Lok Sabha Question No. 1502 (UNSTARRED), answered on 2023-07-28
Subject: Promotion of Coastal Shipping
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Gomati Sai

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1502

ANSWERED ON 28/07/2023

## PROMOTION OF COASTAL SHIPPING

1502. SHRIMATI GOMATI SAI:

Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state:

## पȅन , पोत पįरवहन और जलमागŊ मंũी

- (a) whether  the  Government  has  formulated  any  new  comprehensive  plan  to promote  coastal  shipping  along  the  7500  kilometer  long  coastline  of  the  country  for movement of cargo so as to reduce the overburdened roads and Railways;
- (b) if  so,  the  details  thereof  along  with  the  details  of  new  policies  and  strategies envisaged in this regard; (c) the extent to which the success has been achieved in this regard during the last three years resulting in increase in aquatic traffic movement; and the assistance provided by the Government to the private sector/other agencies
- (d) for enhancement of coastal shipping by them?

## ANSWER

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

(a)  to  (d)  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 coastal shipping:

- (i) The Coastal Berth Scheme under the Sagarmala Programme provides financial assistance for creation of infrastructure to promote movement ofcargo/passengers by Sea/National Waterways. Under the Sagarmala Programme,75projectsworth 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  clearanceintroduced  for  faster  evacuation  of  coastal  cargo  at ports.
- (vii) Allowed  reimbursement  of  freightsubsidy  on  primary  movement  of  subsidized urea and P&K fertilizers by coastal shippingor 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.

The details of the coastal cargo traffic for last three years are as under:

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

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