Minister Gadkari Highlights Aggressive Infrastructure Expansion

Speaking at a session on Opportunity in Infrastructure, Logistics Technology and Equipment in New Delhi this November, the Federal Minister for Road Transport & Highways, Shipping, Water Resources, Nitin Gadkari, said that the  federal government is committed to providing transport and logistics infrastructure in the country.

Gadkari noted that the logistics cost in India was higher than China’s. “We are trying to bring this cost down which will make Indian goods more competitive in the international market,” Gadkari said, adding that the government was prioritizing coastal transport and inland waterways which are priced comparatively lower than road or rail tariffs.

Nitin Gadkari

The Press Information Bureau quoted Gadkari who recounted:

  • Construction work for Logistics Parks  in  Chennai, Bangalore, Hyderabad, Vijayawada, Surat and Guwahati has begun.
  • Construction of National Highways has gathered considerable momentum. Three years ago the country had just 59,652 miles of highways, but this has now grown to nearly 105,633 miles, and will soon reach a length of 124,274 miles.
  • 44 Economic Corridors and 24 Multi Modal Logistics Parks have been planned under the Government’s flagship program Bharatmala. These will facilitate faster movement of farm produce to food processing centers and to markets.  14 Coastal Economic Zones to help fishermen and the fishing industry have been planned under the Sagarmala program. Two mega food processing parks for processing, grading and packaging of fish will also be developed.
  • 111 waterways are being developed as National Waterways.  The rivers Ganga, Brahmaputra, and Barak are already under development. Water transport will reduce logistics costs.
  • The efficiency of the 12 major ports has been growing rapidly, and they have been making profits consistently over the last three years. Dry ports are being developed at Jalna, Vidarbha and Nashik to begin with. The availability of ports will give a boost to movement of goods.

 

November 8, 2017   No Comments

Exports Look Up for Global Auto Makers in India

According to the latest export numbers released by the Society of Indian Automobile Manufacturers, Ford India maintained a strong export trajectory for April – September 2017. With 82,347 units (+11.5% growth) Ford has the biggest share, accounting for 22.7% of the shipments. Built at the integrated Sanand plant in Gujarat, the made-in-India Ka+ is mainly exported to Europe. The company also exports the Ka compact sedan and standard sedan along with the EcoSport SUV (made at the Chennai plant) to foreign markets.

Cars

Hyundai India currently exports its vehicles to 87 countries worldwide. The key global markets for the company are Latin America (Mexico, Chile , Peru, Panama); Africa & Middle East (South Africa, Algeria, Tunisia) and the Asia Pacific (Philippines, Nepal).

With export numbers of 50,410 units Volkswagen India recorded a growth of 16.9% . The company, which has for long been benefiting from its make in India growth strategy, exports cars from its Pune plant to over 35 countries across the four continents: Asia, Africa, North America and South America. Mexico continues to be its biggest export market, contributing over 80 percent of its overseas volumes.

GM India, focused solely on export operations from its Talegaon plant since end-April 2017, has shipped 45,222 units (47.7% growth), enough to keep its operations in India running, reports Autocar Professional.  GM will stop selling cars in India next month.

Fiat Chrysler Automobiles India started local manufacture of its Jeep Compass SUV five months ago.  On October 25, FCA India shipped its very first batch of 600 units of the Jeep Compass from the Bombay Port Trust facility to Australia and Japan. The company says the Ranjangaon-produced SUV with over 65 percent local content will go to other international markets such as the U.K., New Zealand, and South Africa through the ongoing quarter of 2017.

