SUBJECT INDEX

Chapter Para No. Subject Page No.

No.

1 1 INTRODUCTION 1-3

2 YEAR AT A GLANCE 4-16

2.1.1 Background 4

2.1.2 Geographical feature 4

2.1.3 Annual Plan 2009-2010 4

2.1.4 National Maritime Development Programme 5

2.1.5 Sethusamundram Ship Channel Project 5-6

2.1.6 Bipartite Wage Negotiation Committee and Pay revision 6-7

committees recommendation

2.1.7 International Cooperation 7-8

2.2 Port Sector Achievements 8-11

2.3 Shipping Sector Achievements 11-15

2.4 Chartering Sector Achievements 15-16

3 PORTS 17-26

3.1. INTRODUCTION 17

3.2 Major Ports in India 17-21

3.3 Performance of Major Ports 21-23

3.4 Road and Rail connectivity 23-24

3.5 Major Developments in Ports 24

3.6 Other Port Related organization 25-26

4 SHIPPING 27-32

4.1 INTRODUCTION 27

4.2 National Shipping Board 27

4.3 Directorate General of Shipping 27-28

4.4 Mercantile Marine Departments 28

 4.5 Shipping Offices at Mumbai, Kolkata & Chennai 28

4.6 Seamen’s Employment Office, Mumbai, Kolkata, Chennai 28-29

4.7 Seamen’s Welfare Office, Chennai 29

4.8 Regional Office (Sails) Mumbai, Tuticorin, Jamnagar 29

4.9 Maritime Training in India 29-30

4.10 Indian Maritime University 30-31

4.11 Welfare Organisation 31-32

4.12 Minor Port Survey Organisaion 32

4.13 Shipping Corporation of India Ltd 32

5 SHIPBUILDING AND SHIPREPAIR 33-35

5.1 Shipbuilding and Ship repair 33

5.2 Cochin Shipyard Limited 33-34

5.3 Hindustan Shipyard Limited 34-35

5.4 Hooghly Dock and Port Engineers Limited 35

6 LIGHTHOUSES AND LIGHTSHIPS 36

7 INLAND WATER TRANSPORT 37

7.1 Introduction 37

7.2 Inland Waterways Authority of India (IWAI) 37

7.3 Centre Inland Water Transport Corporation(CIWTC) 37

7.4 Indo-Bangladesh Protocol on Inland Water Transit & Trade 37

8 CHARTERING 38-40

8.1 Introduction 38

8.2 Highlights of 2009-10 38-39

8.3 Freight Market 39

8.4 Tanker Market 40

9 TRANSPORT RESEARCH 41-42

10 ADMINISTRATION AND FINANCE 43-50

2
 10.1 Administration 43-44

10.2 Setting up of Information & Facilitation Center 44

10.3 Formation of Citizens’ Charter 44-45

10.4 Introduction of Change Management for Good Governance 45

10.5 Departmental Record Room 45

10.6 Quarterly Executive Summary 46

10.7 The Grievance Redressal setup in the Ministry 46

10.8 CPGRAMS 46

10.9 DMIS 46-47

10.10 WEBSITE 47

10.11 Computerisation of Accounts 47

10.12 Outstanding ATNs 47-48

10.13 Budget 48

10.14 Other Funds 48

10.15 Vigilance 48-49

10.16 Right to Information Act Implementation 49-50

11 OFFICIAL LANGUAGE 51-53

11.1 Progressive Use of Hindi 51

11.2 Compliance with Section 3(3) of the Official Languages Act. 51

11.3 Compliance with the Rule 5 of the Official Languages Rules 51

11.4 Originating Correspondence in Hindi 51

11.5 Training in Hindi/Hindi Stenography/Hindi Typewriting 52

11.6 Translation of Manuals/Codes/Procedural Literature 52

11.7 Provision of Bilingual Mechanical/Electronic Aids 52

11.8 Organisation of Inspection/Meetings on Implementation Status 52

of Hindi

11.9 Celebration of Hindi Pakhwara and Organisation of Hindi 52-53

3
 Workshops

11.10 Incentives Schemes 53

11.11 Purchase of Hindi Books 53

11.12 Rajbhasha Shield Yojna and Publication of House Magazine 53

"Nautarani"

11.13 Monitoring of the Implementation of Official Language Policy 53

of the Government in Subordinate Offices/Undertakings.

12 LIST OF ANNEXURES

I 1.2.1 Subjects allocated to Ministry of Shipping 54-55

II 1.3.10 Organisational Chart of Ministry of Shipping 56

III 8.2 Statement showing the quantities of Cargoes for which 57

Shipping Arrangements were made by Chartering Wing,
Ministry of Shipping for the year 2009 (1.1.2009-31.12.2009)

IV 10.1 Total number of employees in the Ministry of Shipping (Main 58

Secretariat ) and number of Scheduled Castes and Scheduled
Tribes and O.B.C. (Secretariat side)

V 10.1 Total number of employees in the Department and number of 59

Scheduled Castes and Scheduled Tribes and O.B.C.(Technical
side)

VI 10.13 Grant of the Ministry for the financial year 2008-09 60

VII 10.13 Head wise details of receipts as per the statement of Central 61
Transaction (SCT) for the last three years

VIII 10.13 Details of expenditure for the last three years 62

IX 10.14 Other Funds 63

X Important Audit Observations 64-65

4
 CHAPTER - I
Introduction
1.1.1 Ministry of Shipping was carry higher shares of the sea-
formed in 2009 by bifurcating borne trade in indigenous
the erstwhile Ministry of bottoms.
Shipping, Road Transport and
Highways into two
independent ministries. 1.1.4 Historically, investments in the
transport sector, particularly in
the ports, have been made by
1.1.2 Maritime Transport is a critical the State, mainly because of
infrastructure for the economic the large resources required,
development of a country. It long gestation period,
influences the pace, structure uncertain returns and a number
and pattern of development. of externalities, associated
The Ministry of Shipping with this infrastructure sector.
encompasses within its fold However, the growing
shipping and port sectors resource requirements and the
which also include concern for managerial
shipbuilding and ship repair, efficiency and consumer
major ports and inland water responsiveness have led to the
transport. The Ministry has active involvement of the
been entrusted with the private sector in infrastructure
responsibility to formulate services in recent times. To
policies and programmes on encourage private sector
these sectors and their participation, Ministry of
implementation. Shipping has laid down
comprehensive policy
guidelines for the private
1.1.3 Comprehensive policy sector participation in the
package is necessary to Major ports.
address the diverse issues
facing the maritime transport
sector. The capacity of the 1.2 Functions
ports in terms of their berths
and cargo handling equipment
needs to keep pace with the
1.2.1 The subjects allocated to the
growing requirements of the
Ministry of Shipping are listed
overseas trade. The shipping
at Annexure - I.
industry must be enabled to
5
1.3 Organisational set-up
1.3.1 Thiru G.K.Vasan is the Union
Minister of Shipping.
1.3.2 Shri Mukul Roy is the Minister
of State for Shipping.
1.3.3 Secretary (Shipping) is
assisted by Joint Secretary
(Shipping), Joint Secretary
(Ports), Chief Controller of
Chartering, Development
Adviser (Ports), officers at the
level of Directors, Deputy
Secretaries, Under Secretaries
and other Secretariat/
Technical Officers.
1.3.4 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.
1.3.5 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.
1.3.6 Adviser (Transport Research)
renders necessary data support
6
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.
1.3.7 The Finance Wing, Accounts
Wing and Transport Research
Wing are common with the
Ministry of Road Transport &
Highways.
1.3.8 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 (INA-
PIANC) of which India is a
member country. DA(Ports)
also coordinates the Research
Committee works of the
Ministry in respect of Ports,
Shipping and IWT sector.
1.3.9 The following subordinate /
attached offices, autonomous
organisations, societies/
associations and public sector
undertakings are functioning
 under the administrative • Dock Labour Boards at
control of the Ministry of Kolkata and Visakhapatnam.
Shipping:
• Inland Waterways Authority
of India, Noida.
(A) Subordinate/Attached offices
• Tariff Authority for Major
Ports, Mumbai.
• Directorate General of
• Seamen’s Provident Fund
Shipping,
Organisation, Mumbai.
Mumbai (including Minor
Ports
(C) Societies /Associations
Survey Organisation,
Mumbai).

• Andaman & Lakshadweep • Indian Maritime University,

Harbour Chennai.

Works, Port Blair. • Indian Institute of Port

Management, Kolkata.
• Directorate General of
Lighthouses • National Ship Design and
Research Centre,
& Lightships, NOIDA
Visakhapatnam.

• Seafarers Welfare Fund

(B) Autonomous bodies Society, Mumbai.

• Indian Institute of Maritime

Studies, Mumbai.
• Port Trusts at Kolkata, Kochi
(Cochin), Kandla, Chennai, • Indian Ports Association,
Mormugao, Mumbai, Nhava New Delhi.
Sheva (Jawaharlal Nehru
Port), Paradip, Tuticorin,
Visakhapatnam and New (D) Public Sector Undertakings
Mangalore.

7
• Shipping Corporation of • Hooghly Dock & Port
India, Mumbai Engineers Limited, Kolkata.

• Hindustan Shipyard Limited, • Ennore Port Limited, Ennore.

Visakhapatnam.
• Sethusamudram Corporation
• Cochin Shipyard Limited, Limited, Chennai
Kochi.

• Central Inland Water

1.3.10 The Organisation Chart of the
Transport Corporation
Ministry of Shipping is given at
Limited, Kolkata.
Annexure - II.
• Dredging Corporation of
India Limited, Visakhapatnam.

8
 CHAPTER-II
YEAR AT A GLANCE
2.1.1 The Maritime Sector in India
comprises of Ports, Shipping,
Shipbuilding, 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 India’s economy.
Approximately 95% of the
country’s 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 world’s
most efficient means of
transportation and we need to
do all we can to recognize,
reward and promote quality
within the industry.
2.1.2 India has a long coastline of
about 7517 km, 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.
2.1.3 Annual Plan 2009-10
Under the Annual Plan for
2009-10, an outlay of Rs.
2416.00 crore has been
approved for the Port Sector.
This includes a Government
Budgetary Support for the 12
Major Ports to the tune of Rs.
152.00 crore and IEBR of Rs.
1525.00 crore. An amount of
Rs. 739.00 crore has been
earmarked for Dredging
Corporation of India (DCI),
Andaman Lakshadweep
Harbour Works (ALHW),
R&D Studies, Sethusamudram
Ship Channel Project (SSCP),
Post-Tsunami Works, Survey
Vessels, Web Based EDI- Port
Community System, IT for
Ministry of Shipping and
Studies on Non-Major Ports
with a Government Budgetary
Support of Rs. 233.50 crore.
 MAJOR INITIATIVES have been identified for
AND ACHIEVEMENTS inclusion in the Programme.
DURING 2009-10 These projects will be
implemented in phases. Out of
these, about Rs.34,505 crore is
2.1.4 National Maritime expected from private sector
Development Programme mainly in commercially viable
projects like development and
operation of berths, terminals,
The Ministry of Shipping has etc. Public funds will be
finalised a National Maritime principally used for creation of
Development Programme common user infrastructure
(NMDP) to implement specific facilities. The objective is to
programmes/schemes for the upgrade and modernize the
development of the Port sector. port infrastructure in India
Under the Programme, specific which will enable it to
projects to be taken up for benchmark its performance
implementation over a period against global standards.
upto 2011-12 have been
identified. Total investment
involved under the Programme
is Rs.1,00,339 crore. Out of
2.1.5 Sethusamudram Ship
this, Rs.55,804 crore is for the
Channel Project
Port sector and the balance is
for shipping and inland Water
Transport Sectors. In the
Sethusamudram Ship channel
Major ports, 276 projects
Project, which is being
covering the entire gamut of
implemented through the
activities, namely construction/
Special Purpose Vehicle
upgradation of berths,
namely, Sethusamudram
deepening of channels,
Corporation Limited,
rail/road connectivity projects,
envisages dredging of a ship
equipment upgradation/
channel in the shallow portion
modernization schemes and
of sea to connect the Gulf of
other related schemes for
Mannar and Bay of Bengal
creation of backup facilities,
through Palk Bay so that the
10
ships, depending on draught the Committee of the
required, moving between east Secretaries, under the
and west coasts of India could Chairmanship of Cabinet
have a continuous navigable Secretary, was held on 28th
sea route around the peninsula July, 2008. After detailed
within India’s own territorial deliberations, the Committee
waters. of Secretaries approved the
constitution of a Committee of
experts to consider the Re-
The project was inaugurated alignment of Sethusamudram
on 2nd July, 2005 by the Prime Channel. The Committee will
Minister. The entire dredging examine the feasibility of the
work for the project has been alternative alignment
awarded to the Dredging suggested by the Hon’ble
Corporation of India (DCI) on Supreme Court for the
nomination basis. The work at Sethusamudram Ship Channel
Adam’s Bridge area Project between Dhanushkodi
th
commenced on 11 December, and Lands End on
2006 and the quantity dredged Rameshwaram Island keeping
upto 17th September, 2007 is in view the technical aspects,
11.89 Million. Cu.m (Hopper cost benefit analysis, social
Quantity). The dredging work and cultural impact,
at Adam’s Bridge area is environmental impact, law and
temporarily suspended from order aspect and any other
17th September, 2007 based on related matters. The
an order passed by Hon’ble Committee was constituted
Supreme Court of India. under the chairmanship of Dr.
R.K. Pachauri, Director
General, The Energy and
During the course of hearing Resources Institute vide
of the case on 23rd July, 2008, Cabinet Secretariat’s order
the Supreme Court suggested dated 29th July, 2008.
that alternate alignment should
be examined objectively and at
the earliest in order to come to The Expert Committee held
a conclusion. A Meeting of five meetings on 22.08.2008,

