Lok Sabha Question No. 1788 (UNSTARRED), answered on 2015-07-30
Subject: Budgetary Allocation
Ministry: SHIPPING
Asked by: V. SATHYABAMA, BHARATENDRA SINGH

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.1788 TO BE ANSWERED ON 30 th  JULY, 2015

## BUDGETARY ALLOCATION

## 1788.        SHRIMATI V. SATHYA BAMA:

KUNWAR BHARATENDRA:

Will the Minister of SHIPPING be pleased to state:

## पोत प�रवहन मंत्

- (a) the budgetary allocation during each of the last three financial years along with the utilization status thereof;
- (b) the details of such funds utilized in various ports in the country, State-wise including Tamil Nadu;
- (c) the reasons for unspent allocations during the said period; and
- (d) the  major  plans  and  schemes  of  the  Government  aimed  at  improving  the  shipping network in the country?

## ANSWER

## MINISTER OF SHIPPING (SHRI NITIN JAIRAM GADKARI)

- (a) The  budgetary  allocation  of  the  Ministry  of  Shipping  during  each  of  the  last  three financial years along with the utilization status thereof is as under:

(Rs. in crore)

|          | 2012-13   | 2012-13   | 2012-13   | 2013-14   | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2014-15   |
|----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
|          | BE        | RE        | Actual    | BE        | RE        | Actual    | BE        | RE        | Actual    |
| Plan     | 812.00    | 502.00    | 495.15    | 846.00    | 530.00    | 491.03    | 899.00    | 450.00    | 442.83    |
| Non-Plan | 867.48    | 403.00    | 388.66    | 866.67    | 1215.03   | 1043.24   | 509.74    | 609.00    | 560.24    |
| Total    | 1679.48   | 905.00    | 883.81    | 1712.67   | 1745.03   | 1534.27   | 1408.74   | 1059.00   | 1003.07   |

(b)&(c):The  details  of  the  funds  utilized  in  various  Government  owned  Major  Ports  in  the country along with reasons for under utilizations are given in the Annexure :

- (d) The following measures initiated by the Government to encourage the Indian shipping companies to own more vessels will improve the Shipping network in the country:
- Acquisition of all type of ships has been brought under the Open General Licence (OGL).
- To attract investment for the growth of the sector, the Government has allowed 100% Foreign Direct Investment (FDI) in the shipping sector.
- Government  has  taken  a  policy  decision  to  allow  shipping  enterprises  based  in India  to  acquire  ships  abroad  and  also  flag  them  in  the  country  of  their convenience.
- Exempting Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels  for  transportation  of  EXIM  and  empty  containers  between  two  or  more ports in India.
- In the Union Budget 2015-16, Government has brought in a uniform abatement of service tax for transportation of goods by rail, road and sea vessels.
- With a view to provide a level playing field to the Indian shipping industry, the government has introduced Tonnage Tax System.

Further,  for  promoting  Coastal  Shipping,  the  Government  has  initiated  a  scheme  in 2015-16 for providing Central Assistance to Major Port Trusts for construction of Coastal berths.

## Budget Allocation

| State/Po                                  | 2012-13   | 2012-13   |        | 2013-14   | 2013-14   |        | 2014-15   | 2014-15   |         | Reasons for under-                                                                                                                                                                                                       |
|-------------------------------------------|-----------|-----------|--------|-----------|-----------|--------|-----------|-----------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| rt                                        | BE        | RE        | Actual | BE        | RE        | Actual | BE        | RE        | Act ual | utilization                                                                                                                                                                                                              |
| Kerala Cochin Port Trust (CoPT)           | 25.00     | 0.00      | 0.00   | 30.00     | 0.00      | 0.00   | 10.00     | 10.00     | 10.0 0  | As the proposal could not be finalized during 2012- 13, the funds earmarkedfor construction of a subway could not be released and in 2013-14 CoPT could not obtain NOC from NHAI for construction of subway.             |
| Odisha Paradip Port Trust                 | 0.00      | 0.00      | 0.00   | 0.00      | 0.00      | 0.00   | 17.00     | 17.00     | 17.0 0  |                                                                                                                                                                                                                          |
| Andhra Pradesh Vishakha patnam Port Trust | 90.00     | 0.00      | 0.00   | 50.00     | 50.00     | 50.00  | 50.00     | 50.00     | 50.0 0  | During 2012- 13, the project for 'Upgradation of Iron Ore Handling facilities' through JICA could not start as the mandatory requirement of JICA norms for appointment of consultant could not materialize. During 2013- |
| Tamil Nadu Tuticorin Port Trust,          | 100.1 3   | 124. 63   | 124.63 | 200.0 0   | 50.00     | 50.00  | 173.00    | 54.44     | 54.4 4  | 14, by the time CCEA approved the project for dredging, the amount available under RE was only Rs. 50 crore. Further the clearance from Ministry                                                                         |

## Annexure

(Rs. in crore)

|                                  |         |         |        |         |         |        |        |        |         | of Environment &Forest for the project was received only in last week of December 2014. Therefore, only Rs. 54.44 crore could be released during 2014- 15.                                                                                                                               |
|----------------------------------|---------|---------|--------|---------|---------|--------|--------|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Tamil Nadu Chennai Port Trust    | 37.82   | 15.0 0  |  15.00 | 15.00   | 15.00   |  15.00 |  15.00 |  15.00 | 15.0 0  | During 2012- 13, amount of Rs. 37.82 crores was kept at BE stage for Capital Dredging. However, at the time of SFC the cost of project came out as Rs. 30 crore. An amount of Rs. 15 crore was released to ChPT as the Port Trust could complete the work worth this amount during 2012- |
| Goa Mormug ao Port Trust         | 0.00    | 0.00    |   0.00 | 110.0 0 | 50.00   |  49.95 |  75.00 |  75.00 | 75.0 0  | During 2013- 14, the project relating to construction of four lanes Port connectivity Road, could not take off.                                                                                                                                                                          |
| West Bengal Kolkata Port Trust * | 337.7 0 | 106. 70 | 110.73 | 385.1 1 | 384.7 6 | 384.20 | 357.27 | 356.67 | 356. 16 | During 2012- 13, the saving was on account of the stand taken by Department of Expenditure that fresh approval of the Cabinet would be required for reimbursement of the subsidy                                                                                                         |

*Non Plan subsidy to Kolkata Port Trust towards maintenance and dredging in Haldia channel and river dredging and maintenance of river Hooghly.