MAY29,2009
Union Minister of Shipping, Shri G.K. Vasan and the Minister of State in the Ministry, Shri Mukul Roy assumed the charge of their offices here today.
The Secretary Shipping, Shri A.P.V.N. Sarma along with the senior officials of the Ministry, briefed the two Ministers on various important matters concerning the Ministry including the priority areas.
Speaking to Media-persons present on the occasion, Shri Vasan outlined the priority areas of the Ministry and said that the Government is committed to all-round development of the infrastructure of the country and for this, it is imperative that the development of Ports is taken in a big way. He said that all possible measures would be taken to enhance the capacities of the Ports.
Shri Vasan said that steps would be taken for mechanization of berths, quick loading and unloading of cargo and making our ports capable of handling larger ships. He said that shipbuilding activity would be promoted and Indian Maritime University would be strengthened.
The Minister said that the Government is committed to the successful completion for the Sethusamudaram Project.
JULY2009
PM to Head Cabinet Committee on Infrastructure
In order to give a push to economic activity, the government on Saturday constituted the Cabinet Committee on Infrastructure (CCI) to fast-track the implementation of the infrastructure sector projects and monitor their performance.
The 12-member committee will be headed by Prime Minister Manmohan Singh.
"The constitution of the high-powered Committee comes in the wake of government's focus on infrastructure which has been identified as a key priority area," an official release said.
The functions of the Cabinet Committee on Infrastructure will be to consider and take decisions in respect of all infrastructure related proposals costing over Rs 150 crore specifically those concerning energy, railways, roads and national highways, ports, airports, telecommunications, Information Technology, irrigation, housing and urban development with particular emphasis on rural housing and urban slum clearance.
It will consider and decide measures such fiscal, financial, institutional and legal required to enhance investment in the sector, including grant of requisite approvals to facilitate private sector investment in specific projects and laying down annual parameters and targets for performance of all infrastructure sectors and review the progress of the projects.
Besides the Prime Minister, Union Ministers Pranab Mukherjee, Sharad Pawar, Mamata Banerjee, Sushil Kumar Shinde, Farooq Abdullah, Jaipal Reddy, Kamal Nath, A Raja, C P Joshi, Selja, G K Vasan, Pawan Kumar Bansal are the members of the committee.
Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Prithviraj Chavan and Praful Patel will be the special invitees to the committee.
JULY 1,2009
A concession agreement between Paradip Port Trust and Blue Water Iron Ore Terminal Pvt. Ltd. The concessionaire has been signed here today for construction of a deep draught iron ore terminal in the presence of Union Cabinet Minister of Shipping Shri G.K. Vasan and other senior officers including Secretary (Shipping) Shri A.P.V.N. Sarma, Additional Secretary & Financial Advisor and Joint Secretary (Ports).
Under the agreement, the Iron ore terminal will be developed by the Concessionaire at an estimated cost of Rs. 506.30 crores. Paradip Port will provide supporting facilities like dredging of Channel & Berth, Railway lines and back-up area at an estimated cost of Rs. 85.05 crores. Besides this, the Port will also incur an expenditure of Rs. 20 crores towards shifting of CISF complex and Rs. 15 crores towards upgradation of Electrical reception facilities in order to facilitate implementation of the project.
On completion of the Iron Ore Terminal, capacity addition to the Port will be 10 MTPA. Since the dredging of the channel is in progress and the depths at the proposed channel and berth will be 17.1 meters, it will facilitate handling of cape size vessels upto 1, 25, 000 DWT. The concessionaire, Blue Water Iron Ore Terminal Pvt. Ltd. have offered a revenue share of 36.802 % to the port during the concession period of 30 years. The concessionaire will complete the construction of the project facilities within 36 months from the date of award of concession.
This is the first project under Public Private Partnership (PPP) to be implemented in the port sector as per the new Model Concession Agreement approved by the Cabinet and the tariff has been fixed up front by TAMP.
As part of the PPP scheme of Govt. of India, Paradip Port Trust floated global tenders for construction of deep draught Iron ore berth on BOT basis. 5 bidders were short listed including the successful bidder, the consortium of Noble Group Ltd., Gammon Infrastructure Projects Ltd. & MMTC for this port sector BOT project. The consortium has formed a Special Purpose Vehicle (SPV), Blue Water Iron Ore Terminal Pvt. Ltd. under the companies act to implement the project.
Shri K. Raghuramaiah, Chairman, Paradip Port Trust signed the concession agreement on behalf of the Port and Mr. Harindar Pal Singh Banga, Vice-Chairman
JULY1,2009July1,2009
The Union Minister of Shipping, Shri G. K. Vasan officially released the 100 days agenda for the Ministry of Shipping here today at a meeting held with media.
The main items to be taken up on priority by the Ministry of Shipping include the following:
• In addition to the Public Private Partnership (PPP) project for which Concession Agreement has been signed today, 5 more PPP projects are likely to be awarded in 100 days. These include Coal Terminal at Paradip Port, Mormugao Port, Container Terminal at Ennore and Tuticorin and Iron Ore Handling Facility at New Mangalore Port. The total estimated cost of the 6 projects is Rs. 3319.14 crores and they are expected to add capacity of 31.23 million tones and 1.97 Million TEUs.
• Dredging Corporation of India (DCI) will be acquiring 3 Trailer Suction Hopper Dredgers (TSHDs) at an estimated cost of Rs. 1570 crores.
• A Committee set up under the chairmanship of AS&FA to give recommendations on Revised Policy Guidelines to enhance port efficiency is likely to submit its report shortly. Its recommendations would be considered further for notification to improve the overall efficiency of the Ports.
• It is proposed that the Andaman & Nicobar Islands and Lakshwadeep would be declared as Major Ports after seeking Cabinet approval.
• Acquisition of Ships by Shipping Corporation of India would be given priority and necessary contracts would be signed with Cochin Shipyard Ltd.
• There is a proposal for strengthening of Indian Maritime University. The Government had setup the Central University in Chennai on November 14, 2008 with campuses at Kolkata, Mumbai and Visakhapatnam.
