. Minerals & Metals Trading Corporation (MMTC)

The MMTC is widely recognized as India's largest international trading company and the first Public Sector Undertaking to be awarded Golden Superstar (now known as Five Star) 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 seven core commodity groups viz. Minerals, Precious Metals, Coal & Hydrocarbons, Fertilizers, Agro, Metals and General Trading.

Hon'ble Minister for Tourism & Culture inaugurating MMTC'S Jewellery Exihibitions in Delhi on 9th October 2006

Performance: 2005-06

The Company recorded an impressive performance during the year 2005-06. The major highlights of the performance are given below:

• Highest ever turnover of Rs.16,362 crore - growth of 8 percent over last year.

• All time high import turnover of Rs.11,786 crore - growth of 6 per cent over last year.
• Highest ever domestic business of Rs.1,651 crore - growth of 55 per cent over last year.
• Highest ever profit after tax of Rs.108 crore.
• Return of 13.06 per cent on Net worth.
• Highest ever employee productivity at Rs. 8.06 crore.

Details of the trade performance for the period from 2004-05 to 2006-07 (up to November 2006) are given below:

Exports

The export has decreased from Rs. 3031 crore during 2004-05 to Rs. 2925 crore in 2005-06 registering a decline of about 3 per cent. Minerals exports were to the extent of Rs. 2524 crore during 2005-06 as against Rs. 2235 crore during the previous year recording a growth of 13 per cent. During April-November 2006-07, the total exports stood at Rs. 2035 crore which have surpassed the proportionate MOU target by 28 per cent.

Imports

The import has increased from Rs. 11033 crore during 2004-05 to Rs. 11786 crore in 2005-06 registering a growth of over 6 per cent. This achievement was possible due to overall growth in all the core commodity groups of the Company e.g. growth of 81 per cent in Fertilizers, 9 per cent in Coal & Hydrocarbon and 90 per cent in Metals over the preceding year 2004-05. During April-November 2006-07, the import turnover amounted to Rs 13152 crore and surpassed the proportionate MOU target by 101 per cent.

Domestic Sales

The domestic sales increased from 1060 crore during 2004-05 crore to Rs 1651 crore in 2005-06 registering a growth of 55 per cent. Major factors which contributed to this impressive growth were higher sales of Agro Products, Hydrocarbons and metals. During April-November 2006-07, the total domestic sales amounted to about Rs 891 crore which have surpassed the proportionate MOU target by 33.5 per cent.

Pig Iron manufactured at NINL Plant

Profitability

The profit before tax during 2005-06 was Rs. 167 crore as against Rs. 176 crore in 2004-05 while the profit after tax was Rs. 108 crore in 2005-06 as compared to Rs. 107 crore during 2004-05.

Financial Ratios

l Overheads to sales percentage has remained the same at 0.6 per cent during 2005-06 in spite of an increase in turnover by more than 8 per cent.

• Current ratio has improved from 113.93 per cent during 2004-05 to 144.67 per cent in 2005-06.
• Earning per share has increased from Rs. 21.43 during 2004-05 to Rs. 21.66 in 2005-06.
• Sales per employee increased from 7.33 crore during 2004-05 to Rs. 8.06 crore in 2005-06.

Foreign Exchange Earnings & Contribution to the Exchequer

During the year 2005-06, the Company's operations earned foreign exchange amounting to Rs.2899 crore and contributed Rs.494 crore to the national exchequer in the form of various levies, duties, taxes, dividend etc.

Computerization and Technology Elevation

During the year 2005-06, the Corporation's information technology capabilities were further reinforced aiming at enhanced management controls/monitoring through generation of additional reporting features for operational excellence. Accessibility of internal information to the officials of the Corporation and simplification of the internal processes has been achieved with implementation of corporate intranet during the period. A remote disaster recovery site with online replication of data has been made operational during the year to facilitate online operations across all locations for deriving benefit from ERP. The Company also set up a portal http://mmtc.in for e-tendering/e-procurement during the year which would provide enhanced governance, transparency & public confidence and make tendering process easier, faster and efficient.

Human Resources

Harmonious industrial relations prevailed throughout the year with no man days lost. The aggregate manpower as on 31st March 2006 was 2031 comprising of 624 officers, 1271 staff and 136 workers.

