Introduction

Public Sector Undertakings (PSUs) under the Department of Commerce (DoC) serve as effective instruments of public policy. They serve as the trading arm of the Government to augment supplies of essential commodities and to exercise a moderating influence on prices. PSU imports cater primarily also to the Public Distribution System (PDS).

State Trading Corporation of India Limited (STC), the Minerals and Metal Trading Corporation (MMTC) and Projects Exports Corporation (PEC) and PSUs/STEs under the administrative control of Department of Commerce, were set up by the Govt. of India to engage in trade in specified areas.

Today, they engage in trade in different commodities, with profit centres notably in agro-products, coal and hydrocarbons, fertilizers, bullion, minerals and metals, engineering products and equipment, etc.

Canalized trade was the mainstay of these Public Sector Undertakings in the past. The export of Iron-ore (of certain grades), Manganese ore and Chrome ore are canalized through MMTC which has been a traditional exporter of iron ore to Japanese South Korean and Chinese Steel Mills through Long Term Agreements (LTAs) for a period of five years. With trade liberalization, the scope of canalization was substantially reduced and the role of the PSUs today has been reoriented towards emergence as international trading houses capable of operating in a competitive global environment.

1. Minerals and Metal Trading Corporation Limited (MMTC)

MMTC is widely recognized as India’s largest International Trading Company and the first Public Sector Undertaking to be awarded as “Premier Trading House” status in the country. It is actively involved in exploring overseas markets for exports and sourcing material for domestic needs. With focus on ‘bulk’ operations, MMTC primarily has six core commodity groups viz. Minerals, Precious Metals, Coal & Hydrocarbons, Fertilizers & Chemicals, Agro commodities and Metals.

Financial Performance

During the first six months of 2010-11, the company has achieved a turnover of Rs.28,812 crores. This performance works out to 174% of the proportionate MOU target of Rs.16,560 crores turnover set for the first six months of 2010-11 (April-September, 2010).

In all the three segments of trading business of MMTC, namely, export, import and domestic trade, the company has witnessed growth as compared to proportionate MOU targets to the extent of 52%, 77% and 32% respectively.

Net profit at Rs.95.96 crores has shown an increase of 47% over the proportionate MOU target of Rs.65 crores.

Computerisation & Technology Elevation

During the period under report, the company’s information knowledge capabilities were further augmented through business intelligence tools for integrated performance management including analyzing & alerting, aiming at enhanced management controls/monitoring for operational excellence. Enhanced transparency, accuracy and reliability through e-payments, e-tendering & e-auction were successfully continued.

The IT systems security management has been further improved through deployment of layered security set-up leading to higher level of security, reliability and availability of system. Applications were deployed to enhance the quality of retail business management and also for increased customer satisfaction.

Human Resources

Cordial and harmonious industrial relations prevailed in MMTC with no man-days being lost. Regular meetings were held with the Unions/Associations at local level and Federation/Association at the Apex level under Joint Consultative Machinery/Structured Scheme of Meetings for arriving at amiable resolution of personnel issues with a view to achieve Company’s goals and objectives.

The aggregate manpower of the Company as on 30th September 2010 stood at 1792 including three board level executives, the balance comprising of 584 officers, 1124 staff and 84 workers. This manpower strength includes 20 officers, 126 staff and 84 workers of erstwhile Mica Trading Company Limited, which had been merged with MMTC pursuant to the orders of BIFR. While women employees represented 18.64% (334 employees) of the total manpower. The representation of SC, ST, OBC and Persons with Disability (PWD) was to the extent of 21.21% (380 employees), 7.53 (135 employees), 1.56 (28 employees) and 1.73 (31 employees) respectively. During this period 06 officers were inducted through campus recruitment. Presidential directives on reservations for SCs, STs, OBCs and PWD in services were followed fully in recruitment and promotion. In an effort for rightsizing the manpower, Voluntary Retirement Scheme was offered which was availed by 01 officer, 01 staff cadre employee and 02 workers.

Implementation of Official Language Policy

The Company is committed to uphold the Official Language Policy of the Government. In order to promote the usage of Hindi in Company’s day to day work, several programmes viz. Hindi Workshops/Hindi Seminar/Hindi Day/Week/Fortnight were organized at Corporate Office and Regional Offices during the year. A Kavi Sammelan was organized during the Hindi Fortnight. To encourage the employees to do their day-to-day work in Hindi relevant literature and details of incentive schemes were widely circulated among them.

Subsidiary Company

MMTC Transnational Pte. Ltd., Singapore (MTPL) is a wholly owned subsidiary company of MMTC. During April-Sept 2010 it has achieved a business turnover of US$ 376 million (Prov.). During this period MTPL has generated profit after tax of US$ 0.80 million (Prov.). The net worth of MTPL stood at US$ 18.03 million (Prov.) as on 30th September, 2010. MTPL continues to enjoy “Global Trader” status awarded to it by IE Singapore.

5a. To expand and give impetus to growing trade between India and Africa, MMTC has opened an office at Johannesburg, South Africa in January 2011.