11
 19.09.2008, 21.10.2008, Flanders. As per the renewed
5.6.2009 and 10.11.2009 LOI for 2010-12, both
respectively. Environmental Governments will mutually
Impact Assessment (EIA) of promote each other’s ports
the proposed alternative through inclusion of promotion
alignment has been assigned to material in port exhibitions
National Institute of and continuous exchange of
Oceanography(NIO). information/documents/
material on Indian and Flemish
ports. Flanders, in cooperation
PORTS with APEC, will organize
DEVELOPMENT tailor made short training
courses for Indian Officers in
addition to other short training
courses. On port related issues,
2.1.6 A Memorandum of
Flanders will provide a
Understanding (MOU) was
maximum of twelve
signed on September 24, 1997
scholarships per year for
between the then Minister of
Indian staff for standard short
Shipping, Government of
training courses/seminars in
India, and the Minister of
APEC. Flanders will also
Public Works, Flanders,
provide advice on the projects
Belgium to cooperate in
of Major Ports of India and
various fields relating to
subordinate organizations
maritime transport and Port
under the administrative
development. In order to
control of Ministry of
implement the MoU, a Letter
Shipping, Government of
of Intent (LOI) was signed in
India.
October 25, 2002 and
subsequently on October 5,
2005. This Letter of Intent has
been renewed on 6th October,
2009 for the period 2010-12 2.1.6 Bipartite Wage Negotiation
between the Ministry of Committee and Pay Revision
Shipping, Government of India Committees
and Ministry of Mobility and Recommendations.
Public Works, Government of
12
 Trusts, has also submitted its
report and the same would be
A Bipartite Wage Negotiation
examined by the Ministry for
Committee(BWNC) was
appropriate decision.
constituted by the Ministry in
January, 2007 to go into the
wage revision of class III & IV
employees of Major Port
Trusts.

A Memorandum of Settlement 2.2.0 PORT SECTOR

dated 19/01/2010 has been ACHIEVEMENTS
arrived under Section 12(3) of
the Industrial Dispute Act,
1947 over Charter of Demands 2.2.1Traffic, Capacity and
of wage structure and allied Performance
matters between the five Major
Federations operating in Major
Port Trusts and Dock Labour (A) Traffic
Boards and the Management.

The Major Ports

Main features of the agreement
are that Wage Revision is
effective from 1/1/2007 and
will remain operative for a
period of five years up to
31/12/2011. A fitment benefit
of 23% has been given to the
workers.
handled a total traffic of
530.53 million tonnes during
the financial year 2008-09 and
411.95 million tonnes up to
December 2009 in the
financial year 2009-10.
(B) Capacity

Similarly, the pay Revision

Committee set up in 2006, for
recommending revised pay
structures of Class I and Class
II Officers of Major Port
13
The aggregate capacity
of major ports as on 31.3.2009
was 574.77 million tonnes per
annum (MTPA). The major
 ports, therefore, continued to
maintain a favourable capacity
2.2.3 Major Development Projects
cargo equation during the year.

(A) International Container

(C) Performance
Trans-shipment Terminal
(ICTT) at Cochin Port

The average output per

ship per day for all major ports
It has been decided to set
taken together has improved
up an International
from 9926 tonnes in 2008
Container Transshipment
(April-Dec) to 9995 tonnes in
Terminal (ICTT) at
2009(April-Dec). However,
Cochin Port by awarding
average turnaround time has
contract on Build,
marginally increased from
Operate and Transfer
3.86 days to 4.54 days over the
(BOT) basis to M/s Dubai
same period.
Port International, Dubai
(DPI). The Port Trust
will have to provide road
2.2.2 Capacity Addition in Major
and rail connectivity to
Ports
the ICTT project site,
environmental clearance
for the project and get the
It has been the endeavor of the
project site declared as
Government to consistently
Special Economic Zone
enhance the cargo handling
(SEZ). Port Trust will
capacity of the Major Ports
also have to deepen the
keeping in view the projected
channel so as to receive
traffic for the country. The
ships of size 8000+TEUs.
aggregate capacity in major
Cochin Port Trust has
ports as on 31.3.2009 was
already handed over the
574.77 MTPA. Thus the
Rajiv Gandhi Container
favorable capacity – traffic
Terminal (RGCT) to the
equation continued during the
BOT operator on
year. 1.4.2005. The
14
construction has and Rs.139.97 crore has
commenced in December, been released towards the
2007. The environmental project by Government of
clearance for the terminal India as Budgetary
has also been obtained. Support.
The Environmental
Clearance for the National
Highway connectivity has 2.2.4 Private Sector
been granted by Ministry Participation in Major
of Environment & Forests Ports
(MoEF).

The Rail & Road

connectivity to the project
site, and Capital dredging
to provide 14.5 mtr. Draft,
has been approved by the
Government of India at an
estimated cost of
Rs.245.67 crore, Rs.557
crore and Rs.381.25 crore
respectively. The work
on the Rail & Road
connectivity project has
already commenced. For
the Rail Connectivity
project the GoI has
already release Rs.290.48
crore as Budgetary
Support and a Revised
Cost Estimate of Rs
298.17 crore has already
been approved. The work
has been awarded for the
Capital Dredging project
15
24 private sector projects
involving an investment of
Rs.6485.50 crore are already
operational and 13 projects are
under implementation. Apart
from that another 28 projects
are under bidding.
Following PPP projects have
been awarded for
development and
construction of Berths/
Mechanization in respect of
Kolkata, Vishakapatnam,
Paradip, New Mangalore
and Mormugao Port Trust:
a) Two projects for
mechanization at Haldia Dock
System of Kolkata Port Trust
have been awarded which are
expected to be operationalised
very soon. The projects related
to mechanization of berth No.
2 and 8 at Haldia will add a
capacity of 4 MTPA each in
berth.
b) The Vishakapatnam Port
Trust awarded a project for the
development of Western Quay
(WQ-6) in the Northern arm of
inner harbor of Vishakapatnam
Port Trust for handling dry
bulk cargo at a cost of Rs
114.37 crores at a capacity of 2
MTPA.
c) The project of
‘Development of Deep
Draught Coal Berth at Paradip
Port” at an estimated cost of
Rs. 479.01 crores with a
capacity of 10 million metric
ton per annum on BOT basis
has been awarded on 10th
November, 2009 to M/s Essar
Paradip Terminal Ltd. (an SPV
of M/s Essar Shipping Ports &
Logistics Ltd of Mumbai) on
BOT basis for a period of 30
years.
d) The project of
“Development of Deep
Draught Iron Ore Berth at
Paradip Port” at an estimated
cost of Rs. 591.00 crore with a
2.2.5 11th Five Year Plan
capacity of 10 million metric
tons per annum has been
awarded on 1st July, 2009 to
M/s Blue Waters Iron Ore
Terminals Private Limited (an
SPV of M/s Noble Group
Limited, Hongkong and
Gammon Infrastructure
16
Projects Limited, Mumbai and
MMTC Limited) on BOT
basis for a period of 30 years.
e) The project of
“Mechanization of Iron Ore
Handling Facility as a backup
requirement at Deep Draught
Berth No. 14 at New
Mangalore Port” at an
estimated cost of Rs. 296.03
crores with a capacity of 6.62
million metric ton per annum
(MMTPA), has been awarded
on 19th October, 2009 to M/s
Sical Logistics Ltd;, Chennai
on BOT basis for a period of
30 years.
f) The project of
“Conversion /Development of
7th Berth into Coal Terminal at
Mormugao Port” at an
estimated cost of Rs. 252.44
crore with a capacity of 4.61
million metric tons per annum
has been awarded on
22.09.2009 to M/s Adani
Mormugao Port Terminal
Private Limited, Ahmedabad
on BOT basis for a period of
30 years.
The 11th Plan document has
been finalized and released by
the Planning Commission. The
11th Plan document has
targeted a GDP growth rate of
9%. The manufacturing sector
is expected to grow at 12%
requiring high quality
infrastructure in roads,
railways, ports, power and
telecommunication. In the
backdrop of doubling of
India’s share in the world trade
in the next five years,
efficiency and speed in the
movement of cargo through
ports are vital. Shipbuilding
and cargo technologies are
changing rapidly; ships are
bigger and faster with large-
sized container vessels
drawing 14.5 m draft and
moving at speeds of 25 knots;
and containerization of traffic
is growing steadily and
significantly. To meat such
challenges, initiatives taken
include Electronic Data
Interchange (EDI)- based
single window clearance in
many ports and development
of an International Container
Transshipment Terminal at
Cochin. Non-major and private
ports have seen spectacular
growth.
The 11th Plan has projected
that the total traffic handled by
17
ports in India will cross one
Billion Tonne mark and will
reach 1008.95 Million Tonne
with the Major Ports having a
70% share with a traffic target
of 708.09 MT by 2011-12. The
capacity requirement is
expected to be in the region of
1.5 Billion Tonne at 1589 MT
with the 12 Major Ports
expected to have a capacity of
around one Billion Tonne at
1016.55 MTPA. The total
investment required in the Port
sector including the Major
Ports for the 11th Plan has been
pegged at around 67173 crore
with a bulk of it coming from
private sector in commercially
viable activities such as
construction and operation of
berths/terminals. The
investment projected has been
estimated at Rs. 36868 crore.
The Government Budgetary
support for the overall Port
sector which includes
Andaman & Lakshadweep
Harbour Works, Post Tsunami
Reconstruction Works, Web
Based EDI, R&D studies etc.
has been projected at Rs. 3749
crore. The allocation for the
Major Ports stands at Rs.
2056.98 crore mainly on
projects involving common
 user facilities such as dredging
of approach channels, etc.
2.3. SHIPPING SECTOR
ACHIEVEMENT
2.3.1. National Maritime
Development
Programme:
Ministry of Shipping has
finalized a National Maritime
Development Programme
(NMDP) to implement specific
programmes/ schemes for the
development of the Shipping
and Port Sector. Under the
programme specific projects to
be taken up for
implementation over a period
upto 2014-15 have been
identified. Total investment
involved under the programme
is Rs.1,00,339 crore. Out of
this, Rs.44,535 crore is for the
Shipping &IWT sector and
balance of Rs.55,804 crore is
for the Port Sector.
On the Shipping side, activities
covered under the Programme
include tonnage acquisition,
maritime training, coastal
shipping, aids to navigation,
shipbuilding and building up of
IWT infrastructure.
18
Under the NMDP, the
Shipping Corporation of India,
to whom Government has
recently conferred the
Navratna status, has been
going for tonnage expansion.
SCI has proposed to acquire 62
vessels during the 11th Plan at
a cost of approximately
Rs.13,000 crores. Out of
these 62 vessels, they have
taken delivery of 7 vessels and
placed order for construction
of 32 vessels with different
shipyards and remaining 23
vessels will be processed in
phased manner between 2009
and 2012. SCI has been
making profit over Rs.800
crores for each of the last three
years. SCI, the largest Indian
Shipping Company declared a
profit of Rs.940.67 crores for
the year ended March, 2009
and declared dividend of 65%
of the paid up capital.
2.3.2 SHIPBUILDING:
NMDP has envisaged setting
up of 2 international standard
shipyards in India, one on the
West coast and other on the
East coast. For this,
Government has nominated
Ennore Port and Mumbai Port
Trust to function as nodal
agencies. Expressions of
interests have been invited in
 this regard which are being research and extension work
processed. with focus on emerging areas
of studies including marine
science & technology, marine
environment, socio-economic,
legal and other related fields
2.3.3Expansion of Indian and also to achieve
Tonnage:
excellence in these and
India is among the 20 leading connected fields. It will
Merchant fleets all over the promote advanced knowledge
World. The Gross tonnage by providing institutional and
under Indian flag was 9.39 research facilities in such
million GT as on 1.12.2009. branches of learning as it may
India has attained the position
deem fit, make provisions for
from a humble beginning of
merely 0.19 million tons in integrated courses in science
1950. and other key areas of marine
technology and allied
2.3.4 ESTABLISHMENT OF disciplines. As there are a
INDIAN MARITIME sizeable number of private
UNIVERSITY institutions imparting maritime
education and training, the
The Government has
University will standardize the
established Indian Maritime
quality of such education and
University IMU) in Chennai
training through affiliation and
on 14/11/2008 by an Act of
academic supervision.
Parliament i.e. Indian
Maritime University Act, 2008
(22 of 2008) with campuses at
Chennai, Kolkata, Mumbai In IMU new courses in B.Tech
and Visakhapatnam. in Naval Architecture and
Ocean Engineering, MBA in
Port and Shipping
Management, MBA in
Formation of IMU will
International Transportation
facilitate and promote
and Logistics and P.G.
maritime studies,
Diploma in Naval Architecture
and Ocean Engineering have