Awards and Laurels

The Corporation has been conferred the following awards and rankings during 2005-06:

• Top ranking in "Trading Sector" by Business Standard in their ranking of 1000 Indian Corporate giants based on MMTC's performance during 2005.
• Top ranking in "Trading Sector" and 10th rank on net sales revenue during 2004-05 by Financial Express in their ranking of Top 500 Indian Companies.
• CAPEXIL's top export award for the 15th time in a row for continued and sustained exports of Minerals & Ores from India.
• MMTC Transnational Pte Ltd., Singapore, the wholly owned subsidiary was ranked 9th (previous year 18th) under the category of General Wholesale Trade by DP Information Group, Earnest & Young and International Enterprise (IE), Singapore (under Ministry of Trade, Government of Singapore) in their survey on "Singapore 1000 Companies" for 2006.
• The Ministry of Commerce & Industry, Government of India conferred 2nd prize to MMTC for excellent work done for implementation of Official Language Policy.
• The Department of Official Language, Government of India bestowed 1st prize to MMTC's Goa Regional Office for outstanding work done for implementation of Official Language Policy.

Outlook 2006-07

The performance of the Company between April-November 2006 has been encouraging. The highlights of the performance are given below:

• Turnover of Rs. 16,078 crore, which is higher than the proportionate MOU target of Rs.9000 crore by 79 per cent.
• Export turnover at Rs. 2,035 crore as against MOU target of Rs. 1,800 crore for the April-November 2006 period - 113 per cent achievement. Export is 10 per cent higher than achieved during the same period last year.
• Import during the same period stood at Rs.13,152 crore and achievement is 201 per cent of the proportionate MOU target of Rs. 6533 crore. Import is 83 per cent higher than achieved during the same period last year.
• Domestic business turnover at Rs. 891 crore during April-November 2006 was 33 per cent higher than proportionate MOU target of Rs. 667 crore.

By the end of 2006-07, the Corporation is likely to achieve a business turnover of about Rs. 22,000 crore as against actual turnover of Rs. 16,362 crore in 2005-06.

MMTC Transnational Pte. Limited, Singapore (MTPL)

The MMTC Transnational Pte. Ltd., Singapore (MTPL) is the wholly owned subsidiary company of MMTC. It generated a business turnover of US$ 355.77 million, profit before tax of US$ 1.35 million and profit after tax of US$ 1.21 million during 2005-06. The net worth stood at US$ 6.13 million as on 31st March 2006 vis-à-vis US$ 5.13 million as on 31st March 2005. The Company declared dividend @ 25 per cent (net of tax ) for the year ended 31st March 2006 and the total dividend paid exceeds the capital contributed by MMTC besides multiplying its net worth by six times since its inception. It continues to enjoy "Global Trader" status awarded by Singapore Trade Development Board.

Neelachal Ispat Nigam Limited (NINL)

Neelachal Ispat Nigam Limited, a company promoted by MMTC, IPICOL, NMDC, MECON etc., has set up an iron & steel plant for manufacture of 1.1 million tonnes/year hot metal at Kallinganagar, District Jajpur, Orissa. During the year ended 31st March 2006, NINL maintained its position of being the largest pig iron producer & exporter in the country for the second successive year. The total turnover of the Company for the financial year 2005-06 was Rs. 1,165 crore, as compared to a total turnover of Rs. 1,138 crore during 2004-05. The Company registered a cash profit of Rs. 105.12 crore and a net profit of Rs. 14.74 crore after providing for interest, depreciation and tax in 2005-06.

NINL Plant

Other Projects

In collaboration with IL&FS, MMTC is setting up Free Trade & Warehousing Zones (FTWZ) at identified locations across the country. Greater Noida has been selected for setting up the first FTWZ for which the state government has already allotted the land. Mitsui & Co. has been selected as the strategic partner who will associate with MMTC for developing the zone. MMTC is also intending to set up a 15 MW wind energy farm in Karnataka which will produce power for sale to the state electricity grid and a pelletisation plant for iron ore in Bellary Hospet sector. MMTC has already received five railway rakes purchased under 'Own Your Wagon Scheme' of the Indian Railways (which have been placed in the central pool) to improve the logistics of operations pertaining to iron ore movement.

Hon'ble Commerce & Industry Minister being presented STC Special postal cover by Hon'ble Minister of Communication & IT

II. State Trading Corporation of India Limited (STC)

The State Trading Corporation of India Ltd. (STC) was set up in 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. The business activities, turnover and profitability of STC have grown manifold in the recent years as a result of focussed thrust on diversification and innovation.

