November - December 2011 The Indian Salt Manufacturers ...2011.pdf · The Indian Salt Manufacturers’ Association takes pleasure in bringing out the Journal in time; proving the

The Indian Salt Manufacturers' AssociationPremier Association of Indian Salt Manufacturers'

Branch Office: 604, Akik Building, Opp. Rajpath Club, S. G. Highway, Ahmedabad 380 005. Ph: 079-40031283 E-mail: [email protected], [email protected], Web: www.saltindia.org

Regd. Office: th51 - A, Mittal Chambers, 5 Floor, Nariman Point, Mumbai 400 021. Ph. +91-22-22021283

November - December 2011

SALT-INDIASALT-INDIA(An Official Journal of the Indian Salt Manufacturers' Association)

(Not for Sale. For circulation among Members only)

CONTENTS

Chapter Tittle Page

1. Editorial 1

2. Salt industry on the East Coast 5

3. Salt Production in Portugal 8

4. Industrial Safety and Hazard Management in Salt Industry 11

5. Salt Industry in Orissa 15

6. Sector-wise production of salt in India 20

7. Tuticorin Port: Some Facts 22

The Indian Salt Manufacturers’ Association takes pleasure in

bringing out the Journal in time; proving the adage “where there is

a will, there is a way”! We propose to keep up this tempo.

As the Members (and non-members too) are aware, there is a need

for a book on Solar Salt, which explains the various aspects of

production of salt by solar evaporation. There has never been a

book of this nature. ISMA has, therefore, decided to do the needful

and hopes to get such book brought out by January 2012, latest.

Secondly, ISMA is toying with the idea of organising a training

programme for salt pan workers, so as make them understand the

basics of salt production and quality aspects. We propose to get the

idea approved by the general body soon.

The fact that working in a salt field is tough and back-breaking is

known to everybody. Members may be aware of exaggerated

reports in the media in the past. Salt manufacturers are responsible

for the welfare of their workers and they should take all necessary

steps to prevent accidents and create safe working environment for

the workers.

In this context, this issue of the Journal carries a report on

Industrial Safety and Hazard Management in Salt Industry

commissioned by Technology Information Forecasting & Assessment

1. EDITORIAL

1

Chief Editor - R Mohan

Editors - H D Jhala- P R Dhruve

Council of the Government of India. The suggestions

made in the report are worth implementing in the

interests of the workers as well as the management.

In keeping with ISMA’s view that the Indian salt

producers have also to know about the salt industry

in other countries, the Journal has been carrying

brief accounts of salt industry in other countries. This

issue deals with salt industry in Portugal.

Kandla, Jakhau, Mundra, Pipavav in Gujarat and

Tuticorin in Tamilnadu are the chief salt exporting

Ports in India. This issue gives some facts about

Tuticorin Port for information of the members.

ISMA

ISMA had organized a ‘Sheh Milan’ for all members

at GHCL House, Ahmedabad on 25th Nov 2011. We

have also invited President / Secretary of local

Associations to discuss various issues related to Salt

industry. During this function, ISMA had facilitated all

the seniors and prominent individuals in Gujarat who

have contributed for growth and development of salt

industry, in presence of Salt Commissioner Of India,

Mr. M A Ansari, President and other ISMA members.

The following prominent salt manufacturers were

facilitated:

• Shri Rasikbhai Seth, Bharuch

• Shri Bharatbhai Kamdar, Jamnagar

• Shri Kumudbhai C Shah, Dhrangadhra

• Shri Krishnamurariji Agrawal, Dhrangadhra

• Shri Babubhai Pancholi, Halwad

• Shri Bachubhai Ahir, Kutch

• Shri Lekhraj Joshi, Morbi

• Shri Bathukbhai Patel, Morbi

• Shri D S Jhala, Jamnagar

• Shri M M Sand, Jamnagar

• Shri Nirubhai Kotecha, Jamnagar and,

• Shri Santoshbhai G Kamdar, Bhavnagar

ASSOCIATION ACTION

2 3

ISMA had also facilitated Mr. M A Ansari, who has

recently took over as Salt Commissioner at Salt

Commissionerate, Jaipur. During this occasion,

ISMA’s bi-monthly journal "Salt India” was also

released by Chief Guest Mr.M A Ansari, Salt

Commissioner of India. During the meeting, Mr. P N

Rao – President, ISMA, highlighted various issues

and requested all the senior members to extend their

valuable experience for growth of Salt Industry. He

has also thanked to Mr. R Mohan who had edited

excellently the ‘Salt India’ Journal.