19
 been introduced. Plans for
introducing more courses are
under formulation. The intake
of seats in existing courses in
Institutes subsumed in Indian
Maritime University is being
increased to implement the
Central Institutions
(Reservation in Admission)
Act, 2007.
2.3.5 SHIPPING
CORPORATION OF INDIA
LTD (SCI).
The SCI, to whom
Government has conferred
Navratna status on 1st August,
2008, has been going for
tonnage expansion. The SCI
proposes to acquire 62 vessels
during 11th Plan at a cost of
approximately Rs.13,000
crores. SCI has so far taken
delivery of 7 vessels out of
which 2 vessels were delivered
during the current year (1
VLCC, 1 MR Product tanker ).
They have placed order for
construction of another 31
vessel with different shipyards.
2.3.6 Shipbuilding Sector
Cochin Shipyard delivered
four ships during the year
2008-09 and subsequently
20
three more ships were
delivered till November 2009.
All the ships were Platform
Supply vessels for foreign
owners. The yard also
achieved a very important
milestone viz. Keel Laying of
the Indigenous Aircraft Carrier
Project on 28 Feb 2009.
During April-November, 2009,
shipbuilding income was Rs.
558 crores
DuringApril-November,
2009, shiprepair income was
Rs. 183.53 crores.
In the Hoogly
Dock…..(HDPE), the
construction of 4 Nos. 1000
Ton Fuel Barge worth Rs.
Rs.96.12 crores for Indian
Navy has been started. The
delivery period of the first
vessel is in the month of June,
2010, and thereafter in
September, 2010, December,
2010, & March, 2011
respectively.
One No. Self Loading Cargo
vessel for IWAI has been
delivered during May, 2009.
The construction of 1 No. 300
Ton Self Loading cargo vessel
and 1 No. Hydraulic Surface
Dredger is under progress and
the vessels are slated to be
delivered during 2009-10.
In 2009-10, HSL has so far
delivered one Oil recovery and
pollution control vessel for
Visakhapatnam Port Trust, the
last of 4 Nos. 30,000 DWT
Bulk Carriers for M/s. Good
Earth Maritime Ltd. and 1 No.,
32 Ton Bollard Pull Tug for
New Mangalore Port Trust.
Efforts are on hand to deliver
the 1st of 6 nos., 53,000 DWT
diamond series bulker for Ms/
Goodearth Maritime Ltd. and
first three of 5 no. Inshore
Patrol vesels (IPV) for Indian
Coast Guard (ICG) before
March, 2010.
2.3.8 INLAND WATER
TRANSPORT
Inland Waterways Authority of
India is undertaking projects
for making National
Waterways 1, 2 and 3 (Ganga,
Brahmaputra and West Coast
Canal) fully functional by
providing navigational channel
21
of 3 m/2m/1.5 m depth for
about 330 days in a year, in
various stretches, fixed and
floating terminals at selected
locations and aids for day and
night navigation with DGPS
connectivity. Many of the
projects made progress during
the year viz, construction of
eight Cutter Suction Dredging
units and one Hydraulic
Surface Dredger for NW-1, 2
& 3, installation of DGPS
stations at Bhagalpur and
Jogighopa, capital dredging
between Alapuzha and
Edapallikota in NW-3,
extension of night navigation
facilities in some stretches,
construction work for high
level jetty at Patna terminal,
high level jetty at Pandu
terminal, terminal at Kolkata
(G.R. Jetty) and Kollam, etc.
With regard to cargo
transportation on three
National Waterways, regular
transportation of stone chips
on NW-1 and transportation of
ODCs on NW-1 & 2,
introduction of cruise vessel
operation between Kolkata and
Varanasi, apart from regular
movement of cruise
vessels/house boats in NW-1,
2 & 3, show revival of IWT.
Under Indo-Bangladesh
Protocol on IWT, Bangladesh
agreed for allowing Ashuganj
as a Port of Call for
transportation of project
material for Palatana power
plant of ONGC coming up
near Agartala. Interest shown
by NTPC and J P Group etc
for transportation of coal for
their thermal power plants and
by NHPC, Jindal Power ltd,
Reliance Group etc for
transportation of project cargo
and over dimensional cargo
(ODC) for their up coming
hydro power plants in north
eastern area, signal bright
future for IWT.
A proposal for declaring
Lakhipur- Bhanga stretch of
river Barak as a National
Waterway is under
consideration of the Ministry.
2.4 CHARTERING
SECTOR
ACHIEVEMENTS
22
The BDI was at its nadir
at the dawn of the year 2009
due to global economic
recession. However, it moved
to seven months high to 2942
on 26th May indicating some
signs of global economic
recovery. The index showed a
continuous gradual climb
through the year with slight
fluctuations every now and
then mainly attributed demand
adjustments due to stocks of
iron ore and coal and also port
congestion in Brazil, China
and Australia. The tanker
shipping market remained
subdued due to drastic fall in
demand of petroleum products
in the western countries. The
BCTI/BDTI, which gives an
indication of the liquid market
segment fluctuated throughout
2009 due to seasonal variation
in demand. The revival in
shipping market during 2009
may be attributed to increased
Chinese and Indian demand
for ores and coal on the dry
side and increase in demand of
petroleum products form USA
and Far East. Both dry cargo
freight market and the liquid
cargo freight market are
expected to remain flat at the
levels prevailing at the end of Concerted efforts were
2009 or slightly lower. made to provide shipping
coverage at competitive freight
rate as per the requirement of
During the period under indenting departments. While
report from 1st January, 2009 making shipping
to 30th November, 2009, total arrangements, efforts were
440 ships were chartered by made for maximum utilization
the Chartering Wing of available/suitable Indian
(Transchart) for shipment of tonnage.
total quantity of 256.18 lakh
MT of Government Cargoes.
Out of total 440 ships, 138 Modernisation and
were Indian ships (31.36%) computerization of the
which carried 99.41 lakh MT Chartering Wing has not made
i.e. approx. 38.80% of total much progress during the year,
quantity. The main reason for as the deficiencies observed
low percentage of cargo during the trial run of the new
carried by Indian vessels was software are yet to be attended
due to inadequate availability to by the software developer.
of required type of vessels in
Indian fleet for carriage of
crude oil, Coking Coal and
Fertilizers as well as better
alternate opportunities
available to Indian vessels in
cross trades. The main items
under dry/liquid cargoes for
which the shipping
arrangements were made
during the period included
Crude Oil, Coking Coal,
Fertilizer, fertilizer raw
materials, Lime Stone and iron
ore etc.

23
 CHAPTER III
PORTS
3.1. INTRODUCTION
3.1.1Ports 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.
3.2.1 Kolkata Port
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 neighboring countries
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.
3.2.2 Paradip Port
24
Paradip Port is the only major seaport
in the state of Orissa. The foundation
stone of the Port was laid on 3rd
January 1962. The Port was opened to
traffic on 12th March 1966 and
declared as Major Port on 18th April
1966. The port has handled 365.12
lakh tonnes of traffic during the period
(i.e up to 30.11.09) as against 283.65
lakh tonnes handled during the
corresponding period of the previous
year showing an increase by 28.72%
over the corresponding period of the
previous year.
3.2.3 New Mangalore Port
New Mangalore Port is the 9th Major
Port located on the West Coast of
India midway between Mormugao &
Cochin. This all weather Major Port
inaugurated on 11th January 1975.
The Port Trust Board was constituted
for the New Mangalore Port on 01-
04-1980. The development of the Port
was taken up in stages.
At present, there are six General Cargo
Berths with a draft varying from 9.50
Mtrs. 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., two Oil Jetties for crude/product
of M/s. MRPL with a draft of 14.00
Mtrs., one Multi User Liquid Jetty
with a draft of 12.50 Mtrs., one Iron
Ore Berth with a draft of 13.00 Mtrs.
and one Deep Draft Multipurpose
general cargo berth with a draft of
14.00 Mtrs. The total installed capacity
of the Port is 43.50 MTPA as per the
recent assessment.
3.2.4 Cochin Port
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
entrance to Port is through the Cochin
Gut between the peninsular headland
Vypeen and Fort Cochin. The port
limits extend up to the entire
backwaters and the connecting creeks
and channels.
The approach channel upto the Cochin
Gut, is about 1000 metre. long with a
designed width of 200 metre and
maintained dredged depth of 13.8
metre. From the Gut the channel
divides into Mattancherry channel and
Ernakulam Channel, leading to west
and east of Willingdon Island
respectively and berthing facilities for
ships have been provided in the form
of wharves, berths, jetties and stream
25
moorings alongside these channels.
3.2.5 Jawaharlal Nehru Port
Constructed in the mid 80'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
3.2.6 Mumbai Port
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,
Prince's, 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.
Prince's Dock, a semi-tidal dock,
commissioned in 1880. It has 8 berths,
each with a designed draft of 6.4 meters.
The Victoria Dock, commissioned in
1888, is also a semi-tidal dock. It has 14
berths, each with a designed draft of 6.7
meters. The Prince’s and Victoria Dock
basins will be filled up and used as
Container Storage Yard under the
Offshore Container Terminal Project.
The Prince’s and Victoria Dock basins
will be filled up and used as Container
Storage Yard under the Offshore
Container Terminal Project. The filling
up operations of Victoria Dock basin
have already commenced in current
fiscal.
There are 4 berths at Jawahar Dweep,
to handle crude and POL tankers and
an offshore berth at Pir Pau to handle
liquid chemicals and some of the POL
traffic. A full-fledged Container
Terminal has been set-up at BPS,
Indira Dock which is equipped with
two Gantry cranes for ship to shore
handling of containers and three
Rubber Tyred gantry cranes for yard
operations.
3.2.7 Ennore Port Limited
Ennore Port Limited (EPL), the 12th
Major Port, is the first Corporatized
Major Port of India and registered
under the Companies Act, 1956 on
11.10.1999. The Port commenced
commercial operations on 22.06.2001.
The first phase of the Port
development, with an investment of
Rs.1000 crores, comprises of the South
Break Water (1070M), North Break
Water (3080M), two Coal Wharves
with 560M length to accommodate two
panamax size vessels of 260M length
each and a depth of (-) 15 M alongside
26
with approach channel and port basin
of (-) 16M and (-) 15.5 M respectively.
3.2.8 Chennai Port
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
130 06’ N latitude and 800 18’ E
longitude on the Bay of Bengal.
Chennai Port is in the fourth position
in cargo traffic among the Major Ports
of India. The Port handled a cargo
tonnage of 57.49 million tonnes during
2008–2009. During the current year,
tonnage handled upto November 2009
is 40.88 million tonnes, which
comprises of 25.76 million tonnes of
Imports, 15.12 million tonnes of
Exports.
3.2.9 Mormugao Port
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 was declared
as a Major Port on December 2, 1963.
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.
Mormugao port has about 40,000
sq.mtrs. of covered storage space and
about 2.25 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.
Mormugao Port plans to expand its
infrastructure as well as the capacity
by developing new berths, deepening
the approach channel, augmenting the
capacity of mechanical ore handling
plant, construction of berth for cruise
and other non cargo vessels, offshore
support base, etc.
3.2.10 Tuticorin Port
The Port of Tuticorin is located on the
South Eastern Coast of India, 540 KMs
South west of Chennai in the State of
Tamil Nadu at Latitude 80 45' N and
Longitude 78013'E. The Port is also
strategically located close to the East –
West international sea route. The Port
of Tuticorin is an artificial lagoon type
Harbor protected by two Rubble
Mound Break Waters. The approach
27
channel is 2400 meters long and
152.40 meters wide at the entrance.
Tuticorin Port was declared as the 10th
Major Port of India on 11-07-1974.
The erstwhile Tuticorin Minor Port
and the newly constructed Tuticorin
Major Port were merged on 01-04-
1979 and the Tuticorin Port Trust was
constituted under the Major Port Trust
Acts, 1963. Since then, the Tuticorin
Port Trust is functioning with two
wings, Viz., Zone – A, and Zone – B.
Zone-A of the Port has seven general
Cargo Berths, One Container Berth,
Two Shallow Water Berths and two
Coal Jetties and One Oil Jetty.
The zone B of the Port is the old
anchorage Port located at about 9 KM
from New Port. The ships lie in the
road stead and the lighters transfer the
cargo from ships to shore and vice-
versa. There are jetties and wharves to
a length of one K.M. to accommodate
the lighters and sailing vessels.
3.2.11 Kandla Port
Kandla Port was established in the
year 1950 as a Central Project and
Union Government took over the
Kandla for its development as a Major
Port. The need of developing Kandla
as a Major Port has arisen 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 brought
under the Major Port Trusts Act and
was declared as Kandla Port Trust on
29.2.1964. The Port grew gradually in
terms of EXIM Trade and
infrastructure development. As on date
Kandla Port has 12 Cargo berths and 6
Oil Jetties besides 3 SBMs., in OOT,
Vadinar. The cargo berths are
equipped with cargo handling gears
like wharf cranes of various capacities
and the oil jetties are connected to
storage installations with pipelines.
3.2.12 Visakhapatnam Port
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 and
consistently upgrading its
28
infrastructure in tune with changing
technological trends in the Shipping
industry. Projects worth of Rs. 2621
crores for capacity augmentation have
been taken up during 11th plan. The
Visakhapatnam Port is the only Indian
Port possessing three International
accreditations viz., ISO 14001; 2004
(EMS) / OHSAS 18001 and ISO
9001:2000 (QMS).
The Port has two harbours viz., Inner
Harbour with 18 berths to
accommodate ships upto 11 mtrs. draft
and Outer Harbour with 6 berths to
accommodate upto 17 mtrs. draft. The
Port has mechanized handling facilities
for iron ore, iron pellets, soya
extraction, alumina, fertilizer raw
material, crude oil & POL products,
liquid ammonia, Phosphoric acid,
edible oil, caustic soda and other liquid
cargoes. For mechanization of
finished fertilizers and coal, proposals
to take up under BOT mode are under
final stage of approvals.
Visakhapatnam Port handled 63.91
million tonnes in 2008-09and the
cumulative traffic during April, 2009
to November, 2009 stands at 44.12
million tonnes compared to 42.8
million tones handled during the
corresponding period of last year.
In the initial years, the traffic
was being handled mostly at
 major ports. However, over the
years, minor ports have also
witnessed growth in traffic. The
growth in the cargo handled at 3.3 Performance of Major Ports
Indian ports has increased from
a level of 19.38 million tonnes
(major ports) in 1950-51 to 3.3.1The Major Ports handled a total
around 722.93 million tonnes traffic of 530.53 million tonnes
(major and minor & during the financial year 2008-
intermediate ports) by 2007-08. 09 and 411.95 million tonnes up
Traffic at major and to December 2009 in the
financial year 2009-10.

minor/ intermediate ports stood

at 519.31 and 203.62 million
tonnes respectively.

