The Ministry of Ports, Shipping and Waterways has provided details on the Coastal Cargo Promotion Scheme announced in the Union Budget 2026, which aims to increase the share of inland waterways and coastal shipping from 6% to 12% by 2047. The scheme is currently at the formation stage, but the Ministry has implemented several supporting measures including a 40% concession on port charges (both vessel and cargo-related charges) for coastal cargo vessels, priority berthing policy to reduce turnaround time, reduction of GST on bunker fuel used by Indian-flag vessels from 18% to 5%, green channel clearance for faster cargo evacuation, and the enactment of the Coastal Shipping Act, 2025.
Under the Sagarmala scheme, the Ministry has sanctioned 30 infrastructure development projects to promote Ro-Ro, Ro-Pax and passenger ferry services, with 18 projects worth ₹739 crore already completed. These completed projects have demonstrated significant efficiency improvements: the Ro-Pax ferry on the Ghogha-Hazira route in Gujarat reduces travel time from 12 hours by road to 4 hours by sea, while the Mumbai-Mandwa route in Maharashtra cuts travel time to Alibaug from 4 hours by road to just 1 hour by sea. Collectively, these services have benefited over 65 lakh passengers and more than 15 lakh vehicles and cargo-carrying trucks.
Additionally, 10 major ports have developed dedicated coastal berths specifically for coastal cargo operations. The allocation includes: Chennai Port Authority (1 berth), Cochin Port Authority (1 berth), Kamarajar Port Limited (2 berths), Jawaharlal Nehru Port Authority (1 berth), Paradip Port Authority (5 berths), V.O. Chidambaranar Port Authority (1 berth), Visakhapatnam Port Authority (1 berth), Mumbai Port Authority (3 berths), Syama Prasad Mookerjee Port Authority (3 berths), and New Mangalore Port Authority (2 berths).
This information was formally provided by Union Minister Sarbananda Sonowal in a written reply to the Rajya Sabha on July 28, 2026.