Lok Sabha Question No. 2049 (UNSTARRED), answered on 2020-09-22
Subject: Procurement of Tug Boats
Ministry: SHIPPING
Asked by: Sunil Dattatray Tatkare, Gautam Gambhir

## GOVERNMENT OF INDIA MINISTRY  OF SHIPPING

## LOK SABHA

## UNSTARRED QUESTION NO. 2049

TO BE ANSWERED ON 22ND SEPTEMBER,  2O2O

## PROCUREMENT OF TUG BOATS

## 2049. SHRI SUNIL DATTATRAY TATKARE: SHRI GAUTAM GAMBHIR:

Will the Minister of SHIPPING be pleased to state: +dcft{ra+i*

- (a)Whetheritisafactthatallmajorportsaredirectedtoprocureorchartertugboats manufactured in lndia;
- (b)ifso,thedetailsoffinancialimplicationandtheqUantumoffundsallocatedforit, so far;
- (c) whether the Government is envisaging  to create an ecosystem  for shipbuilding' tf'lip ,"prir,  ship recycling  and flagging in lndia' if so' the details thereof; and
- (d) whether it is also a fact that the Government  is planning to set up a Standing ipecifications  Committee  and if so' the details thereof?

## ANSWER MINISTER OF STATE (INDEPENDENT CHARGE) FOR SHIPPING (SHRI MANSUKH MANDAVIYA)

(a) ln compliance  with para 3 (b) of the Public  Procurement  (Preference to Make in lndia)  Order, issued by the Department of Promotion  of lndustry and lnternal Trade on4-06-2020,noGlobaltenderenquiryistobeissuedbytheMajorPorts,foreither procurement or chartering  of tugs, with estimated  value of purchases less than  Rs' 200 crores. To assist tnJualoiports  in expeditious  implementation  of the Make in lndia Order,Ministry  of Shipping  has issued a Standard  Operating  Procedure  (SoP) pertaining  to Procurement/Chartering  of Port Crafts by the Major Ports'

- (b) No funds have been allocated  in this regard  As far as Government  of lndia is concerned, there is no financial  implication'

(c)To promote  shipbuilding in lndian shipyards'  the Government of lndia is implementingthe  New Shipiuilding  Financial Assistance  policy for lndian shipyards forcontractssignedduringate-nyearperit.rcl,viz.2ol6.2o2a.Awebportalfor processing the applications  of shipyards  by Director General  of Shipping  has also beenlaunched.Further,theGovernmentoflndiahasdirectedthatallgovernment departments  or agencies'  inclrrding  CPSUs' have to provide  Right of First Refusal to lndian shipyards  while  procuring or repairing  vessels mearrl fot  governmental  or own use dl 2025, after which  only lndian shipyards  would  build and repair  VeSSelS for theseorganisations'

As far as ship recycling  is concerned, the Government  has enacted the Recycling  of ships Act, 2019 to regulate the ship recycling  activity in lndia. ln November  2019, lndia acceded  to the Hong Kong lnternational  Convention on Safe and Environmentally  Sound Recycling of Ships, 2009.

ln order to promote flagging  of ships and development  of shipping in lndia, lndian ships are given priority above  foreign  ships for such transportation.ln  all global tenders  for engaging ships by lndian companies/entities,  the Right of First Refusal is given to lndian flag vessels in terms of requirements/conditions  specified  by the DG Shipping.

(d) The Government  has set up a Standing Specifications  Committee under the chairmanship  of Managing Director, lndian Ports Association and comprising members from Directorate General  of Shipping,  Shipping Corporation  of lndia, Cochin  Shipyard  Limited and lndian Register of Shipping.