New Opportunities Unveiled in Shipping Sector
Year Ender-2015
The
Ministry of Shipping has taken many proactive and progressive interventions in
the areas of shipbuilding, 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:
A.
KEY INITIATIVES
1.
Sagarmala Project
‘Sagarmala-
Concept and Implementation’ was approved by the Union Cabinet on 25.03.2015. The
Project Development Consultants were appointed on 15.05.2015 to develop a
National Perspective Plan (NPP) for the Sagarmala Programme. NPP is currently
under preparation and would be finalized by 31.01.2016. As part of the NPP development-
a)
The draft report on Origin-Destination (OD) Study, for POL & LNG, Iron
Ore & Steel, Coal, Container, Food Grains and Fertilizer is under review
and the final report is being prepared based on the inputs received from the
relevant stakeholders. On the Coal OD front, the Ministry of Shipping is
currently monitoring key railway connectivity projects from Talcher-Paradip and
discussing with Ministry of Railways to fast track the same.
b)
The draft Master Plan for Ennore has been submitted in November, 2015. The
draft Master Plans for Paradip, JNPT, Kolkata, Vizag, Kandla, Haldia and Ennore
will be submitted by 31.12.15. Draft Master Plan is currently under preparation
for Tuticorin, Mumbai, Kochi, Mormugao and Mangalore.
c)
Finalized Techno Economic Feasibility Report (TEFR) for Sagar Port and the
draft TEFR for Vadhavan Port submitted on 30.11.2015. TEFR for Paradip Outer
Harbour is under preparation.
d)
Coastal Economic Zone (CEZ) Perspective Plans are also under development.
While
the NPP is under development, 12 projects have been considered for part funding
by Sagarmala Development Company (SDC) for implementation, DPR is under
preparation for 10 projects, 55 road projects and 28 rail projects have been
shared with MoRTH and Ministry of Railways respectively for their
consideration. The institutional mechanism to implement the initiative
includes the National Sagarmala Apex Committee (NSAC), Sagarmala Coordination
& Steering Committee (SCSC), State Sagarmala Committees (SSC) and the Project
SPVs. The SCSC and NSAC have been constituted and their first meetings were
held on 01.10.2015 and 05.10.2015 respectively. West Bengal, Odisha and
Puducherry have constituted their SSCs and other Maritime States have been
requested to do the same. The Ministry of Shipping has also taken up
development of 31 island lighthouses.
2.
Special Purpose Vehicle to provide
efficient last mile rail connectivity to Major Ports
Based on the Cabinet decision
dated 25.03.2015, an SPV, to provide efficient last mile rail connectivity to
Major Ports, with equity from 11 Major Ports and Rail Vikas Nigam Ltd. was
incorporated under the Companies Act. This SPV ‘The Indian Port Rail
Corporation Limited’ started functioning from July 2015 and since then has
taken up 23 projects which are critical for last mile rail connectivity to the
Major Ports. The registered office of the company is at New Delhi and
corporate office is at Mumbai. 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
3. Incentive for
Shipbuilding and ship-repair Industry
Government has recently
approved incentives to promote domestic shipbuilding industry. These include
(i) financial assistance to domestic shipyards for any vessel built by them
subsequent to its delivery and (ii) relaxation of eligibility criteria for
procurements or repair of vessels done by Government departments or agencies
including PSUs for government purpose or for their own purpose to grant Right
of First Refusal to domestic shipyards.
The Government has
addressed the problem of inverted duty structure in ship manufacturing. Inputs
used in ship manufacturing and repair have been exempted from Customs and
Central Excise Duties with effect from the 24th of November, 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.
4. Jal
Marg Vikas Project
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.
5. Customs
and Excise Duty Exempted on the Use of Bunker Fuels for coastal transportation
of EXIM and empty container and for domestic containers transported alongwith
EXIM and empty containers.
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.
6. 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
w.e.f 02-09-2015. 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.
7. Developing 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.
B.
PROMOTING EASE OF DOING BUSINESS
This
has been at the core of the efforts of the Ministry during the year. Focus has
beenonsimplifying procedures by removing irritants that make it cumbersome to
carry on business smoothly. The major highlights in this regard are:
1.
