Annualreport Shipping

GOVERNMENT OF INDIA
MINISTRY OF SHIPPING
0
CONTENTS
CHAPTER
SUBJECT
Page Nos.
Introduction
1-3
II
Year At a Glance
4-13
III
Ports
14-25
IV
Shipping
26-38
Shipbuilding and ship repair
39-45
VI
Lighthouses and lightships
46-50
VII
Inland Waterways Transport
51-57
VIII
Chartering
58-59
IX
Transport Research
60
International Cooperation
61-62
XI
Administration and Finance
63-70
XII
Official Language
71-73
XIII
Extracts from Results- Framework Document

(RFD) for Ministry of Shipping (2011-12)
(Section-1 : Vision, Mission, Objectives and
Functions, Performance Evaluation Report
containing corresponding achievements and
composite score and Section 6 outcome/impact
of Department/Ministry)
List of Annexures - I to XI
74-87
88-102
CHAPTER I
Introduction
1.1
Ministry of Shipping was formed in 2009 by bifurcating the erstwhile Ministry of
Shipping, Road Transport and Highways into two independent Ministries.
1.2
Maritime Transport is a critical infrastructure for the economic development of a
country. It influences the pace, structure and pattern of development. The Ministry of
Shipping encompasses within its fold shipping and port sectors which also include
shipbuilding and ship repair, major ports and inland water transport. The Ministry has been
entrusted with the responsibility to formulate policies and programmes on these sectors and
their implementation.
1.3
Comprehensive policy package is necessary to address the diverse issues facing the
maritime transport sector. The capacity of the ports in terms of their berths and cargo
handling equipment needs to keep pace with the growing requirements of the overseas
trade. The shipping industry must be enabled to carry higher shares of the sea-borne trade
in indigenous bottoms.
1.4
Historically, investments in the transport sector, particularly in the ports, have been
made by the State, mainly because of the large resources required, long gestation period,
uncertain returns and a number of externalities associated with this infrastructure sector.
However, the growing resource requirements and the concern for managerial efficiency and
consumer responsiveness have led to the active involvement of the private sector in
infrastructure services in recent times. To encourage private sector participation, Ministry of
Shipping has laid down comprehensive policy guidelines for private sector participation in
the Major ports.
Functions
1.5
The subjects allocated to the Ministry of Shipping are listed at Annexure - I.
Organizational set-up
1.6
Thiru G. K. Vasan is the Union Minister of Shipping.
1.7
Shri Milind Deora is the Minister of State for Shipping.
1.8
Secretary (Shipping) is assisted by Joint Secretary (Shipping), Joint Secretary

(Ports), Adviser, Joint Secretary (Coordination), Joint Secretary (SM), Chief
Controller of Chartering (CCC), Development Adviser (Ports), officers at the level of
Directors, Deputy Secretaries, Under Secretaries and other Secretariat/ Technical
Officers.
1.9
The Finance Wing is headed by Additional Secretary & Financial Adviser who assists
in formulating and processing of all policies and other proposals having financial
implications.
1.10
The Accounts side is headed by a Chief Controller of Accounts who is, inter-alia,
responsible for accounting, payment, budget, internal audit and cash management.
1.11
Adviser (Transport Research) renders necessary data support to various Wings of

the Ministry for policy planning, transport coordination, economic & statistical analysis
on various modes of transport with which the Ministry is concerned.
1.12
The Finance Wing, Accounts Wing and Transport Research Wing are common with
the Ministry of Road Transport & Highways.
1.13
The Development Adviser (Ports) renders technical advice on matters relating to the
development of Major Port Projects, Andaman & Lakshadweep Harbour Works
(ALHW) and the Dredging Corporation of India. He is also associated with processing
technical and administrative matters related to the International Navigation
Association Permanent International Association for Navigational Congress (INAPIANC) of which India is a member country. DA(Ports) also coordinates the
Research Committee works of the Ministry in respect of Ports, Shipping and Inland
Water Transport (IWT) sectors.
1.14
The following attached/subordinate offices, autonomous organisations, societies/

associations and public sector undertakings are functioning under the administrative
control of the Ministry of Shipping:
(A)
ATTACHED/ SUBORDINATE OFFICES
1.
2.
3.
4.
(B)
Directorate General of Shipping

Andaman, Lakshadweep Harbour Works
Directorate General of Lighthouses and Lightships
Minor Ports Survey Organisation
AUTONOMOUS BODIES
1. Tariff Authority of Major Ports (TAMP)

2. Port Trusts at Mumbai, Kolkata, Kochi, Kandla, Chennai, Mormugao, Jawaharlal
3.
4.
5.
6.
(C)
Nehru (Nhava Sheva), Paradip, Tuticorin (V.O. Chidambaranar), Visakhapatnam

and New Mangalore
Dock Labour Board at Kolkata
Inland Waterways Authority of India
Seamen's Provident Fund Organisation
Indian Maritime University
SOCIETIES/ASSOCIATIONS
1. Seafarer's Welfare Fund Society

2. Indian Port Association.
(D)
PUBLIC SECTOR UNDERTAKINGS
1.
2.
3.
4.
5.
6.
7.
1.15
Shipping Corporation of India

Cochin Shipyard Limited
Central Inland Water Transport Corporation Limited
Dredging Corporation of India
Hooghly Dock and Ports Engineers Limited
Ennore Port Limited
Sethusamudram Corporation Limited.
The Organisation Chart of the Ministry of Shipping is given at Annexure - II.
CHAPTER-II
YEAR AT A GLANCE
Background:
2.1
India has a long coastline of about 7517km, spread on the western and
eastern shelves of the mainland and also along the Islands. It is an important natural
resource for the country's trade.
2.2
The Maritime Sector in India comprises Ports, Shipping, Shipbuilding and
Ship repair and Inland Water Transport Systems. India has 12 Major ports and about
200 minor ports. Indian Shipping Industry has over the years, played a crucial role in
the transport sector of Indias economy. Approximately 90% of the countrys trade by
volume and 70% by value is moved through Maritime Transport. Therefore, shipping
and ocean resources, ship design and construction, ports and harbours, issues
relating to human resource development, finance, ancillaries and new technologies
need to be developed in the light of the emerging scenario. Shipping continues to
remain unchallenged as the worlds most efficient means of transportation and we
need to do all we can to recognize, reward and promote quality within the industry.
Twelfth Five Year Plan:
2.3 Planning Commission has approved a Gross Budgetary Support (GBS) (at
current prices) of Rs 6,960 crore for the Ministry of Shipping for the 12th Plan period.
This implies a 108.5% increase in GBS allocation to the Ministry during the current
Plan compared to 11th Plan allocation of Rs. 3337.58 crore. Out of GBS of Rs
6960.00 crore approved by Planning Commission, the share of Ports, Shipping and
IWT sectors are Rs. 3057.47 crore, Rs. 2402.53 crore and Rs. 1500.00 crore
respectively.
2.4
A comparison of actual expenditure during the 11th Plan and allocation of GBS
and Internal Extra Budgetary Recourses (IEBR) during the 12th Plan is given below:
(Rs in Crore)
Sector
Ports
Shipping
IWT
Total
GBS
th
th
11
Plan- 12
Plan
Actual
Allocation
1227.90
3057.47
388.38
2402.53
535.25
1500.00
2151.53
6960.00
IEBR
th
th
11
Plan- 12
PlanActual
Allocation
5676.66
12706.96
8864.76
6239.22
0.00
0.00
14541.42
18946.18
TOTAL
th
th
11
Plan- 12
PlanActual
Allocation
6904.56
15764.43
9253.14
8641.75
535.25
1500.00
16692.95
25906.18
Annual Plan 2012-13

2.5
The Budget Estimate of GBS for FY 2012-13 was Rs. 817.00 crore for the
Ministry. However, at the stage of Revised Estimate (RE), this has been reduced to
Rs. 502.00 crore. Approved allocation of IEBR for 2012-13 stands at Rs. 4858.47
crore.
2.6
Against the RE allocation of Rs 502.00crore, actual expenditure as on
31/12/2012 is Rs. 377.63 crore. This means that RE allocation has almost been
spent by the Ports and Shipping sectors. Only Inland Waterways Authority of India
(IWAI) is lagging a little bit as its expenditure is seasonal in nature, which would pick
up from January onwards. Its actual expenditure by the end of December is Rs. 73
crore against an RE of Rs 143.64 crore.
Summary of Annual Plan 2012-13 is given below:
(Rs in Crore)
Sector
2012-13 (BE)
Actual Exp. as on
31/12/2012
2012-13 (RE)
GBS
IEBR
GBS
IEBR
GBS
Ports
380.98
2673.38
186.50
2388.43
174.80
Shipping
224.30
2185.09
167.39
2662.87
129.72
IWAI
211.72
0.00
148.11
0.00
103.34
Total
817.00
4858.47
502.00
5051.30
407.68
Annual Plan 2013-14

2.7
Total Plan allocation for the Ministry during the year 2013-14 stands at Rs
7087.30 crore, out of which the share of GBS and IEBR each is Rs. 852.00 crore
and Rs. 6235.30 respectively.
Sector wise allocations of GBS and IEBR for 2013-14 are given below:
(Rs in Crore)
BE 2013-14
Sector
Ports
Shipping
IWT
Total
GBS
453.00
199.00
200.00
852.00
IEBR
4202.30
2033.00
0.00
6235.30
Out of the GBS of Rs. 852.00 crore, Rs. 76.20 crore has been earmarked for
the North Eastern Region.
Major Initiatives and Achievements

PORTS SECTOR
Cargo Traffic at Indian Ports
2.8
During April November 2012, major and non-major ports in India handled a
total cargo throughput of 623.05 MT reflecting an increase of 2.81 per cent over the
same period last year. There is marginal deceleration in growth of cargo handled at
major ports from 1.33 per cent in April-November 2011 to (-) 2.88 per cent in April
November 2012. However, the growth at non-major ports is encouraging. As
compared to growth of 9.00 percent in April November 2011, it has reached 12
percent (estimated) in the corresponding period in 2012. Out of 12 major ports, cargo
handling at 6 ports is showing positive growth, among which, growth in throughput at
Ennore was the highest at 19.82%, followed by Kandla (14.76%), New Mangalore
(12.48%), Mumbai (9.14%), V O Chidambaranar (1.99%) and marginal increase at
Cochin at 0.54%. In contrast, six ports have shown a contraction in cargo growth,
ranging from 40.46% to 1.76% in ports viz. Mormugao (-40.46%), Visakhapatnam
(-17.72%), Kolkata (-15.23%), Chennai (-6.00%), Paradip (-2.48%) and JNPT (1.76%).
Commodity-wise Cargo Traffic at Major Ports
2.9
The marginal decrease of 2.88% in the cargo throughput in the major ports
during April 2012 to November 2012 over the corresponding period during 2010-12
is mainly due to decline in exports in Iron ore to the tune of 53.38% due to restriction
imposed by the Government on the Iron ore mining activity which is followed by the
contraction in import of Fertiliser and Fertiliser raw materials in the major ports by
24.34%. The energy commodities viz. Coal and POL are showing an impressive
growth of 17.99% and 3.48% respectively. The other general traffic increased by
7.19%. The container traffic both in terms of tonnage and twenty equivalent units is
almost static. Jawaharlal Nehru Port Trust continued to be the leading container
handling port in the country with a share of about 48% followed by Chennai (25%)
and the remaining share of 27% is handled by the other major ports excepting
Ennore.
Cargo Traffic at Non-major Ports
2.10 During the eleventh five year plan (2007-12), the traffic at non-major ports
increased at an annual rate of close to 14.75 per cent. Non-major ports handled
more than 39 percent of the total maritime freight traffic of the country during 201112. The growth in cargo handled at non-major ports has been facilitated by sustained
growth in non-major ports located in Andhra Pradesh and Gujarat, aided by
substantial increase in the cargo traffic of coal, containers, building materials and
fertilizers. The growing importance of non-major ports in handling cargo traffic has
helped alleviate the congestion at major ports. Gujarat accounted for around three
fourth of the total traffic handled by non-major ports followed by Andhra Pradesh (13
per cent), Maharashtra (6 percent) and Goa (4 percent). Four maritime States
namely Gujarat, Maharashtra, Goa and Andhra Pradesh together accounted for
close to 96 per cent of the total traffic handled by the non-major ports in the current
year.
Port Efficiency
6
2.11 Efficiency at ports has an important bearing on the transaction cost of the
shipping lines. Major ports have improved their efficiency of operation particularly in
terms of turnaround time (TRT). TRT is the total time spent by a ship at the ports
from its entry until its departure. Average TRT for all major ports improved from 8.10
days in 1990-91 to 4.47 days in 2011-12. During 2011-12, the TRT ranged between
1.82 days at Cochin port to 6.42 days at Kandla. Amongst the 12 Major ports,
improvement in TRT during 2011-12 in comparison to 2010-11 was discernible in
most of the major ports except 4 ports viz. V.O. Chidambaranar, New Mangalore,
Mormugao, and Kandla. Improvement in the average TRT at major ports for the
selected years since 1990-91 to 2011-12 is shown in the graph below:
Major ports: Average TRT

10
8
6
4
Average TRT
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2000-01
1996-97
1990-91
Port Capacity Augmentation

Eleventh Five Year Plan target
2.12 The Eleventh Five year plan envisaged an increase in capacity of major ports
to 1,016.55 Metric Tonne (MT) by the end of 2011-12 from the pre-plan base level of
504.75 MT. Average annual growth in capacity addition was envisaged at 15 per
cent. Actual capacity addition during the plan (2006-07 to 2011-12) was, however,
moderate and showed a growth of 6.65 per cent per annum. The cargo handling
capacity at the end of March, 2012, was 696.53 MT.
Twelfth Five Year Plan target
2.13 The projected capacity during the terminal year of Twelfth five year plan
period for the Major ports would be 1229.24 MT, nearly 1.76 times of the existing
capacity. The expected demand by the end of the 12 th year plan in terms of cargo
handling at major Ports as per the Twelfth five year plan is 943.06 MT with an
estimated annual growth of 10.98%. The total plan outlay projected to augment the
capacity by 532.71 MT is Rs. 67,295.54 crores; most of the investment is expected
to flow from the private sector i.e. 51,036 crores (76%) and the remaining share of
24% is anticipated from internal resources and budgetary support of the
Government.
Maritime Agenda 2010-20

2.14 In the Maritime Agenda 2010-20 prepared by the Ministry of Shipping, a target
of 3,130 MT port capacity has been set for the year 2020. More than 50 per cent of
this capacity is to be created in the non-major ports as the traffic handling by these
ports is expected to increase to 1,280 MT. The objective of the Maritime agenda is
not only creating more capacity but augmenting port performance. This enlarged
scale of operation is expected to reduce transaction costs considerably and make
Indian ports globally competitive. The proposed investment in major and non-major
ports by 2020 is expected to be around Rs. 296000 crore (including 72 ongoing
projects worth around Rs. 18,000 crore). Most of this investment has to come from
the private sector including foreign direct investment (FDI). FDI up to 100 percent
under the automatic route is permitted for construction and maintenance of ports.
Private-sector participation will not only increase investment in the port infrastructure,
but also efficiencies in ports through induction of latest technology and better
management practices. Public funds will be mainly deployed for common use
infrastructure facilities like deepening of port channels, rail and road connectivity
from ports to hinterland etc.
Private-sector Participation
2.15 Maritime Agenda 2010-20 has estimated that investment required in new
projects of major ports will be Rs. 1,09,449.40 crore of which Rs. 72,878.20 crore is
expected to come through private sector participation and the balance Rs. 36,571.20
crore to be funded through internal and external budgetary support. States have also
identified projects for development of non-major ports at an estimated cost of Rs.
1,67,930.80 crore for the creation of additional capacity of 1293.60 MT. The private
sector is envisaged to fund most of the projects through Public Private Partnership
(PPP) viz. Design, Build, Operate, Finance and Transfer (DBFOT basis) or Build,
Operate, Own and Transfer (BOOT basis) etc.
2.16 Upto January, 2013, 22 projects have been awarded. These 22 projects
involve a capacity addition of 97.34 Metric Tonne Per Annum (MTPA) and
investment of Rs. 5755.72 crore. The projects awarded as on 05.02.2013 are as
under:
Sl. Project details
No.
1
2
3
4
5
6
7
Estimated Capacity
cost (Rs. (MTPA)
in crore)
Conversion of berth No-8 as Container Terminal at 312.23
7.20
V.O. Chidambaranar Port.
Development of Ship repair facility for 90 small and 785.00
0.00
120 medium size ships at Cochin Port (Captive)
Berth No. 14 at Kandla Port
188.88
2.0
Development of standalone container handling 600.00
10,000
facility with a quay length of 330 m North of NSICT
Terminal at Jawaharlal Nehru Port
Development of 2 MMTPA mechanized Coal Import 204.00
2.00
Terminal at Berth No. 11 at Mormugao Port
Captive Berth for Renuka Sugars at Kandla Port 22.00
1.5
(Captive)
Tuticorin Construction of Shallow draft berth for 86.17
2.30
8
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
handling cement at V.O. Chidambaranar Port

Development of Barge jetty at Bharathi Dock at
Chennai Port
Tuticorin Development of NCB-IV for handling
thermal coal & Copper concentrate at V.O.
Chidambaranar Port
Mechanization of Berth CQ 3 at Paradip Port
Capital Dredging of 3 nos., Mooring dolphins in
Mormugao Port.
Mobile Harbour Cranes Project at Mormugao Port.
Procurement of Mobile Harbour Cranes at Cochin
Port
Construction of 2nd Liquid Chemical berth at Pirpau
in Mumbai Port
Acquisition of one new super post Panamax size
RMQC at MCB at Jawaharlal Nehru Port
Replacement of 1 RMGC on line No. 1&2 at
Jawaharlal Nehru Port
Mechanization of berth no. 5 NSD (installation of 2
mobile harbor cranes) at Kolkata Port
Setting up of SPM facilities off Mangalore coast and
Crude Booster pumping Station at New Mangalore
(Captive).
Supply, operation and maintenance of 2 nos. Mobile
Harbour Crane at Berth No. 4B of Haldia Dock
Complex at Kolkata Port
Relocation of Jetties/facilities for Tugs/harbor craft in
SL canal at Vizag Port
2 SPMs for IOCL refinery at Paradip Port (Captive)
Installation of 2 Nos. of shore based unloaders of
capacity 2000 MT/Hr. in coal Berth-2 at Ennore Port
Ltd. (Captive)
27.29
1.00
355.00
7.28
40.00
50.00
4.00
5.00
36.00
0.25
19.00
2.80
130.00
2.00
33.00
1.80
22.65
0.01
26.00
2.25
1143
18.00
60
1.45
31.62
1.00
1500
82.88
22
4.00
SHIPPING SECTOR
2.17 Shipping is an important indicator of both commodity and services trade of
any country. It plays an important role in the Indian economy with around 95% of
Indias trade by volume and 68% in terms of value being transported by sea. As on
30 November 2012, India had a fleet strength of 1,153 ships with Gross Tonnage
(GT) of 10.41 million, with the public-sector Shipping Corporation of India having the
largest share of 32.62%. Of this, 349 ships with 9.33 million GT cater to Indias
overseas trade and the rest to coastal trade. The gross foreign exchange
earnings/savings of Indian ships in 2011-12 were Rs.10,666.45 crore.
2.18 Leaving aside the flag of convenience countries, the country with the highest
Dead Weight Tonnage (DWT) is Hong Kong with 7.6% of world tonnage. Though
India has one of the largest merchant shipping fleets among developing countries, it
is ranked eighteenth in the world in terms of DWT with a share of only 1.05 per cent
as on 1 January 2012. In comparison, China is ranked ninth with a share of 3.79 per
9
cent. Indian vessels are also older than the international average of 16.7 years. As
on 30 November 2012, 42.24% of the fleet was over 20 years of age and 11.10% in
the age group of 16-20 years.
2.19 According to preliminary estimates by UNCTAD, at 9.95 million Twenty foot
Equivalent Units of Container (TEUs) in 2011, India was ranked eighth among
developing countries in terms of container ship operation with a world share of
1.74%.
2.20 According to ISL Shipping Statistics and Market Review Sept./Oct., 2012,
India (ranked 11th) is one of the top 20 economies for shipbuilding based on
deliveries in the year 2011 (81 vessels of 1,415,000 DWT), though its share is only
0.7% in terms of compensated gross tonnage (cgt) in the world.
2.21 India is also one of the major countries supplying seafarers. At third rank and
with a 7.5% share in 2010, it supplied 46,497 officers to the global shipping industry.
However, India is ranked 22nd in 2011 according to the UNCTAD liner shipping
index, down from 21st position in 2004.
2.22 The global shipping industry has been experiencing turbulent waters in the
year 2012 due to the continued economic downturn. Indian shipping companies
faced problems of restricted cash inflows due to very low charter hire and freight
rates in all segments of shipping.
Declining freight rates:
2.23 Freight rates across all segments in the dry bulk sector were stifled by a
subdued commodity demand in the wake of frail global sentiments and new fleet
growth.
The Baltic Dry Index (BDI) moved from an average of 1020 in the first quarter
to 1057 in July, 761 in August and 707 in September 2012.
Going by the rough assimilation of various Very Large Crude Carrier (VLCC)
fixtures, the average rate tumbled from $13,605 a day in the first quarter of
FY13 to $835, $776 and $1,296 in the next three months. Similarly, for a
Suezmax, it dropped from an average of $10,193 a day during April to June,
to $7,604, $2,485 and $1,722 in the next three months.
Average earnings ($ per day)
Route
2010
VLCC average earnings

Suezmax average earnings
Aframax average earnings
Clear product average
earnings
Dirty product average
earnings
Capesize average earnings
Panamax average earnings
Supramax average earnings
10
2011
2012
37929
31259
19792
16856
19217
13528
20292
17368
14744
7213
7587
5921
14956
30587
20221
30037
10535
18078
11340
18867
14648
8512
5867
12116
Source: Clarkson Research Services - December 2012

2.24 These difficult economic conditions have been prevailing since 2008 with
small windows of relief. Most Indian shipping companies that have been able to
better manage their businesses have been those with a diversified presence across
shipping segments or businesses and participation in domestic trade. While the
bulkers and tankers segments have seen a downturn, the offshore segment with jack
ups and sub-sea vessels has ensured cash visibility for companies.
2.25 Further, the incidence of piracy has been of great concern to the government.
The Government has deployed naval vessels for assistance to merchant vessels in
the piracy-affected areas. The government has also been raising the issue of piracy
and the need for more concerted international action at the meetings of the United
Nations and the International Maritime Organization (IMO). (In 2011, 237 vessels
were attacked, 28 vessels were hijacked and 1,118 crew members were taken
hostage (of which 24 seafarers were killed). As on date, there are a total 37 Indian
seafarers held hostage by the Somalia pirates. Break-up of the 37 hostages is as
follows:
S.No.
Name of the ship
Flag
No of Indian crew Date when

held as hostages hijacked
1
Ex-M.T.AsphaltVenture
Panama
7*
29/9/2010
2
M.V.. Albedo
Malaysia
2**
26/11/2011
3
M..T. Royal Grace
Panama
17
2/3/2012
4
MT Smyrni
Liberian
11
10/5/2012
Total
37
(* these 7 Indians continue to be under the captivity even after release of the ship
and the other crew of the ship and the pirates are reported to be demanding the
release of 120 Somali pirates who were apprehended by Indian Navy and are
presently under going trial in Mumbai, as a pre condition for their release )
(** One of the two Indian hostages is reported to have passed away due to cholera)
2.26 While Indias overseas seaborne trade has been growing substantially over
the years from 224.62 million tonnes in 1999-2000 to 570 million tonnes in 2010-11,
it has slightly dipped to 560.13 million tonnes in 2011-12. Over the years there has
been a sharp decline in the share of Indian ships in the carriage of Indias overseas
trade. From about 40% in the late 1980s, it has declined to 7.95% in 2010-11 with
13.89 per cent share in Indias oil imports in 2010-11. Given the relatively low
participation of Indian ships in Indias trade and given the fact that Indian ships are
ageing, with the average age of the Indian fleet increasing from 15 years in 1999 to
17.03 years as on 30-11-2012, there is an urgent need to increase the shipping fleet
so that it is at least large enough to meet Indias trade volumes. Higher asset size of
Indian shipping will not only lead to higher growth of the economy but also higher
employment and high foreign exchange earnings/savings. The estimated freight bill
of India in 2011-12, based on 7.5% of the value of seaborne trade, totalled US$ 57
billion and estimates show that a 5% increase in tonnage could lead to a US$ 6.3
billion saving/earning of foreign exchange. Strengthening Indian fleet with cheaper,
adequate and easier access to finance is important given the fact that ship prices
which had peaked in the middle of 2007-8 have dropped to historical lows in the
subsequent years. The fall in prices has continued till December 2012. Rationalizing
11
multiple levies in the shipping sector in terms of direct and indirect taxes would also
help.
Share of merchant fleets by flags of registration as on January 1, 2012
Rank
Flag of Registration
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Panama
Liberia
Marshall Islands
China, Hong Kong SAR
Singapore
Greece
Malta
Bahamas
China
Cyprus
Japan
Isle of Man
Italy
Republic of Korea
United Kingdom
Norway (NIS)
Germany
India
DWT
(in '000)
328210
189911
122857
116806
82084
72558
71287
69105
58195
32986
23572
22542
21763
19157
18664
17896
17482
16141
Share
(%)
21.39
12.38
8.01
7.61
5.35
4.73
4.65
4.50
3.79
2.15
1.54
1.47
1.42
1.25
1.22
1.17
1.14
1.05
Source: UNCTAD, Review of Maritime Transport 2012

