NEWS CLIPPINGS –01-11-2018

Investment Opportunities in India’s

Andhra Pradesh

India Briefing

https://www.india-briefing.com/news/investment-opportunities-indias-

andhra-pradesh-17881.html/

Located in the southeastern coast of India, Andhra Pradesh is the eighth largest state in the country in terms of

geographical expanse, and tenth largest in terms of population.

In 2018, the state topped the ‘ease of doing business’ ranking among states prepared by the World Bank and the

Department of Industrial Policy and Promotion (DIPP). It also ranked among top ten investment destinations in

the National Council for Applied and Economic Research (NCAER)’s 2018 State Investment Potential Index (N-SIPI).

Below, we look at the state economy, investment opportunities, and government incentives available for businesses

in Andhra Pradesh.

Economy

There is a strong economic momentum within Andhra Pradesh driven by a focus on the ease of doing business,

infrastructure development, and abundant natural resources.

In the fiscal year 2017-18, the state registered a gross state domestic productivity (GSDP) of US$ 123 billion with an

11.22 percent growth rate, which is higher than the overall national average.

Sector-wise, services accounted for the highest share in the state GSDP with a total of Rs1305.87 billion (US$17.7

billion), followed by industries with a total contribution of Rs507.45 billion (US$6.9 billion) and agriculture with

Rs545.99 billion (US$7.4 billion).

Chief exports

Andhra Pradesh is a traditional exporter of spices, processed seafood, garments, artificial jewelry, and leather goods.

The state is also one of the top exporters of software, and tobacco products.

Power capacity

Andhra Pradesh has the second largest power generating utility in the country with an installed capacity of around

23,000 MW. The two cheapest sources of thermal power generation – coal and natural gas – are found in

abundance.

They are several large power plants established in the state. The major ones are located at Visakhapatnam,

Vijayawada, Kakinada, Krishnapatnam, and Cuddapah.

Major industrial cities

Andhra Pradesh has 13 districts – out of these nine are located on the seacoast and have manufacturing and export

industries as their central industries. The major industrial cities in the state are:

Visakhapatnam

The city has several private and public-sector establishments producing large-scale industrial goods such as steel,

metals, petroleum, polymers, fertilizers, and heavy engineering equipment. The presence of public sector

enterprises such as Vizag Steel (RINL), BHPV, Vizag Shipyard, and HPCL have made the city predominantly an

industrial one.

Over the years, the information technology (IT) sector has also gained prominence in the city. Andhra Pradesh is one

of the nerve centers for manufacturing, IT, as well as tourism and services.

Vishakhapatnam is also home to several institutes of excellence in research and development, education, hospitality,

and governance.

Kakinada

Kakinada is known for its anchorage port and a deep-water port. The city has a 10,000-acre multi-product SEZ and

the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR). It also has multiple fertilizer refineries and

produces a large scale of natural gas. As a result, a number of gas-based thermal power projects have come up near

Kakinada in recent times.

The city’s chief exports include seafood and related products. It also produces agricultural products like rice and corn,

edible oils, processed food products, chemicals, and biofuel.

Vijayawada

Vijayawada is famous for processing of agricultural products, automobile body building, hardware, textile, consumer

goods, and small-scale industries.

Connectivity

Known as ‘Gateway to the East’, Andhra Pradesh has established itself as one of the major connection points with

important world markets in Asia such as Hong Kong, Singapore, Japan, and China.

Currently, Andhra Pradesh has 14 notified ports out of which six are operative. Visakhapatnam port is among the

country’s most premier ports in terms of total cargo traffic handled, with a total capacity of over 65 million tons (mt)

per annum. Gangavaram port, on the other hand, has a deep draft capable of handling the largest of vessels. In

addition to these, there two operational non-major ports — Kakinada, with a capacity of 10 mt and Krishnapatnam

with 15 mt.

Besides, AP has five operational airports – Visakhapatnam, Rajahmundry, Vijayawada, Tirupati, Kadapa, and

Puttaparthi; New Greenfield International Airport at Bhogapuram (Visakhapatnam district), Dagadarthi (Nellore

district); and domestic Airport at Orvakal (Kurnool district).

