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A project report on DLW export procedure to non railway customer by Anand kumar Tiwari


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A project report on DLW export procedure to non railway customer by Anand kumar Tiwari

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Transcript of "A project report on DLW export procedure to non railway customer by Anand kumar Tiwari"

  2. 2. ` ACKNOWLEDGMENTThis Project Report is a combined effort of many people who have contributed in their own ways inmaking this report effective and purposeful. In my report, I would like to take the opportunity ofthanking all those who have been instrumental in preparing this report.Firstly, I would like to thank Prof. Renu Luthra, Director GBS, and Mr. V.K Luthra, Director of CRCfor giving me an Opportunity to carry out this Project.I would like to thank, Prof. Dr. Anamika Pandey (Mentor) and my seniors who always there toguide and support me in my endeavor.I specially wish to thank Mr. N.K Sinha, S.E.E., D.L.W. Varanasi (Diesel Locomotive Works,Varanasi) for his valuable suggestions & continuous support.Last but not the least; I thank all the faculty members who helped me during the course of training. ANAND KUMAR TIIWARI 11PGDM/M007 GBS Classified - Internal use
  3. 3. ` PREFACEIt is great privilege for me to place this report before the reader. The report is concern about ‘DLWExport Procedure to Non Railway Customer.’ This report is presented in very simple &understanding language on the basis of Primary and Secondary data. ANAND KUMAR TIWARI 11PGDM/M007GBS Classified - Internal use
  4. 4. ` DeclarationI Anand Kumar Tiwari, Roll No. 11PGDM/M007, student of PGDM (Mkt.) of Galgotias BusinessSchool, Greater Noida, herby declare that my project report on “ DLW EXPORT PROCEDURETO NON RAILWAY CUSTOMER ” is an original and authenticated word done by me.I Further declare that it has not been submitted elsewhere by any person in any of the institutes forthe award of any degree or diploma.ANAND KUMAR TIWARI11PGDM/M007GBS Classified - Internal use
  6. 6. ` 12 ANNEXURE CHAPTER NO. 1 EXECUTIVE SUMMARYGBS Classified - Internal use
  7. 7. ` EXECUTIVE SUMMARYThe Subject of my project is “DLW Export Procedure to Non-Railway Customer”.Diesel Locomotive Works is a Production Unit of Indian Railways, manufacturing Diesel-electricLocomotives, Diesel Generating sets and their spares for Indian Railways, Non-RailwayCustomers and exports.This Project has been taken to know about In DLW, How all the activity of EXPORTPROCEDURE is done by RITES to their Non-Railway Customer. Usually in any Export Housemany steps are followed to export, Aim behind this project is know the General Procedure ofExport Trade that are adopt by Diesel Locomotive Works.The approach of research was survey and instrument used was questionnaire which was filled byamong departmental employees of company. Information gathered through interview anddiscussing with departmental members. Primary Data is used. After the study based on employee response it has been analyzed the entire employee are very well aware and satisfied with the facilities provided by the DLW. The response are quite objective in nature.At Conclusion, Very few improvement but important improvement is needed, which mentionedabove, is needed in welfare programmes, which make the employees more satisfied.GBS Classified - Internal use
  8. 8. ` CHAPTER No. 2 INTRODUCTIONGBS Classified - Internal use
  9. 9. `GBS Classified - Internal use
  10. 10. ` INTRODUCTION TO PROJECTDiesel electric locomotives were introduced on Indian Railways in 1950s to exploit their versatility, betterhauling capabilities, low maintenance requirements and overall cost advantage as compared to steamlocomotives. Diesel Locomotive Works (DLW) was established in 1961 in collaboration with M/s ALCO, USAin the ancient City of Varanasi to undertake indigenous manufacture of diesel electric locomotives for meetingincreasing transportation needs of Indian Railways. Over the years, DLWs production has progressively increased and it produced 267 locomotives, in theyear 2011-12 as against 4 locomotives in the first year of its production in 1963-64.ALCO locomotives are now almost fully indigenous. Through in house development efforts, the originalimported design has been made 7% more fuel-efficient and has also been successfully uprated to deliver about30% more power, increasing it from 2600 HP to 3300 HP.DLW is an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 Certified Organization coveringQuality, Environment, Health& Safety Management Systems. GBS Classified - Internal use
  11. 11. `Integrated Quality, Environment, Health and Safety PolicyDiesel Locomotive Works is a Production Unit of Indian Railways, manufacturing Diesel Electric Locomotives,Diesel Generating sets and their spares for Indian Railways, Non – Railway customers and exports.We are committed to achieve excellence by: • Continual improvement of Quality, Environment, Health and Safety performance at work place • Preventing pollution by all means including minimizing resource consumption and waste generation using cleaner technologies, material substitution and process changes • Preventing all injuries and loss of property including environmental performance through continuous safety inspections • Striving for compliance with all applicable Environmental and Health & Safety legislations • Striving for " Right first time" and safe working practices through systems improvement and training • Enhancing Customer Satisfaction through improvement in reliability and performance of products • Preventing all employees from occupational diseases and health hazardsWe shall:  Set objectives and targets, and periodically monitor their progress through internal audit and management review  Communicate Quality, Environment and Health & Safety policy to the employees and to make it available to the public on demand.  Periodically review our Quality, Environment and Health & Safety policy and management systems for continuing suitability, adequacy and effectiveness.Environment: GBS Classified - Internal use
  12. 12. `Sewage Treatment Plant (STP) :In-house STP treats domestic and industrial sewage of DLW township and workshop. The treated water is usedfor irrigation purpose in DLW township and nearby village farms. The digested sludge is sent to sludge dryingbeds, which is later used as manure. Methane gas mainly produced from the digester is collected in the gasholder and supplied to the canteen.Industrial Effluent Treatment Plant (IETP):IETP does the job of treatment of industrial effluent which mainlycontains oil and grease. The treated water is sent to nearby villages forfarming and kitchen gardening at DLW.Chromium Treatment Plant (CTP):CTP treats industrial effluent from Chrome Plating Shop. This hasvarying concentration of hexavalent chromium. This hexavalentchromium is converted into trivalent chromium in acidic condition andis precipitated for safe disposal.Safety:Safety of working personnel and of equipment is given prime importance in DLW. In compliance to statutoryrequirements all safety aspects are subjected to intensive periodic inspections. Four full time safety officers areengaged in the entire safety management of DLW including the function of overseeing compliance to all safetyregulations by Workshop personnel.Safety Features in DLW Include : GBS Classified - Internal use
  13. 13. ` • Fire fighting arrangements with suitably trained personnel and regular checks of fire hydrants and static tanks etc. • System of checking/periodic inspection of wire ropes and lifting tackles • System of inspecting pressure vessels/air reservoirs • Provision of safety Guards on machines and over travel protection of material handling equipments • Protection of equipments from short-circuiting • Safety awareness training programme for supervisors and workers • Periodic maintenance of machinery and plant • Mock drills of emergencies for checking of emergency preparednessResidential FacilitiesA total of 3641 staff quarters are provided in a well-maintained township that provides maintained and green,providing excellent and pollution free environment.Educational Facilities GBS Classified - Internal use