2.27 Indian shipping companies faced problems of restricted cash inflows in FY
2011-12 due to very low charter hire and freight rates in all segments of shipping.
These difficult economic conditions have been prevailing since 2008 with small
windows of relief in FY 2011-12.
2.28 Most Indian shipping companies who have been able to better manage their
businesses have been the ones with a diversified presence across shipping
segments or businesses. While tankers and bulkers and tankers segments have
seen a downturn, the offshore segment with jack ups and sub-sea vessels has
ensured cash visibility for companies.
2.29 Another characteristic that has assisted Indian shipping companies has been
the fact that they have not excessively acquired new ships in this phase of low
shipping cycle. Even in a scenario of cheap assets, most Indian companies have
judiciously resorted to buying second hand ships.
2.30 Shipping plays an important role in the economic development of the country,
especially in Indias international trade. The Indian shipping industry also plays an
important role in the energy security of the country, as energy resources, such as
coal, crude oil, and natural gas are mainly transported by ship. Further, during crisis
situations, Indian shipping contributes to the uninterrupted supply of essentials, and
can serve as second line of defence. Approximately, 95 per cent of the countrys
trade by volume, and 68 per cent in terms of value, is being transported by sea.
12
2.31 Though India has one of the largest merchant shipping fleets among the
developing countries, it retained its eighteenth rank in the world in terms of dead
weight tonnage (DWT) as on 01 January 2011. Leaving the flags of convenience
countries, Indias share in world DWT is low at 1.05 per cent, while Chinas is around
three times higher than Indias.
2.32 Indian shipping tonnage (capacity) was practically stagnant at around 7 million
gross tonnage (GT) till the beginning of 2004-05. However, the tonnage tax regime
introduced by the Government of India in that year boosted the growth of the Indian
fleet as well as its tonnage. The Indian fleet presently stands at 10.45 million GT and
1158 ships (as on 01 January 2013), with the Shipping Corporation of India, a publicsector undertaking, having a major share of 36.17 per cent in Indias shipping
tonnage. Of this, 9.37 million GT with 356 ships cater to Indias overseas trade and
the rest to coastal trade. The gross foreign exchange earnings/savings of Indian
ships in FY 2011-12 was Rs10666.45crore.
2.33 In order to provide the Indian shipping industry a partial level playing field, and
make it competitive at international level, the government implemented certain
policies as mentioned below:
Government has introduced tonnage tax regime for Shipping Sector in 2004 by
which taxation for Indian Shipping companies has been brought in line with
international fiscal regime. Further, Indian Shipping industry has been provided
cargo support through right-of first refusal & policy of FOB imports for
Government owned/controlled cargoes. Chartering of vessels for movement of
cargo on private account is regulated through the Director General of Shipping
taking into consideration the availability of Indian flag vessels.
13
CHAPTER - III
PORTS
INTRODUCTION
3.1
Ports provide an interface between the ocean transport and land-based
transport. There are 12 Major Ports in India out of which 6 are located in the East
Coast and 6 in the West Coast.
MAJOR PORTS IN INDIA
Kolkata Port
3.2
Kolkata Port is the only riverine major port in India having an existence of
about 138 years. It has a vast hinterland comprising the entire Eastern India
including West Bengal, Bihar, Jharkhand, UP, MP, Assam, North East Hill States
and the two landlocked neighbouring countries namely, Nepal and Bhutan. The port
has twin dock systems viz. Kolkata Dock System (KDS) on the eastern bank and
Haldia Dock Complex (HDC) on the western bank of river Hooghly.
Major Initiatives and Achievements.
Kolkata Port handled 43.248 million tonnes of traffic in 2011-2012. KDS

handled a traffic of 12.233 million tonnes in 2011-12 and at HDC, 31.015
million tonnes of traffic was handled in 2011-12.
During the last eight-year period, from 2000-01 to 2008-09, Kolkata Port
increased its cargo volume by 24.22 million tonnes (80.73%). However, traffic
decreased since 2009-10 owing to decrease in POL Crude, consequent on
commissioning of Paradip Haldia Crude pipeline and also due to decline in
Iron Ore, Coking Coal, etc., due to draft restriction.
At Kolkata Port, Container traffic increased to 5,52,241 Twenty Foot
Equivalent Unit (TEUs) in 2011-12 from 5,26,474 TEUs in 2010-11 i.e. a
growth of 5%. Container traffic at Kolkata Port crossed the 5.5 lakh TEU mark
during 2011-12. At KDS, 4,12,425 TEUs were handled during 2011-12 as
against 3,77,135 TEUs in 2010-11, registering a growth of 9.36%, which was
the highest among Indian Major Ports.
KoPT ranked third amongst Indian Major Ports in terms of Container handling
in 2011-12.
Number of vessels handled at Kolkata Port during the last nine years was the
highest amongst all Indian Major Ports. KoPT handled around 16-17% of the
total number of vessels, which worked at Indian Major Ports. During the year
2011-12, 3183 vessels called at KoPT.
During 2011-12, the port excelled in all efficiency parameters as compared to
previous year, such as, reduction in Turn-Round Time (TRT) of ships,
reduction of Pre-berthing Detention (PBD) of ships and above all,
improvement in average Ship Berth-day Output etc.
During 2011-12, high growth was registered at KoPT as compared to 2010-11
in respect of LPG, Vegetable Oil, Manganese Ore, Rock phosphate, Thermal
Coal, Petroleum Coke, Machinery, Coal Tar Pitch, Maize, Pulses, Container,
Other General Cargo, Inland Waterway Authority of India (IWAI) Traffic, etc.
14
Paradip Port
3.3
Paradip Port is one of the major ports in India. Pt. Jawaharlal Nehru, Ex-Prime
Minister of India, laid the foundation stone of the Port on 3rd January, 1962 near the
confluence of river Mahanadi on the east coast of Bay of Bengal in the State of
Odisha. Government of India took over the management of the port from the State
Government on 1st June, 1965. The construction of Iron Ore Berth was completed
and INS INVESTIGATOR had the privilege of maiden berthing in the port on the
12th March, 1966. The port was declared open by Mr. Peter Stambolic, the then
Prime Minister of Yugoslavia on the same day. The Government of India declared
Paradip Port Trust as the eighth major port in India on 18th April, 1966 making it the
first major port in the East Coast commissioned in independent India. Paradip Port
is situated 210 nautical miles south of Kolkata and 260 nautical miles north of
Visakhapatnam at Latitude 20 1558.63 N and Longitude 86 40-27.34 E.
The port has handled traffic of 407.49 lakh tonnes during the period (i.e. from
01.04.2012 upto 31.12.2012) as against 405.00 lakh tonnes handled during the
corresponding period of the previous year. A quantity of 247.64 lakh tonnes of rail
borne traffic was handled by the Port railways during the period (i.e. from 01.04.2012
up to 31.12.2012) as against 233.80 lakh tonnes handled during the corresponding
period of the previous year.
New Mangalore Port

3.4 New Mangalore Port was declared as the 9th Major Port on 4th May 1974 and
was formally inaugurated on 11th January 1975. The provisions of Major Port Trusts
Act, 1963 were extended to the New Mangalore Port and a Port Trust Board was
formed w.e.f. 1-4-1980. Over the years, the Port has grown from the level of
handling less than a lakh tonnes of cargo to 33 million tonnes handled during the
year 2011-2012. The major commodities imported through the Port are POL Crude
for MRPL, coal, iron ore fines, LPG, fertilizer, edible oil, limestone, wooden logs,
cement, liquid chemicals, containerized cargo etc. and the major export cargo are
POL products, iron Ore Pellets, granite stone, maize, wheat, containerized cargo
like coffee, cashew kernels, etc.
At present, there are six General Cargo Berths with a draft varying from 9.50 M to
10.50 Mtrs., and a shallow draft berth with a draft of 6.50 Mtrs., one Oil Jetty with a
draft of 10.50 Mtrs., and two Oil Jetties for crude/product of M/s MRPL with a draft of
14.00 Mtrs., one Multi Users Liquid Jetty with a draft of 12.50 Mtrs., one Iron Ore
Berth with a draft of 13.00 Mtrs., and one coal berth with a draft of 14.00 Mtrs. The
total installed capacity of the Port is 50.97 MTPA as per the recent assessment.
Upto December 2012, the Port has handled 270.25 lakh tonnes of cargo.
Cochin Port
3.5
The modern Port of Cochin was developed during the period 1920-1940 due
to the untiring efforts of Sir Robert Bristow. By 1930-31 the Port was formally
opened for vessels up to 30 feet draught. Cochin was given the status of a Major
Port in 1936. The administration of the Port got vested in a Board of Trustees on 29 th
15
February, 1964 under the Major Port Trusts Act, 1963. The port of Cochin is located
on the Willington island at Latitude 958 North and 76 14 East on the South West
coast of India about 930 KM south of Mumbai and 320 KM North of Kanyakumari.
With its strategic location on the South-West Coast of India and at a commanding
position at the cross roads of the East-West Ocean trade, the Port is a natural
gateway to the vast industrial and agricultural produce markets of the South-West
India. The hinterland of the Port includes the whole of Kerala State and parts of
Tamilnadu and Karnataka States. A study carried out on the traffic flow in the
hinterland of the Port indicates that about 97% of the total volume of traffic is
accounted for by Kerala State. The hinterland of Cochin Port has further spread
over to different areas with the growth of containerization in the country and
establishment of Inland Container Depots of different load centres in India. Cochin
with its proximity to the international sea route between Europe and the Far East and
Australia can attract a large number of container lines offering immense business
opportunities. Cochin Port has handled 148.93 lakh tonnes of traffic till 31 December,
2012.
Jawaharlal Nehru Port
3.6
Constructed in the mid 1980's and commissioned on 26th May, 1989,
Jawaharlal Nehru Port has come a long way by becoming a world-class international
container handling port. JN Port is a trendsetter in the matter of port development in
India through new initiatives like private sector participation. It is situated in between
18 56'43" North and 72 56'24" East along the eastern shore of Mumbai harbour off
Elephanta Island. Port handles vessels having draught up to 12.50 meters. JNPT
has maintained a steady growth in traffic and handled 65.73 million tonnes in 201112 as compared to 64.32 million tonnes during the previous year. Upto 31
December, 2012 the port has handled 479.77 lakh tonnes of traffic. The Port has
handled 2929 vessels during the 2011-12 as against 3128 during the year 2010-11.
JNPT has developed about 1100 ha. of green area including Mangroves
Plantation of about 40,000 saplings carried out during the year 2011-12. 3,000 acres
of the Ports own land is proposed to be converted into an SEZ. The JNPT has
awarded the first phase of dredging work for the 34 km channel on assured depth
basis, which is the first of its kind for Capital Dredging in the country. The dredging
project for deepening the channel from 14 mtrs. (Phase-I) to 17 mtrs. is in planning
stage.
The Ministry of Railways has planned for a dedicated freight corridor
connecting JNPT with the northern hinterland. The work is being taken up by M/s
Dedicated Freight Corridor Company Limited.
Mumbai Port Trust

3.7
Mumbai Port is a fully integrated multi-purpose Port handling container, dry
bulk, liquid bulk and break bulk cargo. The Port has extensive wet and dry dock
facilities to meet the normal needs of ships using the port. There are three enclosed
wet docks namely, Princes, Victoria and Indira Docks, having a total area of 46.30
hectares and quayage of 7,776 meters inside the wet basin and 853 meters along
the harbour wall. Oldest of the three was Princes Dock, a semi-tidal dock,
commissioned in 1880. It has 8 berths, each with a designed draft of 6.4 meters.
16
The Victoria Dock, commissioned in 1888, was also a semi-tidal dock. It had 14
berths each with a designed draft of 6.7 meters. The Princes and Victoria Dock
basins are now being filled up and will be used as Container Storage Yard under the
Offshore Container Terminal Project. The same have been decommissioned for
Shipping.
Indira Dock was commissioned in 1914. It has an entrance lock, 228.6 meters
long and 30.5 meters wide, through which vessels can enter or leave the dock at any
state of tide. There are 21 berths inside the basin and 5 berths along the harbour
wall. The designed draft inside the basin is 9.14 meters. The depth of water inside
the basin can be increased by 1.20 meters by impounding water. The designed draft
at the harbour wall berths is around 8.2 meters. To the south of Indira Dock, along
the extended arm, there are two open berths, Ballard Pier and Ballard Pier
Extension, each with 244 meters length and a designed draft of 9.8 meters and 10.2
meters, respectively. Ballard Pier Extension berth also handles passenger vessels
and is equipped with a modern passenger terminal building with allied facilities.
There are 4 berths at Jawahar Dweep, to handle crude and POL tankers and
an offshore berth at Pir Pau to handle liquid chemical and some of the POL traffic.
Fourth berth at Jawahar Dweep which was commissioned in 1984, can handle
tankers with a maximum loaded draft of 12.20 meters and upto 1,25,000
displacement tonnes. Two berths can receive tankers upto 70,000 displacement
tonnes. The New Pir Pau jetty commissioned in December 1996 can handle tankers
of 47,000 DWT with a maximum loaded draft of 11.1 meters. Container Freight
Stations have been set-up at Manganese Ore Depot and Timber Pond. Rail
Container Depot has been developed at Cotton Depot as well as inside the Docks to
facilitate smooth movement of ICD traffic.
The Port capacity as on 31.03.2012 has been fixed by the Ministry of Shipping
as 48.70 million tonnes whereas the traffic target fixed by the Ministry is 61.00 million
tonnes. From April 2012 to November, 2012, Mumbai Port has handled 440.90 lakh
tonnes of cargo and when compared with the target fixed by the Ministry there is an
increase by 0.75%. The Major Cargo commodity handled during April 2012 to
November 2012 has been POL and POL products amounting to 59.56% of the total
traffic, whereas Midstream cargo traffic is 16.18% of total traffic. In the Docks
proper, Iron and Steel is the major cargo handled, with 2.35 million tonnes.
Ennore Port Limited

3.8
Ennore Port Limited (EPL), the 12th major Port under Ministry of Shipping was
commissioned in 2001, primarily as a Coal Port dedicated to handling Thermal Coal
requirements of TNEB. EPL has the distinction of being the only corporate port
amongst the Major Ports administered by the Central Government.
In a radical departure from the prevalent practice of declaring the newly
developed major ports as Major Port Trusts under the Major Port Trusts Act, 1963,
the Govt. of India (GOI) decided to establish the new port of Ennore as a company in
October, 1999 under the Indian Companies Act., 1956 and has come to be known as
Ennore Port Limited (EPL). The major achievements of the port during the year
2012-2013 (upto December 2012) are given below:
17
Cargo throughput stood at 9.22 Million Tonnes as against 7.69 million tonnes
during the corresponding period in the previous year.
Average turnaround time of vessels on Port account is 0.089 days.
Average pre-berthing detention on Port account is 0.039 Hrs.
256 vessels were handled by the Port as against 204 vessels in the
corresponding period of previous year.
The First LPG carrier vessel LPG/C Maharshi Bhardwaj was berthed in July
2012 at MLT berth and around 28,000 MT of Butane & Propane were
discharged for M/s Indian Oil Petronas Pvt. Ltd.
2,00,000th car was loaded on the PCC Eridanus Leader in August, 2012.
100th car carrier of PCC Tianjin Highway was berthed in August 2012 at
General Cargo Berth and 974 cars were exported.
Dedication of LPG Import & Export facilities and additional Terminal for
Petroleum and Chemical storage facilities at the existing Maritime Liquid
Terminal on October, 2012.
The traffic handled till December is 122.12 lakh tonnes.
Chennai Port
3.9
Chennai Port is an all weather artificial harbour with one Outer Harbour and
one Inner Harbour with a wet Dock and a Boat Basin with round the clock navigation
facilities. The Port was established in 1875 located at 13 0 06 N latitude and 800 18
E- longitudes on the Bay of Bengal.
Chennai Port is in the fifth position in cargo traffic among the Major Ports of
India. The Port handled a Cargo tonnage of 55.71 million tonnes during 2011-12 as
against the Ministrys target of 65.50 million tonnes and 61.46 million tonnes handled
during the previous year. During the current year, tonnage handled upto December
2012 is 398.96 lakh tonnes.
In cruise tourism, Chennai Port has taken a leading edge by taking following
measures.
Chennai Port has Cruise Cum Passenger Terminal measuring approximately

3200 sqmtrs at West Quay IV in Ambedkar Dock.
On arrival berthing is accorded for berthing of Cruise Vessels with 24x7
navigational facilities and the Terminal has facilities to handle all types of
Cruise Vessels up to 12 mtrs draught.
Separate lounges for domestic / overseas tourists, VIP lounge fully air
conditioned with facilities for differently abled persons.
Facilities for Baggage scanning and 2 duty free shops have been provided.
In order to promote cruise tourism Chennai Port Trust has extended to offer
concession for period of 1 year from 20.01.12 at a flat rate of 20% on Vessel
Related Charges (Port Dues, Berth Hire Charges & Pilotage) to the Cruise
vessels.
Mormugao Port
3.10 Mormugao Port, situated on the west coast of India, is more than a century
old port. It has modern infrastructure capable of handling a wide variety of cargo. It
is a natural harbour protected by a breakwater and also by a mole. Mormugao Port
18
was declared as a Major Port on December 2, 1963. The Port has excellent
infrastructure and a conducive work culture. A deep draft channel with 14.4. mtrs.
depth permits large vessels to enter the harbour. Existing railway and road
connectivity provides seamless transportation to the rest of the country. A modern
computer based Vessel Traffic Management System provides reliable marine
services. The USP of Mormugao Port is its fully Mechanized Ore Handling Plant
(MOHP). Unlike most of the other ports, iron ore comes down the rivers Mandovi and
Zuari in barges. These barges are unloaded by the barge unloaders. The ore is
stacked in the plots, reclaimed and loaded on to ships at berth no. 9. The annual
capacity of MOHP is 11.5 million tonnes. Berth No. 9 can handle ships of sizes
varying from 30,000 to 275,000 DWT with a maximum LOA of 335 metres. While
panama vessels can be fully loaded at the berth, bigger size vessels are loaded to
the permissible draft of 14.00 m. in conjunction with tide and then topped up by
privately owned transhippers in stream. There are 3 nos. of such transhippers each
having an average loading capacity of about 15000 tpd. Six mooring dolphins
capable of accommodating panama size vessels are also available for handling ore
and other bulk cargo using ships own gears. Mormugao Port has facilities for
handling dry bulk, break bulk cargo and containers at berth nos. 10 & 11. Special
facilities for handling petroleum products and other liquid cargo like phosphoric acid,
caustic soda, ammonia, molasses, etc., are available at berth no. 8. Berth 5 & 6 built
under BOOT with an annual capacity of 5.00 million tonnes which commenced
operation in June, 2004 are also available for handling cargoes like Coal/Coke, HR
coils, limestone & Steel Slabs, etc.
Mormugao Port has about 41,562 sq. mtrs. of covered storage space and about 3.25
lakh sq. mtrs. of open storage area. 44 tanks owned by different agencies are
available for storing liquid cargo. The port also has a dry dock and a wet repair
berth. The traffic handled by the port till 31 December 2012 is 149.18 lakh tonnes.
V.O. Chidambaranar Port (Earlier Tuticorin Port)
3.11 V.O.Chidambaranar Port is located strategically close to the East-West
International sea routes on the South Eastern coast of India at latitude 8o 45'N and
longitude 78o 13'E. Located in the Gulf of Mannar, with Sri Lanka on the South East
and the large land mass of India on the West.In 1842, a Light House was
constructed in Tuticorin. Construction of a Light House is one of the important
milestone for development of Tuticoirn Harbour. The proposal to construct a deep
sea harbor at Tuticorin was first thought of in 1914, though it was not pursued due to
the outbreak of war. In 1924, Tuticorin Port Trust Act was passed by the Madras
Legislature. In 1956, Tuticorin Port development Council was constituted consisting
of local leaders, business people as members. In 1964, the then Prime Minister Lal
Bahadur Shstri inaugurated the construction work of the Port and the developmental
work started after installation of Oil Mooring in 1974.
The major achievements of the Port during the current year are as follows:
On 06.07.2012, 22,011 MT of Lime Stone was unloaded in the vessels MV.
IKAN SAGAI surpassing the previous record of 21,320 MT uploaded on
22.11.2011 in the vessel MV. IKAN SERONG which is the highest quantity of
Lime Stone unloaded in a single day in this Port.
On 26.08.2012, 8,127 tonnes of Raw Sugar was loaded in the vessel MV. DD
VIGILANT surpassing the previous record of 7,760 MT loaded on 08.08.2008
19
in the vessel MV. IKAN MANZANILLO which is the highest quantity of Raw
Sugar loaded in a single day in this Port.
On 08.09.2012, 26,257 Metric Tonnes of Rock Phosphate was unloaded in
the vessel MV. ANEMOS surpassing the previous record of 24,100 Metric
Tonnes unloaded on 01.10.2003 in the vessel MV. DARYAGYAN which is the
highest quantity of Rock Phosphate unloaded in a single day in this Port so
far.
On 14.10.2012, 8,859 Metric Tonnes of Pine Wood was unloaded in the
vessel MV. GLORIOUS SENTOSA surpassing the previous record of 8,437
Metric Tonnes unloaded on 15.01.2012 in the vessel MV. URAWEE NAREE
which is the highest quantity of Pine Wood unloaded in a single day in this
Port so far.
Kandla Port Trust

3.12 Kandla Port was established in the year 1950 as a Central Government
Project and Union Government took over Kandla for its development as a Major Port.
The need of developing Kandla as a Major Port arose due to the loss of Karachi Port
to Pakistan after independence and in order to ease congestion in the Bombay and
Calcutta Ports, thereby, reducing the inconvenience and the cost to the EXIM Trade.
Kandla Port was declared as a Major Port on 8.4.1955 by dedication of the
first oil berth to the service of the Nation. Kandla Port was constituted as a Major
Port under the Major Port Trusts Act on 29.2.1964. The Port grew gradually in terms
of EXIM Trade and infrastructure development. Kandla Port has 12 Cargo berths and
6 Oil Jetties and 3 (SBMs) and 2 Product Jetties at Vadinar. The Cargo berths are
equipped with cargo handling gears like Wharf Cranes and Mobile Harbour Cranes
of various capacities, and the oil jetties are connected to storage installations with
pipelines.
The Port handled 825.01 lakh tonnes of cargo during 2011-12 as compared to
818.80 lakh tonnes of cargo handled in 2010-11. The increase of traffic was 6.21
lakh tonnes or by 1%. This traffic includes 601.03 lakh tonnes of imports, 220.89 lakh
tonnes of exports and 3.09 lakh tonnes of transhipment cargo. The value of traffic
passed through the Port aggregated to Rs. 487300.14 crores during the year 201112. During 2011-12, 2714 vessels were handled at the Port as against 2692 vessels
in 2010-11. During the year 2012-13, i.e. from April to December, 2012, 694.97 lakh
tonnes Cargo was handled in Port.
Visakhapatnam Port
3.13 Port of Visakhapatnam, a natural harbour, was opened to commercial
shipping on 7th October, 1933. During its 76 years of service, the Port established
many landmarks, consistently upgrading its infrastructure in tune with changing
technological trends in the Shipping industry. The Visakhapatnam Port is the only
Indian Port possessing three International accreditations viz., ISO 14001; 2004
(EMS)/OHSAS 18001 and ISO 90001:2000 (QMS). The Port has mechanized
handling facilities for iron ore, iron pellets, alumina, fertilizer raw material, crude oil &
POL products, liquid ammonia, Phosphoric acid, edible oil, caustic soda and other
liquid cargoes. Visakhapatnam Port handled a quantity of 67.42 million tonnes of
20
cargo throughput during the financial year 2011-12 as against the target of 67 million
tonnes fixed by the Ministry. However, traffic declined marginally by 6021 lakh
tonnes (1%) when compared to 68.04 million tonnes handled during previous year
i.e. 2010-11. VPT bagged Major Port of the year award at the Exim Indias 4 th
South East CEO conclave & Award 2012 at Chennai (13.07.2012).
The following are the achievements during 2012-2013 (upto December, 2012)
Highest discharge of Iron Ore Pellets in Bulk in a day 26.480 tonnes on
26.04.2012.
Highest discharge of Manganese Ore in Bulk in a day 21.56 tonnes on
06.05.2012.
Highest discharge of Dolomite in Bulk in a day 20.081 tonnes on 11.06.2012.
Highest discharge of Iron Ore Fines in Bulk in a day 34.119 tonnes on
06.07.2012
Highest loading of Steel Mill Scale 18,500 tonnes on 09.05.2012.
Highest discharge of 9500 tonnes of Chormite or in bulk with HMC hook
output of 4750 tonnes of 15.09.2012.on 06.05.2012.
Performance of Major Ports
3.14
Traffic handled at Major Ports:

(In million tonnes)
S.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
Port
Kolkata
Haldia
Paradip
Visakhapatnam
Chennai
V.O. Chidambaranar
Cochin
New Mangalore
Mormugao
Jawaharlal Nehru
Mumbai
Kandla
Ennore
Total
Actual 2011
(April-Dec.)
8.36
22.05
36.37
47.9
37.85
18.11
13.23
20.95
23.86
43.63
35.83
53.73
8.98
370.85
Actual 2012
(April-Dec.)
8.66
20.198
40.749
44.201
39.896
20.951
14.893
27.025
14.918
47.977
44.09
69.497
12.212
405.28
3.15 Cargo Handled at Major Ports

S. No.
1
2
3
4
5
6
Commodity
Actual 2012-13
(April-December)
137.92
21.78
12.42
62.85
89.23
81.08
405.28
POL
Iron Ore
Fert. & Raw Materials
Coal
Containerised Cargo
Other Cargo
Total
21
(In Million tonnes)

Actual 2011-12
176.10
60.40
20.39
78.79
120.10
101.36
560.14
Selected Port Performance Indicators

3.16
The details of major performance indicators of the Ports are given below:
(i)
Average Pre-Berthing detention and Average Turn Round time:
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
(ii)
Port
Kolkata
Haldia
Paradip
Visakhapatnam
Chennai
V.O.Chidambaranar
Cochin
New Mangalore
Mormugao
Jawaharlal Nehru
Mumbai
Kandla
Ennore
Average Pre-Berthing
Detention on Port
Account (Hours)
Average Turn round

Time (Days)
2012
2011
(April to January)
0.03
0.79
19.83
14.42
0.85
1.15
1.44
2.42
0.88
0.94
9.36
19.20
1.54
4.28
0.96
0.96
20.28
13.98
9.12
8.88
8.89
8.10
53.28
49.20
0.046
0.008
2012 2011
(April to January)
2.84
3.09
2.99
2.61
2.55
2.72
2.33
2.36
1.96
2.22
3.45
3.81
1.35
1.55
1.97
1.49
2.82
2.47
1.59
1.51
2.96
2.97
4.58
4.25
0.09
0.08
Average Output per Ship Berth Day:

S. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
Port
Kolkata
Haldia
Paradip
Visakhapatnam
Chennai
V.O.Chidambaranar
Cochin
New Mangalore
Mormugao
Jawaharlal Nehru
Mumbai
Kandla
Ennore
Total
(In Million Tonnes)

Average Output Per Ship Berth Day
2012
2011
(April to January,
(April to January,
2013)
2012)
2956
2783
6063
6665
16143
15693
10551
10589
12231
10666
7342
6440
16179
15809
15640
13649
13284
16136
26396
25919
8830
7546
14953
13810
23955
27462
174523
173167
22
Major Developments in Ports

3.17
Capacity at Major Ports

S. No.
1
2
3
4
5
6
7
8
9
10
11
Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
(In Million tonnes)

Port capacity
Traffic Handled
343.95
287.58
362.75
313.55
389.50
344.80
397.50
383.75
456.20
423.41
504.75
463.78
532.07
519.31
574.77
530.53
616.73
561.09
670.13
570.03
689.83
560.14
Other Port Related Organizations

3.18 Besides these Major Ports, there are some organisations under the Ministry
which are entrusted with port-related matters.
(i)
Tariff Authority for Major Ports
The Tariff Authority for Major Ports was created in 1997 by an amendment to
the Major Port Trusts Act, 1963 and was constituted by the Government of India
through a Gazette Notification on 10/04/1997. The regulatory jurisdiction of the
authority extends to all major port trusts and private terminals operating therein. The
Authority is statutorily empowered to fix rates for services rendered by port trusts and
private terminals as well as charges for use of port properties. It is mandatory not
only to notify the rates but also the conditionalities governing application of the rates.
The Authority consists of a Chairman who is of the rank of the Secretary to the
Government of India, one Member from amongst economists and one Member with
experience in Finance. Smt. Rani Jadhav has been functioning as Chairman, TAMP
since 01.10.2009. Shri T S Balasubramanian was appointed as Member (Finance),
TAMP w.e.f. 05.03.2012 and Shri C.B. Singh, Adviser, Ministry of Shipping has been
given additional charge as Member (Economics). The Headquarters of Tariff
Authority for Major Ports is located at Mumbai. At present, the sanctioned strength of
officers and staff of this Authority is 36.
(ii)
Andaman Lakshadweep Harbour Works (ALHW)
Andaman Lakshadweep Harbour Works (ALHW) a subordinate office under

Ministry of Shipping was established during 1965 for the service of A& N islands and
Lakshadweep Islands. The ALHW is entrusted with the responsibilities of formulating
and implementing the programme of Ministry of Shipping for providing Port and
Harbour facilities in Andaman & Nicobar and Lakshadweep Islands. Since its
inception, ALHW has been implementing Port development schemes from the funds
provided by Ministry of Shipping under Central Sector Plan schemes starting from
the Third Five Year Plan onwards. Apart from the creation of Port infrastructures,
ALHW is also entrusted with maintenance of Port structures & Cargo Handling
23
equipments under the funds provided by Andaman & Nicobar and Lakshadweep
Administration.
Details of the activities undertaken by ALHW upto February, 2013 are as under:
(iii)
Sheltered harbours with breakwater at Rangat in Middle Andaman, Hut Bay in

Little Andaman, Campbell Bay in Great Nicobar Islands, Mus in Car Nicobar
Island in A&N Island.
Wharves for Mainland ships at Haddo berth No. 1 to 4, Chatham, Hope Town,
Mayabunder & Campbell bay (in A&N Islands), Androth, Kalpeni, Minicoy &
Agathi in Lakshadweep Island i.e. 09 Nos of wharves in A&N Island and 04
Nos in Lakshadweep Islands.
Jetties for Inter island ships at Rangat, Diglipur, Havelock, Little Andaman,
Mus, Kamorta, Campbell Bay & Port Blair (in A & N Island) (i.e. 14 nos in A&N
Island)
39 Nos. of Ferry Jetties/Vehicle Ferry jetties have been constructed in A&N
Islands and similarly in Lakshadweep Islands, 15 Nos. of jetties have been
constructed to cater to low draught vessels.
Ship repair facilities such as Dry Dock in Port Blair, Slipways at Port Blair,
Mayabunder and Little Andaman.
Dredging Corporation of India
Dredging Corporation of India Ltd. (DCIL) was formed in 1976 to provide

Integrated dredging and related marine services for promoting the country's
national and international maritime trade, beach nourishment, reclamation, inland
dredging, environmental protection and ultimately to become a global player, in the
field of dredging.
Located strategically on the eastern seaboard of India at Visakhapatnam, DCI helps
ensure continuous availability of the desired depths in the shipping channels of the
major and minor ports, Navy, fishing harbours and other maritime organizations. It
further serves the nation in a variety of ways, be it capital dredging for creation of
new harbours, deepening of existing harbours or maintenance dredging for the
upkeep of the required depths at various ports along the 5,700 kms. long coastline of
India.
(iv)
Kolkata Dock Labour Board
Kolkata Dock Labour Board (KDLB) was constituted under Section 5A of the
Dock Workers Regulation of Employment) Act, 1948 and is functioning as an
Autonomous body under the Ministry of Shipping. The Board administers two
Government of India Schemes for regulation of employment of dock workers
engaged in Kolkata Dock System for handling of cargo on the vessel. During the
2011-12, KDLB handled 472.24 tons per hook per shift. A total no. of 23122 man
shift employment was generated during the said period. During 2012-13 (upto
August, 2012) KDLB handled 24.77 lakh tons of cargo. During the last three years
including 2012-13 (upto December, 2012), there has been no loss of man days.
There has also been no report of any accident of registered dock workers since
2009-10. During 2011-12 (31.03.2012) there were 127 employees and 88 cargo
handling workers (total 215). As on 12.11.2012, strength of employees and workers
24
is 103 and 86 (total 189) respectively. Number of pensioners as on 31.10.2012 is

6856.
(v)
Sethusamudram Corporation Limited
Sethusamudram Ship Channel Project, which is being implemented through

the Special Purpose Vehicle namely, Sethusamudram Corporation Limited,
envisages dredging of a ship channel in the shallow portion of sea to connect the
Gulf of Mannar and Bay of Bengal through Palk bay to enable the ships moving
between east and west coasts of India to have a continuous navigable sea route
around the peninsula within Indias territorial waters.
Dredging work of the Sethusamudram Ship Channel was awarded to M/s
Dredging Corporation of India, a Government of India Enterprise on nomination
basis. The project was inaugurated by the Honble Prime Minister of India on
02.07.2005. Subsequently based on PILs filed in the Supreme Court, the dredging
work in Adams bridge was stopped on 17.09.2007. At present the project work is in
abeyance in view of the litigation in the Supreme Court of India.
25
CHAPTER IV
SHIPPING
4.1:
Introduction:
Shipping industry is one of the most globalised industries operating in a highly

competitive business environment that is far more liberalized than most of the other
industries and is, thus, intricately linked to the world economy and trade. Indian
shipping tonnage, which was only 1.92 lakhs Gross Tonnage (GT) on the eve of
Independence, now stands at 10.45 million GT with 1158 ships as on 31th January,
2013. India has been a founder member of the International Maritime Organization
(IMO), a specialized agency set up under the United Nations primarily dealing with
the technical aspects of shipping relating to Maritime Safety, Protection of Marine
Environment, Standards of Training and related legal matters. India has been
participating in various meetings of the IMO Committees, sub-Committees, Council
and Assembly and has actively contributed towards the development of various
Conventions, Protocols, Codes and Guidelines developed by the IMO.
4.2 NATIONAL SHIPPING BOARD

The National Shipping Board is a permanent Statutory Body established in
1959 under Section 4 of the Merchant Shipping Act, 1958 to advise the Government
of India on matters related to Shipping including development thereof. In terms of
the aforesaid provision, the Board is re-constituted after every two years.
The Board comprises 6 Members of Parliament (4 from Lok Sabha and 2 from
Rajya Sabha), 5 representatives of Central Government, 3 representatives each of
shipowners and seamen and 5 representatives of other interests including its
Chairman.
The Board has been reconstituted for a period of 2 years from 01 st
September, 2012. National Shipping Board has had three meetings during the period
from 01.01.2012 to 31.12.2012 in which following important issues were deliberated:
(i)
Preparedness of Ports for Tier 1 Oil Pollution.
ii)
Marine Insurance.
iii)
Customer-based Concessional Tariff System.
iv)
Smooth-Sailing in marine education.
v)
Indian Maritime Service.
vi)
Service Tax on coastal vessels/High Port dues.
vii)
Deployment of CISF at existing and New Ports.
viii)
Strengthening of Port entry rules to ensure that all vessels in
port are in possession of valid P&I Insurance certificate.
ix)
Deployment of CISF in existing and new ports.
x)
Income Tax Exemption for Indian Seafarers.
xi)
Setting up of IMS Board contour.
xii)
Major Ports Vs Minor Ports.
xiii)
Deployment of armed guards on Indian ships.
xiv) Upgradation of navigation aids and associated safety & security
issues of MbPT.
26
4.3
DIRECTORATE GENERAL OF SHIPPING, MUMBAI
The Directorate General of Shipping (DGS), an attached office of the Ministry

of Shipping, Government of India was established in 1949 for administering the
Indian Merchant Shipping Act, 1958 on all matters relating to shipping policy and
legislation, implementation of various International Conventions relating to safety,
prevention of pollution and other mandatory regulations of the International Maritime
Organizations, promotion of maritime education and training, examination &
certification, supervision of other subordinate offices for their effective functioning
etc. The Director General of Shipping enjoys statutory recognition under section 7 of
the Merchant Shipping Act, 1958.
The Director General of Shipping is assisted on the administrative side by
Joint Director General of Shipping, Deputy Directors General of Shipping (nontechnical); on the technical side by the Nautical Adviser-cum-Additional Director
General (Technical), Principal Officers-cum-Joint Director General (Technical); on
the Engineering side by the Chief Surveyor-cum-Additional Director General
(Technical); Principal Officers-cum-Joint Director General (Technical) and on the
Naval Architecture side, by the Chief Ship Surveyor-cum-Joint Director General
(Technical)/ Deputy Chief Ship Surveyors-cum-Senior Deputy Director General
(Technical). The Heads of allied offices supported by their subordinate officers also
assist the Director General of Shipping in the overall discharge of various statutory
functions. The Nautical Adviser and Chief Surveyor are also Chief Examiners of
Master/Mates and Engineers respectively.
4.4 Functions of offices under the administrative control of the Directorate

General of Shipping. (Mercantile Marine Department, Mumbai/Kolkata/Chennai/
Kochi/Kandla)
The Mercantile Marine Departments (MMDs) were set up in 1929 with
Headquarters at Mumbai, Kolkata and Chennai followed by Kochi and Kandla in
2005 to implement the Safety of Life At Sea (SOLAS) Conventions and Load Line
Conventions. These Departments were directly under the Ministry till the
establishment of the Directorate General of Shipping at Mumbai in 1949. The main
objectives of MMDs are to administer the various Merchant Shipping laws and rules
relating to safety of ships and life at sea, registration of ships, tonnage
measurement, crew accommodation, survey for load line, safety construction,
prevention of pollution, enquiries into shipping casualty and wrecks, surveys of
passenger ships, radio equipments on board, inspection and approval of statutory
equipment for life saving and fire fighting appliances, wireless telegraphy, global
maritime distress and safety systems, navigational aids, pollution prevention
equipments, supervision of repairs and construction of ship on behalf of State and
Central Government organizations, Port State Control inspection, examination and
certification of various grades of certificates of competency as per relevant
examination rules under Merchant Shipping Act, 1958 etc.
27
The Principal Officers and the Surveyors-in-Charge have been notified to be

the Registrar of Indian ships and fishing vessels under section 24 and 435 (e) of the
Merchant Shipping Act, 1958 respectively. Under section 22 of the M.S. Act, every
Indian vessel exceeding 15 tons net, going out to sea, is required to be registered
under Part V of the Merchant Shipping Act, 1958.
Keeping pace with the stupendous growth of the industry, the Maritime
administration has initiated various user friendly regulatory measures for the all
round development of the sector.
The additional responsibilities imposed from time to time in the form of new
statutes like MMTG Act, Admiralty Act, RP&S Rules and so on and also various
International Conventions, received adequate attention of the Directorate and MMDs
During the year, the surveys and inspections relating to safety of ships have been
delegated to the Indian Register of Shipping (IRS) with selective supervisory role for
the DGS on important surveys.
4.5 Shipping Offices, Mumbai / Kolkata / Chennai:
The main functions of the Government Shipping Offices established under
Section 11 of the Merchant Shipping Act, 1958 are:
(i)
(ii)
(iii)
(iv)
(v)
(vi))
4.6
To provide means for securing the presence on-board at proper times

of the seamen who are so engaged.
To facilitate making of apprenticeship to the sea service.
To hear and decide disputes under Section 132 between a Master,
owner or agent of a ship and any of the crew of the ship.
To transmit the complaint of any dispute of a foreign seaman of a
vessel, registered in a country other than India.
Issue of Continuous Discharge Certificate-cum-Seafarers Identity
Document (CDC).
Enquiry into cause of death on board Indian ships collection of levy
fees from the shipping companies in respect of seamen engaged and
transfer of such amount to the Seamens Welfare Fund Society
(SWFS).
Seamens Employment Office Mumbai/ Kolkata/ Chennai.
The Seamen's Employment Office, Kolkata/Mumbai/Chennai established

under section 12 of the Merchant Shipping Act 1958, continued to function in
accordance with the provisions contained in Section 95 to 98 of the M.S. Act and as
guided by the instructions and orders issued by the Directorate from time to time. In
terms of the amended section 95 of the M.S. Act, 1958 the businesses of the
Seamen Employment Offices include:(i)
Issuance of license, regulating and controlling the recruitment and

placement service providers.
28
4.7
(ii)
Ensuring that no fees or other charges for recruitment or placement of

seafarers are borne directly or indirectly or in whole or in part, by the
seafarers.
(iii)
Ensuring that adequate machinery and procedure exist for the

investigation, if necessary, of complaints concerning the activities of
recruitment and placement service providers.
(iv)
Maintaining registers of seamen in respect of the categories of

seamen.
Seamen's Welfare Office, Chennai
This office undertakes the liaison work between the Indian seamen and the
officials of the country they visit and render all assistance to the seamen in case of
distress and also provides recreational facilities etc. to them.
4.8
Regional Office (Sails) Mumbai/ Jamnagar/ Tuticorin:
The Regional Offices (Sails) at Mumbai, Jamnagar and Tuticorin assist the
sailing vessel owners for standardization of trade by securing cargo and elimination
of malpractices, registration of sailing vessels, issuance / renewal of identity cards
and issues Tindals permit to the Tindal of sailing vessels, repatriation of standard
seamen due to sailing vessels casualties, etc.
4.9
MARITIME TRAINING IN INDIA:
India has a long maritime tradition. She is the 20th largest maritime country in
the world. The single largest contributing factor to this glorious tradition is the
presence of a strong, dedicated, efficient and reliable reservoir of officers and ratings
of Merchant Navy in India. The safety and efficiency of ships are crucially dependent
upon professional ability and dedication of well trained seafarers. Great importance
has always been attached to the maintenance of high quality training imparted to
maritime personnel in India, which has facilitated India emerging as a major
manpower supply nation to the world-wide shipping. The ever increasing demand of
the Indian seafarers world-wide is a testament to the quality of education and training
received in India.
To meet the requirement of trained manpower in the merchant navy, the
Directorate General of Shipping through various maritime training institutes both in
public and private sector, imparts pre-sea and post sea training in engineering and
nautical disciplines.
There are 139 Training Institutes at present. The summary of the capacity of
the various pre-sea training institutes is given as under:-
29
(a) Annual intake of Pre-sea Courses:

TOTAL NO. OF MARITIME TRAINING INSTITUTES : 139
No. of Pre Sea Institutes: 86
No. of Post Sea Institutes : 53
Pre-sea Training
Pre-sea training for Nautical discipline
Pre-sea training for Engineering discipline
Pre-sea training for polyvalent discipline
Pre-sea training for GP Rating
Certification course in Maritime Catering
Orientation Course in Maritime Catering
B.Sc. (Maritime Hospitality Catering)
Near Coastal Vessels (NCV) Deck
Total
(b)
Number of
training institutes
43
40
1
35
12
2
2
1
Total approved
annual capacity
5145
4298
31
4792
1076
160
80
40
15928
REGION WISE ANNUAL INTAKE OF PRE SEA COURSES:
REGION
No of Pre
sea
Institutes
Eastern
Region
11
Western
Region
28
South
West
Region
Southern
Region
Name of the Course
Approved
intake
Pre Sea training for Nautical Discipline

Pre Sea training for Engineering Discipline
Pre sea training for GP Rating
Certificate Course in Maritime Catering
TOTAL
390
570
520
160
1640
2299

Pre-sea training for Polyvalent discipline
Orientation Course for Maritime Catering
1400
31
1760
756
80
B.Sc.(Maritime Hospitality Studies)

NCV (Deck)
Pre-Sea for Electro Technical Officers
TOTAL
40
40
240
6646
200
35

Orientation Course for Maritime Catering
TOTAL
380
140
80
80
880
1816

1848
1940
30
Northern
Region
TOTAL

BSc (Maritime Hospitality Studies)
Pre-Sea Course for Electro Technical Officers
TOTAL
80
40
120
5844
440
86

TOTAL
GRAND TOTAL
100
432
00
972
15982
TOTAL NO. OF MARITIME TRAINING INSTITUTES : 139

No of Pre Sea Institutes : 86
No of Post Sea Institutes : 53
(c)
The summary of various Post sea courses is given as under:

REGION-WISE
No. of Institutes
07
31
02
05
08
53
Eastern Region
Western Region
South West Region
Southern Region
Northern Region
TOTAL
4.10
(A)
WELFARE ORGANISATIONS
Seamens Provident Fund Organization, Mumbai.
Brief Background: - The Seamens Provident Fund Scheme, the first social security
scheme for Indian Merchant Navy Seamen, brought under statute by enactment of
the Seamens Provident Fund Act, 1966 (4 of 1966) was introduced retrospectively
with effect from 1st July, 1964, to provide for the institution of a provident fund for
seamen as old age retirement benefit and their family members in the event of death
of seamen members.
General Administration: - The Seamens Provident Fund is vested in and
administered by the Board of Trustees consisting of the Chairman and three
representatives each of the Government, Employers and Employees. The Director
General of Shipping is an ex-officio Chairman of the Board of Trustees and the
Commissioner is the Chief Executive Officer and the Secretary to the Board.
(B) National Welfare Board for Seafarers
(i) As provided under Section 218 of Merchant Shipping Act, 1958 the Government
of India has constituted a National Welfare Board for Seafarers headed by the Union
Minister of Shipping for advising the Government on the measure to be taken for
promoting the welfare of Seamen whether on shore or aboard.
31
(ii)
The Board functions with Minister of Shipping as the Chairman and Minister of
State for Shipping as Vice Chairman. It comprises 2 Members of Parliament (one
from Lok Sabha and one from Rajya Sabha), 4 representatives from the Central
Government, 3 representatives each of Ship-owners and Seafarers, 2
representatives from Port Trusts, 1 non- official Member from the field of Seamens
Welfare of Public, and a representative from Society interested in Seamens Welfare.
(C)
Seafarers' Welfare Fund Society
(i)
The SWF Society is a Central Organization for Welfare of Indian Seafarers
and their families. It is registered under the Societies Registration Act 1860 and as a
Trust under the Bombay Public Trust Act 1950.
(ii)
Society represents various interests connected with Indian Shipping which
includes representatives of Indian and Foreign Shipowners and also of Seafarers
Unions separately for officers and seamen. The control of business and affairs of the
Society is vested with the Committee of Management of which the Director General
of Shipping is the ex-officio Chairman.
4.11
MINOR PORTS SURVEY ORGANISATION:
4.11.1 Structure and Function:
Minor Ports Survey Organization (MPSO) is a subordinate office under the

Ministry of Shipping, entrusted with the responsibilities of carrying out Hydrographic
surveys in minor/major ports and inland waters on agreed program. The Senior
Hydrographic Surveyor is the Head of the Office with its Headquarters at Navi
Mumbai. The Director General of Shipping, Mumbai is its Head of the Department.
4.11.2 Performance:
Details of the Hydrographic survey works carried out by the Organization up

to 01.10.12 are as follows:
i)
Conducted detailed Hydrographic survey of creek from mouth of Middle strait

up to Baratang Jetty for Development of supplementary sea route to Baratang
during June to August, 2012 in Andaman & Nicobar group of Islands for
Andaman Lakshadweep Harbour Works.
ii)
Conducted monitoring survey of Jawaharlal Nehru Port Trust Channel,

Lagoon and Off LB-2 during May, 2012.
iii)
Undertook pre-dredging hydrographic survey 34.5 KM length proposed

channel for Deepening and widening of Mumbai Harbour and Jawaharlal Port
Trust channel during Aug. to Oct., 2012.
iv)
Supervised jointly with Kandla Port Trust the tripartite Hydrographic surveys
conducted by Dredging contractors with their launch and equipment in Kandla
Port Trust channel, alongside berths and jetties on monthly basis.
32
v)
Detailed pre monsoon hydrographic survey of Navigational Channel, outside

breakwater and Sand trap of Gangavaram Port Limited, Visakhapatnam.
vi)
Supervised jointly with Mumbai Port Trust surveyors the tripartite interim
survey of Offshore Container Terminal conducted by dredging contractor with
their launch and equipment. MPSO also conducted land survey for filling of
the existing Princess and Victoria Docks by sand dredging and witnessing the
pre-dredging survey of second Chemical Berth off Pir Pau conducted by
Mumbai Port Trust (MbPT) surveyors with their survey launch Sanshodhini.
vii)
Supervised jointly with Mumbai Port Trust surveyor the tripartite post dredging
surveys of Maintenance dredging of ferry wharf and its approaches, harbor
wall, Indira dock entrance, P & V dock, old pir-pau oil jetty, Gateway of India
keywall, Ballard pier ext, dumping area, Victoria dock, Indira dock and Princes
dock conducted by dredging contractor with its launch and equipment in
Mumbai Port.
viii)
Conducting monthly progress survey of ICTT basin at Vallarapadam and

Outer channel, Emakulam Channel, Mattancherry channel for Cochin Port
Trust.
ix)
Supervised, witnessed and third party certification of survey related jobs

conducted by dredging contractor with their launch and equipment in Dhabol
Port channel for Ratnagiri Gas and Power Pvt. Ltd.
x)
Supervised the tripartite Pre and Post dredging survey with port surveyors
conducted by dredging contractor with their launch and equipment in New
Mangalore Ports outer channel, Lagoon, Old and Western dock arm etc.
xi)
Supervised the tripartite Monitoring survey at bar mouth channel and

kandathpalli area of the existing fishing harbor at Mangalore for Govt. of
Karnataka during April-May-2012.
xii)
Supervised the tripartite Pre and Post dredging survey of Maintenance

dredging in Mormugao Port conducted by the dredging contractor during AugSept-2012.
xiii)
MPSO witnessed the survey conducted by the dredging contractor with their
survey equipment and craft for pre-dredging of Deepening of Earen side of Dr.
Ambedkar Dock Basin including alongside berths of second container
terminal, Jawahar Dock Basin and berths and Maintendance Dredging of
Eastern Channel in Chennai Port Trust from Oct-2012.
4.12 INDIAN MARITIME UNIVERSITY:

The Indian Maritime University was established as a Central University by the
Government of India under the auspices of the Ministry of Shipping by an Act of the
Parliament, namely the Indian Maritime University Act, 2008. The Act was brought
into force on 14th November, 2008 by subsuming seven institutions at Chennai,
33
Mumbai, Kolkata and Visakhapatnam. The Head quarters of the University is

functioning at Chennai.
During the year 2011-12, the University has established one more campus at
Kandla, where the Diploma in Nautical Science was started on 22 nd August 2011.
The Kandla Port is extending all infrastructure facilities for the Kandla Campus for
the first three years. The University now has six campuses namely Chennai,
Mumbai, Kolkata, Visakhapatnam, Cochin and Kandla (Gujarat).
During the year 2012-13 (1st April 2012 to 20th December 2012), the posts of
Vice-Chancellor, Controller of Examinations, Registrar and Finance officer have
been filled up.
Academic Developments
The University is offering the following courses:
Student Admission Details (2011-12)
Sl.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Course
Ph.D
MBA (Port & Shipping Management)
MBA(International Transportation and Logistics
Management)
LLM(Maritime Law)
M. Tech (Naval Architecture & Ocean
Engineering)
PG Diploma in Maritime Engineering
B. Tech (Marine Engineering)
B. Tech (Naval Architecture & Ocean
Engineering)
B. Sc (Maritime Science)
B.Sc. (Ship Building and Repair)
B. Sc. (Nautical Science)
DNS leading to B. Sc (Nautical Science)
Total
Total number of
Candidates admitted
01
58
30
10
12
71
574
40
23
11
138
2730
3698
The University follows reservation policy prescribed by Government of India in

respect of reserved categories. The University has also conducted Post-Sea courses
and Management Development Programmes (MDP) which had a total participation
of 13963 and 808 respectively during the year. The student strength in the affiliated
colleges is 2388.
During the year 2012-13 (1st April 2012 to 20th December 2012), total number
of the candidates admitted in various courses is 2228. The University has given
affiliation to 38 colleges. The total number of students who participated in Post Sea
Courses and Management Development Programme (MDP) during this period is
8819 and 394 respectively.
34
Research and Development:

