Year Ender-2015
The Ministry of Shipping has taken many proactive and progressive interventions in the areas of ship building, port development, inland waterways and coastal shipping this year for the development of the maritime sector in the country. These initiatives can be summarized under the following heads:
PROMOTING EASE OF DOING BUSINESS
This has been at the core of the efforts of the Ministry during the year. Focus has been on simplifying procedures by removing irritants that make it cumbersome to carry on business smoothly. The major highlights in this regard are:
1. Re Rolled Steel From Ship Breaking Allowed For Ship Building -To meet the growing demand for steel by ship and barge builders, the Ministry decided that re-rolled steel obtained from re-cycling yards/ship breaking units would be certified for use in construction of inland barges, river sea vessels (RSV Types 1 & 2) and port and harbour crafts, after ascertaining its sourcing and processing. This will help in bringing down the cost of constructions of barges, river sea vessels and port and harbour crafts.
2. Ship Repair Units No Longer Required To Register With DG Shipping-The Ministry simplified the procedure and eliminated the requirement of registration of Ship Repair Units (SRUs) with Directorate General (Shipping). Ministry of Finance and Ministry of Commerce & Industry have been informed to extend concessions and facilities to SRUs without insisting on the requirement of registration with DG (Shipping).
3. Obsolete rules under the Merchant Shipping Act weeded out -The Ministry of Shipping has decided to rescind thirteen rules under the Merchant Shipping Act,1958 (as amended), having found them to be obsolete and unnecessary.
4. Customs and Excise Duty Exempted on the Use of Bunker Fuels -
This tax incentive for transportation along the coast will go a long way in enhancing Indian tonnage as well as in promoting development of transportation hubs in India.
This tax incentive for transportation along the coast will go a long way in enhancing Indian tonnage as well as in promoting development of transportation hubs in India.
5. Cabotage Relaxed for Special Vessels
The Government has relaxed cabotage for special vessels such as Roll-On Roll-Off (Ro-Ro), Hybrid Roll-On Roll-Off (Hybrid Ro-Ro), Roll-On Roll-Off cum Passenger (Ro-Pax), Pure Car Carriers, Pure Car and Truck Carriers, LNG vessels and Over-Dimensional cargo or Project Cargo Carriers for a period of five years. With this relaxation, vessel operators will be allowed to bring foreign flagged vessels of this category to ply on the coastal routes. Such special vessels are in short supply in the country but since they cater to specific class of cargo, their availability will make it possible to shift cargo movement for these commodities from road and rail to coastal shipping.
6. E governance initiatives –
· Online application, processing and issuance of chartering permission.
· Registration certificate to transport operators is also being issued online.
· Online Collection of Light Dues -, Directorate General of Lighthouses and Lightships (DGLL) has now facilitated the payment of Light dues through online mode. Syndicate Bank has been accredited to collect the Light dues through online banking.
MAKE IN INDIA INITIATIVES
Many initiatives have been taken up in the area of ship building and manufacture of dredgers, promoting the objectives of Make in India
1. Product Diversification by Cochin Shipyard Ltd.-
· CSL has received license from GTT of France of Mark III Flex technology for making cargo containment systems for LNG carriers.
· CSL has entered into a technology tie up with Samsung Heavy Industry of Republic of Korea for manufacture of LNG vessels. With the above two initiatives CSL becomes the first port in India to manufacture LNG carrying vessels.
· CSL has manufactured six Fast Patrol Vessels for the Indian Coast Guard and one Platform Supply Vessel
· CSL has undertaken a project to build a passenger ship of 1200 capacity for Andaman & Nicobar Islands
· CSL has entered into a technology tie up with IHC Holland BV for manufacturing dredgers.
· CSL has constructed a state of the art Buoy Tender Vessel for Directorate General of Lighthouses and Lightships
2. Inputs used in Ship Manufacturing and Repair Exempted from Customs and Central Excise Duties –
Inputs used in ship manufacturing and repair have been exempted from Customs and Central Excise Duties with effect from the 24th of Novembe, 2015. Prior to this exemption, while ships could be imported at almost negligible rates of Basic Customs Duty (BCD) and nil rates of Countervailing Duty (CVD), the inputs used in ship manufacturing and repair attracted normal rates of BCD and CVD. This put the Indian shipyards, who build ships for the domestic market, at a cost disadvantage. Correction of this inverted duty structure was therefore necessary.