Performance

The overall performance during the years2004-05, 2005-06 and the performance during April-December 2006 vis-a-vis figures for the corresponding period of the previous year and estimates for the full year 2006-07 are given below:

Profitabilty

As a result of diversification into many new areas of business, concentration on items yielding better trading margins and improved treasury operations, the STC recorded an all time high net profit of Rs 39 crore. In view of substantial growth in profitability, the Corporation has paid dividend @ 50 per cent for the year 2005-06, which is the highest ever paid in its history. The Corporation has exceeded the MOU profitability target by recording a profit before tax (PBT) of Rs 66 crore during April-December 2006 which is higher by 102 per cent than the profit earned during the corresponding period of previous year.

Exports

The export has increased from Rs. 568 crore during 2004-05 to Rs. 1095 crore in 2005-06 recording a growth of over 90 per cent. During 2005-06, the Corporation ventured into overseas steel operations under which it supplied steel raw materials to a steel plant in Philippines; signed MOU with Mysore Minerals Limited, a Government. of Karnataka Undertaking for getting assured supplies of Iron Ore for exports; for the first time ever, exported 4 lakh MT of Iron Ore to China valued at over Rs. 80 crore; export of chemicals and pharmaceuticals worth Rs. 400 crore and rice worth Rs. 111 crore. Besides, the Corporation diversified into exports of gold jewellery on a modest scale.

During April-December 2006, the total exports stood at Rs 1879 crore which have surpassed the full year MOU target by 115 per cent. The Corporation has expanded its overseas steel operations to Bulgaria which increased the exports of steel raw materials to about Rs 1380 crore. The exports of chemicals and pharmaceuticals items have reached Rs. 280 crore. The Corporation

has been successful in reviving exports of consumer products and effected shipments worth Rs. 30 crore. Exports of gold jewellery items during the period stood at Rs. 75 crore. The Corporation also continued to undertake exports of iron ore and effected shipments worth Rs. 22 crore

Iron Ore being exported

Imports

During 2005-06, the import of hydrocarbons, minerals and metals registered an impressive growth of 45 per cent thereby reaching over Rs. 1700 crore. Bullion imports were brought down in view of very low margins on such imports which led to an increase in non-bullion imports from 32 per cent in 2004-05 to 58 per cent in 2005-06 in the overall imports. The Corporation was able to effect import sales of Edible Oils amounting to Rs. 340 crore despite sluggish domestic demand. Other major items of imports were Fertilizers (Rs. 409 crore), Vanaspati (Rs 376 crore), Petro-Chemicals (Rs. 133 crore) and Pulses (Rs. 66 crore). The Corporation also diversified into import of Dry Fruits, Almonds and Cashews worth Rs. 47 crore.

Import of Wheat

During April-December 2006, the import turnover amounted to about Rs. 8300 crore and surpassed the proportionate MOU target by 32 per cent. The import turnover is about 107 per cent compared to the corresponding period of the previous year. In view of the declining wheat stocks in the Central Pool, the Government of India has authorized the Corporation to import a total quantity of 55 lakh MT of wheat into the country. Due to shift in focus to items yielding higher margins, the imports of bullion, yielding a very low trading margin, continued to decline and stood at about Rs. 2100 crore. However, imports of other items such as hydro-carbons, minerals & metals have reached Rs. 424 crore, fertilisers worth

Rs. 101 crore, petro-products worth Rs. 700 crore and pulses worth Rs. 121 crore. The Corporation has also imported and sold edible oils worth over Rs. 371 crore and vanaspati worth Rs. 235 crore.

Domestic Sales

During 2005-06, the domestic sales amounted to Rs. 537 crore comprising mainly of petro-chemicals (Rs. 315 crore), minerals & metals (Rs. 99 crore) and pulses (Rs. 73 crore). The Corporation has entered into oilseeds market and diversified into domestic supply of raw materials such as iron ore, steel, coke, chemicals, etc. The Corporation also secured and executed the highest ever contract(Rs. 800 crore) for supply of 1.9 million MTs of thermal coal to NTPC.

During April-December 2006, the total domestic sales amounted to about Rs. 436 crore. The Corporation continued to enter into oilseeds market and diversified into domestic supply of raw materials and sold extractions/seeds worth about Rs. 144 crore. It also sold hydrocarbons, minerals, metals & petrochemicals worth
about Rs. 145 crore. The Corporation has generated domestic sales of steel products worth Rs. 52 crore, pulses, including online sale of pulses through NCDEX worth Rs. 66 crore.

of Thermal Coal to NTPC

Total Turnover

During 2005-06, the Corporation achieved a total turnover of over Rs. 7100 crore. During April-December 2006, the total turnover has amounted to over Rs 10600 crore, which was 105 per cent higher than what was achieved during the corresponding period of the previous year and also exceeded the proportionate MOU target by 41 per cent.

