I OVERVIEW
1.1 INTRODUCTION
1.1.1 Infrastructure
plays an important part in fuelling economic growth. In particular, transportation is a critical infrastructure, as it has
backward and forward linkages for connectivity of production centers and
markets, at home and abroad.
1.1.2 The
importance of maritime infrastructure in facilitating international trade is
well recognized. It is observed that about 95% by volume and 70% by value of the
country’s trade is carried on through
maritime transport. Having regard to the current level of India’s share in global merchandise trade at
around 0.67%, the strengthening of the maritime infrastructure would have a
favourable impact on the country’s trade front and also on economic growth. The
country’s long coastline of around 7517 kms. spread on the western and eastern
shelves of the mainland and also along the Islands is a natural resource capable of being harnessed for the country’s
trade and tourism development.
1.1.3 The
maritime sector of the country encompasses, inter alia, ports (major and non-major), shipping (overseas
and coastal), inland water transport, navigational aids besides trained
manpower engaged in the operations of the maritime sector, on board and ashore. The entries relating to the development of
maritime ports are in the Seventh Schedule of the Constitution of India and
therefore under the purview of the Centre and the States as well.
1.1.4 Policies
of the Central Govt. regarding the maritime sector have in the past addressed
issues of mismatches of capacities and traffic at major ports, acquisition of
shipping tonnage for facilitating cargo carriage, the need to encourage inland
water transport and positioning of navigational aids as warranted from time to
time. The programmes in each of these
sub-sectors had been structured as part of Plan schemes of the Ministry of
Shipping (in the present form as also in the erstwhile Ministry of
Transport/Ministry of Surface Transport).
1.1.5 The
liberalization in economic policies initiated in the 1990s provided the impetus
to the maritime sector whereby private public partnerships have been encouraged
in provision of port and handling facilities; side by side, the emergence of
non-major ports through proactive policies of some of the maritime States have
also ushered in a steadily growing share of maritime traffic handled at these
ports, especially through private investment and by units for captive use of
jetties and terminals.
1.2 APPROACH
1.2.1 Based
on the experience of over 50 years of development efforts mainly by the Union
Government and also by select maritime States and the potential of the maritime
sector in facilitating economic growth, it is felt that the policy framework regarding ports, shipping
and inland water transport should be purposive to induct modern technology and
achieve increased levels of synergy and coordination. The policy would address not
only issues for strengthening the sector through synergies of initiatives of
the Centre and the States but also encourage the flow of investments into the
sector - for upgradation of infrastructure and for modernization of facilities
in respect of maritime ports, shipping and IWT sectors. In addition, the policy
would help assure the status and efficiency of fixed and mobile maritime
infrastructure and as a concomitant, ensure that investments in human capital optimize
the country’s factor and resource endowments.
As part of this comprehensive strategy towards building a vibrant and
responsive maritime sector, reliable contractual procedures with built in
safeguards would also be positioned, wherever required, to encourage
competition. The prevalence of an
independent judicial system of the country assures a transparent and healthy operational environment. Wherever
required, favourable fiscal reliefs would also be provided.
1.2.2 Considering
the fact that cargo movement from different modes within the country utilize
more than one mode of transport to reach the maritime port for exports (and
vice versa in respect of imports) and the increasing recourse towards picking
up and reaching the cargo at the door of
origin/destination, the need for synergies amongst the different modes of
transport for such multi-modal transportation is well established. This would require rationalization of the
provisions of Multi-Modal Transportation of Goods Act, 1993, to support easy
transportation and documentation through different modes of transport.
1.2.3 At
the present juncture, the policy for maritime sector would also need to
emphasise the complementary roles of the modes in sharp contrast to merely
competitive functioning. The supplementary, and sometime competing, modes of
transport like road, rail, air and pipelines need to be integrated with water
transport. Policy on a common platform encompassing the entire transport
network spanning different modes and addressing critical issues such as
pricing, timely deliveries and cost effective service need to be
positioned. In short, a holistic
approach would have to be adopted with due emphasis on the role and effectivity
of maritime transport.
1.3 OBJECTIVES
1.3.1 The
Policy for the maritime sector would emphasise the importance of cost effective
movement of cargoes, transparency of decisions on objective considerations in
matters of investment decisions, the efficiency of operations of the
infrastructure as well as the relevance of core competent maritime personnel. The programmes under the Policy would address
the following :-
(i)
Modernizing
the existing ports and upgrading their facilities in order to bring them on par
with the leading ports of the world.
(ii) Developing new ports in order to fully
utilize the vast coastline of the country and the available draft for deriving
the maximum economic advantage.
(iii) Promoting hinterland connectivity to ensure
least-distance access of the country’s cargo to the ports and also offer choice
of ports in the region and terminals inside the ports to Trade.
(iv) Fostering Port specialization and inter-port
complementarity for overall optimization of port facilities and the efficiency at
the Ports.
(v) Facilitating the increased flow of private
investment, both domestic and foreign, and at the same time ensure a
competitive environment that would preclude prospects of emergence of
monopolies.
(vi) Providing for institutional safeguards for
the port infrastructure provider (public authorities/private sector – be it
domestic or foreign/joint ventures) regarding investments and ensuring
compliance of service standards to the users.
(vii) Promoting multimodal transport in the interest
of time and cost efficiency.
(viii) Facilitating
the acquisition of Indian tonnage for securing a significant share for the
country in world tonnage and for increasing the share of Indian bottoms in the carriage
of the country’s overseas traffic through cargo support to Indian flag vessels.
(ix) Promoting and strengthening shipbuilding,
ship-repair and ship-breaking activities.
(x) Providing the necessary infrastructure for
turning out qualified Indian maritime personnel of globally acknowledged
excellence to benefit from the growing demand of both foreign and Indian flag
vessels for such human capital.
(xi) Developing and integrating inland waterways
to the national transport network comprising of maritime outlets as well as
other points of interface with other surface transport modes.
(xii) Building
appropriate institutions to support Training, R&D and other activities
necessary to sub-serve and sustain the Shipping and Port sectors.
(xiii) Assuring the state of the art navigational aids
at the country’s coastline with a view to encourage increased flow of coastal
and overseas maritime traffic at Indian ports.
II. PORTS
2.1 Ports
provide an interface between the ocean transport and land-based transport. In
the initial years, the traffic was being handled mostly at major ports. However, over the years, non-major ports have
also witnessed growth in traffic. The
growth in the cargo handled at Indian ports has increased from a level of 19.38
million tonnes (major ports) in 1950-51 to around 457.96 million tonnes (major
and non-major ports) by 2003-04. The
share of traffic at major and non-major ports stood around 345 and 113 million
tonnes respectively.
2.2 At
present the 12 Major Ports (Kolkata/Haldia, Paradip, Visakhapatnam, Ennore, Chennai, Tuticorin, New
Mangalore, Cochin, Mormugao, Mumbai and Jawaharlal
Nehru and Kandla) handle about 75 % of maritime cargo of the country. With infusion of new technology and
capacity-building, the congestion at Indian Ports witnessed in the 1990s has
reduced in some places and operational efficiency has also improved leading to
capacities being marginally ahead of demand.
