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
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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 of Hindi
52
11.9 Celebration of Hindi Pakhwara and Organisation of Hindi 52-53
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Workshops
11.10 Incentives Schemes 53
11.11 Purchase of Hindi Books 53
11.12 Rajbhasha Shield Yojna and Publication of House Magazine "Nautarani"
53
11.13 Monitoring of the Implementation of Official Language Policy of the Government in Subordinate Offices/Undertakings.
53
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 Shipping Arrangements were made by Chartering Wing, Ministry of Shipping for the year 2009 (1.1.2009-31.12.2009)
57
IV 10.1 Total number of employees in the Ministry of Shipping (Main Secretariat ) and number of Scheduled Castes and Scheduled Tribes and O.B.C. (Secretariat side)
58
V 10.1 Total number of employees in the Department and number of Scheduled Castes and Scheduled Tribes and O.B.C.(Technical side)
59
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 Transaction (SCT) for the last three years
61
VIII 10.13 Details of expenditure for the last three years 62
IX 10.14 Other Funds 63
X Important Audit Observations 64-65
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CHAPTER - I
Introduction
1.1.1 Ministry of Shipping was formed in 2009 by bifurcating the erstwhile Ministry of Shipping, Road Transport and Highways into two independent ministries.
1.1.2 Maritime Transport is a critical infrastructure for the economic development of a country. It influences the pace, structure and pattern of development. The Ministry of Shipping encompasses within its fold shipping and port sectors which also include shipbuilding and ship repair, major ports and inland water transport. The Ministry has been entrusted with the responsibility to formulate policies and programmes on these sectors and their implementation.
1.1.3 Comprehensive policy package is necessary to address the diverse issues facing the maritime transport sector. The capacity of the ports in terms of their berths and cargo handling equipment needs to keep pace with the growing requirements of the overseas trade. The shipping industry must be enabled to
carry higher shares of the sea-borne trade in indigenous bottoms.
1.1.4 Historically, investments in the transport sector, particularly in the ports, have been made by the State, mainly because of the large resources required, long gestation period, uncertain returns and a number of externalities, associated with this infrastructure sector. However, the growing resource requirements and the concern for managerial efficiency and consumer responsiveness have led to the active involvement of the private sector in infrastructure services in recent times. To encourage private sector participation, Ministry of Shipping has laid down comprehensive policy guidelines for the private sector participation in the Major ports.
1.2 Functions
1.2.1 The subjects allocated to the Ministry of Shipping are listed at Annexure - I.
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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
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
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under the administrative control of the Ministry of Shipping:
(A) Subordinate/Attached offices
• Directorate General of Shipping,
Mumbai (including Minor Ports
Survey Organisation, Mumbai).
• Andaman & Lakshadweep Harbour
Works, Port Blair.
• Directorate General of Lighthouses
& Lightships, NOIDA
(B) Autonomous bodies
• Port Trusts at Kolkata, Kochi (Cochin), Kandla, Chennai, Mormugao, Mumbai, Nhava Sheva (Jawaharlal Nehru Port), Paradip, Tuticorin, Visakhapatnam and New Mangalore.
• Dock Labour Boards at Kolkata and Visakhapatnam.
• Inland Waterways Authority of India, Noida.
• Tariff Authority for Major Ports, Mumbai.
• Seamen’s Provident Fund Organisation, Mumbai.
(C) Societies /Associations
• Indian Maritime University, Chennai.
• Indian Institute of Port Management, Kolkata.
• National Ship Design and Research Centre, Visakhapatnam.
• Seafarers Welfare Fund Society, Mumbai.
• Indian Institute of Maritime Studies, Mumbai.
• Indian Ports Association, New Delhi.
(D) Public Sector Undertakings
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• Shipping Corporation of India, Mumbai
• Hindustan Shipyard Limited, Visakhapatnam.
• Cochin Shipyard Limited, Kochi.
• Central Inland Water Transport Corporation Limited, Kolkata.
• Dredging Corporation of India Limited, Visakhapatnam.
• Hooghly Dock & Port Engineers Limited, Kolkata.
• Ennore Port Limited, Ennore.
• Sethusamudram Corporation Limited, Chennai
1.3.10 The Organisation Chart of the Ministry of Shipping is given at Annexure - II.
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.
