After budget announcement, Centre to revise guidelines for coastal ferries

The ministry of ports, shipping, and waterways (MoPSW) has formed a high-level committee to rework the guidelines for operationalising Ro-Ro (roll-on roll-off) and Ro-Pax (passenger) ferry services along the country’s coast.

This comes after Finance Minister Nirmala Sitharaman announced a push for the sector in the 2023-24 Budget.

“Coastal shipping will be promoted as the energy-efficient and lower-cost mode of transport, both for passengers and freight, through the PPP (public-private partnership) mode with viability gap funding (VGF),” she had said.

MoPSW had released draft guidelines for these ferry services in June 2022, but could not finalise them due to revisions requested by stakeholders.

“In view of suggestions received from public and private stakeholders and with a vision to set up world-class infrastructure and services all along the coastline, the ministry has now constituted a high-level committee under the chairman, Deendayal Port Authority…” the ministry said.

This committee, after inducting the feedback received to make the projects viable in PPP mode, will draft the revised version of the model concession agreement for terminal operators and model licence agreement.

The committee will delve into the ground realities such as safety standards of vessels, control mechanism on excess boarding of passengers/cargo, online ticketing system, revenue accounting and sharing mechanism. These also include statutory clearances, exclusivity periods and inclusion of emerging technologies.

The Centre will prepare a structured document, which will eliminate unnecessary delays, disagreements and facilitate the smooth and safe operation of the Ro-Ro/Ro-Pax ferry service, the ministry said.

“These would also enhance the ease of doing business by instilling confidence among all stakeholders. It will attract more domestic and international businesses to invest and do business in the country,” MoPSW said.

Coastal shipping is an important cog in the Centre’s larger plan to meet its net-zero carbon emission targets. This mode of transport results in lower emissions compared to roadways and railways, which currently dominate India’s freight and passenger transportation volumes.

This committee’s final guidelines will streamline the future of Ro-Ro and Ro-Pax ferry development. It would implement the vision of harnessing waterways and integrating it with national economic development, Union shipping minister Sarbananda Sonowal said.