However, with the projected growth of traffic and growing
containerization, there is need to expand the capacities in the sector through
investment from both public and private sectors.
2.3 The
policy proposes to adopt a holistic approach for the development of port sector covering aspects of integrated
development, connectivity, organizational and institutional arrangements,
etc.
2.4 DEVELOPMENT AND AUGMENTATION OF INFRASTRUCTURE
2.4.1 Integrated Development
2.4.1.1 Management of existing major ports and their facilities will
be addressed through comprehensive master plan for each port. Berths will be
planned for future needs only in line with such master plan of the port concerned.
2.4.1.2 Since problems faced by individual ports differ, these would have
to be tackled and further growth planned depending on the specific requirement
and not on a one-size-fits-all policy. In this, substantial changes that have
occurred in the operating and urban environment around the older ports and the
shift of traffic towards the new emergent
ports in the vicinity would also have to be factored in. (For Example, Mumbai and Chennai ports have to
come to terms with the role of JNPT and Ennore ports, respectively. Similarly,
Kolkata Dock System will have to reconcile with shift of major share of its
cargo to Haldia Dock System. This would
call for suitably redesigning the future of the old colonial ports. Large manpower with these old
ports and the real estate have also to be set on a clear course for
rationalization, and development, respectively. Ports of Kandla, Vizag and
Paradip face challenges of different nature and have to upgrade and modernize
their manpower, management and asset-base, including berths, equipment and draft. Ports like Cochin, Mormugoa and Mangalore face limitations
of commodity composition and customer base).
National Sea-Waterways
2.4.1.3 National Sea-Waterways (on the lines of National Highways)
along the coast would be developed; this would be funded by the Central
Government and provision made for maintenance of channel depths at major ports
in the first instance.
Minor Ports and Other Issues
2.4.1.4 In order to avoid
unhealthy competition and to protect the territories of major ports, no new
minor port may be carved out of the territory of a major port. Similarly, no minor port, or a part thereof
will be converted into a major port without the consent of the respective State
Government. Criteria will be prescribed for declaration of minor ports as major
ports.
2.4.1.5 Possibility of extending financial support for the development
of minor ports will be explored.
2.4.1.6 As the policy envisages integrated development of facilities
in the port sector covering both major and non-major ports, synergies would be
developed for avoiding unhealthy competition.
2.4.1.7 Development of ports would take into account the need for ensuring
equitable geographical development, optimal utilization of existing assets and
avoidance of unbalanced growth of
individual ports.
2.4.1.8 Development of new ports and
new facilities within old ports as necessary, will be encouraged.
2.4.1.9 With a view to optimize the
use of presently available handling equipment at different ports, inter-port
transfer of assets including to minor ports, would be permitted at book value,
as earlier decided by the Maritime States Development Council.
2.4.1.10 Mechanism to coordinate the
development between major ports and minor ports will be strengthened. Maritime States Development Council (MSDC), under
the Chairmanship of the Union Minister for Shipping and comprising all
Ministers dealing with ports in the States as Members, has been constituted on
the basis of an administrative order. This will be converted into a statutory
advisory body and membership will be expanded to include representatives from
trade and commerce. Recommendations of the Council, if not implemented, will be
brought back to the Council for its information and directions.
2.4.1.11 A centralized cell will be set up in
the Ministry to secure and analyze the data for major and non-major ports for
regular monitoring to serve as inputs for making policy adjustments, whenever
need arises.
2.4.1.12 Trans-shipment of Indian
cargo taking place outside the country at present, will be encouraged to be
handled at Indian ports through
concerted measures. These would include increasing
the draft available at Indian Ports,
rationalization of port-dues, providing differential levels of tariff for
different sizes of vessels or for different cargoes to attract mother ships to
berth at Indian ports.
2.4.2 Connectivity
2.4.2.1 With increasing unitization of cargoes, either in the form of
containers or through ever-increasing ship size for single commodities, the
evacuation and handling of cargoes have become critical for the port
functioning. Therefore, the resultant
connectivity issues will be addressed.
Apart from according priority to rail and road connection to the ports, the port authorities would be encouraged to
participate in the equity of Special Purpose Vehicles (SPVs)/Joint Ventures
(JVs), formed to provide hinterland connectivity.
2.4.2.2 Monopoly situations in areas of port connectivity, such as is
enjoyed by CONCOR or any private tolled road, will be suitably addressed to
enable competition as well as improvement in quality and efficiency of such
linkages.
2.4.2.3 Special Purpose Vehicles (SPVs) will not be allowed to develop
into monopolies. The policy would provide for bringing in additional investors
and competition, as may be warranted.
2.4.2.4 For ensuring that benefits of competition are available to
users of ports/terminal facilities, safeguards would be provided to ensure that
terminals which are operated by private parties/sector set up through SPVs do
not become captive facilities but continue as public utility.
2.4.3 Dredging Policy
2.4.3.1 Presently most of
the dredging requirements of Major Ports particularly maintenance dredging are
met by the Dredging Corporation of India. Measures will be taken
to promote Indian dredging industry including the private sector so as to
provide competitive dredging at the least cost.
2.4.3.2 Major Ports will
also be required to contract out maintenance dredging for a long term of say three
years, which will encourage private companies to procure dredgers and
equipments, besides enabling ports to obtain competitive rates.
2.4.3.3 In the medium
term of about 5 years, Major Ports, excepting
Kolkata, will be required to invite tenders
for their dredging requirements, instead of giving the work on nomination
basis. Right of first refusal will be provided to Indian dredging companies to
match the lowest foreign tender, without differentiating between a public
company and a private company, provided their bids are within a prescribed
band. Such preferential treatment to Indian companies will be provided
initially for a period of five years, so that they can grow and compete with
foreign dredging companies.
2.4.3.4 Indian private dredging
companies will also be provided conducive fiscal regime to facilitate their
growth. Efforts will be made to get exemption for first five years from any
additional percentage of tax when they form a joint venture.
2.4.4 Land Policy
2.4.4.1 The Land Policy for
Major Port Trusts shall ensure that
i.
Full
powers are delegated to the ports for leasing of land upto 30 years and that
the lease rent is reasonable.
ii.
The
land is allotted following the tender procedure for all fresh allotments
excepting in certain identified areas where it could also be allotted on
nomination basis.
iii.
Allotment
of land is generally on upfront premium basis. However, Port shall also have
the flexibility of allotting the land on annual lease rental basis under
certain circumstances.
iv.
Ports
shall be allowed to renew lease in favour of sitting occupants even though the
original lessees are no more occupying the premises.
v.
Ports
shall be allowed to sublet/partially sublet the leased premises subject to
fulfillment of certain conditions.
vi.
Change
of use of leased land would be permitted subject to fulfillment of certain
conditions.
vii.
Dispensing
with the Minimum Guaranteed Throughput (MGT) requirement, in those cases which
were finalized in the past, would be allowed subject to fulfillment of certain
conditions.
viii.
For
renewal of leases, a simple transparent system will be followed.
ix.
Port
land will not be given for religious purposes/activities.