The details of Research and Consultancy Projects which were undertaken are
as follows:S. No.
Campus
Visakhapatnam
Campus
Chennai
Campus
Kolkata Campus
2011-12
2012-13
(up to 20/12/2012)
Thirteen Research Projects to the Fifteen
Research
&
tune of Rs.18.11 crores and 16 Development projects are
Consultancy projects to the tune of under process
Rs. 74 Lakhs.
Five Consultancy Projects to the Four consultancy projects
tune of Rs. 34 Lakhs.
to the tune of 34.50 lakhs
One Research Project and two Two consultancy projects
Consultancy Projects to the tune of
Rs. 12.5 Lakhs.
Finance
The total recurring expenditure of IMU was Rs. 70.24 crores and total revenue
generated is Rs. 76.33 crores during 2011-2012. The IMU has been sanctioned an
amount of Rs 282.25 crores to undertake development work for its headquarters at
Chennai and its campuses. Out of Rs. 282.25 cores, grant-in-aid received till
31.12.2012 is Rs 200.45 crores.
Library and Lab Facilities

Each Campus has a library, which caters to the needs of faculty members and
students. A good collection of books and reputed journals are available in all
Campuses. The Visakhapatnam Campus Library is fully digitized. Initiatives have
been taken to digitize all the libraries. The Visakhapatnam Campus also has a
collection of drawings pertaining to Ship Designing. The Campuses have well
equipped labs for the students.
Placement
IMU is taking necessary steps for placement of students in all its Campuses.
In the case of MBA, 80% students were placed in reputed companies. Nearly 95% of
B.E (Marine Engineering) students of Kolkata Campus have been placed in reputed
shipping companies. The Mumbai Campus placed 61% of B.Sc. Maritime Science
students and 41% of B.Sc. Nautical Science students. Efforts are also being taken
for improvement of placements in respect of DNS students. All the students are
given training to enable them to equip themselves to face the interviews/selection
procedures.
Infrastructure Development
During 2011-12:- Five new additional lecture halls, one semi-permanent
hostel for girl students and a permanent hostel for an intake capacity of 240 students
were constructed in the Chennai Campus. The renovation work of administrative
building in Cochin Campus was under progress.
35
Two administrative buildings for IMU Headquarters at Chennai are under

construction. In addition, a section of the compound wall work of 600m was
completed.
The sewage water treatment plant work was completed and has started
functioning in the Chennai Campus.
During 2012-13 (up to 20/12/2012) following works are being carried out:IMU Headquarters: - Construction of Compound wall, Construction of Approach
Bridge over Buckingham Canal from East Coast Road to IMU site, Construction of
Academic Block, Hostels through Central Public Works Department (CPWD).
IMU Mumbai Campus: - Hostel, New Class room, a new canteen, Installation of
solar water heating system, upgradation of classrooms, Laboratories and Workshops
IMU Kolkata Campus: - OBC Hostel Building, Construction of Academic &
Scholastic building, New Hostel, Installations and commissioning of Generator Set.
IMU Visakhapatnam Campus: - Temporary structures in laboratories and class
rooms.
IMU Cochin Campus - Setting up of seamanship lab, Equipments for laboratory,
Installation of computers etc.
4.13 SHIPPING CORPORATION OF INDIA LTD:

The Shipping Corporation of India Ltd. (SCI) was formed on 02.10.1961 by
the amalgamation of Eastern Shipping Corporation Ltd. (ESC) and Western Shipping
Corporation of India Ltd. (WSC). The status of the SCI has changed from Private
Limited Company to Public Limited Company with effect from 18.09.1992. Sailing
through for nearly five decades, the SCI has a significant presence on the global
maritime map. SCI is the countrys premier Shipping Line, owning fleet of 80 vessels
of 32.94 Lakh Gross Tonnage (GT) i.e. 58.53 Lakh tonnes Dead Weight Tonnage
(DWT) with a share of nearly one third of the total Indian tonnage. The SCI has had
a consistent track record of making profits till financial year 2010-11. However, the
company registered a loss of Rs.428.21 crores in the last financial year i.e. 2011-12
due to severe economic slump in global market. Although there was an increase in
the operating revenues, the same have more than been offset primarily by increase
in bunker (Fuel) costs and revaluation of foreign currency loans which led to increase
in the interest costs. Due to the depreciation of the Indian rupee vis a vis US dollar,
the finance cost rose to Rs.387.30 crores, which included the exchange loss of
Rs.296.73 crores on foreign currency loans.
4.14 Port Entry Rules

In order to prevent wreckage of older foreign ships in Indian waters as well as
to prevent oil/chemical spill incidents by vessels carrying bunker oil/oil as cargo HNS
(Hazardous & Noxious Substances) cargo/gas tanker vessels, the Ministry of
36
Shipping has notified the Merchant Shipping (Regulation of Entry of Ships into Ports,
Anchorages and Offshore Facilities) Rules, 2012. The Rules provide as follows:
A vessel of three hundred tons gross or more (other than Indian ships)
entering into or sailing out of ports, terminals, anchorages or seeking port facilities or
Indian offshore facilities in Indian territorial water shall be required to be in
possession of a valid insurance coverage.
If any vessel which is (i) an oil product or chemical tanker more than twenty
years old or (ii) a general cargo ship or bulk carrier or offshore support vessel or
passenger vessel or any other type of cargo vessel more than twenty five years old;
or (ii) a liquefied natural gas or liquefied petroleum gas tanker more than thirty years
old, the same will be required to be classed within a classification society which is a
member of the International Association of Classification Societies or with a
recognized organization duty authorized by Indian maritime administration.
4.15 Cargo Policy

Foreign ships can engage in coasting trade in India only after obtaining a
licence from DG (Shipping) (Section 407 of Merchant Shipping Act). Grant of such
licences are governed by guidelines (Cabotage Policy) as per which Indian Ships
have the first right of refusal. Section 407 of the Merchant Shipping Act relates to
licensing of ships for coasting trade. The proposal for relaxation of Cabotage Policy
for transhipment of EXIM containers to and from International Container
Transhipment Terminal at Vallarpadam was approved by the Government subject to
certain conditions and a review of this relaxation after a period of three years. The
order to implement the relaxation of cabotage policy, as above, was issued to DG (S)
on 21.09.2012.
4.16 Memorandum of Understanding (MoU) with Asia Pacific Economic
Corporation (APEC):
A Memorandum of Understanding (MoU) was signed on September 24, 1997
between the then Minister of Shipping, Government of India and the Minister of
Public Works, Government of Flanders, Belgium to cooperate in various fields
relating to maritime transportation and Port development etc. In order to implement
the MoU, a Letter of Intent (LOI) was signed in October, 25, 2002 and subsequently
on October, 5, 2005 and 6th October, 2009. The last Letter of Intent has been
renewed on 14th September, 2012 for the period 2013-15 between Ministry of
Shipping, Government of India and Ministry of Mobility and Public Works,
Government of Flanders, Belgium.
As per the renewed LOI for 2013-15 signed on 14th September, 2012 in New
Delhi by Joint Secretary (Ports) in behalf of Ministry of Shipping, Government of
India and Secretary General, Ministry of Mobility and Public Works, Government of
Flanders, Belgium, both the Governments agreed mutually to promote each others
ports through inclusion of promotion material in ports exhibitions and by continuous
exchange of information/documents to Indian and Flemish ports. Both parties
agreed on various programmes viz promotion, Private Sector Cooperation, Seminar,
Information Exchange, Tailormade Training etc. Flanders in cooperation with the
APEC (Antwerp/Flanders Port Training Centre) will organise tailor made short
37
training courses for Indian officers on the subject viz. Port Planning and
Management, Inland Waterways Transport and Dredging and survey technology for
15 Indian officers in each year. In addition to tailor-made course, short training
courses will also be organized by APEC on port related issues. Flanders will provide
a maximum of 15 scholarships for tailor made course and also 15 scholarships for
short training course for Indian officers in APEC. Flanders will also provide advice
on the port project of all Major Ports of Indian and other organizations under the
administrative control of the Ministry of Shipping, Government of India. The progress
of the LOI will be jointly reviewed annually.
4.17
CENTRAL INLAND WATER TRANSPORT CORPORATION (CIWTC)
The Central Inland Water Transport Corporation Ltd. (CIWTC) was

incorporated on 22nd February 1967 by taking over all the assets of the erstwhile
River Steam Navigation Co., Ltd. (A sterling Company) and liabilities to the State
Bank of India and Govt. of India under a Scheme of Arrangement, approved by the
Calcutta High Court on 03.05.1967.
The Corporation is under the administrative control of Ministry of Shipping.
The Registered Office and Corporate Office of CIWTC are located at Kolkata. The
principal activity of the Corporation is transportation of cargo by barges through
Inland Waterways in the country and through the routes identified in the Protocol on
Inland Water Transport between India and Bangladesh.
The Corporation also operates and maintains the biggest IWT terminals in the
country i.e. T.T. Sheds at Kolkata apart from the terminals at Karimganj and
Badarpur in Assam.
38
CHAPTER V
SHIPBUILDING AND SHIP REPAIR

5.1 The nodal responsibility of the entire Shipbuilding and Ship-repair Industry vests
with the Ministry of Shipping.
There are 27 Shipyards in the country, 6 under Central Public Sector, 2 under
State Governments and 19 under Private Sector. Further details are given below :
Under Ministry of Shipping
Cochin Shipyard Limited, Kochi
Hooghly Dock and Port Engineers Limited, Kolkata
Under Ministry of Defence
Mazagaon Dock Limited, Mumbai

Garden Reach Shipbuilders and Engineers Limited, Kolkata
Goa Shipyard Limited, Goa
Hindustan Shipyard Limited, Visakhapatnam
Under the control of State Governments

Alcock Ashdown Co. Ltd., Gujarat
Shalimar Works Limited, Kolkata, West Bengal
The Ministry renders technical advice and formulates policies on matters
relating to development of shipbuilding and ship-repair industry.
5.2 Shipbuilding Subsidy Scheme:
5.2.1 Government has been implementing a shipbuilding subsidy scheme for Central
Public Sector Shipyards intermittently since 1971 with some gaps and modifications
from time to time. Government of India extended the Shipbuilding Subsidy Scheme, for
both export and domestic orders to all the Indian shipyards including private sector
shipyards on 25.10.2002. The broad features of the scheme are as follows:
30% subsidy is payable for all export orders irrespective of size and type but
limited to sea going merchant vessels of and over 80 meters in length for domestic
vessels.
Prices to be determined by the global tender in case of domestic orders.
In case of export orders obtained on price negotiation a Price Reasonableness

Certificate to be obtained from DG (Shipping).
In case of Public Sector Shipyards, subsidy is payable on stage payments

received by the shipyard.
39

In case of Private Sector Shipyards, subsidy is payable after the delivery of the
vessel.
5.2.2 The above scheme expired on 14th August, 2007. This Ministry issued modified
guidelines dated 25th March, 2009, revised subsequently on 29th September, 2009 for
liquidation of committed liabilities in respect of shipbuilding contracts executed on or
before 14.08.2007. As per these guidelines, only those cases are eligible for subsidy
who have applied to the DG (Shipping) for Certificate of Price Reasonableness or to the
Ministry for in principle approval on or before 14th August, 2007. This Ministry is
releasing shipbuilding subsidy only in respect of the committed liabilities under the
shipbuilding scheme of 2002.
5.2.3 Expenditure in 2012-2013 :A budgetary provision of Rs. 400 cr. was
earmarked in the financial year 2012-13 for the scheme of shipbuilding subsidy which
was reduced to Rs. 250.00 cr. in RE 2012-13 due to non-receipt of adequate number of
proposals from the shipyards. As on 31st December, 2012, the Ministry has released a
sum of Rs. 163.51 cr. under the scheme.
5.2.4 Plan Schemes-R&D Schemes In Shipbuilding Status is given below:
Sl. No.
1.
2.
3.
4.
5.
6.
Name of Project
R & D Project on Development of Standard design
and Coastal and Short Sea Cargo Ships by IMU,
Visakhapatnam
R & D Project on Development of Standard Design
of Sea Going Tugs by IMU, Visakhapatnam
R & D Project on Ship Maneuvering and Propulsion
performance, using Data from Voyage Data
Recorder (VDR)/Automatic Identification System
(AIS) by IMU, Visakhapatnam with IIT Kharagpur as
Co Partner
R& D Project on Control of Ballast Water Problems
through Design Development by IIT, Kharagpur
R & D Project on Energy Efficiency of Marine
Power Plant
R & D Project on Standard Design of Tug for 40T,
50T and 60T Bollard Pull with alternative propulsion
System
Status
The project is in
progress
The project is
completed
The project is in
progress
The project is
completed
The project is in
progress.
The project is in
progress
5.2.5 Plan Schemes for conducting Studies

Sl. No.
1.
2.
3.
4.
Name of Study
Feasibility Study for setting up of Marinas in the West
Cost of India by IMU, Visakhapatnam
Study and Modernization of Design and Construction
of Country Craft operating in Coastal and River
Waters by IMU, Visakhapatnam
Study on Emissions from Vessels operating in Indian
Coast, Inland Waterways and Harbour Craft by IMU,
Visakhapatnam
Study on Conducting Safety Assessment Studies on
Passenger Vessels in Andaman Nicobar Islands,
40
Status
The study is in
progress
The study is in
progress
The study is in
progress.
The study is in
progress
5.
6.
7.
8.
9.
5.3
Lakshadweep Islands and Inland Waters by IMU,

Visakhapatnam
Study on Market Study and Capacity Building for
Indigenization of Dredger Manufacture by IMU,
Visakhapatnam
Study on Flow around Ships in a Hydrodynamic Test
Facility by IMU, Visakhapatnam
Study on Feasibility of Acoustic Remote Sensing of
suspended sediment concentration in the near shore
areas by IMU, Visakhapatnam
The study is in
progress
The study is in
progress
The setting up of
Laboratory is
completed and the
study is in
progress
Study on Energy Consumption in Shipbuilding and The study is in
Ship Dismantling by IMU, Visakhapatnam
progress
Study on Productivity in Indian Shipbuilding Industry The study is in
progress
Cochin Shipyard Limited
5.5.1 Cochin Shipyard Ltd, Kochi in the State of Kerala was incorporated in the year
1972 and is the largest shipyard in the country. Cochin Shipyard can build ships upto
1,10,000 Dead Weight Tonnage(DWT) and repair ships upto 1,25,000 DWT. The yard
has built varied types of ships including tankers, bulk carriers, port crafts, offshore
vessels, tugs and passenger vessels.
5.5.2 The yards shipbuilding order position as on 1st January, 2013 is 27 ships with a
total contract price of Rs. 3399.31 Cr. consisting of 20 Fast Patrol Vessel for Indian
Coast Guard, 5 Offshore Support Ships for National and International owners, a Buoy
Tender vessel for the Director General of Lighthouses and Lightships and the
Indigenous Aircraft Carrier for the Indian Navy.
5.5.3 The most prestigious and ambitious project being undertaken by CSL is the
Indigenous Aircraft Carrier for the Indian Navy. With the successful completion of the
Aircraft Carrier project, India would join a select band of only 05 other nations the world
over with the capability to design and build aircraft carriers of this size. This will be the
biggest warship ever built in India.
5.5.4 The yard is also a leading ship repairer of the country and has repaired more
than 1200 ships of all types. These include upgradation of vessels and Jack up Rigs
belonging to ONGC, Navy and Coast Guard. The yard has been consistently achieving
profits for the last several years. Considering its achievement Government of India
granted it Miniratna status on 21.07.2008.
5.5.6 Cochin Shipyard trains graduate engineers to become marine engineers who
later join ships, both Indian and Foreign as 5th Engineers.
5.5.7 Capital Structure
Authorized and Paid up Share Capital of the Company (as on 31.12.2012) are
Rs. 250 crores and Rs. 152.42 crore respectively.
5.5.8 Major facilities & Assets
41
The following are the major facilities and assets of CSL.

Facilities &
Assets
Quay 1 for repairs
Details
290m
Quay 2 for repairs
208m
Quay 3 for fitting

out
Covered shop
area
Steel Stockyard
460m
Facilities &
Assets
CNC Plasma
Cutting Machine
Steel Fabrication
facilities
Details
2 Nos
2000
tonnes per
month
1
Marine Painting
Shop
Mobile Cranes
(Max 120 T)
Transporters (Max
150 T)
35000 Sq m
13000 Sq m
5
2
Docks
Size
Capacity
Cranes
Dock No. 1
270x45x12M
125000 DWT
40,10&5t
Dock No. 2
255x43x9M
110000 DWT
300t,
50t
150t,
5.5.9 Manpower
The total man power of the company as on 31.12.2012 was 1695 consisting
of 252 Officers, 194 Supervisors and 1167 Workmen and 82 canteen
employees.
1167
82
Officers
Supervisors
252
194
5.5.10
Workmen
Canteen
Net Worth
Continued profitability of the company has resulted in an increase in Net

Worth form Rs. 968 crores on 31st March 2011 to Rs. 1051 Crores as on 31st
March 2012.
42
Net Worth (Rs. in Crores)
1051
968
566
429
680
2007-08 2008-09 2009-10 2010-11 2011-12
5.5.11
Operational highlights
The company achieved a total shipbuilding income of Rs. 1259.49 cr. during
2011-12 as against Rs 1319.97 cr. in 2010-11.
During the year, the yard delivered five Offshore Support Ships for the various
domestic and international owners.
Shipbuilding Income (Rs.

Crs)
1181
1320
252
1260
Shiprepair Income (Rs. Crores)

270
236
986
142
145
582
200708
2007-08 2008-09 2009-10 2010-11 2011-12
200809
200910
201011
201112
The company achieved a total ship repair income of Rs. 145.36 Crore
during the financial year 2011-12 as against Rs. 141.75 Crore in 2010-11.
Key repair projects undertaken by CSL during the year included refits of INS
Sutlej, JUR Mercury, ML Tuticorin, MV Skipper-II, INS Sagar Dhwani, DCI
Dredger XI & XVII,ICGS Varuna, Dredger Aquarious, MSV Samudra Sevak, INS
Nireekshak, SPM-1 (1567A), HSC Bangaram, Tug Balshi, MV Lakshadweep
Sea, Tug Iswari, MV Bharat Seema and MSV Hal Anant.
Order book position as on 31 December 2012 was as follows:Sl.
No.
Yard No.
Name of Vessel
43
No. of
Ships
Name of Owner
Contract
price
including
subsidy
(Rs. in cr.)
1.
CSL-071
2.
3.
4.
5.
6.
CSL-080
CSL-089
CSL-090
CSL-091
CSL-092
7.
CSL-093
8.
C501C520
AIR DEFENCE
SHIP
AHTS
STX NOD PSV
OSL CD PSV
INDIAN NAVY
1160.00
1
4
151.59
593.72
BUOY TENDER
VESSELS
FAST PATROL
VESSELS
SCI, MUMBAI
M/s SEA
TANKERS
MANAGEMENT
CO LTD.
CYPRUS
DGLL
MINISTRY OF
DEFENCE
(COAST
GUARD)
1334.00
Total
5.5.12
20
27
160.00
3399.31
MOU:-
Cochin Shipyards performance was rated Very Good under the MoU signed
with the Government for the year 2012-13.
5.6
HOOGHLY DOCK & PORT ENGINEERS LIMITED, KOLKATA
5.6.1 Hooghly Dock & Port Engineers Limited (HDPEL), situated at Kolkata, is one
of the oldest shipyards in India. It was established in 1819 in the private sector
known as Hooghly Docking & Engineering Company Limited. On merger of the Port
Engineering Works with Hooghly Docking & Engineering Limited, the Hooghly Dock
& Port Engineers Limited was formed by an Act of Parliament titled The Hooghly
Docking and Engineering Company Limited (Acquisition and Transfer of
Undertakings) Act, 1984.
5.6.2 The Company has two production units at Salkia and Nazirgunge in Kolkata.
Both the units have potential for construction of various types of ships, tugs, crafts,
dredgers, floating dry docks, fire float, mooring launches, fishing trawlers, pontoons
and sophisticated vessels like offshore platform, supply-cum-support vessels,
multipurpose harbour vessels, grab hopper dredger, lighthouse tender vessels, oil
pollution control vessels.
5.6.3 The Company has built 108 vessels, dredgers, barges etc. for various Port
Trusts, Andaman & Nicobar Administration, DGLL, Indian Navy, Oil & Natural Gas
Commission. In addition to this the yard has also undertaken repairs of more than
400 vessels for various organizations.
YEAR AT A GLANCE (2012-13):
5.6.4 During the year 2012-13, one Self Loading Cargo Vessel was constructed and
delivered to M/s. Inland Waterways Authority of India.
44
Achievements/work in progress till 31.12.2012:
5.6.5 The achievements of the Company in respect of shipbuilding and ship repairs
are:
Ship Building:
i)
2 Nos. Self Loading Cargo Vessels

The Order was received from IWAI for Construction of 2 Nos. One vessel
was delivered to IWAI during May, 2009. The other vessel has been
delivered to IWAI on 1st August, 2012.
ii)
1 No. Floating Dry Dock

The order was received from IWAI for construction of 1 No. Floating Dry
Dock at a cost of Rs.8.73 cr. (plus cost of steel work beyond 787 MT and
upto 1000 MT plus cost of crane and davits).
iii)
1 No. Hydraulic Surface Dredger

The order for 1 No. Hydraulic Surface Dredger was received from IWAI at
a contract price of Rs.575.30 lacs. The vessel was delivered in March,
2012.
iv)
6 Nos. Work Boats from IWAI

The order was received from IWAI for construction of 6 Nos. Work Boats
at a contract price of Rs.28.64 crores. The agreement has been signed in
Mar2008. At present the vessels are under construction at both
Nazirgunge and Salkia Works.
45
CHAPTER VI
DIRECTORATE GENERAL OF LIGHTHOUSES & LIGHT SHIPS (DGLL)
6.1
Role of the Directorate General of Lighthouses and Lightships (DGLL):
In the vast ocean, a mariner is not sure of his position unless he is

guided/helped by some signal from the land/space. DGLL provides service to enable
the mariner to know his position with respect to a fixed point on the land with the help
of Visual Aids to Navigation such as lighthouses, light vessels, buoys, beacons and
Radio Aids to Navigation like Differential Global Positioning System (DGPS), Radars,
Radar Beacons (Racons), Automatic Identification System (AIS) etc.
6.2
General and Local Lighthouses:
The Lighthouses are categorized into two types viz. General and Local
Lighthouse depending upon the marine traffic they serve.
The General Lighthouses are intended to serve the purpose of general
navigation along the coast of India. These are declared "General" by the Central
Government by Notification in the official gazette. The administration, maintenance
and up-keep of general Aids to Navigation is the responsibility of the DGLL.
The Local Lighthouses serve the purpose for the navigation of marine traffic in
the port areas and approaches to harbours and narrow waterways. The maintenance
and management of local aids to navigation is the responsibility of the Local
Authorities like Maritime State/Boards/Major Ports/Minor Ports. However, as per the
Lighthouse Act, Directorate General of Lighthouses & Lightships inspects local aids
to marine navigation, makes such inquiries in respect of management of these local
aids to navigation and suggests ways for improvement.
6.3
Background:
6.3.1 Pre-independence
(i)
Prior to 1927 there was no uniform system of management of
Lighthouse services in British India which included present day Myanmar,
Pakistan, Bangladesh and also various Princely States. As a first step to
centralize the Administration of Lighthouses, the government decided to
administer about 32 Lighthouses in the six Lighthouse Districts. viz. Aden,
Karachi, Bombay, Madras, Calcutta and Rangoon. The Lighthouse Act was
passed in 1927 and came into force in April 1929. However, after passing of
the Act, the administration of Lighthouses in Aden District was transferred to
Her Majestys Government in the U.K. The Government of India continued to
administer the Lighthouses in Persian Gulf financed from the Persian Gulf
Lighting Services Fund.
(ii)
As a result of reforms introduced, Burma (Myanmar) was separated out
from rest of India. But Government of India continued to administer the
General Lighthouses in Burma under the terms of an introductory agreement
between the two Governments.
46
(iii)
During the World War II, the activities of the Directorate were very
limited as several Lighthouses had to be doused in order to prevent the
enemies from making use of them.
6.3.2.1
Post-independence
After independence, the Karachi district and Lighthouses presently in
Bangladesh were separated out. Thus the Directorate was left with three
Districts with their Headquarters at Calcutta (Kolkata), Madras (Chennai) &
Bombay (Mumbai). About 50 Lighthouses, which were earlier under the
jurisdictions of Maritime Princely States, became direct responsibility of the
Central Government since 1950, resulting in creation of Saurastra & Kachchh
(now Jamnagar Lighthouse Distt.). In sixties, two new Lighthouse districts at
Port Blair (1960-61) and Cochin (1969-70) were established. One more
Lighthouse district at Visakhapatnam has been set up in the year 2001 for
better management and administration of the Aids to Navigation along the
coast of Andhra Pradesh.
In order to cope with post independence growing activities, the
Lighthouse Department which was under the Ministry of Commerce and later
part of Directorate General of Shipping, was re-constituted into a separate
Department as the Department of Lighthouses & Lightships under the Ministry
of Transport. It was again renamed in the year 2002 as Directorate General of
Lighthouses and Lightships under the Ministry of Surface Transport - now
Ministry of Shipping.
6.4
Organization and Management:

The Director General of Lighthouses & Lightships advises the Government of
India in the matters relating to Lighthouses. He is in turn assisted by five
Deputy Director Generals. Headquarters of the Directorate is situated at
Noida headed by the Director General of Lighthouses & Lightships. All policy
matters concerning administration, development, planning etc. are decided at
headquarters in consultation with Ministry of Shipping. Regional Lighthouse
District is headed by a Director who reports on the technical matters to the
Deputy Director General and he in turn reports to the DGLL. A team of
qualified engineers and ministerial staff assists the Director in effective
superintendence and management of lighthouses.
6.5
Organization
For the purpose of effective superintendence of Lighthouse and other aids to
marine navigation, the Indian coast is divided into seven regional directorates
known as Lighthouse Districts with their headquarters at Jamnagar, Mumbai,
Cochin, Chennai, Visakhapatnam, Kolkata and Port Blair. Recently Vessel
Traffic System (VTS) Directorate at Gandhidham has been established for
effective functioning of VTS- Gulf of Kachchh and co-located lighthouses.
47
6.5.1 Lighthouse Districts:

