Coastal Shipping

for Ministry of Shipping | Date - 28-04-2016


The Government is promoting transportation of cargo through coastal shipping with some neighbouring countries. The following steps have been taken by the Government to encourage growth in the transportation of goods through coastal vessels;

(i) An agreement has been signed between India and Bangladesh on 6th June, 2015 for commencement of coastal shipping between Bangladesh and the eastern ports of India through River Sea Vessels (RSV).

(ii) A River – Sea Vessels (RSV) Notification for moderating the technical and manning requirements for vessels operating within the Indian territorial waters was issued by the Directorate General of Shipping on 31.7.2013.

(iii) Directorate General of Shipping has issued an order declaring the Inland Vessel (IV) limits for facilitating coastal trade operations.

(iv) Coastal Shipping Rules for coastal vessels operating within 20 miles off the coast have been issued by the Directorate General of Shipping on 04.03.2014.

(v) All major ports have been advised to introduce Green Channel for coastal cargo, priority berthingfor coastal vessels and construction of exclusive coastal berths.

(vi) Government has exempted customs and Central Excise duty on bunker fuels (IFO 180 and IFO 380 CST) for use by coastal vessels carrying EXIM cargo or empty containers or domestic cargo between two ports in India.

(vii) The abatement of service tax has been brought at 70% for coastal shipping at par with road and rail.

(viii) The Government has relaxed cabotage for special vessels such as Roll-On Roll-Off (Ro-Ro), Roll-On Roll-Off (Hybrid Ro-Ro), RO-RO-cum- Passenger (Ro-Pax), Pure Car Carriers, Pure Car and Truck Carriers, LNG vessels and Over-Dimensional Cargo or Project Cargo Carriers which are in short supply in the country for a period of five years w.e.f. 2nd September, 2015.

This information was given by Minister of State for Shipping, Shri Pon. Radhakrishnan in a written reply to a question in the Lok Sabha today.

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UM/NP
(Release ID :142451)

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