Samsara Newsletter

www.samsaragroup.com

Week 32, 2019 (Aug 3 - Aug 9)

Policy & Economy News

Maharashtra tops in GST, contributes 15% of total collection in India

Modi's four initiatives make Indian e-commerce world's fastest growing; set to grow 8-fold by 2026

Business News - The India Boom Factor

India's corn imports seen climbing to record high

Coal imports likely to rise by 13 pc to 185 mt in 2019

S Jaishankar stresses on better connectivity between India, MGC Countries to boost economic growth

Shipping News

Largest container movement through inland water transport flagged off

Hoegh Autoliners loads longest break-bulk unit on RoRo in Ennore

Mansukh Mandaviya & Tourism Minister discuss ways to promote Maritime Tourism in India in big way

Logistics News

Reliance may set up global logistics hub in MP after Ambani, Kamal Nath hold talks

Indian Port News

Ship agents welcome Mumbai Port's decision to raise draught level to dock vessels during low tides

JSW Jaigarh Port handles highest sugar traffic amongst non-major ports

Visakhapatnam Port Trust becomes 3rd Major Port in Cargo traffic

Policy & Economy News

Maharashtra tops in GST, contributes 15% of total collection in India
Daily News Analysis - August 8 Top
According to the finance minister Sudhir Mungantiwar, the growth of Maharashtra among all states of India is highest that has positively resulted in high revenue earning

Maharashtra has contributed Rs 1.70 lakh crore (Rs.1.7 trillion) revenue that is 15% of total Goods and Service Tax (GST) collection of all India in the year 2018-19. Maharashtra's contribution has been registered as the highest GST collections among all states of India.

According to the finance minister Sudhir Mungantiwar, the growth of Maharashtra among all states of India is highest that has positively resulted in high revenue earning. "The growth of Maharashtra continues to be high. We have contributed 8% higher than the last year's GST contribution. It again establishes that Maharashtra is the growth engine of India," the finance minister added.

He said that the hiccups in the GST system have been settled for now. "Things are coming back on the path of progress. Now, GST return submissions is very easy and simple for taxpayers. We have removed all complicated windows from the GST return filing system to enable filing returns on time," added the Finance Minister.

The minister said that the per capita income in Maharashtra is also high. "That was reflected in the growth of GST this year. The businessmen are getting the duel benefit in this GST system. They are getting the rebate as we as cut on the charges on GST. Besides, consumers are also getting the goods on a reasonable amount. This is the healthy sign of our economy," Mungantiwar added.

He said that PM Narendra Modi has decided to convert India's economy into a 5 trillion dollars economy. "The net of taxpayers number has been also increased from 7.79 lakh taxpayers to 15.34 lakh taxpayers this year," the finance minister added.

Modi's four initiatives make Indian e-commerce world's fastest growing; set to grow 8-fold by 2026
Financial Express, August 9 Top
While Indian e-commerce is growing at a stellar rate, initiatives such as Digital India, Skill India, Startup India and Make in India are also contributing to the growth of the online trade.

Several of Narendra Modi-led BJP government's initiatives are providing a fillip to the growth of the Indian e-commerce industry. While Indian e-commerce is growing at a stellar rate and is the fastest growing online business industry in the world, initiatives such as Digital India, Skill India, Startup India and Make in India are also contributing to the growth of the online trade, CARE Rating said in a report. The industry has witnessed an annual growth rate of 51%, which is the highest globally, and from $24 billion in 2018, the industry is expected to touch $200 billion by 2026; over eightfold growth in eight years, according to ASSOCHAM-Forrester study paper as well Retail Association of India (RAI).

Indian e-commerce is also flourishing on the back of higher internet penetration, increasing quality of internet in the country, advancements in payments and computing on mobility platforms, changing consumer behavior and shopping patterns and the availability of products priced at lower rates on e-commerce platforms. "E-commerce is probably creating the biggest revolution in the retail industry, and this trend will continue in the years to come," the CARE Ratings report said.

Early this year, the government had amended FDI (Foreign Direct Investment) policy in e-commerce for all the entities operating as e-commerce marketplace. Effective from February 1, 2019, the policy changes provide clarity and strengthen the regulatory framework governing FDI in e-commerce marketplace entities in India and also sought to provide a level playing field among online and offline traders. This came in the light of traditional retailers accusing e-commerce entities of distorting market place by predatory pricing and unfair trade practices. It was expected that the tightened norms will considerably affect e-commerce business in India.