Performance of solar salt works depends upon natural factors like the number of dry days available, rainfall, humidity etc., besides, of course, the source of brine. Although salt is produced all along the coast in India (except in the State of Kerala), the productivity and the quantum of salt produced are the highest in Gujarat and Tamilnadu. Even in Gujarat, the largest salt manufacturing State in India, the productivity is the highest in the Kutch-Saurashtra area as compared to Bhavnagar and South Gujarat, due to favourable climatic conditions. Similarly, on the East Coast, the production of salt is the highest in Tuticorin area where dry weather conditions prevail for almost 10 months of a year. This is supplemented by the availability of high density sub-soil brine, which, especially, the small-scale salt producers make use of.

As we move towards north along the East Coast, the weather conditions become not too conducive to salt production. Data on the frequency of occurrence of extreme events like cyclones, storms and depressions, shows that the districts in the states of Orissa and Andhra Pradesh are highly vulnerable than the other states.East Coast of India experiences both the North-East and South-West monsoons, resulting in drastic reduction of dry days available for salt production. The affected salt-producing districts are Krishna and East Godavari in Andhra Pradesh, Ganjam in Orissa and Midnapore in West Bengal. Added to this, the sea waters of the Bay of Bengal are diluted as major perennial rivers like Mahanadi, Godavari and Krishna empty into Bay of Bengal.

Another problem faced by the salt producers in some of the factories is the formation of sand bars, which close the mouths of the creeks that are linked to the sea. This phenomenon is observed in Naupada group of factories and Calingapatnam salt factory in Srikakulam district of Andhra Pradesh and Covelong salt factory of Tamilnadu and some others. Such sand bars prevent the flow of sea brine into the creeks even during high tides, starving the salt factories dependent on sea brine. Efforts of the Salt Department to find a permanent solution to this problem have proved futile on account of which the manufacturers are compelled to incur additional expenses to clear the sand bars, unless they have an alternative source of brine in the form of brine wells.

2. SALT INDUSTRY ON THE EAST COAST

4 5

If the above natural factors are enough, a large number of the salt producers along the East Coast fall in the small-scale category. Thus, in Andhra Pradesh, out of 3,769 salt manufacturing units, only 133 units belong to Categories 1 (above 100 acres) and 2 (above 10 acres). In Tamilnadu, out of 4,176 units, only 46 are above 100 acres each. Thus, a majority of salt manufacturing units in Andhra Pradesh and Tamilnadu fall under Category-4; that is units not exceeding 10 acres in extent each. The average area under this category of salt works is about 2 to 3 acres. This average is also on account of clubbing, for purposes of statistics, the earlier licensed units under this category and those which were earlier considered as ‘non-licensed’ units. In the former licensed sector, the average area of each unit under Category-4 will not exceed even one acre!

Structure of salt industry in Southern States

Average area of a Unit (acres)

State No. of units by category Area held (acres)

I II III IV I II III IV

Andhra Pradesh 26 94 13 3636 16390 3014 1612 8006

Tamilnadu 46 124 7 3999 32824 4625 975 12243

Orissa 6 20 4 14 2911 863 1353 49

West Bengal

7

40

1

--

1098 1470

137

..

(Category-III: Cooperative societies; Category-IV: Units up to 10 acres, including the former non-licensed sector units)

State Cat-I Cat-II Cat-III Cat-IV

Andhra Pradesh 630.38 32.06 124.00 2.20

Tamilnadu 713.57 37.30 139.29 3.06

Orissa

485.17

43.15

338.25

3.50

West Bengal 156.86 36.75 137.00 ..

(Source: Salt Commissioner, Government of India, Jaipur)

Production of iodised salt in southern states

State No. of iodisation plants installed

(excluding refineries)

Iodised salt production (‘000 tons)

2008-09 2009-10 2010-11

Andhra Pradesh

39

34.13

12.83

3.40

Tamilnadu

56

508.68

570.76

1163.70

Orissa

8

18.58

15.42

10.80

West Bengal 39 38.86 29.98 44.70

(Source: Salt Commissioner, Government of India, Jaipur)

A Salt vendor in Sierra Leone, Western AfricaThe salt is produced by the boiling method

6 7

The history of salt industry in Portugal dates back to the 10th century, when a Countess donated salt marshes to a Monastery. A century later, the Algarve region of Portugal was shipping salt across Europe.In the 15th and 16th centuries, salt helped make Portugal a global power. During the 18th century, Portugal was the major exporter of salt to Sweden, Spain and France. On an average, Portuguese salt made up almost half (46%) of Swedish salt imports between 1738 and 1790.

There are three main centres of salt production in Portugal where the production of salt is carried out on a commercial basis today; the eastern Algarve, Rio Maior and Aveiro in central Portugal.

