India wants to promote coastal trade and to provide sustainable, cost-effective and efficient seaborne connectivity, as well as to reduce congestion on the road and rail besides bringing down logistics costs.
For this reason, Green freight Corridor-2 service started from Cochin to Beypore and Azhikkal ports. Various steps are being taken to promote coastal trade and to provide sustainable, cost-effective and multimodal customer solutions.
This aims to minimize congestion on the road and rail traffic. However, efforts are being made to make coastal shipping more economical and effective.
Currently, green freight corridor service is operated by Round the coast Private Limited, Mumbai twice a week the vessel calling at Beypore and Azhikkal ports with containers.
The steps taken to promote coastal shipping includes:
- Licensing relaxation to foreign flag vessels for carrying trans-shipment containers, empty containers, fertilizers and agricultural, fisheries, animal husbandry and horticultural commodities on coastal routes;
- Minimum 40% discount is offered by major ports on vessels and cargo related charges to coastal vessels;
- Prioritization in berthing of coastal ships at major ports, subsidy to Indian flagged vessels for carrying Public Sector Unit’s cargo;
- GST Reduced on Banker Fuel from 18% to 5%.
As of now, there are 63 Projects worth more than Rs 17,000 Cr. identified under Sagarmala Programme in the state of Kerala for improving the infrastructure related to Port led Industrialization, Port Modernization, Port Connectivity enhancement, Coastal Community Development & Coastal Shipping, and Inland Waterways.
There are also 6 projects worth Rs. 128Cr partially funded through Sagarmala Programme. Out of these 6 Projects, 4 projects worth Rs 104 Cr have been completed and 2 projects worth Rs. 24 Cr. are under implementation.