3.3.2 Traffic handled at Major Ports:

(in million tones)

Port Target 2009 Actual 2009 Actual 2008

(April-Dec.) (April – Dec.) (April – Dec.)

Kolkata 10.03 9.63 8.26

Haldia 33.44 24.61 31.86

Paradip 40.24 41.73 32.50

Visakhapatnam 50.06 49.31 48.22

Chennai 47.64 45.83 41.66

Tuticorin 16.34 17.63 16.42

Cochin 13.85 12.06 11.77

New Mangalore 29.82 27.11 27.71

29
Mormugao 31.74 31.26 26.46

Jawaharlal 50.41 44.55 44.10

Nehru

Mumbai 39.47 40.36 38.58

Kandla 58.30 59.74 55.74

Ennore 9.25 8.13 8.52

All Major Ports 430.59 411.95 391.80

30
3.3.3 Cargo Handled at major ports

(in million tones)

Commodity 2009 2008 (April-Dec)

(April-Dec)

POL 129.99 128.57

Iron Ore 69.47 63.82

Fert. & Raw Materials 14.17 16.14

Coal 53.63 54.07

Containerized Cargo 73.84 70.82

Others 70.85 58.58

Total 411.95 391.80

3.3.4 Selected Port Performance Indicators

The details of major performance indicators of the Ports are given below:

(A) Average Pre-Berthing detention and Average Turn Round time:

Port Average Pre- Average Turn round

Berthing Detention- Time
on Port Account
(Days)
(Hours)

2009 2008 2009 2008

(April to December) (April to December)

Kolkata 4.36 1.14 5.34 4.55

31
 Haldia 37.35 13.32 5.20 3.67

Paradip 1.50 1.23 9.84 4.94

Visakhapatnam 23.89 3.94 5.17 4.20

Chennai 0.98 0.94 4.12 4.29

Tuticorin 11.52 4.08 4.14 3.85

Cochin 3.08 1.12 2.14 2.26

New Mangalore 0.72 1.20 3.22 2.92

Mormugao 22.16 11.00 5.62 3.56

Jawaharlal 6.48 10.80 1.94 1.94

Nehru

Mumbai 7.69 7.20 4.42 4.07

Kandla 26.88 34.56 5.16 5.60

Ennore 0.52 0.99 2.24 2.37

All Major Ports 13.44 9.22 4.54 3.85

(B) Average Output per Ship Berth Day:

Port Average Output Per Ship Berth

Day (in Tonnes)

2009 2008

(April to (April to
December) December)

Kolkata 2320 3068

Haldia 6182 7834

Paradip 13298 11831

Visakhapatnam 10136 10605

32
 Chennai 11708 10491

Tuticorin 6409 5368

Cochin 9953 10234

New Mangalore 13392 13266

Mormugao 16412 19155

Jawaharlal 24927 22265

Nehru

Mumbai 6947 6057

Kandla 13217 13067

Ennore 22070 28233

All Major Ports 9995 9926

3.4 Road and Rail Connectivity The projects on rails and

All the Major Ports in the
country are at present having
both road and rail connectivity.
However, the capacity and
quality of the existing
connectivity require
improvement so that the flow of
cargo in and out of the port is
smooth and efficient. The
Committee on Infrastructure had
approved the report of
Committee of Secretaries on rail
road connectivity of Major
Ports. As per the report each
major Port should preferably be
connected by a four-lane road
connectivity and double line of
road connectivity.
road connectivity are
implemented mainly by the
National Highways Authority of
India (NHAI) and Railways,
respectively. In a number of
instances, the ports have made
significant financial contribution
for execution of the connectivity
projects. For example, Kandla,
New Mangalore and Paradip
Ports have made financial
contributions in the
implementation of rail
connectivity projects
implemented by the Railways
through Special Purpose Vehicle
(SPV). Similarly, Paradip,
Chennai, Visakhapatnam, New
Mangalore, Tuticorin, Ennore
and Mormugao Ports have

33
 contributed in the SPV set by year. The table below gives the
NHAI for implementation of capacity and traffic in major
road connectivity projects. ports since 2001-02:-
However, for the rail and road
connectivity projects for the
International Container
Terminal (ICTT) in Cochin Port
financing is being done through
Government grant.

For expediting the

ongoing rail/road
connectivity projects and to
recommend new
connectivity, two
Committees have been set
up by Ministry of Shipping
namely; Apex Committee
and Operational
Committee.

3.4. Major Developments in Ports

3.4.1 Capacity at Major Ports

It has been endeavor of

Government to consistently
enhance the cargo handling
capacity of the Major Ports
keeping in view the projected
traffic for the country. The
aggregate capacity in major
ports as on 31.3.2008 was
532.07 MTPA. Thus the
favorable capacity – traffic
equation continued during the

34
 Year Aggregate Traffic in MT
capacity in
MTPA as on
31st March

2001-02 343.95 287.59

2002-03 362.75 313.45

2003-04 389.50 344.80

2004-05 397.50 383.75

2005-06 456.20 423.57

2006-07 504.75 463.78

2007-08 532.07 519.16

2008-09 574.77 530.36

MTPA: Million Tonnes per Annum

MT : Million Tonnes.

3.5 Besides the 12 Major Ports, Ports provide for an independent

there are 3 organisations under the
Ministry which are entrusted with port-
related matters.
3.5.1 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. Tariff Authority for Major
Authority to regulate all tariffs, both
vessel related and cargo related, and
rates for lease of properties in respect
of Major Port Trusts and the private
operators located therein. This
Authority is empowered not only to
notify the rates but also the
conditionalities governing application
of the rates. The jurisdiction of the
Authority is restricted to major port
trusts and private terminals operating
therein.

35

3.5.2 Andaman Lakshadweep
Harbour Works (ALHW)
Andaman Lakshadweep Harbour
Works (ALHW) a sub –ordinate 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 Islands and
Lakshadweep Islands. From its
inception, ALHW has been
implementing the 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
equipments under the funds provided
by Andaman & Nicobar
Administration and Lakshadweep
Administration.
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.

3.5.3 Dredging Corporation of

India

36
 CHAPTER – IV

SHIPPING

4.1. Introduction

Shipping industry is one of the most

globalised industries operating in a
4.2. NATIONAL SHIPPING
highly competitive business
BOARD:
environment that is far more
liberalized than most of the other
industries and is, thus, intricately
The National Shipping Board is a
linked to the world economy and trade.
permanent Statutory Body established
Indian shipping tonnage which was
in 1959 under Section 4 of the
only 1.92 lakhs Gross Tonnage (GT)
Merchant Shipping Act, 1958 to advise
on the eve of Independence now stands
the Government of India on matters
at 9.47 million GT with 974 ships as
related to Shipping including
on 31.12.2009. India has been a
development thereof. In terms of the
founder member of the International
aforesaid provision, the Board is re-
Maritime Organization (IMO), a
constituted after every two years.
specialized agency set up under the
United Nations primarily dealing with
the technical aspects of shipping The Board comprises 6 Members of
relating to Maritime Safety, Protection Parliament (4 from Lok Sabha and 2
of Marine Environment, Standards of from Rajya Sabha), 5 representatives
Training and related legal matters. The of Central Government, 3
representatives each of shipowners and
Directorate General of Shipping has
seamen and 5 representatives of other
been participating in various meetings interest including its Chairman.
of the IMO Committees, Sub-
Committees, Council and Assembly
and has actively contributed towards 4.3. DIRECTORATE GENERAL
the development of various OF SHIPPING, MUMBAI
Conventions, Protocols, Codes,
Guidelines developed by the IMO.

37
The Directorate General of Shipping,
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
section 7 of the Merchant Shipping
Act, 1958. Mercantile Marine
Departments comes under the
Directorate General of Shipping
4.4 Mercantile Marine Departments
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. 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,
38
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
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.
4.6 Shipping Offices at Mumbai,
Kolkata & Chennai:
The main functions of the Govt.
Shipping Offices established under
Section 11 of the Merchant Shipping
Act, 1958 are:
(i) To provide means for securing
the presence on-board at proper times
of the seamen who are so engaged.
(ii) To facilitate making of
apprenticeship to the sea service.
(iii) 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.
(iv) To transmit the complaint of any
dispute of a foreign seaman of a
vessel, registered in a country other
than India.
4.5 Seamen’s 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
term of the amended section 95 of the
M.S. Act, 1958 the business of the
Seamen Employment Offices include :
(i) Issuance of licence, regulating
and controlling the recruitment and
placement service providers.
(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
39
(v) Issue of Continuous Discharge
Certificate-cum-Seafarers Identity
Document (CDC).
(vi)) 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 Seamen’s
Welfare Fund Society (SWFS).
recruitment and placement service
providers.
(iv) Maintaining registers of seamen
in respect of the categories of seamen.
4.8 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.
4.9 Regional Office (Sails)
Mumbai/Tuticorin/Jamnagar :
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
Tindal’s permit to the Tindal of sailing
vessels, repatriation of standard
seamen due to sailing vessels
casualties, etc.
4.7 MARITIME TRAINING IN
INDIA
India has a long maritime tradition.
She is the 20th largest maritime country
in the world. The single largest
contribution 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. Presently
27,000 officers and 55,000 ratings are
employed on the Indian and foreign
flag vessels. 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
(4) There are 50 institutes
conducting Post sea courses.
4.10 INDIAN MARITIME
UNIVERSITY
An apex educational institution at
national level to meet the training,
education and research requirement in
the field of maritime education in the
country is a long felt need. After
continuous effort and perseverance the
Indian Maritime University (IMU),
established through an Act of
Parliament on 14th November 2008 as
a Central University, is poised to play
a key role in the development of
40
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
testament of the quality of education
and training received in India.
(2) 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
discipline.
(3) There are 125 Training Institutes
at present.
required human resource for the
maritime sector.
Her Excellency the President of India
is the Visitor and Dr. P. Vijayan is the
first Vice Chancellor of this
University. The governing authority
of the University comprises the Court,
Executive Council, Academic Council,
Planning Board and Board for
Affiliation and Recognition.
The IMU, first of its kind in India,
with its headquarters at Chennai and
campuses at Chennai, Mumbai,
Kolkata and Visakhapatnam and a
Centre at Cochin, has been providing
and promoting maritime studies,
training and research in all branches of
learning in the maritime sector. The
IMU offers graduate, post-graduate
and doctoral programmes to cater to
the need of maritime fraternity. It
offers one-year Diploma in Nautical
Science (DNS) Course leading to the
award of B.Sc. degree in Nautical
Science, 3-year B.Sc., degree in
The IMU encompasses under its fold
seven Government maritime training
and research institutes, viz., National
Maritime Academy, Chennai, Marine
Engineering & Research Institute
(MERI), Mumbai, Lal Bahadur Shastri
College of Advanced Maritime Studies
and Research, Mumbai, Training Ship
Chanakya, Navi Mumbai, National
Ship Design & Research Centre,
Visakhapatnam, Indian Institute of
Port Management, Kolkata and MERI,
Kolkata.
Set in lush sylvan grounds along the
East Coast Road, the Chennai Campus
houses academic infrastructure, hostel
and recreational facilities. The campus
boasts of a state-of-the-art ship
manoeuvring simulator and highly
equipped workshops.
The University’s Headquarters will
come up in 300 acres of land situated
between the East Coast Road and the
Rajiv Gandhi IT Expressway in
Chennai at an estimated budget
allocation of Rs.250 crores and the
foundation stone for the administrative
building was laid by the Hon’ble Chief
Minister of Tamil Nadu on 31st
December 2008. The Headquarters of
the University will house the academic
and administrative block spread over
41
Nautical Sciences; 4-year B.E. in
Marine Engineering, 4-year B. Tech in
Naval Architecture and Ocean
Engineering, 2-year M.B.A. in
Shipping & Port Management and 2-
year M.B.A. in International
Transportation & Logistics
Management.
on a sprawling 106 acres of land, and
the National Maritime Complex
comprising a Maritime Art Gallery,
Maritime Museum, Marine Food
Court, an International Convention
Centre with a 15,000 seating capacity
attached to a 5-Star Hotel, Catering
College with water sports and a golf
course.
4.11 Welfare Organisations
(A) Seamen’s Provident Fund
Organization, Mumbai:
(a) The Seamen’s Provident Fund
Scheme, the first social security
scheme for Indian Merchant Navy
Seamen, brought under statute by
enactment of the Seamen’s 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.
(b) The Seamen’s 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, who is the Chief
Executive Officer of the Board, is the
Secretary to the Board.
(B) NATIONAL WELFARE
BOARD FOR SEAFARERS:
(a) 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.
(b) The Board comprises 2
Members of Parliament (one from Lok
Sabha and one from Rajya Sabha), 2
representatives from Central
Government, 3 representatives each of
Ship-owners and Seafarers, 2 (MPSO) is a subordinate office under
representatives from Port Trusts, 1
non- official Member from the field of
42
Seamen’s Welfare of Public, 1
representative from Society interested
in Seamen’s Welfare including its
Chairman and Vice-Chairman.
(C) SEAFARERS' WELFARE
FUND SOCIETY
(a) The SWF Society is a Central
Organisation 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.
(b) 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.
4.12 MINOR PORT SURVEY
ORGANISATION
Minor Ports Survey Organization
the Ministry of Shipping, entrusted
with the responsibilities of carrying out
Hydrographic surveys in minor/major
ports and inland waters on agreed
programme to be decided by the
Hydrographic Survey Committee. The
Senior Hydrographic Surveyor is the
Head of the Office with its Head
Quarters at Navi Mumbai. The
administrative control of MPSO is
under Director General of Shipping,
Mumbai as its Head of the
Department.
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
CHAPTER – V
SHIPBUILDING AND SHIP REPAIR
43
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
country’s premier Shipping Line,
owning a fleet of 76 vessels of 29.24
Lakh tonnes GT i.e. 51.33 Lakh tonnes
DWT with a share of nearly 33% of
the total Indian tonnage.
The SCI has a consistent track record
of making profits and has been earning
substantial returns on its investment.
For the financial year 2008-2009, SCI
recorded “Total Earnings” of Rs.
4,564.5 Crores and a “Net Profit after
Tax” of Rs. 940.7 Crores. The
Company paid a dividend of 65% on
the increased paid-up share capital
after issue of bonus shares.
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 Ministry renders technical advice
the country, 6 under Central Public and formulates policies on matters
Sector, 2 under State Governments and
19 under Private Sector Undertakings.
Further details are given below: relating to development of
Shipbuilding and Ship repair industry
and floating crafts industry and also
Under Ministry of Shipping, for indigenous construction of fishing
Government of India vessels. This Ministry has a scheme of
giving grant-in-aid to educational and
research institutions for carrying out
• Hindustan Shipyard Limited, R&D activities in Shipbuilding.
Visakhapatnam
• Cochin Shipyard Limited,
Cochin National Maritime Development
• Hooghly Dock and Port Programme has envisaged setting up of
Engineers Limited, Kolkata
two International size shipyards, inter
alia, other policy measures for
Under Ministry of Defence development of shipbuilding and ship
repair industry.
• Mazagaon Dock Limited,
Mumbai
• Garden Reach Shipbuilders and 5.2. Cochin Shipyard Limited
Engineers Limited, Kolkata
• Goa Shipyard Limited, Goa Cochin Shipyard was incorporated in
the year 1972 as a fully owned
Government of India Undertaking. In
Under the control of State
the last three and a half decade the
Governments company has emerged as a forerunner
in the Shipbuilding and Ship repair
industry.
• Alcock Ashdown Co. Ltd.,
Gujarat
Cochin Shipyard can build and repair
• Shalimar Works Limited,
the largest ships in India viz upto
Kolkata, West Bengal
1,10,000 DWT in Shipbuilding and
1,25,000 DWT in Shiprepair. The