In India, the share of electronics and accessories sales is the highest on e-commerce platforms with over 40% sales happening in these two categories. Lifestyle and apparel is another leading category with over 25% sales. Home & Living account for 5%, food and grocery for 2-3% and other category sales are about 20-30%, according to the report. Currently, the Indian e-commerce landscape is dominated by players such as Jeff Bezos' Amazon and Walmart acquired Flipkart

Business News - The India Boom Factor

India's corn imports seen climbing to record high
Exim News Service - New Delhi, Aug. 4 Top
India's corn purchases are set to climb to a record 1 million tonnes in the year starting in November as the country's growing affluence is seeing its population turn more carnivorous, leading the country with the world's highest number of vegetarians to import more corn for chicken feed than ever before, says a report.

In fact, India's growing population, rising disposable incomes and changing food habits are boosting the consumption of non-vegetarian food, according to CLFMA, an association of Indian feed manufacturers. Chicken demand is likely to rise by about 5 per cent on the year to 5.1 million tonnes this year, according to the US Department of Agriculture (USDA).

The other reason for the increased imports is India's own corn production, which may disappoint after several producing states received scant rains last year. The output is estimated at between 18 million tonnes and 19 million tonnes in 2018-19, compared with demand of as much as 20 million tonnes, CLFMA said. That's much below the government's own production estimate of 27.8 million tonnes.

That also means that India, which was a net exporter until last year, is likely to sell just 500,000 tonnes this season, less than half of the 1.1 million tonnes it exported in 2017-18, the USDA said, as per the report.

Coal imports likely to rise by 13 pc to 185 mt in 2019
Exim News Service - New Delhi, Aug. 5 Top
India is expected to import up to 185 million tonnes of thermal coal in 2019, which is about 13 per cent higher than its estimate for 2018. India's coal imports from Australia and Colombia will increase in the long run as demand for high-energy coal grows due to environmental reasons, Dale Hazelton said at the India Coal Conference in New Delhi, as per a report.

In fact, coal is among the top five commodities imported by India, one of the world's largest consumers of coal, and its imports of the dirty fuel rose in 2018 after two consecutive years of decline.

India's imports of American coal grew 24 per cent in 2018-19 largely due to restrictions on consumption of petroleum coke, a better burning alternative to coal, in some parts of the country.

The country's overall coal demand rose 9.1 per cent to 991.35 million tonnes during the year ended March 2019, with utilities accounting for a lion's share of the consumption.

Consumption by state-run NTPC Ltd, India's largest electricity generator, was 185 million tonnes in 2018-19. Imports have been rising mainly because of state-run Coal India's inability to cater to demand from the cement and sponge iron industries, whose coal requirements rose by over two-thirds during 2018-19, said the report.

S Jaishankar stresses on better connectivity between India, MGC Countries to boost economic growth
Daily Shipping Times, New Delhi August 07 Top
External Affairs Minister S Jaishankar has emphasised on better connectivity between India and other member countries of the Mekong Ganga Cooperation (MGC) bloc for developing a vibrant economic growth corridor.

The MGC, is a sub-regional cooperation organisation comprising India and five ASEAN countries, namely, Cambodia, Laos, Myanmar, Thailand and Vietnam. Addressing the 10th MGC Ministerial Meeting in the Thai capital Bangkok, Dr Jaishankar said, connectivity is a major focus area of cooperation for India.

He said, New Delhi looks forward to the early completion of the India-Myanmar-Thailand Trilateral Highway and its extension to Cambodia, Lao PDR and Vietnam. During the meeting, the new MGC Plan of Action 2019-2022 was adopted that envisages project-based cooperation in various areas including tourism and culture, water resources management.

Shipping News

Largest container movement through inland water transport flagged off
Exim News Service - Kolkata, Aug. 4 Top
On the morning of July 30, 2019, 52 containers loaded on the inland vessel MV Bhavya, bound for Patna, sailed from Haldia International Container Terminal (HICT), Haldia Dock Complex (HDC-KoPT), through the river Ganga (National Waterway-1). The containers, belonging to Adani Logistics and carrying edible oil of Adani Wilmar, are expected to reach their destination in 9-10 days covering a distance of 955 km.

This was the country's largest container movement through Inland Water Transport (IWT) and stands testimony to the readiness of National Waterway-1 in providing a seamlessly enabled fairway, emphasised a release.

The vessel, operated by Adani Logistics, loaded 48x20' laden containers and 4x20' empties for Patna. Adani Wilmar's edible oil (packaged form) was shipped in the containers. The vessel was flagged off by Mr G. Senthilvel, Deputy Chairman, Haldia Dock Complex, and Mr Anil Kishore Singh, CEO, Inland Waterways Division, Adani Ports and SEZ, in the presence of senior HDC officials and Capt. Sudeep Banerjee, Terminal Head-HICT.

