Ports are the real gateway of growth: MoS Radhakrishnan

Source: http://www.portwings.in/articlesinterviews/ports-are-the-real-gateway-of-growth-mos-radhakrishnan/

Port Wings News Network:

Shipping Ministry is taking all efforts to make the Union Government-run major ports the real gateway of growth for our country, Minister of State for Road Transport & Highways, Shipping Mr Pon Radhakrishnan has said.

In an exclusive interview to Port Wings, Mr Radhakrishnan said, “Not only we are focusing on modernizing and equipping the major ports to meet the growing demands from Exim fraternity thus becoming real gateways, but also helping the non-major ports (minor ports in the administrative control of State governments) to become engines of growth for the nation.”

UNIFORM DRAFT ACROSS THE COUNTRY:

Mr Radhakrishnan stated: “For ports to remain efficient and commercially successful, they need good draft to accommodate bigger ships. Shipping Ministry is embarked on a mission to make all major ports in the country to possess a minimum draft of 18 mtrs. It will give the ports an additional advantage to accommodate larger ships now available in container and breakbulk segment s.”

CAPACITY ADDITION IN PORTS:

Besides focusing on importance of draft requirements, the Minister emphasized on capacity addition in all major ports.

Mr Radhakrishnan said, “Draft alone cannot bring ships to wharves. What we need is the efficiency to handle more cargoes at the ports. Most of the Chinese ports, despite stiff competition among themselves in garnering cargoes, are thriving only because of their efficiency in handling cargoes. Keeping in the mind, Shipping Ministry has launched several programmes to improve the efficiency of our major ports. Once these projects are in place, it would not only improve them to increase their revenue stream, also fuel the country’s economic growth.”

SIMPLIFICATION OF RULES:

While draft requirement and capacity addition in ports has been taken care of, the other important issue is the redundant as well as procedural hurdles in getting in more vessels into the ports, feels Mr Radhakrishnan.

He said, “When the Shipping Ministry began analyzing the existing rules in the sector to improve Ease of Doing Business, we found so many archaic rules that were hampering growth. Since then, our Ministry has worked out on how to weed them out. Based on that, we introduced new rules to sync with contemporary times and requirements of the trade.”

“Recently, our Ministry eased cabotage law for allowing some categories of foreign-registered ships to operate on local routes in a bid to help shift cargo movement away from road and rail to the coastal route,” he added.

IMPORTANCE OF SHIPYARDS:

Speaking about the importance of shipyards, Mr Radhakrishnan said, “Time and again we receive feedback from the trade that India lacks in shipyards and it cost them dearly. In line with the trade’s expectation, our Ministry simplified the procedure for registration of Ship Repair Units. The move would help setting up of ship-repair units. What I suggest is every major port should allocate some space in their areas to set up such shipyards.”

“It will not only maximize employment potential, but also help the shipping lines to plan accordingly,” he added.

NEED FOR INTEGRATED ADMINISTRATION:

On the need for integrated administration, Mr Radhakrishnan said, “Besides all those issues we have discussed earlier, having an integrated administration, where all the stakeholders linked to exim trade, be it Customs or Plant Quarantine or FSSAI or Drug Controller, has become paramount to achieve the targets of Ease of Doing Business initiative. Though the Central Board of Excise and Customs has a setup of Customs Clearance Facilitation Committee (CCFC), we want it from the port side as they are the real gateway for the trade.”

TARIFF REGULATIONS CONUNDRUM:

On a question about the missing level-playing field between major and non-major ports, Mr Radhakrishnan said, “It is true that there is no level playing field among major and non-major ports. While tariff in the major ports (except Kamarajar Port) are governed by TAMP regulations, non-major ports have the flexibility and liberty to fix their tariffs based on prevailing market conditions. Most of the time, the very tariff proves detrimental to the growth of major ports and in turn it becomes advantage for non-major ports. While we want all the ports in the country, including non-major ports, to grow and aid country’s growth, Shipping Ministry is seized of the tariff barrier matter. Very soon, that anomaly would be cleared.”     

