A transport subsidy is something Federation of Indian Export Organisations (FIEO), umbrella body of exporters, is pitching for as a measure to boost exports from Telangana.
Figuring among multiple recommendations made as part of a logistics study of Telangana by the Federation, the subsidy is suggested as a measure to defray the high cost of inland movement associated for exports from land-locked states.
The study report, which FIEO sources say is close to being finalised, is recommending introduction of the subsidy to partly offset toll charges incurred while moving goods to ports, mostly JNPT in Mumbai, and warehouse charges at Inland Container Depots (ICDs).
Bulk of the exports from Telangana — a diversified basket dominated by pharmaceuticals and organic chemicals — are routed through Hyderabad airport (air cargo) and ICDs in Thimmapur and Hyderabad (Sanath Nagar). In 2018-19, merchandise exports, were valued at $7.3 billion. The study comes in the backdrop of efforts to enhance exports from Telangana, the 11th largest exporting State with a share of 2.19% of the country’s export.
A leader in IT and ITeS exports, Telangana government is keen on growing merchandise exports too, as it believes that there is considerable scope to do so in many other sectors. Engineering, agriculture, granite, jewellery and handicrafts, figure in this list, something FIEO Southern Regional Chairman Israr Ahmed had underscored at a meeting here recently. The State government has also engaged FIEO to formulate exports strategy.
Besides transport subsidy, the logistics study is set to highlight the need for measures to cut down on the time taken in movement from ICD Sanath Nagar — took around 8-9 days during monsoon — and increase train frequency to JNPT. The recommendations pertain to real time tracking of cargo, use of more information technology at warehouses and measures to improve drivers’ training and availability.
Easing traffic
The study is for further easing of road traffic restrictions for smooth flow of export cargo, removal of some check posts that remain, improvements to the Nizamabad-Latur NH-361 and from Medchal to Zaheerabad.
While referring to several projects, either proposed or being implemented, such as Multi Modal Logistics Park and road development, the study points out the need for an integrated cold chain infrastructure. Another recommendation is training of health department officials by the Plant Quarantine office to issue plant quarantine certificate.