• The proposal to set up Indian Maritime Causality Investigation Cell in the Directorate General of Shipping, Mumbai, to ensure systematic improvement in accidents prevention, is under active consideration in the Ministry.
• The 2nd Phase of Capital Dredging of National Waterways No.3 on West Coast Canal from Kollam to Kottapuram along with Champakara and Udyogmandal Canal will be implemented at an estimated cost of Rs. 89.74 cr.
• The proposal of Financial Restructuring of Hindustan Shipyards Ltd. and transfer of assets of the yard to Ministry of Defence is being examined in the Ministry.
• Part Commissioning of Small Ship Division of Cochin Shipyard Ltd. at an estimated cost of Rs.98.63 crores is also envisaged during the first 100 days.
• Acquisition of one 400 Passenger Ship for Lakshwadweep Administration and one 500 Passenger Ship for Andaman and Nicobar Administration will be pursued by the Ministry
JULY13,2009
Lok Sabha
National Maritime Development Programme (NMDP) envisages setting up of two international size shipyards, one on the East Coast and another on the West Coast of India. Maritime States including Gujarat were requested by this Ministry to identify suitable locations for setting up of international size shipyards, one each on the East Coast and West Coast of India respectively.
Government of India nominated Mumbai Port Trust and Ennore Port Limited to function as the Nodal Agencies for setting up of shipyards on the West Coast of India and the East Coast of India respectively. The nodal agencies viz. Ennore Port Limited and Mumbai Port Trust have been authorized to appoint Consultants who, inter alia, would identify 3 or 4 alternative sites each for setting up of shipyard on West Coast and East Coast of India respectively and also suggest optimal locations with detailed justification. The commencement of the project depends on the outcome of the recommendations of the Consultants.
The Maritime States were requested by this Ministry to identify suitable location for setting up of international size shipyards, one each on the East Coast and West Coast of India respectively, with the following basic requirements:
(i) The minimum land requirement of 1000-1500 acres and waterfront of about 2.5 Kms in length;
(ii) Water draft of 10 to 12 metres;
(iii) The site location for the proposed shipyards to have good rail and road connectivity;
(iv) Contiguity to a Major Port situated within the State.
In response, the following locations have been suggested by the Maritime States:
S. No. Name of State Site Proposed/Response of the State Government
1. Government of Karnataka
Tadri Port (Kundle Beach) and Honne Beach under Belekeri Port
2. Government of Kerala
Poovar in Thiruvananthapuram District on Kerala-Tamil Nadu Border
3. Government of Orissa
(i) Nuagarh (Astaranga) Distt. Puri
(ii) Palur, Distt. Ganjam
(iii) Gopalpur Port at Arjipalli, Chatrapur, Distt. Ganjam
(iv) Bahuda Muhana (Sonepur), Distt. Ganjam
4. Government of Andhra Pradesh Vodarevu in Prakasam District
5. Government of West Bengal No specific site proposed as yet.
6. Government of Gujarat Government of Gujarat has proposed a few stretches such as Salaya, Jodiya, Mundra, Chanch and Pipavav and Tuna.
Upon receipt of the proposals from the State Governments, further information/clarifications have been sought by the Ministry from the respective State Governments.
This information was given by Union Minister of Shipping, Shri G. K. Vasan in written reply to a question in Lok Sabha today.
JULY13,2009
Lok Sabha
The Union Minister of Shipping, Shri G. K. Vasan in a written reply to Lok Sabha informed today that the Government has prepared plans to upgrade the infrastructure of ports in the country as per international standards. A National Maritime Development Programme (NMDP) has been formulated by the Ministry of Shipping with the objective to upgrade and modernize port infrastructure in India to enable it to benchmark its performance against global standards.
The reply further stated that under the programme, specific projects have been identified to be taken up for implementation upto 2011-12. In the Major Ports, 276 projects covering the entire gamut of activities, namely, construction/upgradation of berths, deepening of channels, rail-road connectivity projects, equipment upgradation/modernization schemes and other related schemes for creation of back-up facilities have been identified for inclusion in the programme.
JULY14,2009
Rajya Sabha
The Union Minister of Shipping, Shri G. K. Vasan, informed Rajya Sabha in a written reply today that it has been decided to award 22 Projects through private investment mainly under Public Private Partnership (PPP) to speed up port infrastructure development during the current financial year. The details of these projects are:
Sl. No. Name of project proposed to be awarded
1. Mechanisation at HDC berth no 2 at Kolkata Port
2. Mechanisation at HDC berth no 8 at Kolkata Port
3. Multi purpose berth at Paradip Port Trust Project-1
4. Multi purpose berth at Paradip Port Trust Project-2
5. Mechanisation of Cargo Handling Project-1 at Paradip Port
6. Mechanisation of Cargo Handling Project-2 at Paradip Port
7. Installation of Mechanised handling facilities for fertilizers at EQ 7 in the InnerHarbour at Vizag
8. Mechanised Coal handling facilities at General cum cargo berth in the OuterHarbour of at Vizag
9. Container Terminal at outer Harbor OR1/OR2 at Vizag
10. Development of East berth at Vizag (since split in to following two projects – 2RFQs issued)
(1) Development of North Cargo Berth in East Dock
(2) Development of South Cargo Berth in East Dock
11. Installation of Mechanised handling facilities at WQ 8 at Vizag
12. Development of Dry Port & Multi Model Logistic Park at Chennai
13. Creation of Mega Container Terminal at Chennai
14. Construction of North Cargo Berth No- II at Tuticorin
15. International Bunkering Terminal - Construction of Multi-purpose Liquid Terminal at Cochin
16. International Cruise Terminal Cum Public Plaza Cochin
17. Development of stand alone container handling facility with a quay length of330 m North of NSICT Terminal at Jawaharlal Nehru Port Trust (JNPT)
18. 4th Container Terminal at JNPT
19. Development and operation of 3 conventional cargo terminal at Indira Dock- at Mumbai
20. Creation of berthing and allied facilities of Tekkra near Tuna (outside KandlaCreek) - Phase-I
21. Setting up of Single Point Mooring ( SPM ) and allied facilities off Veera in Gulf of Kutch – Kandla
22. Development of Container Terminal at NMPT
The PPP projects are awarded as per criteria specified in the Model Request for Qualification and Request for Proposal. The details of the projects which have been assigned by the ports to various companies/firms during the last 3 financial years are
1. Paradip Port Trust –
Deep Draught Iron Ore Terminal
Awarded on BOT basis to M/S Blue Water Iron Ore Terminal Pvt Ltd, a consortium of Noble Group Ltd, Gammon Infrastructure Project Ltd and MMTC.
