Lok Sabha Question No. 288 (STARRED), answered on 2022-08-05
Subject: Promotion of Coastal Shipping
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Thalikkottai Rajuthevar Baalu

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

## LOK SABHA STARRED QUESTION  NO.  -288

ANSWERED  ONO5IO8I2O22

## PROMOTION  OF COASTAL SHIPPING

## -288,  SHRI T.R, BAALU:

Will the Minister  of PORTS,  SHIPPING  AND WATERWAYS be pteased to state: qf,r,  +d  ql[{C{ Gi-{ qf,cr{  {f

- (a) whether the Government has any comprehensive  plan to promote coastal shipping along the 7500 Kms long coastlne  of the country to harness the shipping  potential  to relieve excessive pressure  on roads and railways for the movement  of cargo;
- (b) if so, the details thereof  including new policies and strategies envisaged along with the success  in this regard  leading to increased  traffic movement  in the last three  years;  and
- (c) the details of the Government's assistance and support  to increase  coastal shipping by other sectors/  agencies including  the private  sector?

## ANSWER

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

- (a) to (c) A statement is laid on the Table of the House.

STATEMENT  REFERRED  TO lN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO-'288 TO BE ANSWERED ON O5TH AUGUST 2022 RAISED BY SHRI. T.R. BMLU REGARDING'PROMOTION  OF COASTAL SHIPPING',

- (a),(b)&(c) Coastal shipping is fuel efficient and environment-friend  ly mode of transport. Promotion  of coastal  shipping is a  priority  area of the Ministry. Under Sagarmala Programme, various initiatives  and projects  have been undertaken to facilitate  shifting  of cargo from conventional land-based  transportation  to coastal  shipping mode. The Ministry of Ports,  Shipping and Waterways has identified a potential  of 340 MTPA cargo movement  by coastal shipping. ln the year  2014-15, lndian  ports handled about 74.97 Million Tonnes per Annum (MTPA) of coastal cargo which has increased  to 133 MTPA (increased by 77o/o)  in 2021-22.

The Government  has taken following measures  to enhance  coastal  shipping:

- i. The Coastal  Berth Scheme  under the Sagarmala Programme  provides financial assistance for creation  of infrastructure  to  promote  movement  of cargo/passengers  by Sea/National Waterways.  Under the Sagarmala Programme 55 projects worth Rs.2565 crore has been sanctioned  for the development  of Coastal  Berths, Ro-Ro/Ro-Pax  Jetttes, Passenger  Jetties  etc. Out of which 14 prolects worth Rs 753 Cr have been completed.
- ii. Licensing relaxation under section  407 of the Merchant shipping  Act is given  to container vessels for carrying EXIM containers  and empty containers  at transhipment ports for outbound  transport; and to foreign flag vessels carrying Agricultural, fisheries, horticultural,  fertilizers and animal  produce commodities  subject to the condition  that these  commodities  constitute  at least 50% of the cargo on board the ship at the beginning of the coastal  leg.
- iii.  A discount  of 40% is offered by major ports  on vessel and cargo related  charges  to coastal  cargo vessels.
- iv. Priority berthing policy for coastal  vessels  has been notified to reduce turnaround  time for coastal  vessels  and improve their utilization.
- v. Reduction  of GST on bunker fuels used in lndian  Flag Vessels  from l8% to 5%.
- vi. Green  channel  clearance  introduced  for faster evacuation  of coastal  cargo at ports
- vii. Allowed reimbursement of freight  subsidy  on primary movement of subsidized urea and P&K fertilizers by coastal shipping  or inland water transportation.
- viii. The projects  for improvement in the first and last mile road and rail connectivity with all the major and non-malor  ports have also been identified for faster cargo movement. Ministry of Ports, Shipping and WateMays is working with Ministry of Railways  and Ministry  of Road Transport and Highways  to implement  these projects.

These policy measures have resulted in the increase  in coastal cargo movement.  ln last three years, the cargo movement by coastal shipping has increased  from 105 MTPA  in 2018-19  to 133 MTPA  in2021-22.