Infrastructure Development

A. Neelachal Ispat Nigam Ltd. (NINL)

Neelachal Ispat Nigam Ltd., a company promoted by MMTC, IPICOL, NMDC, MECON etc., has set up an iron & steel plant of 1.1 million tonnes capacity, coke oven of 0.8 million tonne capacity alongwith a by-product plant, captive power plant of 62.50 MW etc. with total expenditure of nearly Rs.2000 crore of Kalinganagar, District Jaipur, Orissa. During this period also, NINL maintained its position of being the largest Pig Iron producer & exporter in the country.

The total turnover and cash profit/(loss) of the company for the half year is Rs.482 crore and Rs. (12) crore respectively. Construction of Phase II expansion Plan of NINL for steel making facility (Billets, wire rods) is under progress.

B. Other Projects

Aiming at diversification and with a view to add value to its existing trading operations, the Company has undertaken various strategic initiatives following public-private partnership route. These strategic initiatives to enhance company’s future sustainability include:

1. Promoted a Commodity Exchange under the name and style of “Indian Commodity Exchange (ICEX)” which has commenced operations during November 2009.
2. Participated in equity of Currency Exchange under the name and style of “United Stock Exchange of India Ltd” which has commenced operations during September 2010.
3. Joining hands with an international producer as a joint venture partner for setting up a gold /silver medallion manufacturing unit, which would also include a gold refinery as an integral part, under the name and style of “MMTC-Pamp India Private Limited”. The civil construction activities for medallion manufacturing unit located in Haryana are already complete and the trial production for minting of medallions is expected to commence in February 2011.
4. For promoting retail sales of value added products like medallions, silverware and jewellery on all India basis, MMTC has established Joint Venture “MMTC Gitanjali Private Limited”. The JV commenced operations in April 2009 and as on date 17 showrooms are operational in different cities in India under the Brand name “SHUDHI”.
5. Setting up permanent berth with loading facilities for Iron ore at Ennore Port jointly with SICAL and L&T Infrastructure Ltd. under the name and style of M/s. SICAL Iron Ore Terminals Limited, Chennai.
6. Development of deep drought Iron ore berth at Paradeep Port (Orissa) jointly with Noble Group Ltd and Gammon Infrastructure Projects Ltd under the name and style of M/s. Blue Water Iron Ore Terminal Private Ltd.
7. Towards investing in mining infrastructure MMTC has promoted a joint venture Company with M/s TATA Steel Ltd. for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal etc.
8. MMTC has been allotted a coal mine in Jharkhand having estimated reserves of about 700 million MT. The prospecting license for the said mine has been issued by the concerned authorities and pre-feasibility study commenced.

Corporate Social Responsibility (CSR)

Since its inception in 1963, MMTC has been sensitive to its social responsibilities and has been discharging its responsibilities whenever there have been any natural calamity like earthquake, Tsunami, drought, flood etc. MMTC adopted CSR as a policy initiative from 2006-07.

Prior to issuance of detailed guidelines by DPE on CSR, Company retained 1% of retainable profits during a year as funds for undertaking CSR activities. Department of Public Enterprise (DPE) notified detailed guidelines on CSR on 9th April 2010. In accordance with DPE guidelines and with approval of Board of Directors of the Company, 2% of net profits during previous year are earmarked as budget for undertaking CSR activities in a year w.e.f. 2010-11. Accordingly, the CSR budget of the Company for the year 2010-11 worked out to Rs.4.32 crores.

The CSR activities cover diverse areas such as health care, infrastructure developments, literacy promotion, promotion of sports & games, protection of environment, natural calamities and sustainable development of the society preferably in the neighbouring areas of MMTC’s operations particularly in backward areas.

In addition, under sustainable development, MMTC has taken up plantation of 5500 saplings in the vicinity of MMTC Regional offices located in Bellary (Karnataka) and Barbil (Orissa). Besides, a village in district of Jajpur, Orissa has been adopted for construction of a check dam in collaboration with Irrigation Department, Govt. of Orissa. The Company is also contemplating construction of another check dam during the current year in Jajpur District; Orissa where NINL Steel Plant, jointly promoted by MMTC and State Govt. of Orissa, is located.

II. The State Trading Corporation of India Limited (STC Ltd.)

STC was set up on 18th May 1956 primarily with a view to undertake trade with East European countries and to supplement the efforts of private trade and industry in developing exports from the country. STC has played an important role in country’s economy by arranging imports of essential items of mass consumption (such as wheat, pulses, sugar, edible oils, etc.) into India and developing exports of a large number of items from India. The core strength of STC lies in handling exports/imports of bulk agro commodities. However, over the years, STC has also diversified into exports of steel raw materials, gold jewellery, iron ore and imports of bullion, hydrocarbons, minerals, metals, fertilizers, petro-chemicals, etc. This has helped STC achieve record breaking performances in the recent years. STC is today able to structure and execute trade deals of any magnitude, as per the specific requirement of its customers.

Performance during 2009-10

Total Turnover

During 2009-10, STC achieved the highest ever turnover of Rs 21,509 crore thereby reflecting a growth of 9% over previous year. The growth in turnover was mainly attributable to an all time high import turnover contributed by items such as bullion, hydrocarbons, minerals & metals, petrochemicals, etc. The performance was all the more significant in view of a large number of factors adversely affecting STC’s business, especially exports viz. continuing impact of global meltdown, slackness in the steel market during earlier part of the year 2009-10, non-availability of a number of agricultural items such as wheat, rice, sugar, etc. for exports due to domestic shortages.