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MAJOR INITIATIVES AND ACHIEVEMENTS DURING 2009-10
2.1.4 National Maritime Development Programme
The Ministry of Shipping has finalised a National Maritime Development Programme (NMDP) to implement specific programmes/schemes for the development of the Port sector. Under the Programme, specific projects to be taken up for implementation over a period upto 2011-12 have been identified. Total investment involved under the Programme is Rs.1,00,339 crore. Out of this, Rs.55,804 crore is for the Port sector and the balance is for shipping and inland Water Transport Sectors. In the Major ports, 276 projects covering the entire gamut of activities, namely construction/ upgradation of berths, deepening of channels, rail/road connectivity projects, equipment upgradation/ modernization schemes and other related schemes for creation of backup facilities,
have been identified for inclusion in the Programme. These projects will be implemented in phases. Out of these, about Rs.34,505 crore is expected from private sector mainly in commercially viable projects like development and operation of berths, terminals, etc. Public funds will be principally used for creation of common user infrastructure facilities. The objective is to upgrade and modernize the port infrastructure in India which will enable it to benchmark its performance against global standards.
2.1.5 Sethusamudram Ship Channel Project
Sethusamudram Ship channel Project, which is being implemented through the Special Purpose Vehicle namely, Sethusamudram Corporation Limited, envisages dredging of a ship channel in the shallow portion of sea to connect the Gulf of Mannar and Bay of Bengal through Palk Bay so that the
11
ships, depending on draught required, moving between east and west coasts of India could have a continuous navigable sea route around the peninsula within India’s own territorial waters.
The project was inaugurated on 2nd July, 2005 by the Prime Minister. The entire dredging work for the project has been awarded to the Dredging Corporation of India (DCI) on nomination basis. The work at Adam’s Bridge area commenced on 11th December, 2006 and the quantity dredged upto 17th September, 2007 is 11.89 Million. Cu.m (Hopper Quantity). The dredging work at Adam’s Bridge area is temporarily suspended from 17th September, 2007 based on an order passed by Hon’ble Supreme Court of India.
During the course of hearing of the case on 23rd July, 2008, the Supreme Court suggested that alternate alignment should be examined objectively and at the earliest in order to come to a conclusion. A Meeting of
the Committee of the Secretaries, under the Chairmanship of Cabinet Secretary, was held on 28th July, 2008. After detailed deliberations, the Committee of Secretaries approved the constitution of a Committee of experts to consider the Re-alignment of Sethusamudram Channel. The Committee will examine the feasibility of the alternative alignment suggested by the Hon’ble Supreme Court for the Sethusamudram Ship Channel Project between Dhanushkodi and Lands End on Rameshwaram Island keeping in view the technical aspects, cost benefit analysis, social and cultural impact, environmental impact, law and order aspect and any other related matters. The Committee was constituted under the chairmanship of Dr. R.K. Pachauri, Director General, The Energy and Resources Institute vide Cabinet Secretariat’s order dated 29th July, 2008.
The Expert Committee held five meetings on 22.08.2008,
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19.09.2008, 21.10.2008, 5.6.2009 and 10.11.2009 respectively. Environmental Impact Assessment (EIA) of the proposed alternative alignment has been assigned to National Institute of Oceanography(NIO).
PORTS DEVELOPMENT
2.1.6 A Memorandum of Understanding (MOU) was signed on September 24, 1997 between the then Minister of Shipping, Government of India, and the Minister of Public Works, Flanders, Belgium to cooperate in various fields relating to maritime transport and Port development. In order to implement the MoU, a Letter of Intent (LOI) was signed in 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 between the Ministry of Shipping, Government of India and Ministry of Mobility and Public Works, Government of
Flanders. As per the renewed LOI for 2010-12, both Governments will mutually promote each other’s ports through inclusion of promotion material in port exhibitions and continuous exchange of information/documents/ material on Indian and Flemish ports. Flanders, in cooperation with APEC, will organize tailor made short training courses for Indian Officers in addition to other short training courses. On port related issues, Flanders will provide a maximum of twelve scholarships per year for Indian staff for standard short training courses/seminars in APEC. Flanders will also provide advice on the projects of Major Ports of India and subordinate organizations under the administrative control of Ministry of Shipping, Government of India.
