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Port sector played a key role in India surging 23 ranks in ease of doing business

The Shipping Ministry along with the Department of Revenue in Finance Ministry have played a key role in India in taking a huge leap of 23 ranks in the World bank sponsored ease of doing business during the current year.

India has taken the 77th position during the last financial year compared to 100 th position in the previous year indicating that it is continuing its steady shift towards global standards. One of the key indices which has contributed immensely toward this growth is ‘Trading across borders’ which shows an impressive improvement from 146 rank last year to 80th rank this year.

The Ministry of Shipping has been taking initiatives to improve the parameter of ‘Trading across border’ as 92 per cent of India’s Export- Import trade by volume is handled at Ports.

The report mentions that this is mainly due to India’s continued reform agenda, which has made it the top-ranked economy in the region. Upgradation of port infrastructure, Improvement of processes, and digitization of document submission has substantially reduced Export/Import cargo handling time at ports which has significantly contributed towards improving the trading across border parameter and India’s impressive growth in the World Bank’s report. The World Bank has recognized India as one of the top improvers for the year.

 Focused efforts at improving the export/import cargo handling at major ports has contributed to improving the Ease of Doing Business in India and thus will help in economic growth & more jobs opportunities for the youth, said Nitin Gadkari, Union Minister for Shipping.

The Government has initiated a series of steps to make India’s EXIM logistics more competitive in terms of time and cost.

“The focus has been on development of port infrastructure and capacity enhancement, improvement in last mile connectivity and development of multi-modal hubs to promote EXIM while reducing logistics cost and time. Under Sagarmala, port-led-development initiative of the Govt, 266 port modernization projects with an investment of more than Rs 1.45 lakh Crore has been identified for implementation over next 10 years.”said the Minister.

80 projects worth Rs. 13,701Cr have been completed and projects worth 2.39 lakh Crore are under implementation.

“In order to enhance last mile connectivity, 211 road-rail projects worth Rs 250,907 Crore have been identified under Sagarmala.15 multimodal logistic parks with an investment of Rs3,989 will help in improving efficiency in freight movement under the program”, the minister added.

With more than 5 per cent average growth at major ports over last 4 years, the Ministry of Shipping, has taken several steps to improve their operational efficiencies through policy and procedural changes and mechanization.

As a result, key efficiency parameters like Average Turnaround Time and Average Output Per Ship Berth day have improved considerably. For example, the Average Turnaround Time has reduced from 82 hrs to 64 hrs in 2017-18.

Transfer of conventional activities to digital platforms, use of technology for moving cargo and simplification of processes have been done topromote business and facilitate ease of doing business. Steps taken include the following:

 Radio Frequency Identification (RFID)system installed in 11 Major Ports to enhance security, remove bottlenecks for seamless movement of traffic across Port gates.

DMICDC's Logistics Databank system (LDB),Direct Port Delivery (DPD), Direct Port Entry (DPE) improved the efficiency of the port. 

The DPD importers are benefited by savings in cost ofupto Rs.15,000/ and average serving in delivery time of 5 days.

Reducing paper work- Issuance of e- Delivery orders, e-invoice and e-payment across all the Major Ports. Digitalization of processes has considerably reduced the processing time.

Upgradation of the Centralized Web Based-Port Community System (PCS) to provide global visibility and access to the central database to all its stakeholders through internet based interfaces.


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