It also has a 46,000 km of the road network with 4,300 km of national highways running through the state, 7,040

track km of the rail network, and about 888km of the national waterway.

Investment opportunities

Andhra Pradesh is among the top ten most preferred destinations for investment in India. The state is known for its

business-friendly policies and simplified administrative procedures.

It has several special economic zones (SEZs), and industrial corridors offering world-class infrastructure to

manufacturing and service industries.

Special economic zones

There are 114 approved SEZs in the state – of these 75 are notified, and 27 have become operational. The SEZs are

present across diversified sectors including textiles and apparel, food processing, footwear and leather products,

multi-product, pharmaceutical, and information technology, among others.

Industrial parks:

Much of the investment in Andhra Pradesh goes into Sri City and Anantapur district. Sri City, located just 65 km north

of Chennai, is a 7,000-acre private industrial park. The park is home to over 80 global companies with a cumulative

investment of Rs 25,000 crore (Rs 250 billion).

Other industrial parks located in the state are listed below:

Export Promotion Industrial Park, Pashamylaram, Medak District;

Apparel Export Park, Gundlapochampally, Ranga Reddy district;

Food Processing Industrial Park At Kuppam, Chittoor District;

HITEC city( Hyderabad Information Technology And Engineering Consultancy);

Mega Industrial Park At Parwada, Visakhapatnam;

Visakhapatnam Export Processing Zone;

Gems and Jewellery Park, Hyderabad; and

Visakhapatnam Exim Park.

Industrial corridors

The government is building three industrial corridors across the state:

Visakhapatnam Chennai Industrial Corridor, covering 11 districts of the state;

Chennai Bengaluru Industrial Corridor, with the industrial node at Krishnapatnam in Nellore district; and

Kurnool Bengaluru Industrial Corridor, with the industrial node at Orvakal in Kurnool district.

These corridors offer a massive opportunity for the establishment of manufacturing units across the following

industrial sectors: pharmaceuticals, electronics, machinery, hi-tech engineering, electronics, automobile, food

processing, textiles, building materials, and machinery parts.

Andhra Pradesh also offers procedural ease for facilitating foreign direct investments (FDIs). Over the years, the state

has recorded a healthy FDI inflow, thanks to Fortune 500 companies, which have set up operations in the state.

According to data released by the DIPP, the state attracted FDI equity inflows worth US$ 16.487 billion during the

period April 2000 to June 2018.

Government incentives

An investor-friendly state, Andhra Pradesh, has initiated several policy measures and incentives to provide a

conducive business environment to investors. Some of these are given below:

Enactment of the industrial single window clearance policy – the single window system, mainstay of the reforms, is an

online platform available 24×7 for obtaining necessary regulatory clearances. Thorough the e-platform, companies

can get all necessary clearances to establish and operate an industry within 21 working days.

Self-certification based approvals – the state government grants as many as 15 approvals on the spot based on self-

certification by the investor.

Online application and sanction of incentives – the transparent process of applying and sanctioning of industrial

incentives

Sector-specific policies – the state government along with the federal government offers industry-specific incentives

under various schemes to sectors such as automobiles and auto components, petroleum, chemicals, (including

fertilizers) and petrochemicals, energy, leather, agro and food processing, textile and apparel, electronics and IT, and

mineral based industry. The incentives range from capital and interest subsidy, power, stamp duty, and tax

reimbursements, to financial assistance for patent registration.

International desks – the government has set up international desks to facilitate assistance to foreign investors.

Joint inspections – to ensure investor convenience, inspections of several departments such as labor and factories are

combined into one inspection.