INITIATIVES IN PORT SECTOR
1. Performance of ports improves –
After a fall in their performance during 2008-14, the performance of major ports showed improvement in 2015. The focus of the present government is on modernization of Major Ports and increasing their operational efficiency. With new initiatives Major Ports have shown an improvement in their performance with the volume of cargo handled increasing by 4.6% and revenue increasing by 8.7% in 2015.
2. Sagarmala Project –
The Sagarmala project has received approval of the Cabinet on 25th March, 2015. The project envisages port-led development including development of Special Economic Zones, FTWZs, rail, road, and water connectivity with the hinterland, with linkages to tourism & other related sectors, port-led industrialization, port based urbanization, coastal tourism, coastal shipping, fisheries, recreational activities. A Project Development Consultant has been engaged for preparation of National Perspective Plan. The activities of the PDC include mapping out of origin destination study of key cargo in Indian ports and developing traffic scenario for a period of 20 years, development of a 2035 ‘Port Master Plan’, identification of 5-6 mega port locations, identification of 2-3 suitable locations for development of maritime clusters and preparation of a master plan for two identified ‘Coastal Economic Clusters’ (one on east coast and other on west coast of India), development of a port led industrial development plan etc.Targets for 2015-16 under the Sagarmala Project are as follows:
· Finalization of National Perspective Plan with traffic forecast, Port capacity required till 2030, potential for trans-shipment, bunkering and coastal & inland waterways.
· Techno-economic feasibility report for selected 3 new Port locations.
· Formation of Sagarmala Development Company and Port Rail Company.
· Implementation of strategy for setting up Trans-shipment Hub(s).
· Implementation of at least 10 projects for Port led development, evacuation, light house tourism and skill development.
· Preparation of development plan for Islands & Palm cultivation.
The 1st meeting of the National Sagarmala Apex Committee (NSAC) was held on 5th October, 2015.
3. Mechanisation of East Quay (EQ) Berths-1, 2 and 3 at Paradip Port
The Cabinet Committee on Economic Affairs (CCEA), approved the project of Mechanisation of East Quay (EQ) Berths-1, 2 and 3 at Paradip Port on Build, Operate and Transfer (BOT) basis, under Public Private Partnership (PPP) mode' for handling thermal coal exports. The estimated cost of the project is Rs.1437.76 crore of which Rs. 1412.76 crore will be spent by the concessionaire. The remaining Rs.25 crore will be spent by the Paradip Port Trust on dredging. The project envisages mechanization of EQ 1, 2 and 3 Berths to increase their capacity from the existing 7.85 million tonnes to 30 million tonnes. The project is scheduled to be completed within three years from the date of award of concession. After completion of the project, the total thermal coal export handling capacity at Paradip Port will reach 50 million tonnes. This will help the port to meet the growing demand of thermal coal over the next three to four years.
3. Deepening Draft to Handle Large Vessels –
Major ports are undertaking studies to deepen the draft to 18 meters to handle large and modern vessels. Projects for deepening have been started at Mormugao Port, New Mangalore Port.
4. Establishment of Dry Ports –
The purpose of dry ports is to reduce congestion at ports by processing and completing bulk of the formalities relating to cargo here so that ships can set sail without delay at the sea ports. Dry ports are proposed to be set up at Jalna and Wardha to service JNPT
5. Special Purpose Vehicle to provide efficient rail evacuation systems to Major Ports:
Government has approved Special Purpose Vehicle (SPV) to provide efficient rail evacuation systems to Major Ports and thereby enhance their handling capacity and efficiency. The SPV would undertake the following Projects:-
· Last mile connectivity to Major Ports;
· Modernization of evacuation infrastructure in Ports;
· To operate and manage internal Port Railway system;
· To raise financial resources for funding Port related Railway Projects
6. Financial Assistance to Major Ports for Pollution Response Equipment
The Government has formulated a new central sector scheme for providing financial assistance to all Major Ports and 26 oil handling non-major ports under State Maritime Boards/State Governments. The scheme would help them procure Pollution Response (PR) equipment/materials necessary for combating Tier-I oil spills in their waters.
