Interaction with the concerned stakeholders including the Shipping industry and resolving the issues raised by them is an ongoing process. In consultation with the stakeholders necessary modification in the Tariff Guidelines are made from time to time to promote the development of the Port sector.
To allow the competitive market forces to play a greater role in determination of tariff at Major Port Trusts, the Government have issued two new policy guidelines viz. Guidelines for Determination of Tariff for Projects at Major Ports, 2013 and Guidelines for Determination of Tariff for Major Port Trusts, 2015. These guidelines impart flexibility to the PPP operators in the Major Ports and Major Ports owned terminals in determining their tariff, subject to a ceiling rate.
In order to make the shipping industry more attractive and competitive, Indian shipping industry has been provided cargo support. This is presently being done through Right of First Refusal policy of FOB import for government owned/controlled cargoes. In the Union Budget 2014-15, Government has increased the abatement of service tax from 50% to 60%. With this change, only 40% of the value of the service for transportation of goods by vessels would be subject to levy of service tax. Government has taken a policy decision to allow shipping enterprises based in India to acquire ships abroad and also flag them in the country of their convenience. Recently, Government has exempted Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels for transportation of EXIM and empty containers along the coast.
This information was given by Minister of State for Ministry of Shipping Shri Pon Radhakrishnan in a written reply in Lok Sabha today.
To allow the competitive market forces to play a greater role in determination of tariff at Major Port Trusts, the Government have issued two new policy guidelines viz. Guidelines for Determination of Tariff for Projects at Major Ports, 2013 and Guidelines for Determination of Tariff for Major Port Trusts, 2015. These guidelines impart flexibility to the PPP operators in the Major Ports and Major Ports owned terminals in determining their tariff, subject to a ceiling rate.
In order to make the shipping industry more attractive and competitive, Indian shipping industry has been provided cargo support. This is presently being done through Right of First Refusal policy of FOB import for government owned/controlled cargoes. In the Union Budget 2014-15, Government has increased the abatement of service tax from 50% to 60%. With this change, only 40% of the value of the service for transportation of goods by vessels would be subject to levy of service tax. Government has taken a policy decision to allow shipping enterprises based in India to acquire ships abroad and also flag them in the country of their convenience. Recently, Government has exempted Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels for transportation of EXIM and empty containers along the coast.
This information was given by Minister of State for Ministry of Shipping Shri Pon Radhakrishnan in a written reply in Lok Sabha today.
