13 May 2012

The Union Minister of Shipping, Shri G.K. Vasan informed the Rajya Sabha today in a written reply to a question that the a hotline communication link between Indian Coast Guard (ICG) and Pakistan Maritime Security Agency (PMSA) was set up in November, 2006. Further, in the last Home Secretary level talks in March 2011 both sides agreed to task the ICG and PMSA to work on setting up a mechanism for release of inadvertent crossers (fishermen) and their boats on the same lines as the inadvertent crossers on land. The Minister further stated that a Protocol on Shipping services was also signed in December, 2006 between India and Pakistan, in which it has been, inter-alia, agreed that if a vessel of either country be involved in maritime peril or encounters any other danger off the coast or in the ports of the other country, the vessel, the cargo, the crew and the passengers shall receive the same assistance which is accorded to a national vessel, its cargo, crew and passengers. This will be subject to the respective laws and international obligations of the two countries.

The Union Minister of Shipping, Shri G.K. Vasan has informed the Rajya Sabha today in a written reply to a question that the Indian shipbuilding industry is adversely affected by multiple taxes and duties levied on it. The details of taxes and duties imposed on shipbuilding industry are given below: 

(i) Excise duty @ 5% plus 3% cess totaling 5.15% on domestic sale of ships. 

(ii) Value Added Tax (State VAT) on indigenous sale of ships as applicable in the States. 

(iii) Customs duty @ 10% (Basic Duty) plus Additional Duty, Counterveiling Duty and Cess totaling 26.85% is applicable on the capital items imported for shipbuilding works. 

The Minister further informed that the Government had extended Ship building subsidy scheme to all Indian Shipyards with effect from 25th October 2002 upto the period 14th August 2007, whereafter it expired. However, subsidy is being provided to all eligible shipbuilding contracts concluded upto 14th August 2007. The Ministry of Shipping has taken up with the Department concerned the need for grant of various direct/indirect tax incentives for the growth of shipbuilding sector. 

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