Lok Sabha Question No. 508 (UNSTARRED), answered on 2021-07-22
Subject: Tonnage Capacity of Indian Shipping Industry
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Hemant Tukaram Godse

## GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING  & WATERWAYS

## LOK SABHA

## UNSTARRED QUESTION NO. 508

TO BE ANSWERED ON 22ND JULY, 202'I

## TONNAGE CAPACITY  OF INDIAN SHIPPING INDUSTRY

508. SHRI HEMANT  TUKARAM GODSE:

Willthe Minister of PORTS. SHIPPING  AND WATERWAYS  be pleased  to state:

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- (a) whether the Government proposes  to increase  the tonnage capacity of lndian shipping industry;
- (b) ifso, the details thereof; and
- (c) the tonnage  capacity of the shipping  industry in the country during the last three years, year-wise?

## ANSWER

MINISTER  OF STATE IN THE MINISTRYOF PORTS, SHIPPING  AND WATERWAYS (SHRI SHRIPAD NAIK)

- (a) & (b) Yes sir. The various steps taken by the Government, to increase the tonnage capacity  of lndian Shipping industry are as below:
1. The Directorate  General  of Shipping  has issued  a Circular  vide DGS Circular No. 02 of 2021 which deals with the Right of First Refusal (RoFR). Through this circular,  it was stated clearly that the order of  grant  of RoFR shall be (i) lndian built, lndian flagged  (lndian  owned),  (ii)Foreign built, lndian flagged (lndian owned) and (iii) lndian built, Foreign flagged(Foreign  owned). This attracts the business  entities  to build their vessel  in lndia and to  get  them  registered under lndian flag, which  leads to increase in lndia's Tonnage Capacity.
2. Further, to increase lndian Shipping tonnage, Government  has started 'Make in lndia'  programme,  which encourages  domestic  ship-building  by providing  a level  playing field vis-a-vis foreign ship-building  yards. The Government  has been implementing,  the Shipbuilding  Financial Assistance  Policy for lndian ship-building  yards,  since December  2015. This policy has a provision for providing financial assistance  to shipyards over a  period  of 10 years  for contracts secured between  01.04.2016  and 31.O3.2026.
3. lndian and Foreign  entities, intending to engage  foreign flag vessels,  for coastal trade of lndia/Exim  trade, need to have a license under section 406 of MS Act, 1958, from, DG Shipping,  Gol. The license is issued to such foreign flag vessel, only after ensuring  that no matching lndian vessel is available,  for such trade/function,  intended  to be  performed  by foreign flag vessel. Accordingly,  lndian ships are given priority above any foreign ships for such transportation.  Because of this facility, the business entities

and even shipping  companies, are intended to make efforts,  to build own (or register) their vessels  under lndian flag. This helps to increase the lndian shipping tonnage.

4. lndian Shipping enterprises  have also been allowed to acquire ships abroad  and also flag them in the country of their convenience,  under the lndian Controlled Tonnage  [TC]  scheme.
2. (c) The details of tonnage capacity of the country in the last three years, are as below:

| Year        | Coastal   | Coastal       | Overseas   | Overseas      | Total   | Total         |
|-------------|-----------|---------------|------------|---------------|---------|---------------|
|             | Ships     | Gross Tonnage | Ships      | Gross Tonnage | Ships   | Gross Tonnage |
| 3'1.12.2018 | 945       | 14,79,U3      | 456        | 1,12,04,598   | 1401    | 1,26,83,941   |
| 31.12.2019  | 972       | 14,79,692     | 457        | 1,12,66,341   | 1,429   | 1,27,46,033   |
| 31.12.2020  | 998       | 16,72,581     | 465        | 1,13,37,811   | 1463    | 1 ,30,1 0,392 |
| 30.06.202'1 | 1021      | 15,44,522     | 467        | 1,'t4,18,526  | 1488    | 1,29,63,048   |