Question : DEVELOPMENT OF MARITIME SECTOR

(a) the contribution of shipping industry in the economic growth and development of the country;

(b) the details of the programmes/projects being implemented under thePublic Private Partnership Mode and the total investment involved therein including the present status of these programmes/ projects;

(c) whether the shortage of maritime experts in the Ministry is affecting the implementation of various programmes/projects;

(d) if so, the reaction of the Government thereon and the corrective measures taken/being taken by the Government in this regard; and

(e) the details of the various initiatives undertaken for growth and development of maritime sector in the country?

MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI KRISHANPAL GURJAR)

(a)to(e): A statement is laid on the Table of the House.

STATEMENT REFERED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO. 327 TO BE ANSWERED ON 31st JULY, 2014 RAISED BY SHRI RAM TAHAL CHOUDHARY & SHRI CHANDRAKANT KHAIRE REGARDING DEVELOPMENT OF MARITIME SECTOR.

(a) India has one of the largest merchant shipping fleet among the developing countries and is ranked 17th in the world. Shipping plays an important role in the transport sector of India’s economy.Indian maritime sector facilitates not only transportation of national and international cargoes but also provides a variety of other services such as cargo handling services, shipbuilding and ship repairing, training of seafarers etc. The Indian shipping industry is subject to the macro-economic factors of international trade and commerce, as well as the national economic scenario.

(b) Of the total 72 projects worth Rs.39,166.64 Crores taken up underPublic Private Partnership mode in the ports sector, 28 projects of Rs.8,945.86 Crores have been completed and the remaining 44 projects worth Rs.30,220.78 Crores are at different stages of completion.

(c)&(d) No, Sir. The implementation of various programmes/projects as in (b) above is being done throughPublic Private Partnership mode in the ports sector wherein the technical expertise is provided by Private Operator or by the Ports. Ministry of Shipping has adequate expertise to perform its role vis-à-vis PPP projects. Hence the question of shortage of experts in the Ministry affecting their implementation does not arise.

(e) Government had introduced tonnage tax regime for shipping sector in 2004.Further, Indian shipping industry has been provided cargo support through right of first refusal andthe policy of FOB importsfor government owned/controlled cargoes is followed.Also chartering of foreign vessels for movement of cargo along the coast is regulated through the Director General of Shipping taking into consideration the availability of Indian flag vessels as per Cabotage Policy.Recently, Government has taken a policy decision to allow Indian ship owners to buy ships as well as flag these ships abroad with the condition that this additional controlled tonnage acquired by them will belimited to their Indian tonnage.