There is nothing much to know about salt industry in Portugal in as much as the quantity of salt produced is small and salt is produced in a very traditional fashion around Castro Marim, Olhão and Faro, which are adjacent to the Atlantic Ocean. Sea water flows into small, specially created pools through channels where it evaporates until only salt crystals remain. The salt crystals are scooped up and laid on large drying trays before being stored in heaps and ready for sale

Salt production has greatly contributed for the economic development of Aveiro region, 220km from Lisbon. Salt extraction in Aveiro peaked in the 70’s with around 60,000 tonnes of yearly production. However, in recent years production has decreased significantly to about 1,000 tonnes per year, due to high cost of

maintenance of the salt ponds, cost of labour and the low value of salt in international markets. In addition, Aveiro salt industry is threatened by competition from companies in the Mediterranean that possess mechanised and more efficient means of production and offer salt cheap. These factors led to the abandoning of salt production activity to a great extent. The abandoned salt pans led to the deterioration of neighbouring ponds due to dust nuisance etc. Other problems include difficulty in forming cooperative society as the many producers own small parcels of land.

With all these difficulties there are still 11 units operating in Aveiro region (total of 36 ha), producing in 2006 a total of 874 tonnes or 1.14% of the national production. Lately, many salt ponds have been converted for fish aquaculture.

Castro Marim (East Algarve) is another salt production area supporting a large community of traditional salt artisans in Portugal. The salt pans represent 28% of the total 2,000 hectares of land under salt in Portugal. The only inland salt source in Portugal, located at Rio Maior in central Portugal, produces 1,500 tons of salt a year. The salt source is a 300,000-square-feet pit, fed by deep underground brine which is eight times saltier than sea water. A cooperative formed in 1979 has been extracting salt from this source. The brine is pumped to shallow compartments where it dries up over a few days, leaving a layer of salt. Only a small part of the work is done with the help of machinery, mainly lifting the salt from the pit.

8 9

3. Salt Production in Portugal

Portuguese salt workers diligently skim the delicate crystals that form on the top on the salt pan using wooden implements. This “Cream of the Salt Pan” floats on the surface for only a few hours and will fall to the bottom if left unattended. The resulting sea salt (Flor de Sal, also known in French as Fleur de Sel, meaning “the flower of salt”) is light and crumbly and contains all of the micronutrients naturally found in ocean water. Portuguese salt is noticeably whiter than the French salt, which is attributed to the climate and the care that is exercised in leaving the clay undisturbed at the bottom of the salt pans. No additional processing occurs from the time the salt is harvested and dried prior to being packaged for consumption. This salt adheres to the quality standards outlined by “Nature et Progress”, the equivalent to certified organic produce.

Owing to the decline of traditional salt production, a large number of saltpans in the Ria de Aveiro,Portugal, are currently abandoned and deteriorating. Consequently, salt production in Aveiro has declined sharply in recent decades (51,000 t in 1972, 25,000 t in 1982, 5,000 t in1992, 500 t in 2002) In 2007, of a total of 252salt pans, only a few remain active (4%) a few others had been converted to fish farming (18%). A recent survey showed that a large number of abandoned saltpan walls are in a deteriorated condition. Portugal produced 600,000 tons of salt in 2006.

Saltpans near Portimao, Algarve, Portugal

(Photos: Miguel RibeiroFernandes for The New York Times and www.waymarking.com/gallery/imge.aspx)

4. INDUSTRIAL SAFETY AND HAZARD MANAGEMENT IN SALT INDUSTRY

Workers employed in any industry, irrespective of whether it involves the use of machinery or hazardous substances

or not, often face occupational hazards. It becomes the responsibility of the management to take precautions to

ensure the safety of workers and equally so of the workers themselves to mind what they are touching or where

they are putting their next step. However, while neither acts knowingly nor neglects safety wilfully, accidents do

happen. Salt industry is no exception to this phenomenon.

The Technology Information, Forecasting & Assessment Council, an autonomous organization under the Department

of Science & Technology, Government of India had commissioned a study to focus on the industrial safety and

occupational hazard management in the salt industry. The findings of the study (Code No: TMS143) are available at

TIFAC’s website http://www.tifac.org.in/index.php?option=com_content&view=article&id=696&Itemid=205). The

study is based on published material and survey in which structured questionnaires were administered to various

salt manufactures, government bodies, research and academic institutes, associations etc., and personal interviews

and discussions with experts in the field.

1. Salt is produced in about 10,000 salt works in India, out of which only 481 Units have land area of more than

100 acres each. There are a high percentage of small scale units in the salt industry in India.

2. Almost 65% of the worker population employed in salt industry is working in Gujarat.

3. Over 90% of the workers are not educated above class 5; 96% of them are unskilled and almost 93% of

workers are employed through contractor.

4. Electric shock, contact with moving machine parts, falls and injury due to collapsing of salt heaps are major

type of accidents.

Summary of findings

10 11

5. The common ailments in the salt industry relate to eye, stomach, heat, skin, leg, kidney etc. However, there is

no scientific study to establish or deny a correlation of these ailments to work conditions.