(i)
Jamnagar Lighthouse District stretches from Jakhau Lighthouse (close
to Pakistan border) to Bhavnagar which mainly caters to the requirements of
Aids to Navigation for the Gulf of Kachchh and the Gulf of Khambat. Vessels
approaching Kandla Port and number of minor ports under the aegis of
Gujarat Maritime Board take the help of various Aids established in this
region.
(ii)
Mumbai Lighthouse District stretches from Luhara Lighthouse near
Bharuch (Gujarat) to Suratkal Lighthouse near Mangalore (Karnatka). It
covers the coastline of Gujarat (partly), Maharashtra, Goa and Karnatka and
meets the navigational requirements of major ports at Mumbai, JNPT,
Mormugaon and New Mangalore. In addition, the district also caters to the
needs of minor ports of Gujarat Maritime Board established on the Eastern
Bank of the Gulf of Khamabat and Maharashtra Maritime Board.
(iii)
Kochi is the regional headquarters for the Kochi Lighthouse District
stretching from Kasargod in the North to Allepy in the South of Kerala coast
including all the Lighthouses in the Lakshadweep Islands. The region meets
the navigational requirements of the major port of Kochi, Vallarpadam and
number of minor ports of Karnataka Kerala and Lakshadweep.
(iv)
Chennai Lighthouse District stretches from Thangassari to
Kanyakumari on the West Coast and Kanyakumari to Pulicat on the East
Coast. The region meets the navigational requirement of major ports of
Tuticorin, Chennai and Ennore a number of minor and private ports under
Tamilnadu Maritime Board.
(v)
Visakhapatnam is the regional headquarters of Visakhapatnam
Lighthouse District and stretches from Armagaon Lighthouse in South to
Santapille Lighthouse in the North. The region meets the navigational
requirement of Vishakhapatnam Port and the various ports under Andhra
Pradesh Maritime Board.
(vi)
Kolkata Lighthouse District stretches from Saugar Island to
Kalingapatnam. The district mainly caters to the needs of the shipping traffic
for major ports of Kolkata, Haldia and Paradip and other minor ports in West
Bengal, Orissa.
(vii) Port Blair is the regional headquarters of the Andaman & Nicobar
groups of Islands Lighthouse District stretching from East Island in the North
to Indira Point in the South in the Bay of Bengal covering nearly 540
islands/isles. Shipping services are the lifeline of these islands. The region is
situated on the international navigational route in the Indian Ocean and thus
special significance has been given to this Lighthouse District. Since its
inception the Directorate has established a number of lighthouses, radio aids
to navigation in this region.
(viii) VTS Directorate Gandhidham is the regional headquarters of VTSGOK in Gulf of Kachchh under the charge and control of Dy. Director General,
48
VTS for general Administration of 12 VTS sites having 9 radar stations and 3
repeater stations. The lighthouses of Kachchh and Lighthouses co- located
with radar stations are under the purview of this Directorate.
6.6.
Development Plan Schemes:

6.6.1 National Maritime Development Programme (NMDP)
The Directorate is implementing seven schemes at a total cost of Rs
500 crore, as part of the NMDP Programme of the Ministry of Shipping.
6.6.2 Maritime Agenda
DGLL has projected Maritime Agenda (Vision 2020) of Rs.1594 crore
to deliver reliable, accurate, efficient & internationally compatible mix of
aids to Marine Navigation Service, for the mariners plying in the
Coastal and EEZ Waters.
6.6.3 12th Five year Plan
The 12th plan outlay (2012-17) of the Directorate is Rs 515 crore
consisting of 22 spill over and 26 new projects.
6.6.4 Annual Plan 2012-13
An outlay of Rs. 90.00 cr. is approved during the current financial year
2012-13. Important schemes under implementation are:
(i)
Replacement of M.V. Pradip Light House Tender Vessel.
(ii)
Establishment of National Navtex Network.
(iii) Establishment of AIS (P) Transponders for Small Fishing Vessels.
(iv)
Establishment of Office Building at Vishakhapatnam.
(v)
Automation of Lighthouses in Cochin, Chennai, Kolkata
&Vishakhapatnam Lighthouse Distt.
(vi)
Establishment of new Lighthouses at Rava, Maipura, Markanam,
Achra, Ready Port and Vembar.
(vii) Promotion of Tourism in Lighthouses.
(viii) Establishment of National AIS Network at Andaman & Nicobar and
Lakshdweep.
(ix) Real Time Kinematics.
6.7
Representation in International Bodies:
India is represented at IALA (International Association of Marine Aids to

Navigation and Lighthouse Authorities), non Governmental Organization, having its
Headquarters in Paris. The aim of IALA is to enable safe, economic and expeditious
movement of vessels through improvement and harmonization of aids to navigation
worldwide and to adopt other appropriate means for the benefits of maritime
community and the protection of environment.
India has been a member of the IALA ever since its inception. India was
elected as member of the Executive committee for the first time in 1980 for a term of
5 years. This honour has been repeated in 1985, 1990, 1994, 1998, 2002, 2006 and
in 2010. India is regularly contributing technical papers to all the International
49
Lighthouses conferences held so far and sends delegations to attend these

conferences regularly.
The IALA in conjunction with various member countries hosts
workshops/seminars with a focus to develop awareness on various topics related to
aids to navigation to raise the standards of management of these aids and raise the
visibility bar from how they determine and deliver those standards.
Directorate is planning for IALA Council Meeting to be held in December,
2013 in India.
6.8
Modernization and up-gradation of technologies:

6.8.1 In order to meet the requirements of marine navigation in relation to
the fast expanding traffic, a comprehensive programme to improve the
existing/provide new aids to navigation has been undertaken during the
successive plan periods. The process of development has led to the
modernization of aids to marine navigation in the country. Several new
designs for Lighthouse towers and equipment using local skills and materials
have been evolved. The Directorate has further ventured into the field of
Vessel Traffic Service in Gulf of Kachchh & National AIS Network and is
venturing in Navtex Transmission.
6.8.2 Energy Conservation: The Directorate has converted a large number
of lights from petroleum vapor/dissolved Acetylene Gas/Kerosene to the
electric operation, thereby conserving the conventional fossil fuel. On the main
land where mains supply is available light is operated on mains. In case of
mains power failure captive power plant is used. On the Island stations
operation of the light is achieved through solar energy. In the past
incandescent electric lamps of 3000 W and above were used for light source.
Now these lamps have been replaced with 150W/250W/400 W metal halide
lamps as per the requirement of a specific light and have helped to save on
electric energy.
6.9
Environmental Protection:
Directorate has minimized burning of fossil fuel for its lighthouse operation
and also, reduced running of Diesel Generator sets by introducing solar power
operation wherever possible. A concept of combining wind and solar energy with
intelligent electronics at lighthouse application too is being is under implementation.
There is less fuel burning, less smoke, no wastage and thus protection to the
environment. Directorate has also undertaken afforestation of all the lighthouse
premises to keep the environment clean.
6.10
Development of Tourism:
Lighthouses due to their natural and scenic locations have tremendous tourist
potential. The Competent Authority has approved the proposal of promotion of
tourism at 13 lighthouses. M/s ILFS have been nominated as consultants for working
out modalities and identifying the developers for the thirteen lighthouses.
50
CHAPTER-VII
INLAND WATERWAYS TRANSPORT

7.1
The Inland Waterways Transport (IWT) mode is widely recognized as a fuel
efficient, environment friendly and cost effective mode, especially for bulk goods,
over dimensional cargo and hazardous goods. Inland waterways comprising rivers,
lakes, canals, creeks, backwaters etc extend to about 14,500 km in the country.
However, potential of this important mode of transport has not been fully exploited so
far. In several countries of the world where development of this mode was given due
importance and attention, IWT mode has substantial share in inland transport
network. But in India development of this mode did not receive priority/attention and
investment made for the same has been negligible. Upto 1986 there was no
separate organization to look after this sector. The primary requirement for making
this mode commercially viable is development of IWT infrastructure (fairway,
terminals and navigation aids) and at the same time creating enabling environment
for augmentation of IWT fleet, primarily by the private sector and steps are being
taken in this regard. Development and regulation of inland waterways of the country
rests with the Inland Waterways Authority of India (IWAI)
Inland Waterways Authority of India (IWAI)

7.2. The IWAI was set up on 27th October 1986 vide Inland Waterways Authority of
India Act, 1985, for regulation and development of inland waterways for the purposes
of shipping and navigation.
IWAI is primarily responsible for development,
maintenance and regulation of National Waterways (NWs). The waterways which
are not declared as NWs remain under the domain of the respective State
Governments.
National Waterways (NWs)
7.2 As of now, there are five NWs details of which are given below:
Sl.
Name of NW
No.
1.
The Ganga from Haldia to Allahabad- NW-1
2.
The Brahmaputra from Dhubri to Sadiya-NW-2
3.
The West Coast Canal from Kottapuram to
Kollam along with Udyogmandal and
Champakara canals- NW-3
4.
The Kakinada-Puducherry stretch of Canals
and the Kaluvelly Tank, Bhadrachalam
Rajahmundry stretch of River Godavari and
Wazirabad Vijayawada stretch of River
Krishna-NW-4
5.
The Talcher- Dhamra stretch of river
Brahmani, Geonkhali- Charbatia stretch of
51
Kilometer
1620 km
891 km
205
Year of
Declaration
1986
1988
1993
1078 km
2008
588 km
2008
East Coast Canal, Charbatia- Dhamra stretch

of Matai river and Mangalgadi-Paradip stretch
of Mahanadi delta rivers-NW-5
IWAI undertakes development and maintenance of IWT related infrastructure
facilities on first three NWs. Various projects for developing and maintaining
following infrastructure on these NWs have been completed/ are in progress:
(a)
(b)
(c)
(d)
Fairway with 2.5m/2m/1.5m depth in NW-1, 2.5m/2m/1.5 m depth in NW-2

and 2 m depth in NW-3.
A number of fixed and floating terminals with mechanical handling facilities
and access and egress by road/rail.
Facilities for day and night navigation with DGPS connectivity on NW-1 &
2; and
Vessels (dredgers, survey launches, tugs etc) for developmental works
and also for operating demonstrative cargo services (cargo vessels)
National Waterways 1, 2 & 3

7.4
IWAI is implementing projects for making National Waterways 1,2 & 3 fully
functional wherein it is envisaged to provide fairway with 3 m/2.5 m/2m/1.5 m depth, a
judicious mix of fixed and floating terminals and facilities for 24 hrs navigation. Some
important project/initiatives taken under this process are fairway development, terminal
and navigational aids
Fairway Development
7.5
On NW-1 and 2 which are alluvial rivers, dredging and bundling are to be
carried out every year during post monsoon period on shallow areas (called shoals)
to maintain targeted Least Available Depth (LAD). NW-3, however is a tidal canal
with predictable tidal variation of water levels. On this waterway therefore, once the
desired depth is provided by capital dredging it can be maintained for a number of
years by carrying out nominal maintenance dredging. Till 2008-09, IWAI had 3
Cutter Suction Dredgers (CSD) and 1 Hydraulic Surface Dredger (HSD) on NW-1, 1
CSD and 1 HSD on NW-2 and 2 CSD on NW-3. Between 2009-10 and 2011-12,
IWAI has procured a number of dredgers. It has at present 19 dredgers with which
IWAI aims to provide higher LAD in NW-1 and 2, [3 m in Haldia-Farakka (against 2.5
m at present), 2.5 m in Farakka - Barh(against 2.0 m at present), 2 m between Barh
and Ghazipur for 330 days (against 270 days at present) in NW-1 and 2.5 m
between Dhubri and Neamati (against 2.0 m at present)] and assured 2.0 m in entire
NW-3 by January 2013 as against 125 km till March, 2011. In NW-3, out of 205 km
capital dredging remains to be done in only 20 km and it is in progress. With these
depths, viability of IWT operations on NW-1, 2 and 3 would increase.
Terminals
7.6
IWAI has already constructed low level jetties of permanent river terminals at
Patna and Pandu. Construction of high level jetty has been completed at Patna while
at Pandu it is nearing completion. Pandu terminal has also been provided with broad
52
gauge railway connectivity and an alternative road connectivity with National

Highway. With these facilities, Pandu terminal is being developed as a multimodal
transport hub for north-eastern sector. Jogighopa is being planned for developing as
a big coal handling terminal. Fixed terminals already exist at Farakka and Patna
while a new fixed terminal is being constructed at Kolkata on NW-1. Construction of
a fixed terminal at Varanasi is also being acted upon. On NW-3, permanent terminals
have been constructed at Kottapuram, Aluva, Maradu, Cherthala, Kayamkulam,
Vaikom, Trikkunnapuzha and Kollam while construction of terminal at Alappuzha is
in progress. Recently two Ro-Ro jetties have also been constructed at Bolghatty and
Willington islands, which have facilitated seamless connectivity of NW-3 with
Vallarpadam port for container transportation. Floating pontoon jetties are also
available at various places on NW-1 [(Haldia, Kolkata (BISN, Botanical garden),
Shantipur, Katwa, Farakka, Rajmahal, Sahibganj, Bateshwarsthan, Bhagalpur,
Munger, Semaria, Buxar, Ghazipur, Varanasi and Allahabad) and on NW-2 [Dhubri,
Jogighopa, Tejpur, Silghat, Jamuguri, Neamati, Dibrugarh, Panbari, Sadiya and
Saikhowa. These floating pontoons can be shifted to/placed at any other location
depending on demand.
Navigation Aids
7.7
IWAI has provided night navigation aids from Haldia to Ballia (1105 km) on
NW-1, from Dhubri to Silghat (442km) on NW-2 and entire 205 km in NW-3.
Besides, day navigation marks are maintained in entire lengths of these three NWs.
In addition, for providing state of art computer based navigational aids, IWAI has
planned four DGPS stations each on NW-1 and NW-2. On NW-1, stations at
Swaroopganj, Bhagalpur and Patna have been commissioned and construction at
Varanasi shall start soon. As regards NW-2, a DGPS station at Jogighopa has been
commissioned while DGPS stations at Tejpur and Dibrugarh are under construction.
A station at Dhubri has been recently approved. To ensure safe navigation, IWAI has
also developed navigational charts, navigational atlas and software which can be
used on NW-1,2,3 and Sunderbans waterways. With these, any vessel fitted with a
computer and a few more devices can navigate safely by following navigation route
loaded in the computer. In addition, IWAI provides river pilots on NW-1 and NW-2.
IWAI is also planning to provide River Information System (RIS) on NWs starting with
Haldia-Farakka stretch of NW-1 and for this inputs of experts from Netherlands have
been sought under a bilateral cooperation on IWT between the two countries.
National Waterways 4 and 5

7.8
Preparation of Detailed Project Reports (DPR) for the two new NWs (NW-4 &
5) which were declared in November 2008 has been completed. However, no fund
has been allocated for their development. The Planning Commission suggested to
explore the possibility of developing more commercially viable stretches of
waterways through PPP mode with Viability Gap Funding (VGF). Accordingly,
interaction was made with the stakeholders of both these waterways and more
commercially viable stretches were identified. Department of Economic Affairs
(DFA) and Asian Development Bank (ADB) under their India Infrastructure
Development Fund (IIDF) and PPP Pilot Project initiative schemes agreed to take up
appointment of a transaction adviser (consultant) for developing these projects and
have appointed M/s Grant Thornton in March, 2012. The consultant had submitted
53
the project report of phase-I study in October, 2012 which is under examination. The
first phase of the project ie preparation of Request for Qualification (RfQ) document
is likely to be completed by January, 2013.
NTPC Coal Movement
7.9
Farakka and Kahalgaon thermal power stations located on NW-1 face acute
shortage of coal due to limitation of railways. Considering that the Haldia-Farakka
stretch of NW-1 can be developed with 3 m/2.5 m LAD without much difficulty enabling
passage of cargo vessels of 1500- 2000 tonne making IWT operation commercially
viable, IWAI had been working on a project for transportation of 3 MnT per year of coal
from Sagar/ Sand heads to Farakka by IWT mode. In July/August 2010 NTPC
provided firm commitment of transportation of 3 million tonnes per year of imported coal
by IWT mode for seven years. Thereafter, IWAI developed a project envisaging entire
investment from private sector. The project comprises (i) transhipper at Sagar/Sand
heads (ii) barges (iii) terminal with coal unloading facility at Farakka; and (iv) conveyor
system from terminal to the coal stack yard of the power plant. IWAI on behalf of NTPC
called bids from the private sector and after competitive bidding, NTPC awarded the
work to M/s Jindal JTF Ltd. A tri-partite agreement has been signed between NTPC,
IWAI and M/s Jindal JTF Ltd on 11th August, 2011. Construction of unloading facility at
Farakka is in progress. The transportation of coal is likely to commence in January,
2013. Success of this project would pave the way for many such projects for other
power plants along NWs.
Other Potential Projects
7.10 There is also the possibility of movement of project cargo of Hydro-power
projects coming up in Arunachal Pradesh on various tributaries of Brahmaputra.
IWAI is also working on the possibility of transportation of domestic/imported coal for
other power plants of Bihar, UP, West Bengal etc. as well as fertilizers on NW 1 and
2, food grains and jute on NW-2 and containers on NW-3 etc. Recently IWAI has
identified a few specific projects with potential. These Projects are as follows:
1.
2.
3 MMTPA coal transportation for NTPCs power plant at Barh (near Patna).
0.5 MMTPA coal transportation for NTPCs power plant at Bongaigaon (near
Jogighopa on Brahmaputra).
3.
Transportation of fertilizers on NW- 1.
4.
5.
Ro- Ro facility between Dhubri & Hatsingimari on NW- 2

O & M of 9 terminals on NW- 3.
6.
Transportation of food grains from Kolkata to Tripura via Ashuganj.
Action to develop these projects further has been initiated by IWAI and other
organizations concerned.
54
Movement of Over Dimensional Cargo (ODC) by IWT Mode

7.11 There had been many successful movements of Over Dimensional Cargo
(ODC) on NW-1, 2 and 3 in last two years. Considering that IWAI has upgraded
IWT infrastructure on NW-1, 2 and 3 and based on interaction with various project
promoters and logistics operators, it is expected that ODC movement on NWs, is
going to increase substantially in coming years. Therefore, from 1 st January 2010
IWAI has started levying user charges @ Rs.1.50 per tonne per km for movement of
ODC on these NWs. Transportation of ODC on NW-1 has gone up from 672 tonnes
in 2008-09 to 16,016 tonnes in 2011-12. IWAI has earned revenue of Rs. 4.9 cr from
2009-10 to Sept, 2012 from its levy of Rs1.50 per ton-km on movement of Over
Dimensional Cargo (ODC)
INDO-BANGLADESH Protocol on Inland Water Transit and Trade

7.12 An Inland Water Transit and Trade Protocol exists between India and
Bangladesh under which inland vessels of one country can transit through the
specified routes of the other country. The existing protocol routes are (i) KolkataSilghat -Kolkata, (ii) Kolkata-Karimganj-Kolkata, (iii) Rajshahi-Dhulian-Rajshahi and
(iv) Silghat-Karimganj- Silghat. For inter-country trade, five ports of call have been
designated in each country. These are: Haldia, Kolkata, Pandu, Karimganj and
Silghat in India and Narayanganj, Khulna, Mongla, Sirajganj and Ashuganj in
Bangladesh. This protocol is presently valid upto 31.3.2014. More than 15 lakh
tonnes of fly ash is transported between Kolkata/Haldia and Bangladesh every year
under this protocol. Another significant activity was transportation of project cargo by
inland waterways (through Bangladesh) for ONGCs Palatana powerplant in Tripura
which became possible due to declaration of Ashuganj as a new port of call under
Indo-Bangladesh Protocol on inland water transit trade. At the initiative of IWAI, the
concerned Ministries of Home Affairs, Dept of Revenue, Environment & Forests,
Govt of West Bengal and Bangladesh Authorities have approved the proposal to use
an alternative route bypassing Core Area of Sunderbans Tiger Reserve. This route
has been made operational w.e.f 1st June, 2011.
Kaladan Multimodal Transport Project

7.13 This project was conceptualized by the Ministry of External Affairs to provide an
alternative connectivity of Mizoram with Haldia/Kolkata ports through Kaladan river in
Myanmar. The project envisages road transport from Mizoram to Paletwa (Myanmar),
thereafter from Paletwa to Sittwe (Myanmar) by IWT and from Sittwe to Haldia by
Maritime Shipping. The project is piloted and funded by the MEA which appointed
IWAI as their Project Development Consultant (PDC).
Based on IWAIs
recommendations, MEA awarded the work to the successful bidder [M/s ESSAR
projects (I) Pvt Ltd] for construction of port and IWT components at a cost Rs 342 cr.
The construction work of Sittwe IWT terminal is in progress and the entire work is
targeted to be completed by December, 2013.
National Inland Navigation Institute (NINI)
55
7.14 NINI was constructed by IWAI at Patna and has been functional from
February, 2004. Induction course for deck and engine ratings, preparatory course for
serang and drivers, basic and advanced dredging courses, refresher courses for
hydrographic surveyors, repair and maintenance of vessels etc are conducted in
NINI regularly. So far, over 1300 candidates (till July,2012) have been trained at
NINI for IWT sector. The administration and management of the Institute is done by
M/s ARI, New Delhi. NINI has got ISO 9001:2008 certification during February, 2010.
100% placement has been achieved for the trainees of 13 th and 14th batch and 50%
for 15th batch. A scheme for placement of NINI trained candidates on board IWAI
vessels under Apprentice Act has also been implemented. An Inland Vessel
Maneuvering Simulator has been set up and commissioned in March, 2010.
Further, MoU has been signed between IWAI and M/s ARI for setting up of a Marine
Simulator Centre at NINI on 50:50 revenue sharing bases for which the work is in
progress, and the centre has trained 26 candidates so far. The Institution has been
approved by DG Shipping to conduct Navigational Watch keeping officers courses
for manpower for River Sea Vessels and Coastal Vessels. The first Course
commenced on 15th April, 2012. The institute has also assisted the Govt. of Bihar in
drafting and adopting Boat Rules 2010 and IV rules for Govt. of Bihar. The approval
process of Diploma Program in IWT from IMU is also in progress.
Cargo Transportation by Inland Waterways
7.15 The transportation of cargo by IWT mode has increased from the level of 32
MnT (1.6 billion tonne-km) in 2003-04 to 74.30 Million Tonne (4.828 btkm) in 201011 and 70.29 MnT (4.770 btkm) for the year 2011-12. But it still forms a very small
part of the total transport network. On NW -1 and NW -2, the cargo moved was stone
chips, ODC, project cargo, fly ash, etc. On NW -3 the main cargo transported was
rock phosphate, furnace oil, POL, Sulphur etc. On Goa waterways, iron ore is the
main cargo transported by IWT mode and on Mumbai waterways it is coal and steel
products. The details of cargo moved are given below:
Year
2009-10
2010-11
2011-12
Name
National Waterway 18.11 lakh tonne
18.71 lakh tonne
33.10 lakh tonne
no.1
(1.048 btkm)
(1.228 btkm)
(1.454 btkm)
21.64 lakh tonne
24.06 lakh tonne
no.2
(0.059 btkm)
(0.057 btkm)
(0.061 btkm)
no.3
(0.010 btkm)
Goa Waterways
530.30 lakh tonne
(2.651 btkm)
Mumbai
119.91 lakh tonne
Waterways
(0.648 btkm)
Total
696.14 lakh tonne
(4.416 btkm)
[btkm billion tonne km
8.86 lakh tonne

(0.014 btkm)
545.00 lakh tonne
(2.725 btkm)
148.75 lakh tonne
(0.803 btkm)
742.96 lakh tonne
(4.828 btkm)
13.44 lakh tonne

(0.013 btkm)
432.79 lakh tonne
(2.164 btkm)
199.48 lakh tonne
(1.077 btkm)
700.29 lakh tonne
(4.770 btkm)
The cargo moved during 2012-13 (till Sept, 2012) is 3.75 MnT for the 3 NWs.
56
Central Sector Scheme for IWT Sector for North Eastern States
7.16 Central Government provides 100% grants to NE States for development of
Inland Water Transport (IWT) under the CSS. During 2012-13, an amount of Rs.
1.04 crore has been released to the North-Eastern States.
River Cruise/ Tourism
7.17 River cruise/ tourism has been a regular feature on National Waterways 1 & 2
since the last 3-4 years. Various companies namely M/s. Heritage River Cruises Pvt.
Ltd (formerly known as Pandaw Cruises India Pvt. Ltd), M/s. Vivada Inland
Waterways and M/s. Assam Bengal Navigation Co. Brahmaputra cruises, for Horizon
etc. operate their cruise vessels on NW-1 and Sunderbans waterways. M/s AssamBengal Navigation Company are also operating cruise vessels, on NW-2. River
tourism on NW-3 is already popular among domestic and foreign tourists. In short, it
can be said that river cruise on NW-1, 2 and 3 has started and is likely to flourish in
future.
57
CHAPTER-VIII
CHARTERING WING
8.1
Chartering Wing (Trans chart) in the Ministry of Shipping is responsible for
making shipping arrangements for transportation of Government owned/controlled
cargoes against FOB/FAS imports of Government. In accordance with the
Government policy/procedure. The shipping arrangements are centralized with the
Chartering Wing. The services of the wing are also open to private sector.
8.2
The Chartering Wing makes shipping arrangements at internationally
competitive freight rates with the consent and prior approvals of the concerned govt.
department/PSUs and in the process gives cargo preference/support to Indian
Vessels without giving any price preference. This Wing also advises the concerned
Indenting Government Departments/PSUs/Projects on various aspects of shipping
and post shipping matters.
Highlights of 2012-2013
During the period under report from 1st January, 2012 to 31st December,
2012, a total 408 ships were chartered by the Chartering Wing (Transchart) for
shipment of total quantity of approximately 275.26 lakh MT of cargoes on
government account. Out of total 408 ships chartered, 158 were Indian Ships which
carried approximately 114.10 lakh MT i.e. approx. 41.45% of the total quantity. The
main reason for low percentage of cargo carried by Indian vessels was due to
inadequate availability of the required type of vessels in Indian fleet for carriage of
Crude oil, Coking Coal and Fertilizers as well as Indian ship owners preferring better
alternate opportunities available to Indian vessels in cross trades. The major cargoes
handled during the year were coking coal, crude oil, fertilizer, fertilizer raw materials,
lime stone, iron ore, steel materials, seawater magnesia, ballast cleaning machines
and other Liner/Project cargoes. The main reason for low share of Indian vessels
was due to inadequate availability of required type of vessels in Indian fleet for
carriage of various bulk cargoes and also low participation of Indian vessels for
covering the government cargoes due to availability of better alternate options.
However, all efforts were made to use available/suitable Indian vessels to the
maximum extent possible. The shipping arrangements were made as per the
requirement of indenting departments/PSUs and with their prior approvals.
8.3
Chartering wing has been successfully chartering vessels for the shipment of
urea from the port of Sur (Oman) to India from M/s. OMIFCO on account of
Department of Fertilizers fully meeting their requirement and finalised Contract of
Affreightment (COA) from last four years (year to year) which has resulted in saving
on account of freight outgo. Chartering Wing also finalised COAs for coking from
Australia/USA account M/s. RINL/SAIL and for limestone a/c SAIL/VSP.
8.4
Chartering Wing extended charter of specialized vessel for Indian Antarctica

