Lok Sabha Question No. 5488 (UNSTARRED), answered on 2017-04-06
Subject: Reimbursement of Freight Charges
Ministry: SHIPPING
Asked by: HEENA VIJAYKUMAR GAVIT, JAYAKUMAR JAYAVARDHAN, DHANANJAY BHIMRAO MAHADIK, RAJEEV SHANKARRAO SATAV, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.5488 TO BE ANSWERED ON 6 th APRIL, 2017 REIMBURSEMENT OF FREIGHT CHARGES

5488.   DR. HEENA VIJAYKUMAR GAVIT:

DR. J. JAYAVARDHAN:

SHRI DHANANJAY MAHADIK:

SHRI SATAV RAJEEV:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will the Minister ofSHIPPING be pleased to state:

## पोतप�रवहनमंत्

- (a) whether the policy for reimbursement of freight charges for movement of urea and P&K fertilizers is extended to movement by inland water transportation and coastal shipping;
- (b) if so, the details thereof;
- (c) the measures undertaken by the Government to promote the movement of freight by inland water transportation and coastal shipping under the Sagarmala project; and
- (d) the amount of subsidy disbursed under the said policy/scheme during the last three years and the current year and the amount of savings accrued from promotion of freight transport through waterways and coastal shipping?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISHNAN)

(a)&(b):Yes, Madam, the primary movement of subsidized urea and P&K fertilizers by rail and/or coastal shipping or inland water transportation including road bridging or  by  any  or  two  or  by  all  the  three  modes  of  transportation  upto  final  destination from the plant or port to various rake points of district qualifies for reimbursement of  freight.      The  reimbursement  of  freight  subsidy  under  the  multimode  system  is restricted to the actual or to the maximum of primary rail freight from plant/port to the nearest rake point of the final destination in the district, whichever is lower.

- (c) The following measures have been taken to promote the movement of freight by inland water transportation and coastal shipping under the Sagarmala project for promotion of coastal shipping and tourism
- (i)  Moderation  of  manning  and  technical  requirements  for  vessels  operating  within Indian  territorial  waters  through  a  river  sea  vessel  notification;  (ii)  declaring  the inland  vessel  limits  for  facilitating  coastal  trade  operations;  (iii)  issuing  coastal shipping  rules  for  coastal  vessels  operating  within  20  miles  off  the  coast;  (iv) exempting customs and Central Excise duty on bunker fuels (IFO 180 and IFO 380 CST)  by  Indian  flagged  coastal  container  vessels;  (v)  abatement  of  service  tax  at 70% for coastal  shipping  at  par  with  road  and  rail;  (vi)  simplification  of  customs

procedures  (vii)    launching  a  Central  Sector  Scheme  for  construction  of  exclusive berths  for  coastal  vessels  providing  assistance  up  to  50%  of  the  total  cost  of  the project subject to maximum of Rs 25 crores (viii) charging the  wharfage  on per unit basis, instead of on ad volarem basis, to promote transportation of automobiles  (ix) increasing the discount on port charges for Ro-Ro ships by major ports from 40% to 80% for two years w.e.f. 20 th September, 2016. (x)  cabotage has been relaxed for Roll-on-Roll-off  vessels,  Hybrid  Roll-On-Off,  Ro-RO-cum-Passengers,  Pure  Car Carriers, Pure Car and Truck Carriers etc.

(d)  According to information received from M/o Chemicals & Fertilizer, no amount of subsidy has been disbursed under the said scheme yet.

*****