Shipping Ministry cuts port tariff to boost cruise industry hit amid COVID-19

at 6:06 pm
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New Delhi (NVI): The Union Ministry of Shipping today reduced tariff rates for cruise ships, leading to a 60-70 per cent cut in port charges to support cruise industry hit by the COVID-19 pandemic.

Shipping Minister Mansukh Mandaviya said it would be a huge boost to cruise tourism in India in line with Prime Minister Narendra Modi’s vision of putting the country on the global cruise map.

The Ministry said in a statement that it has rationalised tariff rates for cruise vessels plying on the rivers and oceanic waters of India.

The move is also aimed at boosting the pandemic-hit economy.

The port charges for a cruise ship will be charged at USD 0.085 per GRT (Gross Registered Tonnage) instead of USD 0.35 of current rate, for first 12 hours stay (‘Fixed Rate’) and USD 5 per passenger (‘Head Tax’). The ports will not charge any other rate like berth hire, port dues, pilotage, passenger fee, among others.

For the period exceeding 12 hours stay, the fixed charges on cruise ships will be equal to the berth hire charges payable as per SOR (Schedule of Rates), with 40 percent discount as applicable for cruise ships.

In addition, cruise ships making 1-50 calls per year will get 10 percent rebate, those making 51-100 calls per year to get 20 percent rebate and above 100 calls per year to get 30 percent rebate.

The rationalised tariff will come into effect immediately for a period of one year. The number of call made by cruise ships in India has increased from 128 in 2015-16 to 593 in 2019-20. “This rationalisation would also help to ensure that cruise calls at Indian Ports do not dry up completely,” the shipping ministry said in a statement.

“It will provide the opportunity to earn huge amount of foreign exchange and generate sizeable direct and indirect onshore employment in cruise tourism sector,” Mandaviya said.

-CHK