Ministry of Shipping: Sailing to New Possibilities

Year Ender 2014/ Ministry of Shipping                                               Several new initiatives were taken by the Ministry of Shipping during the year 2014 including the launching of India – Myanmar Shipping Service, formulation of Sagarmala Project, delegation of power for registration of fishing boats to states, issuing one time general trade licence for Indian ships and simplification of procedures to determine light dues for container ships. The highlights of the achievements are as follows: India-Myanmar service (IMS) launched: Shipping service has been started between India (Chennai) and Myanmar (Yangon) in October, 2014. This service will boost the bilateral trade relations between the two countries by providing immense opportunities for manufacturers, Importers and Exporters in these countries. Special Economic Zone (SEZ) at Jawaharlal Nehru Port Trust (JNPT): Foundation stone has been laid for SEZ in JNPT. The project would cost in phase-l Rs. 4000 crore. Project planning and execution has commenced. The project has the potential of generating over 1.5 Lakh direct and indirect jobs. This will develop free trade warehousing zones, engineering goods sector, textile and other sectors. Sagarmala Project formulated: Sagarmala project has been formulated to promote port led development of hinterland along with integrated development of port connectivity through Road, Rail, Inland Waterways and Coastal Shipping. The project envisages developing India’s ports to levels comparable with the best ports across the globe in terms of infrastructure, efficiency and quality of service. Registration power delegated to States: The government has taken a decision to delegate the powers of registration, survey and certification of Indian fishing boats, irrespective of their size or length, to states and union territories. India fishing boats can now be registered at the ports or places in India as specified in the gazette notification. Merchant Shipping Act, 1958 amended: Merchant Shipping Act, 1958 has been amended recently to guarantee rights of Seafarers (Maritime Labour Convention) and to protect Marine Environment (Anti Fouling Convention). One time general trade licence for Indian ships: Ministry of Shipping has decided to issue life time licenses to Indian ships and any other ship charted by an Indian citizen or an Indian company instead of renewing such licenses every year. These licenses will now be issued with a life time fee. This will help the sea going Indian vessels as well as other vessels engaged in coastal trading as the process is decentralised and liberalised. Simplification of procedures to determine light dues for container ships: The Ministry of Shipping has adopted a new mechanism for collection of light dues for container ships. It has now simplified the process of collection of light dues for container vessels by adopting the unit of collection on TEU (Twenty feet Equivalent Unit) basis instead of net tonnage in respect of container ships. Further, SBI has now been accredited to collect the light dues through online banking. This will facilitate faster clearance of ships and reduce detention time of vessels for payment of light dues. Integrated National Waters Transportation Grid: An Integrated National Water Transportation Grid is proposed to be set up to develop 4503 km of National Waterways and establish effective connectivity of river terminals with road, rail and ports. An estimated 159 million tonnes of cargo will be diverted to Inland Waterways from road and rail with the completion of the project. Other major initiatives undertaken by the Ministry of Shipping include: ·         Trans loading Zone notified at Konica sands to overcome draft restrictions at Kolkata Port. ·         Outer Harbour Project at VOC Port, Tuticorin announced; to be established at an initial cost of Rs. 11,650 crores. ·         Feasibility studies in progress to set up dry ports at Wardha, Jalna and Belgaum. ·         New SPV to be formed; will focus on last mile Rail connectivity to ports. ·         New scheme to incentivize and promote modal shift of cargo from roads/rail to coastal route. ·         Green channel clearance system for coastal cargo in major ports. ·         Customs & Excise duties exempted on bunker fuels used by Indian Flag vessels transporting EXlM and empty containers to promote trans-shipment hubs in India. ·         Indian Shipping Company allowed to flag ships abroad. ·         E-payment of fees for all ship licensing services has been operationalised, with paperless transactions. ·         Procedures for grant of permission for India-Bangladesh protocol vessels electronically enabled. ·         15 projects of existing Ports awarded against the target of 26 (58% achievement); remaining projects to be awarded by March, 2015. ·         16 projects at Ports completed as against annual target of 19 (84% achievement); rest to be completed by March, 2015.