Indian government waives port charges for coastal vessels

India’s Shipping Ministry has instructed all major ports to exempt coastal shipping from port and vessel charges for the next six months.

PHOTO: Cargo ship at Jawaharlal Nehru Port in Mumbai. This port, also known as Nhava Sheva, is the largest container port in India. Getty Images

The decision was taken to provide some interim relief to India’s cabotage sector, which has been facing high bunker cost.

“The rising fuel cost at international level is now making our local Ro-Pax and Passenger Ferry operations unviable so this exemption of vessel and port related charges will provide the necessary breather to this sector for the next 6 months,” said India’s Minister of Ports, Shipping and Waterways Sarbananda Sonowal.

The shipping ministry has further asked the state government to lower value added tax (VAT) on diesel used by vessels, and has raised the issue of high bunker cost with the oil ministry.