2. Chennai Port Trust –
Development of 2nd Container Terminal
Licence awarded to Consortium of Port of M/s. Singapore Authority (PSA) and M/s. South India Corporation Agencies Limited (SICAL).
3. Ennore Port Ltd. --
(a) Development of Coal Terminal to handle 8 MTPA Coal for users other than TNEB.
The Licence awarded on BOT basis to M/S Chetinad International Coal Terminal Private Ltd., a consortium of South India Corporation Ltd, Portia Management Services Ltd and NavayugaEngineering Ltd
(b) Construction of Iron Ore Terminal
The Licence awarded on BOT basis to M/S SICAL Iron Ore Terminals Ltd, a consortium of SICAL Logistics Ltd, L&T Infrastructures Development Projects Ltd and MMTC Ltd.
4. Cochin Port Trust --
Captive LNG Port and Re-Gasification Terminal at Puthuvypeen.
Awarded on BOT basis to M/S Petronet LNG Limited (PLL).
5. Mumbai Port Trust --
Construction of Off Shore Container Terminal.
The Licence awarded on BOT basis to the consortium of M/s Gammon India Ltd;, Gammon Infrastructure Ltd and Dragados Spain which formed a Company viz M/s Indira Container Terminal Private Limited.
6. Kandla Port Trust --
Development, Operation, Management and Maintenance of Berth No.11 & 12 as Container Terminal.
Awarded to M/s. ABG Kandla Container Terminal Limited.
JULY 14,2009
RAJya Sabha
The Union Minister of Shipping, Shri G. K. Vasan, informed Rajya Sabha in reply to a starred question today that the capacity of the 12 Major Ports under the Central Government is projected to be increased to 1016.55 million MT by the end of the XI Five Year Plan i.e. 2011-12, which is more than double the capacity of these Ports at 504.75 million MT in 2006-07.
Port-wise details of capacity creation in Major Ports in the Eleventh Plan are:
Port Existing Capacity 2006-07 Capacity Addition by 2011-12 Total Capacity in 2011-12
Kolkata 13.40 18.85 32.25
Haldia 43.50 21.20 64.70
Paradip 56.00 55.00 111.00
Visakhapatnam 58.50 52.40 110.90
Ennore 13.00 51.20 64.20
Chennai 50.00 23.50 73.50
Tuticorin 20.55 43.43 63.98
Cochin 20.15 35.40 55.55
New Mangalore 41.30 22.50 63.80
Mormugao 30.00 37.46 67.46
Mumbai 44.65 48.16 92.81
Jawaharlal Nehru 52.40 43.90 96.30
Kandla 61.30 58.80 120.10
Total 504.75 511.80 1016.55
JULY27,2010
Although, in the liberalization era Govt. is not committed to providing soft loan for acquisition of ships but on account of the current financial meltdown on the request of Ministry of Shipping and at the behest of Finance Ministry, Indian Banks’ Association had constituted a Working Group to examine the proposed extension of credit facilities to Shipping companies in India for purchase of ships. Indian Banks’ Association has recently advised that they have no role to play in the matter and the Shipping Company should take up the matter with the individual banks.
As the Indian Shipping Industry is facing difficulties in arranging finance for acquisition of ships, the Ministry of Shipping has proposed to Finance Ministry to explore the possibility of funding ship acquisition by India Infrastructure Finance Company Ltd. (IIFCL). Ministry of Finance, however, informed that IIFCL was created as an Special Purpose Vehicle (SPV) under the scheme for financing viable infrastructure projects and accordingly, it has been providing financial support to improve the viability of infrastructure projects. The acquisition of ships is basically purchase of capital equipment and not funding of infrastructure projects.
This information was given by the Union Minister of Shipping, Shri G. K. Vasan in written reply to a question in Lok Sabha today.
AUGUST 4,2009
Stretch of River Brahmaputra from Sadiya to Dhubri (891 km) was declared as a National Waterway in 1988. Inland Waterways Authority of India (IWAI) is developing and maintaining inland water transport infrastructure namely navigational channel, terminals and navigational aids for day/night navigation on this waterway. Navigational channel with least available depth of 2.0 m from Dhubri to Dibrugarh (798 km) and 1.5 m from Dibrugarh to Sadiya (123 km) is being maintained for about 330 days in a year; low level RCC jetty has been constructed at Pandu, a high level jetty is under construction. Floating terminals have been provided at Dhubri, Jogighopa, Tejpur, Silghat, Jamuguri, Neamati and Dibrugarh; one container crane, 5 floating cranes and 2 shore cranes have been provided, day navigation marks are maintained in the entire waterway and 24 hours navigational aids have also been provided between Dhubri and Neamati. (629 km). Through routes under Inland Water Transit and Trade Protocol between India and Bangladesh this National Waterway is connected with Haldia and Kolkata ports. The infrastructure is up-graded from time to time based on demand.
There is no port or place with the name of Dhulori on this National Waterway. However, Dhubri town in Assam is situated on this waterway and IWAI has provided one floating pontoon with crane for mechanical handling of cargo at Dhubri. The floating pontoon with bamboo approach jetty is operational at Dhubri also.
This information was given by the Union Minister of Shipping, Shri G. K. Vasan in written reply to a question in Rajya Sabha today.