2.1.6 Bipartite Wage Negotiation Committee and Pay Revision Committees Recommendations.
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A Bipartite Wage Negotiation Committee(BWNC) was 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 dated 19/01/2010 has been arrived under Section 12(3) of the Industrial Dispute Act, 1947 over Charter of Demands of wage structure and allied matters between the five Major Federations operating in Major Port Trusts and Dock Labour Boards and the Management.
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.
Similarly, the pay Revision Committee set up in 2006, for recommending revised pay structures of Class I and Class II Officers of Major Port
Trusts, has also submitted its report and the same would be examined by the Ministry for appropriate decision.
2.2.0 PORT SECTOR ACHIEVEMENTS
2.2.1Traffic, Capacity and Performance
(A) Traffic
The Major Ports 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
The aggregate capacity of major ports as on 31.3.2009 was 574.77 million tonnes per annum (MTPA). The major
14
ports, therefore, continued to maintain a favourable capacity cargo equation during the year.
(C) Performance
The average output per ship per day for all major ports taken together has improved from 9926 tonnes in 2008 (April-Dec) to 9995 tonnes in 2009(April-Dec). However, average turnaround time has marginally increased from 3.86 days to 4.54 days over the same period.
2.2.2 Capacity Addition in Major Ports
It has been the endeavor of the 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 31.3.2009 was 574.77 MTPA. Thus the favorable capacity – traffic equation continued during the year.
2.2.3 Major Development Projects
(A) International Container Trans-shipment Terminal (ICTT) at Cochin Port
It has been decided to set up an International Container Transshipment Terminal (ICTT) at Cochin Port by awarding contract on Build, Operate and Transfer (BOT) basis to M/s Dubai Port International, Dubai (DPI). The Port Trust will have to provide road and rail connectivity to the ICTT project site, environmental clearance for the project and get the project site declared as Special Economic Zone (SEZ). Port Trust will also have to deepen the channel so as to receive ships of size 8000+TEUs. Cochin Port Trust has already handed over the Rajiv Gandhi Container Terminal (RGCT) to the BOT operator on 1.4.2005. The
15
construction has commenced in December, 2007. The environmental clearance for the terminal has also been obtained. The Environmental Clearance for the National Highway connectivity has been granted by Ministry of Environment & Forests (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
and Rs.139.97 crore has been released towards the project by Government of India as Budgetary Support.
2.2.4 Private Sector Participation in Major Ports
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
16
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 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
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.
2.2.5 11th Five Year Plan
The 11th Plan document has been finalized and released by the Planning Commission. The 11th Plan document has
17
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
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
18
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.
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
19
this regard which are being processed.
2.3.3Expansion of Indian Tonnage:
India is among the 20 leading Merchant fleets all over the World. The Gross tonnage under Indian flag was 9.39 million GT as on 1.12.2009. India has attained the position from a humble beginning of merely 0.19 million tons in 1950.
2.3.4 ESTABLISHMENT OF INDIAN MARITIME UNIVERSITY The Government has established Indian Maritime University IMU) in Chennai on 14/11/2008 by an Act of Parliament i.e. Indian Maritime University Act, 2008 (22 of 2008) with campuses at Chennai, Kolkata, Mumbai and Visakhapatnam.
Formation of IMU will facilitate and promote maritime studies,
research and extension work with focus on emerging areas of studies including marine science & technology, marine environment, socio-economic, legal and other related fields and also to achieve excellence in these and connected fields. It will promote advanced knowledge by providing institutional and research facilities in such branches of learning as it may deem fit, make provisions for integrated courses in science and other key areas of marine technology and allied disciplines. As there are a sizeable number of private institutions imparting maritime education and training, the University will standardize the quality of such education and training through affiliation and academic supervision.
In IMU new courses in B.Tech in Naval Architecture and Ocean Engineering, MBA in Port and Shipping Management, MBA in International Transportation and Logistics and P.G. Diploma in Naval Architecture and Ocean Engineering have
20
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
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.
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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
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
22
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
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
23
levels prevailing at the end of 2009 or slightly lower.
During the period under report from 1st January, 2009 to 30th November, 2009, total 440 ships were chartered by the Chartering Wing (Transchart) for shipment of total quantity of 256.18 lakh MT of Government Cargoes. Out of total 440 ships, 138 were Indian ships (31.36%) which carried 99.41 lakh MT i.e. approx. 38.80% of total quantity. The main reason for low percentage of cargo carried by Indian vessels was due to inadequate availability 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.