Exports

In spite of a number of factors hampering exports, the Corporation continued making persistent efforts to increase exports. As a result, STC was able to revive overseas steel operations in Philippines and effected exports of steel raw materials amounting to Rs 623 crore during 2009-10, which were 39% higher than the previous year. STC also exported Rs 409 crore worth of steel raw material to other countries. Exports of jewellery amounted to Rs 272 crore. During 2009-10, STC found new buyers of castor oil and made exports worth Rs 89 crore to France, U.K., Netherlands and Thailand.

Total exports during 2009-10 amounted to Rs 1,504 crore.

Imports

The import turnover reached the highest ever level of over Rs 19,000 crore during 2009-10. STC was able to substantially increase its bullion business, which rose to Rs 10,219 crore. The Corporation continued to arrange import of petro-chemicals and effected sales worth Rs 3,083 crore. Imports of hydrocarbons, minerals & metals amounted to Rs 3,106 crore. This included Import of steam coal for various power generating units. During 2009-10, STC was once again asked by the Govt. of India to import urea. Accordingly, STC arranged import of 6.8 lakh MT of fertilizers worth Rs 867 crore as against imports of Rs 1,615 crore in 2008-09. STC also continued to undertake pulses import on behalf of the Govt. of India in addition to import on commercial account. The pulses operations together yielded a turnover of Rs 625 crore during 2009-10 and were slightly higher than the previous year. During 2009-10, STC also imported about 3 lakh MT of edible oils resulting in a turnover of Rs 919 crore. This includes Rs 126 crore from sales of edible oil imported on behalf of the Government, which was packed in 1-litre pouches and delivered to the state governments.

Domestic Sales

During 2009-10, STC effected Rs.482 crore worth of domestic sales of hydrocarbons, minerals and metals items. Sale of pulses was the second largest activity on domestic front and the same yielded a turnover of Rs.239 crore. Domestic trading in oils, seeds and extractions resulted in a turnover of Rs 106 crore.

The domestic tea operations yielded a turnover of Rs 13 crore. Other major items of domestic trade were jute goods (Rs.41 crore) and maize (Rs 6 crore).

Total domestic sales during 2009-10 amounted to Rs 956 crore.

Profitability

During 2009-10, STC earned a Profit Before Tax (PBT) of Rs.171 crore which was 18% higher than the PBT achieved during the corresponding period of previous year.

Dividend

The Corporation paid a dividend of 47.5% of its paid-up equity capital for the year 2009-10.

Performance during April – November, 2010

Total Turnover

During April-November, 2010, the Corporation achieved a turnover of Rs.11,917 crore which was marginally lower than the corresponding period of previous year. However, the performance was quite significant considering that some hitherto major businesses of the Corporation, such as overseas steel operations at Philippines and import of thermal coal for NTPC did not yield any turnover during April-November, 2010.

Exports

During Apr.-Nov.’10, the Corporation was able to export iron & steel items worth Rs 148 crore. It also exported castor oil worth Rs 92 crore as against Rs 59 crore during Apr.-Nov.’09. Other major items of exports were maize (Rs 31 crore) and iron ore (Rs 35 crore).
However, due to deliberate stoppage of overseas steel operations, which used to form major share in Corporation’s exports, total exports during April-November, 2010 amounted to only Rs.317 crore.

Imports

The Corporation’s import turnover at Rs.11,285 crore during April-November, 2010 was marginally higher when compared with that during the corresponding period of previous year.

Bullion business continued to lead the performance on the import front. During April-November, 2010, the Corporation arranged import sales of bullion worth Rs.9,534 crore as against sales of Rs.5,182 crore in the corresponding period of previous year. It also effected sales of urea worth Rs.928 crore. Import sales of hydrocarbons, minerals & metals yielded a turnover of Rs 265 crore. During April-November, 2010, the Corporation, for the first time, undertook imports of manganese ore amounting to Rs.27 crore.

Other major items of import during April-November, 2010 under review were edible oils (Rs.299 crore), pulses (Rs.182 crore) and sugar (Rs.24 crore).

Domestic Trade

During April-November, 2010, domestic sales of oils/seeds/extractions amounting to Rs.207 crore were made. Other major items of domestic sales were pulses (Rs.49 crore), hydrocarbons (Rs.28 crore) and jute (Rs.25 crore).

Total domestic sales during April-November, 2010 amounted to Rs.314 crore.

Profit

During April-September, 2010, the Corporation’s Profit Before Tax (PBT) amounted to Rs.30.34 crore.

III. Spices Trading Corporation Limited (STCL)

STCL was originally incorporated in the name and style as “Cardamom Trading Corporation Limited” as a Private Limited Company under the Companies Act 1956 in October 1982.

Consequent to the change of name, the Company obtained a fresh certificate of incorporation under the name of SPICES TRADING CORPORATION LIMITED with effect from August 1987 in order to widen its marketing base from Cardamom to other range of spices.

Thereafter, STCL became a subsidiary of The State Trading Corporation of India Ltd., with effect from 14.9.1999 and shares held by the Ministry of Commerce were transferred to the State Trading Corporation of India Ltd.

