New Delhi, July 24 (Agency) Ministry of Ports, Shipping and Waterways (MoPSW) has directed all major ports to exempt all berth hiring and vessel related charges being currently levied to the Ro-Pax or passenger ferries for the next six months with immediate effect. This has been done to provide some quick respite to the sector from the impact of global increase in price of fuel, an official statement said on Sunday. The cost of marine fuel ‘Low Sulphur High Flash High Speed Diesel’ (LSHFHSD) has increased from Rs 76,000/KL to Rs 1,21,000/KL. Similarly, the cost of ‘Very Low Sulphur Fuel Oil’(VLSFO) has increased from Rs 40608/KL to Rs 80917/KL.
Notably in the beginning of FY 2021-22 the cost of marine fuel-LSHFHSD used to be 10-15 per cent less than retail diesel-HSD. Hence, effectively the rise is more than 40 per cent,’ the statement said. Recently Union Minister of MoPSW Sarbananda Sonowal had written to Finance Minister Nirmala Sitharaman and Petroleum Minister Hardeep Singh Puri urging them to extend their support to the sector by reducing taxes and price of the fuel. Sonowal said, “The rising Fuel cost at international level is now making our local Ro-Pax and Passenger Ferry operations unviable so this exemption of vessel and port related charges by MoPSWwill provide the necessary breather to this sector for the next 6 months.We have also requested MoPNG to consider reduction in Fuel prices and Ministry of Finance to lower the associated taxes on it so as to provide the necessary support to this sector in the present circumstances.”
MoPSW has also requested all the states to lower their rates of VAT over the HSD used by the sector. ‘Notably, marine fuel prices inclusive of taxes have cascading effect on the full value chain of Mass Surface Water transport system and ecosystem, the burden of which the ferry operators cannot pass on to the common public who has the option of using other Government subsidized public transport systems of rail or road. These operational hurdles will ultimately act as a stumbling block in establishing this budding ecosystem of surface water transportation in the country,’ Sonowal said. The Ro-Pax services implemented by Deendayal Port Authority between Ghogha and Hazira under Sagarmala Programme have reduced travel time from 12 hrs. to 4 hrs. The Ro-Pax ferry service has carried over 78,000 vehicles and more than 2.6 lakh passengers since inception, the statement added.