India: Minister of Shipping Updates on Development of Coastal Shipping

The Minister of Shipping Shri G.K. Vasan has refuted that infrastructure clogs are choking growth opportunities in Ports along the coast line restraining the US and other countries from developing commercial ties with India.

In a written reply to a question in the Lok Sabha, he however agreed that the Coastal shipping, which accounts for significant share of trade volume in the US, China and Europe, is only seven percent of India’s total domestic cargo transport network. The minister said that the Union government has taken several measures to optimize domestic shipping transport.

In order to boost the domestic shipping sector, the government has exempted ships and vessels from excise duty and removed countervailing duty (CVD) on important ships and vessels. Moreover, in the 12th Five Year Plan, Rs 300 crores has been allocated for promoting coastal shipping. These measures are expected to augment the fleet capacity of Indian ships including coastal ships, he added.

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PIB, December 11, 2013