2.4.5 Single Point Moorings (SPM)
2.4.5.1 With the increasing demand of crude oil
requirements of Indian oil industry, the infrastructure facilities at Major
Ports of the country need to be
strengthened for handling crude oil. In view of this, the policy for
establishment of SPMs would be facilitative; it is also proposed that a private
SPM need not necessarily be within either major or non-major port limits.
2.4.6 Private Sector Participation :
2.4.6.1 Private Sector participation in ports and the modalities
governing the same will be laid down in clear and comprehensive terms.
Cost-plus approach for laying down tariff by TAMP will be studied and improved
upon to adopt reasonable methods of earning profit by the private investor. Gradually cost-plus approach will be replaced
by normative approach, starting at first in container-handling facilities.
Monopolies of any sort will be prevented and competition encouraged.
2.4.6.2 Since
private sector investment is expected to lead to efficiency and competition, it
is necessary to ensure that these result into tangible benefits to the users in
terms of cost reduction. The policy
would endeavour to bring in both inter-port as well as intra-port competition
so that users have a choice not only among ports and even operators within the
same port. In case there is only a
single terminal/facility at a particular
port, it would have one operator. However, wherever the second terminal is to
be set up at the same port, the existing terminal operator would be excluded to
ensure competition. If there are a minimum
of two private operators in any port, no restriction would be placed on the
existing operators to bid for the subsequent terminal, subject to the condition
that a single private operator will not be allowed to operate more than two
terminals at the same port or 1600
metres of quay length.
2.4.6.3 In
the case of container terminals, minimum quay-length is required to optimize
utilization of the facility. Hence, a quay-length
of 800 meters in a straight line will be
considered wherever possible for one container terminal in future. This however
will not apply to existing terminals and the existing private terminal
operators, while eligible, would have no rightful claim for any additional
quay-length if the present quay-lengths are lesser.
2.4.6.4 Concession agreements with private operators, in future, would
include a clause on scope to handle operations outside the terminal in certain
emergencies such as strikes/breakdowns etc. so that Trade is not put to
inconvenience.
2.4.6.5 As captive berths of break bulk or dry bulk cargo for large
users could lead to concentration of control in very limited private foreign or
private domestic companies, this possibility will be discouraged. As in US, EU,
Japan or China, there would be differentiation
between captive terminals and common user terminals, for development of both types
depending upon the needs.
2.4.6.6 Generally port projects will be awarded through tender
route. However, assets may be leased out
on nomination basis, particularly for captive facilities. In such cases, revenue
sharing will be preferred over royalty payment.
Preference to Indian parties may be given except in transshipment ports
of JNPT, Chennai and Cochin.
In case of lease of existing facilities, it will be obligatory on the
part of the lessee that surplus workers are taken on the rolls by the successful
bidder; workers’ emoluments with the
lessee will not be lower than the emoluments they were getting in the port.
Ports will be entitled to design a policy for workers who refuse to exercise
the option to move over to the private terminals, considering that the work for
which they were employed by the Port does not exist any longer. As regards Minimum Guaranteed Throughput
(MGT), it will be open for the concerned port to decide whether to lay down MGT
or otherwise; however, penalty for failure to achieve MGT may be made flexible.
2.5 ORGANISATIONAL AND INSTITUTIONAL ISSUES :
Directorate General of Ports
2.5.1 Having
regard to the growing importance of maritime transport and the criticality of
port infrastructure, a separate Directorate General of Ports functioning under
the Ministry of Shipping (on the same lines of the presently functioning
Directorate General of Shipping looking after issues concerning shipping
sector) would be constituted. Such an authority would be set up after examining
the modalities and the scope of activities that would be consistent with the
provisions in the Concurrent List of the Constitution. Its mandate would include policy and its implementation
for all Ports (including non-major ports, private ports/terminals and fishing
ports) in the country.
Port Trusts
2.5.2 The
existing organizational structure for major ports (Port Trusts constituted
under the Major Port Trusts Act) would be improved. Wherever considered necessary,
corporatisation would be effected through suitable enabling legislative amendments to the Major Port
Trusts Act, 1963.
2.5.3 Since
maritime ports are essentially service providers, the present arrangements for
representation of user interests as trustees in major ports would be reviewed
to enhance the levels of their participation.
2.5.4 The
institutional/administrative arrangements for Ports other than major ports would
also be studied to make them flexible for growth. Corporatisation of the all ports
administered by respective State Govt. would be pursued so that these ports do not remain as departmental
undertakings of the State Maritime Boards. All the Maritime States would be
required to set up Maritime Boards to become eligible for any assistance from
the Centre.
2.5.5 As
successful functioning of ports in existing competitive environment would
depend on quick decision-making, adequate powers would be delegated to the port
authorities so that business decisions on day-to-day matters are taken at the port
level, leaving only policy issues to the Central Govt. for guidance or
decision.
2.5.6 Special Economic Zone (SEZ):
2.5.6.1 Select ports will be declared as SEZs (in
consultation with the Ministry of Commerce). The land requirement for SEZ in
ports will be suitably modified. The Deputy Chairmen of such ports will be
declared the Development Commissioners for the notified SEZs. Private capital
will be allowed to develop the infrastructure for setting up of the SEZ within
the port. Efforts will be made to incorporate these provisions in the SEZ Act.
2.5.7 Supply Chain Management :
2.5.7.1 As supply chain management has a direct bearing on the trade
and the economy, a suitable mechanism will be evolved to consider and initiate
action on developments affecting the supply chain management. In this regard, the Ministry will take
proactive steps so that it is consulted for its views before decisions are taken such as those
concerning :
i) Setting
up/closing down of an ICD.
ii) Suspension
of service by railways.
iii) Special
treatment for perishable goods/reefers.
iv)
Alteration
in war risk premium etc or in marine insurance.
v)
Increase
in Terminal Handling Charges.
vi)
Increase
in fees relating to documentation on transport to or from ports
vii)
Freight
forwarding/consolidation and de-consolidation
2.5.8 Electronic Data
Interchange (EDI) :
2.5.8.1 Electronic Data Interchange (EDI) will be implemented at
all the major ports of India.
In the first phase, the ports, where containers are handled, would be covered. In the second phase, EDI will be implemented
in all the remaining ports and for all the remaining cargoes e.g. liquid and dry bulk.
2.5.8.2 The EDI will cover areas of
internal computerization, port-customs interface, port-bank-port users
interface and port-port users interface.
2.5.8.3 A uniform and common web
based EDI solution greatly reducing the scope of human interface in delivery of
services will be implemented for the port sector to ensure that the port users do
not have to visit the Port for transacting routine business. The system would standardize
messages within the country and also internationally. A repository of information will also be
built and regularly updated for the benefit of Port users.
2.6 MANPOWER/INDUSTRIAL RELATIONS AND TRAINING :
2.6.1 Dock Labour Boards
2.6.1.1 At present Dock Labour Boards are functioning at Calcutta, Visakhapatnam and Kandla. The Bombay Dock Labour Board has been superseded.
The Dock Workers {Regulation of Employment (inapplicability to Major Port
Trusts)} Act 1997 provides for merger of Dock Labour Boards. To provide for interchangeability of Dock
Workers with Port Workers, the existing Dock Labour Boards will be merged with
the respective Port Trusts.
