New Delhi
Ministry of Ports, Shipping and Waterways (MoPSW) is promoting the Ro-Ro/Ro-Pax/Ferry waterway transportation which has lower emissions compared to other modes of transport for the same amount of cargo. Also, there is a significant time and cost saving compared to the traditional transportation modes. Concurrently traffic congestion on road/railways, noise pollution and the accidents on the roads may also get reduced. Such water-based transportation service is an effective measure to lower the logistics costs, reducing travel time and promotion of coastal shipping on several feasible routes. In order to provide some quick respite to this sector from the impact of Global Increase in Price of Fuel, MoPSW has directed all Major Ports to exempt all berth hiring and vessel related charges being currently levied to the Ro-Pax/Passenger Ferries for the next six months with immediate effect. The cost of Marine fuel Low Sulphur High Flash High Speed Diesel (LSHFHSD) has increased from Rs.76,000/KL to Rs.1,21,000/KL. Similarly, the cost of Very Low Sulphur Fuel Oil(VLSFO) has increased from Rs.40608/KL to Rs.80917/KL. It is to be noted here that in the beginning of FY 2021-22 the cost of marine fuel-LSHFHSD used to be 10-15% less than retail diesel-HSD. Hence, effectively the rise is more than 40%. To discuss theImpact of High Marine Fuel Prices and GST on Ferry Operations Union Minister MoPSW Shri SarbanandaSonowalhad recently held meeting with Navneet Mohan Kothari, Joint Secretary (GP Division) Ministry of Petroleum and Natural Gas and Niba Ram, Joint Commissioner, Department of Revenue, Ministry of Finance and other senior officials. In this regard he had also written letters to Smt. Nirmala Sitharaman, and Shri Hardeep Singh Puri, highlighting this issue and requested them to extend their support for this sector by reducing taxes and price of the Fuel respectively.
