MoPSW proposes Infrastructure Status for Coastal Shipping : Sarbananda Sonowal

NEWDELHI:TheUnionMinistryfor Ports, Shipping and Waterways has proposed giving infrastructure status to Coastal Shipping given Government’s priority. The status entitles a sector to several benefits and concessions, includingcheaperbankloans.TheUnion Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, said the Ministry is holding stakeholder consultations for developing Coastal Shipping in a public-private partnership mode.

He also said that stakeholder consultation is underway for proposed viability-gap funding (VGF) for coastal shipping—when ships move between portswithinaCountry.

Boosting performance of maritime sector

Our aim is to boost the performance and productivity of ports, shipping and waterways and to strengthen our position of eminence in the global maritime sector. Targets set out in Maritime India Vision-2030 provide a clear roadmap for bringing all-round improvement in port modernization and automation, coastal shipping, shipbuilding, ship repair, transition to renewable energy, increasing share of Indian seafarers across the globe, improving vessel turnaround time, developing transhipment hubs, cruise shipping and augmenting capacities at the major ports. Focus is also on developing and operationalizing inland waterways for improved connectivity and creating an environment for a positive modal shift from road and rail to waterways.

Promoting Coastal Shipping

Coastal Shipping shall be promoted as an energy-efficient, low-cost mode of transportation through PPP with VGF (Viability Gap Funding) support. A number of initiatives have already been taken by the ministry to promote coastal shipping.Facilitieslikededicatedcoastal berths, priority berthing, cabotage relaxation to Ro-Ro/Ro-Pax vessels, concessions in berth and handling charges, and bunkering, among others, are already being provided to motivate all stakeholders to adopt coastal transportation for the transport of passenger and goods in the country.

Ministry is proposing to include ‘coastal shipping’ as an eligible sector in the existing VGF scheme of the ministry of finance.Theinclusionofcoastalshipping as a sector in the ‘Harmonized List of Infrastructure’ is also being proposed. These steps will make the sector eligible for various concessions to enhance the overall viability of the sector and help in attracting cargo and passengers to this modeoftransport.

Deep draft port at Vadhavan

A modern deep draft (20 metres) allweather port has been sanctioned at Vadhavan. It will be located in Dahanu Taluka in Maharashtra. The port will be developedasaLandLordmodelandshall have a capacity of 308 MTPA once completed and fully functional. The port will be developed by an SPV having JNPA and Maharashtra Maritime Board as members (with equity share of 74% and 26%, respectively). In-principle approval for the project was granted in February 2020. Basic infrastructure, including breakwater, reclamation, rail and road connectivity linkages, power, water lines, andcommonutilities,amongothers,willbe developed by the SPV (Special Purpose Vehicle). Terminal operations & Cargo handling infrastructure shall be offered to Private agencies under PPP mode. The projectiscurrentlyinthestageofobtaining NOC from DTEPA (Dahanu Taluka EcologicallyFragileArea)asapartofToR (TermsofReference)forprocessingforEC (Environmental Clearance) and CRZ (CoastalRegulationZone)Clearance. Regional waterway grid

Encouraged by progress on the augmentation of the Ganga river system (National Waterways 1) and the huge trade potential with Bangladesh and wider East Asia, the government has been firming up the plan to develop a ‘Regional Waterways Grid’, comprising key waterways and certain international routes, primarily situated in India and Bangladesh, of about 5000 km navigable waterways to boost regional integration and trade. Seamless connection of NW l (Ganges) and NW2 (Brahmaputra) would also create an opportunity for developinganeconomiccorridorof3500 km connecting North Eastern India with the rest of India through Bangladesh and also linking Bhutan and Nepal to Bangladesh and India through multimodal connection. The Eastern Grid will benefit 600 million people in one of the densest parts of the world. The project report for the grid is under preparation for placing before the finance ministry as a project. The total project cost is likely to be between Rs.7000-9,000crore.