AUGUST4,2009
As per ongoing National Maritime Development Programme, the Government has planned to modernize all the major ports of the country including the major ports located in Tamil Nadu. This programme, inter-alia, includes deepening of channels, construction/upgradation of new berths/terminals through public private participation, mechanization of cargo handling facilities including replacement of old equipments, rail road connectivity.
During 11th Five Year Plan, the funds allocated to Chennai, Tuticorin and Ennore Ports are Rs.1254.79 crores, Rs.1448.20 crores and Rs.1227.74 crores respectively.
This information was given by the Union Minister of Shipping, Shri G. K. Vasan in written reply to a question in Rajya Sabha today.
SEPT3,2009
The Union Shipping Minister, Shri G. K. Vasan has expressed his deep grief at untimely demise of the Chief Minister of Andhra Pradesh, Dr. Y. S. Rajasekhara Reddy.
In his condolence message, Shri Vasan said, “I am deeply shocked to learn about the tragic and untimely death of Dr. Y.S. Rajasekhara Reddy, the Chief Minister of Andhra Pradesh. In his passing away, the State of Andhra Pradesh has lost an illustrious son, who had a dream for the development of the State and worked hard towards its fulfilment.
I pray to God to give strength and courage to the bereaved family to overcome the grief. I also urge upon my colleagues from the State to rededicate to the cause of the underprivileged, which was dear to the heart of Dr. Rajasekhara Reddy, as this alone would be the true homage to him.
I join the family of Dr. Rajasekhara Reddy, all the leaders from the State, party workers and the millions of his well wishers in praying for peace of the departed soul.”
SEPT18,2009
Union Minister of Shipping Thiru G.K.Vasan was presented today at Chennai the maiden dividend of Rs.4.15 crores by Ennore Port. The dividend Cheque was presented to the Minister by Thiru S.Velumani, Chairman cum Managing Director of Ennore Port Ltd (EPL).
The Ennore Port Ltd. has reported a post tax profit of Rs.41.46 crores during the Financial Year ended March 31, 2009 and it proposes to declare dividend at 15% on PAT which comes around Rs.6.22 crores. Dividend Tax is Rs.1.06 Cores. The dividend cash flow including dividend tax is Rs.7.28 Crores, of which Government of India gets Rs.4.15 crores and Chennai Port Trust Rs.2.07 crores.
Ennore Port has been conferred Mini Ratna Category I status by the Government of India based on its impressive performance, which enables it with enhanced functional and financial autonomy. The Port has been successful in attracting an investment of Rs. 1200 crores on various terminals and harbour crafts from private entrepreneurs. It maintained a very low operating ratio at 25.80% during 2008-09.
Construction of the Car Export Terminal at the Port is in progress in pursuance of MOU with Nissan Motors, which would enable Nissan to export 1,80,000 cars per year. Exports are expected to commence by August, 2010. This Project will cost Rs.110 crores and the facilities include a berth, dredging of basin to 12 mtrs, parking yard of 1,75,000 sq. mtrs.
A modern Coal Terminal and an Iron Ore Terminal are being developed at a total investment of Rs.880 crores. Ennore Port will be able to handle 8 million tonnes of Non-TNEB coal and 12 million tonnes of iron ore with completion of these two projects by August 2010. Detailed Project Report (DPR) for construction of third coal berth is being prepared so as to enable EPL to handle 35 million tonnes of coal need for TNEB by 2013-14. The Project is expected to cost Rs.100 crores. The Marine Liquid Terminal constructed at a cost of Rs.250 crores is already operational since January 2009.
Rail connectivity project works to link Coal and Iron Ore stackyards with Athipattu Stations on the Chennai – Vijayawada mainline are under the implementation at a cost of Rs.51.60 crores. Phase – II Capital Dredging to create necessary depths to handle Cape Size vessels and main line Container vessels has been approved by the Board of EPL with a proposed of Rs.440 crores
DEC7,2009
The Union Minister of Shipping, Shri G. K. Vasan in reply to a question in Lok Sabha today informed that the Government of India has approved the Cruise Shipping Policy of India in June, 2008. Cruise Shipping would be a path breaking development in India’s efforts to carve a prominent space in world tourism and it would showcase India as a major source and destination of world tourism. With the implementation of this policy, the growth in diverse sectors would spill out and it would earn foreign exchange for the country and generate employment. The number of cruise ships which called at Indian ports was 106 in the year 2008-09 as compared to 55 in the year 2003-04 and the number of cruise passengers rose from 34,372 in 2003-04 to 69,456 in 2008-09.
The Government proposes to exploit this sector by developing cruise terminals/infrastructure in order to have more calls from cruise liners.
The Ports are earmarking funds from their own resources for development of Cruise related Infrastructure. A dedicated passenger cum-cruise terminal has recently been inaugurated at New Mangalore Port. Cruise Terminals are also being developed at Cochin and Mumbai Ports and Ports at Chennai, Tuticorin, Murmagao and Kolkata have been identified for development of Cruise facilities. There are schemes also under the Ministry of Tourism for part funding of Infrastructure projects relating to Tourism.
Nov23,2009
bha today that the Government of India has taken the following steps to prevent oil spill in the ports and other areas:
(i) Being a party to International Convention for the prevention of pollution from ships, 1973 (MARPOL 73/78), Merchant Shipping Act, 1958 has been amended to implement the convention to prevent, reduce, contain and control oil pollution from ships.
(ii) Being a party to Civil Liability Convention 1992, the Merchant Shipping Act, 1958 has been amended to make the owner of the polluting ship liable for any pollution damage caused by oil which has escaped or discharged from the ship. Under this Convention, there is an obligation
on the ship owner which carries 2000 tonnes or more oil in bulk as cargo to have a valid insurance or financial security for an amount specified by the Convention.
(iii) Being a party to Fund Convention 1992, under Section 352-S of the Merchant Shipping Act, 1958, a provision has been made to compensate any person in respect of damage caused due to pollution and not able to obtain full and adequate compensation for the damages under the terms of Civil Liability Convention.