Accidents in the salt industry occur due to one or more of the following factors:

(a) Human error or personal factors (b) Unsafe works practice,

(c) Plant and Equipment Factors (d) Environmental Factors, and

(e) Other Socio-economic Factors

The eye problems are caused by intense reflection of sun light from water surface and salt. Contact with saline

water causes different type of skin lesions and skin ailments like fungal infection in the feet and other parts of the

body, Allergic dermatitis, and Photo-dermatitis etc. It is estimated that more than 50% of the workers have suffered

from these problems at one point or another. The diseases are reversible with prolonged treatment if the subject is

isolated from the environment causing such ailments.

There are a number of Labour Laws which are meant to ensure safe work place for the workmen, social justice and

social security to the worker and his family. But, the organizations underestimate/ overlook hidden cost of an

accident. None of the salt units surveyed had accurate estimates of the cost incurred by them, although details of

expenses incurred for safety management were available.

Observing that it makes economic sense to prevent accidents rather than incur the cost of accidents, the study finds

that the present safety management practices are not to the desired level, with no clearly defined policy, safety

systems and supporting infrastructure in place. The expenditure on the safety of workers is scanty. The study also

finds that not all the workers are keen to use safety equipment on the plea that the equipment is uncomfortable.

The manufacturers are not keen to use equipment having ISI approval.

Recommendations

The study makes the following recommendations:

• Management should formulate safety policy and ensure compliance by suitable management control systems;

• Create increased awareness among the workers on the different hazards of the work place and action required

to be taken for safe working, including the necessity of using personal protection equipment, its proper usage,

upkeep and maintenance.

• Hazard awareness education has to be given at the time of inducting the workers and review the training

needs of the workers at regular intervals;

• Management representatives should be trained on aspects of accident prevention, assessment of hazards of

the work place;

• Fixed guards or interlocking guards or trip devices must be installed with various machines to minimise

incidents of accidents;

• Escape Breathing Apparatus provided in Bromine plants must be retested periodically and serviced to ensure

that it is functioning properly;

• As the Gum boots now in use get damaged very fast, modifications may be undertaken in the design and

material of shoes to make them suitable for the working conditions. Use of old tyres for the sole material or

wood may be examined.

• Medical health surveillance must be adopted by carrying out medical check-up at the time of induction of a

worker and at regular intervals. Records of such medical checks should be properly kept.

12 13

• Machine layout should be planned for providing easy access for maintenance, waste removal etc.

Housekeeping should allow sufficient space for material & worker movement.

• The living conditions of the workers need drastic improvement with respect to sanitation, drinking water,

proper housing etc.

• Mechanical means may be introduced to avoid manual lifting of heavy loads and where it is not feasible,

workplaces may be redesigned so as to minimize worker fatigue and posture problem. Workers engaged in

manual lifting loads waist support belt must be provided.

• Labour unions should play an active role in ensuring that the hazards of the workplace are minimized/

eliminated.

Finally, the report suggests that a scientific study on the incidence of occupational diseases in the Salt Industry

should be commissioned and the data updated on a regular basis. Based on the assessment of hazards,

standardization of Personal Protection Equipment presently being provided in salt units should be done. Salt

manufacturers to keep the above recommendations in view and take necessary steps as suggested ensuring the

safety of workers.

Orissa, with a coast line of about 480 km along the west of Bay of

Bengal, has been manufacturing Salt from time immemorial. Besides

salt produced by solar evaporation of sea water and sub-soil brines,

Orissa used to produce ponga salt, in which saline earth leeched by salt

water used to be filtered and boiled. This salt was noted for its

whiteness and was considered by many to be the best salt in India.

The ponga salt had a ready market in Bengal. Even the British in

Bengal needed large quantities of it for the manufacture of gunpowder.

There was time when Orissa produced ‘the finest salt in India’ (Salt

Experts Committee, 1950) and sent out as much as 30,000 tons of salt per year to Central India and Bengal. Even

up to 1860-61, production of salt in Balasore, Cuttack and Puri amounted to 97,000 tons per annum. But, when the

British banned the sale of Orissa salt in Bengal to help the Cheshire salt producers, salt industry in Orissa started

declining. On 1 November 1804 Orissa salt became a British monopoly. Private sale of salt was completely prohibited

and manufacture of salt by anyone other than the government was made illegal. An aggrieved Orissa declared in

February 1888, that tax on salt was "unjust."

Thus, salt Satyagraha started in Orissa much before Mahatma Gandhi undertook Dandi March in April 1930.Dr. Hare

Krishna Mahatab and others led the Salt Satyagraha in Orissa.One of the striking features of the movement in Orissa

was the participation of women and students. The movement was suspended after the Gandhi-Irwin Pact of 1931.