Concerted efforts were made to provide shipping coverage at competitive freight rate as per the requirement of indenting departments. While making shipping arrangements, efforts were made for maximum utilization of available/suitable Indian tonnage.
Modernisation and computerization of the Chartering Wing has not made much progress during the year, as the deficiencies observed during the trial run of the new software are yet to be attended to by the software developer.
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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
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
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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
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
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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
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.
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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
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
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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
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
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major ports. However, over the years, minor ports have also witnessed growth in traffic. The growth in the cargo handled at Indian ports has increased from a level of 19.38 million tonnes (major ports) in 1950-51 to around 722.93 million tonnes (major and minor & intermediate ports) by 2007-08. Traffic at major and
minor/ intermediate ports stood at 519.31 and 203.62 million tonnes respectively.
3.3 Performance of Major Ports
3.3.1The Major Ports 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.
3.3.2 Traffic handled at Major Ports:
(in million tones)
Port Target 2009
(April-Dec.)
Actual 2009
(April – Dec.)
Actual 2008
(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
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Mormugao 31.74 31.26 26.46
Jawaharlal Nehru
50.41 44.55 44.10
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
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3.3.3 Cargo Handled at major ports
(in million tones)
Commodity 2009 (April-Dec)
2008 (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-
Berthing Detention-on Port Account (Hours)
Average Turn round Time
(Days)
2009 2008 2009 2008
(April to December) (April to December)
Kolkata 4.36 1.14 5.34 4.55
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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 Nehru
6.48 10.80 1.94 1.94
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
(April to December)
2008
(April to December)
Kolkata 2320 3068
Haldia 6182 7834
Paradip 13298 11831
Visakhapatnam 10136 10605
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Chennai 11708 10491
Tuticorin 6409 5368
Cochin 9953 10234
New Mangalore 13392 13266
Mormugao 16412 19155
Jawaharlal Nehru
24927 22265
Mumbai 6947 6057
Kandla 13217 13067
Ennore 22070 28233
All Major Ports 9995 9926
3.4 Road and Rail Connectivity
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.
The projects on rails and 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
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contributed in the SPV set by NHAI for implementation of road connectivity projects. 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
year. The table below gives the capacity and traffic in major ports since 2001-02:-
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Year Aggregate capacity in
MTPA as on 31st March
Traffic in MT
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, 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
Ports provide for an independent 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.
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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. 3.5.3 Dredging Corporation of India
Dredging Corporation of India Ltd. (DCIL) was formed in 1976 to provide Integrated dredging and related marine services for promoting the country's national and international maritime trade, beach nourishment, reclamation, inland dredging, environmental protection and ultimately to become a global player, in the field of dredging.
Located strategically on the eastern seaboard of India at Visakhapatnam, DCI helps ensure continuous availability of the desired depths in the shipping channels of the major and minor ports, Navy, fishing harbours and other maritime organizations. It further serves the nation in a variety of ways, be it capital dredging for creation of new harbours, deepening of existing harbours or maintenance dredging for the upkeep of the required depths at various ports along the 5,700 kms. long coastline of India.
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CHAPTER – IV
SHIPPING
4.1. Introduction
Shipping industry is one of the most globalised industries operating in a highly competitive business environment that is far more liberalized than most of the other industries and is, thus, intricately linked to the world economy and trade. Indian shipping tonnage which was only 1.92 lakhs Gross Tonnage (GT) on the eve of Independence now stands at 9.47 million GT with 974 ships as on 31.12.2009. India has been a founder member of the International Maritime Organization (IMO), a specialized agency set up under the United Nations primarily dealing with the technical aspects of shipping relating to Maritime Safety, Protection of Marine Environment, Standards of Training and related legal matters. The Directorate General of Shipping has been participating in various meetings of the IMO Committees, Sub-Committees, Council and Assembly and has actively contributed towards the development of various Conventions, Protocols, Codes, Guidelines developed by the IMO.
4.2. NATIONAL SHIPPING BOARD:
The National Shipping Board is a permanent Statutory Body established in 1959 under Section 4 of the Merchant Shipping Act, 1958 to advise the Government of India on matters related to Shipping including development thereof. In terms of the aforesaid provision, the Board is re-constituted after every two years.
The Board comprises 6 Members of Parliament (4 from Lok Sabha and 2 from Rajya Sabha), 5 representatives of Central Government, 3 representatives each of shipowners and seamen and 5 representatives of other interest including its Chairman.