(iv) Being a party to Oil Pollution Response Preparedness and Co-operation Convention 1990, Coast Guard has developed National Oil Spill Disaster and Contingency Plan and publishes and promulgates plans to deal with such contingencies.
The reply further stated that except Jawaharlal Nehru Port Trust and Mormugao Port Trust, no other port has reported losses due to oil spill. Year – wise losses in respect of JNPT and Mormugao are given below-
JNPT
Year Penalty imposed (in rupee) Cost received on account of cleaning up (in rupee) Total (in rupee)
2006-07 45,000 8,760 53,760
2007-08 6,40,000 1,29,600 7,69,600
2008-09 - - -
2009-till date - - -
MORMUGAO
During the current year in November, a fine Rs. 5 lakh and the cost of combating the pollution has been recovered from concerned shipyard.
(d): The Directorate General of Shipping invariably takes appropriate action in such cases as per the provisions contained in the Merchant Shipping Act, 195
DEC8,2009
11th Meeting ofRajya Sabha
In reply to a question, the Union Minister of Shipping, Shri G. K. Vasan informed Rajya Sabha today that there are 14500 km of navigable inland waterways in the country of which five stretches have been declared as National Waterways.
The National Waterways in our country are developed keeping in view the terrain, silting pattern, topography and regional transportation needs etc. The first three National Waterways i.e. National Waterway-1, 2 & 3 are being developed as per the projected requirement of shipping and navigation by providing basic inland transport infrastructural facilities including navigational channel with targeted depth and width for most part of the year, aids for day and night navigation and terminals at selected locations for berthing and loading/unloading of vessels. For National Waterway - 4 and 5, which were declared as National Waterways in November 2008, proposals for development of these waterways have been initiated.
The year of declaration of each stretch as National Waterway as under:
(i) National Waterway-1: Allahabad-Haldia stretch of the Ganga – Bhagirathi-Hooghly river (1620 km). Declared as National Waterway in 1986.
(ii) National Waterway-2: Sadiya – Dhubri stretch of the Brahmaputra river (891 km). Declared as National Waterway in 1988.
(iii) National Waterway-3: Kollam-Kottapuram stretch of West Coast Canal and Champakara and Udyogmandal canals (205 km). Declared as National Waterway in 1993.
(iv) National Waterway- 4: Kakinada-Pudducherry stretch of canals and Kaluvelly tank, Bhadrachalam – Rajahmundry stretch of river Godavari and Wazirabad - Vijayawada stretch of river Krishna (1095 km). Declared as National Waterway in 2008.
(v) National Waterway- 5: Talcher-Dhamra stretch of rivers, Geonkhali-Charbatia stretch of East Coast Canal, Charbatia - Dhamra stretch of Matai river and Mahanadi delta rivers (620 km). Declared as National Waterway in 2008.
DEC14,2009
Lok Sabha
The Union Minister of Shipping, Shri G. K. Vasan in written reply to a question has informed Lok Sabha today that the Government proposes to develop/upgrade and enhance the dredging capacity of domestic dredging companies to solve the regular complaints on dredging problems from the ports. The Dredging Corporation of India Limited (DCI), the only Public Sector Undertaking in dredging sector under the administrative control of the Ministry of Shipping, is having 10 Nos. Trailer Suction Dredgers, 2 Cutter Suction Dredgers. DCI is presently having a hopper capacity of 54009 Cubic Meter. One Cutter Suction Dredger of 2000 Cub. Mtr capacity is under construction at Mazagon Dock Ltd, Mumbai. The vessel is expected to be ready by end of February, 2010 for delivery upon successful completion of trials. DCI is procuring one Backhole Dredger from Netherlands, which is likely to be delivered in August, 2010. It also has a proposal to procure 3 Nos. Trailer Suction Hopper Dredgers of 5000 cubic meter capacity each through global tender. Regarding allocation of funds no budgetary support is provided to DCI, being a Miniratna Company.
Government of India has formulated a Dredging Policy for protecting Indian Companies. According to this policy Indian companies owing Indian Flag Dredgers, including Dredging Corporation of India Limited, shall have the right of first refusal in a dredging tender if the rate quoted by them is within 10% of the lowest valid offer.
DEC14,2009
Lok Sabha
The Government has introduced tonnage tax regime in India since the year 2004 by which the tax outgo for Indian Shipping companies has been brought in the line with International Practice. Further, the liberalized policy on ship acquisition has been introduced and acquisition of all types of ships has been brought under Open General License (OGL). Besides, 100% FDI has been permitted in ship acquisition and registration formalities of newly acquired ships have been simplified.
The Government of India has further formulated the National Maritime DevelopmentProgramme (NMDP). It is a comprehensive programme aimed at various issues that need to be addressed to bring holistic growth in the Indian Shipping Industry.
The share of Indian Shipping Tonnage as compared to World Shipping Tonnage in term of tonnage (GT) by Flag of Registration stood at 1.19% on 1.1.2006, 1.16% on 1.1.2007 and 1.18% on 1.1.2008 as per data available.
