Inland
vessel building subsidy scheme:
Background
The
Ganga from Haldia to Allahabad (1620 Km), the Brahmaputra
from Dhubri to Sadiya (891 Km) and the West Coast Canal
from Kottapuram to Kollam along with Champakara and Udyogmandal
canals (205 Km) have been declared a National Waterways,
Infrastructure facilities such as fairway, terminals and
navigational aids are being provided in the three National
Waterways to facilitate efficient shipping and navigation.
With these facilities, the IWT mode with the inherent advantage
of fuel efficiency can provide an efficient and economic
transportation facility, which in turn would facilitate
substantial shift of cargo to this mode. The Inland Vessel
Subsidy Scheme is aimed at reducing the capital burden to
the prospective IWT carrier, which would enhance their profitability
and make the IWT tariff competitive which in turn would
result in shift of cargo to the IWT mode, dictated by the
market forces and optimum fairway capacity utilization in
the National Waterways.
Duration
of the Scheme
This scheme shall come into force from 1/4/2002 and remain
in force for a period of 5 years
Definitions
In this scheme, unless the context otherwise requires:
'Authority' means the Inland Waterways Authority of
India constituted under Section 3 of the IWAI Act, 1985.
'Budget' means the estimate of receipt and expenditure of
Authority for a financial year.
'Chairman' means the Chairman of the Authority.
'Inland Vessel' means a vessel registered under the Inland
Vessels Act, 1917.
'National Waterway' means any waterway declared by law as
a National Waterway under IWAI Act.
'Registration Certificate' means a certificate issued by
the registering authority under the Inland Vessels Act.,
1917.
Applicability
Inland
Vessel Building Subsidy Scheme (IVBSS) would be applicable
to both cargo & passenger inland vessels meant
for operation in National Waterways. The Subsidy would be
paid to the prospective ship owner, individual or company.
Amount of Subsidy
The
subsidy payable under this scheme would be equal to 30%
of the ex-factory price of the inland vessel and would be
determined in accordance with the process established hereinafter.
The subsidy will be available only for vessel acquired by
an Indian inland water transport entrepreneur from a shipyard
in India.
The scheme would be operated as a credit linked subsidy
scheme under which a part of cost of construction would
be met by financial institution/banks.The amount of subsidy
admission would be deposited with financial institution/bank
directly on fulfillment of all the conditions and completion
of construction of vessels laid down in the scheme for claiming
the subsidy.
Determining the price for the
purpose of subsidy
An
advisory Committee headed by a member rank officer of the
IWAI and consisting of representatives from Confederation
of India Industries (CII), Naval Architect of Director General
(Shipping), Indian Register of Shipping (IRS), National
Ship Design and Research Centre (NSDRC), Tariff Commission,
Ministry of Industry and Industrial Credit and Investment
Corporation of India (ICICI) will be formed for considering
the eligibility of vessels for subsidy. The Advisory Committee
would also draw the specifications from time to time and
this in turn will enable the price determination. Besides
this, the Advisory Committee will develop criteria for working
out standing cost for various types and sizes of inland
vessels eligible under IVBSS. The criteria recommended by
the Advisory Committee will be placed before the Authority/Board
of the Inland Waterways Authority of India (IWAI) and thereafter
approved by the Central Government.
A
committee, consisting of members representing Administration,
Technical, Financial & Cargo Wings of IWAI and representative
of the Ministry i.e DS(IWT), will be constituted for processing
the applications received from the entrepreneurs. For the
purpose of calculation of subsidy the price of the new vessel
to be built at the Indian Shipyard shall be determined by
this Committee on the basis of standard costing criteria
suggested by the Advisory Committee. The Committee's recommendations
will be submitted to the Chairman, IWAI for obtaining approval
of the Authority. The decision of the Authority shall be
final. The applications would be normally processed within
a period of four months and in principles approval of the
Authority will be conveyed accordingly to the applicant.
7. Eligibility criteria for claiming
subsidy
The
subsidy would be admissible on vessels acquired for operation
on National Waterways only. The entrepreneur shall have
to give an affidavit on stamp paper that the vessel built
shall be operated on National Waterways for a period of
eight years from the date of registration of the vessel.
In case of failure to do so, the entrepreneur will be liable
for refund of subsidy received with interest at the rate
of the Prime lending Rate i.e 12% as panel rate of interest
failing which the Authority will be free to have the vessel
seized and dispose off for recovery of dues.
Prioritisiation
The
Authority shall have the right to determine the order of
priority taking into account all relevant considerations
such as number of applications received, the priority areas
and cargo for operations etc. and availability of fund at
any point of time. The Authority/Board will decide the prioritization
of the cases.
Category of Inland Vessels for
which subsidy is admissible
The
subsidy will be available for all the vessels registered
under I V Act 1917 and also for dumb barges.
In respect of vessels, which are nor mechanically propelled
instead of registration under I.V. Act, any registration
by the State authority may be accepted.
In view of the position brought out in Para-4, the Authority
of IWAI will decide the category for which the subsidy will
be admissible.
Methodology for administering
subsidy
Applications
for intention of availing subsidy under this scheme will
be submitted to the Chairman, IWAI in the prescribed proforma
given at Annex-1. The authority would consider the application
competent to sanction and IWAI will intimate the entrepreneur,
in principle approval of Inland Vessel Building (IVB) subsidy
normally within a period of four months from the receipt
of application, complete in all respects. In case the application
is rejected, it will be conveyed by the Authority within
15 days from the date of receipt of the application. However,
in case due to some reasons the rejection could not be conveyed
within 15 days, the firms concerned should not presume automatic
approval of their application(s). IWAI will give reasons
in writing to firms/applicants for any delay beyond 15 days.
The
subsidy would be payable by IWAI to the entrepreneur upon
taking delivery of the vessel and registration of the same
under Inland Vessels Act or any other State Act as recognized
by the Authority, as per Para 9 above.
A claim for release of subsidy with respect to approved
proposal is to be submitted to the Chairman. IWAI, A-13,
Sector -01, NOIDA -201301 not later than a period of 90
days from the date of taking delivery of the vessel for
which subsidy is claimed along with the registration certificate
and the certificate from builder about completion of vessel.
The application form for claiming vessel building subsidy
under the IVBSS (Inland Vessel
Building Subsidy Scheme) is given at form2.
Authority
competent to sanction and release of subsidy
The
Authority for sanction and release of subsidy will be the
Chairman, IWAI
IWAI shall make efforts to disburse the vessel Building
Subsidy within a period for four months from the date of
receipt of the claim from the IWT entrepreneur. However,
in case of delay on any account, no interest will be payable
to the claimant.
Any amendment to the Inland Vessels Act, 1917 or the IWAI
Act, 1985 or any other concerned law or rule shall correspondingly
be applicable to the subsidy scheme to the extent it would
have bearing on the scheme.
General
The
subsidy shall be paid/released only at the end of the completion
of the vessel and registration. In case any entrepreneur
is found claiming subsidy by misrepresentation or dishonest
or fraudulent means, the Authority reserves the right to
seize the vessel and to recover the subsidy so paid out
of the sale proceeds received. Besides, the claimant shall
be liable for prosecution as per law.
The
release of vessel building subsidy by the IWAI from time
to time will depend upon the availability of funds with
the Authority in the budget for a particular financial year.
No interest will be payable in respect of delay in disbursement
of subsidy in any given year.
Interpretation
If
any question arises in regard to interpretation of this
scheme it shall be referred to the Government who shall
decide the same and its decision shall be final.
