Lok Sabha Question No. 1783 (UNSTARRED), answered on 2015-07-30
Subject: Cabotage Restrictions
Ministry: SHIPPING
Asked by: GAJANAN CHANDRAKANT KIRTIKAR, P.R. SUNDARAM, ASHOK SHANKARRAO CHAVAN, KUNWAR HARIBANSH SINGH, SUNIL BALIRAM GAIKWAD, M. UDHAYAKUMAR, SUDHEER GUPTA

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.  1783 TO BE ANSWERED ON  30 TH JULY, 2015

## CABOTAGE RESTRICTION

1783. SHRI GAJANAN KIRTIKAR: SHRI P.R. SUNDARAM: SHRI ASHOK SHANKARRAO CHAVAN: SHRI KUNWAR HARIBANSH SINGH: DR. SUNIL BALIRAM GAIKWAD: ADV. M. UDHAYAKUMAR: SHRI SUDHEER GUPTA:

Will the Minister of SHIPPING be pleased to state:

## पोत प�रवहन मंत्

- (a) the details of cabotage restrictions presently in operation for coasting trade in India;
- (b) the revenue generated by various Port Trusts in the country during each of the last three financial year, Port Trust wise;
- (c) whether the cabotage restrictions have affected the seamless movement of cargo and the earnings of Port Trusts and if so, the details thereof along with the remedial step proposed to be taken in this regard; and
- (d) whether the Government proposes to relax the existing cabotage restrictions and if so, the details thereof including the criteria adopted for the purpose?

## ANSWER

## MINISTER OFSTATE IN THE MINISTRY OF SHIPPING (SHRI  PON RADHAKRISHNAN)

- (a) Presently cabotage restrictions are in place as per Section 407 of the Merchant Shipping Act, 1958 for  coasting  trade  by  foreign  flag  vessels  along  the  Indian  coast.  Section  407  (2)  of  the  Act  provides  for granting of licence for such coasting trade in India to a foreign flag vessel for a specified period or voyage and subject to such conditions as may be specified by the Director General of Shipping. Detailed guidelines in this regard has been issued by the Directorate General of Shipping vide Shipping Development (SD) Circular No. 2 of 2002 and Circular No. 2 of 2007.
- (b) The revenue generated by the Port Trusts during last three financial years are as follows:

(Rs.in Crores)

| PORT            |   2012-2013 |   2013-2014 |   2014-2015 (Provisional) |
|-----------------|-------------|-------------|---------------------------|
| KOLKATA         |     1402.20 |     1896.14 |                   1867.69 |
| PARADIP         |      798.25 |     1068.17 |                   1059.50 |
| VISAKHAPATNAM   |      889.52 |      949.74 |                    924.52 |
| CHENNAI         |      883.68 |      811.76 |                    926.31 |
| VOCHIDAMBARANAR |      409.21 |      424.11 |                    576.17 |
| COCHIN          |      446.04 |      458.58 |                    447.02 |
| NEW MANGALORE   |      431.08 |      406.81 |                    423.20 |
| MARMUGAO        |      246.09 |      217.75 |                    298.58 |
| MUMBAI          |     1679.59 |     1712.48 |                   1572.30 |
| JNPT            |     1495.83 |     1697.72 |                   1757.01 |
| KANDLA          |      982.93 |     1008.05 |                   1048.78 |

(c) The cabotage restrictions have not affected the seamless movement of cargo, as whenever no Indian flag vessel is available for the movement of cargo on the coast of India, permission/license is granted by the Directorate General of Shipping, GoI for engagement of foreign flag vessel for such cargo movement.  The earnings of port trusts are not affected due to cabotage restrictions.

(d) The  Ministry  of  Shipping  has  uploaded  a  note  on  relaxation  of  cabotage  restrictions  on  the Ministry's website and also circulated it to the stakeholders, departments and agencies for comments.

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