  14. 14. `There are 04 schools for Primary and Secondary Education, run by DLW administration where more than 2600students are being taught. 01 Post Graduate Girls College also exists in DLW premises. Besides 02 CentralSchools, 01 Sr. Secondary School (Private) and 01 Bal-Niketan (run by DLW Womens Welfare Orgainisation)are also running in DLW campus.Medical Facilities105 bedded well-equipped Railway Hospital, a Health Unit and aFirst-Aid post in workshop are functioning, taking comprehensivehealth care of around 20,000 employees and their family members.A Homeopathic and an Ayurvedic dispensary have also beenprovided.Institute/Community Centre etc.For various social needs of the staff Community Hall, Institutes, Barat Ghars, Kalyan Kendra, Rangshala andOfficers Club are functioning in DLW township.Cinema ClubFor recreation of the staff a Cinema Hall of around 700 capacity is functioning in DLW Township since 1967.Games and SportsFacilities for various games like Cricket, Hockey, Basketball,Badminton, Volley-ball, Football, Table tennis, Gymnastics, Athletics,Swimming, Golf, and Rifle Shooting have been provided for the staff.World class Swimming-Pool and well-developed Golf course are uniquefeatures. Inter Railway Tournaments are being regularly arranged inDLW premises.ORGANISATION OF RAILWAYS GBS Classified - Internal use
  15. 15. `DEFINITION OF RAILWAY“Railway” means a railway or any portion of a railway for the public carriage of passenger, animals or goodsand includes. (a) All land within the fences or other boundary marks indicating the limits of the land appurtenant to a railway; (b) All lines or rails, siding or branches worked over for the purpose of, or in connection with a railway; (c) All stations, office, warehouse, wharves, workshop, manufactures, fixed plant and machinery and other works constructed for the purpose of or in connection with a railway; (d) All ferries, ships, boats and rafts which are used on inland waters for the purpose of the traffic of a railway and belong to or are hired or worked by authority administering the railway.GROWTH OF RAILWAYS IN INDIAIN 1849, the first contract was given to EAST INDIAN RAILWAY COMPANY for the construction of arailway line for Calcutta towards Mirzapur. In the same year, another contract was made with the Great IndianPeninsula Company for the construction of another Railway line from Bombay to Kalyan.In pursuance of the contracts mentioned above, the first section from Bombay to Thane consisting of about 32kms. Was opened on 16th of April, 1853 and the other section from Howrah to Hooghly consisting of 35kms.Was opened on 22nd August, 1854. The construction of Railway line, since then, continued and by the end of1868, the Railway Kilometrage had increased to about 6043 kms.The great famine of 1878 stressed the need for further and rapid development of Railways, but due to paucity offunds, the Government had to resort to the company construction. The Indian States were also asked toundertake the construction of Railways in their own territories and these States constructed about 7500 kms. OfRailways.The railway lines were constructed at a faster pace after the advent of twentieth century and the railwaykilometrage increased from about 37130kms. In 1900 to about 51900kms. In 1913-1914 and now it exceeds60200 kms.In pursuance of recommendations by Railway Enquiry Committee of 1921, the management of Railways wastaken over by the Government and now all the Railways in India (except a couple of small branch line sections)are owned and managed by the State.RAILWAY ZONESFollowing are the different Zone of Indian Railways and their Headquarters: GBS Classified - Internal use
  16. 16. `NAME OF THE ZONE HEADQUARTERS1. CENTRAL MUMBAI2. EASTERN CALCUTTA3. NORTHERN NEW DELHI4. NORTH-EASTERN GORAKHPUR5. NORTH-EAST FRONTIER MALIGAON6. SOUTHREN CHENNAI7. SOUTH-EASTERN CALCUTTA8. WESTERN MUMBAI9. SOUTHERN CENTRAL SECUNDERABADRecently, six additional zones have been created by regrouping the existing nine zones:10. NORTH CENTRAL ALLAHABAD11. SOUTH WESTERN BANGALORE12. EAST CENTRAL HAJIPUR13. EAST COAST BHUBANESHWAR14. WEST CENTRAL JABALPUR15. NORTH WESTERN JAIPUR16.SOUTH WEST CENTRAL RAILWAY BILASPUR Organizational Set Up:DLW has a design and development office responsible for all engineering functions related to diesellocomotives. Equipped with extensive designing tools, this office provides service support to Zonal Railways /Diesel Locomotive Maintenance Sheds and Locomotive Overhauling Workshops. This office is also responsiblefor product development, vendor development and vendor approval. It also performs technical advisoryfunctions and coordination with RDSO/Railway Board on technical matters.Chief Design Engineer heads this office and is assisted by a team of technical experts.Functional Responsibilities:The functional responsibilities of Design and Development Office are:Design development of new locomotives, Import substitution /indigenous development of loco component,multi-sourcing, day-to-day design matters raised by diesel sheds and workshops, liaison with Research Designand Standards Organisation of Indian Railways, liaison with supply chain partners in respect of technicalmatters. Technical matters connected with Loco Standards Committee, Diesel Maintenance Group etc.,providing technical clarifications in respect of design/specifications & important tenders. Failure investigationsinto major assemblies/critical components.All design issues for Electrics and Bogie of EMD locomotives. Moreover, design upgradation of EMDlocomotives like power upgradation to 4500 BCV, incorporation of IGBT based technology, Distributed power; GBS Classified - Internal use
  17. 17. `Hotel Load, Development of twin cab WDG4 and development of 12 cylinder 3000 HP EMD locomotives withAC-DC traction are being dealt with by Design Office.Liaison with CQAM and RITES in respect of inspection and quality control standards.Details of Locomotive Exported (up to March2012)DLW has exported 105 locomotives to 11 countries. Details are as under: S.No. Country Types of locomotives Qty. 1. Vietnam YDM4, MG 25 2. Bangladesh YDM4, MG 10 WDM2,BG 13 3. Tanzania YDM4, MG 15 4. SriLanka WDM2, BG 08 12 Cyl., BG 05 5. PCCL, SriLanka WDM6, BG 01 6. Myanmar YDM4 1350 HP 11 7. Sudan VDM4, 1350 HP, CG 03 2300 HP, CG 05 8. Mali 2300 HP, MG 03 9. Angola VDM4, 1350 HP,CG 01 2300 HP, CG 02 10. Senegal YDM4, MG 01 11. Malaysia 2300 HP, MG 01 11. Mozambique 3100 HP, Cape Gauge 01 Total= 105Details of Locomotive supplied to Non Railway Customers (up to March2012) GBS Classified - Internal use
  18. 18. `DLW has supplied 395 locomotives to Indian NRCs up to March2012. Major Non-Railway Customers andlocomotives supplied to them are as under: S.No. Customers Name Types of Qty. Total locomotives 1. SAIL WDS6 180 181 WDG3A 01 2. VSP WDS6 33 33 3. NTPC WDS6 15 WDM2 42 88 WDG3A 31 4. Port Trusts WDS6 29 36 WDG3A 07 5. State Electricity Boards WDM2 11 21 WDS6 10 6. Others WDS6 30 WDG3A 05 36 YDM4 01 Total= 395 GBS Classified - Internal use
  19. 19. ` OBJECTIVE OF PROJECT• To know who is our Non railway customer.• To know what is the procedure of export.• To know what is the document need.• To know what is the annual turnover.• To know How far dlw is from their competitors. GBS Classified - Internal use
  20. 20. ` CHAPTER NO.3 PROFILE OF THE COMPANY ABOUT COMPANY “DIESEL LOCOMOTIVE WORK” Varanasi, one of the oldest populated cities in the world and has a promising place in the internationalground both as a hub of traditions and technology. One side the humming of divine and holy bells of thetemples brings the city to life; on other side Diesel Locomotive Works (DLW) Varanasi is one of the largest GBS Classified - Internal use
