms Nirmala Sitharaman, said while presenting the Union Budget 2019-20 in Parliament last week.

She also pitched for Public-Private Partnership (PPP) in order to unleash faster development and completion of tracks, rolling stock manufacturing, and delivery of passenger and freight services.

The Finance Minister said that it is estimated that railway infrastructure would need an investment of Rs 50 lakh crore (Rs.50 trillion) between 2018-2030. Given that the capital expenditure outlay of the Railways is around Rs 1.5 to 1.6 lakh crore (Rs.1.5-1.6 trillion) per annum, completing even all sanctioned projects would take decades.

Railways will be encouraged to invest more in suburban rail through Special Purpose Vehicle (SPV) structures like Rapid Regional Transport System (RRTS) proposed on the Delhi-Meerut route. The Minister added that, "I propose to enhance the metro railway initiatives by encouraging more PPP initiatives and ensuring completion of sanctioned works, while supporting transit oriented development (TOD) to ensure commercial activity around transit hubs", as per a release.

CONCOR & BHEL jointly setting up multimodal logistics facility in Haridwar
Exim News Service - New Delhi, July 11 Top
The Container Corporation of India (CONCOR) and Bharat Heavy Electricals Ltd (BHEL) have signed a Memorandum of Understanding (MoU) and are moving ahead to jointly set up a rail-based logistics terminal in Haridwar, Uttarakhand, to leverage BHEL's strategic location and CONCOR's expertise in logistics. This would be BHEL's strategic entry into a new growth area. This terminal would soon be developed into a multimodal logistics facility, said a release.

BHELCON, a Joint Working Group (JWG) entity has been formed and a JWG agreement has been signed with equal financial participation by CONCOR and BHEL, the release disclosed.

Besides meeting BHEL's own requirements, the terminal would cater to the large number of industries located in the neighbouring SIIDCUL as well as other nearby industrial clusters. These industries would benefit from the cost of rail transportation being significantly cheaper than transportation by road. Moreover, the Haridwar plant is in close proximity to both the upcoming Eastern and Western Dedicated Freight Corridors and, therefore, advantageously placed to benefit from them in future.

The proposed Multimodal Logistics Park will be a state-of-art facility catering to the needs of the ex-im and domestic trade in this part of Uttarakhand. It will work as a Private Freight Terminal (PFT), facilitating the handling of railway wagons too. The terminal is expected to meet the long-awaited need for a rail-based facility in the Haridwar area, the release pointed out.

CONCOR, a Navratna CPSE under the Ministry of Railways, is the market leader in multimodal logistics in India with a network of 83 terminals across the country. It is committed to providing complete logistics solutions to its customers.

BHEL has had one of its largest manufacturing units in Haridwar since 1967. It now has three manufacturing units and one research centre in the state, the release added.

Indian Port News

DP World, UAE Region launches major initiative to attract Indian trade& investments to Jebel Ali Port & Jafza
Exim News Service - Dubai, July 8 Top
DP World, UAE Region has launched "The India-UAE Bridge", a major initiative that will attract Indian trade and investments to its flagship Jebel Ali Port and Jafza by offering end-to-end (e2e) solutions to companies and entrepreneurs.

On June 30, 2019, details of the ambitious initiative were announced at "The India-UAE Bridge" event, a jointly organised event by DP World UAE Region, Jafza and the Indian Business & Professional Council (IBPC).

The e2e solutions delivered under the initiative will support investors through value propositions such as the integration of DP World's assets in both countries, enhancing access to markets beyond the company's network connectivity and global portfolio.

Following the recent DP World Indian Traders' Incubation Centre launch at Jafza One, one of the primary purposes of the initiative is to serve as a platform for talented Indians looking to share their ideas and businesses to markets in the Middle East and further. The businesses will enjoy the exposure and connectivity to shipping lines and services, through key ports in the region, including Jebel Ali Port, and the strategic incentives and benefits of Jafza, informed a release.

The summit was attended by Mr Navdeep Suri, Ambassador of India to UAE, Mr Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region and CEO of Jafza, Mr Nimish Makvana, President of the Executive Committee, IBPC, DP World officials, and Indian business leaders and decision-makers.

Through Jebel Ali Port, Jafza and the bilateral trade between the two countries, India has predominately been one of the UAE's largest trade partners, boasting over $60 billion with annual growth rate touching 11 per cent. Both governments view this as a strategic relationship due to enter a vibrant growth phase with bilateral trade expectancy to exceed $100 billion by 2020.

In 2018, UAE company investments in India, led by DP World's $3 billion joint investment fund with India's National Investment and Infrastructure Fund (NIIF) have been set to acquire assets and develop projects in sea and river ports, freight corridors, special economic zones, inland container terminals, and logistics infrastructure such as cold storage.

Addressing the gathering, Mr Suri said: "The India-UAE Bridge is a win-win for both sides. India is now the fifth largest economy in the world and one of the fastest growing major economies. During the current year, India is expected to add almost $ 200 billion to global economic growth. DP World already has substantial investments in India and Indian companies account for a large share of total investments into Jafza. With their advanced infrastructure and logistics capabilities, DP World and Jafza are ideally positioned to become key partners in India's growth story. I expect that the proposed Bridge could become a significant element in the India-UAE Comprehensive Strategic Partnership."