DEVELOPMENT OF COLACHEL PORT:

On a question about the development of Colachel Port, Mr Radhakrishnan said, “The Colachel Port, located at Kanyakumari District in Tamil Nadu, is close to the international shipping route and has enough draft for establishing an international standard port with all modern facilities.”

“A fully developed Colachel Port would not only pave way for quick economic growth in Southern Tamil Nadu as well as parts of Kerala through industrial clusters, but also help to generate more jobs in the region,” he added.

GIM presents Big Opportunity to Tamil Nadu

Source:http://www.portwings.in/articlesinterviews/gim-presents-big-opportunity-to-tamil-nadu/

Port Wings News Network:

As part of the agenda setting, Port Wings has brought out series of articles on the major issues pertaining to the EXIM sector every week before the Tamil Nadu Government’s Global Investors Meet (GIM) to be held on Sept 9 & 10 at Chennai Trade Centre.

For the last 13 weeks, we gave a sneak preview of various segments that could attract investments during the meet.

ELEVATED CHENNAI PORT –MADURAVOYAL EXPRESSWAY PROJECT:

With a view to alleviate the perennial congestion of heavy vehicles on Chennai’s arterial roads,  Chennai Port and the Tamil Nadu state government have planned for a better road connectivity to ensure seamless movement of cargo towards Chennai Port round-the-clock without disturbing common road users.

Since the project is now caught in the legal web and its effect is being largely felt on the EXIM trade, the Shipping Ministry even suggested for an “Out of Court” settlement with the Tamil Nadu Government.

According to experts, if the project gets a green signal from the Tamil Nadu government, it would help those EXIM players, who left the Chennai Port in the past due to lack of road connectivity, to rethink on coming back to Chennai Port again.

NEED FOR COORDINATION COMMITTEE:

Tamil Nadu State, unlike the other maritime states in the country, is bestowed with three major ports – Kamarajar (Ennore), Chennai and V O Chidambaranar (Tuticorin), which are maintained by the Government of India through the Ministry of Shipping. Besides, the state is also home to the fast growing Kattupalli Port.

While these major ports are governed by the Union Government, the impact of such lack of coordination directly impacts the economy of Tamil Nadu. The lack of coordination affects movement of goods through Chennai Port and in turn, it projects the eastern gateway port as inefficient port to meet the growing demand from the trade in the region.

REJUVENATING TAMIL NADU MARITIME BOARD:

With the Tamil Nadu Maritime Board’s (TMB) policies for developing more ports in the state to become a true “Maritime gateway state of East Coast” shrouded in mystery, experts in Exim sector here feel that the Chief Minister J Jayalalithaa should revamp the entire board to meet the expectation of the trade and investing community.

A few of them have even said that the Tamil Nadu Government could get more on the potential of maritime board from the Gujarat Maritime Board (GMB), which has earned laurels from various quarters for playing pivotal role in bringing in sustained revenue for the state as well to the country’s exchequer.

ROLE OF STATE GOVERNMENT IN PROMOTING TUTICORIN:

Even though the Tamil Nadu Government has a policy and focus in place to develop Tuticorin as a major industrial and commercial centre in Tamil Nadu for some time, to promote the regions before the potential investors, the state government has to walk an extra mile.

Besides, setting up a dedicated authority to oversee the planned and integrated development of the industrial and commercial areas in the districts would send a right signal before the investors converging during the Global Investor Meet.

Dr J Jayalalithaa, Chief Minister, Tamil Nadu.

SMART CITIES SANS ROAD CONNECTIVITY CAN’T AID GROWTH

The new government at the Centre led by the Prime Minister Narendra Modi has unveiled its ambitious project of developing about 100 Smart Cities in the country.

While the chain of development is directly linked with the road connectivity, it is for the state government of Tamil Nadu to take proactive steps to fix the connectivity issue. And those proactive steps would definitely ensure investments in the region during the forthcoming Global Investor Meet.

TAP THE OPPORTUNITIES IN GRANITE SECTOR:

TAMIN, though exports polished granite slabs, building slabs and tiles in several attractive colours, wall panels and monuments of various designs conforming to International Standards, was unable to break grounds due to stiff competition in the international market.

