State’s new maritime policy proposes incentives for floatels, marinas; concessions to tourists

The incentives in the policy include land on lease for marinas, ship building-repairing, ship recycling facilities and concessions in tickets for floatels, amphibious buses, houseboats, seaplanes, and dinner cruises. These will in addition to the development of road and rail infrastructure for private ports

Mumbai: In order to give a fillip to maritime tourism in Maharashtra and give neighbouring Gujarat a run for its money, the state government has chalked out a five-year maritime policy offering incentives to business owners and tourists alike along with building various infrastructure projects.

Mumbai, India - March 10, 2017: Floating Restaurant at Bandra in Mumbai, India, on Friday, March 10, 2017. (Photo by Pratham Gokhale/Hindustan Times) (Pratham Gokhale/HT Photo)

The Maritime Development Policy 2023 (MDP-2023) is expected to be produced in the cabinet meeting early next week. Gujarat has a lot of concessions for the cargo transportation activities and they are ahead in maritime operations, informed an official from the ports department.

This prompted the government to add several first-time features like concessions on waterfront royalties, encouragement for waterfront activities etc to the MDP-2023.

The incentives in the policy include land on lease for marinas, ship building-repairing, ship recycling facilities and concessions in tickets for floatels, amphibious buses, houseboats, seaplanes, and dinner cruises. These will in addition to the development of road and rail infrastructure for private ports.

It has also proposed to offer priority docking for cruise vessels at ports and jetties, along with a 25% concession on ports charges. There is also a concession of 75% on passenger tickets for cruises for three years.

As part of its coastal recreation drive, the policy has proposed the development of lighthouses and tourist heritage destinations by helping cruise operators to partner with other operators for activities like water sports and guided tours at onshore sites.

“The Maharashtra Maritime Board (MMB) will encourage the operation of floatels, seaplanes and houseboats along the coastline and water bodies. The board will finalise SOP and guidelines for amphibian buses, fishing vessels, cruises and floating cottages,” the policy has proposed.

While drafting the policy, the port department of the state government has taken stern competition from Gujarat into consideration.

“The neighbouring state has a lot of concessions for the cargo transportation activities and they are way ahead in operations though we house the largest port (JNPT) in our state. The policy offers incentives and tax holidays on par with Gujarat. The state government will provide financial assistance to the operator, who will have to bear only 50% of the cost of the road connectivity to its port. The existing policy mandates the whole onus on the operator. For the railway connectivity the state government has proposed to help the operators with support from the central government,” said an official from the Ports department.

It has also proposed the capital assistance of up to 60% of the project cost for setting up skill development centres for private units and to encourage CSR for skill development to tide over the dearth of skilled workforce.

The policy has proposed to incentivise industries to transport raw materials and finished products through coastal shipping. It also speaks about permitting the development of coastal berths that will handle only non-Exim cargo and passengers. To encourage green channel facilities at ports by encouraging through concession and lease agreements among others. “To optimise the use of jetties owned-operated by police, forest, and tourism departments will be allowed to operate round the clock. The water ambulances will however be permitted to use the existing infrastructure,” the proposed policy has stated.

To encourage a cluster-based approach to developing shipbuilding and repairing industries, the MDP2023 proposes a concession/lease period of 21 years with the provision of an extension of further 9 years. The policy has adopted a cluster-based approach to developing shipbuilding and ship-repairing industries. It also proposes to avail suitable locations for developing ship recycling facilities along the coastline. The policy also proposes a 30-year lease for the Marina projects, and 15 years for floatels, houseboats and seaplanes. “These projects will get 25% on port charges and 75% concessions on the tickets of floatels, houseboats and seaplanes,” he said.