  21. 21. `industrial units in eastern part of the nation. DLW catch the attention of lot of foreign tourist students toobserve on going amazing locomotive manufacturing process in Varanasi. Diesel Locomotive works Varanasi islocated at the North end of the city and about 8 Km away from the Holy River Ganges Ghats. DLW is an ISO 9002, ISO 14001 & OHS 18001 Certified Organization of diesel electric locomotive. Diesel Locomotive Works, Varanasi (DLW) is one of the main manufacturing units run by the IndianRailways. This manufacturing unit came into existence in year 1961, as a “Green Field Project” in industrialassociation with ALCO, USA. This unit generates all the Diesel Electric Locomotives. In year 1964, the firstlocomotive was manufactured and it was devoted to the country. Diesel Locomotive Works, Varanasi producesonly Electric Diesel locomotives and auxiliary parts of locomotives. Though it is an Indian corporation but it has supplied locomotives to some foreign countries also,includes Angola, Bangladesh, Malaysia, Myanmar, Sri Lanka, Vietnam, Tanzania, Sudan, Mozambique etc.Diesel Locomotive manufacturing Works,Varanasi works in three main sections viz:- 1) Engine section 2) Vehicle section and 3) Block section1) Engine section manufactures more than 2000 machinery, which comprises of ALCO turbo superchargers,cylinder heads, connecting rods, camshafts, lubricating oil pumps, chrome plated cylinder liners and manydifferent types of gears.2) Vehicle section of DLW unit works on different fields that include Bogie Manufacturing, ComponentFabrication, Locomotive Assembly, under frame Fabrication, and many more. Currently, Diesel Locomotive Works, Varanasi manufactures locomotives , DG sets. In locomotivessection, again it manufactures two different types of products, one is EMD and an other is ALCO. BRIEF HISTORY OF DLW Welcome to Diesel Locomotive Works, Varanasi An ISO 9001, ISO 14001 & OHS 18001 Certified Organization. August 1961 DLW set up as a green field project in technical collaboration with ALCO, USA for manufacture of Diesel Electric Locomotives January 1964 First Broad Gauge Locomotive (WDM-2) released by (Late) Shri Lal Bahadur Shastri. First Locomotive rolled out and dedicated to GBS Classified - Internal use
  22. 22. ` the NationNovember 1968 First Meter Gauge Locomotive (WDM-4) released by (Late) Shri Morarji Desai.February 1975 First Broad Gauge shunting Locomotive (WDS-6) turned out.January 1976 First Locomotive rolled out and dedicated to the Nation. Locos Exported to TanzaniaDecember 1977 First Diesel Generating Set commissionedMay 1984 Locos Exported to VietnamAugust 1994 First 3100 HP WDM-2C Loco turned out.April 1995 First 2300 HP WDP-1 Passenger Loco turned out.July 1995 First 3100 HP WDG-2 Freight Loco turned out.December 1995 Locos Exported to Sri Lanka.April 1996 Locos Exported to Bangladesh.February 1997 Awarded ISO-9002 Certification.October 1997 Locos Exported to M/s Puttalam Cement Company, Sri Lanka.August 1998 First 3100 HP WDP-2C Passenger Loco turned out.March 1999 Highest out turn of 161 locos (amounting to 230 units)March 1999 4000th Locomotive turned out.August 1999 First PKW WDG-4 Locomotive turned out.March 2001 Awarded ISO-14001 Certification.March 2002 First DLW Built 4000 HP WDG-4 Freight Loco turned out.April 2002 First DLW Built 4000 HP WDG-4 Loco turned out.June 2002 First DLW Built 3300 HP WDG-3C Freight Loco turned out.December 2002 DLW certified for ISO: 9001: 14001.June 2005 2.4MW Diesel Generating set commissioned.September 2005 Certified by OHSAS- 18001: 1999.November 2006 First IGBT based WDG-4 Loco turned out.January 2007 5000th Locomotive turned out.November 2008 Locos Exported to Mozambique.March 2009 Highest out turn of 257 locomotive.November 2009 5690 locomotives up to 30th Nov2009(including 348 EMD locos)April 2010 Surpassing target of making 250 engines and Produced 258 locomotives.November 2011 DLW produced 267 locomotives in 2011.March 2012 DLW has been next given a target of 275 locomotives including 215 EMD rail engines. - The Diesel Locomotive Works (DLW) is all set to produce powerful 5500 HP locomotive and it is expected that the first prototype WDG5 loco come by February 2012. - It will be the most powerful diesel locomotive ever GBS Classified - Internal use
  23. 23. ` produced by the Indian Railway.GENERAL INFORMATION • Workshop Land 219.997 acre • Township Area 520.6 acre • Covered Area in Shop 26.37 acre • Covered area of other service building 19.13 acre • Total No. of Staff Quarters 3641 GBS Classified - Internal use
  24. 24. ` • Total No. of staff on roll (as on March2012) 5926 • No. of beds in Hospital 105 • Water consumption 223.82 Lakh Litres/dayElectrical Power Requirement • Electrical Energy Consumption 262.07 Lakh Unit / Year • Workshop 4200 KVA • Colony 2600 KW • Administrative Building 1500 KW • Stand by Power Generation Capacity 5625 KWMANAGEMENT TEAM  General Manager- Shri B.P. Khare  CEE- Shri R.J. Mehrotra  FA&CAO- Shri Atul Mohan  COS- Shri S.P Piplani  CME- Shri Rakesh Vatash  CPO- Shir L.B.RAI  CMS- Dr.Padam Singh  CE- Shri R.B Yadav  Secy. to GM/Dy GM- Shivendra MohanPRODUCTS AND MARKETEDM GBS Classified - Internal use
  25. 25. `WDG4 - 4000 HP GOODS LOCOMOTIVE Broad Gauge freight traffic Co-Co diesel electric locomotive with 16 Cylinder 4000 HP engine, AC-AC transmission, microprocessor controlled propulsion and braking with high traction high speed cast steeltrucks. First turned out in 1999 with transfer of technology from General Motor (USA), this locomotive hasexceptional fuel efficiency and very low maintenance requirements. It is specifically designed for heavy haulfreight traffic requirements of Indian Railways for the 21st Century. The heart of loco Traction Control Converter uses the GTO devices (obsolete technology). Now theIGBT devices, has been introduced from Oct 2006. It is the latest technology and will be cost effective andgives higher reliability. The locomotive power has been upgraded to 4500 BCV and the first Loco (Loco No 12114) wasmanufacturedin May 07 General Characteristic GBS Classified - Internal use
  26. 26. ` • Installed Power • 4000 HP • Axle Load • 21 T • Gauge • 1676 mm • Wheel arrangement • Co-Co • Wheel diameter • 1092 mm • Height • 4201 mm • Width • 3127 mm • Overall Length (Over Buffer Beam) • 19964 mm • Weight • 126 T • Max tractive effort • 54 T • Maximum speed • 100 Kmph • Fuel tank capacity • 6000 lts • Locomotive Control • EM 2000 with SIBAS-16 Traction Control WDG4-4000 HP GOODS LOCOMOTIVE TRACTIVE EFFORT & POWER CHARTALCO GBS Classified - Internal use
  27. 27. `2300 HP CAPE GAUGE LOCOMOTIVETECHNICAL INFORMATION2300 HP Main Line Locomotive, having fabricated cape gauge Co-Co bogies. These are provided with twodrivers cabs, one at each end. These locomotives have been supplied to Angola and Sudan. Wheel Arrangement Co-Co sTrack Gauge 1067 mm Cape Gauge Weight 102 t Overall Length 17620 mm Wheel Diameter 921 mm Gear Ratio 18 : 93 Maximum Speed 100 Kmph Diesel Engine Type: ALCO 251-B 12 Cyl. V- Engine HP 2300 Transmission Electrical AC/DC Brake IRAB-1 Loco Air, Dynamic, parking Train Air Fuel Tank Capacity 3000 Liters2300 HP METER GAUGE LOCOMOTIVE GBS Classified - Internal use
  28. 28. `TECHNICAL INFORMATION2300 HP Main Line Locomotive, having fabricated meter gauge Co-Co bogies. These are provided with twodrivers cabs, one at each end. These locos have been supplied to Malaysia, Senegal and Mali. Wheel Arrangement Co-Co Track Gauge 1000 mm Meter Gauge Weight 102 t Overall Length 17620 mm Wheel Diameter 921 mm Gear Ratio 18 : 93 Maximum Speed 100 Kmph Diesel Engine Type: ALCO 251-B 12 Cyl. V- Engine HP 2300 Transmission Electrical AC/DC Brake IRAB-1 Loco Air, Dynamic, parking Train Air Fuel Tank Capacity 3000 Liters GBS Classified - Internal use