Recognitions

During 2005-06, the Corporation was ranked 15th among 231 PSUs by the Department of Public Enterprises, ranked 24th in terms of sales among India's Top 500 Companies and 16th among top 50 BSE listed PSUs by Chartered Financial Analyst; ranked 27th in terms of total income as per India's TOP 500 Companies Survey brought out by Dun & Bradstreet Information Services Pvt. Ltd. The Corporation was also recognized by the Government of India as a Three Star Export House and the Overall performance in terms of MOU: 2005-06 signed by it with the Government of India has been rated as 'Excellent' for the third year in succession.

During April-December 2006, the Corporation continued to earn improved rankings in terms of various surveys carried out by the press and multinational research companies. It ranked 1st consecutively for the second year as per Super 100 Companies study by Business India and 3rd among Trading Companies of the country by Dun & Bradstreet Information Services Pvt. Ltd.

Fresh initiatives proposed

With a view to effect further improvement in its turnover and profitability, the Corporation plans to undertake the following fresh initiatives/activities:

• Expansion of overseas steel operations, hitherto being undertaken in Philippines and Bulgaria, to Nigeria.
• Arrangement for production and supply of lightweight bulletproof vests for military and paramilitary forces and ballistic protection for vehicles.
• Entering into the field of bio-fuels.
• Venturing into import of rough diamonds for cutting and polishing for subsequent export.

Box 7.1 : Import of 55 Lakh tonnes of Wheat by STC

In order to control the spiralling domestic prices of wheat, STC was entrusted with import of 55 lakh tonnes of wheat from the global market. In a year when there was a drastic fall in the availability of wheat all over the world, with crops failing in almost all the major wheat producing countries, the task before the STC to procure this huge quantity of wheat was indeed herculean. The STC contracted for import of 55 lakh metric ton wheat valued at Rs. 5200 crore (approx.). While 50 lakh tones out of the contracted quantity has already reached Indian ports, the remaining quantity is scheduled to arrive, as contracted, by the end of February. The quantity of 55 lakh MTs was finalized by STC against five separate tenders which was issued in accordance with Government directions for meeting the requirement of central pool stocks. The impact of shortfall in production of wheat is reflected in the wheat prices which continuously increased from February, 2006 onwards. The wheat price index increased by 23 per cent between February, 2006 and September/October, 2006 (as circulated by International Grain Council). The freight market has also risen drastically by more than 50 per cent during the current year as per IGC freight index. Considering the increase in the global wheat prices and freight market, the imports by STC of such large quantities at very competitive prices has been widely appreciated.

III. Spices Trading Corporation Limited (STCL)

The STCL Limited 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. With a view to widen its marketing base from Cardamom to other range of spices, the Company obtained a fresh certificate of incorporation under the name of Spices Trading Corporation Limited with effect from August 1987. Thereafter, STCL became a subsidiary of The State Trading Corporation of India Limited with effect from 14.9.1999 and shares held by the Ministry of Commerce were transferred to the State Trading Corporation of India Limited.

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

Objectives

The main objectives of the Company are as under:

• To trade in spices, other agricultural commodities, Fertilizers, Pesticides in the domestic as well as global markets as well as establishing of processing units of international standards.
• To trade in all kinds of industrial goods, equipments, components and also the materials consumed by the Industries of Power and Energy.
• lTo make best use of financial strength of the Company and diversify into import/export of

commodities and ensure an efficient and streamlined system of operations, with minimum transaction costs.

• To develop core competitiveness in selected areas of exports and exploit 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.
• To support, protect, maintain, increase and promote production of Indian Spices and other Agricultural commodities as well as their sale/export.
• To create new infrastructure and make optimum utilization of infrastructure available with the Company.
• To strive to pay adequate returns to the parent company (The State Trading Corporation of India Limited).
• To fulfill Company's social responsibility by following ethical business practices and reinforcing commitment to customers, employees, partners and communities.
• To undertake on a continuous basis training/re-training of existing manpower and induct professionally qualified young talent so as to create a cadre of highly professional and motivated managers.
• 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 crore), divided into 5,00,000 equity shares of Rs. 100/- each (Five lakh equity shares of Rupees One hundred). The Paid up Share Capital of the Company as on today is Rs. 1,50,00,000/- (Rupees one crore fifty lakh) comprising of 1,50,000 equity shares.

Branches

The Company is having its Head office at Bangalore. The branches are located at Madikeri, Sakleshpur (Karnataka), Visakhapatnam, Tirupati (Andhra Pradesh), Kochi, Kumily, collection centres viz., Anavilasam, Pampupara, Vandanmettu, Nariampara, Parathode and Santhanpara (Kerala), Chennai, Bodinayakanur (Tamilnadu) to promote its trade as well as for rendering services to growers.

