Engineering exports seems to recover later in the year : EEPC Chairman

NEW DELHI: The global slowdown is making its mark on the economy, with engineering exports to key markets China, the EU and the US declining sharply in December. Engineering exports contribute about a quarter to the overall exports.

“Some of the recent reports suggest global trade would remain subdued inthefirsthalfof2023.TheS&PGlobal report has estimated that global trade may decline1.9 per cent and 1.4 per cent in the first and second quarters of 2023, respectively. However, the report also indicates that global trade would recover later in the year. Therefore there is some positive news for India in the coming months,” EEPC India ChairmanArunKumarGarodiasaid.

“Till then there are certain factors about which India should be cautious — the protective duty structure in the EU, withdrawal of EUGSP (generalised scheme of preferences) and EU’scarbon border adjustment mechanism are expected to have some transformational impact on India’s presence in globalsupplychains,”hesaid.

Data showed the value of shipments to the US, the top market for India’s engineering goods, declined 7.3 per cent to$1.58 billion in December 2022compared with $1.71 billion in December 2021.

Exports to China registered a 47 per cent decline to$233.2 millioncomparedwith$440.7 millionayearago.

Engineering exports to the EU fell 14.3per cent to $1.54 billion.Shipments to the UAE dipped 18.9 per cent to 456.3 million.

Total engineering exports stood at $9.08 billion against$10.30 billioninDecember 2021.

ArcelorMittal-Bothra Shipping JV wins deal to run 2 Bulk Berths at Vizag Port

VISAKHAPATNAM: A consortium of ArcelorMittal Nippon Steel India Ltd and Bothra Shipping Services Pvt Ltd has won a 30-year contract to mechanise and run two bulk cargo berths at State-owned Visakhapatnam Port, officials said, as the steel maker seeks to bolster its logistics chain to supportmanufacturing.

“The letter of award for the project was issued to ArcelorMittal Nippon Steel-Bothra Shipping Services consortium after the bid was approved by the board of Visakhapatnam PortAuthority,”theportofficialsaid.

The ArcelorMittal Nippon Steel India-Bothra Shipping Services consortium had submitted the highest royalty of Rs 44 a ton for the project when the price bids were opened earlierthisweek.

Port tenders at major ports (owned by the Centre) are decided on the basis of royalty per ton – the entity willing to share the highest royalty per ton of cargo handled at the berth withtheportauthority winsthedealfor30years.

The royalty payable will rise annually in tandem with the increase in wholesale price index (WPI), a measure of costs. The terminal operator will be free to set market rates under the new Major Port Authorities Act and the model concession agreement (MCA).

The project involves mechanising the 560 metres long West Quay berths 7 and 8 at the eastern coast port on Design, Build, Finance, Operate and Transfer basis with an investment of Rs 288.47 crores to handle 6.14 million tonnes (mt)ofcargoayearbasedonyardcapacity.