  29. 29. `BROAD GAUGE MAIN LINE FREIGHT LOCOMOTIVEWDG 3ATECHNICAL INFORMATIONDiesel Electric main line, heavy duty goods service locomotive, with 16 cylinder ALCO engine and AC/DCtraction with micro processor controls. Wheel Arrangement Co-Co Track Gauge 1676 mm Weight 123 t Length over Buffers 19132 mm Wheel Diameter 1092 mm Gear Ratio 18 : 74 Min radius of Curvature 117 m Maximum Speed 105 Kmph Diesel Engine Type : 251 B,16 Cyl.- V HP 3100 Brake IRAB-1 Loco Air, Dynamic Train Air Fuel Tank Capacity 6000 liters GBS Classified - Internal use
  30. 30. `MARKETINGMarketing Division of DLW provides a single window service to our non-Railway customers. It deals with:■ Sale of locomotives and spares to Non Railway Customers■ Supply / Sale of DG sets and spares to Railways and Non Railway Customers■ Single window services to customers■ Export of locomotive through intermediaries like RITES and IRCON■ Availing of credit under MODVAT scheme. Settlement of warranty claims and addressing complaints■ Analysis of failure reports of NRC and Export locomotives and initiation of corrective and preventiveactions■ Payment of excise duty and CST /VAT on sale of excisable goods and settlement of disputed cases GBS Classified - Internal use
  31. 31. `Details of Locomotives Exported during last 5 years No of Export SN Period Horsepower Gauge Country Locos 1 2002-2003 10 2600 HP BG Vietnam 2 2003-2004 03 2600 HP BG Bangladesh 3 2005-2006 03 1350 HP Cape Gauge Sudan 4 2005-2006 11 1350 HP MG Myanmar 01 1350 HP Angola 5 2006-2007 02 2300 HP Cape Gauge Angola 05 2300 HP Sudan 03 2300 HP Mali 6 2007-2008 MG 01 2300 HP Senegal 7 2008-2009 01 3000 HP Cape Gauge Mozambique YDM-4 8 2009-2010 03 Dan Cross Mozambique 6374 YDM-4 9 2010-2011 04 Cape Gauge Mozambique 6706 GBS Classified - Internal use
  32. 32. ` VISION & MISSIONVision & Mission Our Vision -”To be a world class manufacturer of Diesel - electric locomotives." Our Mission - "We shall achieve our vision through Continuous Improvement in the areas of Product Quality, Research and Development, Supplier Partnership, Human Resource Development and Team Work with emphasis on Core Competence leading to Customer Satisfaction and Business Excellence." GBS Classified - Internal use
  33. 33. ` CHAPTER NO. 4 MARKETING DEPARTMENT IN DLWMarketing Division was set up at DLW in August 1987 for sales and after sales service of locomotives to Non-Railway Customers. With the setting of this organization it has been possible to provide single window serviceto Non-Railway Customer for all activity connected with sale of locomotives, DG Sets and Spares. GBS Classified - Internal use
  34. 34. `The marketing Division maintains close liaison with different Non-Railway Customers. The formation ofMarketing Division has greatly helped Non-Railway Customer in improving availability of spares &maintenance of locomotives.Marketing Division is also responsible for submitting offers & following up cases of sales of locomotive &spares to NRCs and Export of locomotive & spares through agencies like RITES and IRCON. It is also thenodal department at DLW for DG sets.DLW is registered with Engineering Export Promotion Council & can thus participate in Deemed Export ordersdirectly and claim export benefits. For export order the demand is met through RITES/IRCON depending on thecountry of export. Supply of Locomotive & Spares to Non-Railway Customer & ExportDuring the year 2010-11 DLW supplied 395 locomotives to Non-Railway Customers in India & 1 cape gauge3000 HP, locomotive to Mozambique through RITES.DLW has so far supplied 395 locomotives to different Non-Railway Customers in India and 105 Locomotivesexported to Countries like TANZANIYA, SRI LANKA, BANGLADESH, VIETNAM, MALAYSIA,MYANMAR, ANGOLA, SENEGAL, MALI, SUDAN, & MOZAMBIQUE. SPARESDuring the year 2010-11 spares parts worth Rs. 10.61 crore were supplied to Non-Railway Custo mer in Indiaas well as Export. GBS Classified - Internal use
  35. 35. ` CHAPTER No. 5 EXPORT PROCEDURE INDLW GBS Classified - Internal use
  36. 36. ` EXPORT PROCEDURE IN DLW ABOUT RITESRITES Ltd., a Government of India Enterprise was established in 1974, under the aegis of Indian Railways.RITES are incorporated in India as a Public Limited Company under the Companies Act, 1956 and aregoverned by a Board of Directors which includes persons of eminence from various sectors of engineering andmanagement.RITES Ltd., an ISO 9001-2000 company, is a multi-disciplinary consultancy organization in the fields oftransport, infrastructure and related technologies. It provides a comprehensive array of services under a singleroof and believes n transfer of technology to client organizations. In overseas projects, RITES actively pursuesand develops cooperative links with local consultants / firms, as means of maximum utilization of localresources and as an effective instrument of sharing its expertise.RITES are internationally recognized as a leading consultant with operational experience of 62 countries inAfrica, South East Asia, Middle East and Latin America. Most of RITES foreign assignments are for NationalGovernments and other apex organizations. SERVICES BY RITES • Facilities Planning for Rolling Stock Maintenance • Technical Assistance for Workshop Modernization • Supply & Commissioning of Workshop Machinery and Plant • Supply, Commissioning and Maintenance of Locomotives & Rolling Stock • Leasing of Locomotives and Passenger Coaches • Supply of Spares • Supply of Signaling Equipment • Rehabilitation of Locomotives and Wagons • Rehabilitation of Traction Machines & Railway Bridges GBS Classified - Internal use
  37. 37. ` RITES ROLE IN DLWIn DLW, RITES is the representative of Export Division in Marketing Department. Through RITES all the locoare Exported.DLW is only the manufacture of loco, but the procedure of sending loco from DLW to another country is doneby RITES Ltd. The conclusion is that all the Procedure of Export is done by RITES Ltd. On the behalf of DLW.DLW provides free service to NRC and export locomotives up to warranty period and thereafter suppliesspare parts and technical support on payment basis.For Indian customers DLW directly deals with through marketing wing.And For export locomotives, DLW deals through RITES ltd.CONTRACT BETWEEN RITES & DLWAs we know that DLW has done export through RITES ltd. For maintaining this relationship, time to time asper requirement a contract made, name as BACK TO BACK CONTRACT between both the organizations.This contract updates the relationship between RITES & DLW legally. It’s also include the related informationabout loco and export procedure for further process GBS Classified - Internal use
  38. 38. `DETAILED OF EXPORTED LOCO IN DLW DLW built Locomotives have been successfully exported to all this country as mention above with their no. & HP.: SN PERIOD NO. OF HORSEPOWER COUNTRY EXPORT 1 2002-03 10 1350 HP Vietnam 2 2003-04 03 2600 HP Bangladesh 3 2004-05 03 1350 HP Sudan 4 2005-06 11 1350 HP Myanmar 5 2006-07 01 1350 HP Angola 02 2300 HP Angola 05 2300 HP Sudan 6 2007-08 03 2300 HP Mali 01 2300 HP Senegal 7 2008-09 01 3000 HP Mozambique 8 2009-10 03 3000HP Mozambique 9 2010-11 04 3500HP MozambiqueAt INTERNATIONAL LEVEL the main competitors of DLW (Asia Largest manufacturing of Locomotive) areCHINA, JAPAN, GBS Classified - Internal use
  39. 39. ` GENERAL PROCODURE OF EXPORT NOTE: In DLW, all the activity of EXPORT is done by the RITES LTD. GENERAL PROCEDURE OF EXPORT TRADEUsually in any Export House following steps are followed to exportThe goods. These steps are:- • Receipt of Enquiry and sending Quotation. • Receipt of order or indent • Assessing Importer’s credit worthiness and securing a guarantee • Obtaining Export License • Obtaining Pre-finance License • Production or Procurement of goods • Pre Shipment Inspection • Excise Clearance • Obtaining Certificate of Origin • Reservation of shipping space • Preparation of Invoice • Packing and Forwarding • Insurance of Goods • Custom Clearance GBS Classified - Internal use