TAMIN, though entered the international granite market in the year 1979, their stride to export finished as well as value-added products in Granites is stuck in re-tapism and inconsistent policies on the exports by the state as well as union government.

If the Tamil Nadu government forms a JV with leading Granite companies from China during the GIM for setting up advanced plants for cutting, polishing and for monuments making, it will not only help the state to attain a status of hub for granite products, it will also generate huge number of employment opportunities for the youth in the state, says an expert.

Hence, experts feel that the Tamil Nadu government should understand the potential of granite segment in generating revenue as well as employment and finalize JV with Chinese or any other willing companies during GIM.

TN’S COMPETITIVE ADVANTAGE IN AGRO PROCESSING SECTOR:

Tamil Nadu has diverse soil and climatic conditions across seven agro climatic zones which provides ample opportunity to grow a variety of horticulture crops.

Furthermore, marine based industries at Thoothukudi and Kanyakumari could also become a game-changer for the state gifted with three major ports and numerous non-major ports for export of processed products to global markets.

If the constraints in the backward and forward linkages in the food processing sector are dealt accordingly, Tamil Nadu can play an important as well as catalytic role for the country and could become the food processing capital of India.

OPPORTUNITY IN DAIRY SEGMENT:

According to experts, the dairy segment in Tamil Nadu throws huge opportunity for investment both in technology upgradation as well as in processing and value-addition. If the investments started pouring in, it could help the coastal state, which has been blessed with three major ports and a few aircargo-handling airports, to attain a new status in export of value-added milk-related products.

With the availability of milk from rural areas, Global Investors Meet could help the Tamil Nadu government to brand it as leading player in dairy segment from the region and attract investments for the dairy sector, added experts.

POWER PROJECTS WAITING FOR INVESTMENTS:

Tamil Nadu Government has listed several power projects to secure uninterrupted power supply to the industries to be set up in the coming years. According to experts, if the investments pour in for the power sector during the GIM, it would eventually send a right message to the potential investors planning to set up other factories in the state, which has been blessed with good sea and air connectivity.

OPPORTUNITY FOR INVESTMENT LEATHER SEGMENT:

Tamil Nadu has been regarded as the citadel for leather segment in the country. The major production centres for leather and leather products in the state are located at Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul in Tamil Nadu.

By ensuring investments for the development of Mega Leather Clusters in the state, Tamil Nadu Government would help the sector in creating additional employment opportunity, particularly for the weaker sections of society.

EXPECTATIONS FROM THE GIM IN FISHERY SECTOR:

Tamil Nadu contributes the significant part in the total seafood export earnings of India. But the sustainability of the seafood supply is the major hindrance for the export. Aquaculture would be promoted in Tamil Nadu for the development of export and sustain in the seafood market for the longtime in future.

COASTAL TOURISM SECTOR PRESENTS IMMENSE INVESTMENT OPPORTUNITY

Cruise Shipping is one of the most dynamic and fastest growing components of the leisure industry worldwide.

For Tamil Nadu, which has three major ports and numerous non-major ports staring from Kattupalli in the North and Kanyakumari in the Southern tip and with a rating of one of the vibrant economies in the country, the coastal cruise tourism gives a new opportunity to increase its revenue stream.

Coastal tourism would give an opportunity for the Indians, especially the middle-class one who can’t afford luxurious tours in the Caribbean or in Europe to see the beauty of sea and her tides, to explore India from coastlines

OPPORTUNITIES IN HERBAL SEGMENT:

Experts feel that the Tamil Nadu government should attract more investment in the segment, as it would generate better value for herbal products (which are being discarded for want of apt mechanism to convert them as a salable product in international market) as well as job opportunities.

What I will be remembered for.. my memory of the last day with the great Kalam sir...

Reproduction...