With the reorganisation of Orissa state and return of certain districts from Madras Presidency to Orissa, the salt

producing districts in the State now included Balasore, Cuttack, Puri and Ganjam.

Orissa and Salt Satyagraha

5. SALT INDUSTRY IN ORISSA

14 15

Production of salt in Orissa and efforts at improvement

Salt is manufactured in the coastal districts of Ganjam, Puri and Balasore by 4 cooperative societies besides 40 units

in the private sector. The private sector units comprise only 6 are Category-1 units (above 100 acres each) and 34

small units holding a total area of 912 acres. The following are the figures of production of salt in Orissa:

2008-09 .. 23,400 tons

2009-10 .. 30,000 tons

2010-11 .. 14,100 tons

Keen to develop salt industry, the State Government has drawn up schemes for providing assistance for

development of salt land, infrastructural facilities like constriction of storage godowns, office buildings, purchase of

pump-set & interest for greater credit flow etc.

The State Government also has sought the help of the Central Salt and Marine Chemical Research Institute of

Bhavnagar to assist in improving the quality and quantity of salt production in Orissa. The CSMCRI has since

initiated a survey to identify suitable lands, including the areas where old salt works once existed. As per the Annual

Report of the Salt Department for 2010-11, out of an extent of 5,176 acres, only 2,122 acres is being actually

worked.

Owing to adverse climatic conditions, the average production of salt in Orissa is about 10 tons per acre, which is far

lower compared to Tamilnadu, Gujarat and Rajasthan. In order to make the State self-sufficient in production of salt,

large tracts of lands totalling an area of 18,946 acres have been identified in Chandbali ( 2,993.05 ac.), Basudevapur

(4,503.23 ac.) , Soro (9,000 ac.) and Jaleswar(2,450.00 ac) Tehsils.The work of development of 90 acres land in

Goka salt factory has been commenced with Government assistance of Rs.18.00 lakh through SHG mode.

Iodised salt production

Government schemes

Purpose of assistance

According to studies, incidence of IDD is high in the southern part of the State with Malkangiri reporting almost 50%

goiter prevalence. While Rayagada, Ganjam, Gajapati and Koraput districts have also recorded high prevalence of

IDD, Dhenkanal and Angul have IDD prevalence rates of 30.2 per cent and 28.2 per cent respectively.

There are 8 salt iodisation units in Orissa, with an installed capacity of 78,000 tons/year. However, the State could

produce only 18,500 tons during 2008-09, 15,420 tons during 2009-10 and 10,800 tons during 2010-11. As the salt

produced in the State is not suitable for chemical industries, it is obvious that some salt is disposed of for human

consumption without iodisation or is supplied to other non-edible uses.

By its letter No.III-HCI-5/08-8466/I, BBSR Dated. 10.06.2009, the Industries Department in the Government of

Orissa has approved a scheme for extending financial assistance to salt Co-operative societies / Self Help Groups.

The following are the main provisions of the Scheme valid till 2011-12:

• Construction / renovation of office building/ godowns/ pump shed/ shed for vehicle, machineries etc. and

electrification thereof.

• Purchase of pumps and motors and other machineries and equipment required for supply of brine for

production of salt and purchase of tractors etc., required for production, transporting and marketing of salt.

• Digging of bore wells for sub-soil brine.

• Supply of machineries and equipment required for iodization of salt.

• Development and scientific realignment of salt field and Research and Development for improved methods of

salt production and recovery of by-products and other development activities.16 17

Eligibility

Financial Norms:

Assistance for Study Tours

Eligibility

Financial Norms

• Salt Coop. Society/ SHG should be engaged in Salt Production and registered under the Orissa Co-operative

Societies Act1962.

• Salt Coop. Societies/ SHGs shall have valid lease hold land/ own lands.

• A defunct Cooperative Society or one under liquidation is not eligible for assistance. However, the defunct

Coop. Societies can be assisted for revival, if the viability of revival proposal is certified by the concerned

General Manager,DIC/ Superintendent of Salt.

Govt. assistance will be limited to 90% of the total estimated cost and 10% shall be borne by the Coop. Society/

SHG along with any escalation in the cost.

Under a scheme formulated by the government, Salt workers/employees of a cooperative society and SHG are

eligible for assistance to meet expenses in undertaking study tour to acquire knowledge on best methods of salt

production.

A salt worker who is a member of a working Salt Coop. Society/ SHG and allotted with land for production of salt

and employees of Salt Coop. Society/ SHGs who are supervising the salt production will be eligible for assistance.

However, a salt worker who has discontinued manufacturing of salt continuously for 2 years or more will not be

eligible for assistance under the scheme.

• Actual bus/ taxi fare/ 2nd class sleeper train fare for to & fro journey, including local conveyance and Daily

allowance as applicable for grade-III/ Group “C” state Govt. employees;

• Accommodation charges not exceeding @ Rs.200/- per day per head for outside the state and @ Rs.100/- per

day per head for inside the state.