Cotton and Currency Markets

Kotak Commodities Research Desk

For more details contact : Research@kotakcommodities.com &

aurobinda.gayan@kotakcommodities.com

A. Cotton

Spot price (Ex-Gin) 28.5 to29 mm

Rs/Bale Rs/Candy USD Cent/lb

22134 46300 80.41

Domestic Futures (Ex-Gin) July

Rs/Bale Rs/Candy USD Cent/lb

22390 46835 81.34

International Futures

NY ICE USD Cents/lb. ( Dec 2018) 76.86

ZCE Cotton: Yuan/MT (Jan 2019) 14860

ZCE Cotton: USD Cents/lb. 82.29

Cotlook A Index - Physical 87.75

B. Currency

USD/INR Close Previous Close

Spot 73.445 73.468

Cotton Guide:

Market remained quiet on Wednesday. No interesting news on Cotton. The trading volumes were stable. For ready

reckoner the December future trades at ICE is still considered to have the highest open interests traded in a thinnest

band and ended the session at 76.86 cents mere down by 4 points from the previous day’s close. The next active

March 2019 contract also declined to end the session at 78.17. However the spread between the two contracts in last

one month has widened marginally from less than 1 cent to currently hovering around 1.50 cents. The carry has

increased the effect of contango amid funds roll over positions. As indicated in our previous report Rogers’ Fund Roll

and a few others are currently scheduled to roll their positions precisely cut long in December and park in March.

This is one of the reasons why cotton price has declined in last 10 days or so.

On the pricing front market is just trading above the key support area of 76 cents. The current momentum and

direction is into sell side however only on break down below 76 cents will determine further decline in the price. The

next support can be considered at the previous low of 75.37. Note by any means if the previous low is breached

further selling in the counter could be witnessed. Likewise, on the higher side we 77.50/78 cent as key resistance

level. For more details please contact commodities research desk.

FX Guide:

Indian rupee has opened firmer by 0.15% to trade near 73.84 levels against the US dollar. Rupee has benefited from

weakness in crude oil price and some stability in equity market. Brent crude trades below $75 per barrel amid near

record high production by US, Saudi Arabia and Russia. Asian equity markets trade largely higher today after gains in

US market yesterday. Upbeat ADP jobs report and signs of progress in Brexit talks have improved risk sentiment. ADP

jobs report noted a 277K increase in US private sector jobs in October as against forecast of 187K increase. The Times

of London reported that UK financial services companies will get continued access to European Union markets after

Brexit. The US dollar index has also come off the highs as Pound strengthened on reports of Brexit progress.

However, weighing on rupee are tensions between RBI and government, slowdown in Chinese economy which dents

outlook for emerging markets and challenges to global economy. Indian government issued a statement yesterday

supporting autonomy of RBI however market nervousness persists. Rupee has opened on a firmer note but the gains

may not sustain as general optimism about US will support US dollar. USDINR may trade in a range of 73.6-74.05 and

bias may be on the upside.

India, Japan to expand special strategic

and global partnership

Domain.com

https://www.domain-

b.com/defence/general/20181030_global_partnership.html

India and Japan have committed themselves to working together to promote peace, stability and prosperity, through

economic growth and development in the Indo-Pacific, including Africa, by enhancing connectivity through quality

infrastructure and capacity building of our partners.

Both countries emphasised that all development cooperation must be carried out in an open, transparent and non-

exclusive manner and based on international standards, including respect for sovereignty and territorial integrity of

nations, responsible debt financing practices, and in alignment with local economic and development strategies and

priorities.

By synergising India’s "Act East Policy” and Prime Minister Modi’s 10 guiding principles for India’s sustained and

regular engagement with African countries, with Japan’s "Expanded Partnership for Quality Infrastructure Initiative”

and TICAD VI Nairobi declaration, the two countries welcomed and committed to further consultations with host

governments to foster tangible cooperation focusing on development of connectivity and other infrastructure in the

Indo-Pacific. India and Japan welcomed progress in identification of specific cooperation, including but not limited to

the following:

Cooperation in Sri Lanka, such as the development of LNG-related infrastructure;

Cooperation in Myanmar, synergizing development efforts in the Rakhine State by collaborating in housing,

education and electrification projects;

Cooperation in Bangladesh, for enhancing connectivity by way of four-laning of road and reconstruction of bridges on

the Ramgarh to Baraiyarhat stretch, and providing rolling stock and constructing the Jamuna Railway Bridge over the

Januma River; and

Cooperation in Africa, such as organising an SME development seminar in Kenya and seeking a possibility of a

collaborative project in the area of health service such as developing a cancer hospital in Kenya.