Said Mr Mohammed Al Muallem: "India is the UAE's second largest trade partner, and as the region's leading trade enabler, we are keen to maintain these excellent trade ties and create a relationship that will allow both our countries to prosper. Under the India-UAE Bridge, synergies between DP World, UAE Region and India and the ports and logistics capabilities in both the countries, we will be able to offer integrated supply chain solutions to businesses through our unique end-to-end solutions.

"Since early 2018, DP World has been expanding its presence across India through logistics investments. Our flagship facilities, Jebel Ali Port and Jafza, are well positioned to integrate our assets, providing the best-in-class business and logistics support to Indian companies operating in Jafza reaching Africa, the Middle East and Central Asia. We aim to create the most productive, efficient and safe trading solutions by thinking ahead, foreseeing change and innovation."

The India-UAE Bridge is strategically designed to facilitate trade integration capabilities of global trade enabler DP World's portfolio of over 150 operations in over 40 countries across six continents. This includes the significant presence in both high-growth and mature markets, including 78 marine and inland terminals and 17 Logistics parks and Economic Zones (operational and under development), the release added.

Port capacity augmentation a top priority for govt
Exim News Service - New Delhi, July 10 Top
In order to meet the ever-increasing trade requirements, expansion of port capacity has been accorded the highest priority with implementation of well-conceived infrastructure development projects like Sagarmala, project Unnati, etc., as per the Economic Survey, which was tabled by the Finance Minister, Ms Nirmala Sitharaman, in Parliament last week.

To facilitate ease of doing business, the Shipping Ministry has identified various parameters for reducing dwell time and transaction costs at the Major Ports, which include elimination of manual forms, accommodation for laboratories to participating government agencies, direct port delivery, installation of container scanners, e-delivery orders, radio frequency identification-based gate automation system, etc.

Noting that "shipping plays a pivotal role in India's trade dynamics", the Economic Survey said, "As on January 31, 2019, India had a fleet strength of 1,405 ships with deadweight tonnage (DWT) of 19.22 million (12.74 million GT), including Indian controlled tonnage, with Shipping Corporation of India (SCI) having the largest share of around 30.52 per cent. Of this, around 458 ships of 17.58 million DWT (11.26 million GT) cater to India's overseas trade and the rest to coastal trade".

As far as the Inland Water Transport is concerned, the survey said India's first inland waterway multimodal terminal (MMT) at Varanasi was inaugurated in November last year by the Prime Minister, Mr Narendra Modi, and the first container consignment on Ganga, which had sailed from Kolkata, was received at Varanasi MMT on the same day.

The survey emphasised on promoting inland waterways as it is cheap and environment-friendly. To enhance access and establish alternative connectivity to the North-East through the Indo-Bangladesh Protocol route, dredging works between Ashuganj and Zakiganj, and Sirajganj and Daikhawa in Bangladesh through 80:20 sharing (80 per cent by India and 20 per cent by Bangladesh) have been awarded, said the Survey, as per a report.

Maharashtra maritime policy changed to increase concession period of greenfield ports & multi-purpose jetties
Exim News Service - Mumbai, July 11 Top
In a significant step, the Maharashtra Cabinet has approved the changes in the Maharashtra Maritime Development Policy of 2016 to increase the period of the concession agreement for greenfield ports and multi-purpose jetties to 50 years from 35 now, says a report.

A press statement issued by the Chief Minister's Office said that greenfield ports and multi-purpose jetty developers will have to make 100 per cent capital investment and handle 50 per cent cargo in the first 35 years.

Moreover, for developers of shipyards, the period of the concession agreement has been increased to 30 years from 10 years now. In the first 21 years of the agreement, the developers will have to make 100 per cent capital investment and reach 50 per cent target of shipbuilding and repairs, it said.

As for the jetties owned by the Maharashtra Maritime Board, the concession agreement period has doubled to 30 years. The developers of such jetties will have to handle 50 per cent cargo volume in the first 15 years. Such jetties will also be able to handle passenger and RoRo services.

In the latest policy changes, the nomenclature of the multi-purpose jetty has been changed to coastal berth for those who handle cargo for coastal shipping. For developing marine infrastructure on government land and the inter-tidal zone, the developer would be selected based on competitive bidding or through the Swiss challenge method, said the report.

With Maharashtra having the second-longest coastline among maritime states, and two major and 48 non-major ports, the policy has highlighted the opportunities for further improvement in maritime infrastructure, the report added.

Gujarat's Non Major Ports handles 103.98 MMT Cargo in Q1 FY20 : GMB
Daily Shipping Times - Gandhinagar, July 12 Top
Gujarat Maritime Board (GMB) controlled Non-Major Ports in Gujarat has handled 103.98 MMT of Cargo in Q1 FY 2019-20 (April-June) registering growth of 8.38 % on YoY basis. In fact 25.22 MMT of Crude was handled accounting for almost 24.2 %.

Traffic handled at the Non-Major Ports of Gujarat during 2018-19 stood at 399.1 MMT while the capacity of the Non-Major Ports during 2018-19 stood at 542 MMT.

In FY 2018-19, GMB handled about 57 % of total cargo collectively handled by the Major Ports in Country.

GMB has established itself as maritime leader in Port Development, Privatisation and Specialised cargo handling in India. It is also the first Maritime Board of the Country which was created up in 1982 with a vision "To enhance and harness Ports and International Trade as vehicles for economic development.

With foresighted thinking and strategically located longest coastline of 1600 kms, GMB charted a different and unexplored route of Port Development in 1980s. This was the era when

Major Ports enjoyed monopoly over sea freight, with very little or no port capacity with State Governments.

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