It has been eight hours since we last talked – sleep eludes me and memories keep flushing down, sometimes as tears. Our day, 27th July, began at 12 noon, when we took our seats in the flight to Guhawati. Dr. Kalam was 1A and I was IC. He was wearing a dark colored “Kalam suit”, and I started off complimenting, “Nice color!” Little did I know this was going to be the last color I will see on him.

Long, 2.5 hours of flying in the monsoon weather. I hate turbulence, and he had mastered over them. Whenever he would see me go cold in shaking plane, he would just pull down the window pane and saw, “Now you don’t see any fear!”.
That was followed by another 2.5 hours of car drive to IIM Shillong. For these two legged trip of five hours we talked, discussed and debated. These were amongsthundreds of the long flights and longer drives we have been together over the last six years. 
As each of them, this was as special too. Three incidents/discussions in particular will be “lasting memories of our last trip”. 
First, Dr. Kalam was absolutely worried about the attacks in Punjab. The loss of innocent lives left him filledwith sorrow. The topic of lecture at IIM Shillong was Creating a Livable Planet Earth. He related the incident to the topic and said, “it seems the man made forces are as big a threat to the livability of earth as pollution”. We discussed on how, if this trend of violence, pollution and reckless human action continues we will forced to leave earth. “Thirty years, at this rate, maybe”, he said. “You guys must do something about it… it is going to be your future world”
Our second discussion was more national. For the past two days, Dr. Kalam was worried that time and again Parliament, the supreme institution of democracy, was dysfunctional. He said, “I have seen two different governments in my tenure. I have seen more after that. This disruption just keeps happening. It is not right. I really need to find out a way to ensure that the parliament works on developmental politics.” He then asked me to prepare a surprise assignment question for the students at IIM Shillong, which he would give them only at the end of the lecture. He wanted to them to suggest three innovative ways to make the Parliament more productive and vibrant. Then, after a while he returned on it. “But how can ask them to give solutions if I don’t have any myself”. For the next one hour, we thwarted options after options, who come up with his recommendation over the issue. We wanted to include this discussion in our upcoming book, Advantage India. 
Third, was an experience from the beauty of his humility. We were in a convoy of 6-7 cars. Dr. Kalam and I were in the second car. Ahead us was an open gypsy with three soldiers in it. Two of them were sitting on either side and one lean guy was standing atop, holding his gun. One hour into the road journey, Dr. Kalam said, “Why is he standing? He will get tired. This is like punishment. Can you ask a wireless message to given that he may sit?” I had to convince him, he has been probably instructed to keep standing for better security. He did not relent. We tried radio messaging, that did not work. For the next 1.5 hours of the journey, he reminded me thrice to see if I can hand signal him to sit down. Finally, realizing there is little we can do – he told me, “I want to meet him and thank him”. Later, when we landed in IIM Shillong, I went inquiring through security people and got hold of the standing guy. I took him inside and Dr. Kalam greeted him. He shook his hand, said thank you buddy. “Are you tired? Would you like something to eat? I am sorry you had to stand so long because of me”. The young lean guard, draped in black cloth, was surprised at the treatment. He lost words, just said, “Sir, aapkeliye to 6 ghantebhikhaderahenge”. 
After this, we went to the lecture hall. He did not want to be late for the lecture. “Students should never be made to wait”, he always said. I quickly set up his mike, briefed on final lecture and took position on the computers. As I pinned his mike, he smiled and said, “Funny guy! Are you doing well?” ‘Funny guy’, when said by Kalam could mean a variety of things, depending on the tone and your own assessment. It could mean, you have done well, you have messed up something, you should listen to him or just that you have been plain naïve or he was just being jovial. Over six years I had learnt to interpret Funny Guy like the back of my palm. This time it was the last case. 

“Funny guy! Are you doing well?” he said. I smiled back, “Yes”. Those were the last words he said. Two minutes into the speech, sitting behind him, I heard a long pause after completing one sentence. I looked at him, he fell down. 