The two countries also acknowledged the importance of expanding cooperation in human resource development,

capacity building, healthcare, livelihood, water, sanitation and in the digital space, and of working together to extend

access to education, health and other amenities, and assist the people of the Indo-Pacific, including Africa, to realize

their developmental potentials.

Further, the two countries will work towards establishing an India-Japan Business Platform to enhance the exchanges

between Indian and Japanese businesses toward developing industrial corridors and industrial network in the region.

In this context, the two countries welcomed the memorandum of understanding between NEXI and ECGC, which is

expected to promote development of concrete India-Japan business projects in the region.

Both India and Japan said their development cooperation in the Indo-Pacific can contribute to unlocking the potential

for an equitable, positive and forward-looking change in the region, and contribute to socio-economic development

of Africa.

India-Japan `Act East Forum’

India’s North East Region is one of the main areas of India’s Act East Policy. The region also shares historical and

traditional bonds with ASEAN countries, and has the potential to be India’s springboard to the ASEAN region.

Enhancing connectivity within North East Region and with its neighbouring countries is essential to tap its potential

and presents crystallized examples of the shared vision between Japan and India as expressed in the Vision

Statement.

The Act East Forum established last year has served as a driving force to advance India-Japan cooperation in the

North-East. Its second meeting, held on 8 October decided to expediting implementation of Meghalaya North East

Connectivity by fast-tracking the following projects

Phase 1: Tura-Dalu (NH-51)

Phase 2: Shillong-Dawki (NH-40)

Mizoram North East Connectivity

Phase 1 & 2: Aizawl-Tuipang (NH-54)

Sikkim: Biodiversity Conservation & Forest Management

Nagaland: Forest Conservation Livelihood Improvement

Japan and India reaffirmed their intentions to proceed with the completion of Gelephu-Dalu Corridor in collaboration

with the ADB, including Dhubri/Phulbari bridge project, which will be the longest river bridge in India if realised, as

Phase 3 of North East Road Network Connectivity Improvement Project.

The will also consider developing main district roads and other district roads, which will have positive socio-economic

effect.

For skill development, the two countries will launch "Japan-India North East Bamboo Initiative” in view of the

significance bamboo plays in the region. Industrial uses of bamboos and bamboo forest management will be pursued

under this initiative, building on the successful first "North East Bamboo Workshop.

To promote Japanese language education in the North East as a part of the commitment made by the two prime

ministers to establish Japanese language certificate courses at 100 higher educational institutions in India. The forum

welcomed the interest for such courses expressed by cotton university and Gauhati University in Assam, EFLU in

Meghalaya state as well as NIT-N in Nagaland, to which Japan is prepared to provide appropriate support through

Japanese Language Teachers Training Centre. More proposals from North East states are welcome.

To promote skill training, including Japanese language for caregivers from North East who visit Japan for training

under TITP (Technical Intern Training Programme) ,which contributes to enhancing cooperation between the two

countries under the Asia Health and Wellbeing Initiative.

Smriti Irani unveils Fabric of Unity on

occassion of 143rd birth anniversary of

Sardar Patel

News on Air

http://www.newsonair.com/Main-News-Details.aspx?id=354716

Textiles Minister Smriti Zubin Irani today unveiled the Fabric of Unity on the occasion of the 143rd birth anniversary

of Sardar Vallabhbhai Patel in Gurugram in Haryana. She also flagged off the Unity March.

Later, she administered the Unity Pledge to the office bearers, staff of Apparel Export Promotion Council - AEPC and

students of Apparel Training and Design Centre - ATDC.

The Minister exhorted the AEPC to spread the concept of fabric of unity in its offices saying it will be a real tribute to

Sardar Vallabhbhai Patel.

She urged the AEPC to put together the entire history and the textile designs of the then princely states which were

united into the Indian Union by Sardar Patel.

Air monitoring system not in place, 40

units get notice

Tribune India

https://www.tribuneindia.com/news/haryana/air-monitoring-system-not-

in-place-40-units-get-notice/676892.html

The Haryana State Pollution Control Board (HSPCB) has served notice on 40 industrial units, asking their owners to

instal the Online Air Emission Monitoring System (OAEMS), as mandated by the Central Pollution Control Board

(CPCB).