  40. 40. ` • Obtaining Mate’s receipt • Payment of Freight & Insurance of Bill of Lading • Securing PaymentEXPORT PROCEDURE IN SEVERAL STEPSSTAGE 1: Customer Search and Receiving of OrderThis work is assigned to the marketing persons of the company (RITES) theyEstablish the relationship with customer. Usually the company getsThe order in three ways:-  Through Personal Visit:  Through International Trade Fair & Exhibition  Through Internet  Through Global TenderSTAGE 2: ORDER IMPLEMENTEDOnce the order has been received, the export order is scrutinized with reference to the terms and condition of theexport contract. This is the most crucial stage of any export process. All subsequent action and reaction willdepend on the terms and condition of the export contract. It is ensured that contract has been entered into inaccordance with the prevalent export policies of the country and foreign exchange regulations like FERA,FEMA. The export order must specify the mode of payments such as: • Letter of Credit [L/C] • Documents on Payment [D/P] • Documents against Acceptance [D/A]In this stage, the Company prepares all the necessary documents including Sales Contract required by the buyerand submits to the negotiating bank in exact specified format and manner. The most important documentsdemanded by the importer are:- • Bill of exchange • Commercial Invoice • Packing List • Marine Insurance Policy • Certificate of Origin GBS Classified - Internal use
  41. 41. `Then Buyer Company sends the Sales Contract which is the declaration by them that all the terms andconditions of order are accepted to them.STAGE 3: PERFORMANCE OF MARKETING DEPT.As soon as the order has been confirmed the Buyer Company sends the Sales Contract putting their own sealwhich is the declaration by them that all the terms and conditions of order are accepted to them.After the contract, the marketing dept. places the Manufacturing Order on the Production Manager & advice theMaterial Procurement. Department for insuring the availibity of purchase item required for the purchase ofGoods.This note contains the description of the goods as has been given in export order along with the instructionsgiven by importer.The date by which the goods must be ready is clearly indicated in Manufacturing Order.On the basis of work order Manufacture start. After receiving MO Production of the goods are started.STAGE 4: PACKING & SENDING OPTIONThen as per the instructions given by importer goods are packed in Packing Department. Now these packedgoods are sent to shipping agent through transporters or through Courier.STAGE 5: FINAL INSPECTIONAfter the stage of inspection, it is carried out by the Quality assurance dept. of DLW & the final inspection isdone by DLW, RITES & IMPORTER (If importer so desire) WORKING OF COMMERCIAL DEPARTMENT i.e. EXPORT DOCUMENTATIONDocumentation Department is usually called as ‘Commercial Section’AT DLW the export is done by the Marketing Dept. up to the stage of Manufacturing & Turning out from DLWthen after the other export formalities are carried out by the RITES.Commercial Section can be shown by following figure:- • COMMERCIAL SECTION • COMMERCIAL MANAGER • DEPUTY MANAGER • ASSISTANT MANAGER • CLERICAL STAFF & WORKERSThe main function of the commercial section is to prepare and maintain the documents of each and everyactivity involved in the Export procedure. Documentation is mainly done to give justification before ReserveBank of India of foreign exchange transaction which is carried out in Export Process. Thus, the ExportDocuments represents the total Export Procedures. GBS Classified - Internal use
  42. 42. `Mainly the Export Documents Can be divided into two types:-(A) COMMERCIAL DOCUMENTS:-These documents are used by ‘Custom of Trade’ in International Commerce by exporters and importers indischarge of their respective legal and other incidental formalities underSales contract. Commercial Documents can be further divided into two types of documents which are asfollows:- 1) PRINCIPAL DOCUMENTS. 2) AUXILLARY DOCUMENTS.1. PRINCIPAL DOCUMENTS:- These documents are required for effective physical transfer of goods and title thereto from exporter toimporter. Following documents come under this category:- • Realization of Export Sale Proceeds • Commercial Invoice and Invoice prescribed by Importing Country • Packing List • Certificate of Inspection • Certificate of Insurance/Insurance Policy • Bill of Lading or Combined Transport Documents • Certificate of Origin • Bill of exchange • Shipping Advice GBS Classified - Internal use
  43. 43. `2. AUXILIARY DOCUMENTS:- These documents are required in connection with preparation or procurement of Principal Exportdocuments. Following documents are Auxiliary documents:- • Proforma Invoice • Shipping Instruction • Insurance Declaration • Intimation for Inspection • Shipping Order • Mate’s Receipt • Application for Certificate of Origin • Letter to Bank for negotiation or collection of documents(B) REGULATORY DOCUMENTS:- These documents are prescribed by different Government Department/Bodies for compliance offormalities under relevant laws, rules and regulations governing export trade viz. FERA ,Import & Export(control) Act, Central Excise Rules,Export (Quality Control &Inspection) Act, Customs Act and Major Port Trusts Act etc. Following documentsare of Regulatory nature: • Exchange Control Declaration-GR Forms • Freight Payment Certificate • Insurance Premium Payment Certificate • Gate Pass-I/II • ARE-1/ CT-1 Forms • Shipping Bill/Bill of Export • Port Trust Copy of Shipping Bill/ Export Application/ Dock Challan • Receipt for Payment of Port Charges • Vehicle TicketBroadly we can classify the total working of Commercial Section in the three stages. They are:- 1) Pre Shipment Documentation 2) Shipment Documentation 3) Post Shipment Documentation GBS Classified - Internal use
  44. 44. ` 1. PRE-SHIPMENT DOCUMENTATION:Pre shipment procedure starts from the very beginning i.e. receiving the order and it ends with handling over thegoods to the transporters. In the case of Advance payment following documents come under Pre shipmentdocuments:-After receiving the export order, Sales Contract is sent to buyer his is resent by buyer after putting their sealalong with the 30% of total Invoice value (in the case of advance payment) then after packing of goods, PackingSlip is sent from the Packing Department, with that Slip ,Packing list is prepared in Commercial section.After checking Packing List thoroughly, Invoice is prepared and then both Packing List as well as Invoice issent to buyer to get the remaining 70% of the payment. When they make total payment goods are sent to them.In this procedure, first of all goods are handled over to the transporter. Then transporter gives whole goods toClearing Agent. 2. SHIPMENT DOCUMENTATION: After taking over the whole goods by Clearing Agent, Shipment Procedure is started. If Consignment is goingto be exported by Sea, goods are sent from the company to Mumbai. If goods are to be shipped by Air thengoods are transported to Delhi Airport. Shipping Instruction (3 Copies) is sent to Clearing Agent which containsthe information about consignment. For e.g. Dimension of Cartons i.e. No. and Size of Cases, Detail of items,Name of Transporter etc.When goods are loaded on to the Ship/Aero plane Challan is provided by the owner of Ship/Plane. Challan,Bill of Clearing agent (in the case of FoB), Invoice and ARE (Application for Removable of Excisable goods)are sent to Buyer.Terms of Delivery means in delivering the goods to the Buyer which cost will be included whether it willinclude only cost of production or it will also include transportation costs. Mainly there are three terms ofDelivery: • FOB (Free on Board):- It is also called as Freight on to-pay Basis that means freight charges will be paid by Buyer. • C.I.F. (Cost including Insurance & Freight):- It is also called as Freight on Pre-Paid Basis that means Freight charges will be paid by Exporter and Goods will be insured. • C&F (Cost including Freight):- It means only Freight charges will be paid by exporter and Insurances charges will be covered by buyer itself. GBS Classified - Internal use