Research Expedition along with an Ice breaker as per the requirement of the
National Centre for Antarctic & Ocean Research (NCAOR), Ministry of Earth
Sciences and also finalised a vessel for research purposes.
8.5
The statement indicating the quantities of Government owned/controlled

cargoes for which the shipping arrangements were made by this Wing during the
year 2011 and 2012 is placed at Annexure-III & IV.
58
8.6
Chartering Service Charges.
8.7
Levying of 1% chartering services charges on freight / dead freight/
demurrage / charter hire earned by Indian companies on vessel fixed through
Chartering Wing (Transchart) for carriage of import / export cargoes was made
applicable from Feb, 1993. Since then the amount collected/received on this account
have already totalled up to Rs.146.90 cr. (up to 31.12.2012) which has been
deposited in the Consolidated fund of India.
Freight market:
8.8
The Baltic Dry Index (BDI) is the key barometer of global freight activity. It
measures the demand for space on dry bulk carriers and is used to measure the cost
of ocean shipment of raw materials like iron ore, coal, grain, fertilizers and animal
feeds etc. BDI is a leading economic indicator.
8.9
The BDI opened in the year 2012 at 1552 on the 4th January, 2012 and in a
quick succession fell to 647 on 3rd February, 2012. However, it witnessed a
recovering phase thereafter and reached 1162 on 9 th July, 2012. It stayed stable for
a very short period before showing wayward fluctuations and then rapidly went down
to 661 on 12th September, 2012. The BDI closed at 699 on 24th December, 2012.
The Capesize market, which is strongly correlated to iron ore shipments was around
USD 24000 in the beginning of the year and fell below USD 3000 in August 2012. It,
however, started to pick up thereafter. Likewise the Panamax segment also
remained depressed. The BPI, which stood at 1599 on 4th January 2012, fell to 418
on 27th September 2012 reflecting a fall of 74%. The downward trend was mainly
attributable to global economic slowdown, low level of global grain trade due to
weather related impact of low grain production and low demand for commodities.
Lower manufacturing activity and declined infrastructural growth led to low demand
for power, coal and iron ore in China. All these factors coupled with glut of tonnage
supply are mainly responsible for the weak dry cargo freight market. So intense was
the supply of vessels that dry bulk fleet grew by almost 70 million deadweight
(BIMCO). Market analysts predict that GDP will grow stronger in 2013 and should be
a positive factor for shipping markets.
8.10 The Baltic Dirty Tanker Index (BDTI) and Baltic Clean Tanker Index (BCTI)
which track rates for ocean shipment of dirty and clean liquid cargoes opened the
year at 782 and 745 respectively on 4th January, 2012. Both the indices reflected
wayward fluctuations throughout the year before closing at 764 (BDTI) and 756
(BCTI) on 24th December, 2012. The liquid cargo market was not as bad as dry
cargo market. The tonnage growth in tankers was moderate. However, subdued
liquid cargo market was mainly attributable to low demand from the US & China.
According to analysts, the future of liquid market would mainly depend on USA
where domestic production of oil and natural gas is expected to go up immensely.
59
CHAPTER-IX
TRANSPORT RESEARCH
9.1
The Transport Research Wing (TRW) renders research and data support to
the Ministry of Shipping for policy planning and formulation. TRW is the nodal
agency for collection, compilation and dissemination of information and data on
Ports, Shipping, Ship-building & Ship-repairing industry and Inland Water Transport
(IWT) at the national level. Apart from collection, compilation and publication of
transport data pertaining to ports, shipping and inland waterways, it also scrutinizes
and validates data received from various primary/ secondary sources for consistency
and comparability. TRW is associated with review meetings on policy issues
pertaining to Port and IWT Sectors.
9.2
Apart from publications, Transport Research Wing coordinates with various
other organizations like Planning Commission, Central Statistical Organization,
National Sample Survey Organization and State Governments etc. Transport
Research Wing is presently the nodal wing for Working Group on Ports & Shipping
under Secretary (Shipping) for National Transport Development Committee set up by
the Planning Commission.
9.3 The following publications have been released during the year (upto 31 st
December, 2012):
(i) Basic port Statistics of India 2010-11
(ii) Half-Yearly update on Indian Port Sector for period ending 31 st March, 2012
and 30th September 2012
(iii) Indian Shipping Statistics 2011
9.4
The work relating to the preparation of publications Basic Port Statistics of
India 2011-12, Indian Shipping Statistics 2012, Statistics of Indias Shipbuilding & Ship-repairing Industry 2011-12 and Statistics of Inland Water Transport
2011-12 is under progress.
9.5
The publications are likely to be released during the remaining part of the year
as per the following schedule:(i) Statistics of Inland Water Transport 2011-12 by end of January,2013
(ii) Statistics of Indias Ship-building & Ship-repairing Industry 2011-12 by end of
February,2013
(iii) Basic port Statistics of India 2011-12 by end of March,2013
9.6
The cargo carried by Indian overseas fleet during 2011-12 is given at
Annexure-V.
60
CHAPTER-X
INTERNATIONAL COOPERATION
Multilateral Organizations/Agreements:
10.1 India has been an active participant at the International Maritime Organization
(IMO) and is a Member of its Council. Out of 55 Conventions/Protocols of
International Maritime Organisation (IMO), India has already ratified/acceded/signed
33 Conventions/Protocols. Out of the remaining 22 Protocols/Conventions, India has
identified 7 for ratification/accession, including Anti Fouling System Convention;
Maritime Labour Convention 2006; Bunker Convention 2001; Protocol on
Preparedness Response and Cooperation to Pollution incidents by Hazardous and
Noxious Substances 2000; Convention for the Control and Management of Ships
Ballast Water and Sediments 2011; Convention for Control of Harmful Anti-Fouling
System (AFS) on Ships 2001; The Hong Kong Convention for Safe and
Environmentally Sound Recycling of Ships 2009. Necessary action for
accession/ratification of the above mentioned Conventions is under different stages
of the approval process in the Ministry.
10.2 India has been contributing significantly to other multilateral
organizations/agreements like Bay of Bengal Initiative for Multi-Sectoral Technical
and Economic Cooperation (BIMSTEC); India, Brazil and South Africa (IBSA); Indian
Ocean Rim Association for Regional Cooperation (IOR-ARC); International North
South Transport Corridor (INSTC), etc.
Bilateral/Trilateral Merchant/Maritime Shipping Agreements:
10.3 India has entered into bilateral/trilateral Merchant/Maritime Shipping

Agreements with Austria, Sri Lanka, The Netherlands, South Africa, Poland,
Pakistan, Denmark, Finland, Federal Republic of Germany, USA, Turkey, Singapore,
Russian Federation, Iran, China, Morocco, IBSA (India, Brazil and South Africa) and
similar Agreements with 15 other countries are under negotiations. Bilateral and
Multilateral Maritime agreements with other countries would be improved upon for
safeguarding and promoting Indian Maritime Interests. The Indian Shipyards will be
encouraged to import technology and designs for new construction through joint
venture or technical collaboration.
10.4 With some countries like Iran, Greece, Mauritius, Norway and Japan, Joint
Working Group/Shipping Forum have been formed. India plans to use these
agreements/working groups/shipping forum to strengthen Indian Shipping/Ship
building industry and take forward cooperation with various countries in the maritime
sector.
10.5 A Memorandum of Understanding (MoU) between the Federal Ministry of
Transport, Innovation and Technology of the Republic of Austria and the Ministry of
Shipping of the Republic of India on Technology Cooperation in the Shipping and
Ports Sectors was signed on 03 October, 2012 in New Delhi. The MoU was signed
by H.E. Mrs. Doris Bures, Federal Minister of Transport, Innovation and Technology
61
of
Austria
and
Shri
G.K.Vasan,
Minister
of
Shipping.
10.6 . Mr. Koji Sekimizu, Secretary General, International Maritime Organization

(IMO), London visited India from 12-16 October, 2012. Mr Sekimizu held discussions
with Minister of Shipping and senior officials of the Ministry of Shipping and other
Government officials on 15 October, 2012. Anti-piracy, Green House Gas (GHG)
Emissions from ships, Training slots for Indian seafarers in foreign ships, Close
coordination between Indian Maritime University (IMU) and World Maritime
University (WMU) were some of the important issues discussed in the meeting.
10.7 Mr. Olaf Scholz, First Mayor (Chief Minister) of Hamburg, Federal Republic of
Germany called on the Minister of Shipping, Shri G.K.Vasan on 16 October, 2012 in
New Delhi. During the meeting, discussion was held on areas of cooperation
between the two countries and German expertise in areas such as decongestion of
ports; information technology for the movement of container traffic and maritime
training were sought.
Unilateral Agreements for recognition of training and certificates of Indian

seafarers.
10.8 India has unilateral agreements with St. Vincent and the Grenadines,
Dominica, Georgia, Vanuatu, Liberia, Marshal Islands, Bahamas, Qatar, Barbados,
Netherlands, Maldives, Isle of Man, Malta, Norway, Denmark, Ireland, Ghana, Latvia,
Antigua and Barbuda, Vietnam and Belgium for recognition of training and
certificates of Indian Seafarers.
62
CHAPTER-XI
ADMINISTRATION AND FINANCE
(A)
ADMINISTRATION
11.1
Administration Wing of the Ministry of Shipping is headed by a Joint
Secretary (Admn.) who is assisted by a Director (Admn.) and Under Secretary
(Admn.) who supervise the work of Establishment, General Administration and Cash
Sections. The Establishment-I Section is entrusted with the service and
administrative matters of 301 regular employees (Group A, B, C) of this Ministry.
Efforts are made to manage the various Cadres as per the instructions and
guidelines issued by the Department of Personnel and Training, Union Public
Service Commission, Ministry of Finance and Department of Administrative Reforms
and Public Grievances, etc.
11.2
Special efforts have been made by the Ministry to ensure compliance
of the orders issued from time to time regarding reservation for SC/ST/OBCs to fill up
vacant posts in Chartering Wing and Development Wing of this Ministry. Information
with regard to the total number of Government Servants, separately for Secretariat
and Non-Secretariat side (Group wise) and representation of SC/ST employees in
the Ministry is given in Annexure VI.
11.3
The Ministry of Shipping is one of the few Ministries which has
successfully provided full and accurate data to DoP&T to develop and implement the
Phase-I of the web based cadre management system, being managed through CMS
Ltd. which is one of the targets in the RFD of DoP&T.
11.4
In the Ministry of Shipping various welfare measures in respect of
welfare of women employees of the Ministry were undertaken. A complaint
Committee on Sexual Harassment has been set up to look after the grievances of
women employees relating to sexual/gender based harassment. To oversee the
implementation of the Prohibition of Smoking in Public Places Rules, 2008 in the
Central Govt. offices/Buildings, the Ministry of Shipping has constituted a Committee
for surprise checking in the Ministry.
11.5
Important Days of National Importance viz. Anti-Terrorism Day,
Communal Harmony Day, Sadbhavana Diwas, Vigilance Awareness Week, Red
Cross Day, Red Cross Raffle Draw, etc. were observed and Pledge taken by the
employees of the Ministry of Shipping. Contributions were also raised and collected
towards Flag Day. The essay competitions both in Hindi and English were
conducted during Harmony Communal Week /Vigilance Awareness Week. The
participants were suitably rewarded for participating in these events.
63
Setting up of Information & Facilitation Counter

11.6 In order to create awareness and give information to citizens, some important
material on various subjects, which is useful for general public, is provided at
Information & Facilitation Counter (IFC) set up near the Reception which the general
public can avail of. During the year all the Ports, Attached Offices and Public Sector
Undertakings under the administrative control of this Ministry have also set up similar
IFCs at their offices under the supervision of Senior Technical Director NIC of this
Department. The computerized system developed by NIC is operational in
Information & Facilitation Counter.
Formation of Citizens charter
11.7
In order to give up-to-date information, promote accountability and
improve the Public vision of this Ministry including the attached/subordinate offices
and public sector undertaking under the administrative control of this Ministry, a
Citizens/Clients charter 2012-2013 has been prepared in the light of instructions of
Cabinet Secretariat and has been uploaded on the website of this Ministry.
Departmental Record Room

11.8 The Departmental Record Room (DRR) is headed by the Chief Record Officer
and a Departmental Record Officer, along with a record in charge, has been
positioned, to assist in the management of records. The Departmental Record
Room has approximately 11100 files in custody.
The grievance redressal set-up
11.9 In the Ministry, the set-up is headed by the Joint Secretary (Ports) as
Director of Grievances. Prompt action is taken on the grievance cases by referring
them to the concerned administrative Units, Port trusts, PSU etc. for early redressal.
Periodical review is carried out by the Director of Grievances for early redressal of
the pending grievances.
11.10 During the period, grievances received from Department of Administrative,
Directorate of Public Grievances, P&PW and individuals were promptly attended to
and referred to the officers concerned for time-bound redressal. Out of these 118
Grievances have remained pending and are under active consideration at the end of
the year.
CPGRAMS
11.11 In consonance with the thrust on transparency in the functioning of the
government, a cost effective monitoring software, namely Centralized Public
Grievances Redressal and Monitoring System (CPGRAMS), for monitoring and
disposal of Public Grievances cases has been functioning in this Department. It has
been implemented in almost all the Attached/Subordinate offices of this Ministry to
closely monitor and evaluate the quality of disposal of Public Grievances regularly
64
and minimize the delays in decision making strategy. NIC has implemented
CPGRAMS.
DMIS
11.12 Document Management Information System (DMIS) has been installed and
most of the staff and officers have been trained by officials of NIC. For effective
utilization of DMIS, all the computers in the Ministry are connected by Local Area
Network (LAN). All Major Port Trusts, Attached/ subordinate offices and Public
Sector Undertaking of the Ministry have also been requested to install this system
with the support of NIC in their organization.
Website
11.13 Website (http://shipmin.nic.in) of the Ministry is operational. The website has
been updated and redesigned from time to time.
B.
FINANCE
Accounts and Budget

11.14 The Accounts and Budget wings of the Ministry of Shipping are functioning
under the Pr. Chief Controller of Accounts. The office of the Pr. Chief Controller of
Accounts is inter-alia responsible for making all authorized payments of the Ministry,
Compilation of Monthly and Annual Accounts, Conduct of internal audit of all the
units under the Ministry to ensure compliance of the prescribed Rules, Rendering
Technical advice to the Ministry on Financial and Accounting matters, cash
management and coordination with the Controller General of Accounts, C&AG,
Finance Ministry and other related agencies.
11.15 The Principal Chief controller of Accounts organization comprises of Principal
Chief Controller of Accounts, one Controller of Accounts, one Deputy Controller of
Accounts, Six Pay & Accounts Officers of whom 3 are located in Delhi, 1 in Kolkata,
1 in Mumbai and 1 in Noida. The Budget Section consists of one Under Secretary
(Budget). The Principal Chief Controller of Accounts office is primarily responsible
for the following major tasks:(i)
Payments:
Making Sanctioned Payments on behalf of the Ministry after conducting precheck of bills as per approved Budget.
Release of authorization to other Ministries to incur the expenditure on behalf
of the Department.
(ii)
Receipts:
Budgeting, accounting and reconciliation of the receipts of Ministry of
Shipping.
65
Monitoring the repayment of loans and interest thereof received from State
Governments and other PSUs, the payment on account of Grants-in-Aid,
Loan, Subsidy and equity to Public Sector Undertakings, Port Trusts and
International Maritime Organization.
(iii)
Submission of Accounts and Reports:
Preparation of monthly accounts, Finance Accounts Annual Appropriation

Accounts, and Statements of Central Transactions and their submission to the
Controller General of Accounts, Ministry of Finance, Department of
Expenditure, Government of India.
Monitoring of Internal Extra Budget Resources (IEBR) and its submission to
office of the CGA.
Monitoring and submission of mandatory information as per Fiscal
Responsibility and Budget Management (FRBM) Act and Rules.
Preparation of Management Information Reports based on accounting, budget
& audit data for submission to various authorities.
Preparation of financial statistics on monthly basis regarding receipts and
expenditure for upload on Ministrys website.
(iv)
Budget:
Preparation and submission of Annual Budget Estimates and Revised
Estimates, re-appropriation of funds of the, Ministry of Shipping, Road
Transport and Highways. Coordination with Ministry of Finance and other
Departments in all the budget matters.
Monitoring/disposal of all the Audit Paras and Observations made by the
C&AG of India (civil and commercial) and coordination with Monitoring Cell of
the Department of Expenditure, M/o Finance for the Action Taken Note.
(v)
Internal Audit
The Internal Audit Wing in the Pr. CCA organization of Ministry of Shipping
has been established as an effective tool for identifying the systematic
errors/lapses in the functioning of various departments in the Ministry and
advising the management for necessary action/rectification. This has proved
to be an immense management tool to bring about objectivity and financial
property in day to day functioning and by bringing greater sensitivity for
financial prudence.
The Officers of the Internal Audit Wing as well as offices posted in other
section have been imparted various training related to Internal Audit in the
past. This year three AAOs have been imparted training in Risk Based Audit.
Consequent upon the effective utilization of Internal Audit mechanism during
the past few years by the Pr CCAs organization, there has been a significant
improvement in maintenance of Accounts in all offices of the Ministry of
Shipping.
Audit paras which involve major irregularities/deficiencies are brought to the
notice of Head of Departments and matter perused for settlement on paras
and review meetings are also arranged by Pr CCA office to take stock of the
outstanding paras. The important audit observations pertaining to the Ministry
of Shipping received from the Ministry of Finance are given at Annexure-VII.
66
Computerisation of Accounts:
11.16 With a view to eliminate the delay in compilation of Accounts and to provide
the information on expenditure accounts, on timely, accurate basis the office of Pr.
Chief Controller of Accounts at present is implementing various
software
packages like COMPACT, CONTACT, CPFM, E-Lekha etc, described below:
COMPACT: Is a comprehensive software package for Expenditure Accounts
covering major accounting functions i.e. pre-check, GPF, Budget, Pension and
Compilation.
CPFM:
Is a contributory Pension Fund Management System for capturing the
pension contribution of Employees who joined Govt. Service on or after 01 st January
2004.
E-Lekha: Is a web based application for generating daily/monthly of MIS of
Accounting information. All the PAOs are uploading data daily on E-lekha. Pr.
Account office is submitting the monthly account through E-lekha.
E-Revision of Pension: O/o Controller General of Accounts assigned the work of erevision of pension to all PAOs to implement the VI Pay Commission Report. In
Ministry of Shipping there were 2596 pension cases which have to be revised. Out of
them 1800 have been revised so far.
E-Payment: A new Pilot Project of payment Government Departments through
electronic media has been initiated by office of the CGA to bring out higher
operational efficiencies, faster realization of funds and prompt reconciliation of
payment and receipts. The E-payment system has now been implemented in all
PAOs of Ministry of Shipping from April 2012 and volume of e-payment has been
going to increase day by day. So far Rs. 521.45 cr. have been paid through Epayment.
Departmental Accounting Organization - Accounting Set Up

11.17 The accounting division of the Ministry of Shipping is under the overall charge
of the Pr. Chief Controller of Accounts who inter-alia is responsible for the payments,
accounting, budget, internal-audit and cash management functions of the Ministry of
Shipping. The organisation comprises the Principal Chief Controller of Accounts, one
Under Secretary (Budget), One Controller of Accounts, one Deputy Controller of
Accounts, Two Assistant Controller of Accounts, Six Pay and Accounts Officers, One
Principal Accounts Officer and other officials manning offices located at Delhi,
Kolkata, Mumbai and Noida. The cash branches of the Secretariat are also working
under the overall supervision of the Principal Chief Controller of Accounts.
11.18 The annual accounts of the Ministry of shipping in the shape of the Statement
of Central Transactions, the Appropriation Accounts and the Finance Accounts are
compiled and rendered to the Controller General of Accounts, (Department of
Expenditure), Ministry of Finance. Computer generated monthly expenditure figures
are also furnished to all the divisions of the Ministry to facilitate monitoring of the
67
pace of expenditure on various programmes and schemes. The monthly compilation

of accounts and the receipt and payments are now computerised in phased manner.
11.19 The Budget Division under the Principal Chief Controller of Accounts is
involved with the preparation of the detailed Demands for Grants relating to the
Demands of the Ministry and preparation of the Performance Budget. In addition, it
coordinates with the preparation of the replies of audit observations of the
Comptroller and Auditor General of India, the Public Accounts Committee and the
Inspection report.
11.20 The budget of the Ministry of Shipping is presented to the Parliament in the
form of Demands for Grants.
Grant No. 88 Ministry of Shipping.
11.21 The position of savings/excess in respect of above mentioned Grant No. 88 for
the year 2012-2013 and actual expenditure for the year 2012-13 (upto 31st
December, 2012) has been reflected in Annexure-VIII. The Head-wise Details of
Receipts as per the Statement of Central Transaction (SCT) for the last three years
have been reflected in Annexure-IX and the Details of expenditure for the last three
years have been reflected in Annexure X.
Through an effective network of Pay and Accounts office, the personal claims
of the government employees i.e. Pension, Family Pension, Gratuity,
Provident Fund, CGEGIS and Leave Encashment etc are being settled
promptly.
The internal Audit of the expenditure incurred by the Ministry and its
subordinate offices and the organization receiving Grants-in-aid has been
conducted during the year by this organization.
The Ministry of Shipping is maintaining two funds viz. Depreciation Reserve
Fund and General Reserve Fund for providing certain services required to
develop transportation facilities in the country is at Annexure-XI.
D.
VIGILANCE
11.25 The Vigilance Wing of the Ministry coordinates and supervises the vigilance
activities within the Ministry as well as in respect of the PSUs and autonomous
bodies under its administrative control. The Wing is headed by the Chief Vigilance
Officer (CVO) of the rank of Joint Secretary. He is appointed with the approval of the
Central Vigilance Commission.
11.26 There are 33 attached/subordinate/PSU/autonomous bodies under the
Ministry and each organization has either part-time or full-time CVO. The part-time
CVOs are appointed from amongst the officers of the concerned organization in
consultation/concurrence with the CVC. The full-time posts of CVOs, wherever such
posts exist, are filled-up from officers of organized services through DOP&T.
68
11.27 Special emphasis has been laid on the role of preventive vigilance including
simplification of procedures and use of e-technology etc. Special emphasis was laid
on the strengthening of vigilance machinery in various organizations under the
Ministry of Shipping particularly the Port Trusts. Punitive action has been taken
wherever required in consultation with CVC against the delinquent officials.
11.28 As a result of active monitoring and follow-up, a large number of cases were
finalized during the year.
11.29 During the Vigilance Awareness Week, a pledge to eradicate corruption in all
spheres of life was administered to the staff and officers of the Ministry. An essay
competition was also organized.
11.30 Vigilance activities in various organizations under this Ministry are being
reviewed periodically through various returns and also through interactions with
CVOs/Head of the Organisations.
E.
Right to Information Act-Efforts made by the Ministry of Shipping and
the Organizations under its control to Administer and Implement the provision
of the RTI Act.
Detailed information relating to obligations listed in Section 4 of the RTI

(Publications of Manuals) has been uploaded / hosted in the websites
of the concerned organizations.
For the implementation of the RTI Act, Department of Shipping has

exclusively created a new cell and an Information and Facilitation
Counter (IFC) at the Reception for the convenience of the public who
comes personally.
In the Department of Shipping (Main Sectt.), we have

appointed/designated 18 CAPIOs, 21 CPIOs and 11 Appellate
Authorities based on the Wings, who are in the rank of US, DS/Director
and JS and equivalent respectively. A Transparency Officer of MOS
has also been appointed.
Notifications indicating the appointment of CAPIOs/ CPIOs/ Appellate
Authorities under the Act have been published and uploaded/hosted on
the website of the Ministry of Shipping i.e. www.shipping.nic.in.
Whenever a request is received from the public/citizen by the

CPIO/IFC, the same is passed/transferred to the RTI Cell, where after
the application is registered after ensuring that fee has been deposited,
thereafter the request is sent to the concerned CAPIOs/
CPIOs/Appellate Authorities for ensuring that the desired information is
sent to the applicant within the time stipulated.
Copies of the RTI Act and circulars received from DOPT on RTI are
being circulated promptly to all the organizations for compliance.
Useful guidance material/guidelines are also being supplied to CAPIOs/

CPIOs/ Appellate Authorities.
69
An internal procedure has been established and circulated to all the

concerned CAPIOs/ CPIOs/ Appellate Authorities and all Sections for
guidance, while dealing with the requests/appeals from public seeking
information.
All the useful records are duly maintained.
Registers in the format (F) are being maintained by all Sections
Training on RTI Act has been/is being given to CPIOs of all the
organizations through IIPM, Calcutta, NIPM, Chennai and YASHDA,
Pune and to some through ISTM, Delhi.
During the above period a total of 432 applications were received either
directly or by transferring and handled satisfactorily.
70
CHAPTER XII
OFFICIAL LANGUAGE
12.1
Progressive use of Hindi
In the Ministry, Hindi Section is working as a nodal agency for promotion and
development of Official Language. At present this Section is working under
supervision of Joint Director (Official Language) with the help of an Assistant Director
(Official Language) and other employees. The work of this Section is to help in
implementation of Official Language Act, 1963, Rule 1976 and directions given by
the Department of Official Language in the Ministry and in all offices, undertakings,
corporate and autonomous bodies under the control of the Ministry. Every year
Department of Official Language issues Annual Programme to expedite
implementation of all respective provision in above act/rules, which is circulated
among all sections and officers in the Ministry and all offices, undertakings,
corporate and autonomous bodies under the control of the Ministry. Accordingly a
work plan is made in the Ministry for compliance.
12.2
Implementation of Section 3(3) of Official Language Act.
During this period, in order to ensure 100% implementation of Section 3(3) of

