World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: International traffic to and from India is as follows:

Year	International traffic to/from India
2003 04	14,628,355
2004 05	17,266,915
2005 06	20,165,244
2006 07	23,371,684
2007 08	27,173,186
2008 09	28,933,903
2009 10	32,075,654

TRADE POLICIES BY SECTOR / 3) Services / iv) transport c) Land Transport, Rail Transport

Mexico 10:

Paragraph 176 states that in order to address the deficiencies in infrastructure, in 2009, the Government launched Vision 2020 to extend and modernize fixed rail infrastructure and rolling stock, improve freight and passengers (eg through corridors reserved for freight and high speed corridors), and improve equipment reliability to eliminate accidents and failures. Vision 2020 will be financed by public and private funds. The objective of Vision 2020 is to improve the connection between the railways and the major ports in India, so that by 2020 about 50 per cent of total cargo in India is carried by rail.

Qn. Mexico wants to know how to obtain more details on the progress in infrastructure connecting major cities with major seaports in the framework of the "Vision 2020".

Reply: Vision 2020 was prepared by Indian Railways to chalk out a road map for future. The work has already started to provide connectivity to major ports, cities and to ease out congested routes. Many works have already been sanctioned and are in progress. More works will be proposed in the years to come subject to feasibility and availability of resources. Seven port connectivity projects are already in progress for various ports on eastern and western coasts of India. Six projects of private port connectivity are likely to be taken up in future under PPP initiatives. These projects are also on eastern and western coasts of India. The work of dedicated freight corridor is also going on and is likely to be completed by 2017. The dedicated freight corridors are being built on north to east and northwest alignment of Indian Railways. Similarly, prefeasibility studies for high speed passenger corridors are going on for six projects on Indian Railways.

Mexico 11:

In Paragraph 179, states that since 2007 India has allowed 'authorized' operators to use the network of Indian Railways to provide for transportation of goods in accordance with the Rules of Indian Railways (permission for the operation of trains containers in the Indian Railways) in 2006, which allows private companies to use licensed container trains on the railway network for both domestic traffic and for import or export. Companies must register as Indian companies under the Companies Act 1956 and have a minimum annual turnover (1.000 crore) before applying for a license.

Qn. Mexico seeks more details on the definition of 'authorized or permitted' companies and wants to know if a foreign company can use the network of Indian Railways, to provide transport of goods, after constituting a company in accordance with the provisions of the Companies Act 1956 in partnership as a Joint Venture with other companies in India, or its wholly owned subsidiaries?

Reply: As per the provisions of Indian Railways (permission for operators to move container trains on Indian Railways) Rules, 2006, any person individual or a joint venture or a company registered under the Companies Act, 1956 shall be eligible to obtain the permission to operate container trains under these rules. Further, the applicant shall have experience in any of the following activities, namely: transport, trade and commerce, infrastructure, handling of goods/cargo, port/land terminal operations, logistics, warehousing, manufacturing and/or leasing.

Mexico 12:

In Paragraph 65 of section c) import quotas in 2010 India could impose quantitative restrictions by a notification in the Gazette of India, on import of goods that cause serious injury to the domestic industry as a result of safeguards investigations (section viii).

Qn. What is the impact or distortion of competition when such quantitative restrictions on imports are placed? What other measures are being considered to strengthen these sectors?