Lok Sabha Question No. 1620 (UNSTARRED), answered on 2022-02-11
Subject: Growth in Shipping Industry
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Hasmukhbhai Somabhai Patel

## GOVERNMENT OF INDIA

## MINISTRY OF PORTS, SHIPPING  AND WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO. 1620

ANSWERED ON 11IO2I 2022

## GROWTH IN SHIPPING INDUSTRY

1620. SHRI PATEL HASMUKHBHAI SOMABHAI:

Will the Minister of PORTS, SHIPPING AND WATERWAYS  be pleased to state: ffi,  qrdqrttrf;I  ortwoqr,iTm

- (a) the growth registered by the domestic shipping industry in the country during each of the last three years along with the present status of the ship-building industry in the country; and
- (b) the initiatives taken/being  taken by the Government for upgradation  of infrastructure in the ports  and augmentation  of lndian tonnage in the shipping industry?

## ANSWER

## MINISTER OF PORTS, SHIPPING AND WATERWAYS (sHRr SARBANANDA SONOWAL)

- (a) The growth registered  by the domestic  shipping  industry  in the country during each of the last three years is given below:

| YEAR       | COASTAL !   | COASTAL !   | OVERSEAS   | OVERSEAS    | TOTAL   | TOTAL       |
|------------|-------------|-------------|------------|-------------|---------|-------------|
|            | SHIPS       | GT          | SHIPS      | GT          | SHIPS   | GT          |
| 31.12.2019 | 972         | 14,79,692   | 457        | 1,12,66,341 | 1,429   | 1,27,46,033 |
| 31j22020   | 998         | 16,72,581   | 465        | 1,13,37,811 | 1463    | 1,30,10,392 |
| 31j2.2021  | 1027        | 15,60,021   | 464        | 1,14,34,863 | 1,491   | 1,29,94,884 |

As per the Maritime  lndia Vision-2030  published  by the Ministry of Ports, Shipping and Watenruays, the global downturn in the shipbuilding  industry significantly impacted  the lndian shipyards  and lndia's share in the Global markets  has declined  to less than 1%. Further, the Government of lndia has approved the Financial Assistance  Policy for lndian Shipyards on  gth  December  2015 for grant of financial assistance to lndian Shipyards for shipbuilding  contracts signed between April 1,2016 to March 31,2026. The above policy caters for domestic  orders and export orders,  in accordance  with the guidelines issued in this respect.

The Shipyard is provided financial assistance upon delivery of the vessels. 21 Shipyards spread across various States have registered  under the scheme with details of around 170 vessels  which are being constructed.  Out of which 47 vessels  are built and delivered by 09 shipyards for which financial assistance is already sanctioned

(b) The initiatives  taken/being  taken by the Government for upgradation of infrastructure in the ports  are as follows:

- i. The PCS 1x has digitized processes  such as Electronic lnvoice (e-lnvoice), Electronic Payment (e-Payment)  and Electronic Delivery Order (e-DO) for physical release  of cargo by custodians. Further, the process of generation of electronic  Bill of Lading (e-BL) and enabling the Letter of Credit (LC) process to be conducted digitally  have already  been implemented in the PCS 1x. There is also going  to be complete  integration  between PCS 1x and lndian Customs EDI Gateway (ICEGATE). Partial integration has been completed.
- iii. Up gradation and integration  with recent  technologies- loT, Block  Chain  to ease transaction and real time basis tracking has been envisaged an lvlaritime lndia  Vision 2030.
- ii. Further, the Radio Frequency  ldentification  Device  (RFID) solution  has been implemented at all major  ports  to enable  seamless movement of traffic across port gates, including  substantial  reductions  in documentation  checks. All Major ports have already implemented Radio Frequency ldentification  Device (RFrD).
- iv. Further  the process to bootstrap PCS 1x into National Logistics Portal-lvlarine (NLP-Marine)  is already underway which will act as a Unified Digital Platform all maritime stakeholders.  NLP Marine + PCS 1x platform is envisaged as the central hub for all interactions with various  stakeholders  viz. Port, Terminals Shipping Lines/ Agents, CFS and Customs Brokers, lmporter / Exporter  etc.
- vi. An Enterprise Business System (EBS) is being implemented at 5 Major Ports (Mumbai  ,  Chennai, Deendayal, Paradip, Kolkata (including  Haldia) Port with project  cost of approx. 320 crores)  to provide  a digital  port  ecosystem that will adopt leading lnternational  Praclices  without losing its alignment  to existing local needs).  A tolal of 2474 processes  across  flve ports  were rationalized, harmonized, optimized and standardized to arrive at a final reengineered process  count of 162 processes.
- v. Logistics Dala Bank Service under Delhi Mumbai lndustrial Co(idor Development Corporation  Ltd. (Dl/llCDC), for enabling track & trace movement of EXIM container has been implemented in all the Container handling N4ajor  Ports.
- vii. ln order to bring all regulators  near port  area, the Port has allotted the office space to Participating  Government Agencies  (PGAS) like Animal Quarantine, Textile  Commission and Asst. Drug Controller.  Port has also allotted the land to FSSAI & Drug controller for setting up of laboratories. This is a step towards  better coordination between PGAS and other stakeholders like customs,  CHAS, Custodians,  etc. lt is envisaged  that the  present high dwell time for the consignments  assigned  for PGA clearance  will be reduced drastically once the PGAS are present at the port area only.

Further,  in order  to augment  the lndian  tonnage in the shipping industry,  this Ministry has implemented a new scheme for promotion of flagging of merchant ships in lndia by providing  subsidy support  to lndian Shipping  companies in global tenders floated by l\,Iinistries/DepartmenVCPSEs. ln order to  promote  to objective of Alamanirbhar  Bharat, the Government  of lndia has approved a Scheme to  provide Rs. 1624 crorc over a period of five years  and it was approved by the Cabinet on 14rh July, 2021. As the outcome of the scheme lndian Shipping  companies will become lnternationally competitive  while importing  government  cargo.