COASTAL CARGO PROMOTION SCHEME

1. At a Glance

2. Why in the News

3. Background & Evolution

4. Core Static Facts

Item Detail
Announcing platform Union Budget 2026–27 [S2]
Nodal Ministry Ministry of Ports, Shipping and Waterways (MoPSW) [S1]
Current status Formation/design stage (as of July 2026) [S1]
Target Coastal shipping + inland waterways share: 6% → 12% by 2047 [S1][S2]
Projected cargo shift ~800 million tonne-kilometres to inland waterways — ~17% of current National Waterways cargo movement [S1]
Existing support measure 1 40% concession on port vessel and cargo-related charges for coastal cargo vessels [S1]
Existing support measure 2 Priority berthing policy for coastal vessels to cut turnaround time [S1][S3]
Existing support measure 3 GST on bunker fuel for Indian-flag vessels cut from 18% to 5% [S1]
Existing support measure 4 Green Channel clearance for faster evacuation of coastal cargo [S1]
Related predecessor scheme Sagarmala Coastal Berth Scheme — 75 projects, ₹2,985 crore sanctioned [S3]

5. Multi-Dimensional Analysis

Economic - Coastal/inland waterways transport is cheaper per tonne-km than road/rail, so a higher modal share lowers overall logistics cost as % of GDP, a long-standing NITI Aayog/national logistics policy concern [S1]. - Priority berthing and charge concessions reduce turnaround time and operating costs for coastal shipping operators, improving vessel utilization [S1][S3].

Environmental - Water transport is more fuel-efficient per tonne-km, so a 6%→12% shift supports lower emissions and better energy efficiency, aligning with India's climate commitments [S1][S2].

Administrative - Implementation runs through Major Ports (priority berthing mandated at major ports irrespective of cargo origin/destination) [S3], meaning coordination between MoPSW, Port Trusts/Port Authorities, and state maritime boards for non-major ports. - Scheme currently lacks finalized guidelines/funding pattern — being at "formation stage" is itself an examinable administrative fact [S1].

Governance/Policy Design - CCPS builds incrementally on existing fiscal incentives rather than starting from scratch — a case of policy layering (concessions + Sagarmala infra + new scheme) rather than a standalone intervention [S1][S3].

6. Recent Developments (last 12–18 months)

7. Prelims Hooks

8. Mains Relevance

9. Related Topics to Study Next

10. Common Errors / Trap Areas

11. Sources