PM has agreed to amend Cabotage laws.

KOCHI: Prime Minister Manmohan Singh has promised to speed up the amendment to Cabotage law, chief minister Oommen Chandy said on Saturday. He was delivering the inaugural address at the opening of the Federation of Indian Export Organizations' (FIEO) Kerala chapter in Kochi.

Chandy said Manmohan Singh had made the promise when he called on the latter during his recent visit to Delhi.

An amendment in the Cabotage law will allow foreign ships to transport cargo between Indian ports. "The relaxation in the law will help to fully utilize the capacity of the International Container Transshipment Terminal ( ICTT) at Vallarpadam, and also increase the exports from Kerala. The state government has a clear vision on the development of infrastructure that can assist exports from the state," said Chandy.

"Today, a lot of our exports are going to small countries, which are then transshipped from there. It's possible to ship our exports from the Vallarpadam terminal. Kerala can also do bunkering -- supply of fuel -- to ships that pass through the route," said Abraham Chacko, executive director of Federal Bank.

Chacko also highlighted the fact that Africa is a promising market for entrepreneurs from Kerala. "Africa offers huge possibilities. India's exports to that continent is a little over Rs 40 billion while China's is over Rs 100 billion. The Reserve Bank of India has directed Indian banks to go overseas, to 42 odd countries in Africa and the former Soviet Union, because banks have to go where trade flows," Chacko said.

"FDI in retail is going to benefit Kerala because the logistics arms that will develop as a support system will help horticulture and other products which need cold chain and very good transportation systems," he added. K V Thomas, Union minister of state for consumer affairs, food and public distribution, Dr Anup K Pujari, director general of foreign trade (DGFT), Ajay Sahai, director general and chief executive officer of FIEO, M Rafeeque Ahmed, president FIEO and Harikrishnan R Nair, chairman of Cashew Export Promotion Council, were also present.

Oommen Chandy said the construction of Kochi Metro would be headed by Sreedharan. He added that attempts to kick up controversies in the name of the project would not yield any result

Source : articles.timesofindia.indiatimes.com