With the diversified trading activities, the company’s name has been further amended from Spices Trading Corporation Limited to “STCL LIMITED” and fresh Certificate of Incorporation under the name of STCL Limited has been obtained with effect from August 13, 2004.

Objectives

1. To make all out efforts for recovery of the amount due from Business Associates.
2. To pursue the ongoing recovery process through legal recourse.
3. To obtain minimum Bank finance, so as to carry out core business in Spices, agricultural commodities, Fertilizers and pesticides to earn minimum operational costs.
4. To utilize chilli and other spice processing facilities available with the company for value addition and to market both in domestic and international markets.
5. To develop core competitiveness in chilli and other spices and explore the market opportunities in these areas to the best advantage of the Company and to lay emphasis on quality of services to its Clientele in the long-term business relationship.
6. To support, protect, maintain, increase and promote production of Indian Spices and other Agricultural commodities as well as their Sale/Export.
7. To fulfill Company’s social responsibility by following ethical business practices and reinforcing commitment to customers, employees, partners and communities.
8. To undertake on a continuous basis training/re-training of existing manpower so as to create a cadre of highly professional and motivated managers.
9. To become a credible company of international standards of Corporate governance and offer quality services.

Share Capital

The Share Capital of the company as laid down in its amended Memorandum of Association is Rs. 5,00,00,000/- (Rupees Five Crores), divided into 5,00,000/- equity shares of Rs. 100/- each (Five Lakhs equity shares of Rs. One hundred)

The Paid up Share Capital of the Company as on today is Rs. 1,50,00,000/-(Rupees one Crore fifty lakhs) comprising of 1,50,000 equity shares.

Branches

The Company is having its Head Office at Bangalore and branches are located at Madikeri, Saklespur and Byadagi in Karnataka, Kochi and Kumily in Kerala, Chennai, Bodinayakanur & Tuticorin in Tamilnadu, Mumbai in Maharastra, Chindwara in Madhyapradesh, Kolkota & Malda in West Bengal to promote its trade and rendering services to growers.

Human Resource

The Company had 56 regular employees on its roll as on 31.12.2010. The Company is continuing with its efforts to ensure the employees are computer literate. The employees who are not Hindi literate are deputed for training classes in Hindi.

Achievements

During the Financial year 2009-10, the company has achieved a turnover of Rs.93.95 Crores.

Service to Farmers

1. The presence of STCL in Plantation areas in the State of Karnataka and effects of distribution of fertilizers, agro chemicals and other inputs manufactured by reputed companies at competitive prices and thus the farmers interests are not exploited by the middlemen and traders. The timely supply of fertilizers had helped the farmers in carrying out their fertilizer application/operations on time, which has boosted their productivity / production.
2. STCL is regularly conducting cardamom Auctions and due to the good auctioning practices adopted, the growers are assured of realizing reasonable price for their produce. The auction practices followed are also benchmark for other auctioneers.
3. STCL has established Chilli Processing Plant at Byadagi in Haveri District of Karnataka and Steam Sterilization Unit at Chindwara, Madhya Pradesh. These projects help the growers to get remunerative price by value addition for their produce. These Projects shall achieve the following objectives:

1. To encourage farmers to produce organic and conventional spices (Black pepper and chilli to meet the export demand.
2. To increase the export share of value added products from India to the world spice market.
3. To help farmers to have higher realization.

IV. Projects and Equipment Corporation of India (PEC Ltd.)

PEC Limited was formed on 21st April, 1971 as a wholly owned subsidiary of STC. PEC Limited became an independent Company under the Department of Commerce w.e.f. 27th March, 1991.

Activities

• PEC is primarily engaged in export of projects, engineering equipment and manufactured goods, defence equipment & stores and import of industrial raw materials, bullion and agro commodities
• Consolidation of existing lines of business and simultaneously developing new products and new markets.
• Diversification in export of non-engineering items e.g. coal & coke, iron ore, edible oils, steel scraps, etc.
• Counter trade/special trading arrangements for further exports.

Objectives

• To be a profit oriented international trading organization.
• To provide adequate return to the stakeholder, commensurate with the market expectations.
• To seek new opportunities in the global and domestic market.
• To focus on export of engineering projects and equipment specially from small and medium enterprises.
• To trade in commodities such as agricultural products, industrial raw materials, chemicals and bullion.
• To continuously strive for enhancement of the corporate image of a reliable, long term and professionally competent organization.
• To continuously strive for improvement in productivity and competitiveness.
• To serve as an effective instrument of public policy and social responsibility.

** Includes Bullion – Rs. 594.36 crore.
# Dividends and corporate dividend tax has been accounted for on estimate basis.
## Equity Capital has been increased by issue of bonus shares for Rs. 18.00 crore to Govt. on 4.12.2008.
Source: PEC Ltd.

Performance

Sales Turnover

Table: 11.5
The Sales Turnover of PEC since 2008-09

Rs. crore

Source: PEC Ltd.

During the year 2009-10, PEC achieved the highest ever sales turnover of Rs.11,025.94 crore, registering an increase of 7% over the previous year. The sales turnover includes exports at Rs.1,254.91 crore, imports at Rs.8,881.57 crore and domestic sales at Rs.889.46 crore. PEC continues to achieve high productivity in terms of sales turnover per employee.

