With India slated to become a major importer of liquid bulk commodities such as biofuels (ethanol and biodiesel), the All India Liquid Bulk Importers and Exporters Association (AILBIEA) has called for modernisation of ports and removal of antiquated policies and systems.
Jayyannt Lapsiaa, President, AILBIEA, said high transaction cost due to inadequate and inefficient infrastructure, delays and hassles due to antiquated procedures are the major hurdles that is blocking the country from attaining its full growth potential despite progress on other front.
Connectivity woes
Connectivity is still the soft underbelly of the port sector and efficient infrastructure, combined with quality and expeditious clearance procedures, will help reduce costs and sharpen the competitive edge, he said, addressing the members at a recent event to confer lifetime achievement award on Nadir B Godrej, Managing Director, Godrej Industries.
The association members handle 180-200 million tonne of liquid bulk a year, generating revenue of over ₹6.5 lakh crore. The association called for removal of operational constraints, stamp duty on transfer of shipping documents, rationalisation and systemisation of customs and excise procedure besides complete overhaul of infrastructure.
‘Outdated levies’
If the government’s Make in India and Ease of doing business have to succeed, it is imperative for the Centre and State governments to modify outdated policies and procedures. Octroi levy, sales tax, stamp duty on import-export of cargo, removal of antiquated procedures and systems are some of the stumbling blocks, he said.
India is set to become a major importer of a wide variety of liquid bulk commodities such as biofuels in the near future. Changes in infrastructure, along with change in mindset of process owners such as customs and government officials, are equally important, Lapsiaa added.
Source: Hindu Business Line
