Lok Sabha Question No. 6313 (UNSTARRED), answered on 2018-04-05
Subject: Promotion of Coastal Shipping
Ministry: SHIPPING
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR

## GOVERNMENTOF  INDIA MINISTRY OF SHIPPING

## LOKSABHA UNSTARRED  QUESTION  NO.6313 TO BE ANSWERED  ON sthAPRrL,2018 PROMOTION  OF COASTAL SHIPPING

## 6313. ADV. NARENDRA  KESHAV SAWAIKAR:

Will the Minister of SHIPPING be pleased to state:

- (a) whether the Govemment  has taken initiatives  to encourage  coastal shipping in the country and if so, the details thereof;

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- (b) whether the Government has asked the automobile manufactuters  to opt for coastal shipping mode for transportation  ofvehicles and if so, the details thereof;
- (d) the measures  proposed to be taken by the Govemment  for promotion  of use of coastal shipping by other sectors also?
- (c)  the extent to which the coastal  shipping is cheaper than road and rail transport  ofvehicles; and

## ANSWER

## MINISTER OF STATE TN THE MINISTRY OF SHIPPING (SHRI PON. RAD}IAKRISHNAN)

(a): Yes Madam, the Government has taken steps to encourage Coastal Shipping which inter alia include reduction ofGST on bunker fuels used in Indian Flag Vessels from 18% to 5Yo;40Yo discount  on cargo related and vessel  related charges  for Coastal Ships  carrying  coastal  cargo except for coal, POL and Iron ore; 80o/o discount on Vessel  Related Charges (VRC) and Cargo Related Charges(CRC) for Ro-Ro vessels for Coastal transportation of vehicle for two years  with effect from 20s September,2016;  priority berthing for coastal  ships without any charge;  introduction  of green channel clearance for faster evacuation of coastal cargo at major  ports and allowing  the reimbursement  of freight subsidy  on primary  movement of subsidized  urea and P&K fertilizers  by rail and/or coastal shipping  or inland water transportation  also.

(b):  The automobile  manufactures were encouraged to opt for Coastal Shipping for transportation  of vehicles during meetings with the manufactures.  Specific steps such as relaxation of cabotage for Ro-Ro ships, increasing  discount for Ro-Ro vessel from 40%o to 80oh for two years were taken to facilitate Coastal  transpofiation  of vehicle. The Chennai  Port, Kamarajar Port and VO Chidambaranar Port have approached  the automobile manufacturers to use their ports for Coastal Shipping of vehicles by offering  concessional rates and other facilities.

(c): According  to the National  Perspective Plan of Sagarmala  program,  the cost of transportation of goods by road is Rs. 2-3 per tonne km and by rail it is Rs. 1.2-1.5 per tonne km. As against  these two modes, the cost of transportation  by coastal shipping is Rs. 0.2 - 0.3 per tonne km. However, in addition to the absolute  transportation costs, other logistics costs such as handling, storage, first mile and last mile transport,  packaging  etc. are also incurred. These  costs vary with the nature and volume  of commodities / cargo  being transported and the mode used fbr transportation

(d): The Ministry of Shipping has launched  the Central Sector Scheme for providing financial support  to Major/non-Major  ports/State  Govemments  for creation of infia.structure  to promote movement  of coastal cargo/passengers by sea/National Waterways. The major ports have been asked  to have dedicated coastal berths for coastal cargo for which financial assistance is also provided under the coastal berth scheme. ,!{.+:r