Human Resource

The Company had 44 regular employees on its rolls as on 31.12.2006 in addition to outsourcing the required manpower to meet the requirements. The Company has been giving adequate thrust in training and development of managerial skills. Employees of the Company, at all levels, are being continuously deputed to various training programmes. Besides, the Company is also continuing with its efforts to ensure that the employees are computer literate.

Managing Dircetor, STCL explaining about the Flavourit Brand Spice Products

at the 7th SAARC Trade Fair held at Karachi

Achieements

During the financial year 2005-06, the Company has achieved a turnover ofRs. 470.78 crore against previous year's turnover of Rs. 431.96 crore. The Company has consolidated its position and is poised to achieve the highest ever turnover of Rs. 1000 crore during 2006-07 in a competitive environment of liberalized trade and stiff competition. During 2005-06, the Company has exported commodities valued at Rs. 130.58 crore and also achieved a domestic sales turnover of Rs. 340.20 crore.
The details of actual achievements during 2005-06 and estimate for the year 2006-07 are briefly enumerated below:

Export Performance

During the year 2006-07, STCL would be achieving an export turnover of Rs. 511.00 crore by exporting spices, rice, pulses, sesame seeds, sugar, onion, ceramic tiles, iron ore, blast furnace granulated slag, non-ferrous metal scrap (3rd country trading), steel billets, etc. As on 31.12.2006, the Company has already made a steady progress and achieved a turnover of Rs. 376.00 crore against the targeted turnover of Rs.200.85 crore, thereby exceeding the annual target set out for 2006-07.

CMD, PEC Ltd. with Commerce Secretary signing MOU for the year 2006-07

IV. Projects and Equipment Corporation Limited (PEC)

The PEC Ltd. came into being on 21st April,1971 as a wholly owned subsidiary of STC. The PEC Limited has now become an independent Corporation under the Department of Commerce. Activities

l PEC was 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 & new markets.
• Diversification in export of non-engineering items e.g. coal & coke, iron ore, edible oils, steel scraps etc.
• Structuring counter trade/special trading arrangements for further exports.

Performance

The overall performance of the Corporation since 2004-05 is given below:

Items	2004-05	2005-06	2006-07		Estimate
			MOU Targets	Achievement Apr-Dec
Sales Turnover	5961.32	3725.43	*2550.00	**2553.20	***3350.00
Income	40.27	46.79	33.50	27.40	37.50
Expenditure	16.93	26.33	20.00	12.76	21.50
Profit before tax	23.34	20.68	13.50	14.64	16.00
Profit after tax	14.55	13.25	8.10	9.72	10.62
Dividend & Corporate tax	4.29	3.42	1.85	1.37	2.28
Equity	2.00	2.00	2.00	2.00	2.00
Reserves	62.82	72.65	74.57	81.00	80.99
Net Worth	64.82	74.65	76.57	83.00	82.99
* MOU Targets for Sales Turnover have been fixed for Non-Bullion trade only. ** Includes Bullion - Rs. 536.20 crore. *** Includes Bullion - Rs. 800.00 crore

Sales Turnover

The sales turnover of the Company since 2004-05 is given below:

Exports

The composition of exports since 2004-05 is given below:

Items	2004-05	2005-06	2006-07
			(up to December 2006)
Agro Commodities	559.08	138.64	68.62
Projects & Engineering	41.36	56.64	31.98
Defence Stores	66.39	22.77	15.87
Minerals	210.86	148.72	51.00
Steel	1.55	0.59	-
Others	2.14	15.27	17.88
Total	881.38	382.63	185.35

During 2005-06, PEC has consolidated the existing lines of business and diversified selectively into sustainable business areas. Transmission line and associated sub-station project worth Rs.57.3 crore in Suriname was successful and this paved the way for new opportunities in Suriname and the neighbouring countries. The contract for pre-fabricated steel structures for 400 housing units worth Rs.11.2 crore in Sierra Leone was also secured during the year. Steel sleepers worth Rs.7.22 crore were supplied to Iranian Railways. Other major exports were line hardware to Suriname and Bhutan, transformers to Syria, cement plant and tractors to Zambia, medical items to Madagascar, iron ore fines and ferro chrome to China, etc. PEC also exported wheat, rice and soya meal aggregating to Rs.138.64 crore. Third country export of rice was also undertaken during the year.