The earning per share was Rs.339 during the year 2009-10 as compared to Rs.361 in the previous year.

MOU rating for 2009-10 is ‘Excellent’ (Provisional).

During the year 2010-11, as against the MOU target of Rs.8,700.00 crore (for non-bullion trade), the Company has registered a turnover of Rs.4,566.83 crore (non-Bullion trade) upto November, 2010 and as per current expectations, is estimated to achieve a total turnover of Rs.8,000.00 crore (non-bullion trade).

Exports

Export sales aggregate to Rs.1,254.91 crore during the year 2009-10. The composition of exports since 2008-09 is at Table 11.6.

During the year, PEC secured contracts for supply of electrical equipment to Ethiopia and Kenya. PEC has also secured contract for supply, installation and commissioning of Potato Products Processing Plant at Kyrgyzstan. Supply of equipment is in progress and the Plant shall be commissioned by December 2010.

PEC has over the years become one of leading trader in agro commodities. PEC’s export of maize, barley, rice and soyameal aggregate to Rs.532.09 crore during the year 2009-10. During the year PEC achieved record exports of Iron Ore valued at Rs.630.68 crore.

Imports

PEC achieved import turnover of Rs.8,881.57 crore during the year 2009-10. Bullion continues to be largest single item in PEC’s import basket with import sale of Rs.2,544.59 crore. PEC achieved highest ever turnover of Coal and Coke of Rs.2,492.17 crore during the year. Bulk import of steel scrap, manganese ore and sugar were also undertaken. Composition of imports since 2008-09 is at Table 11.7.

Domestic Trade

During the year 2009-10, domestic sales in coal, edible oil, cotton yarn, jute, etc. aggregate to Rs. 889.46 crore.

Dividend

During the year 2009-10, PEC paid dividend & taxes of Rs. 16.38 crore at the rate of 70 % on the share capital of Rs 20 crore.

Memorandum of Understanding

PEC received during the year Merit Certificate for excellence in the achievement of MOU for the years 2006-07 and 2007-08

PEC has been rated “Excellent” in the achievement of targets for the year 2008-09 and received ‘MOU Excellence Award for the year 2008-09’ for excellent performance from Dr. Manmohan Singh, Hon’ble Prime Minister of India on 15th December, 2010. MOU for the year 2010-11 has been signed with the Ministry of Commerce & Industry.

Key Initiatives

PEC continues with its commitment to promote export of engineering and manufactured goods.

Over the years, business of PEC has changed with industrial raw materials, agro commodities and bullion constituting major part of its turnover and profit. Some of the key initiatives have been consolidation of existing line of business and selective diversification into sustainable business areas, improving operational efficiency and cost effectiveness.

PEC has invested in equity of Indian Bullion Market Association (IBMA), a subsidiary of National Spot Exchange Limited. Association with IBMA shall extend us facilities of trading, clearing and settlement to give further impetus to our bullion trade.

PEC is committed technological improvement. Networking through computers within the organization has been undertaken to implement commercial and accounting automation and achieve efficiency in operations.

Export Award

During the year, the Corporation earned Engineering Export Promotion Council’s Shield for Star Performer in recognition of its outstanding contribution to engineering exports for the year 2007-08. PEC has also been selected for Award of “Top Exporters for the year 2008-09, Silver Trophy (Merchant Exporter)” for outstanding contribution to engineering exports.
Public Redressal Mechanism

The Company has a proper mechanism for registration and time bound disposal of grievances received from the public. A complaint box has been placed at reception and Vigilance Cell. Further, a link to http://pgportal.gov.in under the heading “Public Grievances” on the home page of PEC’s website has been provided to help citizens to lodge/monitor the grievances electronically. Any member of the public who has any grievance against the Company or wants any information/clarification etc. may approach Public Grievance Redressal Officer whose details are available on the corporation’s website, namely, www.peclimited.com.

Till date we have not received any complaint under the Public Grievances Redressal System.

RTI

PEC has been complying with the provisions of the Right to Information Act (RTI) in letter and spirit. All material information of general interest to the public has been hosted on its website viz. www.peclimited.com. Central Public Information Officers (CPIOs) and Public Information Officers (PIOs) have been appointed at PEC’s Corporate Office at New Delhi and all its branch offices. Any public person can approach CPIO/PIO for seeking information under the Right to Information Act – 2005. The names and contact details of PIOs, proforma of application, amount of fee required, mode of payment are available on the official website of PEC www.peclimited.com.

Use of Hindi in Official Work

PEC continues to take effective steps for progressive use of Hindi in official work. To accelerate the pace of use of Hindi, a fortnight long programme was organized to mark ‘Hindi Diwas’ in September 2009 where various competitions were held and prizes awarded to the winners. PEC Patrika was published on this occasion. Quarterly Hindi workshops were regularly organized.

During the year, Official Language Implementation Committee met regularly to assess progress in use of Hindi.

Hindi books on literature and trade were made available for library at Head Office and Branches.

Certificate of Merit

PEC received the “Growth Master Mini Navratna (Non-manufacturing)” Award for the fastest growing Mini-Navratna for its performance for three years – 2007 to 2009 from the Dalal Street Magazine – KPMG.

