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New Ports under Sagarmala Programme
Aug 10, 2016

Based on the cargo traffic scenario study and port master planning under Sagarmala, the Government has decided to set up six potential new port locations—Vadhavan in Maharashtra, Sagar Island in West Bengal, Paradip Satellite Port in Odisha, Enayam & Sirkazhi in Tamil Nadu and Belekeri in Karanataka have been identified. In addition, the Techno-Economic Feasibility Report (TEFR) for Duggirajupatnam, Andhra Pradesh has also been updated.

Support for Transportation of Passengers and Cargo

  • Indian shipping industry has been provided cargo support through Right of First Refusal.
  • Parity in taxation of seafarers employed on Indian flag ships vis-a-vis those on foreign flag ships.
  • Exemption of Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels for transportation of mix of EXIM, domestic and empty containers between two or more ports in India.
  • Uniform abatement of service tax of 70% for transportation of goods by rail, road and sea vessels.
  • Shipping enterprises based in India have been permitted to acquire ships abroad and also flag them in the country of their convenience.
  • To develop the transportation of passenger services, two main land vessels for Andaman & Nicobar Island of 1200 passenger capacity each have been sanctioned during 2015-16.
  • Besides this, two Inter Island ships for Andaman & Nicobar Islands of 500 passengers capacity have also been sanctioned.

Indian shipping lines transported 65.5 million tonnes EXIM cargo in 2014-15. In addition 105.8 lakhs and 90.6 lakh passengers embarked and disembarked respectively on Indian ports in 2014-15.

RO-RO Service Between Kolkata and Varanasi

  • Inland Water Transport (IWT) mode is recognized as a cost effective, fuel efficient, environment friendly and safe mode of transport especially for hazardous goods and over dimensional cargo.
  • A Memorandum of Understanding (MoU) has been signed between the Inland Waterways Authority of India (IWAI) and Maruti Suzuki India Ltd. for transportation of cars on a pilot basis through inland waterways.
  • Cars are proposed to be transported from Varanasi to Kolkata on National Waterway-1 as a pilot run very soon. The requirement of logistic support for rolling in/out of cars from the vessels to shore and vice-versa has been done in a trial run at Kolkata.

As per a RITES report of 2014 on “Integrated National Waterways Transportation Grid (INWTG)” the important benefits of IWT mode compared to rail and road transportation are as one litre of fuel moves, 24 tonne-km on road, 95 tonne-km on rail and 215 tonne-km on IWT. Also, the cost of developing waterways is much lower than rail and road.


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