Official Language Act in the Ministry, all documents covered under this section have
been issued in bilingual form.
12.3
Implementation of Rule 5 of Official Language Rules
In order to ensure 100% implementation of Rule 5 of Official Language Rules

in the Ministry, all letters received in Hindi are replied in Hindi.
12.4
Basic correspondence in Hindi
Although there has been a partial increase regarding basic correspondence

with A, B and C regions, this Ministry still has to achieve Official Language targets, in
correspondence, in comparison to the previous years. This section regularly receives
the Quarterly Hindi Progress Report from our regional offices and after reviewing it,
gives guidance to resolve the problems and the difficulties being faced by them.
12.5
Training in Hindi/Hindi Shorthand/Hindi Typing
Keeping in view the directions given by Official Language Department the

Hindi/Hindi Shorthand/Hindi Typing Training is given to all officers/employees in the
Ministry.
71
12.6
Arrangement of Bilingual Mechanical/Electronic Facilities
All computers installed in the Ministry have been provided with bilingual typing
facilities.
12.7
Official Language Inspection and Official Language Implementation
As per directions of Department of Official Language with view to examine the

position of Official Language, inspection of offices, corporate, public undertakings
and autonomous bodies under the control of the Ministry is conducted. During the
inspection a special meeting is held with high level officers of concerned office to
resolve their difficulties on Official Language. During this period 12 offices outside
Delhi have been inspected.
Regular Quarterly Meeting of Official Language Implementation Committee is
being conducted and the status of Hindi Implementation is regularly reviewed in their
meetings.
12.8
Hindi Salahakar Samiti
Hindi Salahakar Samiti has been constituted in the Ministry and The
Committee's next meeting is proposed to be organized in March, 2013.
12.9
Organising Hindi Pakhwara (fortnight) and Hindi Workshops
Hindi Pakhwara was celebrated in the Ministry from 01-09-2011 to 14-092012. During the Pakhwara numbers of competitions were held. In these
competitions, a good number of officers and employees participated. One workshop
was also conducted. Messages of Hon'ble Home Affairs Minister and Secretary,
Shipping were read out on Hindi Day and awards were given by the Secretary to the
winners of competitions held during the fortnight.
12.10 Incentive Schemes
As per guidelines of Department of Official Language to promote progressive
use of Hindi and to encourage basic noting and drafting in Hindi, cash prizes were
given to 01 officer and 04 employees of the Ministry during this year.
12.11 Rajbhasha Shield Yojana
For the year 2011-12, first prize has been given to Mumbai Port Trust, and
Cochin Port Trust; second prize to Directorate General Lighthouses and Lightships,
Jawaharlal Nehru Port Trust, Kandla Port Trust, Mormugao Port Trust and Shipping
Corporation of India Ltd. and third prize to Kolkata Port Trust, Directorate General of
Shipping, Tuticorin Port Trust, Paradip Port Trust and Andaman Lakshadweep
Harbour Works.
12.12 In House Magazine "Nautarni"
Third issue of Ministry's in house magazine "Nautarni" has been published.
72
12.13 Original Book Writing Award Scheme

"Award Scheme for the books written on the subjects relating to Indian ports
and shipping originally in Hindi" and "Award Scheme for book translated from other
languages in Hindi on the subject relating to Indian ports and shipping" have been
instituted.
12.14 All India Official Language Seminars

As per direction of the Ministry, All India Official Language Seminar was
organized at Shipping Corporation of India Ltd., Chennai on 20-21 February, 2012.
12.15 Committee of Parliament on Official Language

First Sub-Committee of the Committee of Parliament on Official Language
inspected some subordinate offices of the Ministry located at Mumbai, Delhi, Kochi
and Kavaratti during November, 2012 to January, 2013.
73
CHAPTER-XIII
Extracts from Results- Framework Document (RFD) for Ministry of
Shipping (2011-12)
(Section-1 : Vision, Mission, Objectives and Functions; Performance
Evaluation Report containing corresponding achievements and
composite score and Section 6 outcome/impact of
Department/Ministry)
Section 1 :
Vision, Mission, Objectives and Functions
Vision
To ensure vibrant, efficient and safe ports and shipping services, shipping and
shipbuilding industry, promote development of the Major Ports to attain global
standards and promote increased inland water transportation in India.
Mission
To enhance capacity & efficiency of Major Ports, to cater to increase in international
trade, increase Indias share in global shipping, promote and strengthen the Indian
shipping and shipbuilding industry, ensure safety of maritime shipping and national
waterways operations, achieve optimum utilization of Inland waterways potential in
the Country, and strengthen maritime administration training and education.
Objectives
1. Capacity Augmentation of major Ports
2. Monitoring the Implementation of National Maritime Development Programme
3. Improve Efficiency of Ports
4. Maintain/ improve draught of channels for berthing of ships
5. Improve performance of PSUs/Autonomous Organizations
6. Increase tonnage under Indian flag
7. Promotion of Shipbuilding Industry
8. Improvement of navigational aids
9. Increase in skilled manpower
10. Updating regulatory framework
11. Promotion of Inland Water Transport (IWT) Sector
12. Implementation of Tsunami Rehabilitation Programme (TRP) Works of ALHW
13. Monitoring progress of PPP Projects of Port sector performance
74
Functions
1. Administration of the Indian Ports Act, 1908, (15 of 1908) and the Major Port
Trusts Act, 1963 (38 of 1963) and ports declared as major ports
2. Shipping and navigation including carriage of passengers and goods on
inland waterways declared by Parliament by law to be national waterways as
regards mechanically propelled vessels, the rule of the road on such
waterways.
3. Ship-building and ship-repair industry.
4. Fishing vessels industry.
5. Floating craft industry.
6. Inland waterways and traffic thereon.
7. Organisation and maintenance of mainland islands and inter-island shipping
services.
8. Legislation relating to shipping and navigation on inland waterways as regards
mechanically propelled vessels and the carriage of passengers and goods on
inland waterways.
9. Legislation relating to and coordination of the development of minor and major
ports.
10. Administration of the Dock Workers (Regulation of Employment) Act, 1948 (9
of 1948) and the Schemes framed thereunder other than the Dock Workers
(Safety, Health and Welfare) Scheme, 1961.
11. Maritime shipping and navigation; provision of education and training for the
mercantile marine.
12. Lighthouses and lightships.
13. Monitoring and combating of oil pollution in the port areas.
14. Formulation of the privatization policy in the infrastructure areas of ports,
shipping and inland waterways.
15. The Development of township of Gandhidham.
16. Prevention and control of pollution arising from ships, shipwrecks and
abandoned ships in the sea, including the port areas.
17. Enactment and administration of legislation related to prevention, control and
combating of pollution arising from ships.
18. To make shipping arrangements for and on behalf of the Government of
India/Public Sector Undertakings/State Governments/State Government
Public Sector Undertakings and autonomous bodies in respect of import of
cargo on Free on Board/Free along Site and export on Cost and Freight/Cost
Insurance and Freight basis.
19. Planning of Inland Water Transport.
75
Performance Evaluation Report

(Inclusive of contents of Section 2 : Inter-se Priorities among Key Objectives, Success indicators and Targets and corresponding
achievements and composite score in Ministry of Shipping RFD - 2011-12. Composite score communicated by Performance
Management Division vide their D.O. No. Secy(PM)/Genl/2013 dated 22.01.2013)
Sl.
No.
Objective
Wei
-ght
Actions
Success
Indicator
Unit
Weight
Target/Criteria Value
Excell- Very
Good Fair Poor
ent
Good
100%
90%
80%
70% 60%
1.
Capacity
Augmentatio
n of major
Ports
20
[1.1] (a)Increase in
total Capacity in
Major
Ports
including capacity
Addition during the
year
[1.2]
(b)Capacity
Augmentation
through PPPs
[1.3]
(c)Capacity
Augmentation
through PPPs
[1.1.1]
Total
capacity
achieved
by
the end of
financial year
MMT
9.0
685
680
675
670
665
690
100.0
9.0
[1.2.1]
Final
approval
for
PPP Projects
[1.3.1]
Additional
capacity due
to these PPP
projects
[1.4.1]
Final
approval
for
projects
of
ports through
internal
resources
[1.5.1]
Additional
capacity due
to
these
projects
No. of
Project
s
Million
MT
4.0
11
10
0.0
0.0
4.0
40
35
30
25
20
79.32
100.0
4.0
No. of
Project
s
1.0
100.0
1.0
MMT
1.0
100.0
1.0
[1.4]
(d)Port
Development
Projects
with
Internal Resources
[1.5]
(e)Port
Development
Projects
with
Internal Resources
76
Achieve
-ment
Performance
Raw
WeighScore ted
Score
2.
Monitoring the 10
Implementatio
n of National
Maritime
Development
Programme
[1.6]
(f)
Identification of site
for one out of the
two new major
Ports
[2.1] a)Construction
/upgradation
of
Berths
[2.2]
(b)Mechanization of
berths
[2.3] c)Dredging of
channels
[2.4]
d)rail-road
connectivity
projects
3.
Improve
Efficiency of
Ports
10
[2.5] e)Creation of
back up facilities in
ports/
Shipping
sector
projects
including
Inland
Waterways/ Others
[3.1]
(a)Average
Turnaround
time
attributable to Port
account
[3.2]
(b)Average
Pre-berthing
detention
time
account.
[3.3] (c) Increase in
Average Output per
[1.6.1] Timebound
identification
Date
1.0
31/12/2
011
31/01/2
012
29/02/
2012
15/0
3/20
12
31/03/
2012
25/11/201
1
100.0
1.0
[2.1.1] Projects
completed
during the fin.
Year
[2.2.1] Projects
completed
during the fin.
Year
[2.3.1] Projects
completed
during the fin.
Year
[2.4.1] Projects
completed
during the fin.
Year
[2.5.1] Projects
completed
during the fin.
Year
NOs.
2.0
100.0
2.0
NOs.
2.0
100.0
2.0
NOs.
2.0
70.0
1.4
NOs.
2.0
70.0
1.4
NOs.
2.0
10
65.0
1.3
[3.1.1]
Reduction
no. of days
Days
2.0
0.157
0.131
0.05
0.01
0.1
86.17
1.72
[3.2.1]
Reduction in
no. of hours
Hours
2.0
0.72
0.6
0.24
0.1
0.75
100.0
2.0
[3.3.1]
Achievement
Tonne
s
2.0
11000
10750
10600
1050
0
10400
11198
100.0
2.0
in
77
4.
Maintain/
improve
draught
of
channels for
berthing
of
ships
Ship per berth per

day
[3.4] (d)Average no.
of moves per crane
hour for container
handling
[3.5]
(e)
Mechanization
of
ports
[4.1] (a) Deepening
of channels through
Capital
dredging
works awarded in
Cochin Port
[4.2] (b) Deepening
of channels through
Capital
dredging
works awarded in
Mumbai
PortOffshore Container
terminal
[4.3] (c) Deepening
of channels through
Capital
dredging
works awarded in
Vizag. Port- Phase
II dredging
[4.4] (d) Deepening
of channels through
Capital
dredging
works awarded in
Tuticorin Port
[4.5]
(e)
Govt.
budgetary support
for Deepening of
Channels through
Capital Dredging
by
end
of
financial year
[3.4.1]
Achievement
by
end
of
financial year
[3.5.1] No. of
projects taken
up
[4.1.1] % of
total
work
completed by
end of fin.
Year
[4.2.1] % of
total
work
completed by
end of fin.
Year
Nos
2.0
23.5
23
22.5
22
21.5
23.80
100.0
2.0
Nos
2.0
100.0
2.0
1.0
100
95
90
85
80
95
90.0
0.9
1.0
75
70
60
50
40
60
80.0
0.8
[4.3.1] % of
total
work
completed by
end of fin.
Year
1.0
100
90
80
70
60
100
100.0
1.0
[4.4.1] % of
total
work
completed by
end of fin.
Year
[4.5.1]
Sanction and
release
of
Government
Budgetary
Support (GBS)
1.0
95
90
80
70
60
95
100.0
1.0
1.99
95
90
75
65
60
0.0
0.0
78
5.
6.
7.
Improve
performance
of
PSUs/Autono
mous
Organization
s
Increase
tonnage
under Indian
flag
Promotion of
Shipbuild-ing
Industry
[5.1] (a) Approval of

proposals
and
facilitating
PSUs/
Autonomous
Organizations
in
improving
their
performance
[5.2] (b) Fulfillment
of
Ministrys
commitment
for
PSUs/ autonomous
organizations
[6.1] (a) Strategy
Plan for Increase in
share of Indian
ships to overall
trade
[6.2]
(b)Strategy
Plan for Increase in
share of Indian
ships to overall
trade
[6.3] (c) Increase in
tonnage
under
Indian ships
[7.1] a) Release of
subsidy to complete
cases
received
upto
December,2011
[7.2] b) Strategy for
for
Capital
Dredging
as
per
Revised
Estimate (RE)
[5.1.1] Grant of
approvals as
per MOUs with
3.0
100
90
80
70
[5.2.1]
Corporatizatio
n of JNPT
Date
3.0
31/01/2
012
15/02/2
012
15/03/
2012
31/0
3/20
12
[6.1.1]
Committee of
Secretaries
(CoS) decision
Date
1.0
30/09/2
011
30/11/2
011
31/01/
2012
29/0
2/20
12
[6.2.1]
Submission of
Cabinet note
Date
1.0
31/12/2
011
31/01/2
012
29/02/
2012
[6.3.1]
Achieve-ment
of
Indian
tonnage
by
end
of
financial year
[7.1.1]
Percentage of
cases in which
subsidy
released
[7.2.1]
Million
GT
3.0
10.8
10.6
2.01
90
0.99
31/01/2
Date
79
60
80
80.0
2.4
N/A
N/A
31/03/
2012
N/A
N/A
15/0
3/20
12
31/03/
2012
N/A
N/A
10.2
10
9.8
11.03
100.0
3.0
80
70
60
50
90
100.0
2.01
15/02/2
29/02/
15/0
31/03/
N/A
N/A
promotion
shipbuilding
industry
8.
Improvement
of
navigational
aids
of
[8.1]
(a)Commissioning
of VTS Kutch
[8.2] (b) Setting uo
of AIS National
Network
9.
Increase in
skilled
manpower
[9.1]
(a)
Strengthening
of
Infrastructure
at
Indian
Maritime
University
[9.2] (b) Increase in
training berths on
ships to facilitate
Certificate
of
Competency (CoC)
for more officers
10.
Updating
regulatory
framework
[10.1] Ratification of
International
conventions
11.
Promotion of
Inland Water
Transport
(IWT) Sector
10
[11.1]
(a)
Construction of IWT
Terminal at GR
Jetty - 2 Kolkata
Submission of
Cabinet note
on
strategy
approval
for
promotion of
shipbuilding
industry
[8.1.1]
Percentage of
work
completed
[8.2.1]
Physical
progress w.r.t.
contract
[9.1.1]
Plan
Expenditure
[9.2.1] Issue of
CoC to entry
level
Engineers/Nau
tical
officers
after
sea
training
[10.1.1]
Submission of
Cabinet notes
to
cabinet
Sectt.
[11.1.1]
Construction
of terminal
012
012
2012
3/20
12
2012
3.0
100
90
80
75
70
100
100.0
3.0
2.0
40
30
30
25
20
35
95.0
1.9
Rs in
Crores
2.0
40
35
30
25
20
30
80.0
1.6
Nos
2.0
3400
3300
3200
3100
3000
6591
100.0
2.0
No.
3.0
80.0
2.4
1.0
90
80
70
60
85
95.0
0.95
80
50
[11.2] (b) Capital

dredging in KochiKottapuram sector
of NW-3
[11.2.1]
Construction
of terminal
1.0
90
80
70
60
50
90
100.0
1.0
[11.3]
(c)
Construction of IWT
terminal
at
Allapuzha on NW-3
[11.4] (d) Increase
in
cargo
transportation
on
National waterways
by March 2012
[11.3.1]
Installation
1.0
25
20
15
10
20
90.0
0.9
[11.4.1]
Increase
in
Achieve-ment
in
cargo
transporta-tion
over previous
year
[11.5.1] NW-1
HaldiaFarakka 2.5M
1.4
1.3
63.0
0.88
Days
0.4
330
320
310
300
290
330
100.0
0.4
[11.6.1]
FarakkaGhazipur-2M
Days
0.4
300
290
280
270
260
280
80.0
0.32
[11.7.1]
GhazipurAllahabad1.5M
Days
0.4
180
170
160
150
140
170
90.0
0.36
[11.8.1] NW-2
DhubriNeamati: 2.5
M
Days
0.4
330
320
310
300
290
330
100.0
0.4
[11.5]
(e)
Maintenance
of
Least
Available
Depth (LAD) in
National
Waterways
[11.6]
(f)
Maintenance
of
Least
Available
Depth (LAD) in
National
Waterways
[11.7]
(g)
Maintenance
of
Least
Available
Depth (LAD) in
National
Waterways
[11.8]
(h)
Maintenance
of
Least
Available
Depth (LAD) in
81
National
Waterways
[11.9]
(i)
Maintenance
of
Least
Available
Depth (LAD) in
National
Waterways
[11.10]
(j)
Maintenance
of
Least
Available
Depth (LAD) in
National
Waterways
[11.11]
(k)
Maintenance
of
Least
Available
Depth (LAD) in
National
[11.12]
(l)
Maintenance
of
Least
Available
Depth (LAD) in
National
Waterways
[11.13]
(m)
Maintenance
of
Least
Available
Depth (LAD) in
National
Waterways
[11.14]
(o)
Development
of
IWT sector in North
East
12.
Implementati
on
of
[12.1] (a) Provision

of
funds
for
[11.9.1]
NematiDibrugarh - 2
M
Days
0.4
330
320
310
300
290
330
100.0
0.4
[11.10.1]
DibrugarhSadiya 1.5M
Days
0.4
180
170
160
150
140
180
100.0
0.4
[11.11.1] NW3 Champakara

&
Udyogmandal
canals 2M
[11.12.1]
KottapuramCherai 1.5M
Days
0.4
330
320
310
300
290
330
100.0
0.4
Days
0.4
330
320
310
300
290
330
100.0
0.4
[11.13.1]
CheraiAlappuzha-2M
and
AlappuzhaKollam 1.2M
[11.14.1]
Identification
of projects in
North Eastern
Region
[12.1.1]
sanction and
Days
0.4
330
320
310
300
290
330
100.0
0.4
Date
2.0
30/09/2
011
30/11/2
011
31/01/
2012
29/0
2/20
12
31/03/
2012
31/10/201
1
94.92
1.9
1.0
100
90
80
70
65
100
100.0
1.0
82
Tsunami
Rehabilitatio
n
Programme
(TRP) Works
of ALHW
13.
Monitoring
progress of
PPP Projects
of Port sector
performance
Efficient
Functioning
of the RFD
System
Improving
Internal
Efficiency /
Responsiven
ess / Service
delivery
of
Ministry
/
Department
10
Tsunami
Rehabilitation
Programme works
[12.2] (b) Review
progress of funds
utilization
for
Tsunami
Rehabilitation
Programme works
[13.1]
(a)
Submission
of
information
on
review of progress
of
the
Cabinet
Secretariat/
Committee
on
Infrastructure
or
Consultative Group
in
Planning
Commission
Timely submission
of
Draft
for
Approval
Timely submission
of Results
release
of
GBS funds for
TRP
[12.2.1] Timely
Quarterly
review
Implementation
Sevottam
of
Ensure compliance
Nos
1.0
100.0
1.0
[13.1.1]
Quarterly
Reviewing of
Projects
through
meetings with
Port officials
No
1.0
100.0
1.0
On-time
submission
Date
2.00
07/03/2
011
08/03/2
011
09/03/
2011
11/03/
2011
04/03/201
1
100.0
2.0
On-time
submission
Date
1.00
01/05/2
012
03/05/2
012
04/05/
2012
06/05/
2012
30/04/201
2
100.0
1.0
Resubmission
of revised draft
of Citizens /
Clients
Charter
Independent
Audit
of
Implementatio
n of Grievance
Redress
Mechanism
No. of items
Date
2.00
16/01/2
012
18/01/2
012
20/01/
2012
10/0
3/20
11
05/0
5/20
12
23/0
1/20
12
N/A
N/A
2.00
100
90
80
70
60
0.0
0.0
No.
2.00
16
15
14
13
12
12
60.0
1.2
83
25/01/
2012
with Section 4(1)

(b) of the RTI Act,
2005
Identify
potential
areas of corruption
related
to
departmental
activities
and
develop an action
plan to mitigate
them
Develop an action
plan to implement
ISO
9001
certification
*
Ensuring
compli-ance
to
the
Financial
Accountability
Frame-work
Timely submission
of ATNS on Audit
Paras of C&AG
Timely submission
of ATRs to the PAC
Sectt.
on
PAC
Reports.
on
which
information is
uploaded
by
February 10,
2012
Finalize
an
action plan to
mitigate
potential areas
of corruption.
Finalize
an
action plan to
implement ISO
9001
certification
Percentage of
ATNS
submitted
within
due
date
(4
months) from
date
of
presentation of
Report
to
Parliament by
CAG
during
the year.
Percentge of
ATRs
submitted
within
due
date
(6
months) from
date
of
presentation of
Date
2.00
26/03/2
012
27/03/2
012
28/03/
2012
29/0
3/20
12
30/03/
2012
26/03/201
2
100.0
2.0
Date
2.00
16/04/2
012
17/04/2
012
18/04/
2012
19/0
4/20
12
20/04/
2012
26/03/201
2
100.0
2.0
0.50
100
90
80
70
60
0.0
0.0
0.50
100
90
80
70
60
100
100.0
0.5
84
Report
to
Parliament by
PAC
during
the year.
Early disposal of
pending ATNs on
Audit
Paras
of
C&AG
Reports
presented
to
Parliament before
31.3.2011.
Early disposal of
pending ATRs on
PAC
Reports
presented
to
Parliament before
31.3.2011
Percentage of
outstanding
ATNs
disposed
off
during
the
year.
0.50
100
90
80
70
60
10
0.0
0.0
Percentage of
outstanding
ATRs
disposed
off
during
the
year.
0.50
100
90
80
70
60
100
100.0
0.5
* Mandatory Objective(s)
Total Composite Score :
85
77.15
Section 6 : Outcome / Impact of activities of Department / Ministry

Sl. Out Come/ Impact Jointly responsible for
No of
Department/ influencing this outcome /
.
Ministry
impact with the following
department
(s)
/
ministry(ies)
1. Increase in Indian DG Shipping, M/o Finance
tonnage
2. Increase
in M/o Finance and Cochin
Shipbuilding/Ship
Shipyard Ltd.
Repair Activities
Success Indicator
Indian tonnage in
million GT
Turnover of last three
years in respect of
top 3 companies, (Rs.
in crores) (CSL +
ABG + Bharti)
DG Shipping and Indian Issue of CoCs to
Maritime University
entry
level
Engineers/Nautical
Officers
DG Shipping,M/o Law and Number of Cabinet
Other
concerned approvals.
Ministries.
Unit
20092010
20102011
20112012
20122013
20132014
No
in 9.61
milion GT
Repairing 1248.00
240 ,built
81 ships
10.45
11.03
11.20
11.60
1310.00
1375.00
1443.00
1515.00
No.
3200
3300
3450
3600
4.58
4.81
5.05
5.30
650
680
720
770
3.
Increase
in
availability of of
trained manpower
4.
Update
of
No.
0
Regulatory
framework
in
Consonance with
International
Convention
Promotion in IWT Inland waterways Authority Increase in billion ton No.
in 4.36
sector
of India
km
billion
tone KM
Capacity
All Major Ports, Ministry of Total
capacity No
in 616.73
Augmentation
of Shipping,Planning
achieved by end of MMT
major Ports
Commission,
M/o. financial year (in
Finance, M/o. Environment MMT)
& Forest
5.
6.
86
3318
7.
Improved
Efficiency of Ports
All Major Ports, PPP BOT

operators, M/o. Railways,
M/o. Roads Transport &
Highways, NHAI, DCI,
Indian Ports Association
(IPA)
Average Turnaround
time attributable to
Port
accountReduction in days
Average Pre-berthing
detention
time
account- Reduction in
hours
Average no. of moves
per crane hour (nos.)
Mechanization
of
Ports (no. of projects)
Improvement
in
capital
dredging
works/draught
of
channels for berthing
of ships
87
No.
days
of 0
No of Hrs
No.
Hrs
No.
of 22
Qty
Dredged
in MCM
0.131
0.262
0.393
0.60
1.21
1.81
22
23
23.5
24
27.45
19.835
40.00
Annexure-I
(Para -1.5)
MINISTRY OF SHIPPING
I. THE FOLLOWING SUBJECTS WHICH FALL WITHIN LIST 1 OF THE
SEVENTH SCHEDULE TO THE CONSTITUTION OF INDIA
1. Maritime shipping and navigation; provision of education and training for
the mercantile marine.
2. Lighthouses and lightships.
3. Administration of the Indian Ports Act. 1908 (15 of 1908) and Major Port
Trusts Act, 1963 (38 of 1963) and Ports declared as major ports.
4. Shipping and navigation including carriage of passengers and goods on
inland waterways declared by Parliament by law to be national waterways
as regards mechanically propelled vessels, the rule of the roads on such
waterways.
5. Ship-building and ship-repair industry
6. Fishing Vessels Industry
7. Floating Craft Industry
II IN RESPECT O F THE UNION TERRITORIES
8. Inland Waterways and traffic thereon.
III IN RESPECT OF THE UNION TERRITORIES OF THE ANDAMAN AND
NICOBAR ISLANDS AND THE LAKSHADWEEP
9. Organisation and maintenance of mainland islands and inter-island
shipping services.
IV OTHER SUBJECTS WHICH HAVE NOT BEEN INCLUDED UNDER THE
PREVIOUS PARTS
10. Legislation relating to shipping and navigation on inland waterways as
regards mechanically propelled vessels and the carriage of passengers
and goods on inland waterways.
11. Legislation relating to and coordination of the Development of Minor and
Major Ports.
12. Administration of the Dock Workers (Regulation of Employment) Act,
1948 (9 of 1948) and the schemes framed there under other than the
Dock Workers (Safety, Health and Welfare) Scheme 1961.
13. To make shipping arrangements for and on behalf of the Government of
India/Public Sector Undertakings/State Governments/State Government
Public Sector Undertakings and Autonomous Bodies in respect of Import
of Cargo on free on: Board/free along site and export on cost and
freight/cost insurance and freight basis.
14. Planning of Inland Water Transport.
88
15. Formulation of the Privatisation Policy in the Infrastructure Areas of ports,

shipping and inland waterways.
16. The development of township of Gandhidham.
17. Prevention and control of Pollution:
(a)
Prevention and control of pollution arising from ships, shipwrecks
and abandoned ships in the sea, including the port area;
(b)
Enactment and administration of legislation relating to prevention,
control and combating of pollution arising from ships; and
(c)
Monitoring and combating of oil pollution in the port areas.
V.
ATTACHED / SUBORDINATE OFFICES

18. Director General of Shipping
19. Andaman, Lakshadweep Harbour Works
20. Directorate General of Lighthouses and Lightships
21. Minor Ports Survey Organisation
VI
AUTONOMOUS BODIES
22. Tariff Aurhority of Major Ports (TAMP)
23. Port Trusts at Mumbai, Kolkata, Kochi, Kandla, Chennai, Mormugao,
Jawaharlal Nehru (Nhava Sheva), Paradip, Tuticorin, Visakhapatnam and
New Mangalore
24. Dock Labour Boards at Kolkata and Visakhapatnam
25. Inland Waterways Authority of India
26. Seamen's Provident Fund Organisation
27. Indian Maritime University
VII
SOCIETIES/ASSOCIATIONS
28. Seafarer's Welfare Fund Society
29. Indian Port Association.
VIII PUBLIC SECTOR UNDERTAKINGS

30. Shipping Corporation of India
31. Cochin Shipyard Limited
32. Central Inland Water Transport Corporation Limited
33. Dredging Corporation of India
34. Hooghly Dock and Ports Engineers Limited
35. Ennore Port Limited
36. Sethusamundram Corporation Limited.
IX
INTERNATIONAL ASPECTS
37. International Maritime Organisation
X ACTS AND RULES

38. Indian Ports Act 1908 (15 of 1908)
39. The Inland Vessels act, 1917 (1 of 1917).
40. Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948)
89
41. The Merchant Shipping Act, 1958 (44 of 1958).

