Over the last two years, a host of policy and regulatory reforms by the Government has resulted in capacity building and service delivery improvement. View more at #Hindustan360.
Ports & Shipping Sector The Indian maritime industry is an integral part of the country’s trade and commerce. It supports 90% of India’s trade by volume. India’s has a coastline of 7,517 kms with potentially navigable waterways of 14,500 kms. 12 major and 200 non- major ports are dotted along the coast.
Growth trends during 2014-16:
- An additional capacity of 94 million tonnes has been added to Major Ports in FY 2015- 16, which has been the highest ever capacity addition.
- The cargo handled by major ports went up by 6.27% in FY 2016-17 (Apr-Oct) to 370.04 million tonnes (MT) compared to 348.21 MT during the same period previous year.
- The turn-around time in ports has been reduced by 5.33% and the preberthing detention has decreased by 13.4%.
- 56 New Projects worth INR 25000 crores have been awarded during the last two years, which will create an additional port capacity of 317 million tonnes per annum.
Policy Initiatives & Investments:
- FDI Policy: Foreign Direct Investment (FDI) of up to 100 per cent allowed under the automatic route for port and harbour construction and maintenance projects.
- Ship building and ship repair policy approved in December 2015 provides a boost to the shipbuilding and ship repair industry.
- Financial assistance equal to 20% of contract price or the fair price, whichever is lower, will be granted to shipyards for a period of at least ten years commencing from FY 2015-16. This rate will be reduced by 3% every three years and will be given for all types of ships.
- All Government departments/agencies, will undertake bulk tendering to procure vessels, with deliveries starting from 2017-2018. Right of First Refusal granted to Indian shipyards for such orders till 2025.
- Preferential procurement: From 2025 onwards only Indian-built vessels will be procured by Government departments/agencies for Government/own purpose. Similar relaxation/benefit will be applicable for repair of vessels.
- National Waterways (NWs) Act 2016 to promote inland waterways for trade came into effect on April 12, 2016. It has declared 106 new waterways as NWs, in addition to the five existing NWs notified earlier.
- After the Techno Economic Feasibility (TEF) study and Detailed Project Report (DPR) commissioned on each of the NWs, 37 NWs are planned be taken up for development in the next three years by Inland Waterways Authority of India (IWAI).
Major Investments & FDI Inflows:
Total FDI equity inflows in Sea Transport and Ports sector was USD 1.07 billion during the two years from April 2014 to September 2016.
View more at #Hindustan360.