We picked him up. As the doctor rushed, we tried whatever we could. I will never forget the look in his three-quarter closed eyes and I held his head with one hand and tried reviving with whatever I could. His hands clenched, curled onto my finger. There was stillness on his face and those wise eyes were motionlessly radiating wisdom. He never said a word. He did not show pain, only purpose was visible. 
In five minutes we were in the nearest hospital. In another few minutes the they indicated the missile man had flown away, forever. I touched his feet, one last time. Adieu old friend! Grand mentor! See you in my thoughts and meet in the next birth. 
As turned back, a closet of thoughts opened. 
Often he would ask me, “You are young, decide what will like to be remembered for?” I kept thinking of new impressive answers, till one day I gave up and resorted to tit-for-tat. I asked him back, “First you tell me, what will you like to be remembered for? President, Scientist, Writer, Missile man, India 2020, Target 3 billion…. What?” I thought I had made the question easier by giving options, but he sprang on me a surprise. “Teacher”, he said. 
Then something he said two weeks back when we were discussing about his missile time friends. He said, “Children need to take care of their parents. It is sad that sometimes this is not happening”. He paused and said, “Two things. Elders must also do. Never leave wealth at your deathbed – that leaves a fighting family. Second, one is blessed is one can die working, standing tall without any long drawn ailing. Goodbyes should be short, really short”. 
Today, I look back – he took the final journey, teaching, what he always wanted to be remembered doing. And, till his final moment he was standing, working and lecturing. He left us, as a great teacher, standing tall. He leaves the world with nothing accumulated in his account but loads of wishes and love of people. He was a successful, even in his end. 
Will miss all the lunches and dinners we had together, will miss all the times you surprised me with your humility and startled me with your curiosity, will miss the lessons of life you taught in action and words, will miss our struggles to race to make into flights, our trips, our long debates. You gave me dreams, you showed me dreams need to be impossible, for anything else is a compromise to my own ability. The man is gone, the mission lives on. Long live Kalam.

Your indebted student,

Srijan Pal Singh
(pic .. Dr APJ Abdul Kalam meeting the jawan who stood in the gypsy)

Adani Group to Take Over L&T's Kattupalli Terminal by September?

Source: http://www.portwings.in/ports/adani-group-to-take-over-lts-kattupalli-terminal/

Port Wings News Network:

Adani Group, headed by Mr Gautam Adani and one of India’s leading business houses with revenue of over $10 billion, is all set to take over the Kattupalli International Container Terminal (KICT), promoted by engineering major Larsen & Toubro at Kattupalli Port in Tamil Nadu, it is reliably learnt.

In what could be an early indication of possible takeover of the terminal, said to be from the first week of September this year, officials of Adani Group and KICT have jointly organized a trade meet with the prominent seafood exporters in the region in Chennai on July 24 and sought the trade’s support.

Speaking to Port Wings, one of the exporters (who attended the trade meet), seeking anonymity said that they (Adani Group) were very eager to ascertain the potential of seafood trade from the region and also gave assurance to the trade that they can walk an extra mile to ensure hassle-free exports from Kattupalli.

The news of possible takeover could not be verified from either side, as they were reluctant to share any information pertaining to the development citing different reasons.

STAKEHOLDERS OF KATTUPALLI PORT:

Kattupalli Port is promoted by L&T Ports, a division of L&T Shipbuilding Limited, a joint venture company formed by Larsen & Toubro Limited and Government of Tamil Nadu’s trade arm Tamil Nadu Industrial Development Corporation Limited (TIDCO). While the L&T holds 97 % in the shipyard cum port complex project, Tamil Nadu Government (through TIDCO) holds 3 % share.

RUMOURS GAINING GROUND:

Though rumours of Adani Group taking over the Kattupalli Container Terminal were flying for the past few weeks, no one from both the listed companies gave any concrete information about it in the public domain.

However, developments like a joint trade meet by Adani Group and L&T few days ago has clearly hinted that there are some concrete developments happening behind the scene on the possible taking over of the terminal.

ADVANTAGE FOR ADANI:

For Adani Group, which wants to strengthen its presence in the East Coast, the possible taking over of L&T’s container terminal, located within a few kilometers distance from its own project, a container terminal (now in construction phase) at Kamarajar Port (erstwhile Ennore Port), could help to secure calling of vessels (mainline, feeder and coastal) from the day one of its operation.