V. India Trade Promotion Organization (ITPO)

Following the merger of Trade Fair Authority of India (TFAI) and Trade Development Authority (TDA), India Trade Promotion Organisation (ITPO) came into existence in 1992. ITPO is the premier trade promotion agency of India and provides a broad spectrum of services to trade and industry so as to promote India’s exports. These services include organisation of trade fairs in India and abroad, Buyer-Seller Meets, Contact Promotion Programmes apart from information dissemination on products and markets. With its Headquarters at Pragati Maidan, New Delhi and regional offices at Bangalore, Chennai, Kolkata and Mumbai, ITPO ensures representative participation of trade and industry from different regions of the country in its events in India and abroad.

Financial Highlights

During 2010-11, ITPO’s total income is estimated at Rs.268.00 crore (provisional) as compared to Rs.238.72 crore in 2009-10 while the total expenditure is anticipated at Rs.212.00 crore (provisional) as against Rs.161.15 crore incurred during the previous year. ITPO is anticipating a surplus of Rs.56.00 Crore (Provisional) during the year 2010-11 as compared to actual surplus of Rs.77.57 Crore in the previous year.

Fairs in India

ITPO organizes specialized and general trade fairs in India where industries (small, medium and large), exporters, manufacturers, service providers display their products/exhibits. During 2010-11 in the major part of the year no activities could be organized in Pragati Maidan due to Commonwealth Games. During the period April – December 2010 only 3 major events of ITPO could be organized, which were Aahara, Chennai, ITPO’s mega event IITF and East Himalayan Expo, Siliguri. Other regular events such as Delhi Book Fair, Printpack & Signage India, New Delhi, India International Leather Fair, Chennai, International Leather Goods Fair, Kolkata, Nakshatra, New Delhi etc. are held during January – March 2011.

Aahar 2010, Chennai

• Aahar, the International Food Fair 2010 was organized during August 26-28, 2010 in Chennai Trade Centre, Chennai.
• MoFPI, APEDA, ARCHI, NSIC were the co-organisers of the Fair.
• A total of 91 companies participated in the Fair.

India International Trade Fair (IITF) 2010

• 30th edition of ITPO’s popular annual event, IITF was organised in Pragati Maidan, New Delhi from November 14 to 27, 2010 (First five days were exclusively for business visitors).
  The Fair was inaugurated by Shri Anand Sharma, Hon’ble Minister of Commerce & Industry in a colourful and well attended ceremony.
• IITF offered to participants adequate visibility for their products and services among fair visitors with demarcated halls representing different sectors.
• Over 7,000 exhibitors from India and abroad took part in the event.
• The overseas participation was from Afghanistan, Brazil, Bhutan, China, Cuba, Egypt, France, Hong Kong, Iran, Italy, Indonesia, Japan, Korea, Myanmar, Nepal, Pakistan, Philippines, Switzerland, Sri Lanka, Thailand, Turkey, UAE and Vietnam.
• The theme of the Fair was “Clean & Energy Efficient Technology, Products & Services”, highlighting the global concern of energy security and environmental protection.
• Continental cuisines and regional specialties at different food outlets and Food Court at Pragati Maidan were among the major attractions for the visitors
• Maharashtra was the partner state, and Chhattisgarh and Rajasthan were focus states.
  Special focus on infrastructure, operational aspects including safety and entertainment.
  It was the first time that online booking was introduced.
• To facilitate the visit of overseas delegates, exclusive International Business Lounge was operated near Gate No. 2, Pragati Maidan.

3rd Envirotech, November 14-27, 2010

• The 3rd edition of Envirotech was organized as part of ITPO’s flagship event IITF 2010 as Theme Pavilion during November 14-27, 2010.
• The exhibit profile of the event included all environmental related technologies, products, methodologies, equipments and services, E-vehicles, environment educations, solar panels, industrial pumps, air pollution control equipments, Industrial Fans, fire safety products, Solar products and appliances, waste recycling technologies.

3rd Energytech

• The 3rd edition of Energytech was organized as part of ITPO’s flagship event IITF2010 as Theme Pavilion during November 14-27, 2010.
• The exhibit profile of the event included e-vehicles, solar panels, industrial pumps, air pollution control equipments, Industrial Fans, fire safety products, Solar products and appliances, waste recycling technologies.

4th East Himalayan Expo, 2010

• 4th East Himalayan Expo was organised from 10th to 19th December, 2010 at Paribahan Nagar, Matigarh in Siliguri with Bangladesh as the partner Country.
• The fair was inaugurated on 10th December, 2010 by Hon’ble Minister in Charge Shri Asok Bhattacharya, Municipal Affairs and Urban Development Deptt., Govt. of West Bengal and Chairman, Siligurui Jalpaiguri Development Authority.
• A total of 121 units/organizations participated in 4th East Himalayan Expo, of which 14 companies participated from Bangladesh, 40 Ladies Self Help Group participated under Panchyat & Rural Development Pavilion, 65 Companies participated under shell scheme in ITPO built up pavilion and 2 companies in open bare space under ITPO.

10th Printpack India 2011

• 10th Printpack India, 2011 which was organised during 16-21 January, 2011 in Hall No. 2 to 12 A at Pragati Maidan.
• IPAMA was the co-organisers of the event.
• The event covered an area of 18,000 sq. mtrs. approx., which is 24% higher than the exhibition area of 14,500 sq mtr during the last edition in 2009.
• 406 exhibitors participated in Printpack, 2011, which included 20 overseas participants from 11 countries.
• The event which was earlier being organized every four years has now been held after two years in view of the exponential growth of printing, packaging and converting sector.

