Samsara Newsletter

Week 52, 2019 (Dec 21 - Dec 27)

Policy & Economy News

With Over 80 GW Installed Capacity, India's Renewable Energy Generation Set to Cross 100 GW Mark in 2020

Industry captains discuss road map for $5 trillion economy

Business News - The India Boom Factor

India, Oman ink agreement on maritime transport

Renault India begins first shipment of Triber to South Africa

L&T Technology Services bags multi-million-dollar project in Europe

Agri goods can fetch India additional $97 billion in exports: FAO

Shipping News

Varanasi vegetables explore market in Dubai

Time extended to Indian nationals holding foreign certificates to sail on Indian flag ships

Logistics News

New wagon to boost cargo capacity

Indian Port News

Andhra Pradesh proposes ₹10k-cr (Rs.100 billion) seaport at Ramayapatnam

Ports for coastal shipping demanded

GMB Ports' handle 4 % higher cargo during April-Nov 2019 (YoY)

Policy & Economy News

With Over 80 GW Installed Capacity, India's Renewable Energy Generation Set to Cross 100 GW Mark in 2020
Press Trust of India - December 26 Top
India is making rapid strides towards its ambitious goal of generating 175 Giga Watt (GW) of renewable energy by 2022 as it is set to cross the 100 GW mark in production of non-fossil fuel-based power.

The installed renewable energy generation capacity of India touched around 86 GW by November-end. This includes solar, wind, small hydro, biomass, waste to energy and others, reports Economic Times.

According to the report, around 30 GW of renewable energy capacity, including 18 GW solar power projects and 10 GW wind power projects, is under implementation. Furthermore, around 40 GW renewable energy capacity, including 36 GW solar and 3.4 GW wind energy, is reportedly being tendered.

"Together with other schemes being implemented by the government, I expect RE (Renewable Energy) sector to get a big boost in 2020 and the years thereafter. I expect our RE capacity to cross 100 GW mark in 2020," Power and New & Renewable Energy Minister R K Singh said, as reported by ET.

The government has also launched several new programs such as PM-KUSUM, solar rooftop phase-2, development of Ultra Mega Renewable Energy Power Parks (UMREPPs) etc to promote renewable energy sector in India. It is also trying to resolve the issues being faced by the renewable energy sector so that the goal of generating 175 GW clean energy can be met by 2022.

Industry captains discuss road map for $5 trillion economy
The Economic Times - New Delhi, December 21 Top
The executives stressed on the need for Indian manufacturing to become globally competitive.

From policy stability to emphasis on exports of local goods, key industry players on Saturday discussed and suggested measures for making India a USD 5 trillion economy.

Chairman Anil Kumar Chaudhary, ITC Chairman and Managing Director Sanjiv Puri, Cadila Healthcare Chairman Pankaj R Patel, Bharti Enterprises Vice Chairman Rajan Bharti Mittal and JK Paper Vice Chairman and Managing Director Harsh Pati Singhania took part in the discussion during a session on 'India: Roadmap to a USD 5 trillion economy' organised by industry chamber FICCI.

The executives stressed on the need for Indian manufacturing to become globally competitive and join global value chain as the key ingredients for becoming a USD 5 trillion economy.

"If we have to reach the level of USD 5 trillion economy by the next five years, we have to be globally competitive. India also needs to increase its exports of steel and other manufactured items," SAIL Chairman Chaudhary said.

Cadila Healthcare Chairman Patel said that policy stability is required for any business to grow. "Without policy stability it becomes impossible for industry to plan long-term goals."

"We all know that manufacturing is not something we can decide today and begin the production tomorrow. It takes time. Besides, innovation has the most important role to play for any industry to survive," he said.

Bharti Enterprises' Rajan Mittal suggested that the government should focus on strengthening the digital backbone of the country.

Industry has been disrupted, he said adding that government's intervention is needed.

J K Paper's Singhania said the country's manufacturing sector first needs to become internally competitive as several factors are still holding it back including the multiplicity of regulations from different regulators.

ITC CMD Puri said that "farming is a large employer. Lots of jobs were created in the post-harvest management".

"Even the food processing segment has the largest employment to capital ratio. We need to plug into the global value chains in value-added agricultural products," he added.

