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Ministry launches cargo transportation incentives

The Ministry of Shipping has launched a “Scheme for Incentivising Modal Shift of Cargo” (SIMSC), according to Pon Radhakrishnan, Minister of State for Road Transport & Highways and Shipping, in the Lok Sabha on March 10, 2016.

The incentives under SIMSC will be provided to the beneficiaries for undertaking transportation of the following categories of cargo through Indian flag vessels, river sea vessels or barges along coastal shipping and inland waterway routes.

Transportation of bulk or break-bulk cargo pertaining to seven commodities viz fertilisers, foodgrains, marbles, tiles, sugar, edible salt and over-dimensional cargo, shall be eligible for an incentive at Rs 1 per ton per nautical mile up to a maximum of 1,500 nautical miles in each trip starting from origin and ending at the destination. The number and type of commodities under this head are subject to revision by the government from time to time. 

Transportation of any commodity in containers in full container load (FCL) shall be eligible for an incentive at Rs 3,000 per TEU. Thus, transportation of any commodity through 40 feet or other larger-sized containers shall be incentivised based on the number of times the said container size can be converted into TEUs. 

In addition, as per TAMP guidelines, concession on tariff is permitted and, accordingly, the cargo/container related charges for all coastal cargo other than iron ore, thermal coal and POL should not exceed 60% of the normal charges.