The growth rate of Indian Shipping industry in comparison to other foreign shipping industry as per available data is as under:
Flag of Registration 01.01.2006 01.01.2007 01.01.2008
Tonnage (min grt) % of growth Tonnage (min grt) % of growth Tonnage (min grt) % of growth
Panama 141.80 7.83 154.96 9.28 168.17 8.52
Liberia 59.60 10.58 68.40 14.77 76.57 11.94
Bahamas 38.40 8.47 40.83 6.33 43.74 7.13
Greece 30.70 -4.06 32.05 4.40 35.70 11.39
Malta 23.00 2.68 24.85 8.04 27.75 11.67
Cyprus 19.00 -10.80 19.03 0.16 18.95 -0.42
Singapore 31.00 17.87 32.17 3.77 36.25 12.68
Norway(NIS) 14.20 -7.79 14.80 4.23 14.71 -0.61
Japan 12.80 -3.03 12.80 0.00 12.79 -0.08
China 22.30 9.31 23.49 5.34 24.92 6.09
USA 11.10 3.74 11.22 1.08 11.41 1.69
Russia 8.30 -3.49 - - - -
Germany 11.50 40.24 11.36 -1.22 12.93 13.82
Italy 11.60 5.45 12.57 8.36 12.97 3.18
India 8.10 8.00 8.38 3.46 9.17 9.43
Marshall Islands 29.20 29.78 32.84 12.47 35.96 9.50
Hong Kong 29.80 14.18 32.68 9.66 35.82 9.61
South Korea 9.30 19.23 10.47 12.58 13.1 25.12
Isle of Man 8.40 - 8.63 2.74 - -
Denmark(Dis) - - - - 8.97 -
UK 11.20 0.90 12.15 8.48 12.69 4.44
Bermuda - - 8.41 - 9.17 9.04
World Total (including other countries)
675.11
6.60
721.86
6.92
774.94
7.35
Note: Vessels of 100 GT and over
This information was given by the Union Minister of Shipping, Shri G. K. Vasan in written reply to a question in Lok Sabha today.
DEC14,2009
The Government has constituted a ‘National Committee on Strengthening Maritime and Coastal Security against threats from the Sea’ in August, 2009 with the Cabinet Secretary as the Chairman. The Committee includes Chief Secretaries/Administrators of all the coastal States/UTs as well as following representatives from all the concerned Ministries/Departments/Organisations in Government of India:
1. Chief of Naval Staff
2. Foreign Secretary
3. Defence Secretary
4. Home Secretary
5. Secretary (Boarder Management), Ministry of Home Affairs
6. Secretary, Department of Shipping, Ministry of Shipping, Road Transport and Highways
7. Secretary, Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture
8. Secretary, Ministry of Petroleum and Natural Gas
9. Deputy NSA cum Secretary, NSCS
10. Secretary(R), Cabinet Secretariat
11. Director, Intelligence Bureau
12. Director General, Indian Coast Guard, Ministry of Defence
13. Chief Secretaries/Administrators of coastal States and Union Territories.
The Committee will help in monitoring timely implementation of proposals relating to Maritime and Coastal Security. It will also help in ensuring effective coordination among various Central Ministries and Agencies and the Coastal State Governments/Union Territories.
The Union Shipping Minister, Shri G. K. Vasan gave this information in written reply to a question in Lok Sabha today.
DEC14,2009
Lok Sabha
The overall status of National Maritime Development Programme (NMDP) projects for the periods up to 31.10.2009 is as follows:-
Project completed 47 amounting to Rs.5495.78 crores
Work in progress 71 amounting to Rs.16487.95 crores
Approved but work yet to be awarded 15 amounting to Rs.2595.15 crores
Firmed up and under process for approval 33 amounting to Rs.12268.37 crores
Under preliminary planning stage 88 amounting to Rs.22684.20 crores
Dropped 21 amounting to Rs.3121.14 crores.
Capacity of the Ports viz-a-viz the traffic handled by them is as under:
(In million Tonnes)
PORT CAPACITY AS ON 31.03.2009 TRAFFIC DURING 2008-09
Kolkata 15.76 12.43
Haldia 46.70 41.79
Paradip 71.00 46.41
Visakhapatnam 62.23 63.91
Ennore 16.00 11.50
Chennai 55.75 57.49
Tuticorin 22.81 22.01
Cochin 28.37 15.23
New Mangalore 44.20 36.69
Mormugao 33.05 41.68
Mumbai 43.70 51.88
Jawaharlal Nehru 57.96 57.29
Kandla 77.24 72.22
Total 574.77 530.53
The traffic handled is more than the capacity in only four ports i.e. Visakhapatnam, Chennai, Mormugao and Mumbai.
There is no proposal for restructuring the Major Ports as of now with the Union Ministry of Shipping. A bill, though, introduced in the 13th Lok Sabha for corporatisation of the Major Ports, lapsed as the 13th Lok Sabha was dissolved. The final decision in the matter would depend upon the evaluation of the performance of Ennore Port Limited which is the onlycorporatised Port under the Ministry.
This information was given by Union Minister of Shipping, Shri G. K. Vasan in written reply to a question in Lok Sabha today.
DEC15,2009
Shri G. K. Vasan, the Union Minister of Shipping, in written reply to a question informed Rajya Sabha today that the Government is not contemplating to trifurcate the Directorate General of Shipping (DG-Shipping) with a view to create separate directorates for each of the three regions.
Giving the details of steps proposed vis-a-vis those actually implemented for modernization of DG-Shipping during the Tenth Five Year Plan, the reply stated that:
(i) The DG Shipping and allied offices have been fully computerized and connected by internet.
(ii) To cope with increasing work load in view of the growth in shipping activities and international trade, the Directorate has set up offices of Mercantile Marine Departments (MMD) at four new locations at Kandla, Haldia, Paradip and New Mangalore, while MMD, Kochi andKandla have been upgraded to a regional level MMD. The Directorate has started an e-Governance project that enable users to access information and processes regarding regulatory service of the Directorate online.
(iii) Training examination and certification process in MMDs have been tested under Quality Certification System ISO 9001.
(iv) Technical officer were given training in technical and administrative functions with a view to improve their performance.
The volume of vessels inspected by DG-Shipping year wise during the last Five Year Plan is as under:
Year Port State control Flag State Inspection
2002 513 246
2003 452 296
2004 878 377
2005 913 357
2006 659 473
2007 657 448
For the current Plan period no projection has been made. However the figures for the first two years of the Plan period are:
Year Port State control Flag State Inspection
2008 829 378
2009 (upto October only) 550 261
Maritime States Development Council (MSDC) was held on November 12. The meeting was presided over by the Union Minister for Shipping, Shri G.K. Vasan at New Delhi and was attended by the representatives of Maritime States, Major Ports, Indian Ports Association, Indian Navy, Coast Guard, DG (Shipping) among others.
