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India redrafts its Maritime Vision - MIV 2030
Read more on - Polity | Economy | Schemes | S&T | Environment
- A new vision: While from 2015, the government spoke of the 'Sagarmala programme', an ambitious set of hundreds of large projects, changing times led to its junking. A new vision has now emerged, with the Indian PM inaugurating the ‘Maritime India Summit 2021,’ releasing the e-book of ‘Maritime India Vision-2030’ (MIV-2030).
- MIV 2030: Why is the maritime sector in India significant? Simple reasons include India’s coastline being 1.05% of the global coastline, the Indian maritime sector accounting for 95% of EXIM (export-import) trade by volume, and it being a significant employment generator. India accounted for 10.4% of global maritime trade in FY 2019, contributing 9.03% of the total seafarers (officers) globally. This makes Indian an integral part of the shipping ecosystem. Its position in the global maritime sector is fundamental for international trade.
- Port capacity utilization: The maritime trade is facilitated by the growing port capacity in India, and in FY 2019, the capacity for Indian ports stood at 2,377 million tonnes per annum (mtpa). It handled traffic of 1,281 mtpa, and 12 major ports accounted for 1,514 mtpa of capacity handling 699 mtpa of traffic, leading to utilisation of a mere 46.2%. Non-major ports accounts for 863 mtpa of capacity, handling 582 mtpa of traffic, which is an utilisation of 67%. Thus, key enhancements in policy, investment, operations and technology are crucial.
- Maritime India Vision 2030: The ministry of ports, shipping and waterways has launched the MIV-2030. It projects cargo traffic to reach 2,570 mtpa by 2030, and outlines 10 broad themes, and 150+ initiatives. These are broadly aimed at development of port ecosystem, port operations and services, waterways and, shipping and cruises.
- Projects/initiatives being planned:
- Mega-port clusters - For ports, world-class infrastructure will form the backbone of the envisioned transformation. In line with global trends of mega-ports, development of four mega-port clusters with capacity of more than 300 mtpa is planned. These will come in the states of Gujarat, Maharashtra, Tamil Nadu and West Bengal-Odisha. These clusters were post evaluation of industrialisation and hinterland-connectivity potential. Since the sector has been moving towards mega vessels, an increase of the draft at all major Indian ports is targeted.
- Transshipment hub - India’s strategic location has long required development of a transshipment hub for better efficiency in maritime trade. The ministry would thus work towards developing a transshipment hub (TS) in South India. At present, approximately 75% of India’s transshipment cargo is handled by ports outside India. These include Colombo, Singapore and Klang. This increases the cost/TEU for EXIM players. [A TEU or Twenty-foot Equivalent Unit is an exact unit used to measure cargo capacity for container ships and container terminals. It is a shipping container whose internal dimensions measure about 20 feet long, 8 feet wide, and 8 feet tall.]
- Procedural measures - Automation of ports, seamless movement of cargo and paperless transactions are basic needs now. Currently, lack of digitalisation, lack of availability of real-time information and limited standardisation of port procedures are negatively impacting seamless trade. Hence, steps have been identified in MIV to improve ease of doing business in the maritime sector. A National Logistics Portal (Marine) is to be launched as an integrated platform for all EXIM stakeholders enabling 100% paperless processes.
- Manufacturing and logistics - Concrete steps have been identified for driving Aatmanirbhar Bharat through increased manufacturing and decreasing logistics cost. Pockets with high potential to undertake port-led industrialisation, spread over 6,000 acres, have been identified. This would be complemented with projects aimed at reducing logistics cost.
- Environment friendly - MIV-2030 also aims at building safer and environmentally-sustainable ports. Some of the key measures to develop Green Ports include - increased share of renewable energy in port operations, sustainable use of dredging material, reducing freshwater consumption and emissions, promoting development of ‘zero accident’ ports, real-time monitoring of HSE KPIs [Health and Safety KPIs (Key Performance Indicator)]
- Shipping - On the shipping front, MIV aims to make India the leading ship recycling and repair hub. It also aims to increase the gross tonnage of ships built in India by more than 15 times. This would be achieved through - channelization of domestic demand for ship-building and repair, leveraging Right of First Refusal (RoFR) rules under Aatmanirbhar Bharat Scheme
- Trade and cooperation - To increase regional maritime cooperation and trade, a BIMSTEC centre is planned to be established in India. It would facilitate infrastructure investment and trade agreements with BIMSTEC countries. (BIMSTEC - Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation)
- Inland water transport - India is endowed with various Inland Water Transport (IWT) options comprising rivers, canals, backwaters, creeks, and tidal inlets. These provide environmentally-friendly mode of freight logistics and passenger transport with lower operating costs. The government has prioritised development, over the next 10 years, of 23 National Waterways (NWs) with significant traffic potential. NW 1 (Ganga-Bhagirathi-Hooghly system) and NW 2 (Brahmaputra) hold immense significance as they connect neighbouring countries with India’s hinterland.
- Cruise tourism - Development potential of sectors like cruise tourism (both river & ocean cruise) has also been identified as a part of the vision. To this end, government has already undertaken several measures like rationalisation of port charges, cabotage relaxation for foreign vessels, expedited immigration and development of cruise terminals. Themes-based coastal and island circuits have also been identified on a priority basis.
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