Business News - The India Boom Factor

India, Oman ink agreement on maritime transport
United News of India - Muscat, December 24 Top
India and Oman on Tuesday signed an agreement for cooperation in the field of maritime transport, taking a step forward their strategic partnership. The agreement was inked during External Affairs Minister S Jaishankar's visit to the Sultanate at the invitation of his Omani. counterpart Yusuf bin Alawi bin Abdallah.

Jaishankar, who is in the Sultanate on a two-day trip, also met Defence Minister Bader Bin Saud Bin Harib Al Busaidi, and discussed enhancing defence cooperation, a key pillar of the bilateral partnership.

The EAM reaffirmed India's commitment to expand robust defence, security and maritime ties. India-Oman relations encompass a wide spectrum of activities in trade, energy and investment. However, it is bilateral defence cooperation and Oman's role in regional affairs that make Oman important for India.

Oman has allowed India including Navy access to its Duqm port.

India is among Oman's top trading partners. During 2018-19, bilateral trade was $5 billion. In 2018, India was the second largest importer of crude oil from Oman.

The visit of Prime Minister Narendra Modi to Oman in February 2018 was path breaking and has led to further consolidation of close ties as well as identifying new areas of cooperation. The Ministry of External Affairs said Jaishankar's visit is in pursuit of India's objective of enhanced engagement with the Gulf region which is in India's extended neighbourhood.

It will provide an opportunity to hold in-depth discussions with the political leadership on a wide range of bilateral, regional and global issues and will advance India's growing engagement with Oman and the region.

India has vital stakes in the security and stability of the Gulf region. The safety and security of some 8 million Indian expatriates is a top priority.

During the visit, Jaishankar would interact with the Indian community on the premises of the Indian Embassy in the diplomatic quarter in Al Khuwair, who remit around $30 billion annually.

Renault India begins first shipment of Triber to South Africa
IBEF - December 26 Top
Renault India, French auto-major, commenced the first shipment of the latest car Triber from the Ennore Port, Chennai to South Africa.

"It is great day for us. We are exporting about 600 cars today. We were at the port in this morning. This is first lot of Triber going out of India," Renault India (operations) country CEO Mr Venkatram Mamillapalle said.

The company registered a cumulative growth of 70 per cent in the last two months as the Triber surpassed the sales of 20,000 units in the domestic market.

Renault Triber comes with the new ENERGY 1.0 litre petrol engine which offers balance between performance and fuel economy at low maintenance costs.

L&T Technology Services bags multi-million-dollar project in Europe
IBEF - December Top
L&T Technology Services said on Monday that it bagged a multi-million-dollar engineering, procurement and construction management project in Europe.

"L&T Technology Services Ltd (LTTS) won a multi-million dollar project from one of the world's top plastics, chemicals and refining manufacturers, to deliver the entire spectrum of engineering, procurement and construction management (EPCM) services for the expansion of an existing site in Europe," the company said in a filing to BSE.

The expansion project will be implemented in a period of over 30 months at the customer's brownfield plant in Germany.

LTTS, being the strategic engineering partner, will execute the entire project through an EPCM model, from procurement and supply chain management support to safety aspects and efficient design.

"LTTS has already carried out successful brownfield projects in the USA and we are privileged to extend our engagement with an important customer to the European markets," Mr Amit Chadha, President, Sales and Business Development and board member at L&T Technology Services said.

The shares of L&T Technology Services were trading at Rs 1,474.60 (US$ 21.10) a piece on BSE in morning trade.

Agri goods can fetch India additional $97 billion in exports: FAO
Press Trust of India - December 26 Top
The country's share in the global market for 19 commodities was a miniscule 1.5 per cent, or around USD 1.5 billion (about Rs 10,650 crore), in 2017 against a potential of USD 97 billion, the World Trade Centre said in a statement on Thursday quoting the FAO data released recently.

Select agri and agri-based commodities like meat, milk and fruits, among others, present export opportunity worth over USD 97 billion (about Rs 6.9 lakh crore) for India, as per data from the Food & Agriculture Organisation. India's export share in agri items such as bananas, oranges, chicken, meat, and milk products like cheese and butter milk is miniscule at present, the data showed.