Besides, maritime analysts suggest that it could further help the Adani Group to project both the terminals as a largest hub for containers in East Coast.

Furthermore, sources monitoring the growing port landscape in the country clearly pointed out that the Adani Group plans to project both the terminals as “Mundra of East Coast.”

It may be noted that Adani Group recently got the Vizhinjam port project in Kerala and in 2014, Adanis acquired Dhamra Port in Odisha from Tata Steel and L&T for an estimated Rs 5,500 crore.

ADVANTAGE FOR L&T:

According to sources, the possible handing over of Kattupalli Container Terminal to Adani by September would also augur well for the L&T management, which intends to focus more on defence projects at its shipyard located in the Kattupalli port complex.

POSSIBLE HURDLES:

Even though the managements of Adani and L&T may have discussed about the critical points involved in the possible take over from the legal point of view, experts feel that the “transition” may not be that easy. The Tamil Nadu Government roped in the L&T to develop the port complex and initially there were no reference about operation of container terminal. 

Besides, it is not clear, whether the L&T management handover “absolute right” on container terminal to Adani Group. If the L&T management intends to give to total control, then it needs the concurrence of the Tamil Nadu Government, another stakeholder in the port project. 

Dairy segment in Tamil Nadu presents opportunity for investments

Port Wings is bringing out series of articles on the major issues pertaining to the EXIM sector every week till the Tamil Nadu Government’s Global Investors Meet (GIM). This week, we analyse about the dairy segment in attracting investments.

Source: http://www.portwings.in/articlesinterviews/dairy-segment-in-tamil-nadu-presents-opportunity-for-investments/

Chennai:

Port Wings News Network:

The transition of the Indian milk industry from a situation of net import to that of surplus has been led by the efforts of National Dairy Development Board's Operation Flood programme under the aegis of the former Chairman of the board Dr. Kurien.

Launched in 1970, Operation Flood has led to the modernization of India's dairy sector and created a strong network for procurement processing and distribution of milk by the co-operative sector. Per capita availability of milk has increased from 132 gm per day in 1950 to over 220 gm per day in 1998. The main thrust of Operation Flood was to organize dairy cooperatives in the milkshed areas of the village, and to link them to the four Metro cities, which are the main markets for milk. The efforts undertaken by NDDB have not only led to enhanced production, improvement in methods of processing and development of a strong marketing network, but have also led to the emergence of dairying as an important source of employment and income generation in the rural areas.

STATUS OF TAMIL NADU IN DAIRY SEGMENT:

Operation Flood has been one of the world's largest dairy development programme and looking at the success achieved in India by adopting the co-operative route, a few other countries have also replicated the model of India's White Revolution.

And the revolution has largely helped the state like Tamil Nadu to understand its true potential in the segment.

According to information available, nearly 70 lakh litres of milk being handled daily by cooperatives linked to Tamil Nadu Co-operative Milk Producers' Federation Limited and the organised players in the private sector. And it has helped the state to emerge as the second largest dairy player in the country after Gujarat.

AMUL- THE SUCCESS STORY:

Amul, an Rs 30,000-crore company, is completely managed and controlled by farmers from village collection to administrative set up. Due to systematic efforts, they gained a global brand and it helps Gujarat to market in dairy products in many countries.

On the other hand, though the Tamil Nadu state ranks second in dairy segment, its flawed policies curtailed the growth and made the Tamil Nadu Co-operative Milk Producers' Federation Limited (AAVIN) just a state player in dairy segment.

TECHNOLOGY IS THE KEY:

In an agricultural fair organised jointly by the Coimbatore District Small Industries Association (Codissia) and Tamil Nadu Agricultural University at the Codissia Trade Fair Complex recently, Mr K Rathnam, Managing Director, Amul Dairy, was very categorical in emphasizing that technology is the key for improving the dairy sector in Tamil Nadu.

According to Mr Rathnam, the potential is huge, but what we need is well-channelised system besides a stress on the need for improvements in infrastructure and imbibing technological advancements at the farm (primary level) itself.