  45. 45. ` 3). POST SHIPMENT DOCUMENTATION:-Post shipment Documentation start when goods are reached at their destination then to clear the goods from thecustoms in the Importer Country some documents are needed. Which are as follows:-Shipping Advice: - It is sent as covering letter. it contains details of Consignment and clearing agent . a). Invoice (2 copies) b). Packing List (3 copies) c). Bill of Lading (1 original & 1 Xerox) d). Airway Bill (1 Xerox & 1 original copy) e). Shipping Bill (Original):- Shipping Bill is provided by Customs of India to the Clearing Agent of the Company after checking of goods. Without Clearance of Customs no export can take place. It has all the details of Export Order like details of items, Invoice value of total consignment, Foreign Currency involved, Exchange Rate, Draw back details, Date of Export etc. This shipping Bill is needed at the customs of Importer’s Country as well as Bank of Exporters to get the Payment. It is divided in the two sections: 1. Exchange Control Copy: - First two Pages of Shipping Bill in which Exchange Rates and Freight charges, Insurance Charges (if applicable) are indicated, are called exchange control copy. 2. Export Promotion Copy: - Govt. give export incentive on certain items so, in Shipping Bill all details are given regard in Drawback like their rates and amounts. DOCUMENTS SENT TO BANK:- a). Invoice (2 Copies) b). Packing List (original) c). Exchange Control Copy of Shipping Bill (original) d). Bill of Lading (2 Copies) GBS Classified - Internal use
  46. 46. ` c). Copy of Original FIRC (Foreign Inward Remittance Certificate)When all the documents are sent to bank, whole transaction is justified and then Bank sends Reference No. withthat Ref. No. Bank Realizations Certificate is made in the Company which is again sent to Bank after 6-8months Bank sends that Certificate to the Company by putting their own seal. This is the last document in anyExport Order. DOCUMENT USED IN PRE-SHIPMENT • SALES CONTRACT • PROFORMA INVOICE • COMMERCIAL INVOICE • MARINE INSURANCE POLICY SALES CONTRACTIt is a legal contract of exchange of goods, services or property to be exchanged from seller to buyer (in case ofexport: from exporter to importer) for a pre-decided value in money or money equivalent paid or promised topay same. It is a specific type of legal contract in which all details regarding trade which is going to take placebetween any two countries. It contains:- • Contract No. • Invoice of • Delivery Period • Date • Port of Loading • Port of Destination • Mode of Payment • Exchange Rate • Invoice • Packing Description • Freight Charges • Insurance Charges • Name of Seller’s Bank • Description of Goods GBS Classified - Internal use
  47. 47. ` PROFORMA INVOICE A proforma invoice is a very common international document; despite its name, it is not an invoice at all buta quote. An international transaction includes so many variables that it is sometimes difficult for importer tohave a good grasp of final cost of goods. For e.g. the cost of goods is increased by the cost of shipping,insurance and so forth. In order to determine these costs the import may request for a proforma invoice whichhelps in determining the accurate and precise preview of actual invoice which is usually prepared when atransaction is going to take place. In those cases when exporter requests payment on a ‘letter of credit basis, theinformation contained in proforma invoice is used by issuing bank to open the letter of credit. It contains:- • Name & Address of the Seller • Name & Address of the buyer • Date • Delivery Time • Terms & Conditions • Port of Loading • Port of Discharge • Terms of Trade • Freight to be covered by • Insurance to be covered by • Banker’s Name • Mode of Transport • Currency used • Description of Goods • Signature COMMERCIAL INVOICE Commercial invoice is the basic document in any trade. It is also called ‘document of contents’ becauseit generally contains all the information required for preparation of all other documents.A commercial invoice is the seller’s bill of merchandise. There is no standard format for commercial invoicebut usually it contains the following: GBS Classified - Internal use
  48. 48. `• Exporter’s Name & Address• Invoice No.• Date• Buyer order No.• Consignee Name• Buyer Name and Address• Country of origin of goods• Country of final destination• Terms of Delivery & Payment• Pre Carriage by• Vessel/Flight No.• Port of Loading• Port of Discharge• Final Destination of Goods• Marks & Nos.• Number of Packages• Description of Goods• Container No.• Quantity• Rate• Amount• Declaration• Signature of Authority GBS Classified - Internal use
  49. 49. ` MARINE INSURANCE POLICY It provides cover against perils of sea and other connected risks to which goods are exposed to. It is same asany other insurance and usually done to minimize the risk related to shipment of goods. It contains:- • Certificate No. • Open Cover No. • Open Cover Date • Assured Name • Address of the Assured • Receipt Date • Effective From • Issued at • Net Premium • Name of the Issuing Company • Total Sum insured • Sum Insured in Foreign Currency • Basis of Valuation • Country of Destination • Mode of Transport • Packaging Description • Commodity Description • Terms of Insurance DOCUMENT USED IN SHIPMENT GBS Classified - Internal use
  50. 50. ` • PACKING LIST • CERTIFICATE OF ORIGIN • CERTIFICATE OF INSPECTION • MATE’S RECEIPT • BILL OF LADING PACKING LISTIt is a document which shows nature and the number of goods etc.put in each package/container with distinctivenumber of marks. This is generally needed by the importer when he is importing different types or sizes ofmerchandise so that he may identify the nature of goods in each package. It is also used by custom for checkingthe goods on random basis or otherwise.Thus, packing list is mainly used to facilitate easy identification of goods in each package/container by theimporter or custom. It generally contains:- • Exporter’s Name & Address • Invoice No. • Date • Buyer order No. • Consignee Name • Buyer Name and Address • Country of origin of good • Country of final destination • Terms of Delivery & Payment • Pre Carriage by • Vessel/Flight No. • Port of Loading • Port of Discharge • Final Destination of Good • Marks & Nos. • Container No. • No. & Kind of Packages • Description of Goods • Quantity of Goods • Remarks, if any GBS Classified - Internal use
  51. 51. ` CERTIFICATE OF ORIGINThis is a document which is mostly required by Common wealth Countries. It is a certificate of declaration bythe shipper regarding origin of goods. The certificate is generally attested or certified by the Chamber ofCommerce for industry or other agency designated for this purpose. The main aim of this certificate is to enablethe importer to get concessional tariffs.It contains:- • Exporter’s business Name, Address & country • Consignee’s Name, Address & country • Means of Transport & Route • Item No. • Marks & Nos. of Packages • No. & Kind of Packages, description of goods • Origin of country • Gross Weight & other quantity • No. & Date of Invoices • Certification & Signature by Chamber of Commerce • Declaration & Signature by Exporter CERTIFICATE OF INSPECTIONFor ensuring the quality government has made it compulsory for certain products that these should be inspectedby some authorized agency. EXPORT INSPECTION COUNCIL OF INDIA (EICI) is one such agency whichcarries out such inspections and issues the certificate that the consignment has been inspected as required underthe Export Quality Control and Inspection Act, 1963 and satisfies the conditions relating to quality control andinspections as applicable to it and is export worthy. Some countries have made it mandatory for the goods beingimported to their countriesIt contains:- • Beneficiary Name & Address • Applicant • Description of the Goods • Bill of Lading quantity • For Transportation to GBS Classified - Internal use
