FIEO launches
Warehousing and Logistics Hub in Sharjah |
After conducting a preliminary field assessment in consultation with Consul General of India in Dubai and India Business & Professional Council (IBPC), Sharjah, FIEO took the initiative to set up India Trade Warehousing & Logistics Centre, Sharjah (UAE) in SAIF Zone. A FIEO team, led by its Secretary General Mrs. Tinoo Joshi, visited Sharjah to finalise the details and obtained provisional approval for engaging into commercial and general trading on multi-product platform. Subsequently, a company, named Indus Trade Services FTZ, was registered under SAIZ Zone regulations. In order to create awareness about Indus Trade Services FTZ among prospective stakeholders, FIEO organized an |
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Mrs. Tinoo Joshi, Secretary General, FIEO explaining about the Warehousing & Logistics Centre, Sharjah. On her left is Mr. A Sakthivel, Vice President, FIEO and Mr. M Rafeeque Ahmed, Past President, FIEO. |
interactive meeting of exporters from textiles, readymade garments, leather, agro and processed food, handicrafts, engineering, marine, drug & pharmaceuticals and other sectors with Mrs. Joshi at Chennai on 28th May. FIEO Vice President Mr. A. Sakthivel chaired this meeting.
FIEO Vice President gave an introduction of the Zone and explained the objective behind setting up the Zone. On being asked about cold storage facility in the Zone, he said that the facility would be available at extra cost. With respect to who would issue visa to Indus stakeholders, Mr. Shakthivel informed that the designated authority would issue the visa.
Briefing the participants about Indus Trade Services FTZ, FIEO Secretary General said that the company would have an Empowered Executive Committee that would take all decisions within the framework of the project guidelines of the Department of Commerce and broad policy framework of FIEO. The management would be chosen from amongst interested member stakeholders who would volunteer to contribute to the running of the Centre, she added.
Mrs. Joshi informed that the Ministry of Commerce had agreed in principle to grant 50% of the rent for 3 years and 50% towards publicity under MAI Scheme, but she added that the Ministry would consider sanctioning the amount only after the stakeholders raised their share.
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Indus Trade Services FZE
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At the end, FIEO officials appealed to potential stakeholders to fill up Registration Form and remit full payment of Rs. 6 lakh. On receipt of the payment, the required amount would be remitted to the SAIF Zone authorities and project would be started immediately, they said.
Mr. M. Rafeeque Ahmed, Past President, FIEO, representatives of various export promotion councils and trade associations were present in the meeting besides prominent exporters.
During the interactive session, the following queries were raised and clarified.
Will manufacturing, processing or repacking be allowed in the Warehouse?
No manufacturing activity will take place, however, value addition and repacking can be done within the space booked by the stakeholder.
What will be the layout of the Warehouse?
It will be fully air-conditioned Warehouse divided by wall and shed on the top. Space partition can be customised. Stocking and redistribution can be done.
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What type of arrangements would be made to protect the conflict of interest and maintenance of business secrecy? The Warehouse would be based on the principles of collective enterprise and hopefully there would be no conflict of interest as Indus employees will work for everybody. What is the lock-in period of membership for the stakeholders? Lock-in period is one year although the Ministry of Commerce is insisting for 3-year lock-in period. |
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A view of the audience |
Can a stakeholder rent out his space?
If a stakeholder is collaborating with another company and wants to share the facility for the whole year, then there will be no objection as long as the stakeholder complies with the norms of doing business.
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Exporters asked to strictly follow MDA guidelines The Ministry of Commerce through its letter dated 13th June, 2008 has informed FIEO that no request for relaxation in MDA guidelines would be considered by the Ministry and as such no request in this regard should be forwarded. It further states that the guidelines are very specific regarding the eligibility, time schedule of the activity, processing of the proposals etc. and the same should be strictly followed. In view of above, exporters are requested to forward MDA application to FIEO/EPCs for claim well in time and in accordance with the MDA Guidelines to avoid any rejection/delay of settlement of the claim. |
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Exim Bank extends US$ 10.59 million LoC to Suriname Export-Import Bank of India has extended a Line of Credit (LoC) worth US$ 10.59 million to the Government of Suriname for financing export of goods and services from India. Exim Bank will reimburse 100% of the contract value to Indian exporters, upfront upon the shipment of goods. The Agreement to this effect was signed in Paramaribo on 16 May by Mr. Tarun Sharma, Resident Representative, Washington, on behalf of Exim Bank and Mr. Humphrey S Hildenberg, Minister of Finance, on behalf of the Govt. of Suriname. Mr. Anand Sharma, Minister of State for External Affairs was also present on the occasion. The agreement was signed during 4th Joint Commission meeting between India and Suriname. Exim Bank has already extended two Lines of Credit amounting to US$ 26.4 million to Suriname. The first LoC of US$ 16 million was utilized for (i) a transmission line project (ii) supply of bulldozers, trucks, excavators, and (iii) supply of communication equipment and solar lanterns to Suriname. The second LoC of US$ 10.4 million was utilized for a water supply project in Surname. Exim Bank has so far extended 92 lines of credit, covering over 89 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments amounting to US$ 3bn, available for financing exports from India. Exim Bank’s LoCs afford risk-free, non-recourse export financing option to Indian exporters. Suriname is one of the growing economies of South America, having registered a GDP growth rate of 5.4% in 2007. Suriname’s main items of exports are alumina, gold, crude oil and refined products. Main products exported from India to Suriname are manufactured goods, agriculture and allied products. |