44
yard has built two of India’s largest
Aframax tankers each of 95,000 DWT
for the Shipping Corporation of India
Ltd and has successfully undertaken
repairs to a number of strategically
important ships like the Aircraft
Carrier of Indian Navy, Oil rigs of
ONGC etc. In recent years Cochin
Shipyard has been successful in
gaining a foray into the world
shipbuilding market. These export
orders are from internationally
renowned companies in Western
Europe and USA. The yard is also
constructing the prestigious Aircraft
Carrier for the Indian Navy.
Cochin Shipyard trains graduate
engineers to become marine engineers
who later join ships, both Indian and
Foreign as 5th Engineers.
5.3 HINDUSTAN SHIPYARD
LIMITED
Hindustan Shipyard Ltd is located in
the picturesque port city of
Visakhapatnam on the East coast of
India. It was set up in the year 1941 by
the Scindia Steam Navigation
Company and later taken over by
Government of India in 1952. It
became a government enterprise in
45
July 1961. It is one of the oldest and
largest public Sector shipyard for
shipbuilding & ship repairs and is an
accredited ISO 9001-2000 company.
Hindustan Shipyard Ltd. has so far
built 151 ships and repaired nearly
1830 ships. It offers the most
comprehensive service under one roof
in design, construction, conversion and
repairs of merchant ships naval vessels
and oil rigs. The shipyard has also
built Drill Ship, Offshore Platform and
support vessels for the oil sector.
5.4 Layout and infrastructure
The yard is neatly laid out in an area of
46.2 hectors (3,00,000) square Meters.
The infrastructure caters for
independent shipbuilding & ship repair
activities. The shipbuilding has state of
art steel processing, fabrication,
assembly lines, engineering workshops
and material handling equipment. The
management has initiated a number of
measures to upgrade its workshops,
plant and machinery in almost all areas
which are now showing results in
improved productivity. The shipyard
has also procured the latest plasma
cutting machines, pipe bending
machines and manufacturing facilities
for high pressure system.
The yard has about 500 qualified and
talented engineers and a workforce of
over 2000 experienced personnel.
Training programmes are regularly
conducted for skill upgradation, better
productivity and safety.
5.5 HOOGHLY DOCK & PORT
ENGINEERS LIMITED,
KOLKATA
(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”.
The Government of India took it over
so as to utilize the available
infrastructure and increase the capacity
46
The yard is also laying greater thrust to
build ancillary industries around
Visakhapatnam and developing its
vendors base in the city for ship
building and repair.
for shipbuilding in national interest.
The nationalized Company had
remained with the Ministry of Industry
till 27.07.1986 and was thereafter
transferred to erstwhile Ministry of
Surface Transport (now Ministry of
Shipping)
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.
The yard has the capacity to build
vessels of about 400-500 passengers
cum 100-ton cargo carrying capacity
and also 300ton capacity Cargo
Vessel.The company also undertakes
repair of vessels at KOPT dry docks
from an outfit adjacent to Kidderpore
Dock Complex of Kolkata Port Trust.
CHAPTER – VI
DIRECTORATE GENERAL OF LIGHTHOUSES & LIGHTSHIPS (DGLL)
DGLL, located in Noida, is headed by
Director General of Lighthouses &
Lightships, who advises the
Government of India in the matters
relating to Lighthouses. DGLL
provides service to enable the mariner
47
The Company has built 104 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.
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.
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
48
up-keep of general Aids to Navigation
are 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.
 CHAPTER-VII

INLAND WATER TRANSPORT

7.1 Inland Water Transport (IWT)

mode is cost effective, fuel efficient
The IWAI set up on 27th October
and climate friendly mode of transport
1986 vide Inland Waterways Authority
for bulk cargo and over dimensional
of India Act, 1985, for regulation and
cargo. However, development of IWT
development of inland waterways for
infrastructure remained neglected for
the purposes of shipping and
long and consequently it does not have
navigation. It also advises Ministry of
significant share in transport mix.
Shipping on matters related to IWT.
Efforts are now being taken to develop
IWAI had established National Inland
this mode by providing and
Navigation Institute at Patna to impart
maintaining basic infrastructure.
training in IWT field so as to get
skilled man power for inland vessels
and undertaking various other
Only those waterways which are
activities in a professional manner.
declared as National Waterways by the
Act of Parliament come under the
purview of Central Government while
7.3 CENTRAL INLAND WATER
the other waterways remain under
TRANSPORT CORPORATION
respective State Governments. There
(CIWTC)
are five National Waterways

The Central Inland Water Transport

Corporation Ltd. (CIWTC) was
7.2. Inland Waterways Authority incorporated in 1967 for transportation
of India (IWAI): of cargo by barges through Inland

49
Waterways in the country and through
the routes identified in the Protocol on
Inland Water Transport between India
and Bangladesh. The corporation is
headed by a full time Chairman – cum
– Managing Director.
7.4. Indo Bangladesh Protocol on
Inland Water Transit and Trade:
CHAPTER-VIII
CHARTERING
8.1Introduction
Chartering Wing (Transchart) in the
Department of Shipping in accordance
with the Government policy /
procedure is responsible for making
shipping arrangements
transportation of Government owned /
controlled cargoes against FOB/FAS
imports of Government. The shipping
arrangements are centralized with the
Chartering Wing. The services of the
wing are also open to private sector.
An Inland Water Transit and Trade
Protocol exist between India and
Bangladesh under which inland vessels
of one country ply on the specified
routes of the other country. A meeting
of Standing Committee of this Protocol
was held on 28-29 October 09 at New
Delhi and various issues regarding
enhanced utilisation of this mechanism
were discussed and decisions taken.
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
for
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.
8.2 Highlights of 2009-2010
50
 During the period under report
from 1st January, 2009 to 30th Nov.,
2009, 440 Ships were finalized by the
Chartering Wing for shipment of total
quantity 256.18 lakh MT of
Government Cargoes. 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. Out
of total 440 ships, 138 were Indian
ships which carried approximately
99.41 lakh MT i.e. approx 38.80% .
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.
Chartering Wing has been
successfully chartering vessels for the
shipment of urea from the port of Sur
51
(Oman) to India from M/s OMIFCO
on account of Department of
Fertilizers fully meeting their
requirement.
Chartering Wing also chartered
specialized vessel for 29th Indian
Antarctica Research Expedition along
with an Ice Breaker as per the
requirement of the Department of
Ocean Development.
The statement indicating the quantities
of Government owned / controlled
cargoes for Twhich the shipping
arrangements were made by this wing
during the period 1st January, 2009 to
30th Nov. 2009 is placed at Annexure-
XVI
Levying of 1% chartering service
charges on freight / dead freight /
demurrage / charter hire earned by
Indian companies on vessel fixed
through the chartering wing
(Transchart) for carriage of import /
export cargoes was made applicable
from February, 1993. Since then the
earning on this account has already
totaled up to approx. Rs. 128.47 crore
(upto Nov.,09), which has been
deposited in the Consolidated fund of
India.
8.3 FREIGHT MARKET
DRY CARGO
The Baltic Dry Index (BDI) is a
daily weighted average of prices of
shipping raw materials and is one of
the leading indicators of global
economic activity, as it measures the
demand to move raw materials, which
indicates production planning and
industrial activity worldwide. BDI
indicates the direction in which end
process of items are heading that
depend on raw material, which go into
their making viz. coal, iron ore and
other ores, phosphates, fertilizers
besides grains and animal feeds, etc.
The BDI opened the year 2009
with 773 on 2nd January 09, when the
world was in the grip of global
economic recession and moved to a
seven month high on 26th May to 2942
indicating some signs of global
recovery. The index showed a
continuous gradual climb through the
52
year with slight fluctuations every now
and then mainly attributed demand
adjustments due to carryover stocks
and port congestions mainly at iron ore
and coal handling facilities at Brazil,
China and Australia. BDI was at 3063
on 22nd December, 2009.
What direction the market will
take in the year 2010 is very difficult
to forecast as full global recovery of
global economies is not seen which
will create demand for commodities to
move across the globe on the sea lanes
coupled with expected deliveries of
ships expected into the market from
2010 onwards. Analysts point out
though there were some new building
order cancellations or adjustments for
delayed delivery etc., the shipping
markets are expected to remain flat at
the levels prevailing at the end of
2009.
8.4 TANKER MARKET
The tanker segment of the shipping
market remained subdued due to
drastic fall in the demand of petroleum
products in the western countries. It
fluctuated throughout the year 2009
The one reason attributed to the
due to seasonal variations in demand
shipping market revival during 2009 is
for various type to tankers. (BCTI)/
increased Chinese and Indian demand
((BDTI) (Baltic Clean Tanker
for iron ore and coal on the dry side
Index/Baltic Dirty tanker Index) which
and in the tanker segment, increase in
gives an indication of the market
demand from USA and Far East
segment opened the year with 611/831
markets from Arabian Gulf region.
respectively on 5th January, 2009
moved to 487/479 on 26th May, 2009.
These indices were at 629/810 on 22nd
December, 2009.