The following resolutions were adopted unanimously at the end of the meeting:
1. All the members of Maritime States would provide data on monthly basis on regular traffic handled by the Ports and on quarterly and annual basis on capacity enhancement achieved, to the Ministry of Shipping as a first step to an integrated planning for exim traffic across the seaboard.
2. Maritime States that had not yet restructured their port administrations – namely, Kerala, Karnataka, Goa, Orissa and West Bengal would endeavour to form their State Maritime Boards by March, 2010.
3. Safety norms for passenger boats and barges running/plying in coastal area, backwater and rivers would be reviewed, revised and strictly implemented in consultation with DG(Shipping), Ministry of Shipping.
4. Priority would be given by all Maritime States to install VTMS in their Ports.
5. A Committee comprising the Indian Navy, concerned Maritime State, the Members of State Maritime Boards, Coast Guard, State Police, Customs and the Ministry of Shipping be set up for sharing information on Traffic, Port and Ship security related issues. The Committee should hold meetings quarterly to review the security aspect of coastal States. Indian Navy would convene these meetings regularly.
6. All the Members of MSDC would notify the model rules on the basis of draft rule circulated by DG(Shipping) by 31.3.2010.
7. In the light of recommendation of the M.S. Swaminathan Committee Report submitted to M/o Environment & Forest, the Maritime States urged that existing projects approved as part of the National Maritime Development Programme (NMDP) and 11th Five Year Plan to create the necessary capacities to handle the projected international trade should be allowed to continue with the requirement that additional measures, if necessary for containment of damage to the coast liNE.
OVERALL ACHIEVMENTS IN 2009 BY MINISTRY
The approval of Cruise Shipping Policy, declaration of new Waterways, 'Navratna' status to the Shipping Corporation of India, acquisition of three new ships by SCI, setting up of four new lighthouses along with automation of 30 lighthouses, steps to protect seafarers, steps to set up National Maritime Complex and approval of the Parliament for setting up of Indian Maritime University in Chennai marked the main activities of the Shipping Sector.
Cruise Shipping Policy
During the year 2009, the Government approved Cruise Shipping Policy which is expected to carve a prominent space in world tourism and it would showcase India as a major source and destination of world tourism. The Cruise Shipping Policy was circulated to all the concerned Ministries, Stakeholders, Major Port Trusts and Maritime Boards in September this year for taking further necessary steps in implementing the policy.
Inland Water Transport
Two waterways have been declared as new National Waterways namely: (i) the Kakinada-Puducherry stretch of Canals and the Kaluvelly Tank, Bhadrachalam-Rajahmundry stretch of River Godavari and Wazirabad-Vijayawada stretch of River Krishna (1095 kms) and (ii) the Talcher-Dhamra stretch of river Brahmani, Geonkhali-Charbatia stretch of East Coast Canal, Charbatia-Dhamra stretch of Matai river and Mangalgudi-Paradip stretch of Mahanadi delta rivers (623 Kms). Apart from this, MoU was signed between Indian Waterways Authority of India (IWAI) and NTPC for transportation of imported coal IWT mode from Haldia to Farakka/Kahalgaon/Barh through National Waterway. Construction of low level jetty of fixed terminal has been completed at Patna and Pandu (Guwahati). IWAI has ordered eight new dredgers.
Shipping Corporation of India
The Government conferred the much coveted "Navratna status" on the Shipping Corporation of India Ltd (SCI) making it the 17th Central Public Sector Enterprise (CPSE) in the country to join the elite club of Navratna PSUs. Earlier the SCI was 'Mini Ratna' Category-I PSU with effect from 24/02/2000. The Company has an ambitious ship acquisition programme of ordering/ acquiring 62 new building ships during the 11th Five Year Plan, which forms part of the National Maritime Development Programme. Presently the Company has total 29 ships on order at various reputed shipyards. During the year, the SCI has taken delivery of 3 new building ships which have been named as follows "SCI Chennai" SCI Mumbai" and M.T. Desh Viraat.
International Cooperation
In order to deepen and expend the cooperation between the two countries in the fields of ports and maritime transport and logistics, a Memorandum of Understanding was signed in February this year with the Ministry of Transport, Public Works and Water Management of Netherland. Similarly, a trilateral Agreement among India, Brazil and South Africa signed in October this year envisaging a five year Action Plan on Maritime transport Project to further strengthen Maritime relation and consolidate them on the basis of quality and mutual benefit.
Aid to Navigation
Three New Lighthouses at Iskapalipallam (Andhra Pradesh), Satpati (Maharashtra) and Chidiya Tapu (A&N) have been established during the year 2009. Apart from this, automation of Mumbai Lighthouse Region (28 Lighthouses) with five Remote Control Stations have been made functional. Automation of Port Blair Lighthouses Region (30 Lighthouses) with three Remote Control Stations is underway. Bid process for establishment of National AIS Network and automation of Kolkata, Visakhapatnam, Chennai and Cochin are in progress. An amount of Rs.111 crore has been collected as Lighthouse (Revenue) till 30th November, 2009.
Process on for two International Size Shipyards
National Maritime Development Programme has envisaged setting up of two international size shipyards. For this purpose Govt. has nominated Ennore Port Ltd. and Mumbai Port Trust as the nodal agencies for East-Coast and West Coast respectively who have been authorized to appoint consultants to identify three or four alternative sites each for setting up of shipyard on West Coast and East Coast of India and also suggest optimal location with detailed justification. The process for appointment of consultants has been initiated.
Shipbuilding Subsidy
Government has been operating a shipbuilding subsidy scheme for Central Public Sector Shipyards intermittently since 1971 with some gaps and modifications from time to time. The scheme was extended to all the Shipyards including private sector Shipyards, w.e.f. 25th October, 2002. The previous shipbuilding subsidy scheme expired on 14.8.2007. Government of India decided in March, 2009 to liquidate the committed liabilities in respect of shipbuilding subsidy for shipbuilding contracts signed on or before 14.8.2007 for Central Public Sector Shipyards and for shipbuilding contracts signed on 25.10.2002 and before/upto 14.8.2007 i.e. the date of expiry of the previous shipbuilding subsidy scheme for non-central public sector shipyards and private sector shipyards. Revised guidelines dated 29th September, 2009 have been issued by the Ministry.