As per an HSPCB report, the air quality of the city was poor for the past 15 days, as particulate matter (PM-10) was

recorded between 250 and 350 microgrms per cubic meters.

Sources say the CPCB has made it mandatory for industries registered under the red category (highly polluted units)

to instal the OAEMS so that the air quality can be monitored online by the HSPCB and CPCB regularly.

According to the national ambient air quality standards, ideally, the atmosphere must not contain more than 100

micrograms of particulate matter (PM) per cubic metres, but it was recorded at 250 micrograms in the city, said

Bhupender Singh Chahal, Regional Officer, HSPCB.

Major sources of air pollution are industries, vehicular emission, garbage burning, construction activity and stubble

burning.

In Panipat district, 398 textile industries under the red category and 93 brick-kilns are registered with the HSPCB.

About 20 brick-kilns have been lying closed for long reportedly for not meeting the norms.

“As of now, notices have been issued to units with a turnover of more than Rs5 crore,” Chahal said.

Gzb admin stops construction

activities, shuts polluting units

Daily Pioneer

https://www.dailypioneer.com/2018/state-editions/gzb-admin-stops-

construction-activities--shuts-polluting-units.html

In the backdrop of deteriorating Air Quality Index (AQI) and past orders of National Green Tribunal (NGT) the

Ghaziabad district administration has issued order to stop all the construction activities and polluting industrial units

in the district with immediate effect.

The district information officer revealed that the highly polluting industry ~Continental Carbon Limited~ has been

ordered to shut its production activities till further order.

The local residents were staging dharna outside the factory for the past one week. They alleged that the ash particles

are being spread during the production process of the unit when it burns crude oil to make carbon for the tyre

factories.

In its order the administration stated to shut all its construction activities in three main sites being carried by the

National Highway Authority of India (NHAI) on the expansion work on National Highway-24, flyovers at Vasundhara

and Raj Nagar extension being carried out by the state agencies.

The other polluting industrial units included Vardhman Thermopack GT Road, NG Textile prints Kavi Nagar Industrial

Area, Para Products site 4, Sahibabad, Rohini Chemicals site 4, Sahibabad, Ultima Decorative panels site 4, Sahibabad,

KR Foods Bulandshahr Industrial Area and VP Traders Meerut road industrial area Ghaziabad.

The orders has been enforced with immediate effect till November 30, a senior district administration official said.

Global garment workers exploited as

big brands pressure suppliers: report

Reuters

https://www.reuters.com/article/us-global-slavery-report/global-garment-

workers-exploited-as-big-brands-pressure-suppliers-report-idUSKCN1N51N1

India (Thomson Reuters Foundation) - Pressure by big brands on suppliers to deliver more quickly and cheaply

contributes to labor abuses in factories that manufacture garments, footwear and textiles, according to a report

published on Wednesday.

More than half the suppliers surveyed were affected by cost negotiation strategies that cut into their profits,

according to the report by Better Buying, a Delaware-based group that rates purchasing practices of brands and

retailers.

Suppliers, in turn, put pressure on workers, leading to abuses, according to the research, which was funded primarily

by the C&A Foundation, a funding partner of the Thomson Reuters Foundation for human trafficking and slavery

coverage.

The impacts on workers include excessive overtime, underpayment of benefits, insufficient wages, and use of

unauthorized sub-contractors, said Doug Cahn, a Better Buying co-founder.

“Understanding and reducing the negative impacts of purchasing practices is the missing link in the movement to

ensure decent conditions of work in supply chains,” Cahn said in an email.

The index included ratings from 319 suppliers across 38 countries and measured the performance of 67 retailers and

brands, including Esprit, Nike and Gap.

Supplier ratings indicated that one third of buyers did not pay bulk order invoices on time, according to the report.

More than 20 percent of the orders received from retailers or brands were not priced to cover the cost of social,

environmental, quality, and other compliance requirements.

“These practices create challenges for suppliers to pay their workers adequately and on time,” said Jill Tucker, Head

of Supply Chain Innovation & Transformation at the C&A Foundation.

“We hope that with type of insight, buyers will change their practices in a way that make it possible for benefits to

trickle down to workers.”