During 2006-07, the Corporation was successful to break into new markets by securing contracts for cement plant equipment in Benin and Ghana, defence stores to Turkey and Nigeria, H.T. steel wires to Syria, textiles to Europe, medical items to Sri Lanka, sugar to Indonesia, Yemen etc. The major items of export have been steel wires, cement plant, cables, iron ore, defence stores, rice, soyabean meal, sugar and other commodities etc.

Imports

During the year 2005-06, the Company achieved import turnover of Rs. 3184.43 crore as compared to Rs.4992.61 crore in the previous year. The composition of import along with the comparative figures since 2004-05 are given below:

Items	2004-05	2005-06	2006-07 (up to December 2006)
Bullion	3410.87	1399.89	536.20
Industrial Raw material	1160.69	1456.94	1104.10
Agro Commodities	252.55	271.14	526.64
Timber	28.68	25.24	1.82
Edible Oil	137.17	9.27	-
Others	2.65	21.95	26.28
Total	4992.61	3184.43	2195.04

Bullion imports during 2005-06 aggregate to Rs. 1399.89 crore. To cater to industrial demand, PEC undertook bulk import of coal, coke, steel scrap, zinc concentrate, chemicals, etc. Agricultural commodities like sugar, pulses, edible oils, jute etc. were also imported during the year. The major items of imports during 2006-07 have been bullion, industrial raw materials like coal & coke, chemicals, manganese ore, furnace oil, soda ash, ammonium nitrate, steel/steel scrap, agro commodities like wheat, edible oil, pulses etc.

Domestic Trade

During the 2005-06, domestic sales in cotton yarn, jute, steel billets, rapeseed, sugar and defence stores etc. aggregating to Rs.158.37 crore were undertaken. During April-December 2006-07, domestic sales in agro commodities (Rs.14.98 crore), industrial raw materials (Rs.85.09 crore) and others (Rs.72.74 crore) aggregated toRs.172.81 crore. The items of domestic trade during 2006-07 have been in cotton yarn, wheat, jute, steel, sub-station & transmission line, defence stores etc.

V. India Trade Promotion Organisation (ITPO)

The Trade Fair Authority of India (TFAI) and the Trade Development Authority (TDA) were merged together in 1992 and the new organization was renamed as India Trade Promotion Organisation (ITPO) which played a proactive role in catalyzing trade, investment and technology transfer processes. The ITPO is the premier trade promotion agency of India. It provides a broad spectrum of services to trade and industry so as to promote India's exports. With its Headquarter at Pragati Maidan, New Delhi and regional offices at Bangalore, Chennai, Kolkatta and Mumbai, the ITPO ensures representative participation of trade and industry from different regions of the country at its events in India and abroad. It also operates a network of overseas offices at Frankfurt (Germany), New York (USA), Tokyo (Japan), Moscow (Russia) and Sao Paulo (Brazil) in furtherance of its trade promotion objectives as also for enlisting participation and visitor response for its events.

Financial Highlights

During 2005-06, the ITPO's total income was Rs.171.52 crore as compared to Rs.139.92 crore in the previous year while the total expenditure was Rs.106.33 crore as against Rs.84.70 crore incurred during the previous year. The ITPO thus ended with a surplus of Rs.65.19 crore as compared to Rs.55.22 crore in the previous year.

Fairs in India

During 2006-07, the ITPO organized 26 Fairs (both national and international) in India. Large and small industries, exporters and manufacturers from various sectors of trade and industry displayed their exhibits/products at these events. These events were also utilized as launching pads for promoting their new products. Two new regional events namely Aahar International Food Fair and International Safety Security and Fire Exhibition were also held in Chennai and Bangalore respectively.

The 26th India International Trade Fair (IITF'2006) was held during 14-27 November 2006 at Pragati Maidan, New Delhi with the Theme: "Small and Medium Enterprises and Tourism". The Fair was inaugurated by Shri Pranab Mukherjee, Hon'ble Minister for External Affairs. At the Fair, China was the Partner Country, Thailand was the Focus Country, Andhra

View section of Aahar Fair 2006

Pradesh was the Partner State and Madhya Pradesh was the Focus State. At the national level, 27 States, 4 Union Territories, 13 Ministries/ Departments, 9 PSUs, 4 Commodity Boards, Banks and Insurance companies and about 7,500 companies have participated. The Fair was attended by over 3 million general visitors and 2,75,000 business visitors. Business delegations from 100 countries with 714 delegates also visited the Fair. Beside a seminar on Indo-Brazil cooperation (arranged by Embassy of Brazil) and a seminar on 'India Economy and Investment' for the visiting Japanese delegation, a number of seminars of topical interest were held during the Fair. "Exhibition News" containing all information about IITF'06 was also released daily during the Fair.