Obsolete Rules under the Merchant
Shipping Act, 1958 weeded out
The Ministry of Shipping has decided to
rescind 13 Rules under the Merchant Shipping Act, 1958 (as amended), having
found them to be obsolete and unnecessary. Out of the 13 Rules, 6 has been
rescinded and 7 have been pre-published before rescindments.
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.
Re Rolled Steel from Ship Breaking
allowed for Shipbuilding
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.
4.
E-governance initiatives
Initiatives of Directorate General of Shipping
The
following services have now been made online -
·
registration of ships.
·
application and seat booking for written and
oral examinations.
·
application and processing of Continuous
Discharge Certificates (CDCs), renewal and replacement/duplicate CDCs.
·
application processing and issuance of
Certificate of Competencies (CoCs), dangerous cargo, GMDSS, Cookery
certificates.
·
application, processing and issuance of
chartering permission.
·
issue of registration certificate to transport
operators.
·
Master checker for seafarers.
Initiative of Directorate General of Lighthouses and Lightships (DGLL)
·
Online Collection of Light Dues
C.
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)
·
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. Initial
Public Offer of Cochin Shipyard Limited
The
Cabinet Committee on Economic Affairs has accorded 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.
The proceeds of the IPO will be used
to set up new Dry Dock in Cochin Shipyard and International Ship Repair
Facility at Cochin Port.
D.
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. Benchmarking performance of Indian Ports
to International Standards
A study
to benchmark performance of major Indian Ports to comparable international
ports has been completed and the recommendations of the study are being
implemented.
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.
4.
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 and New Mangalore Port.
5.
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
6.
Financial Assistance to Ports for
Pollution Response Equipment
The
Governmenthas 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.
7. Financial support
to Major/ Non Major Ports to promote movement of cargo/ passengers by sea/
maritime waters
A new central sector scheme has been formulated to provide financial
support by way of grant to Major Ports/ Non-Major Ports for construction/
up-gradation of exclusive coastal berths for coastal cargo, berths/jetties for
passenger ferries and construction of platforms/ jetties for hovercrafts/
seaplanes in port waters.
8. Dredging at Major
Port - Guidelines
Comprehensive
guidelines on dredging at Major Port have been finalised and issued for
implementation in October, 2015.
E.
INLAND WATERWAYS SECTOR
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 inland 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.
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
F.
INTERNATIONAL CONVENTIONS
i.
India accedes to the Anti-Fouling Systems
(AFS) Convention 2001 of International Maritime Organization (IMO)
The Indian instrument of accession was deposited
with the IMO on 24.4.2015 and the convention entered into force in India on
24.7.2015
ii.
India ratifies Maritime Labour Convention
(MLC) 2006 of International Labour Organization (ILO)
This Convention is considered as the 'Bill of
Rights' for the seafarers across the world. India has the second largest
number of seafarers after the Philippines and by ratifying the MLC, has
ensured improvement in the working and living conditions, and employment rights
of Indian national seafarers. The Indian Instrument of Ratification was deposited
with ILO on 09.10.2015 and the Convention will enter into force in India on
09.10.2016.
iii.
The Merchant Shipping (Amendment) Bill
2015 to incorporate the provisions of the three IMO Conventions, namely, Bunker
Convention, Nairobi Convention and Salvage Convention introduced in Parliament.
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.
Vision for coastal shipping, tourism and
regional development
Ministry of Shipping has
prepared a vision for coastal shipping, tourism and regional development to
increase the share of coastal/IWT mode from 7% to 10% by 2019-20. An action
plan to achieve the objective has also been prepared and is being implemented.
The key elements of the initiative include development of coastal shipping as
an end-to-end supply chain, integration of IWT and coastal route, development
of regional centers to generate cargo for coastal traffic, development of
domestic cruise industry and promotion of lighthouse tourism.
3.
MoU with Republic of Korea on Maritime
Transport
An MoU was signed with Republic of Korea to promote
bilateral cooperationin maritime transport.
4.
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.
5.
India and Bangladesh Initial a Draft MoU
on Passenger and Cruise Services on Coastal and Protocol Route
6.
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.
7.
MoU between India and Spain on
cooperation in Port matters
The Union Cabinet has given its approval for signing a
Memorandum of Understanding (MoU) between India and Spain on cooperation in
Port matters.
8.
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.
9.
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
H.
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.
No comments:
Post a Comment