Pressure to deliver quickly has prompted the Tirupur Exporters Association to request workers in India’s textile hub in

Tamil Nadu state to take only one or two days off during the upcoming Diwali festival, rather than the entire week.

“The peak manufacturing season clashes with two big festivals - Diwali and Pongal,” said Raja M Shanmugham, the

association’s president.

Diwali, a Hindu celebration of lights, falls on Nov. 6 and 7, but workers traditionally take the whole week off, while

the harvest festival of Pongal is in January.

Buyers will cancel orders if deliveries are delayed, putting financial strain on suppliers, Shanmugham told the

Thomson Reuters Foundation by phone.

Margins of textile mills buoyed by

cotton price fall, but hurdles lie ahead

Business Standard

https://www.business-standard.com/article/companies/margins-of-textile-mills-

buoyed-by-cotton-price-fall-but-hurdles-lie-ahead-118103001112_1.html

Cotton prices in major producing centres such as Punjab and Madhya Pradesh have declined to nearly 10% below the

government's MSP

The profit margins of textile mills improved during the second quarter (July-September) of the current financial year.

Input costs were low, driven largely by a fall in cotton prices.

Leading players Welspun India, Trident and Vardhman Acrylic reported emphatic growth in turnover and net profit,

as did Raymond and Surat Textiles.

Welspun India, for example, posted a 21.4 per cent growth in net profit to around Rs 1.217 billion over the same

period last year. Sales grew 11 per cent to Rs 17.8 billion.

"Raymond's overall performance was above our expectations, driven by broad-based growth across divisions. Sales

increased 16 per cent, Ebitda (operating earnings) by 36 per cent and net profit by 63 per cent, above our

expectations. Management commentary was cautious on Q3 growth trends but it expects growth to improve from

Q4, due to the wedding season. While Raymond has maintained its 100 basis points (bps) margin expansion guidance

(estimate) for the year, we believe that upsides are likely, given the 190 bps margin expansion in the first half. Better

capacity utilisation in garmenting, higher gains from currency depreciation and continued focus on efficiencies should

drive margin expansion in the second half," says Ashit Desai, an analyst with Emkay Global.

These dynamics might change in the coming quarters with demand for cotton coming from Pakistan, China and other

importing countries at a time when the domestic natural fibre output is estimated to decline. As against the earlier

forecast of 36 million bales (a bale is 170 kg) of output, traders and industry experts now estimate cotton output at

33-33.5 million bales this year.

"Raw material prices remained subdued during the quarter, though cotton demand from domestic textile

manufacturers was robust, as mills needed to prepare stocks for the festival and seasonal demand in October-

November," said Ajay Kedia, managing director, Kedia Stocks and Commodity Research.

Cotton prices in major producing centres such as Punjab and Madhya Pradesh have declined to nearly 10 per cent

below the government's minimum support price of Rs 5,450 a quintal (of long staple). In August, these had fallen to

Rs 4,300 a quintal. At present, it is Rs 4,600 a quintal at spot markets in Gujarat.

China has since turned to India for import of cotton due to a higher import duty levied on its traditional supplier,

America. Pakistan is also likely to procure from India this year.

"Cotton farmers in Maharashtra and Gujarat are facing a double whammy. While a drought has reduced the output

potential, pink bollworm attack has further lowered production possibilities. This has come when demand from China

and Pakistan has suddenly emerged. Overall, Pakistan is looking a better and sustainable market for India than

China," said a city-based cotton exporter.

Meanwhile, a recent report from India Ratings forecasts robust demand for textiles from end-users in India,

supported by a strong rise in private consumption expenditure during the rest of this financial year. Also, apparel

export is likely to rise, with the rupee's fall against the dollar at a higher rate over April-August than the currencies of

other key exporting nations.

The rising dollar has also lowered the potential for cotton import into India, as imported cotton would now become

costlier than domestically available fibre.