Under the scheme, the ports have been put into categories A, B and C based on the risk of oil spill, in consultation with Indian Coast Guard. Financial assistance up to 50% of the cost of the equipment/materials, necessary to mitigate pollution due to oil spills, is provided to the ports.
Under the scheme, the ports have been put into categories A, B and C based on the risk of oil spill, in consultation with Indian Coast Guard. Financial assistance up to 50% of the cost of the equipment/materials, necessary to mitigate pollution due to oil spills, is provided to the ports.
7. Initial Public Offer of Cochin Shipyard Limited –
The Cabinet Committee on Economic Affairs has given its approval for issue of an Initial Public Offer (IPO) of Cochin Shipyard Limited (CSL). The approval is for issue of an IPO to the public consisting of 3,39,84,000 equity shares of Rs. 10 each amounting to an equity capital of Rs. 33.984 crore of CSL consisting of fresh issue of 2,26,56,000 equity shares and sale of Government of India's stake in CSL worth 1,13,28,000 equity shares of Rs. 10, through a public offering in the domestic market according to Securities and Exchange Board of India (SEBI) rules and regulations.
INLAND WATERWAYS
1. Bill To Declare 106 Additional Inland Waterways As National Waterways
Lok Sabha has passed the National Waterways Bill 2015, for declaration of 106 inland waterways as National Waterways. After the inclusion of 106 additional inlands waterways to the existing five national waterways, the total number of national waterways will go upto 111. The aim is to create cost-effective and eco friendly waterways to ease the burden on roads and railways.
2. Allahabad-Haldia Ganga Waterways Projects
In the Budget Speech for 2014-15, it was announced that a project on the river Ganga called ‘Jal Marg Vikas’ (National Waterways-I) would be developed between Allahabad and Haldia to cover a distance of 1,620 kms, which would enable commercial navigation of at least 1,500 tonne vessels and that the project would be completed over a period of six years at an estimated cost of Rs.4,200 crore. The Project’s objective is to provide an environment friendly, fuel efficient and cost-effective alternative mode of transportation, especially for bulk goods, hazardous goods, captive cargo and over dimensional cargo.
Government has commissioned three expert studies to assess the interventions required to achieve greater clarity on the entire project and its impacts. These studies are (i) Detailed Feasibility Study on NW-1 and Detailed Engineering for its Ancillary Works; (ii) Environmental and Social Impact Assessment (ESIA), Environmental Mitigation Plan (EMP) and Resettlement Action Plan (RAP); and (iii) IWT Sector Development Strategy and Market Development Study. In addition, Inland Waterways Authority of India, which is the implementing agency of the project, has conducted comprehensive stakeholder meetings at Kolkata, Varanasi, Patna, Delhi and Farakka, wherein valuable feedback of environmentalists, industry, academics and the wider society was obtained. The projects include construction of terminals, jetties, river training and conservancy works, modern automated information system, navigation aids, etc. The construction of the projects is expected to commence from March, 2016 and the last projects to be taken up may extend up to five years.
3. MoU Signed For Logistic Hubs With Rail Connectivity
A Memorandum of Understanding (MoU) has been signed between the Inland Waterways Authority of India (IWAI) and the Dedicated Freight Corridor Corporation of India (DFCCIL) for creation of logistic hubs with rail connectivity at Varanasi and other places on National Waterways. This is expected to lead to convergence of inland waterways with rail and road connectivity and provide a seamless, efficient and cost effective cargo transportation solution
4. Development of Inland Shipping Port at Jalore, Rajasthan
The Inland Waterways Authority of India proposes to guide and support Rajasthan government for building an Inland Shipping Port at Jalore. The port and the terminal that are to be created will help develop inland navigation facilities in western Rajasthan and will also bring about socio-economic development of the region. Business development opportunities along the canal for limestone, gypsum, lignite and cement factories are to be explored by the state government.
5. Introduction of Merchant Shipping (Amendment) Bill, 2015 and accession to (Ballast Water Management Convention)
The Union Cabinet has approved the introduction of the Merchant Shipping (Amendment) Bill, 2015 and accession to the International Convention for the Control and Management of Ships' Ballast Water and Sediments, 2004 (Ballast Water Management Convention) of International Maritime Organization (IMO).
