Lok Sabha Question No. 947 (UNSTARRED), answered on 2021-12-03
Subject: India’s Share in International Shipping Sector
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Girish Bhalchandra Bapat, Pritam Gopinath Munde, Chandra Sekhar Sahu, Rahul Ramesh Shewale

- (a) Yes
- (b) The committee has submitted its report to the IFSCA on October 28,2021  . The copy of the report available  at the weblink https.//ifsca.qov. in/committeeReport.  The committee has made numerous recommendations regarding reform measures required to make GIFT IFSC a global hub for Ship Acquisition, Financing and Leasing.  Recommendations include notifying vessel leasing as a  'financial product"  enabling  operating  framework  for Ship leasing, creating special dispensation for registration of vessels, flagging, licensing, changes  in direct and indirect tax law including  stamp  duty, etc

## GOVERNMENT OF INDIA MINISTRY  OF PORTS. SH{PPING & WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO. 947

ANSWERED ON 3RD DECEMBER,  2021

## INDIA'S  SHARE IN INTERNATIONAL  SHIPPING SECTOR

947.  SHRI GIRISH BHALCHANDRA BAPAT. DR. PRITAM GOPINATHRAO MUNDE: SHRI CHANDRA  SEKHAR SAHU. SHRI RAHUL RAMESH SHEWALE,

will the Minister of PoRTS, SHIPPING  AND WATERWAYS be pleased to state:

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- (a) whether the Committee  for Development of Avenues  for Ship Acquisition, Financing and Leasing  from Gujarat  lnternational  Finance Tec-City  (GIFT) lnternational  Frnancial Services Centre  (IFSC) in lndia has submitted  its Report to lnternational  Financial  Services Centres Authority (IFSCA);
- (b) if so, the details  thereof  along with the main observations  of the committee ;
- (c) whether despite having a large coastline,  growing  domestic market and rnternational ieaborne trade,  deep-roote-d  maritime tradition and skilled seafarers,  lndia has a smaller share in international  shipping  sector,
- (d) if so, the facts thereof;
- (e) whether the Union Government  proposes any action plan so that country's share  in iniernational shipping sector could be enhanced  proportionately;  and
- (f) if so, the details  thereof?

## ANSWER

MINISTER  OF PORTS, SHIPPING  AND WATERWAYS (SHRI SARBANANDA SONOWAL)

- (c &  d) lndia has a merchant  fleet of 1491 seagoing  ships with total capacity of 13 Million GT. lndia is ranked l Bth with respect to reading  frag of registration  by dead *"ight tonnug" and 19th  by carrying capacity  in dead weight t;nnaie  and accounts for about 1.3 percent  of the total global  dead weight tonnage
- (e & f) The Government  is committed  to increase  the share  of rndian  shipping in international  trade. The folowing are the major measures taken by the Government for the same;
- ., : The criteria for granting  the Right of First Refusar  in chartering  ot u""."r.  tn.[n  tino"[r"";.. ;;;  ;;ln revise.r r.,'. p  ro m oti  n g ton nas e u nd ", r ; ;;";;ffi Tl; ffi :  ;  f lffi I": :i::',JT"?:1  Ji:I J:l nirbhar/serr-reriant  Bharat,  ffi#:,iHil:-il:*,Tr\_l,l3ii;  ]l il:[ ?;::Jlff  ; iT: revised  hierarchy  of RoFR; in lndia. The following is the (i)  &evision  of the for of First R
- . lndian  built, lndian  flagged (lndian owned);
- . lndian  built, foreign  flagged (foreign  owned).
- . Foreign  built, lndian  flagged (lndian owned);

This will promote  demand  of lndian  built vessels as the the priority  in chartering  and will also provide  additional market to ships  built in lndia. lndian built vessels  will have access and business suppo(

- !i't : A scheme for the promotion  of flagging  of merchant ships in rnoi, ry p.uilinlEii24 croreover  a period  of five years  as subsidy support  to lndian shipping companies  in global  tenders floated  by Ministries  and :rT"t;l:i"en approved bv the cabinet rhe rate"of subsidv  support wi, be based  on age
- (iii)  sh .  , : Government  of lndia has ::ji::?,:1"^:lT:1.I:",.".1e poril ro..  rnJ,n-sr,ipy"'..*n gth  December  zo1s,  for grant  of financiar  assistance  to 'rndian  Shipyards.  onry those vessers  .h"r, b"""rig:;i;  ;:: grant  of financiar  assistance,  for which the constrLrction  commences  subsequent  to thc signing  of valid  contracts  Vessels  which are constructed  and delivered  within  a period  of three years from thc date of corttract  are eligible for availing frnancial assistance  rinder thc policy For specializetj  vessels,  thc delivery period  can be exterrded  till six years.  Financial assistance  shall be  @  20% of the contract  price,  actual  receipts,  fair price (whichever  is least) to lndian  shipyards.  Under  the poricy,  the financial assistance  extended wourd  be reduced  by 3ok every three years.