The country's share in the global market for 19 commodities was a miniscule 1.5 per cent, or around USD 1.5 billion (about Rs 10,650 crore), in 2017 against a potential of USD 97 billion, the World Trade Centre said in a statement on Thursday quoting the FAO data released recently. While global market for meat and chicken is a whopping USD 20.6 billion, the country's export share is only 4.04 per cent of this.

Similarly, global market for bananas is close to USD 15 billion wherein India's share is a paltry USD 480 million, the statement said. Butter and cow milk provide a USD 8 billion opportunity, while India does not get a single penny from their exports, it said.

The country earns USD 275 million annually from export of grapes, while the global market is worth USD 8.6 billion.

Significantly, food waste is a USD 11 billion market, but India earns nothing from its export. It can be noted that nearly a third of Indian farm produce is wasted due to lack storage/proper transport facilities, it added. The global onion export market is over USD 3 billion, but India earns just USD 420 million from exports.

Shipping News

Varanasi vegetables explore market in Dubai
Exim News Service - New Delhi, Dec. 22 Top
Agricultural and Processed Food Products Export Development Authority (APEDA), in its endeavour to promote exports from agriculture produce rich regions of India, last week despatched the first trial shipment of vegetables by sea route from Varanasi to Dubai. Considering the potential of production of fruits and vegetables in the Varanasi region, APEDA is in the process of setting up agri export hubs in 5 districts of the region.

The first trial shipment of a container of fresh vegetables was flagged off by Mr Paban Kumar Borthakur, Chairman, APEDA, and Mr Deepak Agrawal, Commissioner, Varanasi Region, in the presence of Mr Kaushal Raj Sharma, District Magistrate, Varanasi, said a release.

Time extended to Indian nationals holding foreign certificates to sail on Indian flag ships
India Seatrade News - December 24 Top
India's maritime administration has given a two-year extension to Indian nationals holding certificate of competency (CoC) certificates issued by Australia, Singapore, Ireland, New Zealand and UK to sail on Indian flag ships.

Only Indian nationals holding CoCs issued by Indian authorities are allowed to sail on Indian flag ships, according to rules framed by the Directorate general of Shipping.

The rule was eased in 2014 to allow Indian nationals holding competency certificates issued by entities in Australia, Singapore, Ireland, New Zealand and UK in a bid to address shortage of management level officers to man lndian flag vessels, following a representation from the local shipping industry.

The rule relaxation was valid, first till December 2016 which was further extended to December 2019.

DG Shipping officials said that the Indian National Shipowners Association (INSA), the local shipowners lobby group, has sought a further extension of the relaxation citing "continued difficulties being faced by its members to operate specialized vessels such as LPG, LNG, VLCC and fully Cellular ships due to shortage in availability of experienced management level officers of the ranks of Master/Chief Engineer and Chief Officer/Second Engineer".

"The Director General of shipping in his powers under section 456 of MS Act, 1958 has now partially relaxed section 86(1) (a) for a further period of two years enabling lndian Nationals holding COC from Australia, Singapore, lreland, New Zealand and UK to continue to sail on lndian flag vessels till 31 December 2021 on fulfilment of certain specific conditions such as deployment of one Nautical cadet or one Engineering cadet/trainee, Marine Engineer/Junior Engineer during each period of such deployment of above COE (Certificate of Endorsement) holder", the directorate general of shipping wrote in a December 2 circular.

Logistics News

New wagon to boost cargo capacity
India Seatrade News - December 27 Top
The Dedicated Freight Corridor Corporation of India, Ltd. (DFCCIL) tasked with building the over ₹81,000 crore (Rs.810 billion) freight corridor in the country, on Thursday began testing a new wagon that will help boost the cargo carrying capacity by four times due to increased length of the train, use of double-stack containers and more payload carrying capability.

"The new wagon - called BLCS (type A & B) - is currently a prototype. A total of three such wagons have been manufactured with inputs from the industry as to what their requirements are," said Ved Prakash, GM (operations), DFCCIL.

The wagon - used for hauling freight - have been tested by the Research Design and Standards Organisation (RDSO) and are manufactured at the Golden Rock Railway Workshop in Tiruchirappalli, Tamil Nadu.

These wagons will be under trial till January 26, 2020. If approved by the RDSO, wagons will be manufactured commercially as per industry requirements.

