Lok Sabha Question No. 405 (UNSTARRED), answered on 2023-07-21
Subject: Promotion of Marine Sector
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Anil Firojiya

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

## LOK SABHA

## UNSTARRED QUESTION  NO. 405 ANSWERED ON21IO7I2O23

## PROMOTION  OF MARINE SECTOR

405. SHRI ANIL FIROJIYA:

Will the Minister  of PORTS,  SHIPPING AND WATERWAYS be pleased to state: qtr{.frdqfttrfl{3fusmcFf  {*

- (a) the efforts being made by the Ministry  to promote marine sector to make it self
- reliant;
- (b) whether any steps have been taken to enhance the working  capacity  of ports, and
- (c) if so, the details  thereof?

## ANSWER

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

(a) to (c)

The Government  of lndia has made concerted  efforts for expansion  and modernisation  of the Marine Sector in the Country. lnfrastructure development in the Marine  Sector is a continuous  process. The process inter-alia  involves the construction of new berths and terminals,  mechanization  of existing berths and terminals, capital dredging for deepening drafts for attracting  large vessels in port channels, development  of road and rail connectivity  etc., help in increasing  the capacity  of major ports. As a result, the cargo handling capacity of the Major Ports has been steadily going up. The Major Ports installed capacity as on 31.3.2023  is 1  ,617 MTPA, which is sufficient to handle the existing  cargo traffic at the Major  ports.

The Government has taken several progressive  steps to improve the standards of maritime  training, examination and certification system, increase  on-board  training opportunities  and welfare  measures  for the seafarers.  Due to these steps, the number of lndian seafarers employed  in this calendar year has reached the record level of 2,82,918  on lndian and foreign flagged vessels.  A few policies  for promotion  of Ship building & lndian flagging of vessels are as follows:

Ship Building Financial Assistance Policy (2016-2026): Government of  India has approved  the Financial  Assistance Policy for lndian Shipyards. Financial assistance is  @  20ok of the contract  price, actual receipts, fair price (whichever is least) to lndian shipyards. The financial  assistance extended  reduces by 3% every three years.

Revision of the criteria for Right of First refusal(ROFR): The criteria for granting the Right of First Refusal in chartering of vessels through tender  process has been revised for promoting tonnage  under lndian flag and ship-building in lndia, so as to make lndia Atma-nirbhar/self-reliant  Bharat, in terms of tonnage and ship-building in lndia. The following is the hierarchy  of RoFR;

- '1)  lndian  built, lndian flagged (lndian owned);
- 2) Foreign built, lndian flagged (lndian  owned);
- 3) lndian  built, foreign  flagged (foreign owned).

This promotes demand of lndian built and lndian  flag vessels as such vessels  have priority in chartering.

Subsidy support to lndian shipping companies: A scheme  for the promotion  of flagging of merchant ships in lndia by providing Rs.1624 crore over a period of five years as subsidy support to lndian shipping companies in global tenders floated by Ministries  and Central  Public Sector Enterprises (CPSEs) has been approved. The rate of subsidy  support is based on age of the vessel. The scheme encourages entrepreneur  to register  ships  under  lndian flag.