The Convention requires all new ships to implement an approved Ballast Water and Sediments Management Plan.
The Convention requires all new ships to implement an approved Ballast Water and Sediments Management Plan.
SPECIAL INITIATIVES
1. Development of Chahbahar Port in Iran
India signed an MoU with Iran for developing Chahbahar Port. An SPV, Indian Ports Global Ltd has been formed with equity participation from Jawaharlal Nehru Port and Kandla Port to execute the project.
2. MoU with Republic of Korea on Maritime Transport
An MoU was signed with Republic of Korea to promote bilateral cooperation in maritime transport.
3. Coastal Shipping Agreement with Bangladesh –
India signed an agreement on coastal shipping with Bangladesh. This agreement would allow River Sea Vessels (RSV) to carry cargo between the two neighbours. In terms of berthing charges and light dues, both the countries would extend national treatment to one another. The commencement of coastal shipping between the two countries would give a boost to Exim trade between India and Bangladesh. The two countries also signed the Standard Operating Procedure (SOP) to operationalize the “Agreement on Coastal Shipping.
4. India and Bangladesh Initial a Draft MoU on Passenger and Cruise Services on Coastal and Protocol Route
5. Agreement between India and Egypt on Maritime Transport
The Union Cabinet has given its approval for signing of an agreement between India and Egypt on Maritime Transport. Recognizing the significant mutual benefit that can be derived from-cooperation in the area of shipping between the two countries, it has been decided to sign the Agreement with a view to strengthening cooperation and to render sustained mutual assistance and advice on merchant shipping and other related maritime matters.
MoU between India and Spain on cooperation in Port matters –
The Union Cabinet has given its approval for signing of a Memorandum of Understanding (MoU) between India and Spain on cooperation in Port matters.
6. Agreement between India and Jordan on maritime transport
The Union Cabinet has approved signing of a shipping agreement between India and Jordan. Recognizing the significant mutual benefit that can be derived from cooperation in the area of shipping between the two countries, it has been decided to sign the agreement with a view to strengthening cooperation and to provide sustained mutual assistance and advice on merchant shipping and other related maritime matters.
7. Ministry of Shipping to develop 78 lighthouses as tourism centers
The Ministry of Shipping, along with the Directorate General of Lighthouses and Lightships (DGLL) has drawn up an ambitious programme to develop 78 lighthouses in the country as centres of tourism in the first phase under Public Private Partnership (PPP). The identified lighthouses are in Gujarat, Maharashtra, Goa, Karnataka, Kerala, Lakshadweep, Tamil Nadu, Puducherry, Andhra Pradesh, Odisha, West Bengal and Andaman and Nicobar Islands.
8. India and Bangladesh Agree on Extension of Protocol on Inland Water Transit and Trade
India and Bangladesh have agreed on the extension of Protocol on Inland Water Transit and Trade (PIWTT) with the provision of automatic renewal in line with the proposed amendment to the Bangladesh-India trade agreement during a Secretary-level talk between the two countries.
SECURITY
1. Ratification of International Labour Organisation Convention No. 185 on the Seafarers Identity Document
The Union Cabinet has approved the Ratification of the International Labour Organisation (ILO) Convention No. 185 on the Seafarers Identity Document (SID). A biometric based seafarer's identity document will be developed, mainly, to ensure a foolproof security system to ward off the potential risk of breach of security and possible terrorist attacks. India's ratification of this Convention will benefit Indian seafarers, who may otherwise find a threat to their job opportunities, in the near future, in the global maritime sector if India doesn't ratify the Convention.
2. Re-Drawal of the High Risk Area in the Indian Ocean
International bodies have agreed to India’s efforts to push back the High Risk Area (HRA) from 78 degrees East longitude to the 65 degrees East longitude. This will result in huge savings for India’s EXIM trade and consumers on account of reduced insurance premium and consequently freight costs. This will be a major gain for India on global maritime stage, resulting in a saving of about Rs. 1500 crore per annum for merchant ships
Courtesy:pib.nic.in
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