Lok Sabha Question No. 2619 (UNSTARRED), answered on 2023-08-04
Subject: Coastal Shipping Traffic
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Dileshwar Kamait

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

## LOK SABHA UNSTARRED QUESTION NO. 2619

ANSWERED ON 04.08.2023

## COASTAL SHIPPING TRAFFIC

2619. SHRI DILESHWAR KAMAIT:

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

- (a) whether there has been an increase in the coastal shipping traffic in the last three years and if so, the details thereof; and
- (b) whether the Government is going to take any steps to increase the total freight movement through the water transport in the country and if so, the details thereof?

## ANSWER

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

- (a) Yes Sir. The details of the coastal shipping traffic in the last three years are as under:
- (b) 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  Government  has  taken  following  measures  to  enhance freight movement through coastal shipping:
- (i) The Coastal Berth Scheme under the Sagarmala Programme provides financial assistance for creation of infrastructure to promote movement of

| Coastal Shipping Traffic for last three years (MMTPA)   | Coastal Shipping Traffic for last three years (MMTPA)   | Coastal Shipping Traffic for last three years (MMTPA)   | Coastal Shipping Traffic for last three years (MMTPA)   |
|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| Coastal Cargo                                           | 2020-21                                                 | 2021-22                                                 | 2022-23                                                 |
| Total (MMTPA)                                           | 114                                                     | 133                                                     | 151                                                     |

cargo/passengers by Sea/National Waterways. Under the Sagarmala Programme,  75  projects  worth  Rs.2985  Crore  have  been  sanctioned  for  the development  of  Coastal  Berths,  Ro-Ro/Ro-Pax  Jetties,  Passenger  Jetties  etc. Out of which 15 projects worth Rs 849 Crore 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 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. Ministry of Ports, Shipping and Waterways is working with Ministry of Railways  and  Ministry  of  Road  Transport  and  Highways  to  implement  these projects.

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