ITPO and Department of Scientific Industrial Research (DSIR) jointly put up a successful show "India Tech 2006", popularly known as "Technology Trade Pavilion" during IITF 2006 with 90 booths with the participation from about 65 R&D organizations and companies. With a view to facilitate the promotion of technology partnership between Indian entrepreneurs and others, a seminar was also organized which provided an opportunity to the exhibitors of 'India Tech 2006' to exchange views with the professionals and other government officials.

The 12th Edition of Tex-Styles India - a mega annual event focusing on Indian Textile Products was held during 1-4 March 2006 at Pragati Maidan, New Delhi where 378 companies exhibited various items of home furnishings. The event was visited by over 8,500 business visitors, 1533 overseas buyers and 936 buying agents of overseas companies based in India. Buyers from most of the developed countries like USA, Japan, UK, France, Germany, Italy, and Australia and also from Africa, Middle East and other Asian & Latin American countries also attended the show. Among the overseas buyers, there was a 60 member EU delegation. Meetings for the members of delegation were arranged with the participating companies for sourcing products as per their specific requirements. As part of the event, a seminar on "Indian Textiles - Global Opportunites and Threats" was organized on March 3, 2006 which was attended by a large number of participating companies. Presentations were made by experts from the USA, France, Japan and Germany covering various issues about threats and opportunities in the global market. The 13th Edition of Tex-Styles India is scheduled during February 27 - March 2, 2007.

With a view to showcase the progress made by the IT Industry, the "IT India Fair" was organized during December 15-18, 2005 at Pragati Maidan, New Delhi. In this Fair, 46 Indian companies displayed a variety of products. The third edition of the Fair: "IT India 2007" is scheduled to be held during January 30 - February 02, 2007.

The ITPO also leases its facilities in Pragati Maidan to organizers of trade events. During 2005-06, as many as 85 events were organized in Pragati Maidan by Export Promotion Bodies/Apex Industries Associations/Central Ministries as well as private fair organizers. During April-November 2006, as many as 41 events were organized and 30 exhibitions are scheduled to be held by the organizers of trade events during the remaining period of the year 2006-07.

During April-December 2006-07, the ITPO also approved 150 international exhibitions to be held in different parts of the country. These events cover a wide range of subjects like engineering goods, telecommunications, electricals and electronics, chemicals, pharmaceuticals, food processing etc.

All the Exhibition Halls in Pragati Maidan have been equipped with wired and wireless internet services for the benefit of exhibitors and visitors. The service henceforth is available on demand at reasonable cost. For this purpose, ITPO has entered into a contract with Videsh Sanchar Nigam Ltd.

Fairs Abroad

During the 2005-06, the ITPO organized the participation in 58 Overseas Trade Fairs (17 General Fairs, 38 Specialised Fairs and 3 India Shows in Tokyo, Osaka and Baku). Out of these, 21 events were held in Europe, 11 events in Africa and Middle East region, 4 events in Latin America, 12 events in South East Asia including Far East, 8 events in USA and 2 events in CIS region.

During the 2006-07, the ITPO's programme of foreign fairs include participation in 53 overseas trade fairs including 5 exclusive India Shows in Tokyo, Osaka, Sao Paulo (Brazil), Melbourne (Australia), Port Louis (Mauritius). Out of these, 15 events will be in Europe, 9 events in Africa and Middle East region, 7 events in Latin America, 14 events in South East Asia including Far East, 6 events in USA and 2 events in CIS region. During April-November 2006-07, ITPO has already organized participation in 32 Fairs abroad out of which 9 were general fairs, 21 specialised fairs and 2 India shows.

Trade Development Activities

During the 2006-07, two Buyer-Seller Meets were organized namely the "17th India Home Furnishing Fair" and the "27th India Garment Fair" in Japan. These events together generated enquiries worth US$ 18.03 million and orders booked were worth US$ 5.81 million. These meets were attended by a large number of buyers from leading departmental stores, wholesalers, importers, trading houses, etc. Another exclusive "India Fair" in Melbourne (Australia) is proposed to be held during March 29 - April 1, 2007.

During April-November 2006-07, visits of 14 foreign delegations/buyers from Japan, Australia, UAE, Singapore, Hong Kong and USA were coordinated. During these visits, One to one meetings were organized with the Indian manufacturers/exporters pertaining to textiles, garments & fabrics and jewellery, IT and software, chemical, non-conventional energy, LCD mobile and laundry machine & equipment.

