Lok Sabha Question No. 2776 (UNSTARRED), answered on 2021-08-05
Subject: Support to Shipping Industry
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Bhartruhari Mahtab

## GOVERNIUENT  OF INDIA MINISTRY OF PORTS, SHIPPING  AND WATERWAYS

## LOK SABHA

## UNSTARRED QUESTION  NO. 2776

TO BE ANSWERED ON 5TH AUGUST, 2021

## SUPPORT TO SHIPPING INDUSTRY

2776,  SHRI BHARTRUHARI  MAHTAB:

Will the Minister  of PORTS, SHIPPING  AND WATERWAYS  be pleased  to state:

## qi-{,  +d ck{f,r  3flT  q-dcrlf  {'fi

- (a)  whether the country's  shipping  industry and national fleet are  proportionately l-malf  as comp"reo  to its  global standards despite having  a long coastline;
- (b) if so, the details thereof
- (c) whether the Government  propose to  provide subsidy to. lndian Shipping ;.p";1;" i;  promote flagging of meichant ships  in the country and support  to these ;;ffi;;a in'gtouat  tenders  floated bv the Government  and central  Public  sector Enterprises  (CPSEs) and if so, the details thereof;
- (d)  whether the said move would enhance  greater training and employment iooonrini""1.  lndian  seafarers  besides enhancint  Indian companies'share  in global shipping;  and
- (e) if so, the details thereof?

## ANSWER

## MINISTER OF PORTS' SHIPPING  AND WATERWAYS (SHRI SARBANANDA  SONOWAL)

- (a)&(b) Yes Sir. The total number  of ships under lndian flag is 1488 with  gross ' 'ionnage ot l z s6 million tons  lndia  ranks  18ih in the World's  Shipping  Tonnage'
- (c) Yes Sir' Details ofthe  Scheme are mentioned  as below:  -

The Schemewill  be implemented  with eff ecllrcm  14 07 2021  Further' the Scheme will be implemented  in the following manner:

- 1 . For a ship which is flagged  in lndia after  1sr February'  2021-
- a) And is less than 10 years at the time of flagging in lndia' the subsidy -' s'rpport  worto  be extended  @15%  of the  quote  offered by the L'l foreign "n:,pping  "orprny oR the a;tual difference  between the  quote offered  by the lndian flag vessel exercising  ROFR and the  quote offered by the L'l foreign  shipping company,  whichever  is less'

- b) And which is between  10 to 20 years  old at the time of flagging in lndia' ' in" "uU.iOy "upport would be extend ed  @10%  of the  quote offered  by the iit"*ig" "nippi"g company  OR the actual difference  between the  quote ott"*a "UV tne inOian  flag vessel  exercising  ROFR and the  quote olfered by the Ll foreign shipping  company,  whichever  is less'
- c) The rate at which the above subsidy support  is extended-  to ships at 1(a) -irtOl "tor" would be reduced by 1% every  year' till it falls to 10% and S"2", iespectivery,  for the two categories  of ships mentioned  above
2. For existing  lndian  flagged  ship  which  is akeady flagged-
4. ar And less than 10  years otd on 1st February 2021' the subsidy support '' *"",0 i" """"Oed'@10% of the  quote offered  by the L1 foreign shipping ""rp""V on tne Juat difference  between  the  quote offered by the iJiJ" iLg *""4  exercising  RoFR  and the  quote offered bv the  L1 foreign shipping  company,  whichever  is less
- b) And between 10 to 20 years old on 1st February 2021' the subsidy "' l;fi;;;i. i" "o""0* @5%  or the  quote orrered  bv the  11. roreisn ;ilpi;; ;;fu"v  oR the aciual difference  between  the  quote offered bv ;;"ftil flag vessel exercising  ROFR  and the  quote offered by the Ll foreign shipping  company' whichever  is less'
3. TheDrovisionsofthissubsidySupportwouldnotbeavailableinacase where an lndian flagged  vessel is the L'l bidder'
7. The eligible  shipping  company  shall be  paid the subsidy  amount  along  with ii" J""i"i  nir. "riunt as  per the conkact  terms  by the tendering  agency (user Departmentsi  CPSES) and the  tendering  l9-ency (user ii"o"n.""i"rCta=s)  will be then reimbursed  rhis  is critical  for  preserving ;;;;;-r;i". of monev and ensuring necessary  return to the shipping firm. 4.
8. The subsidy support would  be extended  only to those ships which  have ;;;s;;;";*,; "fter the implementation  of the scheme 5.
6. Flexibility  in allocation  of funds  for expenditure  from  one  year to another ,"T*irni^  itt. "rt,*s Ministries/deparhents  of the scheme'
7. Ships  older than 20  years  would  not eligible  for any subsidy  under  the scheme.

8. In view of the enlarged scope of the Scheme this Ministry shall seek allocationofsuchadditionalfundsfromtheDepartmentofExpenditureas may be required.
9. The scheme would be reviewed  after 5 years'
3. (d) & (e) Yes Sir. The said Scheme  is expected  to increase tonnage in lndian flag andtherebybenefitalllndianseafarersbycreatingmorejobopportunities and more training  slots for  young lndian cadet  boys and girls'