2.6.2 Productivity
Linked Reward for Port Workers :
2.6.2.1 The present scheme of
payment of Productivity Linked Reward is based on certain productivity
parameters which are calculated on all India basis. However, the scheme needs to be made more
realistic so that the reward is actually linked to the productivity. As the payment is made out of the resources
of the Port Trusts and since each Major Port Trust is an independent entity,
the Productivity Linked Reward would be calculated on the performance based on
productivity parameters of individual Port Trusts.
2.6.3 Training :
2.6.3.1 The training of port
officers and employees would be given due importance. There would be
induction/foundation courses for new entrants and departmental promotees. The curriculum of training programme would be
designed to cover multifarious activities carried out at a port. Refresher courses would also be conducted at
regular intervals to keep pace with the latest developments. Successful completion of training courses
would be made mandatory for promotions to higher levels. Training Institutions
will be encouraged to collaborate with their well reputed counterparts abroad
for upgrading skills of both trainers and trainees.
2.6.4 Recruitment
& Promotion :
2.6.4.1 In order to facilitate
mobility of manpower from one port to the other, appointments at senior levels
will be effected through a composite method where eligible officers from all
Major Ports fulfilling the criteria would be considered. Recruitment and promotion rules of such
appointments shall also be standardised.
2.6.5 Pension
2.6.5.1 In order to provide
fair and equitable treatment, pension in the port sector would be on the lines
of pension scheme in the Central Govt.
2.6.6
Incentives
2.6.6.1 The performance of the port officers/personnel of the
ports would be monitored by the
respective ports regularly and incentives in the form of award/memento for each
year would be awarded.
2.6.7 Stevedoring
2.6.7.1 The policy on stevedoring will be laid down. The system by
which workers are employed by stevedores will be liberalized. Rational manning norms would be developed.
Workers will be given incentives only on actual work done, considering the
cargo-handling equipment used for carrying out the work. Time and motion studies
will be carried out in each port as early as possible of the work done by the
labour with the cargo-handling equipment for different commodities, and wages
will be worked out based on such studies beginning with next financial year.
The stevedores will be permitted to bring in additional manpower, in addition
to port/dock workers, from open market, if necessary.
2.7 FINANCIAL AND FISCAL
INITIATIVES :
2.7.1 Private Sector Participation
2.7.1.1 Guidelines are already in force regarding private sector
participation in port/terminal facilities.
Having regard to the immense potential for development of facilities at
ports on the Indian coastline, private-public partnerships would be encouraged. The decision making powers of Port Trusts in
financial matters would also be reviewed from time to time, as warranted.
2.7.2 Tariff
2.7.2.1 The fear of private investors that increase in efficiency and
productivity might result in reduction of tariff by TAMP will be addressed;
also increase in efficiency and productivity would be rewarded.
2.7.2.2 The functioning of TAMP would be strengthened so that uniform
and transparent norms prevail in matters of tariff fixation as well as in prescription
of quality of service for applicability to port authorities/terminal operators
to ensure that the needs of the users of the facility and profitability to the facility provider are
met.
2.7.2.3 Trade would be consulted before any charges affecting them are
implemented at the Ports. For this purpose, if need be, amendments to the relevant
statutes will be made. However, there will be no control or regulation on
shipping freight. Where shipping lines do business which extends beyond the
sea, that is, on land in India, they will also be subject to
control like any other agent of any other mode of transport.
2.8 INTERFACE WITH TRADE/USERS INTERESTS :
2.8.1
Ports play a vital role in the EXIM trade.
Delays at the ports have far reaching implications (both quantifiable
and non-quantifiable) for the importers and exporters. It is, therefore, felt necessary to put in
place a mechanism whereby the users and trade interests have a bigger role to
play. Shippers’ Councils and
Port-Users’ Organizations would need to
be strengthened; on the lines of other federations, it is also possible to
promote a Federation of Indian Maritime Organizations (FIMO). The policy would ensure that regular meeting
with the exporters/importers at different levels are held besides making the consultations
with the user and trade interests as mandatory before proposing any increase in
the tariff.
2.9 INTERNATIONAL
COOPERATION
2.9.1 Sister Ports
2.9.1.1 Major
Ports will be encouraged to enter into sister port relationship with ports in
other countries, particularly with those ports, which have similar features and
with whom Indian ports share cargoes.
Visits by officers of foreign ports will be allowed and prior clearance
of Ministry of External Affairs/Ministry of Home Affairs will be obtained only
where the foreigners are likely to stay for longer periods at Indian ports.
2.9.2 Membership of International Organisations
2.9.2.1 The
Ministry of Shipping and the different Major Ports would take up
membership of international organizations like International Association of
Ports and Harbours (IAPH) & PIANC so as to remain updated with the latest
happenings in the world.
2.9.2.2 Core
competence of resource persons would be developed in various fields by exposing
the selected persons to
developments/events in the international maritime sector.
2.9.3 Security &
Safety
2.9.3.1 ISPS
Code : It will be ensured that Indian Ports adhere to IMO conventions in the
area of security/ISPS.
2.9.3.2 Adequate
facilities will be developed to deal with oil spill management in the ports.
2.9.3.3 Measures
will be taken for wreak removal in the port areas as and when warranted.
2.9.3.4 Only those
ships which have P&I cover, would be allowed to enter Indian ports.
2.9.3.5 Facilities
would also be developed for dumping of waste etc.
2.9.3.6 Clean
and dirty cargo will be handled on
separate berths in the ports. Special facilities would be developed for
handling of hazardous cargo.
2.10 OTHER ISSUES
2.10.1 Co-ordination With Other Transport Modes
2.10.1.1 Many countries have a single Ministry of
Transport, covering all the modes of transport. Since it would be difficult in
a large country like India, a
permanent forum for ensuring inter-modal coordination would be set up
where the policy-makers of all these modes of transport come together -- to
learn from, and respond to, the latest transport technology and trends in the
country and abroad.
2.10.2 Fisheries Harbours
2.10.2.1 At present fisheries as a subject comes under
the Ministry of Agriculture. Since
fisheries harbours so notified are also in the contiguous zone of regular
maritime ports, it would be necessary to ensure that their functioning do not
conflict. The policy for development of
fisheries harbours would also form part of an integrated maritime policy.
2.10.3 Cruise Shipping
2.10.3.1 Cruise shipping is emerging the world over as a mode of tourism
. With a long coastline dotted with
beautiful tourist spots and beaches, India will be ideally suited for
development of cruise shipping.
2.10.3.2 Promotion of cruise shipping will therefore get special
attention. Ports will have the flexibility to offer concessional rates for promoting
cruise shipping. Cruise terminals would be constructed and all facilities to
promote cruise shipping will be carried out at the ports. These would be
complemented by activities outside the port premises and would include planning
and coordination with Tourism departments of the Centre and State to promote
‘fly and cruise’ type of tourism. The
suitably planned cruise tourism itinerary could also include visits to World
Heritage sites in India through suitably established linkages
with other forms of tourism such as Palace on Wheels, or the Konkan Odyssey.
Immigration and custom procedures will be simplified to promote cruise tourism
to cover as many Indian ports as possible. Efforts will be made to get the
immigration officers in different ports empowered to give the visa and stay
permits on the spot.