  52. 52. ` • Remarks • Item wise/Size wise Break up of Quantity MATE’S RECEIPTIt is issued by the chief of vessel after cargo is loaded and it is duly signed and stamped by Chief Officer orMaster of vessel. The shipping company does not issue the bill of lading unless it receives the Mate’s receipt.It contains:- • Mate Receipt No. • Shipping Bill No. • Date • Voyage • Exporter’s Name • CHA Name • Marks • Quantity of Goods • Description of Goods • Cargo Weight • Consignee Name • Terminal or Chief Officer signature BILL OF LADINGThe Bill of Lading is a document issued by the shipping company or the agent acknowledging the receiptmentioned in the bill for shipment on board of vessel and undertaking to deliver the goods as per the order andcondition as received by the consignee or according to his order. The Bill of Lading is issued in standardizedaligned document format.It contains:- • Shipper’s Name • Consignee • Notifying Party GBS Classified - Internal use
  53. 53. ` • Pre Carriage by • Place of Receipt by Pre Carrier • Ocean Vessel • Port of Loading • Port of Discharge • Marks & Nos. • No. of Packages or Units • Kind of Packages, description of Goods • Weight of Goods POST SHIPMENT DOCUMENT • SHIPPING BILL • BILL OF EXCHANGE • CONSULAR INVOICE • BANK CERTIFICATE OF EXPORT & REALISATION SHIPPING BILLThe shipping bill is the main document on the basis of which customs office grants the permission for export.After loading the goods on ship it is prepared by clearing agent but it is mainly needed to justify the goodsgoing to be exported.It contains:- GBS Classified - Internal use
  54. 54. ` • CHA Name • Date • State of Origin • Exporter’s Details • Consignee • Port of Loading • Port of Discharge • Gross Weight • Total Packages • Net Weight • Country of Destination • Nature of Cargo • Marks & Nos. • Foreign Exchange Bank A/C No. • RBI Waiver No. • Invoice Details • Exchange Rate • Insurance Charges • Freight Charges • Discount • Commission • Packing Charges • Draw Back Description • Nature of Payment • Buyer Name & Address BILL OF EXCHANGEIt is a written instrument whereby the person issuing it directs the other party to pay a specified amount to acertain person or to bearer of the instrument i.e. bill of exchange.In the context of an export-import transaction, bill of exchange is drawn by the exporter. According to whichimporter are to pay a certain amount to a certain person or to the bearer of bill of exchange. Export consignmentis passed on to the importer only when the importer’s order contains bill of exchange.It contains:- • Amount of bill • Place GBS Classified - Internal use
  55. 55. ` • Name & Address of the Bank in which amount is to be paid • Order by exporter • Invoice No. • Name & Address of the import • Exporter’s Signature BANK CERTIFICATE OF EXPORT & REALISATION This certificate contains the information of export consignment and as to be submitted to the bank foreach and every consignment.The information required for making bank certificate is obtained by various shipment documents named asInvoice, Shipping Bill, Bill of Lading, Airway bill, Insurance bill, Freight Memo etc Three copies of ‘bankcertificate’ addressed to the “JOINT DIRECTOR OF FOREIGN TRADE” is prepared and submitted to bank. Copies of Export Invoice, customattested EP (Export Promotion) copy of Shipping Bill and other relevant documents are also submitted alongwith the Bank CertificateThe Bank Certificate is declaration by the exporter that they have forwarded the documentary export bill to itsbank for the collection or negotiation or purchase as per particular given in Bank Certificate. The bank verifiesthe information given by the exporter and certifies the same. The bank passes the original copy with the relevantcopy of attested documents to the exporter and duplicate copy to the Licensing Authority. Bank retains thetriplicate copy for its record.It contains:- • Invoice No. • Export Promotion Copy of Shipping Bill duly-authenticated by custom • Description of Goods as given in Custom Authenticated-Shipping Bill • Bill of Lading No. • Destination of Goods • Bill Amount • Foreign Exchange used • Freight Amount as per Bill of Lading • Insurance amount as per Bill receipt • Date of Realization of export proceeds • SDF (Sales Declaration Form) Form No. & Signature of Exporter MODES OF PAYMENT GBS Classified - Internal use
  56. 56. ` There is a no. of different payment methods that can be used when importer deals with exporter. Mostly three of them are used. Which are as follows?  DOCUMENTS AGAINST PAYMENT  LETTER OF CREDIT DOCUMENTS AGAINST PAYMENTThe exporter makes the shipment and sends the shipping documents to the exporter’s bank for collection. Thebank then sends the shipping documents along with a collection letter to the importer’s bank, which then sendsa collection notice to the importer. The importer makes payment upon receiving the notice, and only afterpayment the importer receive the original shipping documents with which they take the physical possession ofthe goods.The major advantage of the use of DP is the low cost as compared to use a Letter of Credit. But this is offset bythe risk that the importers sometimes reject the documents for some reasons (or when they are not inorder).Since the cargo has already been loaded (to generate the documents) exporters have little recourse againstthe importer in case of non-payment. So a document against payment (DP) arrangement involves a high level oftrust between the exporters and importers. LETTER OF CREDITA Letter of credit is very common and familiar document in setting payment between buyer and seller. It is asigned instrument embodying an undertaking by the bank of the buyer to pay the seller a certain sum of moneyon presentation of documents evidencing shipment of specified goods and subject to compliance with stipulatedterms and conditions. The International Chamber of Commerce (ICC) has a published a set of universalrecognized guidelines governing the issue of a Letter of Credit in Uniform Custom and Practice ofDocumentary Credit (UCPDC).Following parties are involved in issuing a letter of credit:- 1. APPLICANT: - The firm asking for a Letter of Credit is applicant. Usually the applicant is importer who is going to import goods but it is not in position to pay for the goods currently. 2. BENEFICIARY: - The firm named in a letter of credit as the firm to whom the bank is insuring payment if the importer does not pay. Usually, the beneficiary of a letter of credit is the exporter. GBS Classified - Internal use
  57. 57. `3. ISSUING BANK: - It is that bank which provides the letter of credit to the importer. It has the contractual obligation to pay the beneficiary (exporter) on the presentation of necessary documents by them when importer is unable to pay.4. ADVISING BANK: - In a Letter of Credit transaction, the bank that determines whether the issuing bank is a legitimate bank and the terms of the Letter of Credit offered by the issuing bank on behalf of the importer are appropriate. Generally, the advising bank is the exporter’s regular bank. But in some cases the exporter’s bank will delegate this role to another bank which is more experienced. LETTER OF CREDIT (PAYMENT PROCEDURE) The Letter of Credit (L/C) payment procedure is usually as follows:- • The Importer applies to open the L/C to exporter through A bank that can open the L/C in their country. • The opening Bank will inform the exporter that L/C has been established. • Exporter checks all the terms and conditions listed in the L/C. If all the terms and conditions are acceptable the will arrange the shipment within the time specified in the Letter of Credit. • After the goods are loaded onto the ship without any damage, the captain of the ship will issue clean Bill of Lading to the exporter. With clean Bill of Lading only they can claim the ownership of goods. • Clean Bill of Lading and other relevant documents will be submitted to their bank to gather the irrevocable Letter of Credit. It is an often used payment method. This is a formal payment method that offers a lot of protection to the parties. In simple words, a Letter of Credit is a letter written by the importer’s bank to the exporter. It verifies that the payment will be guaranteed when bank is presented with concrete documents (Bill of Lading, Freight documents etc.). Mostly Letters Of Credit are irrevocable once the importer has sent them. • A Letter of Credit usually includes applicant (the importer), beneficiary (I/E agent), opening bank, negotiating bank, specification and quantity of the goods, amount of money, loading port and destination port, shipment date, the validity date of the L/C, terms and conditions agreed by both the importer and exporter and details of the documents required by the importers (Bill of Exchange, Commercial Invoice, Packing List, Insurance Certificate etc.) • The exporter’s bank will send the clean Bill of Lading and relevant documents to opening bank. GBS Classified - Internal use