4.3. DIRECTORATE GENERAL OF SHIPPING, MUMBAI
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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
pollution and other mandatory regulations of the International Maritime Organizations, promotion of maritime education and training, examination & certification, supervision of other subordinate offices for their effective functioning etc. The Director General of Shipping enjoys statutory recognition under
section 7 of the Merchant Shipping Act, 1958. 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,
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.
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(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.
(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).
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
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.
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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
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.
(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
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
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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
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.
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
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.
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(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 representatives from Port Trusts, 1 non- official Member from the field of
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 (MPSO) is a subordinate office under the Ministry of Shipping, entrusted with the responsibilities of carrying out Hydrographic surveys in minor/major
43
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
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.
CHAPTER – V
SHIPBUILDING AND SHIP REPAIR
5.1 The nodal responsibility of the entire Shipbuilding and Ship repair Industry vests with the Ministry of
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Shipping. There are 27 Shipyards in the country, 6 under Central Public Sector, 2 under State Governments and 19 under Private Sector Undertakings. Further details are given below:
Under Ministry of Shipping, Government of India
• Hindustan Shipyard Limited, Visakhapatnam
• Cochin Shipyard Limited, Cochin
• Hooghly Dock and Port Engineers Limited, Kolkata
Under Ministry of Defence
• Mazagaon Dock Limited, Mumbai
• Garden Reach Shipbuilders and Engineers Limited, Kolkata
• Goa Shipyard Limited, Goa
Under the control of State Governments
• Alcock Ashdown Co. Ltd., Gujarat
• Shalimar Works Limited, Kolkata, West Bengal
The Ministry renders technical advice and formulates policies on matters
relating to development of Shipbuilding and Ship repair industry and floating crafts industry and also for indigenous construction of fishing vessels. This Ministry has a scheme of giving grant-in-aid to educational and research institutions for carrying out R&D activities in Shipbuilding.
National Maritime Development Programme has envisaged setting up of two International size shipyards, inter alia, other policy measures for development of shipbuilding and ship repair industry.
5.2. Cochin Shipyard Limited Cochin Shipyard was incorporated in the year 1972 as a fully owned Government of India Undertaking. In the last three and a half decade the company has emerged as a forerunner in the Shipbuilding and Ship repair industry.
Cochin Shipyard can build and repair the largest ships in India viz upto 1,10,000 DWT in Shipbuilding and 1,25,000 DWT in Shiprepair. The
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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
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
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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.
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.
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
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.
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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.
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.
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
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
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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
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.
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CHAPTER-VII
INLAND WATER TRANSPORT
7.1 Inland Water Transport (IWT) mode is cost effective, fuel efficient and climate friendly mode of transport for bulk cargo and over dimensional cargo. However, development of IWT infrastructure remained neglected for long and consequently it does not have significant share in transport mix. Efforts are now being taken to develop this mode by providing and maintaining basic infrastructure.
Only those waterways which are declared as National Waterways by the Act of Parliament come under the purview of Central Government while the other waterways remain under respective State Governments. There are five National Waterways
7.2. Inland Waterways Authority of India (IWAI):
The IWAI set up on 27th October 1986 vide Inland Waterways Authority of India Act, 1985, for regulation and development of inland waterways for the purposes of shipping and navigation. It also advises Ministry of Shipping on matters related to IWT. IWAI had established National Inland Navigation Institute at Patna to impart training in IWT field so as to get skilled man power for inland vessels and undertaking various other activities in a professional manner.
7.3 CENTRAL INLAND WATER TRANSPORT CORPORATION (CIWTC)
The Central Inland Water Transport Corporation Ltd. (CIWTC) was incorporated in 1967 for transportation of cargo by barges through Inland
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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:
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.
CHAPTER-VIII
CHARTERING
8.1 Introduction
Chartering Wing (Transchart) in the Department of Shipping in accordance with the Government policy / procedure is responsible for making shipping arrangements for 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.
The Chartering Wing makes shipping arrangements at internationally competitive freight rates with the consent and prior approvals of the concerned Govt. Department/PSUs and in the process gives cargo preference / support to Indian Vessels without giving any price preference. This Wing also advises the concerned Indenting Government Departments / PSUs / Projects on various aspects of shipping and post shipping matters.