On July 31, Inland Waterways Authority of India (IWAI) Chairman, Mr Pravir Pandey, along with Mr Vinit Kumar, Chairman of Kolkata Port Trust, Mr Anil Kishore Singh and other senior government officials welcomed and flagged off the vessel at Kolkata's Garden Reach Jetty-II for its onward journey.

This movement could be made possible as IWAI has put a robust ecosystem of fairway, berthing, pilotage, river information systems and night navigation facilities in place on the Ganga. Maintenance dredging is being carried out on the NW-1 to ensure a Least Assured Depth of three metres.

While a state-of-art multimodal terminal (MMT) at Haldia is in the penultimate stage of being ready, IWAI is likely to deliver the Rs 281-crore (Rs.2.8 billion)MMT at Sahibganj in Jharkhand this month. The country's first riverine MMT (in Varanasi), built at a cost of Rs 170 crore (Rs.1.7 Billion), was dedicated to the nation by the Prime Minister in November 2018.

The critical interventions by IWAI towards capacity augmentation on NW-1 have inspired notable confidence among shippers and cargo owners. This 52 container movement by Adani Logistics follows earlier movements on the Ganga by a slew of cargo owners like PepsiCo, Emami Agrotech, IFFCO and Dabur India who have come on board inland waterways. Maersk, the world's largest container line, had also moved cargo on NW-I-16 containers from Varanasi to Kolkata in February this year.

In the run-up to the latest shipment, several landmark movements have already been conducted on NW-1, including India's first container movement (16 TEUs belonging to PepsiCo) from Kolkata to Varanasi, received by the Prime Minister himself on November 12, 2018.

Seventeen other major pilot movements have occurred on NW-1 with different cargo like stone chips, foodgrains, fly-ash, cement, fertilisers, wood blocks, silica sand, FMCG cargo, containers, etc.

IWAI aims to increase cargo transportation through IWT in India from 72 million tonnes currently to 120 million tonnes by 2023.

Inland waterways transport has given a new dimension to logistics services for the trade, in addition to the existing ex-im and coastal services at Haldia International Container Terminal, Haldia Dock Complex, the release said.

Hoegh Autoliners loads longest break-bulk unit on RoRo in Ennore
Exim News Service - Chennai, Aug. 5 Top
Sensitive cargo such as windmill blades requires white-glove treatment and experienced personnel to perform the operations. This customer chose Hoegh Autoliners' RoRo services before conventional Lift On Lift Off operations because of its clear benefits for sensitive break-bulk cargo, it emphasised in a release.

When presented with the opportunity to transport the 28 m long windmill blade from Ennore, India to Shanghai, China, Hoegh's break-bulk team in India was quick to respond.

Capt. Lester Fernandes, Port Captain, Hoegh Autoliners India, says: "This was a bold step as no RoRo carrier had handled such long break-bulk cargo from Ennore Port before. With careful and meticulous planning of the operation in coordination with the customer, we ensured that the cargo was safely loaded and secured on board our vessel."

The shipper had previously used conventional Lift On Lift Off vessels to transport their break-bulk cargo and was positively surprised when Hoegh's Breakbulk sales team presented them with guaranteed underdeck stowage on its RoRo vessels. In addition, the operational risk could be significantly reduced as RoRo require less lifting of the cargo. In this case, the maximum height the cargo needed to be lifted was two metres.

Mr Atuldutt Sharma, Breakbulk Sales Manager, Hoegh Autoliners India, explains: "This can be compared to the cargo operations performed with a Lift On Lift Off vessel, where the windmill blade would likely travel a distance of 10 to 12 m horizontally hanging 15-20 m above the ground."

He continues: "The customised solution provided by Hoegh Autoliners, coupled with our past experience of handling sensitive and complex break-bulk cargo, and regular liner service with the shortest transit time was exactly what the customer needed for their sensitive cargo."

As per the release, the reasons the customer chose Hoegh Autoliners' RoRo services for their sensitive and long break-bulk unit were:

Operational safety

The windmill blade is only supported by two frames, something that enhances the chances of damage to the cargo when using Lift On Lift Off operation as compared to a RoRo option.

On board Hoegh's RoRo vessels, all cargo is secured under deck stowage.

Regular liner service saves storage costs

Hoegh Autoliners operates a regular direct monthly service from Ennore to Shanghai and other ports in East and South-East Asia, which was a perfect fit for this cargo; meeting the customer's requirement of a short transit time.