  58. 58. ` • Opening bank will inform them that all documents are received. • Then importer will go to the bank to make the payment to get the clear Bill of Lading and relevant documents. • With all of these documents, they can clear the import customs and pick up the goods after the goods have arrived on the destination sea port. • L/C is used for the larger quantity order shipped by the sea. • The typical L/C scenario takes 14-21 days to complete. STEPS IN PROCESSING OF A LETTER OF CREDITThe main steps in the processing of a Letter of Credit are as follows:- ◊ Issuance of a Letter of Credit ◊ Shipment under a Letter of Credit ◊ Payment under a Letter of Credit 1. ISSUANCE OF A LETTER OF CREDIT:-We can understand the first and foremost step of processing of a Letter of Credit with the help of followingdiagram:- EXPORTER’S BANK IMPORTER’S BANK EXPORTER IMPORTER a. First of all the exporter and the importer agree on a sale under “Letter Of Credit” terms. The exporter sends a proforma invoice to importer. GBS Classified - Internal use
  59. 59. `b. Then importer takes the proforma invoice to its bank and requests for a Letter of Credit.c. The importer’s bank issues a Letter of Credit and sends it to the exporter’s bank.d. The exporter’s bank receives and revises the Letter of Credit. Then it notifies the exporter that it is ready to ship the merchandise to the importer. 2. SHIPMENT UNDER A LETTER OF CREDIT:- EXPORTER’S BANK IMPORTER’S BANK EXPORTER IMPORTERa. The exporter sends the merchandise to the importer but gathers all the documents and sends them to the exporter’s bank.b. The exporter’s bank checks that whether the documents fulfill the requirement of Letter of Credit or not and then sends them to the importer’s bank.c. The importer’s bank also verifies the documents that they match with the requirement of Letter of Credit and notifies the importer that everything is in order. 3. PAYMENT UNDER A LETTER OF CREDIT: EXPORTER’S BANK IMPORETR’S BANK GBS Classified - Internal use
  60. 60. ` EXPORTER IMPORTERa. The importer pays the importer’s bank in order to collect the documents that will be needed to collect the merchandise and clear the customs.b. The importer’s bank sends the importer’s payment to exporter’s bank.c. The exporter’s bank notifies the exporter that they have been paid by importer. CHAPTER NO. 6 REASERCH METHODOLOGY GBS Classified - Internal use
  61. 61. `The project on Dlw Export procedure to Non-Railway Customer is based on Two Researches.1). Exploratory research design &2). Conclusive research design.The approach of research was survey and instrument used was questionnaire for quantifying whether theorganization employees are very well aware and satisfied with the facilities provided by the DLW. Before going through the questionnaire first one should understand the meaning of the terms used in theproject for better understanding of the project report. These are exploratory research and conclusive research,sampling plan and reliability of the questionnaire.WHAT IS EXPLORATORY RESEARCH?Investigation into a problem or situation which provides insights to the researcher. The research is meant toprovide details where a small amount of information exists. It may use a variety of methods such as trial studies,interviews, group discussions, experiments, or other tactics for the purpose of gaining information.WHAT IS CONCLUSIVE RESEARCH?conclusive research is meant to provide information that is useful in reaching conclusions or decision-making.It tends to be quantitative in nature, that is to say in the form of numbers that can be quantified andsummarized. It relies on both secondary data, particularly existing databases that are reanalyzed to shed lighton a different problem than the original one for which they were constituted, and primary research , or dataspecifically gathered for the current study. GBS Classified - Internal use
  62. 62. `WHAT IS SAMPLE?Sample is defined as subgroup of elements of the population selected for participation in the study. Samplecharacteristics, called Statistics, are then used to make inferences about the population parametersSAMPLING PLAN;There is no sampling plan as such as the study involved in understanding the various processes and analyzingthem. The study involved in the detail analysis of secondary data gather from various sources and there for nosample size and plan has been considered. Type of the DataSources of data: Data has been collected through literature survey and expert opinion. The part of data iscollected from various primary sources and secondary sources. • Primary Data Sources – Information gathered through interview and discussing with departmental members. • Secondary Data Sources – Past Data • Type of Research – Exploratory & Conclusive Analysis • Type of Sampling plan – No Sampling plan • Sample Size – No Sample Size GBS Classified - Internal use
  63. 63. ` CHAPTER NO. 7DATA ANALYSIS GBS Classified - Internal use
  64. 64. `LOCOMOTIVE PRODUCTIONVarieties of management interventions, active co-operation of employees, and their high level of motivationenabled DLW to increase its output significantly in the current decade. This is depicted below: 267 258 222 222 150 162 95 126 102In current year, DLW has produced 267 locomotives (including 500 HP EMD locomotives) till MARCH’2012. GBS Classified - Internal use
  65. 65. `TYPE WISE LOCOMOTIVE OUT-TURN 2007-08 2008-09 2009-10 2010-11 Type of Targets Actual Targets Actual Targets Actual Targets Actual Loco ALCO 138 148 148 157 168 175 148 167 GM 62 59 80 80 62 59 80 80 EXPORT 04 04 0 01 04 04 0 1 NRC 16 20 22 19 16 20 22 19 Total 220 222 250 257 250 258 250 267TURNOVER Year Rs. in crores 2003- 04 558.00 2004 – 05 855.88 2005 – 06 934.65 2006 – 07 872.05 2007 – 08 984.65 2008 – 09 1297.54 2009-10 1560.28 2010-11 2404.38 GBS Classified - Internal use
  66. 66. ` CHAPTER NO. 8FINDING AND CONCLUSION GBS Classified - Internal use
  67. 67. ` After completing my project I familiarize with DLW, and I get that diesel locomotive works is a famoustechnological temple, which came in existence, in 1964 by Late Shri Lal Bahadur Shastri. DLW export to thefollowing countries like Sri Lanka, Bangladesh, Angola, Tanzania, Vietnam,Sengal Mozambique,Malaysia, Sudan, Myanmar etc.There are many facilities for the employees as hospital, health club, sports club, school and college, sewingcenter, technical training center etc. In short we can say that all the facility which the ordinary employee neededis provided by welfare department and the entire employee are very well aware with welfare programmes. Theytake advantage with programme in any form. Very few improvement but important improvement, whichmentioned above, is needed in welfare programmes, which make the employees more satisfied. GBS Classified - Internal use