• Contingent expenses up to Rs.200 per head per visit, apart from fees paid to the institution/ organization

imparting training and documentation.

The Government of Orissa, Industries Department by its letter numberIII-HCI-6/07-1202/ I, Bhubaneswar, Dated,

the25th January 2008 has communicated Guidelines for the scheme Interest subsidy to salt co-operative societies

on working capital loan availed from Banks. The guidelines originally stipulated in G.O. No.1330dated.28.08.92 have

been extended for the period up to 2011-12.

The Scheme is meant to subsidize the interest burden to the extent of @4.5% on the interest charged by banks on

working capital loan required for preparation of field, construction of bunds, desalting of brine supply channels and

reservoirs. The assistance will be sanctioned subject to the following conditions;

• The society should have lease of land either from the State Govt. or from the Salt Commissioner and possess a

valid license from Salt Commissioner

• The Society should be a working society registered under Orissa State Co-operative Societies Act, 1962 and

having regular production and availing working capital loan from Commercial Banks and a valid Board.

• The Society should produce a copy of the resolution signed by the competent authority of the society to

receive financial assistance under the scheme.

• Defunct societies and societies under liquidation are not eligible for the grant

The subsidy will be released through General Manager, DIC / Manager (CI).

Interest Subsidy

18 19

6. SECTOR-WISE PRODUCTION OF SALT IN INDIA

Although a few Public Sector Undertakings are engaged in production of salt in India, the salt industry is dominated

by the Private sector. The following are the Public Sector units producing salt in India as on 31 March 2011.

While the Experimental Salt Farm of CSMCRI, Bhavnagar is not a commercial venture, the only successful Public

sector undertaking appears to be Tamilnadu Salt Corporation. One of the reasons for the TNSC’s success is due to

the fact that it has no competitors nearby. The Corporation has the added advantage of distributing its iodised salt

through the Public distribution system and double-fortified salt (Iron and Iodine) through the Noon Meal

Programme. The salt works of the Corporation is also closer to Chlor-Alkali industries in Andhra Pradesh.

State

Name of the Unit

Nature of the Undertaking

Area held (ac,)

Annual output

(Tons)

Andhra Pradesh

S.K. Salts, Pandraka,

Krishna district Joint Sector

991

2,330

Tamilnadu

Marthi Marine Industries Ltd, Covelong, Chengulput district

-do-

4,586

15,598

-do- Tamilnadu Salt Corporation, Valinokkam,

Ramanathapuram district

Public Sector 5,618 1,35,758

Gujarat Hindustan Salts Ltd.,Kharagoda, Surendranagar district

-do- 23,595 9,898

-do-

CSMCRI, Bhavnagar

300

-do-

..

Rajasthan

Sāmbhar Salts Ltd.,

Sāmbhar Lake

57,600

-do-

1,09,710

Himachal Pradesh

Hindustan Salts Ltd., Mandi

130

-do-

1,136

(Source: Annual Report, 2010-11, Salt Department, Jaipur)

Sector-wise production of Salt in India(In '000 tons)

Year Public Sector Private Sector

Cooperative Sector

Total

2008-09 331.60 16,963.50 1,856.10 19,151.20

2009-10

414.70

21,912.10

1,624.50 23,951.30

2010-11 274.50 17,014.30 1,321.30 18,610.10

(Source: Annual Report, 2010-11, Salt Department, Jaipur)

20 21

7. TUTICORIN PORT: SOME FACTS

Situated 600 km south of Chennai, Tuticorinport enjoys a unique

advantage by its strategic location close to the East-West international

sea route, barely 125 nautical miles from it. It is the first Indian port to

receive ISO 9002 Certification.

Offering round the clock services, Tuticorin port has been a centre for

maritime trade and pearl fishery for more than a century. The port has

an artificial deep-sea harbour with breakwaters of about 4 km long and

about 1.3 km wide. The harbour basin area is about 400 hectares with

approach channels of about 2.4 km length and 183 meters width. The

traffic handled by the port in 2003-04 was 14.7 million tonnes (1,500

ships). It has great potential to become a major hub port, with the deepening of inner (increasing the draught from

10.7 to 12.8metres) and outer harbours.

In fact, Tuticorin was a minor anchorage port as early as in 1868 and after Independence handled a variety of cargo

meant for Sri Lanka, Maldives etc. and the coastal regions of India. Following the construction of an all-weather

Port, on July 11, 1974, the newly constructed Tuticorin Port is one of the 10 major ports in India. The Tuticorin Port

Trust was constituted on 1st April 1979.

