Lok Sabha Question No. 2039 (UNSTARRED), answered on 2024-08-02
Subject: Promotion of Coastal Shipping
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Dr. Hemant Vishnu Savara

## GOVERNMENT OF INDIA MINISTRY OF PORT SHIPPING AND WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO- 2039

ANSWERED ON - 02/08/2024

## PROMOTION OF COASTAL SHIPPING

## 2039.  Dr. HEMANT VISHNU SAVARA:

Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state: पȅन , पोत पįरवहन और जलमागŊ मंũी

- (a)   whether the Government is actively pursuing the promotion of coastal shipping as an energy-efficient and cost-effective mode of transport;
- (b) if  so,  details  thereof  and  the  measures  taken/proposed  to  be  taken  by  the Government to enhance coastal shipping; and
- (c) the percentage increase in the cargo handling in the national waterways during last five years, year-wise?

## ANSWER

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

- (a) & (b) The  Ministry  of  Ports,  Shipping  and  Waterways  is  actively  pursuing  the promotion  of  coastal  shipping  as  an  energy-efficient  and  cost-effective  mode  of transport.    In  this  regard,  the  Government  has  taken  following  measures  to  enhance coastal shipping:
- (i) Under the Sagarmala Programme, 15 projects worth Rs. 849 crores have been completed for the development of coastal berths, Ro-Ro/ Ro-Pax Jetties/Passengers Jetties.
- (ii) Licensing relaxation under section 407 of the Merchant Shipping Act is given to container vessels for carrying EXIM  containers and empty  containers at transshipment 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 Indian Flag Vessels from 18% 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-major ports have also been identified for faster cargo movement. The Ministry of Ports, Shipping and Waterways is working with the Ministry of Railways and Ministry of Road Transport and Highways to implement these projects.
- (c)  The percentage increase in the cargo handling in the national waterways during last 5 year is as under:

|   Sl. No. | Financial Year   | Cargo handled on NWs   | %increased   |
|-----------|------------------|------------------------|--------------|
|         1 | 2018-19          | 72.31 MMT              | -            |
|         2 | 2019-20          | 73.64 MMT              | 1.83%        |
|         3 | 2020-21          | 83.61 MMT              | 13.54%       |
|         4 | 2021-22          | 108.79 MMT             | 30.11%       |
|         5 | 2022-23          | 126.15 MMT             | 15.96%       |
|         6 | 2023-24          | 133.03 MMT             | 5.45%        |

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