2.10.3.3 Cruise shipping both foreign and domestic will be encouraged in
a big way to promote tourism with attendant linkages of development of terminal
facilities at ports and also of ship sails.
III SHIPPING
AND MARITIME TRAINING
3.1 India at present is ranked 17th
Maritime nation in the world. The total
tonnage under Indian Flag has remained stagnant since 1996 at around 6 to 7
million GRT. The importance of Shipping
can be gauged from the fact that the maritime trade is carried on through the shipping
mode. In addition, shipping sector is an
important foreign exchange earner; it also offers great potential for
employment generation both at home and abroad on board and ashore. The sector needs focused policy support
through simplification of procedures and providing cargo support to promote
shipping and also to derive benefits of 100% FDI permissibility.
3.2 Coastal
shipping is eco-friendly, cost-effective and fuel efficient mode of
transport. It can gainfully provide
connectivity as well as transportation along the country’s coast line and also to
the islands of Andaman and Nicobar and Lakshadweep.
The low share of cargo carried at present by coastal shipping (a mere
7%) in our country when contrasted with the shares in advanced countries
accounting for as much as 30-40% of the total traffic, underscores the
potential of coastal shipping as a viable mode.
Since coastal shipping also has potential for employment generation, the
provision of a favourable policy environment would catalyse growth and
employment.
3.3 The policy in the shipping
sector aims to expand Indian tonnage,
maximize flow of investments (domestic and foreign) and assure the emergence of
core competent and globally accepted maritime personnel. The thrust of the policy would comprise of
the following :-
(i) Replacing old vessels and adding new
vessels to the Indian fleet.
(ii) Provision of level playing field to shipping
sector in terms of taxation and creating an environment whereby share of Indian
bottoms in the EXIM trade grows
(iii) Keeping
in view the global shortage of about 5000 officers over 10 years, as projected
in BIMCO survey, the country would endeavour to meet the requirements of trained
maritime personnel worldwide and accordingly strengthen the human resource
development component.
(iv) The policy would promote coastal shipping to enable raising its share in
the movement of inland cargo from 7% as of now to around 15% by the year 2025.
3.4 To
achieve the objectives in this area, it is proposed to initiate action on
issues covering augmentation of fleet and infrastructure, organizational and
statutory arrangements, fiscal and financial initiatives, interface with trade
interests, manpower training, issues concerning international co-operation, etc.
3.5 DEVELOPMENT/AUGMENTATION
OF INFRASTRUCTURE :
3.5.1 Concerted effort would be made
for positioning a favourable environment for expansion of Indian tonnage. A level playing field to shipping sector in
terms of fiscal treatment would be assured; in addition, institutional and
infrastructure strengthening and facilitating ship acquisition in both public
and private sectors would guide the policy and programmes.
3.5.2 Priority would be accorded for
replacement of old vessels in a time bound manner and also for acquisition of
new vessels so that Indian fleet increases from the present level of
around 7 million GT to 10 million GT in
the next 3-5 years.
3.5.3 In line with the global
experience where the containerized traffic is increasing, Indian shipping
companies will be encouraged to increase their tonnage of container ships.
3.5.4 Policy for LNG Shipping will
provide a regulatory environment for participation of Indian companies and
transportation of LNG to India on Indian flag.
3.5.5 Offshore shipping policy will
be finalised with a view to promote Indian tonnage in offshore supply vessels
(OSVs) and also of activities, training
and export of manpower with expertise in offshore shipping.
3.5.6 BBCD is a facilitative method
of acquisition of ships whenever the financing cost is either very high or when
External Commercial Borrowings are difficult.
The existing BBCD policy would be
reviewed in respect of issues concerning
flagging of BBCD vessels, manning them, preference of BBCD vessels vis-à-vis
foreign flag vessels in respect of cargo allocation etc. and would be
rationalized. This together with
suitably designed package of fiscal incentives could facilitate acquisition of
additional tonnage through this route by the new as well as comparatively
smaller investors.
3.5.7 The procedure of registration
of vessels would be simplified and made user-friendly through suitable
amendment of the relevant part of the Merchant Shipping Act.
3.5.8 Keeping in view ever
increasing demand for passenger ships to the A&N and Lakshdweep Islands, additional ships of this category will
be added to the fleet. The requirements of different ships will be standardised
to make acquisition cost effective and fast.
3.5.9 Since rail and road are
already saturated modes of transport, efforts will be made to promote Coastal Shipping by creating
infrastructure for integrating shipping
with other modes of transport.
3.5.10 Dedicated Terminals for coastal
shipping will be constructed at ports so that coastal ships do not have to wait
for berthing.
3.5.11 Minor ports will be
developed with a view to promote coastal shipping through a centrally sponsored
scheme.
3.5.12 The navigational aids will
be modernized to facilitate ship movements in Indian waters. Vessel Traffic System (VTS) is proposed to be
opened in increasing number in India to meet the needs of growing marine
traffic. Such VTS will be established in
eastern and southern regions and also in the Gulf of Khambhat to cater to increased navigational
needs of marine traffic.
3.5.13 Provision of night
navigational aids near the shore and port boundaries can lead to entry of more
and more ships to the ports. Suitable scheme would be designed and
operationalised for this purpose. In
order to have effective information system along the coast of India, coastal
stations through BSNL or suitable agencies will be set up to receive messages
from ships.
3.6 ORGANISATIONAL AND
INSTITUTIONAL ISSUES :
3.6.1 A regional MMD office headed
by Principal Officer, MMD will be opened in eight main maritime States;
similarly district level MMDs would be reorganised to cater to the needs of
maritime constituencies. This would
provide for strengthening the maritime administration in the country.
3.6.2 Full fledged Shipping Master's
office at all Major Ports will be opened so that the seafarers are able to get CDCs issued timely without having to secure only
from Mumbai as at present.
3.6.3 The strength of ship
surveyors will be increased on a rational and realistic formula so that a
minimum of 20% of foreign flag ships
calling on Indian ports and 15% of Indian flag ships both foreign going and
coastal are inspected mandatorily.
3.6.4 With a view to India becoming an active member of the IMO
and contributing to the decision making process at IMO, a permanent
representative office in IMO, London will be established.
3.6.5 Having regard to the
tremendous surge in shipping activities in Indian waters, the risk of marine
accidents including oil slicks has also increased. It is proposed to establish a Maritime
Accident Investigation Bureau to lend transparency and urgency to the
investigating process.
3.6.6 In view of the increased security
concerns in Indian waters, it is proposed to position an uniformed Marine Police Force; wherever necessary,
Maritime Police Stations will be opened for this purpose for regular presence.
3.6.7 National Shipping Board will
be suitably strengthened and empowered to ensure that it plays a vital role in
development of shipping and also the development of interface of shipping with
exporters, importers and other national level trade associations/bodies. Areas on which the recommendations of the
Board will be mandatorily required as an input for policy formulation and those
on which their recommendation would be of advisory nature, would be
identified. The Merchant Shipping Act would
be suitably amended to incorporate this arrangement and also making provision
for the strengthening and empowerment of the Board.