In his opinion, commercial dairy farms have not been successful in India as 90 per cent of the dairy farms are with the poor and marginal farmers. To break the jinx, you will need to set up a processing plant at the farm itself and brand the product.

OPPORTUNITY BEFORE TAMIL NADU GOVERNMENT:

According to experts, the dairy segment in Tamil Nadu throws huge opportunity for investment both in technology upgradation as well as in processing and value-addition. If the investments started pouring in, it could help the coastal state, which has been blessed with three major ports and a few aircargo-handling airports, to attain a new status in export of value-added milk-related products.

With the availability of milk from rural areas, Global Investors Meet could help the Tamil Nadu government to brand it as leading player in dairy segment from the region and attract investments for the dairy sector, added experts. 

With special focus, Tamil Nadu can become food processing capital of India

Source: http://www.portwings.in/articlesinterviews/with-special-focus-tamil-nadu-can-become-food-processing-capital-of-india/

Chennai:

Port Wings News Network:

India is the world's second largest producer of food net to China, and has the potential of being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast.

Accounting for about 32 per cent of the country's total food market, the food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

The total food production in India is likely to double in the next 10 years with the country's domestic food market estimated to reach US$ 258 billion by 2015. The food processing industry forms an important segment of the Indian economy in terms of contribution to GDP, employment and investment, and is a major driver in the country's growth in the near future. This industry contributes as much as 9-10 per cent of GDP in agriculture and manufacturing sector.

The Confederation of Indian Industry (CII) has estimated that the foods processing sectors has the potential of attracting US$ 33 billion of investment in 10 years and generate employment of 9 million person-days.

Food processing is a large sector that covers activities such as agriculture, horticulture, plantation, animal husbandry and fisheries. It also includes other industries that use agriculture inputs for manufacturing of edible products. The Ministry of Food Processing, Government of India indicates the following segments within the Food Processing industry.

Tamil Nadu is a strong player in agro food processing industry:

Agricultural output has grown at CAGR of 5% as compared to the CAGR of 3% of the Indian agricultural sector from 2008-12. According to details available, while the state is numero uno producer of banana in the country, it is the second largest producer of poultry and dairy products as well as the third largest producer of tea and coffee in India.

Tamil Nadu’s Competitive Advantage:

Tamil Nadu has diverse soil and climatic conditions across seven agro climatic zones which provides ample opportunity to grow a variety of horticulture crops. Besides, 74.66 Acres of Land is available (as on 28.02.2015) for allotment in DTA (Domestic TariffArea) and opportunities are on for new industrial parks for Food Processing Industries at Dindigul, Theni, Virudhunagar Districts with common facilities like cold storage and warehouse.

Furthermore, marine based industries at Thoothukudi and Kanyakumari could also become a game-changer for the state gifted with three major ports and numerous non-major ports for export of processed products to global markets.

It may be noted that the Ministry of Food Processing Industries has so far sanctioned three cold-chain projects.

Opportunities for Investment in Tamil Nadu:

The segments like, Beverages Meat and poultry processing, Agriculture/horticulture, Food and Agri business parks and export oriented processing holds the key in attracting more investments in the state.

The food processing sector has undoubtedly the potential to be an industry driver that can transform India's rural economy, but there are a number of constraints both in the forward and backward linkages in the sector.

According to Mr Ravindra Sannareddy, Chairman, Southern Regional Council, ASSOCHAM, the agro-climatic condition in the State made it suitable for growing almost all kinds of agricultural and horticultural crops and setting up of food processing industries.

According to experts, if the constraints in the backward and forward linkages in the food processing sector are dealt accordingly, Tamil Nadu can play an important as well as catalytic role for the country and could become the food processing capital of India.

Task Before the Tamil Nadu Govt:

During the Global Investors Meet (GIM), if the Tamil Nadu government is able to attract more investments in the agro and food processing segment, it would augur well for the sustained growth of the industries in the state.