53
 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-
reparing 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 meeting on
Port and IWT Sector and also with the
work on the policy for Maritime Sector
covering Ports, Shipping and IWT
modes.
Apart form publications,
transport Research Wing coordinates
with various other organizations like
Central Statistical Organization,
National Sample Survey Organization
and State Government etc. Besides
transport Research Wing is involved in
various Committees relating to
transport sector set up by the
Government.
The following publications have
been released during the year:
(i) Basic port Statistics of India
– 2007-08
(ii) Half Yearly update on Indian Port
Sector for period ending 31st March,
2009 and 30th September, 2009
(iii) Indian Shipping Statistics -2007
(iv) Statistics of India’s Ship-building &
Ship-repairing Industry – 2005-06 &
2006-07
(v) Statistics of Inland Water Transport -
2006-07
The work relating to the
preparation of publications “Basic port
54
Statistics of India – 2008-09”. “Indian the economy well before any other
Shipping Statistics 2008”, Statistics of macro parameter becomes available.
India’s Ship building & Ship-repairing Thus is can provide vital clues to
Industry 2007-08” and “ Statistics of policy makers which can facilitate
Inland Water Transport 2006-07” are appropriate policy correctives.
in progress. Besides, standardized data can serve as
bench marks for comparisons and
evaluation. This is more so in the case
A chart showing the growth of of efficiency indicators like turn
Indian tonnage (as on 31st December, around time, pre-berthing detention
2007) for coastal & overseas vessels is etc. Also there is a need for additional
at Annexure III. The cargo carried by requirement of data and performance
Indian overseas fleet during 2008-09 is indicators on account of changes in
given at Annexure IV. cargo composition and policy changes
during last one and half decade.
Keeping in view these issues, the
Ministry of Shipping has set up a
Working Group under the
9.2 Working Group on chairmanship of Adviser (Transport
strengthening of major Port Research) for Strengthening of Major
Statistics Ports Statistics with the following
terms of reference:

Timely availability of correct

data is vital for monitoring the trends (a) To look into the concepts, definition
in the economy or performance of a and methodologies followed by port
sector and policy formulation. Trends authority in compilation of sea-borne
in cargo traffic also serve as a cargo & physical performance
barometer of economic activity. indicators.
Timely and correct availability of data (b) To Suggest uniform
procedures/methods for compilation
is of utmost importance as it can serve
and dissemination of various physical
as a barometer of economic activity. and financial performance indicators to
Timely and correct availability of data facilitate comparison and
is of utmost importance as it can serve benchmarking productivity and
as an early warning for future trends in efficiency.

55
(c) To recommend/suggest
efficiency/performance indicators
relating to container handling.
(d) To suggest time frame for timely
compilation and finalization of port
statistics.
Two meetings of the Working
Group have been held. The working
Group discussed the issues involved in
strengthening major port statistics and
also obtained information from the
major ports on various parameters/data
being collected; formats and basis of
collection, definition and concepts
underlying the various data categories,
operational/ financial indicators being
generated. The working Group,
keeping in view the enormity of the
56
task has set up two Sub Groups- one
for Physical ;parameters and second
for Financial parameters has also been
held wherein it was felt that in addition
to the concepts and definitions on
financial parameters presently being
followed as per the accounting norms
and in line with the instructions of
Comptroller and Auditor General of
India, there is a need for additional
guidelines to enable port management
to timely assess real financial
health/soundness of its activities and to
take necessary measures for improving
their efficiency i.e. providing service at
optimum cost to the EXIM trade. The
additional guidelines were tentatively
firmed up.
 CHAPTER-X
ADMINISTRATION AND FINANCE
10.1 Administration
Administration Wing of the Ministry
of Shipping consists of Establishment
Section, General Administration
Section, O&M Section and Cash
Sections. The Administrative Wing is
entrusted with the service and
administrative matters of 313
employees (Group A, B, C & D) of
this Ministry, House Keeping jobs and
the drawing and disbursing of salaries
and other expenditure. Efforts and
made to manage the various Cadres as
per the instructions and guidelines
issued by Department of Personnel &
Training, Union Public Service
Commission, Ministry of Finance and
Department of Administrative Reforms
and Public Grievances, etc.
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
57
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
XVII and XVIII respectively.
With the introduction of e-Service in
various Ministries/Departments as a
part of 100 days Programme, the
Ministry of Shipping made all efforts
to make the project successful. E-mail
IDs were created in the NIC domain
for each employee of the Ministry and
accordingly, their Unique
Identification Number was created by
the NIC. Then the herculean task of
converting the entire existing service
books into the electronic from was
taken up. Ministry of Shipping having
more than 300 employees has achieved
the target within the stipulated time.
Pension Papers of the retirees
submitted to the Pay & Accounts
Officer well in time and the retirement
benefits paid on the last working day Tournament 2009-10 held in New
of the retiring officer/official. Delhi.

A Welfare Cell also exists in the

Ministry of Shipping which looks after
Important Days of National
all the welfare measures activity of the
Importance viz. Anti-Terrorism Day,
officers/officials in the Ministry. The
Communal Harmony Day,
farewell parties are organized by the
Sadhbhavana Diwas, Vigilance
Welfare Cell of the Ministry to bid
Awareness Week, Red Cross Day, Red
farewell to retirees and a Memento as
Cfross Raffle Draw, etc. observed and
well as a Gift is also presented.
"Pledge" taken by the employees of
the Ministry of Shipping.
Contributions were also raised and
In the Ministry of Shipping various
collected towards "Flag Day". The
welfare measures in respect of welfare
essays competition both in Hindi and
of women employees of the Ministry
English were conducted during
were undertaken. A complaint
Communal Harmony Week/Vigilance
Committee on Sexual Harassment has
Awareness Week. The participants are
been set up to look after the grievances
rewarded for their participating in
of women employees relating to
these events.
sexual/gender based harassment.

10.2 Setting up of Information &

A Recreation Club also exists in the
Facilitation Counter
building where indoor games facilities
viz. Table Tennis, Carrom etc. and a
television are available for the
It has always been the policy of
entertainment of the employees. Apart
Government of India to take all
from this, gymnasium facilities are
possible initiatives to provide effective
also provided. A Treadmill, Cycling,
and responsive administration so as to
Weigh machines are installed in the
efficiently serve the citizens when they
said gymnasium. In addition to above,
deal with the Government. In order to
Cricket Team of the Ministry
create awareness and give information
participated in Inter-Ministry Cricket

58
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.
Queries received in person &
telephonically at the Information &
Facilitation Counter (IFC) and all the
queries are promptly replied/dealt
with. The computerized system
developed by NIC is operational in
Information & Facilitation Counter.
10.3 Formation of Citizens’ charter
In order to give up-to-date
information, promote accountability
and improve the Public vision of this
Department including the
attached/subordinate offices and public
sector undertakings under the
59
administrative control of this
Department, a Citizens charter has
been prepared in consultation with
Department. Of Administrative
Reforms and Public Grievances and
has been uploaded on the website of
this Ministry. The same has been
updated. JS (P&A) has been
nominated as the Nodal Officer of this
Department for the Citizens charter.
10.4 Introduction of Change
Management for Good Governance
In order to bring out good governance,
this Ministry has been implementing
various training programmes with the
assistance of National Informatics
Center (NIC) in Computers and
Internet in consultation with
Department of Administrative Reforms
and Public Grievances. DS
(Administration) has been designated
as IT Manager of this Ministry to
monitor and carry out the agenda for e-
Governance and good governance
including setting up of “Governance
Knowledge Center” (GKC) in this
Department.
10.5 Departmental Record Room
The Departmental Records 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 14,500 files in custody.
As custodian of the records the DRR
has handled the following work:
• Action on Review of Recorded
files:
The files due for review during
the year are identified in the
beginning of January every year
and segregated in different bundles.
During the period, about 1500 files
were reviewed and 200 files have
been sent to Sections/Desks for
review.

• Action on Recorded files:

(i) The recorded files received in 10.6. Quarterly Executive

bundles from sections/Desks are Summary:
checked as per provisions of
Central Secretariat Manual of
Office Procedure (CSMOP), and Necessary data relating to disposal of
those not found in order are work was collected from various units
returned to the Sections/Desks of the department and analyzed. In
concerned for rectification. addition, on the direction of
DAR&PG, “Executive Summary for
(ii) The files received as per Central
Secretary” is reviewed by Secretary on
Secretariat Manual of Office
quarterly basis and follow-up action is
Procedure are entered in the
taken as a consequence of the review.
respective record Registers
(Section-wise) segregated year-
wise, Head-wise and stacked in
This Ministry has initiated the action
respective racks in a neat and
and taken efforts to launch and
systematic position.
implement the e-Governance systems

60
effectively in this Department
including attached and Subordinate
10.8 CPGRAMS: In consonance
offices like DMIS(Web-based file
with the thrust on transparency in the
tracking system), CPGRAMPS (Public
functioning of the government, a cost
Grievances Redressal System) and
effective monitoring software, namely
Governance Knowledge Centre (GKC)
Centralized Public Grievances
etc. to promote accountability and
Redressal and Monitoring System
Citizen Centric Governance with the
(CPGRAMS), for monitoring and
proactive support of NIC Cell in the
disposal of Public Grievances cases
Ministry.
has been functioning in this
Department. It has been implemented
in almost all the Attached/Subordinate
10.7 The grievance redressal set-up
offices of this Ministry to closely
in the Ministry is headed by the Joint
monitor and evaluate the quality of
Secretary (Ports) as ‘Director of
disposal of Public Grievances
Grievances’. Prompt action is taken
regularly and minimize the delays in
on the grievance cases by referring
decision making strategy. NIC has
them to the concerned administrative
implemented CPGRAMS.
Units, Port trusts, PSU etc. for early
redressal. Periodical review is carried
out by the Director of Grievances for
10.9 DMIS: Document Management
early redressal of the pending
Information system (DMIS) has been
grievances.
installed and most of the staff and
officers have been trained by Officials
of NIC. For effective utilization of
During the period grievances received
DMIS, all the computers in the
from Department of Administrative,
Department are connected by Local
Directorate of Public Grievances,
Area Network (LAN). All Major Port
P&PW and individuals were promptly
Trusts, Attached/ subordinate offices
attended to and referred to the
and Public Sector Undertaking of the
concerned officers for time-bound
Department have also been requested
redressal. Out of these 44 Grievances
to install this system with the support
have remained pending and are under
of NIC in their organization. The
active consideration at the end of the
reports pertaining to status of
year.

61
PMO/VIP references generated by the
System is being reviewed in the
weekly/monthly meetings taken by
Secretary and other senior Officials.
A website
(http://shipping.nic.in) of the
department has been launched in
NIC’s server to make it more
informative and user friendly. The
website has been updated and
redesigned from time to time.
10.10 Finance Wing
The Finance wing is headed by
an Additional Secretary and Financial
Adviser.
As per the scheme of the
Integrated Financial Wing, the
Financial Adviser is closely associated
with the Administrative Department in
rendering financial advice on various
matters within the jurisdiction of the
Administrative Department. He
contributes in all the activities
pertaining to planning, programming,
budgeting, monitoring and evaluation
of various schemes/ programme of the
Ministry. The duties of the Financial
62
Adviser are broadly highlighted as
under:-
(i) Co-ordinates furnishing of
material to the Department related
Parliamentary Standing
Committee on Transport &
Tourism to consider the Detailed
Demands for Grants and to the
Ministry of Finance on budgetary
matter;
(ii) Chairs the pre-PIB meetings
relating to all projects requiring
decision at the level of PIB;
(iii) Scrutinizes all proposals to be
placed before Expenditure
Finance Committee/Public
Investment Board & also extends
Secretariat assistance for
PIB/EFC meetings chaired by
Secretary (Expenditure);
(iv) Renders financial advice
including concurrence on the
proposals and schemes emanating
from different administrative
wings of the Ministry within the
delegated powers of the Ministry;
(v) Extends necessary co-operation in
the Preparation of Five Year Plans
and Annual Plans;
(vi) Assesses the Internal Resources
(IR) and Extra Budgetary
Resources (EBR) of the Public
Sector Undertakings and
Autonomous Bodies under the
administrative control of the
Ministry;
(v) Scrutinizes and vets the budget
proposals of the various
Autonomous Bodies and PSUs.
(vi) Scrutinizing and Sanctioning of
proposals from Ports, Shipping
and Inland Water Transport
sectors.
(vii) Performs FRBM related tasks by
providing requisite information
and material as inputs for Finance
Minister's quarterly review of
fiscal situation to be presented to
the Parliament.
(viii) Providing assistance to the
Ministry in evolving strategies for
optimizing private sector
investment.
(ix) Ensuring expenditure
management with release of funds
linking these to Schemewise/
Projectwise/ Performances.
(x) Periodically reviews various non
tax revenue receipts in the context
of market trends and other
sectoral developments giving his
considered comments and
recommendations regarding the
reasonableness of return to the
Government on the deployed
public resources.
63
(xi) Monitoring of Assets and
Liabilities and corrective action
taken on an ongoing basis.
(xii) Reviews plan schemes based on
the Zero Based Budgeting
Methodology with a view to
achieving optimal expenditure;
(xiii) Evaluates progress/performance
of the Plan projects and other
continuing Plan schemes;
(xiv) Ensures observance of financial
discipline, enforcement of the
economy measures and the
assessment of the financial
viability of all proposals;
(xv) Monitors the settlement of audit
objections, inspection
reports/reviews, draft audit papers
etc. and ensure prompt action on
Audit Reports and Appropriation
Accounts, Reports on Public
Sector Undertakings.
(xvi) Screens all the proposals which
are forwarded to Ministry of
Finance.
10.10.1 In addition to rendering
financial advice, the Financial
Adviser also,
(i) Ensures that the schedule for
preparation of Budget is adhered to by
the Ministry and the Budget is drawn
up according to the instructions issued
by the Ministry of Finance from time
to time;
(ii) Scrutinizes the budget proposals office is primarily responsible for the
before sending them to the Ministry of following major tasks:-
Finance;