3.6.8 Since VTSs are planned at
various centres, a Vessel Traffic System Authority of India will be established
as a statutory body to provide necessary regulation for uniformity and
benchmarking to the system.
3.6.9 A clear cut marine insurance
policy will be adopted with attendent legislative provisions, if so required to
facilitate activities relating to maritime insurance and related activities in
the country.
3.7 MANPOWER AND TRAINING
3.7.1 The emerging global shortage
of qualified shipping personnel provides immense scope to India since India is a leading supplier of trained
seafarers. In view of this, the concept
of Maritime University will be developed, taking into
account Indian conditions and two such universities – one on the east coast and
the other on the west coast of India would be established.
3.7.2 As it is essential to build up
a pool of maritime experts in related fields, at least ten or more training
slots would be ensured in internationally reputed institutes like World
Maritime University (WMU) and International Maritime Law Institute
(IMLI). Efforts will be made to
establish parallel campuses and franchises in India in collaboration with these
institutes. Integrated financial
packages from the public/private sector will be made available to the deserving
trainees. Chairs for specific studies
will be established at premier institutions in India (Indian Institutes of Technology at Kharagpur, Mumbai and Chennai where subjects
related to maritime sector are already pursued) so that specialized faculties
in various subjects are built up.
3.7.3 Keeping in view the urgent
demand of students opting for seafaring as a career, examination centers will
be opened in important major cities of the country.
3.7.4 Efforts would be made to introduce
a regular pension scheme for seafarers, which would not entail any financial
liability for the Govt. Such a scheme would
be prepared in consultation with the representative bodies of seafarers and
ship-owners. For this purpose, either a
separate pension scheme will be formulated or the present Seamen Provident Fund
Act Scheme under the Seamen Provident Fund Act will be amended to include
pension/annuity in its mandate.
3.7.5 Aggressive marketing strategy
will be pursued for employing our seafarers abroad. In this context,
information modules, CDs, brochures and documentaries will be developed for
roadshows to market our seafarers on foreign flag ships.
3.7.6 Shipping as a career will be
popularized in schools and fishermen communities. Exhibitions, museums,
literature and paintings relating to shipping activities will be promoted.
3.7.7 Measures will be put in place
for employment of ex-Navy personnel
in Merchant Navy.
3.8 FINANCIAL AND FISCAL ISSUES :
3.8.1 In the Shipping and Maritime
Training sectors as far as possible
investments from private sector will be encouraged.
3.8.2 However, for certain
activities like establishment of new MMDs, Maritime University, VTS etc. Gross Budgetary
Support(GBS) will be provided.
3.8.3 The
Government has already introduced Tonnage Tax for the shipping industry for
vessels registered under Merchant Shipping Act, as a measure for ensuring level
playing field for Indian shipping companies vis-à-vis global shipping companies.
The Government would also address other structural issues such as
taxation of Indian seafarers, service tax, withholding tax, etc. to ensure
growth of tonnage; it would also
facilitate availability of competitive freight rates to the end-user.
3.8.4All Indian Seafarers employed in foreign going shipping should be
exempt from Income Tax provisions, provided he remits US$10000 per annum into India.
3.8.5 In shipping, 60 to 80 per cent
of the cost of ships is financed through External Commercial Borrowings
(ECB). Lenders require payments of
instalments and interest payment net of all Indian taxes; therefore the entire
burden of withholding tax on the interest of the ECB falls on the
borrower. This raises the interest cost
of ECBs. Shipping companies would be
provided exemption from this withholding tax either by making a special general
provision in the Income Tax Act or they would be given specific exemption u/s
10(15)(iv)© of the IT Act as they were being given prior to 1.6.2001, which
will enable them to make payment of interest to external lenders without any
tax liability.
3.8.6 Income from chartering of
vessels including BBCD vessels will be exempted from Sales Tax (VAT)/royalty
payments.
3.8.7 Special dispensation in the shape of special
rates in the ports will be provided for coastal cargoes and coastal shipping.
3.8.8 Dues
will be delinked from those charged for foreign-going ships. Notwithstanding what
is mentioned in the Customs Act, the voyages on the coastal stretch will be
exempted from payment of lighthouse dues. This will be exempted even if on the
coastal run the ship is carrying containers or cargo picked up abroad, provided
the voyage is from one Indian port to another.
3.8.9 Duty
free bunker will be made available for coastal vessels as is the case with foreign going vessels in Indian waters.
3.8.10 Duty free import of spares/stores/equipment related to coastal
vessels will be allowed.
3.8.11 Coastal shipping will be promoted through a reduction of dues
vis-à-vis other categories of ships at various ports.
3.8.12 There will be no need for conversion under Customs’ Act for Indian
foreign-flag vessels to coastal leg run in order to save time and costs in the
interest of exim trade and coastal shipping.
3.8.13 Coastal Shipping Development Fund with a corpus of Rs.500 crores
will be set up to provide finance on soft terms for acquisition of coastal
vessels.
3.9 INTERFACE
WITH TRADE INTERESTS
3.9.1 Shipping is a complex industry
and is truly international in character.
While the Govt. would not regulate the commercial aspect of shipping, especially
freight, it would however facilitate emergence of a code of conduct in the
nature of “self-regulation” through consultations between shipping lines with
shippers among themselves.
3.9.2 The policy of the Govt. would be to ensure
that decisions are taken in a transparent manner and at the same time striking
a balance between the potential conflicting interests of transport service
providers and service users. For
ensuring this, Govt. will pro-actively
help the shippers in organizing themselves for empowerment, through assistance
for research and studies on developments in international shipping across the
world and for providing greater and regular access to information relating to
developments in shipping, containerization, multi-modal transport,
technologies, documentary requirements etc. This would facilitate the regional
and national Shippers’ Councils to articulate and safeguard the interests of the
exporters/importers as well.
3.9.3 These Shippers’ Councils would be promoted not only for conducting
negotiations with shipping lines about freight etc. but also for protecting
shippers’ specific interests vis-à-vis other Governmental agencies, regulatory bodies and parastatal institutions
e.g. Ports, Railways, TAMP, Customs, ICDs, CFSs, IWAI, etc.
3.9.4 Cooperation of UNCTAD and
ESCAP would also be sought in empowering the Shippers Council and fostering
greater cooperation between various Regional and National Councils.
3.9.5 As part of the policy, the Govt.
would favour regular consultations every quarter between all major shipping
lines and the National and Regional Shippers’ Councils wherein all important
issues of mutual interest may be decided through consultations. Shipping lines not participating in this
consultation process or not honouring the decisions of this consultation
process, could be identified for suitable follow up action.
3.10 INTERNATIONAL
COOPERATION
3.10.1 All pending IMO conventions
will be taken up for scrutiny and ratified, if required, with consequential
updation of national laws.
3.10.2 Shipping activities will be included under the relevant
provisions of ‘The Territorial Waters Continental Shelf, EEZ, other Maritime
Zones Act, 1976’ so that consequential
benefits are also available to this Sector.
Since the notifications are issued under this Act, relevant provisions
from maritime legislation especially M.S. Act will be included in such
notifications to promote Indian shipping and to regulate foreign-owned shipping
in EEZ of India.