Indian Maritime University
The Government has established Indian Maritime University (IMU) in Chennai by an Act of Parliament in November, 2008 with campuses at Chennai, Kolkata, Mumbai and Visakhapatnam. Formation of IMU will facilitate and promote maritime studies, research and extension work. As there are a sizeable number of private institutions imparting maritime education and training, the University will standardize the quality of such education and training through affiliation and academic supervision. The existing seven maritime training and research institutes (Government and Government aided) will be merged with IMU.
Protection of Seafarers
The causalities of Indian Seafarers have been a matter of great concern in the recent time. When casualty occurs, it is obligatory on flag state to carry out investigation under UNCLOS Article 94(7) into every marine casualty or incident of navigation on the high seas involving a ship flying its flag and causing loss of lives and serious injury to nationals of another state. While there may not be much of a problem with the responsible flag states, it becomes difficult with flags of convenience state. The Ministry of Shipping has taken various steps in this regard. The matter has been taken up with the International Maritime Organisation (IMO) for consolidation of the international conventions with regard to shipping casualty and making the law stringent to bring around the non-responsible flag state to carry out their responsibility. The Government has approved the establishment of Indian Maritime Casualty Emigration Cell in DG (Shipping).
National Maritime Complex
To showcase various facets of Indian Maritime Industry, it is proposed to have a National Maritime Complex at Chennai and a Society has been formed in November, 2008 to fulfill the requirements of maritime sector by providing maritime related and integrated services at a single location.
PORT SECTOR
Model Concession Agreement (MCA)
The Government has finalized a Model Concession Agreement (MCA) to ensure uniformity in the contractual agreements to be entered by the Major Ports with the selected bidders for the Build, Operate & Transfer (BOT) projects to be developed through Public Private Partnership (PPP) mode. It will also enable the prospective bidders to have prior knowledge of the contractual obligation of both parties and therefore, ensure transparency.
Upfront Tariff for PPP Projects
For fixing tariffs, the Ministry of Shipping has formulated new Tariff Guidelines. Tariff Authority of Major Ports (TAMP) an autonomous body under the Ministry of Shipping, follows a normative cost based approach for fixing tariffs PPP projects before the bids are finalized. During the year 2009 TAMP has fixed upfront tariff for a number of PPP projects at different Major Ports in the country.
7 PPP projects were awarded upto December, 2009 in various ports. This will inject FDI into the port sector and will result in creation of additional capacity in the ports.
Rail Road Connectivity of Major Ports
The Committee on Infrastructure (COI) headed by the Prime Minister set up a Committee of Secretaries (COS) under the Chairmanship of Member Secretary (Planning Commission) to review the rail road connectivity of Major Ports which recommended that each Major Port should preferably have minimum four lane road and double line rail connectivity and this should be established in fixed time frame.
COS recommended time completion of the eight ongoing rail connectivity projects (Haldia, Paradip-2 projects, NMPT, Kanda -2 projects, JNPT and Tuticorin) and ten ongoing road projects (Haldia, Paradip, Visakhapatnam, Chennai-Ennore, Tuticorin, Cochin, NMPT, Mormugao, JNPT-2 Projects). COS also recommenced five rail connectivity (Kolkata, Mormugao, Haldia, Mumbai and Ennore) and four road connectivity projects ( Kolkata, Paradip, Tuticorin and Cochin). Railways have already completed projects for Rail connectivity to the Major Ports at Haldia, New Mangalore, Kandla and JNPT. The project for Road connectivity to VPT was also completed.
Ennore Port Ltd. (EPL)
The project of Development of Container Terminal at EPL with 1.5 million TEUs Capacity and costing for Rs.1407 crores, on BOT basis has been approved by CCEA. RFP has been issued.
Dredging Corporation of India Ltd. (DCI)
Dredging Corporation of India has a proposal for acquisition of 3 TSHDs at a cost of Rs.1570 crores. The proposal has been considered by PIB. Note for CCI is under consideration.
Developmental Activities to improve connectivity
18.3 Km four-lane Elevated Expressway from Chennai Port to Maduravoyal on National Highway 4 has been approved by the Government recently.
Chennai-Ennore Port Road Connectivity of 29.3 Kms length with an estimated project cost of Rs.309 crores is also underway. A progress of 9.7 per cent in case of Phase I has been completed.
4-laning of Tuticorin-Madurai Road (NH 45 B) with road length of 144 Kms at an estimated cost of Rs.629 crores has been sanctioned, work awarded and Financial Close achieved in January, 2007 and scheduled to be completed by 2010.
Doubling of Madurai-Dindigul Section of railway line connecting Tuticorin Port of 62.06 Kms. Length with estimated project cost of Rs.126 crores has been sanctioned and the work has been awarded. Ambaturai-Kodaikanal road doubling has been merged with his work.
Project Report for Puttur-Attipattu Chord Line connecting Ennore Port 144 Kms Length at an estimated cost of Rs.435 crores is under preparation. Project is sanctioned in Budget 2008-09 on SPV mode with 50 per cent cost sharing with Ennore Port.
Port Operation
Manning Scales were implemented in Major Ports of Paradip, Visakhapatnam, New Mangalore and Cochin. Remaining major ports are in the process of implementing the manning scales with local adjustments, wherever necessary.
Priority berthing was accorded to vessels carrying Sugar and fertilizers in keeping with the directions of Committees of Secretaries. In order to expedite the evacuation of Sugar & pulses from ports, rates of demurrage were hiked steeply. This had a salutary effect on the availability of essential commodities in the market.
The Pay Revision Committee (PRC) for Class I & II employees of Port and Dock Workers has finalized its report. This is shortly being submitted for approval.
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