(iii) Ensures that the departmental

1. Payments:
accounts are maintained in accordance
with the requirements under the ¾ Making Sanctioned Payments on
General Financial Rules; behalf of the Ministry after
conducting presented pre-check of
(iv) Monitors and review the bills as per approved Budget.
progress of expenditure against the
sanctioned grants.
¾ Release of authorization to other
Ministries to incur the expenditure
on behalf of the Ministry.
10.10.2 ACCOUNTS AND 2. Receipts:
BUDGET
¾ Budgeting, accounting and
reconciliation of the receipts of
Ministry of Shipping.
The Accounts and Budget Wings of
the Ministry are functioning under the
Chief Controller of Accounts. The ¾ Monitoring the repayment of loans
and interest thereof received from
office of the Chief Controller of
State Governments and other
Accounts is inter-alia responsible for PSU’s. The payment on account of
making all authorized payments of the Grants-in-Aid, Loan, Subsidy and
Ministry, compilation of Monthly and equity to Public Sector
Annual Accounts, conducting internal Undertakings, Port Trusts and
audit of all the units under the Ministry International Maritime
to ensure compliance of the prescribed Organisation.
Rules, rendering technical advice to
the Ministry on financial and 3. Submission of Accounts and
accounting matters, cash management Reports:
and coordination with the Controller
General of Accounts, C&AG, Finance ¾ Preparation of monthly accounts,
Ministry and other related agencies. Finance Accounts Annual
The Chief Controller of Accounts Appropriation Accounts, and
Statements of Central Transactions

64
 and their submission to the
Controller General of Accounts,
Ministry of Finance, Department of
Expenditure, Government of India.
¾ Monitoring of Internal Extra
Budget Resources (IEBR) and its
submission to office of the CGA.
¾ Monitoring and submission of
mandatory information as per
Fiscal Responsibility and Budget
Management (FRBM) Act and
Rules.
¾ Preparation of Management
Information Reports based on
accounting, budget & audit data for
submission to various authorities.
¾ Preparation of financial statistics on
monthly basis regarding receipts
and expenditure for upload on
Ministry’s website.
4. Budget:
¾ Preparation and submission of
Annual Budget Estimates and
Revised Estimates, re-appropriation
of funds of the Ministry.
Coordination with Ministry of
Finance and other Departments in
all the budget matters.
65
¾ 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’.
5. Internal Audit
¾ Internal Audit/Inspection of the
Ministry and Regional Offices
under Ministry of Shipping.
¾ Preparation of an Annual Internal
Audit Report of the Ministry.
¾ Preparation of Internal Audit
Manual is under process and is
being submitted for approval to
CGA’s office.
¾ Apart from normal Internal Audit
work the work of Risk based audit
is being started. In this line CGA
with the help of INGAF giving the
training to the officers as in the
recent times in both Corporate
word as well as in the Public Sector
Management, due to more public
consciousness and demand for
value for money, the management
in both Private Sector and Public
Sector in advanced countries are
under constant pressure to run their
 business more effectively, CPFM: Contributory Pension
efficiently and economically. Fund Management
System for capturing the
pension contribution of
Employees who joined
6. COMPUTERISATION OF Govt. Service on or after
ACCOUNTS: 01st January 2004.

With a view to eliminate the E-Lekha: A web based application

delay in compilation of Accounts and
to provide the information on
expenditure accounts, on timely,
accurate basis the office of Chief
Controller of Accounts at present is
implementing various software
packages like COMPACT,
CONTACT, CPFM, E-Lekha etc.
COMPACT: Comprehensive software
package for Expenditure
Accounts covering
major accounting
functions i.e. pre-check,
GPF, Budget, Pension
and Compilation.
CONTACT: Used in Principal
Accounts office for
compilation of Monthly
Accounts.
for generating
daily/monthly of MIS of
Accounting information.
E-Payment: A new Pilot Project of
payment and receipts of
Government Departments
through electronic media
has been initiated by office
of the CGA. All the PAOs
will soon implement the e-
payment system to bring
out higher operation
efficiencies, faster
realization of funds and
prompt reconciliation of
payment and receipts.
10.10.4 The position of
savings/excess in respect of above
mentioned Grant No. 86 for the year

66
2008-2009 has been reflected in
Annexure-XIX. The Headwise Details
of Receipts as per the Statement of
Central Transaction (SCT) for the last
three year have been reflected in
Annexure-XX and the Details of
expenditure for the last three years
have been reflected in Annexure –
XXI.
10.4.4 Outstanding ATNs
There are three outstanding ATN Paras
on behalf of Ministry of Shipping as
listed below:-
i) Para 7.13 1 of 2006 –
Unnecessary Supplementary
grant.
ii) Para 6.10 1 of 2007 –
Disbursement made in last
quarter/March.
iii) Para 7.3 1 of 2007 – Excess
expd. over available
provision.
These paras are outstanding as on
date due to non receipt of proper
replies from the concerned
Departments/Wings. As and when the
material in r/o ATNs received, the
ATN paras will be prepared for
submission to DGACR for wetting.
67
10.5 DEPARTMENTAL
ACCOUNTING
ORGANIZATION
10.10.5 ACCOUNTING SET UP
The accounting division of the
Ministry of Shipping is under the
overall charge of the 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 of the Chief Controller of
Accounts, one Under Secretary
(Budget), one Accounts Officer
(Budget), one Controller of Accounts,
Two Assistant Controller of Accounts,
Six Pay and Accounts Officers, One
Principal Accounts Officer and other
manning offices located at Delhi,
Kolkata, Mumbai and Noida. The cash
branches of the Secretariat are also
working under the overall supervision
of the Chief Controller of Accounts.
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 pace of
expenditure on various programmes
and schemes. The monthly compilation
of accounts and the receipt and
payments are now computerized in
phased manner.
The Budget Division under the
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.
The budget of the Ministry of
Shipping, is presented to the
Parliament in the form of following
Demands for Grants.
68
Grant No. 86 – Ministry of Shipping.
Position of saving/excess in respect
of above-mentioned grant for the year
2008-09 has been reflected in
Annexure-I. The Source and Use
(Application) of funds for the year
2008-09 have been reflected in
Annexure- XX.
• 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 (Annexure-XXI)
 was laid on the strengthening of
vigilance machinery in various
10.10.6 VIGILANCE
organizations under the Ministry of
Shipping particularly the Port Trusts.
Punitive action has been taken
The Vigilance Wing of the
wherever required in consultation with
Department coordinates and supervises
CVC against the delinquent officials.
the vigilance activities within the
Ministry as well as in respect of the
PSUs and autonomous bodies under its
As a result of active monitoring
administrative control. The Wing is
and follow-up, a large number of cases
headed by the Chief Vigilance Officer
were finalized during the year.
(CVO) of the rank of Joint Secretary.
He is appointed with the approval of
the Central Vigilance Commission.
During the Vigilance Awareness
Week a pledge to eradicate corruption
in all spheres of life was administered
There are 33 attached/ subordinate/
to the staff and officers of the
PSU/ autonomous bodies under the
Department. An essay competition
Department and each organization has
was also organized.
either part-time or full-time CVO. The
part-time CVOs are appointed from
amongst the offices of the concerned
Vigilance activities in various
organization in
organizations under this Department
consultation/concurrence with the
are being reviewed periodically
CVC. The full-time posts of CVOs,
through various returns and also
wherever such posts exist, are filled-up
through interactions with CVO/Head
from officers of organized services
of the Organisations.
through DOP&T.

10.10.7 RTI
Special emphasis has been laid on the
role of preventive vigilance including
simplification of procedures and use of
e-technology etc. Special emphasis In order to ensure greater and
more effective access to information,

69
Right to Information Act 2005 is
implemented in letters and spirit in the
Ministry of Shipping with the object to
provide for setting out the practical
regime of right to information for
citizens to secure access to information
under the control of this Ministry
including attached and subordinate
offices etc. The following mechanism,
consistent with the provisions of the
Act function in the Ministry.
(i) RTI applications, for the
convenience of applicants, are
received at the facilitation
counter of this Ministry and by
post in RTI Cell or the Officers
as well directly.
(ii) Applications and appeals
thereto, if any, are registered
centrally and their timely
disposal monitored monthly and
quarterly by RTI Cell and also
CPIO.
CPIO/ AA designated
No. of applications received/disposed by CPIO
No. of Appeals/references received/disposed by
1st AA
No. of 2nd Appeals/references received from
70
(iii) Annual information is compiled
and information furnished to the
Central Information
Commission.
(iv) CPIO/AAs are designated and
notified in Gazette of India as
and when changes take place
stating their names, designation,
telephone/fax number etc. They
are disploaced in the notice
board and uploaded in the
website of the Ministry.
(v) Information is generally
provided in the form it is asked
for except in the cases where
exemptions clauses of RTI Act
are attracted.
(vi) Implementation statistical data
for the year 2009-10 are as
follows. (position as on
31.12.2009)
4
141
5
3
CIC and disposed.

Amount of Fee/additional charges collected Rs.1070/-

Rs.2756/-

71
 CHAPTER-XI

OFFICIAL LANGUAGE

72
11.1 Progressive use of Hindi

Hindi Section is working as a nodal agency for enhancement and development of

Rajbhasha in the Ministry. The function of Hindi Section is to see the compliance of
Official Language Policy Act, 1963, Rules, 1976 and the instructions received from
the Department of Official Language in the Ministry as well as in the Offices,
Corporations, Public Undertakings and the Autonomous Bodies under the control of
Ministry of Shipping. At present, this section is functioning under supervision of the
Joint Director (Official Language) with the assistance of an Assistant Director
(Official Language) and other supporting staff. To ensure the compliance of all the
relevant provisions contained in the aforesaid Act/Rules, an Annual Programme is
issued by the Department of Official Language, which is circulated among all the
officers, sections, as well as the offices, Public Undertakings, Corporations and
Autonomous Bodies under the control of this Ministry.

11.2 Compliance with section 3(3) of the official languages act

With a view to ensure full compliance with the provisions of the Section 3(3) of the
Official Languages Act in the Ministry, all the documents covered under this rule was
issued in bilingually form.

11.3 Compliance with the rule 5 of the official languages rules

With a view to ensure full compliance with the Rule 5 of the Official Language Rules
in the Ministry, all the letters received in Hindi were replied to in Hindi.

11.4 Originating correspondence in Hindi

190
Although this Ministry is yet to achieve the target fixed for the correspondence in
Hindi with Regions "A", "B" and "C", there is a partial increase regarding
correspondence in comparison to previous years. Hindi Section receives the quarterly
progress report of Hindi from all the regional offices on regular basis and these reports
are reviewed. The offices are apprised of their shortcomings and proper guidance to
overcome the difficulties and shortcomings is also given to them.

11.5 Training in Hindi / Hindi

Stenography / Hindi typewriting

Keeping in view the directions issued by the Department of Official Language, all the
officers/ members of the staff of the Ministry have been trained in Hindi Stenography/
Hindi Typewriting.

11.6 Translation of manuals/ codes/ procedural literature

The translation of manuals /codes /procedural material in the Ministry has since been
completed.

11.7 Provision of bilingual mechanical/ electronic aids

Hindi soft-ware has been provided in all PCs to facilitate bilingual typing.

11.8 Official language inspection, olic meetings and Hindi Salahakar Samiti

(i) As per the instructions received from the Department of Official Language, all
Offices, Corporations/Undertakings and Autonomous Bodies located at Delhi
and outside under the control of Ministry of Shipping are inspected on regular
191
 basis to view the status of Hindi. During the inspection special meetings are
held with Higher officers of the concerned office to discuss the difficulties
being faced by them in implementation of Hindi. Recently a Joint inspection of
the offices located at Delhi was held. By the end of the financial year
inspection of 10 offices is expected to be completed. Apart from this inspection
of 11 sections of the Ministry was also organised during the year.
(ii)Regular meetings of Official Language Implementation Committee of the
Ministry are being organised and implementation of Hindi in the Ministry is
regularly reviewed in these meetings. Hindi Salahakar Samiti of the Ministry is
being reconstituted.

11.9 Celebrations of Hindi pakhawara and organisation of Hindi workshops

Hindi "Pakhawara" was celebrated in the Ministry from, 14.09.2009 to 20.09.2009.

During this Pakhawara, various competitions were held including Hindi Essay
Writing, Hindi Noting and Drafting, Hindi extempore speech, Hindi good handwriting
for Group ‘D’ employees, Hindi Quiz and Hindi Antyakshari were conducted and
Officers/Employees of the Ministry participated in these competitions with great zeal.
A Hindi workshop was also organised during this period.

The prize distribution function under the Chairmanship of the Secretary (Shipping)
was held on 28.10.2009 to award the winners of the competitions and 77 awards were
given to the winners.

Besides, Hindi Day was celebrated on 14.09.2009.

11.10 Incentive schemes

As per the directives of the Department of Official Language, various incentive

schemes have been introduced in the Ministry to promote progressive use of Hindi.

192
During the year, 03 employees of the Ministry were given cash awards under the Cash
Award Scheme for promoting noting and drafting originally in Hindi.

11.11 Purchase of Hindi books

During the year, Hindi books were purchased in an adequate number according to the
norms prescribed by the Department of Official Language.

11.12 Rajbhasha shield Yojna and publication of house magazine ''Nautarani''

Under the scheme of Shield Yojna 10 Shields and 10 certificates for the year 2008-09
were distributed to various offices, Public Undertakings, Corporations and
Autonomous Bodies under the control of the Ministry by the Hon. Minister of State
for Shipping, on 8th December, 2009. The publication of a house magazine
“Nautarani” is being finalised shortly.

