According to shipping ministry
sources, coastal shipping will be accorded infrastructure
status and a Coastal Shipping Development Authority
will be set up to provide soft loans. Income tax
incentives will be given to multi-modal operators
successful in diverting traffic to coastal shipping.
Other sops include duty waiver on bunkers and spare
parts of the vessels involved in coastal shipping.
A separate fund, only for inland
waterway transport (IWT) projects, would also be
put in place, the sources said. The ministry has
proposed a 10-year tax holiday for the ship-building
and repair sector for improving the viability of
ship yards.
Two international shipyards --
at a cost of over US $ 1.33 bln, to be financed
through foreign direct investment or private participation
-- have been planned. The ministry has also proposed
an outlay of approx US $ 888.89 mln to upgrade the
existing shipyards.
There has however been some watering
down of tDedicated terminals, at a cost over US
$ 533 mln, would be constructed at all major ports
for the exclusive use of coastal vessels. Expenditure
to the tune of approx US $ 1.27 bln would be undertaken
for the construction of six new National Waterways
and infrastructure development of the existing three
National Waterwayshe initial proposals/ changes-
e.g. SEBI has decided not to charge any margins
from institutional players during an IPO, though
the primary market advisory committee favoured such
a requirement.
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