The Hindu Business Line : Pak cement imports via road route soon

Attari (Wagah border), Jan. 20 Cement imports through the Attari road route may finally commence in the coming months, with the Commerce Ministry resolving to bring about immediate improvements in infrastructure at the Attari Land Customs Station (LCS).

Although Pakistan allows export of cement to India by the road route, trade observers point out that no cement consignments are moving through the Attari road route due to infrastructure constraints like absence of parking facilities and modern security scanning equipment for consignments on the Indian side.

Near-term improvement

With the Rs 90-crore integrated check-post project at Attari likely to be completed only by September 2009, there has been growing demand for infrastructure improvement in the near term.

Until six months ago, no imports into India were allowed through Wagah. Pakistan, however, allowed Afghanistan to export to India through the Wagah road route.

In the last six months, Wagah border has been opened up for cement imports from Pakistan into India. Since August 2007, 16 manufacturers have been given licence for selling cement in India. About 50,000 tonnes of cement has entered the country, largely through the rail route.

“One cannot wait for 18 months to see improvements here. In the near term, we will have to set up modern scanning facility so that cement consignments can come in through road. Moreover, there is no adequate space for parking of trucks carrying cement and this issue also has to be sorted out,” Mr Jairam Ramesh, Minister of State for Commerce, said.

Funding

Mr Ramesh told Business Line that funds from ASIDE (Assistance to States for Development of Export Infrastructure and allied activities) would be utilised for financing the modern scanning equipment at Attari LCS.

In 2006-07, Wagah LCS accounted for two per cent (Rs 167 crore) of exports to Pakistan. Bulk of exports to Pakistan goes by sea.

For India-Pakistan trade through road, Attari LCS (Wagah border on Indian side) has already been a notified route since November 1994 for trade in all goods on a permanent basis. In May 2005, Pakistan did notify this LCS for trade on a temporary basis for selected commodities like live animals, halal meats, onion, potato, tomato and garlic, which is still operative.