Lok Sabha Question No. 344 (UNSTARRED), answered on 2023-02-03
Subject: Growth in Domestic Shipping Industry
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Rajendra Agrawal

## GOVERNMENT  OF INDIA

## MINISTRY  OF PORTS, SHIPPING AND WATERWAYS

## LOK SABHA

## UNSTARRED  QUESTION  NO. 344

ANSWERED  ON O3IO2I2O23

## GROWTH IN DOMESTIC SHIPPING INDUSTRY

## 344, SHRI RAJENDRA  AGRAWAL:

Will the Minister  of PORTS,  SHtpptNG  AND WATERWAYS be  pteased  to state; [f,{,  rird qr{i-f{ oiR  q-mcFi  Fm

- (a)  whether  there.is positive  groMh in domestic  shipping industry;
- (b) if so, the details  thereof:
- (c)  the details  of shipping  companies  that are presenfly  in profit  and in debt respectively,
- in debt; and
- (d)  whether the Government  has taken any remedial-measures  for shipping companies
- (e) if so, the details  thereo?

## ANSWER

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

- (a)  to  (e) There has been a positive  groMh  in the domestic shipping lndustry over the past years.The  details of ships registered  under lndian flag in the last three years  are as below;

| Year         | Coastal   | Coastal       | Overseas   | Overseas      | Total   | Total        |
|--------------|-----------|---------------|------------|---------------|---------|--------------|
|              | Ships     | Gross Tonnage | Ships      | Gross Tonnage | Ships   | Gross Tonnae |
| 31.12.2015   | 972       | 14,79,692     | 457        | 1,12,66,341   | 1 ,429  | 1,27,46,033  |
| 31.12.202C   | 998       | 16,72,581     | 465        | 1,13,37 ,811  | 1463    | 1,30,10,392  |
| 3',1.12 2021 | 1027      | 15,60,021     | 464        | 1,14,34,863   | 1,491   | 1,29,94,884  |
| 31 .12.2022  | 1034      | 15,78,235     | 486        | 1 ,21 ,13,039 | 1520    | I ,36,91,274 |

TheGovernmenthastakenthefollowingmajorstepstoincreasethetonnageunder lndian flag :-

## (i) Revision  of the criteria  for R'qht or Flrsr reru:'crr^vr  ''r' r Riqht of Ejl9! ROFR):

rhe criteria for  grantins tn" nisnt Ji  EilJ  in ".n'n:l1n-",1"^"1t-1tli:1Yll|i:#:; ,J;":5::  l':"';1:l'!1J i''l."*"i"n  tonnase under tndr"l Ir"9  1d ship-buirdins  in lndia, so as to make lndia "n otrnu-ni'in'a""li  reliant  Bharat' in telTs of tonnage  and shio-buildlng  in lndra. The tottowlni  is the revised  hierarchy  of RoFR  with the highest prilrity  to tn-Oia  ou,tt  lndian  flag  (lndian owned)  vessels:

- (1) ln;ian built, lndian flagged  (lndian owned);
2. iZ!  for"ign  built, lndian flagged  (lndian  owned);

This wll  promote  demand  of tnOial iuitt and lndian  flag vessels as  such vessels  will have the  priority  in chartering  ano  witt aiso  provide  additional  market  access  and business support  to shiPS built in lndia'

- (3; lndian built.  {orergn  flagged  (foreign  owned)'

## (ii)  Ship Buildino  Financial  Assistance  Policv  (2016-20261:

"li""ir"""ip,", Under  the  policy, the financial  assistance  extended  would  be reduced  by 3% every three years.

-.. Government ol lndia has app'oued=--th" Financ'al  Assistance  Policy for lndian shipyards on  gth  December  2015,  for  grant or tiianciat  assistance  to'lndian  Shipyards'  only those vessels  shall be eligible  tor. g"nt ;i-iin"n"ial  assistance'  for which the construction commences  subsequent to the signr;'g oi u"rio "on*""t" Vessels  which  are constructed and delivered  within a  period ot ti'""" Vt"t"  from the date of co  ract are eligible  for availing  financial  assistance 'no"' tiJ-pJl'"v'  ror specialized  vessels'-the  delivery  period can be extended till six years. rinun"lri  ;.",.trn""  shall be  @  20% of the contract  price' oir.  orice  (whichever  is least)  to lndian  shipyards

## ort to lndian shi

A scheme  for the promotion of ftagging  of merchant *i9" 'll11i:'^:tovidins Rs 1624 crore over a period  of five  years  as sJbsidy  support  to lndian  shipping-companies in  global tenders  floated  by Ministries/Depart;;;;'""; Central Public  Sector  Enterprises  (CPSES) ;;;;;;c";;r."ment cargo' The rate of subsidv  is based  on ase of the vessel'

## n ships(iv) P to lndiaLE

lndianandForeignentitiesintendingtoengageforergnflag.vesselsforcoastaltradeof lndia need to have a license '"d"' ";;; ;06"t Meinanisnipping  Act' 1958 from DG Shipping,  Gol. The DGS  issues fo"nt-"  lo t'"h  foreign  flag vessel only after ensuring  that no lndian  vessel is avaitaute tor sucn"tiai"lf'""tio"  t" Ut  plrformed  by foreign  flag vessel' Accordingly,  lndian ships are  given pa"tiiv  uoo""  foreign ships  for such  transportation Because  of this facility, these  entities'and  even shipping  companies  make  an effort to own or register vessels  under lndian flag' This  helps  in increasing  the lndian shipping  tonnage'