Tuticorin Port is an artificial deep-sea harbour formed with rubble mound type parallel breakwaters projecting into

the sea for about 4 km. The harbour basin extends to about 400 hectares of protected water area and is served by

an approach channel of 2400 metres length and 183 metres wide. The Port has 8 alongside berths and two shallow

berths for handling general cargo, besides two coal jetties and one oil jetty.

The Port

Salt Exports and Imports

Besides other commodities, Tuticorin Port handles imports and exports of salt. During the year 2009-10, the Port

received 25,280 tons of salt by road for export, which amounted to 0.49% of all the commodities received for

export. During 2010-11, the Port has exported 88,589 tons of salt up to September 2011.

According to the Annual Report of the Salt Department for 2010-11, the following quantities of salt were exported

from Tuticorin Port. Exports from other Ports are also given for information.

Tuticorin Port has been offering its open spaces outside the Port on 30 year lease for construction of warehouses.

According to a notification dated 28 June 2006, the Port invited applications for lease of land, subject to payment of

premium at 3,505 per square metre and security deposit equivalent to two years’ lease money.

There appears to be only one case of Tuticorin Port Trust land being leased out for salt manufacture. Land

measuring 262.80 was originally leased out to Mr. Mannar Iyer in 1943 for salt manufacture for a period of 25 years.

In 1946 the lease was transferred in the name of Tuticorin Salt and Marine Chemicals ltd. The lease was renewed in

Lands for salt manufacture

S.No.

Port

Quantity of salt exported (in ‘000 tons)

2008-09

1009-10

2010-11

1.

Jakhau

477.84

599.54

569.48

2.

Kandla

1,183.21

1,760.33

2,398.59

3.

Mundra

441.46

108.20

113.63

4.

Porbandar

..

31.29

0.10

5.

Sikka

..

..

33.80

6.

Pipavav

7.26

5.83

70.25

7. Tuticorin 49.96 68.44 358.07

Total 2,290.05 2,675.63 3,732.00

22 23

favour of TSMC for a further period of 25 years in 1968. When the lease was further renewed from 8 July 1993, the

Ministry of Transport, Government of India fixed the lease rent @ Rs.100 per acre.

In accordance with the policy guidelines for Land & water front management issued by the Government, the TPT

constituted a Committee under the Chairmanship of the Chairman (TPT) for fixing the revised lease rate to be

effective from 8 July 1998 onwards.

With a view to obtaining a guideline value of salt lands in and around Tuticorin before fixing the revised lease rate of

the port land allotted to the TSMC, the Committee asked the District Revenue Officer to submit his report. The latter

reported that the market rate (as on 7 December 2000) of the land in question was Rs.42,000/- per

acre(maximum).The principle to fix lease rent for any land is that the lease rent must be arrived at by calculating

annual return @12% on the market value of land and @18% on the development cost. For the year 1998, this rate

was reckoned at Rs.33, 600 per acre after allowing a discount @20%.

However, since the TPT had not made any investment for development of the land in question, only 12% annual

return on the market value of the land was considered fair. Accordingly, annual lease rent for the salt lands allotted

to the TSMC works out to Rs.5040/- per acre per annum (i.e., 12% of Rs.42,000/-) with effect from 8 July 1998.This

rate was considered reasonable compared with the lease rates for lands allotted for salt production by the KPT, Salt

Department, Tuticorin Ports’ scheduled lease rates for allotment of land for different purposes and the lease rates

calculated from the market value of land allotted to TSMC for Salt production etc.

It was also felt that it was not feasible to compare this rate with the TPT’s scheduled lease rates applicable for

developed lands while the land allotted to the TSMC was originally low and swampy, developed by the TSMC only for

the purpose of production of salt, a low value commodity.

The question of reasonableness of the lease rent fixed was thoroughly discussed in consultation with various

interests like the Chamber of Commerce, Salt Department, ISMA and others, besides the Tuticorin Port Trust.

In finalising the lease rent for TSMC, the Tariff Authority was aware that the Government guidelines do not prescribe

any formula for fixation of lease rent and that there was no uniformity in this respect across the Major Ports and

even some of the State Governments. It was noted that the Government of Kerala is reported to consider 10% of

the land value as the lease rent. The Visakhapatnam Port Trust has proposed to consider 6% of the land value as

lease rent while the Cochin Port Trust in a case relating to fixing of lease rent of land at Puthuvypuad opted a figure

of 3.33% of the land value.

While there was no uniform method available for working out the lease rent, the Tariff Authority observed that the

rate of return of 12% sought by the Tuticorin Port Trust could not be allowed without moderation. In the absence of

any guideline in this regard available on record (and, developing such a guideline at this stage will involve a detailed

Study which will unnecessarily delay the case under adjudication), it will be reasonable to adopt the maximum

return already proposed by one of the major port trusts i.e. Visakhapatnam Port Trust. That being so, for the

purpose of this analysis the return on market value of land is limited to 6%.