8.2 Highlights of 2009-2010
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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
(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
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(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
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
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products in the western countries. It fluctuated throughout the year 2009 due to seasonal variations in demand for various type to tankers. (BCTI)/ ((BDTI) (Baltic Clean Tanker Index/Baltic Dirty tanker Index) which gives an indication of the market segment opened the year with 611/831 respectively on 5th January, 2009 moved to 487/479 on 26th May, 2009. These indices were at 629/810 on 22nd December, 2009.
The one reason attributed to the shipping market revival during 2009 is increased Chinese and Indian demand for iron ore and coal on the dry side and in the tanker segment, increase in demand from USA and Far East markets from Arabian Gulf region.
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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
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Statistics of India – 2008-09”. “Indian Shipping Statistics 2008”, Statistics of India’s Ship building & Ship-repairing Industry 2007-08” and “ Statistics of Inland Water Transport 2006-07” are in progress.
A chart showing the growth of Indian tonnage (as on 31st December, 2007) for coastal & overseas vessels is at Annexure III. The cargo carried by Indian overseas fleet during 2008-09 is given at Annexure IV.
9.2 Working Group on strengthening of major Port Statistics
Timely availability of correct data is vital for monitoring the trends in the economy or performance of a sector and policy formulation. Trends in cargo traffic also serve as a barometer of economic activity. Timely and correct availability of data is of utmost importance as it can serve as a barometer of economic activity. Timely and correct availability of data is of utmost importance as it can serve as an early warning for future trends in
the economy well before any other macro parameter becomes available. Thus is can provide vital clues to policy makers which can facilitate appropriate policy correctives. Besides, standardized data can serve as bench marks for comparisons and evaluation. This is more so in the case of efficiency indicators like turn around time, pre-berthing detention etc. Also there is a need for additional requirement of data and performance indicators on account of changes in 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 chairmanship of Adviser (Transport Research) for Strengthening of Major Ports Statistics with the following terms of reference:
(a) To look into the concepts, definition and methodologies followed by port authority in compilation of sea-borne cargo & physical performance indicators.
(b) To Suggest uniform procedures/methods for compilation and dissemination of various physical and financial performance indicators to facilitate comparison and benchmarking productivity and efficiency.
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(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
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.
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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
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
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benefits paid on the last working day of the retiring officer/official.
A Welfare Cell also exists in the Ministry of Shipping which looks after all the welfare measures activity of the officers/officials in the Ministry. The farewell parties are organized by the Welfare Cell of the Ministry to bid farewell to retirees and a Memento as well as a Gift is also presented.
In the Ministry of Shipping various welfare measures in respect of welfare of women employees of the Ministry were undertaken. A complaint Committee on Sexual Harassment has been set up to look after the grievances of women employees relating to sexual/gender based harassment.
A Recreation Club also exists in the building where indoor games facilities viz. Table Tennis, Carrom etc. and a television are available for the entertainment of the employees. Apart from this, gymnasium facilities are also provided. A Treadmill, Cycling, Weigh machines are installed in the said gymnasium. In addition to above, Cricket Team of the Ministry participated in Inter-Ministry Cricket
Tournament 2009-10 held in New Delhi.
Important Days of National Importance viz. Anti-Terrorism Day, Communal Harmony Day, Sadhbhavana Diwas, Vigilance Awareness Week, Red Cross Day, Red Cfross Raffle Draw, etc. observed and "Pledge" taken by the employees of the Ministry of Shipping. Contributions were also raised and collected towards "Flag Day". The essays competition both in Hindi and English were conducted during Communal Harmony Week/Vigilance Awareness Week. The participants are rewarded for their participating in these events.
10.2 Setting up of Information & Facilitation Counter
It has always been the policy of Government of India to take all possible initiatives to provide effective and responsive administration so as to efficiently serve the citizens when they deal with the Government. In order to create awareness and give information
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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
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
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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 Recorded files:
(i) The recorded files received in bundles from sections/Desks are checked as per provisions of Central Secretariat Manual of Office Procedure (CSMOP), and those not found in order are returned to the Sections/Desks concerned for rectification.
(ii) The files received as per Central Secretariat Manual of Office Procedure are entered in the respective record Registers (Section-wise) segregated year-wise, Head-wise and stacked in respective racks in a neat and systematic position.
• 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.
