Cab­i­net note on In­dia-Bangladesh trade

Much ef­fort has al­ready been put in de­vel­op­ing the coastal trade be­tween In­dia and Bangladesh by the two coun­tries. In fact, in June, the modal­i­ties of coastal shipping were dis­cussed and fi­nalised by the two coun­tries at a del­e­ga­tion-level talks with Ban

Cargo Talk - - Shipping - CT BUREAU

The Shipping Min­istry is likely to float a draft cab­i­net note by Novem­ber for im­ple­ment­ing coastal shipping be­tween In­dia and Bangladesh, an ini­tia­tive that will boost trade be­tween both the neigh­bours.

“In Novem­ber, Draft Cab­i­net Note would be cir­cu­lated for com­ments for im­ple­ment­ing the coastal shipping be­tween In­dia and Bangladesh," Shipping Min­istry said in a pre­sen­ta­tion to PM Naren­dra Modi.

Out­lin­ing plans for the growth of the sec­tor, it has said ap­proval of the Cab­i­net on the pro­posal will be sought by De­cem­ber.

The de­vel­op­ment fol­lows the In­dian gov­ern­ment last month an­nounc­ing that a ba­sic un­der­stand­ing on com­mence­ment of coastal shipping has been ar­rived at be­tween both the na­tions.

The Min­istry has said the modal­i­ties of coastal shipping were dis­cussed and fi­nalised by the two coun­tries at a del­e­ga­tion-level talks with Bangladesh side on June 24.

“It was de­cided that both the coun­tries should follow River Sea Ves­sels (RSV)-IV clas­si­fi­ca­tion for the Coastal Ves­sels and also that third party in­surance cover of at least Rs 60 crore would be ap­pli­ca­ble to the in­di­vid­ual coastal ves­sels,” the pre­sen­ta­tion said.

It said the In­dian side al­ready has RSV-IV coastal ves­sels and GIC and its sub­sidiaries pro­vide for re­quired in­surance cover as well.

“How­ever, the Bangladesh side does not have any cer­ti­fi­ca­tion stan­dards nor do their in­surance com­pa­nies pro­vide the re­quired in­surance cover. Bangladesh side will be get­ting their coastal ves­sels clas­si­fied to RSV-IV stan­dards and have also re­quested their gov­ern­ment in­surance company to pro­vide in­surance cover to coastal shipping,” it said, adding that the process is likely to be com­pleted by Bangladesh by next month.

Last month, the gov­ern­ment had said trial runs be­tween ports in the two coun­tries were slated by Oc­to­ber 14 for coastal shipping.

The Chit­tagong port is 150 km off Agar­tala, the cap­i­tal of Tripura state, and more than 350 km away from Kolkata via Bangladesh, while dis­tance be­tween Tripura and Kolkata is about 1,650 km through the rugged hilly ter­rain.

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