After taking into consideration the various views, the Tariff Authority for Major Ports, Government of India passed an

order on 27 August 2002 (Case No.TAMP/34/2001 –TPT) approving an annual lease rent of Rs.2016/- per acre for

the lands leased out toM/s Tuticorin Sale & Marine Chemicals Ltd. with retrospective effect from 8 July 1998 (6% of

the market value of Rs.33,600). This rate will be subject to the annual escalation clause stipulated in the concerned

lease Agreement. (Notifications. No. 179 dated 5 September 2002 of the Tariff Authority for Major Ports,

Government of India, New Delhi) (Available at http://tariffauthority.gov.in/htmldocs/orders/tuticorin/tpt-marine.PDF)

Schedule of Port Dues as notified udder G.No.147 dated 29 August 2008 of the Tuticorin Port Trust. The following

information is collected from the port’s website available at http://tariffauthority.gov.in/htmldocs/ORDERS/tuticorin/

SOR-TPTG147-9508.pdf.

Port Dues and other levies

24 25

Note:

1. The Pilotage fee prescribed above is subject to a minimum charge of Rs. 13,737.00 per ship in case of coastal vessel and US$ 526.80 per ship in case of foreign-going vessel.

2. Pilotage fee include services of the Port's pilot (s) for pilotage of vessels; and, provision of required number of tug/tugs, launch/s of adequate capacity for inward and outward movement and shifting of vessel for port convenience.

Berth Hire Charges

The following Table gives the Berth Hire charges levied by the Tuticorin Port Trust

Wharfage Charges:

Wharfage charges on bulk cargo are levied on the manifested tonnage of the vessels. In the case of export bulk cargo

Wharfage can be levied as declared in the EGM or with reference to the entire admitted quantity whichever is higher even if the

EGM quantity is declared less than the admitted quantity. In case of Import Cargo, Wharfage can belevied as declared in the

IGM or entire delivered quantity whichever is higher.

Salt (in bulk/bags) is charged at Rs.5 per M.T for Foreign Going vessels and Rs.3 for Coastal vessels in Zone-A and at Rs.4 and

Rs.2.40 per MT respectively in Zone-B.

PORT DUES

Particulars

Rate per GRT

Frequency of Payment in respect of the same vessel

Coastal Vessel (in Rs.)

Foreign gong

vessel (in US$)

Coastal Vessel Foreign going vessel

Ships/Steamers 5.25 0.2014

The due is payable once in

30 days

The due ispayable on

each entry into the portSailing Vessel 2.63 0.1007

PILOTAGE FEES

Size of vessel

Rate per GRT

Coastal Vessel (Rs.) Foreign-going vessel (US$)

Up to 10,000 GRT 7.11 0.2728

10,001-15,000 GRT 7.36 0.2822 15,001-20,000 GRT 7.62 0.2924 20,001-25,000 GRT 7.89 0.3027 26,001-30,000 GRT 8.16 0.3129 Above 30,001 GRT 8.43 0.3232

Particulars Rate per GRT per Hour or part thereof

Coastal Vessel (In Rs.)

Foreign going vessel

(US$) Up to and inclusive of 3,000 GRT

0.075 subject to a minimum of Rs.148.60

0.0029 subject to a minimum of US $ 5.6981

3,001 to 10,000 GRT 0.050 subject to a minimum of Rs.226.85

0.0019 subject to a minimum of US $ 8.70

10,001 to 15,000 GRT

0.065

0.0025

15,001 to 20,000 GRT

0.080

0.0031 20,001 to 25,000 GRT

0.110

0.0042

25,001 to 30,000 GRT

0.120

0.0046

30,001 GRT and above 0.130 0.0050

26 27

DEMURRAGE CHARGES

Free period:

3 days for import goods and 10 days for export goods. Free period for all exports except salvaged goods shall

commence from the actualdate of receipt of the goods in transit area at Zone A and Zone B.

Rs.18 per ton is charged for supply of labour from Tuticorin Cargo handling labour pool for cargo handling

operations.

Schedule of Demurrage Charges

Plantation of mangroves by

The Salt Commissioner Shri M A Ansari at

Dev Salt site during his visit to Maliya(M).

S.No Description Unit For Zone-A

Import

(Rs.) Export (Rs.)

1. For the first 6 days Per day per Wharfageunit

1.85 1.20

2. For the next 6 days -do- 3.00 2.35 3. Thereafter -do- 5.85 4.70

Maliya Taluka Salt Manufacturers Association (Maliya), welcomed Shri M A Ansari, Salt Commissioner to Maliya region. Seen from left Shri Bhojani, Mamlatdar (Maliya), Shri

DS Jhala (Chairman, Dev Salt), Shri M A Ansari (Salt Commissioner), Shri Ayub Abdula Mover (President) Maliya Salt Manufacturers Association.

28