A regular liner service provides the customer with a reliable solution, helping them minimise their operational and storage costs and not store their cargo for long in factory or port.

Experienced break-bulk transporter

Hoegh Autoliners is a leading RoRo carrier with expertise in handling a wide variety of break-bulk, project and out-of-gauge cargo globally. It regularly handles shipments of windmill blades across various destinations globally, with the longest one being 34 metres long, the release highlighted.

Mansukh Mandaviya & Tourism Minister discuss ways to promote Maritime Tourism in India in big way
Daily Shipping Times - New Delhi, August 7 Top
The Minister of State for Shipping (I/C) and Chemicals & Fertilizers, Shri Mansukh Mandaviya and Minister of State (I/C) for Tourism & Culture, Shri. Prahlad Singh Patel discussed the immense potential for maritime tourism in the Country. In a meeting between the two Ministers held in New Delhi, the two Ministers emphasised the need to promote the important tourist destinations in the coastal areas of the Country through Coastal Tourism.

It was decided in the meeting to set up a committee of senior officials of the two Ministries to explore the avenues for coastal tourism in the Country and work out ways to promote the same. It was also decided to explore the possibilities and opportunities in the areas of Coastal Tourism, Cruise Tourism, Sea Sports, Light House Viewing Gallery.

It was suggested that every coastal area can create a calendar of events for tourist engagement, with activities like beach volleyball, sand art, food festivals, dances of the fishing community, to name a few. The Shipping Ministry is promoting tourism in Maritime States under the Sagarmala Programme. This is being done in convergence with the Ministry of Tourism and Tourism Development Departments of maritime State Governments.

Logistics News

Reliance may set up global logistics hub in MP after Ambani, Kamal Nath hold talks
India Seatrade News - August 9 Top
Reliance Group is planning to set up a Global Logistics Hub in Madhya Pradesh as a part of Kamal Nath government's push for exploiting industrial development prospects within the state, an official said here.

A discussion took place between chief minister Kamal Nath and Reliance Industries Chairman Mukesh Ambani in Mumbai on Wednesday after which, the MP chief extended an invitation to the tycoon to invest in new technology in the state.

"This will boost trade and employment opportunities in the state," Nath said, adding that the venture would benefit both the state and the investor.

According to the govt official, Ambani said Jio data is used in Madhya Pradesh more than it's used in South Korea or UK, and that the network could be further channeled in fields like crimes against women, crime investigation and control.

Like Amazon and Walmart, the Reliance group could also set up a Logistics Hub in Madhya Pradesh, the official quoted the chairman as saying. The group has already established the same facility in Mumbai and Bengaluru.

"Reliance is willing to invest in battery manufacturing for energy storage sector and MP is on top priority for this," Ambani said. He was replying to Nath's statement that MP could be a center of horticulture, food processing, data processing and energy processing.

The industrialist added that MP could emerge as a hub for horticulture and food processing, a move which would benefit farmers in the state.

Indian Port News

Ship agents welcome Mumbai Port's decision to raise draught level to dock vessels during low tides
Exim News Service - Mumbai, Aug. 5 Top
Mumbai Port's decision to raise the draught level to 10.3 metres and 11 metres to dock vessels at BPX and BPS, respectively, subject to low tides being over 60 cm, has been welcomed by the maritime fraternity.

This has avoided the waiting period for the vessels arriving with deep draughts till the tide is favourable for berthing. At times, such vessels had to arrange for discharging the import cargo for reducing the draught in stream and only subsequently berth at BPX/BPS.

Similarly, vessels with export-oriented cargo had to leave the berth to move further in the stream to enable loading cargo on the vessels.

With the raising of the draught level, the vessel operators can now improve turnaround time and reduce the additional costs incurred in loading and unloading cargo, said a release.

In a letter to Mumbai Port, the Maritime Association of Nationwide Shipping Agencies - India (MANSA) said, "Our members appreciated the move and are highly grateful for this progressive move to facilitate the docking of deeper vessels, thereby reducing the waiting time for such vessels on arrival during the fluctuating tides for berthing."

Established in 1977, MANSA, which was till recently known as Mumbai and Nhava-Sheva Ship-Agents Association, underwent a name change to position the association's nationwide character given that its members account for 85 per cent of the cargo handled at all ports across the country. It gives a powerful voice to the grievance of ship agents and addresses their issues to enhance the working and business environment, besides good relationships with the port authorities and port administration, the release highlighted.