ITPO is networking with International organizations in the field of trade and commerce through membership or collaborative arrangements such as Memorandum of Understanding. The ITPO is a member of "Asia Trade Promotion Forum" (ATPF) and participates in its Annual Meet regularly. Under ATPF exchange programme, the ITPO participated in a Capacity Building Initiative Programme (CBIP).

Trade Information

During 2005-06, the ITPO organized 8 Catalogue Shows at Nairobi (Kenya), Zagreb (Croatia), Thessalonica (Greece), Johannesburg (South Africa), Damascus (Syria), Tehran (Iran), Panama City (Panama) and Cairo (Egypt).

Till November 2006, two Product Promotion Programmes (PPPs) were implemented in respect of home furnishings in USA & Canada and ready made garments (RMG) in Germany and Netherlands. The PPP for leather goods and garments in Germany and Spain and for home furnishings in Australia and New Zealand are proposed to be implemented during 2006-07.

During 2005-06, as many as 1305 periodicals, 61 publications including trade directories and 63 CD-Roms were received in the Trade Information Centre. During the first eight months of 2006-07, 695 periodicals, 90 publications including trade directories and 60 CD Roms were added in the Centre. Besides these, 52 issues of Indian Export Bulletin were brought out and mailed to members and various export promotion organisations. The ITPO has, as on November 2006, had 2599 Associate Member subscribers.

Business Information Centre (BIC)

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 account for more than 85 per cent of India's trade. The Portal covers, among others, a data base of 52,013 overseas importers; 15,626 Indian exporters and 3,120 ITPO members; product profiles and country profiles; Fairs and Exhibitions, India's trade statistics, global trade statistics, EXIM Policy; Notifications and circulars of the 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. About 340 visitors access the Portal daily. The ITPO also has a Physical and Electronic Library located at Hall No.19 at Pragati Maidan which is visited by over 2200 visitors. Besides, a Payment Gateway facility is in operation to facilitate Indian exporters to become Associate Members online. The BIC also 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) and Global Trade Information Systems (GTIS) - international trade statistics at 8 digit levels for Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Portugal, Spain, China, Japan, USA and Australia.

Setting up of Regional Trade Centres

The ITPO is providing assistance to State Governments in setting up of Regional Trade Promotion Centres (RTPCs) for creating Export Infrastructure in State Capitals and major cities.

A Joint Venture Company called the Tamil Nadu Trade Promotion Organisation (TNTPO) was set up in 2001. This project is a joint initiative of ITPO and Tamil Nadu Industrial Development Corporation (TIDCO), Chennai. A modern Convention Centre with seating capacity for 2000 persons is also in operation in Chennai Trade Centre since November, 2004.

Convention Centre at Chennai

The Trade Centre at Bangalore was set up in 2004 and is managed by a Joint Venture Company called the Karnataka Trade Promotion Organisation (KTPO). This is a joint venture of ITPO and Karnataka Industrial Area Development Board (KIADB). A 5000 sq.mtrs Hall has been initially set up and is fully operational to mark the first phase of development of Bangalore Trade Centre. The commissioning of this Centre has provided added impetus to trade promotion activities in the Southern Region. Various trade events are being held in this Centre.

A project of establishment of a Convention and Trade Centre at Bhopal (MP) is under consideration. Another project of Trade Centre at Guwahati for developing trade from North Eastern Region is also likely to be completed and become operational from the year 2007-08.

Commercial Publicity & Public Relations

During the year, ITPO made appropriate and focused large publicity arrangements through print, electronic and internet media to mobilize participation as well as promote its various events in India and abroad and other activities. This publicity campaign was supplemented with brochures, invitation mailers, posters, fair catalogues and outdoor media campaigns.

ITPO's various activities and exhibition infrastructure were highlighted in the Calendar of Events which also listed ITPO's programme of events in India and abroad. The Calendar was mailed to its target audience comprising trade and industry associations in India and abroad, overseas missions in India and Indian Missions abroad, nodal industry organizations in different States.

The ITPO also brought out a quarterly newsletter 'Log On' for disseminating information relating to its activities on trade and industry in India and overseas. As part of corporate publicity efforts, advertorials were brought out in publications highlighting ITPO's promotional role in appropriate perspective.

Infrastructure

During the year 2006-07, ITPO has undertaken the following modernization/ upgradation activities at Pragati Maidan:

• Providing of Steel Gate No.10 behind Hall No.12, 12A to facilitate the visitors coming from Metro Station.
• Construction of additional Toilet Block at Hall No. 6.
• Providing of PORTA CABIN for scanner machine at Gate No. 7.
• Providing railing at central verge of Mathura Road and Bhairon Marg to ensure smooth traffic.