On Thursday, the trial was conducted at a speed of 100 km/hour on a 270-km-long section of the western freight corridor from Rewari to Kishangarh. Currently, maximum speed of goods trains varies from 40 kmph to 100 kmph on the Indian Railways tracks. The DFC tracks are separate from the Indian Railways tracks. However, mostly they run parallel to each other.

The corridor, touted as one of the biggest infrastructure projects in the country, will cover a 3,360-km stretch consisting of eastern and western corridors.

The 1,504-km western freight corridor begins at Dadri, Uttar Pradesh, and goes up to India's largest container port, Jawaharlal Nehru Port Trust, near Mumbai, passing vai Haryana, Rajasthan and Gujarat. The 1,856-km eastern corridor will run from Ludhiana in Punjab to Dankuni near Kolkata, traversing Haryana, Uttar Pradesh, Bihar and Jharkhand.

Once the entire corridor becomes operational in December 2021, the average speed of the freight trains is expected to increase from the current 26 km/hour on Indian Railways line to 70 km/hour on the dedicated freight corridor.

Indian Port News

Andhra Pradesh proposes ₹10k-cr (Rs.100 billion) seaport at Ramayapatnam
India Seatrade News - December 26 Top
The Andhra Pradesh government is proposing to set up a Greenfield seaport at Ramayapatnam in Prakasam district at an outlay of ₹10,000 crore (Rs.100 billion).

According to the minutes of the meeting held by an Expert Appraisal Committee (EAC) under the Ministry of Environment, RITES Ltd, a state-owned engineering consultancy company, specialising in the field of transport infrastructure made an application for necessary permissions to prepare Terms of Reference (ToR).

"The Government of Andhra Pradesh is proposing to develop a green field port at Ramayapatnam in Andhra Pradesh to meet the ever increasing cargo demand in the State.

It is proposed to be developed as a non-major state port at Ramayapatnam along Andhra Coast," the EAC said.

It has planned to develop the port as an all-weather port with world class terminal facilities well suited to meet the present and future needs of the trades and also suitable to develop as a major port.

It will have an artificial deep sea harbour along an open straight sea coast, the panel said.

The Ramayapatnam port will be developed over an area of 802 acres during first phase and 3,437 acres for the ultimate projected traffic, for the creation of permanent marine facilities for mechanized cargo handling, transportation and storage/retrieval to meet the demands of trade and shipping activities, it said.

"Investment/Cost of the project is ₹10,000 crores (Rs.100 billion)," it said.

Ports for coastal shipping demanded
India Seatrade News - Rajkot, December 23 Top
The Kutch-based industries see coastal shipping as more economical and eco-friendly mode to transport cargo across the country. The units through the Gandhidham Chamber of Commerce and Industry (GCCI) have suggested the union ministry of shipping to promote coastal shipping and develop dedicated ports for it. The suggestions were invited by the union ministry for finalising the framework for the coastal shipping.

The GCCI also provided estimated figures of cargo handling from Kutch if coastal shipping is promoted by the government.

According to GCCI, potential commodities that be shipped across the country from Kutch include minerals, timber, salt and fertilizer. The coastal shipping is a mode to transport cargo with in the country through sea route.

"Coastal shipping is more environment friendly as it produces far less green house emission and noise pollution, besides having substantial cost savings," GCCI stated in is letter to the union ministry.

Talking to Ashish Joshi, secretary of GCCI said, "We had suggested shipping minister to promote coastal shipping few months back during his visit to Kutch. He liked the idea and thereafter the ministry officials asked for suggestions to make it viable. We have provided them suggestion after surveying the need of shipping industry and all other means of transportation currently being used."

The GCCI also believes that coastal shipping will also reduce traffic on roads and lower accidents. It's suggested that currently major and private ports are highly congested due to the movement of EXIM cargo and therefore shipping ministry should develop smaller ports for dedicated coastal shipping.

GMB Ports' handle 4 % higher cargo during April-Nov 2019 (YoY)
Daily Shipping Times - Gandhinagar, December 27 Top
The Gujarat Maritime Board (GMB) Ports has handled 270.6 Million Metric Tonnes (MMT) of Cargo between April-November in FY 2019-20 registering a growth of 4.02% on YoY basis.

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.