JSW Jaigarh Port handles highest sugar traffic amongst non-major ports
Exim News Service - Mumbai, Aug. 6 Top
JSW Infrastructure's flagship, Jaigarh Port, has added another feather to its cap by successfully handling the highest sugar volume among the non-major ports during the recent sugar season. The port handled over 4.67 lakh MT of bulk and break-bulk sugar vessels, highlighted an official release.

The strategic location of Jaigarh Port, availability of good sugar handling facilities and availability of a large number of trucks for transportation, gives it an advantage of servicing the sugar companies in the hinterland of Maharashtra and Karnataka. Jaigarh Port has two deep-draught berths of 18.50 metres for handling sugar vessels, well-built infrastructure for truck parking, first class driver amenities and warehousing facilities of over 210,000 MT. All these factors have played a major role in achieving this important milestone.

Jaigarh Port has received daily sugar receipt ranging from 6,000 MT-7,000 MT, even going up to a maximum of 9,000 MT during the entire season. The port has consistently loaded minimum bulk sugar cargo of 12,000 MT/day, going up to a maximum of 16,000 MT/day, the release said.

Speaking on the occasion, Mr Devki Nandan, Senior Vice-President, Business Development, said: "We would like to thank our valuable customers for giving us the opportunity to serve them and establish a good partnership for all-around development of Jaigarh Port."

Jaigarh Port has expanded its clientele by reaching out to customers who are located more than 500 km from the port. Exporters have expressed their satisfaction about the services provided by the port, the release added.

Capt. Sriram Ravichander, Unit Head - JSW Jaigarh Port, said: "We are delighted to achieve this significant milestone. We thank all our stakeholders, transporters and stevedores for their continued support, cooperation and contribution. We are constantly improving our efficiency and will try to do even better in the coming season."

About JSW Infrastructure/Jaigarh Port

JSW Infrastructure is one of the leading private sector infrastructure companies in India. As a commitment to the nation, it is dedicated to developing world class ports, shipyards, townships, roads and rail connectivity, inland waterways, water treatment plants, special economic zones and other infrastructural facilities. Currently, the company's port vertical operates environment-friendly seaports and terminals in Maharashtra and Goa that offer mechanised and multi-cargo handling facilities to customers.

JSW Jaigarh Port is a greenfield, multi-cargo deep water port in Maharashtra having a capacity of 50 MMTPA which is now being expanded to 80 MMTPA. In the near future, the port is getting ready for a giant leap to handle 65 MTPA of cargo and is aiming for direct berthing of next generation vessels, i.e. largest dry bulk carrier (Vale Max), LNG carrier (Q-Max), largest container vessels (EEE Series) and very large crude carriers. It aims to become one of the most modern and mechanised ports in India, benchmarked to international standards and catering to crude, POL, chemicals, RoRo, liquid, containers, break- bulk and bulk cargoes.

Visakhapatnam Port Trust becomes 3rd Major Port in Cargo traffic
Daily Shipping Times - Vizag, August 6 Top
The Visakhapatnam Port Trust (VPT) stood third among Major Ports in cargo traffic during April to July in the current financial year. The VPT moved to 3rd position from 4th position it got in the last financial year 2018-19.

The VPT handled cargo traffic of 23.70 million tonnes during April to July 2019 as compared to 21.52 million tonnes of corresponding period of previous year; thus, an incremental volume of 2.18 million tonnes is achieved. The growth of more than 10 per cent achieved by the VPT is the highest among Major Ports.

Increase in volumes of iron ore and pellets, coking coal, crude oil and petroleum products and container cargo have collectively contributed to the growth in traffic at the VPT. Cargo traffic handled at Visakhapatnam Port is continuing to be on growth trajectory for the fourth consecutive year.

The Trust has constituted a Business Development Team and adopting innovative marketing strategies. The VPT has taken up providing end-to-end logistics solutions to its customers. An MoU was signed recently with Tangedco for undertaking end-to-end service of transportation of coal from mines to the power plant in Tamilnadu. The logistic solution include undertaking services outside the State.

The VPT's boundary by monitoring wagon loading at mine heads, liaising with railways for transportation to the port besides providing port services like unloading from rakes, storage of cargo and loading into ships.

Similar end-to-end service is offered for coal transportation to the Nagarnar steel plant of NMDC which is actively pursued. These measures are yielding positive results. Meanwhile, VPT Chairman Rinkesh Roy congratulated the VPT team, PPP operators, stevedores, shipping agents and the stakeholders for the achievement. He expressed confidence that the port will continue the buoyancy and retain the third rank by the end of the year and also expressed hope that the port will be able to reach 70 million tonne mark.

---------------------------------------------------------------------------------------------------------------------

Map