3.10.3 Section 150 of MS Act
will be amended to ensure avoidance of unnecessary
litigation without jeopardizing the rights of
seamen. This would address the present tendency to approach the courts
for appointing a tribunal for workers’
disputes in shipping and seafaring.
3.10.4 Section 21 of MS Act would be
reviewed and amended if necessary, for including the concept of “Joint Ownership
of Ship” with every foreign shipping line touching Indian shores .
3.10.5 The provisions and scope of
the Multi Modal Transport of Goods Act and Bill of Lading Act will be amended
to meet the aspirations of the sector.
MMTG Act would be reformulated on the lines of FIATA Bill of Lading which is an
internationally accepted instrument.
3.10.6 Admiralty Act of India will
be enacted keeping in mind the recommendations of Law Commission of India and
requirements of the Shipping sector
which will free it from colonial laws.
3.10.7 Bilateral/and Multilateral
Maritime agreements with other countries would be improved upon for
safeguarding and promoting Indian Maritime Interests.
3.10.8 Possibility of having another International Register/Open Register
will be explored to attract more tonnage keeping in view
availability of 100% FDI in the sector. The M.S. Act will be suitably
amended for the purpose.
3.10.9 Particularly Sensitive Sea Areas
(PSSA) will be identified along the coasts of India, with special attention to the eastern
coast and around Andaman & Nicobar and Lakshadweep Islands keeping in view the necessity to
protect the natural habitat and environment.
3.11 OTHER ISSUES
3.11.1 Sailing Vessels
3.11.1.1 Sailing vessels industry in India is age-old. Despite its potential for providing job opportunities to a large number of people, it
has not received due attention and priority. A comprehensive policy package
will be put in place which will provide,
inter-alia, the status of industry to this activity so that financial
institutions could advance loans to them easily; also facilitating carriage of
captive cargo would assure a place for sailing vessels.
3.11.2 Fishing Vessels
3.11.2.1 Fishing vessels are also a neglected category
in terms of safety of navigation,
training and welfare measures, despite
the fact that a large number
of semi-skilled and unskilled people are
employed in this industry. Efforts will
be made to widen the spectrum of jobs
for fishermen in merchant navy through suitable training and education. Laws and regulations covering this
Sector will be made uniform throughout
the country in order to overcome the
present difficulties and also to address
issues of safety of navigation, training and welfare measures for the
crew. Efforts would also be made in consultation with Ministry of Agriculture to ratify
Torremolinos Convention and STCW-F and undertake
updation of national laws accordingly.
3.11.3 Chartering and Cargo Support
3.11.3.1 Policy of FOB imports by Government Departments and Public
Sector Undertakings and centralized shipping arrangements through TRANSCHART
(Ministry of Shipping) and cargo support to Indian ships will continue.
IV. SHIPBUILDING AND SHIP-
REPAIR
4.1 Shipbuilding
Industry is a highly competitive business.
Globally it is observed to be generally supported by national policies
and subsidies; without Government support, the growth and sustenance of shipbuilding industry
would be difficult. The geographical profile of the industry evinces locational
changes. Shipbuilding industries have
shifted from Europe to Japan, Korea and Singapore in 70s and to China in 90s. (China presently has 58 yards and is in the
process of building the largest yard near Shanghai.
It has 497 ships on order now and aims to be the world’s leading
shipbuilding nation by 2015). Since India has comparatively cheaper labour, policy
and regulatory support from the Government may facilitate a steady growth of shipbuilding industry in India.
4.2 At
present, India can build ships upto the size of
only 1,10,000 DWT which is highly inadequate as per the global shipbuilding
standards. The productivity level of all the Indian shipyards are also low due
to the lack of mechanization. Most of
the Indian shipyards are incurring
losses and would face difficulties in raising funds on their own for capital
expenditure to facilitate improvement of business prospects. Further, the average size
of available drydocks in India is also small and not technically equipped
to handle repair work of large ocean going ships.
4.3 The
policy for the shipbuilding and shiprepair industry would take due note of its status as a
valuable foreign exchange earner, in addition to the potential for employment
generation through backward linkage with ancillary industries. The policy thrust is aimed towards
establishment of at least two international size shipbuilding yards, besides modernization of existing public and private
sector shipyards. The average size of
existing individual drydocks in India would also be increased. A complete package of measures to support the
industry would ensure it to become internationally competitive and for the
country to emerge as a leading shipbuilding/shiprepair nation by 2025.
4.4 POLICY INITIATIVES :
4.4.1 The
proposed drydocking policy would encourage modernization/ mechanization and will
be made competitive so that it is able to undertake shiprepair work of most of
the ships calling at vicinity ports.
4.4.2 The
policy would encourage foreign direct investment in shipbuilding and shiprepair activity.
4.4.3 The
policy would provide for long term subsidy support (upto 20-30 years). The existing shipbuilding subsidy scheme
would be reviewed to provide subsidy for
construction of all kinds of
vessels, subject to reasonability of
price.
4.4.4 Policy
support will be provided to ensure availability of indigenous steel for all
Indian shipyards. Prices of indigenous
steel would be capped so as to make Indian ship building more competitive.
4.4.5 The
proposed policy would encourage ancillary units to support shiprepairs and ship
construction. Without strong ancillary
back up, the shipbuilding and ship
repair will not be able to generate additional employment and compete with global shipyards.
4.4.6 PSU shipyards will be given
freedom to device their own procedures for procurement and make it comparable
with private sector.
4.4.7 Ship
owners would be encouraged to place
series orders for construction of
vessels through fiscal incentives /
enhanced subsidy support on the same design
in order to increase competitiveness of Indian shipyards.
4.5 INFRASTRUCTURAL
INITIATIVES
4.5.1 In-house
design and research activities will be promoted by giving budgetary support and fiscal incentives.
4.5.2 At
least two international shipyards would
be established, one on the East Coast and another on the West Coast of India
through public-private
participation. This will
strengthen shipbuilding and shiprepair in India.
4.5.3 The
new Drydocking policy will encourage
creation of shiprepair units adjacent to the ports to be able to
repair/drydock large sized ships.
4.6 FINANCIAL AND FISCAL
INITIATIVES :
4.6.1 Budgetary
support to PSU shipyards will be enhanced for upgradation/modernization and
mechanization. Funds for VRS will be
made available for rationalizing Systems which would be put in place for
benchmarking and increasing the productivity of PSU shipyards. Measures
will be taken up to increase labour productivity.
4.6.2 Taxation
in shipbuilding and shiprepairs activity including customs and central excise
would be brought on par with EOU units.
4.6.3 Shiprepair
and shipbuilding would be kept out of ambit of service tax, sales tax and VAT
etc. as shipyards compete globally for repair and new construction.
4.6.4 In
order to encourage Indian Shiprepair industry, a 10% surcharge would be imposed
on the cost of repairs of Indian flag ships if the repair is done in foreign
shipyards.
4.6.5 Investment
regarding Indian shipyards for R&D would be given 100% exemption from
Corporate Tax subject to a limit of 10% of the profit for the year.
4.6.6 Capital
Goods imported for shipbuilding facilities would be exempt from customs duty
for encouraging facility augmentation/upgradation/modernization.
