What happened in Union Budget 2026 (Coastal Cargo Promotion Scheme)
The Union Budget 2026 announced the launch of a Coastal Cargo Promotion Scheme to increase the combined share of inland waterways and coastal shipping from 6% to 12% by 2047. The Coastal Cargo Promotion Scheme is at the formation stage (not yet operational as per the written reply).
Present status and government measures supporting coastal shipping
The Ministry of Ports, Shipping and Waterways stated that it has been promoting coastal shipping through several initiatives. Key measures cited in the Rajya Sabha reply include the following:
Port-charge concession: 40% concession on port charges (vessel- and cargo-related charges) for coastal cargo vessels.Priority berthing policy: Priority berthing for coastal vessels to reduce turnaround time (time taken for a ship to load/unload and complete port operations) and improve utilization.GST reduction on bunker fuel: Reduction of GST on bunker fuel used by Indian-flag vessels from 18% to 5%.Green channel clearance: Green channel clearance for faster evacuation of coastal cargo at ports.
Coastal Shipping Act, 2025
Related current affairs
- Policy and regulatory measures to promote inland waterways, coastal shipping and multimodal logistics
- 182 port infrastructure and connectivity projects identified under PM Gati Shakti; Sagarmala port connectivity and green port initiatives
- Operational inland waterways: 32 National Waterways, funding allocation and cargo/passenger traffic details
- Jal Marg Vikas Project (JMVP) component-wise status and National Waterways infrastructure/policy annexures
- Regional development of National Waterways including Northeast, Southern, and other regions (project status and installations)
- Sagarmala programme and port modernisation: progress, connectivity projects and MoPSW assistance