Commerce Ministry to take up

exporters’ complaints on GST refund

with FinMin

Business Line

https://www.thehindubusinessline.com/economy/commerce-ministry-to-take-

up-exporters-complaints-on-gst-refund-with-finmin/article25372080.ece

Exporters say they must be allowed to switch from duty drawback to IGST refund

The Commerce Ministry has taken note of exporters’ complaints that the input duty refund under the duty drawback

scheme claimed by some last year was much lower than the IGST (Integrated Goods & Services Tax) refunds due to

them and it may ask the Finance Ministry to address the issue.

“Exporters have said that they are willing to pay back the drawback with interest and they should be instead given

IGST refund which is a much higher amount. The DGFT is likely to take up the matter with the Customs Department,”

a government official told BusinessLine.

Last year, when the GST regime was implemented, exporters were given the option of continuing with the popular

duty drawback scheme (at a higher rate for some items) for three months (July-September) if they agreed to forego

refund of IGST paid by them.

After a number of exporters opted for the duty drawback option, they discovered that the IGST paid by them on

inputs was much higher and opting for refunds under IGST would have been a better deal.

‘Initial confusion’

“In the initial period everyone was confused about GST impact. A number of exporters were not aware of the

implications and chose to be compensated for input taxes under the duty drawback scheme. Now when they

understand that GST refund would give them a much higher amount for many items, the government should oblige,”

said Ajay Sahai from the Federation of Indian Export Organisations (FIEO). Giving an example, Sahai said that for

vegetables the drawback rate is 1 per cent. So, if an exporter is shipping say cauliflowers to West Asia at ₹40 per kg,

he will get 40 paise as drawback. However, air freight is ₹100 per kg for cauliflowers and if the exporter is paying 5

per cent GST of ₹5 on that, then by opting for 40 paise of duty drawback, he is losing out on the ₹5 as GST refund.

“What is the problem in not giving him the ₹5 as GST refund if he is willing to refund the duty drawback he got

together with interest. The exporter is asking for what is rightly his,” Sahai said.

While the Finance Ministry has once refused to allow exporters to switch their stated preference, Commerce Ministry

officials say that they will take up the issue again. “Exporters need to be compensated fully for the input taxes paid as

it is vital to help them stay competitive in the global market,” they said.

Turkish Cargo sees ‘high potential’ in

Bangalore

Cargo News

https://www.aircargonews.net/news/airline/freighter-operator/single-

view/news/turkish-cargo-sees-high-potential-in-bangalore.html

Turkish Cargo has launched Airbus 330-200 freighter flights to Kempegowda International Airport in Bangalore, the

capital of India’s Karnataka state.

The freight-carrying division of Turkish Airlines pointed out that the Indian city has “a high annual export potential of

170,000 tons” that could benefit from the airline’s connections to destinations across the Middle East.

Bangalore’s aerospace, IT and high-tech industries are among the drivers of its exports, which also include

pharmaceuticals, fruits and vegetables electronic goods and textile products.

The Indian airport confirmed that Turkish Cargo would serve Bangalore twice a week.

Cotton drying unit at Malout grain

market non-functional

Tribune India

https://www.tribuneindia.com/news/punjab/cotton-drying-unit-at-

malout-grain-market-non-functional/676979.html

Set up in 2014 to increase the profit of cultivators, the state government’s cotton pre-cleaning and drying unit at the

grain market in Malout town is still non-functional.

This was the country’s first such plant set up to help farmers in sowing and picking cotton with machines, which is

negligible now.

Officials said the Rs 2-crore plant was installed to decrease the input costs by overcoming problem of expensive

labour

A farm implement-making company had carried out high-density cotton cultivation in the Malout and Abohar sub-

divisions in 2014. This plant was set up to help farmers, but it is lying non-functional for the past three years,” said

Gurpreet Singh, secretary of the Market Committee, Malout.

The entire process was to be done at a minimal cost as the government had launched this project on no-profit-no-

loss basis. It has the capacity of cleaning 6 tonnes cotton per hour.

The machinery will weed out leaves from the cotton crop. It will also lessen the moisture content as per requirement

and improve the quality of cotton fibre for marketing purpose.

Sources said the plant was once used to clean and dry normal variety of cotton, but after processing, cotton did not

come out. “The machine can work after repairs. We have deployed a watchman for it,” said the secretary of the

Market Committee.