Tap the opportunities in Granite sector in Tamil Nadu

Port Wings is bringing out series of articles on major opportunities pertaining to the EXIM sector every week in connection with the Tamil Nadu Govt’s Global Investors Meet (GIM). This week, we analyze about the opportunities in Granites sector in attracting investments.

Source:http://www.portwings.in/articlesinterviews/tap-the-opportunities-in-granite-sector-in-tamil-nadu/

Port Wings News Network:

The main mineral wealth of the Tamil Nadu state is granite, limestone and lignite. The availability of different varieties of granite in different parts of the state’s quarries located in Krishnagiri, Madurai, Tirunelveli and Vellore areas, has resulted in a booming granite industry in the region. Over the years, the granite industry has grown from strength to strength and reports suggest that it contributing more than 35% of the country's exports.

GRANITE:

Granite is an igneous rock with at least 20% quartz in it. Granite is a kind of igneous rock and is formed from magma emitted during a volcanic eruption.

According to information available, the rock has been used to add aesthetic value in buildings as well as used for making monuments in countries like China and Japan. An estimate shows that during 2013-14, exports of granite blocks were about Rs.12,000 crore. For the raw granites originating from southern states like Tamil Nadu, Andhra Pradesh, Telangana and Karnataka, ports in the state like Chennai and Tuticorin (VOC Port) serves as the gateway.

TAMIN:

Tamil Nadu Minerals Limited, popularly known as TAMIN, is a wholly owned blue chip company of the Government of Tamil Nadu started in 1978.TAMIN is engaged in the exploitation, processing and marketing of Granite and other minerals such as Limestone, Vermiculite, Quartz, Feldspar, Indian Standard Sand and Graphite.

EXPORT OF GRANITE ROUGH BLOCKS:

Exports of granite rough blocks from the state’s various quarries to different countries, mainly to China, has been growing steadily over the past several years.

While China is the global leader in finished granite exports, India is the no.1 supplier of raw granite blocks to China. Estimates show that more than 53% rough granite blocks from India are being exported to China alone every year.

According to experts, exporting rough blocks is not fetching much foreign exchange revenue for the government. Besides, the same stone re-enters India with a value addition in Chinese factories, which in turn give more revenue to the country than the actual producer of those granite stones.

The experts also feel that the time has come for the Government of Tamil through its arm TAMIN to seriously think of setting up a state-of-the-art facility for granite cutting, polishing and for monuments in the state’s granite nerve centres like Hosur, Vellore, Madurai and Tirunelveli in a joint venture with globally leading companies.

By setting up such facilities, the Tamil Nadu state government could become a leading player in the country in supply of finished products from granites, added the experts. Furthermore, it will also help the ports in the Tamil Nadu to flourish their business further;

OPPORTUNITIES IN GRANITE SEGMENT:

TAMIN, though exports polished granite slabs, building slabs and tiles in several attractive colours, wall panels and monuments of various designs conforming to International Standards, was unable to break grounds due to stiff competition in the international market.

TAMIN entered the international granite market in the year 1979 and has secured a steady market for dimensional blocks of black and other colour materials in countries like China, Japan, Germany, Italy, Australia, UK, Switzerland, Holland, USA etc. However, their stride to export finished as well as value-added products in Granites is stuck in re-tapism and inconsistent policies on the exports by the state as well as union government.

Speaking to Port Wings, Mr G Natarajan, an expert in granites, said “The trade in the Tamil Nadu state was flourishing once when there were very few players. However, regular change in policies in exports, entry of middlemen, and other issues compounded the whole trade into a troublesome affair of late. Due to the shift, many small quarry owners vanished from the trade and it has led to export of mostly rough granite blocks to China.”

“If the Tamil Nadu government forms a JV with leading Granite companies from China during the GIM for setting up advanced plants for cutting, polishing and for monuments making, it will not only help the state to attain a status of hub for granite products, it will also generate huge number of employment opportunities for the youth in the state,” Mr Natarajan added.

Hence, experts feel that the Tamil Nadu government should understand the potential of granite segment in generating revenue as well as employment and finalize JV with Chinese or any other willing companies during GIM.