Cement imports not likely to ease prices
Business Standard

The Centre’s initiative to expedite certification of cement exporters in neighbouring countries is unlikely to ease the pressure on cement prices at home, according to analysts.

They say that the import of 2-3 million tonnes annually is insignificant and that logistics will be a bigger issue.

According to sources in the Bureau of Indian Standards (BIS), certifications for export of cement to India will be issued to at least six companies, three each in Pakistan and Bangladesh, within a fortnight. They did not divulge the names.

There have been many more applications to the BIS, which has reduced the procedural time from four to two months.

R C Gupta, president, Mangalam Cement, says, ‘’Imports are unviable. Besides transportation cost, we lack bulk handling facilities at our ports.’’

Cement stockists say the ports can handle a maximum of 2 million tonnes of cement a year. They feel the option by road or rail does not make economic sense. India imports less than one lakh tonnes per annum, mainly in clinkers, at ports on the west coast.

Imports could come through Kandla, Mumbai, Kochi, Chennai and Vizag. But bringing stocks through Kandla or Vizag would be pointless as Gujarat and Andhra Pradesh have enough cement capacity.

Transporting stocks over longer distances from the ports would increase the freight charges by up to Rs 1,000 a tonne beyond a distance of 200 km.

The Pakistan Cement Manufactures’ Association said recently that it would be able to export 6,000-8,000 tonnes to India daily, which is less than 2 per cent of what the domestic market consumes daily.

‘’Pakistan has surplus capacity of 6-8 million tonnes. If producers increase capacity utilisation they could increase exports,’’ says an analyst.

Meanwhile, reports from Pakistan say cement prices have risen over the past couple of months from Rs 170-175 to Rs 195-200 for a 50-kg bag. This would also affect the price of the export to India where prices outside the metros are in the region of Rs 210.

Impetus to cement import
Hindu

India on Wednesday agreed to put cement import from Pakistan on fast track even as both nations decided to take a host of steps to multiply the bilateral trade to $10 billion by 2010.
At the end of the two-day talks between the Commerce Secretaries, it was agreed to allow two banks from both nations to operate branches across the border by December 31, 2007.

State Bank of India and Bank of India had applied for opening branches in Pakistan, while United Bank and National Bank of Pakistan are keen on starting operations in India.
India promised to put on fast track completion of certification formalities to allow import of cement and to make policy changes to allow third party certification, a joint statement issued after the “Fourth Round of India-Pakistan Talks on Economic and Commercial Cooperation” said.

“Pakistan has around 15 million tonnes of cement available for export. The first shipment should be ready by next month,” Pakistan Commerce Secretary Syed Asif Shah said at a joint press conference.
Commerce Secretary G.K. Pillai said inspectors of the Bureau of Indian Standards inspected four Pakistani facilities and they would prepare a report by this month end.

India has a cement capacity of 170 million tonnes and faces a shortfall of 10 million tonnes.
It was agreed to encourage export of Indian tea — which takes place through unofficial channels of Singapore and Dubai — through rail route.

Islamabad took note of a request to provide duty concessions. India decided to facilitate trade on 20 items of interest to Pakistan while seeking addition of 484 items in the 1,075-item list on which Islamabad allows trade with New Delhi.
Basmati rice issue

It was decided to work jointly to protect Basmati rice from unauthorised patenting.
Islamabad raised the issue of notification by New Delhi, allowing export of the Super Basmati variety that Islamabad claims has been developed by it. India agreed to look into the issue.

The two countries agreed to establish telecom connectivity at an early date and reviewed the progress of the optical fibre link.
Pakistan was invited to send a team to explore cooperation in IT-enabled telemedicine.

India, Pak trade cement for tea
Times of India, 02-08-07

Showing signs of improvement in trade ties, India and Pakistan intend to allow their banks to open more branches across the border while agreeing to a quid-pro-quo on cement and tea exports.

While India on Wednesday said it had agreed to put cement import from Pakistan on fast-track, as it hopes to increase supply in domestic markets, Islamabad intends to encourage import of tea from across the border. While there is already sufficient amount of Indian tea that finds its way into Pakistan from Singapore and Dubai, a joint statement said Islamabad "also noted the request for providing duty concessions" on the commodity.

The other highlight of the commerce secretary-level talks was a declaration to work together on using geographical indication for basmati to check against patenting of the rice.

Geographical indications, like those available to Champagne or Scotch, factor in the specific characteristics of a product produced in a certain part of the globe and ensure that it is not copied in the form of a trademark or patent on variants.

There was tension at the meeting between commerce secretary G K Pillai and his Pakistani counterpart Syed Asif Shah with Islamabad questioning New Delhi’s notification to allow export of Super Basmati variety. Pakistan claimed the variety of rice was developed by it and India had no right to export it under that brand.

Amidst the spat over rice, there was a general sense of bonhomie on show though there were few signs of actual progress. The neighbours, however, said they intend to take a series of steps to ensure that bilateral trade grew five-fold to $10 billion by 2010.

In terms of actual gains, banks from the two countries would be allowed to open branches across the border by December 31, 2007. State Bank of India and Bank of India have applied for opening branches in Pakistan, whose United Bank and National Bank want to start operations in India.

PPP model to give wings to 300 airports
Economic Times, 02-08-07

In a bid to provide world-class airport infrastructure, the government is planning to offer over 300 airports and airstrips to private players for development through the public-private partnership (PPP) model and other methods. Apart from commercial use, the airstrips would also be used for providing training to pilots.

“We are waiting for the Cabinet approval for the civil aviation policy. Once the policy is in place, we will aggressively market the airports for development on PPP basis,” a senior government official said.

“Of the 400 airports, airstrips and helipads in the country, 127 are owned by the Airports Authority of India (AAI) and, of them, only 74 are operational. We are ready to develop the remaining 53 airports along with private players,” the official added.

One mining company has asked us to give Jharsuguda airport to them for development. The modalities are, however, yet to be finalised, the official said.

The government is investing Rs 41,000 crore for the modernisation and expansion of the country’s 35 non-metro airports. The development work in all the airports would be over by 2010 end. While the government has awarded the contract for airside development at 24 airports, the contract for the remaining 11 airports would be awarded shortly.

The civil aviation ministry is also in talks with the military to open defence airports to civil aircraft. The ministry is talking to several state governments to revive unused airports in their states. To promote air service in all parts of the country, the government is drafting a policy for the regional airlines.

The domestic aviation market is expected to grow 20% in five years. The growth in the sector is slated to stabilise in the long run at a CAGR of 12% in 20 years.