11.13 Monitoring of the implementation of the official language policy of the

Government in the Subordinate Offices/ Undertakings

With a view to see the status of Hindi in the Offices under the control of the Ministry
regular inspections are held by the first Sub-Committee of the Committee of
Parliament on Official language and suggestions are being given to the offices. The
Committee keeps a watch on the functioning in Hindi in these officers.

ANNEXURE-I

(PARA 1.2.1)

MINISTRY OF SHIPPING
193
I. THE FOLLOWING SUBJECTS WHICH FALL WITHIN LIST 1 OF THE SEVENTH SCHEDULED
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 thereunder 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.
15. Formulation of the Privatisation Policy in the Infrastructure Areas of ports, shipping and inland
waterways.
194
 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. SUBORDINTE 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
Shevs), 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

VII SOCIETIES/ASSOCIATIONS

27. National Institute of Port Management

28. National Ship Design and Research Centre.
29. Seafarer's Welfare Fund Society

VIII PUBLIC SECTOR UNDERTAKINGS

30. Shipping Corporation of India

31. Hindustan Shipyard Limited
32. Cochin Shipyard Limited
33. Central Inland Water Transport Corporation Limited
34. Dredging Corporation of India
35. Hooghly Dock and Ports Engineers Limited
36. Ennore Port Limited

195
IX INTERNATIONAL ASPECTS

37. International Maritime Organisation

X ACTS

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)
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).

196
 ANNEXURE-III

(Refers to Para 8.2)

STATEMENT SHOWING THE QUANTITIES OF CARGOES FOR WHICH SHIPPING

ARRANGEMENTS WERE MADE BY CHARTERING WING , MINISTRY OF SHIPPING

ROAD, TRANSPORT AND HIGHWAYS(DEPARTMENT OF SHIPPING)

(1.1.2009 to
FOR THE YEAR 2009 31.12.2009)

NOS OF VSLS QTY IN LAKH MT**

NAME OF CARGO IND FGN TOTAL IND FGN TOTAL

A- IMPORTS

a) DRY CARGO

FERTILIZER 19 82 101 5.83 22.11 27.94

ROCKPHOS - 01 01 - 0.17 0.17

C.COAL/M.COAL 41 169 210 20.36 108.99 129.35

LIMESTONE - 14 14 -- 7.00 7.00

MISC(LINER) - 22 22 - .74 .74

IRON ORE 01 01 02 50 .48 .98

MOP - 03 03 - 1.18 1.18

LAM COKE - 01 01 - .40 .40

TOTAL 61 293 354 26.69 141.07 167.76

PERCENTAGE 17.23% 82.77% 15.91% 84.09%

b) LIQUID CARGOES

LPG/C.BUTANE - - - - - -

CRUDE OIL 89 32 121 80.1656 28.91 109.07

TOTAL 89 32 121 80.16 28.91 109.07

PERCENTAGE 73.55% 26.45% 73.49% 26.51%

197
TOTAL IMPORTS (a+b) - - - - - -

PERCENTAGE -

B) LINER CARGOES - - - 1.18 0.02 1.20

TOTAL - - - 1.18 0.02 1.20

PERCENTAGE

C) EXPORT

GC SHEET

FUEL OIL/GAS OIL - 01 01 - .40 .40

TOTAL - 01 01 - .40 .40

PERCENTAGE 100% - 100%

D) COASTAL MOVEMENT

LIME STONE - - - - - -

PELLETS - - - - - -

TOTAL - - - - - -

PERCENTAGE

E) TIME CHARTER - - - - - -

TOTAL (A+B+C+D+E) 150 326 476 108.03.41 170.40 278.43

PERCENTAGE 31.51% 68.49% 38.80% 61.20

Annexure IV

(Para 10.1)

198
 TOTAL NO. OF EMPLOYEES IN THE MINISTRY OF SHIPPING (MAIN SECTT)
AND NUMBER OF SCHEDULED CASTES, SCHEDULED TRIBES AND O.B.C.
(SECRETARIAT SIDE)

S. Class Sanctioned Total no. of No. of SC % to total No. of ST % to total No of OBC % to total
No. strength employees employees employees employees employees employees employees
in position

1 2 3 4 5 6 7 8 9 10

1. Group 'A' 30 29+1* 01 3.33 - - - -

(*on trg)

2. Group 'B' 43 40 07 16.27 01 2.32 02 4.65

(Gaz)

3. Group 'B' 76 67 10 13.15 03 3.94 06 7.89

(Non-Gaz)

4. Group 'C' 74 63 12 16.21 03 4.05 03 4.05

5. Group 'D' 59 46 09 15.25 01 1.69 04 6.77

(including
Safaiwala/
Frash

199
 Annexure V

(Para 10.1)

TOTAL NO. OF EMPLOYEES IN THE MINISTRY OF SHIPPING AND NUMBER OF

SCHEDULED CASTES, SCHEDULED TRIBES AND O.B.C. (TECHNICAL SIDE)

S.No. Class Sanctioned Total no. No. of SC % to total No. of ST % to total No of % to total
strength of employees employees employees employees OBC employees
employees employees
in position

1 2 3 4 5 6 7 8 9 10

1. Group 'A' 21 17 01 4.76 01 4.76 - -

2. Group 'B' 10 03 01 10 - - - -
(Gaz)

3. Group 'B' - - - - - - - -
(Non-Gaz)

4. Group 'C' - - - - - - - -

5. Group 'D' - - - - - - - -
(including
Safaiwala/F
rash

200
 Annexure-VI

(PARA 10.13)

GRANT OF THE MINISTRY OF SHIPPING

FOR THE FINANCIAL YEAR 2008-2009

(Rs in crores)

Saving/
Total Actual
Grant No. & Name Original Supplementary Surrender
Budget Expenditure
Excess

Revenue
1052.51 17.24 1069.75 817.29 33.80 218.66
Account
Grant
No. 86

Capital Account 415.24 1.32 416.56 262.37 5.12 149.07

Total 1467.75 18.56 1486.11 1079.66 38.92 367.73

Source: Appropriation Accounts 2008-09.

201
 Annexure-VII

(Para 10.13)

HEADWISE DETAILS OF RECEIPTS AS PER THE STATEMENT OF

CENTRAL TRANSACTION (SCT) FOR THE LAST THREE YEARS
(RS IN CRORES)

REVENUE RECEIPTS
MAJOR HEAD 2006-2007 2007-08 2008-09

1. 0021-Taxes on Income other Corporation Tax 3.36

3.54 4.84

2. 0045-Other Taxes & Duties on Commodities & Services 2.96 3.32 3.89

3. 0049- Interest Receipts 305.75 58.03 298.51

4. 0050-Dividends & Profits 33.00 330.44 106.98

5. 0070-Other Administrative Services 0.00 0.00 0.00

6. 0071-Contribution & Recoveries towards Pension & 2.01

2.23 2.60
Other Retirements Benefits

7. 0075 Miscellaneous General Services 0.08 0.00 0.00

8. 0210-Medical & Public Health 0.08 0.08 0.08

9. 0216-Housing 0.17 0.24 0.24

10. 1051-Ports and Light houses 116.61 124.36 137.10

11. 1052-Shipping 50.24 53.68 57.31

12. 1056-Inland Water Transport 0.01 0.00 0.00

13. 1475 - Other General Economic Services 3.63 0.00 0.18

A REVENUE RECEIPTS * 517.90 575.92 611.73

CAPITAL RECEIPTS
MAJOR HEAD 2006-2007 2007-08 2008-09

1. 6858- Loans for Engineering Indst. 13.69 13.69 13.69

2. 7051- Loans for Port & Light Houses 147.17 65.88 77.63

3. 7056-Loans for Inland Water Transport 18.00 0.00 0.00

4. 7601-Loans & Advances to State Govt. 0.68 0.59 0.48

202
5. 7610- Loans to Govt. Servants 0.46 0.45 0.51

180.00
CAPITAL RECEIPTS ** 80.61 92.31

203
 Annexure-VIII
Para-10.13
MINISTRY OF SHIPPING
DETAILS OF EXPENDITURE FOR THE LAST THREE YEARS i.e.
FROM 2006-07 TO 2008-09

2006 –2007 2007-08 2008-09

PARTICULARAS
Plan N.PLAN Total Plan N.PLAN Total Plan N.PLAN Total

REVENUE EXPENDITURE

-- 9.07 9.07 - 9.69 9.69 - 10.52 10.52

2049-Interest Payment
-- 7.25 7.25 - 8.74 8.74 - 9.91 9.91
2071-Pension Payment
2235-Social, Security & -- 0.08 0.08 - 0.09 0.09 - 0.02 0.02
Welfare
2245-Releief on a/c of - 2.03 2.03 - - - - - -
natural calamities

2852-Industries 2.14 112.84 114.98 1.85 193.05 194.90 2.69 131.87 134.56

3051-Ports & Lighthouses 3.72 502.88 506.61 0.68 566.33 567.01 0.23 542.43 542.66

3052-Shipping -- 20.65 20.65 - 115.27 115.27 - 33.13 32.13

3056-Inland Water transport 107.03 252.12 359.15 0.03 104.31 104.34 70.22 19.74 89.96

3451-Eco Services -- 9.34 9.34 - 10.70 10.70 - 16.45 16.45

3601-Grant-in-aid to State 11.59 - 11.59 - - - - - -

Govt

3605-Technical & -- 1.31 1.31 - 1.15 1.15 - 1.53 1.53

Economic Cooperation with
other countries

TOTAL 124.49 917.57 1042.06 2.56 1009.33 1011.89 73.14 764.60 837.74

CAPITAL EXPENDITURE

4858-Engineering Industries 9.50 - 9.50 16.78 - 16.78 13.20 - 13.20

5051-Ports & Lighthouses 135.12 -10.86 124.26 60.37 156.90 217.27 219.17 12.50 231.67

5052-Training & welfare 25.51 - 25.51 14.00 - 14.00 5.00 - 5.00

Scheme

5056-Inlanmd Water -- -- -- -- -- --
Transport
-- -- --

5075-Other Transport 205.66 - 205.66 139.22 - 139.22 1.00 - 1.00

Services

6858-Loans for Engineering 14.44 42.57 57.01 4.00 8.50 12.50 3.00 8.50 11.50

204
Industries

7051-Loans for Ports & - - - -- -- -- -- -- --

Light Houses

7052-Loans for Shipping -- -- -- -- -- -- -- -- --

7056-Loans for Inland - - -- -- -- -- -- --

Water Transport
--

7601-Loans and Advances -- -- -- -- -- --

to State Govt
-- -- --

7610-Loans to Govt. 0.27 0.27 - 0.17 - - 0.24 0.24

servants
--

TOTAL 390.24 31.98 422.22 234.37 165.57 399.94 241.37 21.24 262.61

Grand Total 514.73 949.55 1464.2 236.93 1174.90 1411.83 314.51 785.84 1100.35
8

205
 Annexure-IX

(Para-10.14)

MINISTRY OF SHIPPING

Rs in crores

DEPRECIATION RESERVE FUND

Opening Balance as on 1.4.2008 65.56

Receipt during 2008-20098 8.00

Payment during 2008-2009 8.00

Closing Balance as on 31.3.2009 65.56

GENERAL RESERVE FUND

Opening Balance as on 1.4.2008 363.54

Receipt during 2008-2009 54.23

Payment during 2008-2009 54.23

Closing Balance as on 31.3.2009 363.54

206
 Annexure-X

IMPORTANT AUDIT OBSERVATIONS

Directorate of Shipping Services

Report No.CA 14 of 2008-2009; Union Government (Civil); Autonomous

Bodies

Unfruitful expenditure

Awarding of a ship building contract to a yard with limited capabilities, coupled

with delays in decision making resulted in blocking up of funds of Rs.54.99
crore. More importantly, the objective of enhancing connectivity between Port
Blair and the southern group of Islands could not be achieved.

Report No.CA 15 of 2008-2009; Union Government (Civil); Autonomous

Bodies

Cochin Port Trust

Due to delay in taking decision on renewal of insurance coverage for a dredger,

Cochin Port Trust had to incur expenditure of Rs. 1.04 crore on its repairs after it
met with an accident.

Moumugao Port Trust

Non-utilisation of a cruise vessel terminal at Mormugao Port due to lack of

requisite facilities for cruise passengers resulted in idle investment of Rs. 2.68
crore.

207
Mumbai Port Trust

Mumbai Port Trust (MbPT) suffered a loss ‚ãof Rs. 62.63 lakh during October
2001 to December 2006 due to non-application of the rates for charging license
fees approved by the Tariff Authority for Major Ports (TAMP), for its space
hired out to various Government and private parties.

Visakhapatnam Port Trust

By placing a purchase order after expiry of the validity period, Visakhapatnam

Port Trust (VPT) incurred an avoidable extra expenditure of Rs. 40 lakh in the
procurement of a locomotive from Diesel Locomotive Works, Varanasi.

Audit Report No. CA 24 of 2009-10 (Compliance Audit)

Hindustan Shipyard Limited

The failure of the Company to implement its decision to roll back the
superannuation age before introduction of Voluntary Retirement Scheme resulted
in avoidable expenditure of Rs. 1.62 crore.

(Para 15.1.1)

The Shipping Corporation of India Limited

Payment before the contracted date resulted in a loss of Rs. 46.86 lakh as interest
income and Rs. 1.04 crore on account of currency exchange difference.

(Para 15.2.1)

208
-

209
210