10.6. Quarterly Executive Summary:
Necessary data relating to disposal of work was collected from various units of the department and analyzed. In addition, on the direction of DAR&PG, “Executive Summary for Secretary” is reviewed by Secretary on quarterly basis and follow-up action is taken as a consequence of the review.
This Ministry has initiated the action and taken efforts to launch and implement the e-Governance systems
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effectively in this Department including attached and Subordinate offices like DMIS(Web-based file tracking system), CPGRAMPS (Public Grievances Redressal System) and Governance Knowledge Centre (GKC) etc. to promote accountability and Citizen Centric Governance with the proactive support of NIC Cell in the Ministry.
10.7 The grievance redressal set-up in the Ministry is headed by the Joint Secretary (Ports) as ‘Director of Grievances’. Prompt action is taken on the grievance cases by referring them to the concerned administrative Units, Port trusts, PSU etc. for early redressal. Periodical review is carried out by the Director of Grievances for early redressal of the pending grievances.
During the period grievances received from Department of Administrative, Directorate of Public Grievances, P&PW and individuals were promptly attended to and referred to the concerned officers for time-bound redressal. Out of these 44 Grievances have remained pending and are under active consideration at the end of the year.
10.8 CPGRAMS: In consonance with the thrust on transparency in the functioning of the government, a cost effective monitoring software, namely Centralized Public Grievances Redressal and Monitoring System (CPGRAMS), for monitoring and disposal of Public Grievances cases has been functioning in this Department. It has been implemented in almost all the Attached/Subordinate offices of this Ministry to closely monitor and evaluate the quality of disposal of Public Grievances regularly and minimize the delays in decision making strategy. NIC has implemented CPGRAMS.
10.9 DMIS: Document Management Information system (DMIS) has been installed and most of the staff and officers have been trained by Officials of NIC. For effective utilization of DMIS, all the computers in the Department are connected by Local Area Network (LAN). All Major Port Trusts, Attached/ subordinate offices and Public Sector Undertaking of the Department have also been requested to install this system with the support of NIC in their organization. The reports pertaining to status of
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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
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;
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(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.
(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;
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(ii) Scrutinizes the budget proposals before sending them to the Ministry of Finance;
(iii) Ensures that the departmental accounts are maintained in accordance with the requirements under the General Financial Rules;
(iv) Monitors and review the progress of expenditure against the sanctioned grants.
10.10.2 ACCOUNTS AND BUDGET
The Accounts and Budget Wings of the Ministry are functioning under the Chief Controller of Accounts. The office of the Chief Controller of Accounts is inter-alia responsible for making all authorized payments of the Ministry, compilation of Monthly and Annual Accounts, conducting internal audit of all the units under the Ministry to ensure compliance of the prescribed Rules, rendering technical advice to the Ministry on financial and accounting matters, cash management and coordination with the Controller General of Accounts, C&AG, Finance Ministry and other related agencies. The Chief Controller of Accounts
office is primarily responsible for the following major tasks:-
1. Payments:
Making Sanctioned Payments on behalf of the Ministry after conducting presented pre-check of bills as per approved Budget.
Release of authorization to other Ministries to incur the expenditure on behalf of the Ministry. 2. Receipts:
Budgeting, accounting and reconciliation of the receipts of Ministry of Shipping.
Monitoring the repayment of loans and interest thereof received from State Governments and other PSU’s. The payment on account of Grants-in-Aid, Loan, Subsidy and equity to Public Sector Undertakings, Port Trusts and International Maritime Organisation.
3. Submission of Accounts and Reports:
Preparation of monthly accounts, Finance Accounts Annual Appropriation Accounts, and Statements of Central Transactions
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and their submission to the Controller General of Accounts, Ministry of Finance, Department of Expenditure, Government of India.
Monitoring of Internal Extra Budget Resources (IEBR) and its submission to office of the CGA.
Monitoring and submission of mandatory information as per Fiscal Responsibility and Budget Management (FRBM) Act and Rules.
Preparation of Management Information Reports based on accounting, budget & audit data for submission to various authorities.
Preparation of financial statistics on monthly basis regarding receipts and expenditure for upload on Ministry’s website.
4. Budget:
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.
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
Internal Audit/Inspection of the Ministry and Regional Offices under Ministry of Shipping.
Preparation of an Annual Internal Audit Report of the Ministry.
Preparation of Internal Audit Manual is under process and is being submitted for approval to CGA’s office.