 

 

November 2, 2017   No Comments

India’s Food Safety Regulator Eases Business Policies

To facilitate ease of doing business, state-owned Food Safety and Standards Authority of India (FSSAI) put in place procedures to simplify licensing and registration processes:

  • It developed an online Food Licensing and Registration System in all states, (except in Nagaland) as also at airports, seaports and in India’s railway systems.
  • Working in collaboration with the national Center for Good Governance, FSSAI developed forms  that are now much simpler than before.
  • Inspection of premises before issuing licenses has been waived by the authority.
  • FSSAI will strengthen its customer care cell and make it available throughout the day for consumer complaints, food import clearance issues, food registration and licensing issues, and any other related queries.
  • FSSAI approved a policy to accept Codex standards where there are no government guidelines in place, while concurrently initiating the exercise of aligning its standards with Codex.
  • FSSAI simplified food import clearances: It integrated its Food Import Clearance System with the Indian Customs and Central Excise gateway, enabling a food importer to file an application on the Single Window Interface to Facilitate Trade or SWIFT System.

Food Import Clearance Process:

File Application on SWIFT ->Document Scrutiny->Inspection & Sampling->Samples to Lab->Lab Test Report-> No Objection or Non Conformance Certificate ->Transmit NOC/NCC online to SWIFT->Authorities decide on release of consignment

  • For importing food into India the importer must have a valid FSSAI License and the Import-Export Code from the Directorate General of Foreign Trade.
  • Currently FSSAI is present at 6 places in India: Chennai, Kolkata, Mumbai, Delhi, Cochin and Tuticorn.
  • In the case of food items with a very short shelf life, (such as fresh fruit and processed cheese) FSSAI will issue a Provisional No Objection Certificate immediately.
  • To eliminate the current practice of multiple sampling and testing from the same cargo, and to facilitate import clearance, FSSAI now allows one homogeneous sample to be drawn from commingled cargo of pulses, cereals and oils for multiple importers at the first port of discharge. The analysis report of the sample at the first port of discharge will remain valid at other ports of discharge.

FSSAI Logo

October 23, 2017   No Comments

India’s Zoomcar to Launch Bicycle Sharing Service

Ford-backed car rental service Zoomcar based in Bangalore, India, is set to start a bicycle sharing business. Founder, American  expatriate  Greg Moran, said that the company will have its own fleet of cycles and will start the service in Bangalore, Chennai and Kolkata.

“We have observed a huge market gap for trips shorter than 5 kilometers (3 miles)  and we believe that the cycle is best positioned to serve these cases. We are starting with a fleet of 500 cycles but we will take it to 10,000 within this year. We have worked heavily on the technology aspect of this business,” said Moran.

Bicycles

Zoomcar partners with a number of locations, such as retail stores and other small businesses in each city, to keep and manage the cycles. When a user requests for a cycle on the app, the nearest location will show up. The user can pick up a cycle from the location, and after using it, can leave it pretty much anywhere. The partner that is nearest has to arrange to pick up the cycle. The cycles will have GPS to indicate its location, reports the Economic Times.

October 16, 2017   No Comments

India’s Cold-Chain Infrastructure Looks Up

According to Ravichandran Purushothaman, president of Danfoss Industries, the Indian arm of the Nordborg, Denmark-headquartered Danfoss, the company is riding a boom in India’s cold-chain infrastructure.

Purushothaman, told Business Line, “The heart of the cold chains is with us,” noting that Danfoss’ cold-chain-related business grew between 20 and 25 per cent since 2014. “There is no recession in this industry,” he added.

In the past 3 years, India added over 4.5 million tons of cold-chain capacity. Today, the cold chain infrastructure is a $16 billion industry in India and is growing at 20 percent. Danfoss says that India has 6,300 cold-storage facilities — two-thirds of which are in the states of Uttar Pradesh and West Bengal —  with a capacity to hold 30 million tons of products.

Danfoss' Factory in Chennai

Danfoss’ Factory in Chennai

The country needs about 60,000 packhouses close to the farmlands where agricultural produce can be brought, cleaned, graded, and stored in cold rooms for a few days until they are dispatched to the markets, as well as 10,000 ‘ripening chambers’, where fruits can be ripened safely and scientifically.

October 8, 2017   No Comments