42. The Major Port Trusts Act, 1963 (38 of 1963)
43. The Seamen's Provident Fund Act, 1966 (4 of 1966).
44. The Inland Waterways Authority of India Act, 1985 (82 of 1985).
45. The Multimodal Transportation of Goods Act, 1993 (28 of 1993).
46. Indian Maritime University, Act, 2008
47. The Coasting Vessels Act, 1838
48. The National Waterways, Allahabad to Haldia stretch of GangaBhagirathi-Hooglhly river Act 1982.
49. The National Waterways, Sadiya Dhubri stretch of River Brahmaputra Act
1988
50. The National Waterways, Kakinada-Puducherry stretch of Canal and
Kaluvelly tank, Bhadrachalam-Rajahmundry stretch of river Godavari and
Wazirabad-Vijaywada stretch of river Krishna Act 2008.
51. The National Waterways, Talcher-Dhamra stretch of rivers, GeonkhaliCharbatia stretch of East Coast canal,Charbatia-Dharma stretch of Matai
river and Mahanadi delta river Act 2008.
52. The National Waterways, Kollam-Kottapuram stretch of West Coast Canal
and Champakara and Udyogmandal Canals Act 1992 (No. 25 of 1992).
53. The Suppression of Unlawful Acts against Safety of Maritime Navigation
and Fixed Platforms on Continental Shelf Act, 2002.
90
Annexure-II
(Para 1.15)
ORGANISATION CHART OF MINISTRY OF SHIPPING

MINISTER (SHIPPING)
MOS (SHIPPING)
SECRETARY (SHIPPING)
Additional Secretary
& Financial Adviser
Joint Secretary
(Shipping & CVO)
Shipping
Development
(DGLL)
Vigilance,
Parliament,
Admn., SCI,
DCI, CSL
Joint Secretary
(Ports)
Port
Development/Imple
mentation, Port
Establishment,
Labour including
employees of Port
Trust & DLHS,
Ennore,
Sethusamudram,
Development
Adviser (Port)
Technical
Advice on
Development
of Ports
Chief
Controller of
Chartering
Arrangement
of bulk & liner
cargo on
behalf of all
Govt.
Min./Deptts.,
&
undertaking.
Adviser
(Transport
Research)
Collection
compilation
and
dissemination
of statistics of
transport
economic/
statistically
analysis of
data for policy
planning of
Ports.
91
Joint Secretary
(Coordination)
O&M
Coordination
Division,
Minor Port,
Official
Language
Joint
Secretary
(SM)
Adviser
Pr. Chief
Controller of
Accounts
TAMP, IWAI,
CIWTC,
HDPEL,
Planning &
Budgeting
Dy.
Financial
Adviser
Marine
Admn.
(DGS)
D
Annexure-III
(Para 8.6)
STATEMENT SHOWING THE QUANTITIES OF CARGOES FOR WHICH SHIPPING ARRANGEMENTS
WERE MADE BY CHARTERING WING, MINISTRY OF SHIPPING FOR THE CALENDER YEAR 2012
( FROM 01-01-2012 TO 31-12-2012)
NOS OF VSLS
NAME OF THE CARGO
IND
FGN
TOTAL
QUANTITIES
( in lakh tons)
IND
FGN
TOTAL
A-IMPORTS
a) DRY CARGO
FERTILIZER
33
10
43
12.19
3.47
15.66
ROCKPHOS
02
02
.80
.80
24
161
185
15.8
118.03
133.83
LIMESTONE
24
24
11.35
11.35
MISC (LINER)
15
15
.37
.37
13
10
23
5.66
4.58
10.24
MOP
04
04
1.38
1.38
LAM COKE
70
226
296
33.65
139.98
173.63
19.38%
80.62%
C.COAL/M.COAL
IRON ORE
TOTAL
PERCENTAGE
b) LIQUID CARGOES
LPG/C.BUTANE
CRUDE OIL
88
24
112
78.20
20.93
99.13
TOTAL
88
24
112
78.20
20.93
99.13
78.89%
21.11%
2.25
.25
2.50
2.50
PERCENTAGE
TOTAL IMPORT (a+b)
PERCENTAGE
B) LINER CARGOES
TOTAL
2.25
.25
PERCENTAGE
90%
10%
114.10
161.16
41.45%
58.55%
C) EXPORT
GC SHEET
FUEL OIL
TOTAL
PERCENTAGE
D) COASTAL MOVEMENT
LIME STONE
PELLETS
TOTAL
PERCENTAGE
E) TIME CHARTER
TOTAL (A+B+C+D+E)
158
250
PERCENTAGE
92
408
275.26
Annexure-IV
(Para 8.6)
STATEMENT SHOWING THE QUANTITIES OF CARGOES FOR WHICH SHIPPING ARRANGEMENTS WERE MADE BY CHARTERING WING, MINISTRY OF SHIPPING FOR THE YEAR 2011 & 2012
(JANUARY-DECEMBER)FOR THE YEAR 2011 (01.01.2011 31.12.2011) FOR THE YEAR 2012 (01.01.2012-31.12.2012)
NAME OF CARGO
NOS. OF VESSELS
QTY. (QTY. IN LAKH MT)
NOS. OF VESSELS
QTY. (QTY. IN LAKH MT)
A- IMPORTS
IND
FGN
TOTAL
IND
FGN
TOTAL
IND
FGN
TOTAL
IND
FGN
TOTAL
38
34
72
12.98
10.81
23.79
33
10
43
12.19
0.47
15.66
.45
.45
.80
.80
180
202
132.62
144.85
24
161
185
15.80
118.83
133.83
3.15
3.15
24
24
11.35
11.35
a) DRY CARGO
FERTILIZER
ROCKPHOS
C.COAL/M.COAL
22
LIMESTONE
12.23
MISC(LINER)
30
32
.04
1.20
1.24
15
15
.37
.37
IRON ORE
11
16
4.84
2.33
7.17
13
10
23
5.66
4.58
10.24
1.10
1.10
04
04
1.38
1.38
MOP
LAM/Boiler COKE
TOTAL
73
260
333
30.09
151.66
181.75
70
226
296
33.65
139.98
173.63
16.55%
83.45%
19.38%
80.62%
PERCENTAGE
b) LIQUID CARGOES
LPG/C.BUTANE
CRUDE OIL
110
12
122
97.35
10.53
107.88
88
24
112
78.20
20.93
99.13
TOTAL
110
12
122
97.35
10.53
107.88
88
24
112
78.20
20.93
99.13
90.23%
9.77%
78.89%
21.11%
B) LINER CARGOES
1.26
.33
1.59
2.25
.25
2.50
TOTAL
1.26
.33
1.59
2.25
.25
2.50
79.24%
20.76%
90%
10%
PERCENTAGE
TOTAL IMPORTS
(a+b)
PERCENTAGE
PERCENTAGE
C) EXPORT
GC SHEET
FUEL OIL/GAS OIL
TOTAL
PERCENTAGE
D) OASTAL
MOVEMENT
LIME STONE
PELLETS
TOTAL
PERCENTAGE
E) TIME CHARTER
TOTAL (A+B+C+D+E)
PERCENTAGE
183
272
455
128.70
162.52
44.20%
55.80%
93
291.22
158
250
408
114.10
161.16
41.45%
58.55%
275.26
Annexure V
(Para 9.6)
India's Overseas Trade During FY 2011-12
(In '000 tonnes)
Type of
Cargo
Break Bulk
Container
Dry Bulk
POL/Product &
Other Liquids
Grand Total
Loaded
Unloaded
Total
Loaded
Unloaded
Total
Loaded
Unloaded
Total
Loaded
Unloaded
Total
Loaded
Unloaded
Total
Indian
Lines
1565
1011
2576
1506
1310
2816
15384
8954
24338
3484
44872
48356
21939
56147
78086
7.78
3.58
5.33
2.13
1.87
2.00
17.09
4.75
8.74
4.86
21.18
17.05
8.69
11.26
10.40
Foreign
Lines
18548
27194
45742
69150
68664
137814
74650
179474
254124
68249
167011
235260
230597
442343
672940
92.22
96.42
94.67
97.87
98.13
98.00
82.91
95.25
91.26
95.14
78.82
82.95
91.31
88.74
89.60
Total
20113
28205
48318
70656
69974
140630
90034
188428
278462
71733
211883
283616
252536
498490
751026
Note:- The information is compiled annually by Transport Research Wing. The

statement for 2011-12 compiled in February 2013.
94
Annexure VI
(Para 11.2)
TOTAL NO. OF EMPLOYEES IN THE MINISTRY OF SHIPPING (MAIN SECTT)
AND NUMBER OF SCHEDULED CASTES, SCHEDULED TRIBES AND O.B.C.
(SECRETARIAT SIDE) as on 31.12.2012.
S.No
.
Class
1
1.
2.
2
Group A
GroupB(Gaz)
3
37
48
Total
no. of
emplo
yee in
positio
n
4
34
33
3.
Group B(NonGaz)
Group C
(including Peon,
Daftery,
Safaiwala/Frash)
77
61
12
19.37
05
8.19
09
11.68
108
77
15
19.48
03
3.89
06
5.55
4.
Sanction
ed
strength
No. of
SC
employe
es
% to total
employe
es
No.of ST
employe
es
% to total
employee
s
No of
OBC
employe
es
% to total
employe
es
5
02
03
6
5.40
9.09
7
01
03
8
2.94
9.09
9
02
01
10
5.40
2.08
TOTAL NO. OF EMPLOYEES IN THE MINISTRY OF SHIPPING AND NUMBER OF

SCHEDULED CASTES, SCHEDULED TRIBES AND O.B.C.( NON-SECRETARIAT SIDE).
S
No.
Class
Sanctione
d strength
1
1.
2.
3.
2
Group A
Group'B(Gaz)
Group B(NonGaz)
Group C
Group D
(including
Safaiwala/Frash)
4.
5.
No. of SC
employee
s
% to total
employee
s
No.of ST
employee
s
% to total
employee
s
No of
OBC
employee
s
% to total
employee
s
3
21
08
02
Total no.
of
employe
e in
position
4
15
-
5
01
-
6
6.66
-
7
-
8
-
9
-
10
-
95
Annexure VII
(Para 11.15)
IMPORTANT AUDIT OBSERVATIONS
a)
Summary of Reports
Audit Para No. 8 of 2012-13 Dredging Corporation of India Limited

Management of Fuel The Company did not focus on optimizations of expenditure
on fuel and lubricants. The company did not fix the norms for fuel consumptions rate
on a scientific assessment, followed inappropriate purchase procedure for sourcing
the requirement, did not determining competitive prices for procurement of fuel and
lubricants and had inadequate internal control procedures for procurement of fuel
and lubricants. There was no proper system and procedure to ensure regular
reconciliation of fuel consumed with the issues made, prompt raising of claims for
fuel escalation as well as realizing the amounts, linking the guaranteed performance
and fuel supply rate agreed as per the agreements for chartering dredgers. These
deficiencies indicate a lack of professional handling of fuel consumption issues.
As a result of the above deficiencies, the Company lost an opportunity to save Rs.
164.63 crore on fuel consumption during 2007-11. This amount is equal to 49
percent of to profit Before Tax (Rs. 335.19) reported by the Company during these
years. This shows that a professional approach in fuel management can bring in
tremendous benefits to the Company and improve its bottom line substantially.
The Shipping Corporation of India Limited
14.2 Investment in Joint Venture - The Shipping Corporation of India Limited did
not conduct detailed study before entering into a Joint Venture for chemical tanker
operations. The initially approved investment of Rs. 45 crore in the year 2006
increased to Rs. 141.80 crore in the year 2011 with no returns. The company also
suffered a loss of Rs. 32.56 crore towards operations of vessels.
14.3 Avoidable expenditure due to delay in finalization of contract - Inordinate
delay in finalisation of contract for supply of stores items resulted in avoidable
expenditure of Rs. 7.62 crore.
b)
Summary of Important Audit Observations
The Summary of important audit observations, appearing in the following most

recent Audit reports of the year ended March 2011 are given below in the table:
No. 33 of the 2011-12 Union Government (Civil), Autonomous BodiesMormugao Port Trust, Goa
Loss of revenue Delay in completion of capital dredging which were
scheduled to be completed by September 2008 and finally completed between
May 2010 and March 2011 resulted in an estimated loss of Rs. 60 crore.
(Paragraph 9.1)
96
Chennai Port Trust

Unfruitful expenditure- Non-testing of the bubble structure for containing air
pollution led to rendering of the expenditure of Rs. 42.83 crore incurred on coal
handling system unfruitful.
(Paragraph 9.2)
Paradip Port Trust
Non-recovery of expenditure amounting Rs. 17.65 crore- Lapses in
verification of the documents of the vessel to ascertain its genuineness before its
entry into the port resulted in non-recovery of Rs. 17.65 crore.
(Paragraph 9.3)
Jawaharlal Nehru Port Trust
Non-levy of cess-The road infrastructure connecting Gateway Terminal of India
was widened was widened but no cess was collected on the developed
infrastructure, as per the agreement clause. This resulted in non-recovery of
expenditure on widening of the road to the extent of Rs. 15.44 crore.
(Paragraph 9.4)
Kolkata Port Trust
Injudicious procurement- Procurement of pneumatic fenders without proper
assessment has resulted in injudicious expenditure of Rs. 73 lakh incurred on
eight unutilised pneumatic fenders.
(Paragraph 9.5)
Mumbai Port Trust
Non recovery of maintenance charges- Failure to execute a formal agreement
with JNPT for the recovery of eligible share of cost towards annual maintenance
of Vessel traffic Management System (VTMS) resulted in loss of Rs. 4.72 crore.
(Paragraph 9.6)
97
Annexure-VIII
(Para 11.21)
GRANT OF THE MINISTRY OF SHIPPING

FOR THE FINANCIAL YEAR 2011-2012
(Rs in crore)
Source: Appropriation Accounts 2011-2012.

Saving
Grant No. & Name
Grant No.
88
Original
Supplementary
Total Budget Actual

Expenditure
Unutilized
Surrender
Revenue
Account
1447.93
638.61
2086.54
1432.65
16.77
637.12
Capital
Account
623.67
0.01
623.68
231.22
10.43
382.03
27.20
1019.15
Total
2071.60
638.62
2710.22
1663.87
GRANT OF THE MINISTRY OF SHIPPING

for 2012-13 (upto 31.12.2012)
(Rs in crore)
Grant No. & Name
Grant No. 88 Revenue Account

Capital Account
Total
Original
Supplementary Actual
Budget
Budget
Expenditure
1403.41
NIL
598.60
573.08
NIL
271.67
1976.49
98
NIL
870.27
Annexure-IX
(Para 11.21)
HEADWISE DETAILS OF RECEIPTS AS PER THE STATEMENT OF CENTRAL TRANSACTION
(SCT) FOR THE LAST THREE YEARS
REVENUE RECEIPTS
(Rs. in Crore)
MAJOR HEAD
1.
2009-10
0021-Taxes on Income other

Corporation Tax
2010-11
2011-12
2012-13
(Upto 31.12.2012)
7.81
6.67
8.22
4.62
5.64
3.68
11.71
170.31
474.63
10.25
255.35
288.77
98.57
32.66
0.00
5.33
2.
0045-Other Taxes & Duties on

Commodities & Services
3.
0049- Interest Receipts
4.
0050-Dividends & Profits
5.
0070-Other Administrative Services
0.00
0.00
0.00
6.
0071-Contribution & Recoveries

towards Pension & Other Retirements
Benefits
2.59
3.54
4.05
7.
0075 Miscellaneous General

Services
0.00
64.98
0.00
8.
0210-Medical & Public Health
0.16
0.20
0.20
0.15
9.
0216-Housing
0.18
0.24
0.21
0.18
10.
1051-Ports and Light houses
151.53
203.90
193.69
116.91
11.
1052-Shipping
61.40
65.11
71.06
48.63
12.
1056-Inland Water Transport
0.00
0.00
0.00
0.00
13.
1475 - Other General Economic

Services
0.09
0.00
0.11
495.44
809.36
854.42
REVENUE RECEIPTS *
CAPITAL RECEIPTS
MAJOR HEAD
1.91
5.16
2009-10
2010-11
2011-12
0.00
0.03
231.20
2012-13
(Upto 31.12.2012)
1.
4000- Miscellaneous Capital Receipts
40.00
0.00
20.00
20.00
2.
6858- Loans for Engineering Indst.
13.69
0.01
316.28
0.00
3.
7051- Loans for Port & Light Houses
26.24
25.02
0.08
2.20
4.
7056-Loans for Inland Water Transport
0.00
0.00
0.00
0.00
5.
7601-Loans & Advances to State Govt.
0.55
0.55
15.07
0.00
6.
7610- Loans to Govt. Servants
0.41
0.43
0.44
0.35
80.89
26.01
351.87
CAPITAL RECEIPTS **
99
22.55
Annexure-X
(Para 11.21)
DETAILS OF EXPENDITURE FOR THE LAST THREE YEARS i.e.
FROM 2010-11 TO 2012-13 (upto 31.12.2012)
2010-11
PARTICULARAS
Plan
Revenue
Expenditure
2049-Interest
Payment
2071-Pension
Payment
2075-Mislaneous
General services
2235-Social, Security
& Welfare
2245-Releief on a/c
of natural calamities
N.Plan
2012-13
(upto 31.12.2012)
N.Plan
Total
2011-12
Total
Plan
N.Plan
--
12.50
12.50
--
--
14.35
14.35
--
--
--
--
--
--
0.07
0.07
--
Total
Plan
29.33
29.33
0.00
0.16
0.16
11.95
11.95
0.00
12.19
12.19
14.74
14.74
0.00
0.00
0.00
0.03
0.03
0.00
0.02
0.02
--
--
--
--
--
--
0.00
0.00
0.00
2852-Industries
7.91
202.43
210.34
4.51
759.96
764.47
0.00
165.51
165.51
3051-Ports &
Lighthouses
3.70
731.41
735.11
2.07
447.12
449.19
0.00
270.65
270.65
--
32.35
32.35
--
51.31
51.31
0.00
28.24
28.24
3056-Inland Water
transport
134.09
41.13
175.22
112.76
28.09
140.85
102.30
21.23
123.53
3451-Eco Services
--
20.08
20.08
--
20.81
20.81
0.00
19.11
19.11
3.00
--
3.00
2.57
--
2.57
1.04
0.00
1.04
--
2.93
2.93
--
3.27
3.27
0.00
0.00
0.00
148.70
1057.25
1205.95
121.91
1366.61
1488.52
105.38
517.11
622.49
0.00
0.00
0.00
0.00
0.00
11.79
221.84
3052-Shipping
3601-Grant-in-aid to
State Govt
3605-Technical &
Economic
Cooperation with
other countries
TOTAL
Capital Expenditure
4405-Capital outlay
on fisheries
4858-Engineering
Industries
5051-Ports &
Lighthouses
3.57
--
--
--
298.46
(-)27.65
3.57
--
270.81
--
--
--
--
159.9
2
(-)27
100
--
133.92
0.00
210.05
5052-Training &
welfare Scheme
5056-Inland Water
Transport
5075-Other
Transport Services
6858-Loans for
Engineering
Industries
7051-Loans for
Ports & Light
houses
7610-Loans to Govt.
servants
38.07
--
38.07
46.84
--
46.84
59.18
0.00
59.18
--
--
--
--
--
--
0.00
0.00
0.00
4.46
--
4.46
2.01
--
2.01
0.91
0.00
0.91
--
9.80
9.80
9.21
9.21
0.00
7.60
7.60
--
--
0.00
0.00
0.00
0.39
0.39
0.00
0.33
0.33
--
80.52
--
--
80.52
0.32
0.32
--
--
TOTAL
425.62
(-)17.53
408.09
208.7
7
(-)17.40
191.37
Grand Total
574.32
1039.72
1614.04
330.6
8
1349.21
1679.89
Source: Statement of Central Transaction
101
270.14
375.52
19.72
536.83
289.86
912.35
Annexure-XI
(Para 11.21)
DEPRECIATION RESERVE FUND and GENERAL RESERVE FUND
DEPRECIATION RESERVE FUND
Rs in crores
Opening Balance as on
1.4.2012
133.35
Receipt during
01.04.2012 to 31.12.2012
12.00
Payment during
01.04.2012 to 31.12.2012
0.23
Closing Balance as on
31.12.2012
145.12
Opening Balance as on
1.4.2012
693.73
Receipt during
01.04.2012 to 31.12.2012
70.01
Payment during
01.04.2012 to 31.12.2012
54.78
Closing Balance as on
31.12.2012
GENERAL RESERVE FUND
Source: Finance A/c
102
708.96

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GOVERNMENT OF INDIA

Shipbuilding and ship repair

Lighthouses and lightships

Inland Waterways Transport

Administration and Finance

Extracts from Results- Framework Document

Thiru G. K. Vasan is the Union Minister of Shipping.

Shri Milind Deora is the Minister of State for Shipping.

Secretary (Shipping) is assisted by Joint Secretary (Shipping), Joint Secretary

Adviser (Transport Research) renders necessary data support to various Wings of

The following attached/subordinate offices, autonomous organisations, societies/

ATTACHED/ SUBORDINATE OFFICES

Directorate General of Shipping

1. Tariff Authority of Major Ports (TAMP)

Nehru (Nhava Sheva), Paradip, Tuticorin (V.O. Chidambaranar), Visakhapatnam

1. Seafarer's Welfare Fund Society

PUBLIC SECTOR UNDERTAKINGS

Shipping Corporation of India

Annual Plan 2012-13

Annual Plan 2013-14

Major Initiatives and Achievements

Major ports: Average TRT

Port Capacity Augmentation

Maritime Agenda 2010-20

handling cement at V.O. Chidambaranar Port

VLCC average earnings

Source: Clarkson Research Services - December 2012

Name of the ship

No of Indian crew Date when

Source: UNCTAD, Review of Maritime Transport 2012

Kolkata Port handled 43.248 million tonnes of traffic in 2011-2012. KDS

New Mangalore Port

Mumbai Port Trust

Ennore Port Limited

Chennai Port has Cruise Cum Passenger Terminal measuring approximately

Kandla Port Trust

Traffic handled at Major Ports:

3.15 Cargo Handled at Major Ports

(In Million tonnes)

Selected Port Performance Indicators

Average Pre-Berthing detention and Average Turn Round time:

Average Turn round

Average Output per Ship Berth Day:

(In Million Tonnes)

Major Developments in Ports

Capacity at Major Ports

(In Million tonnes)

Other Port Related Organizations

Tariff Authority for Major Ports

Andaman Lakshadweep Harbour Works (ALHW)

Andaman Lakshadweep Harbour Works (ALHW) a subordinate office under

Sheltered harbours with breakwater at Rangat in Middle Andaman, Hut Bay in

Dredging Corporation of India Ltd. (DCIL) was formed in 1976 to provide

Kolkata Dock Labour Board

is 103 and 86 (total 189) respectively. Number of pensioners as on 31.10.2012 is

Sethusamudram Corporation Limited

Sethusamudram Ship Channel Project, which is being implemented through

Shipping industry is one of the most globalised industries operating in a highly

4.2 NATIONAL SHIPPING BOARD

DIRECTORATE GENERAL OF SHIPPING, MUMBAI

The Directorate General of Shipping (DGS), an attached office of the Ministry

4.4 Functions of offices under the administrative control of the Directorate

The Principal Officers and the Surveyors-in-Charge have been notified to be

To provide means for securing the presence on-board at proper times