4.6.7 As
the quality and construction standards
are continuously improving, there is need to make ships more safe, secure
and environment friendly by installation of required equipment including those recommended
by IMO. Exemption from import duty will
be provided for equipments to be installed on Indian ships made mandatory by the IMO or International legislation.
4.6.8 FDI to the extent of 100% will be allowed in
shiprepair and shipbuilding etc. with encouragement to private sector
investments.
4.6.9 Shipbuilding
and shiprepair industry will be provided infrastructure status and investments in the would be made eligible for exemptions in direct taxes for
long periods (20 years).
4.6.10 Suitable incentives will be provided to the shipyards so that retained profits can be reinvested.
This will encourage investments from the internal generation of shipyards.
4.6.11 Zero custom duties on import of equipments/machines, etc. for
shipbuilding and shiprepairs investments will be provided and these activities
shall be free from customs bond.
Flexible tax regime for disposal of scrap and waste generated out of
shiprepair and shipbuilding activities would also be put in place.
4.6.12 Indian Ship-owners will be encouraged to use domestic
facilities for shipbuilding, shiprepairs
and drydocks by fiscal incentives. No
tax will be levied on repairs and replacement of hull, machinery and equipments
etc. for ship-repair at Indian yards. (The
definition of repair would include all types of shiprepair work and would not
be restrictive).
4.7 INTERNATIONAL COOPERATION
4.7.1 The Indian Shipyards will be encouraged to import
technology and designs for new construction through joint venture or technical
collaboration.
4.8 OTHER ISSUES
4.8.1 Ship- Breaking
4.8.1.1 Ship-Breaking and Ship-Recycling
activity, which is a labour intensive industry will be further encouraged keeping
in view its employment potential and without compromising on environmental concerns.
V. INLAND WATER TRANSPORT
5.1 It is generally acknowledged
that IWT is an eco-friendly, cost-effective and fuel efficient mode of
transport with huge potential for employment generation. However, at present the share of IWT in India is only 0.15% of total inland cargo
transportation in terms of tonne-km.
5.2 India has approximately 15,000 kms. of
navigable waterways out of which 3 stretches covering 2700 kms. have been
declared as National Waterways. Indian
IWT fleet comprises of around 350 vessels aggregating to 3.5 lakh DWT. Trained manpower engaged in the sector is
less than 1000. The productivity level
of IWT fleet (measured in terms of tonne- km./DWT per annum) is below 5000
tonne-kms per DWT.
5.3 The
objective of the policy for the IWT sector is aimed towards increasing its
share of total inland cargo movement from the present level of 0.15% to 2% by
the year 2025. This is proposed to be
achieved through a strategy evolving addition of around 2500 cargo vessels to
the existing fleet along with 25000 additional trained manpower during the same
time frame. Further, the productivity of
IWT fleet is also envisaged to be improved to reach a level of 10,000 tonne-kms.
per DWT.
5.4 POLICY THRUST
5.4.1 Govt. will accord top priority
to popularize IWT as a viable mode of
transport and initiatives will be taken
to ensure a modal shift from rail/ road
to IWT.
5.4.2 Committees will be constituted under
Chief Secretaries of the riparian States for giving a push to the sector and
for appropriate coordination between public sector and private operators.
5.4.3 To the extent possible, Govt./PSU
cargo would be moved by IWT.
5.4.4 States will be encouraged for
development of State Waterways through Centrally Sponsored Schemes(CSS).
5.4.5 All
PSUs would be required to prepare a strategy for utilising IWT mode by
including their input procurement and finished goods movement through IWT. Suitable incentives to PSUs would be given to
encourage modal shift from other competing modes to IWT.
5.5 FAIRWAY AND
INFRASTRUCTURE DEVELOPMENT
5.5.1 Since the existence of a
navigable stretch of waterway with the required draft and supporting
infrastructure is a pre-requisite for operation of IWT along the waterways, the
following are proposed :
5.5.1.1 A Dredging policy for
inland water channels will be prepared and operationalised.
5.5.1.2 Additional IWT
Terminals at all potential locations would be set up and 4-lane road
connectivity as well as rail connectivity, wherever needed, would be provided
for loading and evacuation of cargo. Need
based cargo handling equipments and storage/warehousing space would be provided for which State Governments
would be requested to provide sufficient land free of cost for the purpose; in
addition, navigational aids including night navigation facilities would be
provided on all three National Waterways (within the next financial year).
5.5.1.3 A clear scheme of
fairway development./maintenance of each
National Waterway will be prepared
/implemented. All PSUs would be asked to prepare a strategy for utilization of
IWT mode in their operations including their input procurement and finished
goods movement. Incentives would be
given to the PSUs to encourage modal shift from rail and road to IWT.
5.5.1.4 Specific projects of
infrastructure development will be identified for implementation through Joint
Venture/BOT route.
5.6 ORGANISATIONAL IMROVEMENTS
5.6.1 IWAI will be strengthened, primarily
in terms of technical expertise/capacity.
5.6.2 All the riparian States of National
Waterways will be encouraged to have fully equipped IWT Directorates for
supervising the IWT operation at the local level.
5.6.3 Inland Water Transport Development
Council will be strengthened and empowered to play a more active role in the
development of IWT.
5.7 TRAINING AND MANPOWER
5.7.1 NINI at Patna
will be activated and more
sub-centres will be opened in other
States having IWT interest. Other States would be encouraged to open
their own institutions, if possible or attract private investment for training
professionals required for IWT. A
uniform standard for certification and training would be developed on the lines
of ocean going ships and NCVs.
5.8 FINANCIAL AND FISCAL PACKAGE
5.8.1 The budgetary support to IWAI and for
CSS will be increased.
5.8.2 A new policy for promotion of
unorganized sector operations/operators in IWT
will be formulated with suitable and adequate budget provision.
5.8.3 IWT Development Fund with a corpus of
Rs.500 crores at National level will be created. Subsidy scheme will be re examined and
amended to permit inclusion of schemes for development of infrastructure and acquisition
of vessels but not for operations.
5.8.4 Private investment in IWT
sector will be encouraged along with 100% FDI both in IWT infrastructure and
IWT operations i.e. vessels etc.
5.8.5 Investment made in IWT
infrastructure or IWT vessels by companies will
get exemption from direct taxes for 20 years.
5.8.6 Depreciation on IWT vessels
will be permitted at 5% higher than the
depreciation on ocean going vessels.
5.8.7 Income of companies from IWT
operations will be exempted from Income Tax/Corporate Tax upto 100% for the
first 10 years and upto 50% in next 10 years.
5.8.8 No Customs Duty on imported
equipments/machineries, spares, installations for IWT development/operations
will be charged.
5.9 INTERNATIONAL COOPERATION
5.9.1 The Indo-Bangladesh Protocol to promote Indian Vessels
and trade will be re-oriented.
5.9.2 Indo-Mynamar, Indo-Pak and other
bilateral cooperations on IWT with
neighbouring countries will be explored.
5.9.3 The possibilities of
cooperation with other countries e.g. Germany, Netherlands, Russia, China, Brazil etc. where IWT mode is
popular, will be explored.
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