Exporters request KPT not to forfeit BGs
A group of exporters led by FIEO Managing Committee Member Mr. Sushil Kr Patwari called on the Chairman of Kolkata Port Trust Mr. A. K. Chanda on 30th November and requested him to stop forfeiting their bank guarantees for non-fulfillment of export obligations.
The exporters said that they could not fulfill their export obligations for iron ore through Haldia Port, especially between 15th June and 15th October 2005, due to many unavoidable reasons like transporters’ strike and collapse of infrastructure obstructing the movement of cargo.
The exporters said truckloads of goods remained stranded for a long period in Jharkhand due to the strike called by transporters against overloading rules. They further said that the bridge connecting Mecheda with Kolaghat, through which the iron ores are transported from Mines to Haldia Dock Complex, broke down causing complete stoppage of movement of trucks.
The exporters added that for want of railway rakes also the cargo could not be moved to Haldia Dock Complex for shipment. They said this is a perennial problem and some urgent steps should be taken to improve the availability of railway racks.
According to the exporters, the infrastructural constraints faced by them were compounded by wide fluctuations in iron ore prices as well as their depressed demand from China. They appealed to the Port Chairman not to forfeit their bank guarantees for non-fulfillment of export obligations in view of these difficulties faced by them and requested him to adjust their BGs in the third quarter.
The Port Chairman advised FIEO to make a formal request on behalf of the exporters citing bonafide reasons for non-fulfillment of export obligations by them and assured to examine the issue.
It was further pointed out by some of the exporters that the areas being allotted to them were not suitable for storing iron ore, leave alone exporting from it. They said: "An exporter, on allocation of an area, has to first ensure that the area is free from water and other problems before placing iron ore in that area. This is further obstructing us to fulfill our export obligations." They urged that Kolkata Port Trust authorities should consider the hazardous conditions under which the exporters are forced to operate and extend them the necessary help in fulfilling their export obligations on time.
Referring to Terminal Handling Charges (THC) levied by Kolkata Port Trust, the exporters said: "The THC includes the cost of crane and other material handling equipment services. However, during breakdown of port cranes and other equipments, private operators provide such services for which exporters have to pay separately. Thus the exporters end up paying twice for the same services." The exporters were of the view that in case of sudden breakdown of cranes and other handling equipments, the Port Trust should pay for the services of private operators and not the exporters.
The exporters further urged Mr. Chanda to fix Terminal Handing Charges (THC) for CFS and ICD keeping in view applicable BOX Rate, cost of transportation, lift off etc. They also urged that lorry permits should be issued by the Port for working at all the sheds for 24 hrs and, if possible, a provision should be made for the use of such permit on the second day as well.
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‘Foreign investments being preferred to exports’ FIEO took an opportunity to brief the Indian Vice President Md. Hamid Ansari on the prevailing export scenario in the country. FIEO President Mr. Ganesh Kumar Gupta, accompanied by Immediate Past President Mr. O P Garg and Director General Mr. Ajay Sahai called on the Indian Vice President on 28th November at his office. FIEO President informed the Indian Vice President that a large number of export units were being closed and millions of people were losing jobs in the face of appreciating rupee. "Exporters in general have been hit by the relentless rise of Indian currency, but the small and medium exporters dealing in traditional commodities like handicrafts, textiles, leather and agro-products are unable to cope with the situation and are left with no choice other than shutting down their units," he said. Mr. Gupta expressed his concerned over the way investments in the stocks were being preferred while exports were being ignored by the government. He said the current approach of the government to allow the appreciation of rupee for attracting more foreign investments is fallacious and does not augur well for the economy at large. "It is a well known fact that export earnings are used for the import of goods under PDS, edible oil, defence equipments and life saving drugs and if these earnings are allowed to go down, then the government may lose its political credibility," cautioned he. Mr. Garg informed the Vice President that though the Commerce Ministry was on its feet to convince the Finance Ministry and the office of the Prime Minister on the issue, the desired results were not coming. He expressed fears that if adequate measures were not taken immediately, then Indian exports would not be able to sustain its past momentum and if the exporters kept laying off workers then the ruling government would face a huge challenge to win the masses. |