6th Nakshatra 2011

Nakshatra, 2011 was organised at Hall No.15 in collaboration with Future Point. This was the 6th edition of the event featuring astrology, palmistry, tarot, numerology, fungshui, reiki, gemology, aura reading, vaastu and related subjects is drawing large crowd. This year around 100 participants took part in the fair. In the last two days seminars on the importance of Astrology and Vaastu were organised.

Fairs Abroad

Overseas fairs during April-December, 2010

• During the year 2010-11, ITPO proposed to organize participation in 27 overseas trade fairs including Brand India Shows one each in Shanghai & Melbourne and two Mini India Shows in Osaka.
• Out of the 27 events, ITPO has organized participation in 22 events so far (April – December, 2010).
• Out of the 22 events held so far, 5 were held in Europe, 5 in Africa & Middle East, 6 in Asia, 5 in Americas and 1 in SAARC region.
• Further, out of the 22 events, 7 were general fairs, 11 were specialized fairs and 4 were exclusive Brand India Shows/Mini India Shows.

Proposed overseas fairs during 2011-12

During 2011 – 12, ITPO proposed to organise 40 overseas trade fairs including 2 exclusive India Shows and 2 Mini India Shows.

Brand India Shows

1. Expo 2010, Shanghai

• Coming as a sequel to the Expo series, World Expo was held during May 1 – October 21, 2010 at Shanghai, China. ITPO acted as the nodal agency for setting up India Pavilion at this mega event.
• The Theme of India Pavilion was “Cities of Harmony”, in line with the overall theme of the Expo: “Better City, Better Life”.
• “Unity in Diversity” of India was depicted through Central Dome, inspired by the Sanchi Stupa and further revolved around a journey of India cities from ancient times of Mohan Jodaro and Harappa (dating back to 2000-3000 B.C Circa) through medieval period to modern India.
• Specialized products from different regions were available on sale in a Shopping Arcade.
• India national day function was celebrated on 18th August, 2010 followed by an India Business Forum in association with CII/ASSOCHAM/FICCI/NASSCOM. Hon’ble State Minister of Commerce & Industry was the Chief Guest for this occasion.
• Hon’ble President of India also visited India Pavilion during her visit to China. Important dignitaries who visited India Pavilion included Mr. Wen Jiabao, Hon’ble Premier of China.
• During the six month period of the Expo, about 53 lakh visitors visited India Pavilion. India Pavilion was accorded “Peoples’ Choice Award”.

2. India Garment Fair & India Home Furnishing Fair, Japan

• During the year, two exclusive Indian commodity shows were organized in Japan in the month of July, 2010 i.e. the 31st India Garment Fair and 21st India Home Furnishing Fair.
• The shows for Home Furnishings and Garments being organized annually for the last several years are well established and have become major sourcing avenues for these products.
• The simultaneous organization of the Shows for Furnishings and Garments during 2010 provided ample opportunity for buyers and sellers to conduct business under one roof, not only in terms of Home Furnishings but also in Garments.
• These two events together generated business worth US$ 16.28 million and were attended by 1746 buyers from leading departmental stores, wholesalers, importers, trading houses, etc.

3. Australian International Sourcing Fair

• In line with successful India shows organised by ITPO in the textile sector in Japan regularly, ITPO organised the inaugural edition of India Show in textile and home furnishings at Australian International Sourcing Fair (B-2-B), Melbourne in the month of November, 2010.
• ITPO also presented a Seminar on “Advantage of Sourcing from India” during the Show.
• Business visitors to the fair were 3121. Major retail stores in attendance at the fair included the Just Group, Kmart, Myer, Spot light and Target among others.

Trade Delegations

633 foreign delegates from 71 countries, including USA, UK, Germany, Canada, Japan, Taiwan and China, visited the India International Trade Fair’ 2010.

Associate Membership

ITPO provided a package of services to export worthy units which are enrolled as Associate Members. These services include trade enquiries received from Indian Missions abroad, market reports, details of importers and arranging meetings with visiting delegations. This year till December, 2010, 675 trade enquiries received from Indian Missions abroad were disseminated among the members by Trade Intelligence Bulletin enabling them to explore business opportunities with the overseas counterparts.

Networking with TPOs

ITPO has been actively participating in Asian Trade Promotion Forum (ATPF), a gathering of Trade Promotion Organisations (TPOs) since very beginning. All the activities of ATPF are coordinated by Japan External Trade Organisation (JETRO). Under the programme, the working-level meeting with representatives of the TPOs of the member countries and the meeting of CEOs of the member organisations meet annually. The 19th ATPF working level Meet is being held at Tokyo from January 19-21, 2011 is attended by a senior official of ITPO.