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
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business more effectively, efficiently and economically.
6. COMPUTERISATION OF ACCOUNTS:
With a view to eliminate the delay in compilation of Accounts and to provide the information on expenditure accounts, on timely, accurate basis the office of 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.
CPFM: Contributory Pension Fund Management System for capturing the pension contribution of Employees who joined Govt. Service on or after 01st January 2004.
E-Lekha: A web based application 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
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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.
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
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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.
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)
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10.10.6 VIGILANCE
The Vigilance Wing of the Department coordinates and supervises the vigilance activities within the Ministry as well as in respect of the PSUs and autonomous bodies under its administrative control. The Wing is headed by the Chief Vigilance Officer (CVO) of the rank of Joint Secretary. He is appointed with the approval of the Central Vigilance Commission.
There are 33 attached/ subordinate/ PSU/ autonomous bodies under the Department and each organization has either part-time or full-time CVO. The part-time CVOs are appointed from amongst the offices of the concerned organization in consultation/concurrence with the CVC. The full-time posts of CVOs, wherever such posts exist, are filled-up from officers of organized services through DOP&T.
Special emphasis has been laid on the role of preventive vigilance including simplification of procedures and use of e-technology etc. Special emphasis
was laid on the strengthening of vigilance machinery in various organizations under the Ministry of Shipping particularly the Port Trusts. Punitive action has been taken wherever required in consultation with CVC against the delinquent officials.
As a result of active monitoring and follow-up, a large number of cases were finalized during the year.
During the Vigilance Awareness Week a pledge to eradicate corruption in all spheres of life was administered to the staff and officers of the Department. An essay competition was also organized.
Vigilance activities in various organizations under this Department are being reviewed periodically through various returns and also through interactions with CVO/Head of the Organisations.
10.10.7 RTI
In order to ensure greater and more effective access to information,
70
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.
(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)
CPIO/ AA designated 4
No. of applications received/disposed by CPIO 141
No. of Appeals/references received/disposed by 1st AA
5
No. of 2nd Appeals/references received from 3
71
CIC and disposed.
Amount of Fee/additional charges collected Rs.1070/-
Rs.2756/-
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CHAPTER-XI
OFFICIAL LANGUAGE
190
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
191
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
192
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.
193
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
194
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.
195
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
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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).
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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)
FOR THE YEAR 2009 (1.1.2009 to 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%
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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)
199
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. No.
Class Sanctioned strength
Total no. of employees in position
No. of SC employees
% to total employees
No. of ST employees
% to total employees
No of OBC employees
% to total employees
1 2 3 4 5 6 7 8 9 10
1. Group 'A' 30 29+1*
(*on trg)
01 3.33 - - - -
2. Group 'B' (Gaz)
43 40 07 16.27 01 2.32 02 4.65
3. Group 'B' (Non-Gaz)
76 67 10 13.15 03 3.94 06 7.89
4. Group 'C' 74 63 12 16.21 03 4.05 03 4.05
5. Group 'D' (including Safaiwala/Frash
59 46 09 15.25 01 1.69 04 6.77
200
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 strength
Total no. of employees in position
No. of SC employees
% to total employees
No. of ST employees
% to total employees
No of OBC employees
% to total employees
1 2 3 4 5 6 7 8 9 10
1. Group 'A' 21 17 01 4.76 01 4.76 - -
2. Group 'B' (Gaz)
10 03 01 10 - - - -
3. Group 'B' (Non-Gaz)
- - - - - - - -
4. Group 'C' - - - - - - - -
5. Group 'D' (including Safaiwala/Frash
- - - - - - - -
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Annexure-VI
(PARA 10.13)
GRANT OF THE MINISTRY OF SHIPPING
FOR THE FINANCIAL YEAR 2008-2009
(Rs in crores)
Source: Appropriation Accounts 2008-09.
Grant No. & Name Original Supplementary Total
Budget Actual
Expenditure
Saving/
Excess Surrender
Grant No. 86
Revenue Account
1052.51 17.24 1069.75 817.29 33.80 218.66
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
202
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
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 1464.28
236.93 1174.90 1411.83 314.51 785.84 1100.35
206
Annexure-IX
(Para-10.14)
MINISTRY OF SHIPPING
DEPRECIATION RESERVE FUND
Rs in crores
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
207
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.
208
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.