Export Potential Seminars

30 seminars were organised during IITF 2010 in association with Partner State/Focus State/State Governments/Associations. Keeping in view the theme of Clean and Energy Efficient Technologies and Products in IITF, a seminar on ‘Energy Audits and Conservation- Sustainable Initiatives and Presentation of Case Studies’ was organised by ITPO in association with The Energy and Resources Institute (TERI). Other major seminars organised by ITPO were on ‘International Trade and Climate Change’ in collaboration with Research and Information Systems for Developing Countries (RIS) and ‘Opportunities available in SEZ Scheme of India’ with EPC for EoUs and EPZs.

Computerisation

• ITPO is on its way to implement a Comprehensive Organizational Restructuring and E-Enablement project. The consultant has since given a blue-print of the proposed organizational restructuring and e-enablement which has partly been implemented and is under active finalization stage.
• The present IT infrastructure in ITPO includes about 400 desktop computers, 10 servers, 6 work-stations, attached peripherals and supporting application softwares which are operational in the networking environment.
• Besides facilitating various Divisions in their IT enabled functions on day-to-day basis, the Computer Department of ITPO has also been facilitating development, hosting and maintenance of corporate website of ITPO, two trade portals and fair specific websites. Information technology is also being used for creating databases of business visitors to ITPO’s domestic fairs and disseminating fair specific details to visitors by way of touch screen kiosks in most of ITPO’s domestic fairs.

Trade Information

During 2010-11, 900 periodicals, 52 publications including trade directories and 10 CDs were received in the Library. During April-December, 2010 as many as 800 periodicals, 40 publications including trade directories and 6 CDs were received in BIC Library. Besides these, 40 issues of Indian Export Bulletin were brought out and hosted on the website upto December 2010. ITPO has nearly 450 trade portal members as on December, 2010.

Business Information Centre

• With a view to provide reliable trade information to Indian exporters and overseas buyers, the ITPO has set up the Business Information Centre and Trade Portal www.tradeportalofindia.com at Pragati Maidan. The Portal, at present has 12 GB of information covering 54 major countries and 28 product groups which accounts for more than 85% of India’s trade. The Portal covers, among others a data base of more than 52,000 overseas importers; 15,626 Indian exporters, Product and Country Profiles, Fair and Exhibitions, India’s Trade Statistics, Global Trade Statistics, EXIM Policy, notifications and circulars of Central Excise, Customs and RBI, Market Surveys, product catalogues of ITPO members and tariffs and taxes. It has links to various trade related organizations as well.
• ITPO also has a Physical and Electronic Library located at Hall No. 19 at Pragati Maidan which is visited by more than 1000 visitors. The Centre provides online access to KOMPASS – (a database of 1.8 million companies for 82 countries, searchable by country and product, classified by manufacturer/importer/ distributor/agent).
• Besides, www.tradeportalofindia.com, ITPO is also maintaining another portal www.tradeportalofindia.org which was developed with the assistance of India and EU – TIDP with a view to promoting trade between India and EU. The Portal contains vast information on various aspects of trade and economy with special reference to EU region. Now the Portal is having information with regard to 110 countries including 27 countries falling under EU. Currently this portal is accessible with the issuance of login ID and password for member.

Setting up of Regional Trade Centres

ITPO is providing assistance to State Governments in setting up Regional Trade Promotion Centres (RTPCs) for creating Export Infrastructure in State Capital/major cities. The present status is as given below:

1. Tamil Nadu Trade Promotion Organization

• A Joint Venture Company namely, Tamil Nadu Trade Promotion Organization (TNTPO) was set up during the year 2001. This project is a joint initiative of ITPO & TIDCO, Chennai.
• The important events organized at Chennai Trade Centre include IILF, Auto components & Machine tools Engineering Exhibition, ACTECH, Alucast, 20th World Congress of Cardio thoracic surgeons, International Rubber Expo, Gems & Jewellery India, Light India International, Hindu Metro Plus, Print Expo, Green Building Congress, India Tyre Expo, KIDEX, Auto Serve 2010 etc.

2. Karnataka Trade Promotion Organization

The Trade Centre at Bangalore was set up in 2004 and is managed by a Joint Venture Company called Karnataka Trade Promotion Organization (KTPO). KTPO is a joint venture of ITPO and Karnataka Industrial Area Development Board (KIADB).

The important events organized at KTPO during April-December, 2010 include F & S Offsite, CEO Lifestyle Event, All Food Tech -2010, ING Vysya Life Insurance Event, SAP TECHED 10, ICA Expo 2010 etc.

Commercial Publicity & Public Relations

• India Trade Promotion Organization’s objective is to leverage Indian business globally. Accordingly during the current year, ITPO made extensive publicity arrangement for its B2B and B2C events through multimedia campaign viz print, electronic and outdoor media in India and overseas including World Expo Shanghai.
• ITPO worked in close coordination with the Print and electronic Media to ensure meaningful coverage through newspapers, magazines, radio and TV channels disseminating information for attracting quality visitorship.
• The Corporate Publicity booklet “ITPO – Leveraging Indian Business Globally” highlighting ITPO’s role and activities in pursuance of its mandate, was also distributed to target audience in India and abroad.
• Tender notices pertaining to various matters were also released in various publications from time to time apart from uploading on ITPO’s web site.

Corporate Social Responsibility

ITPO has undertaken a project at a cost of Rs.26.85 lakh for installing solar street lighting using LED lamps in a social welfare institution, i.e., Asha Kiran Home, Avantika, Rohini, Delhi. The project has already been completed.