modal shift of domestic cargo transportation from existing modes such as road and rail to Coastal and Inland Waterway transport

IMPLEMENTATION GUIDELINES
FOR
SCHEME FOR INCENTIVISING MODAL SHIFT OF CARGO
(SIMSC)
GOVERNMENT OF INDIA
MINISTRY OF SHIPPING
TRANSPORT BHAWAN, 1, PARLIAMENT STREET
NEW DELHI – 110 001.
Implementation Guidelines for
Scheme for Incentivising Modal shift of cargo (SIMSC)
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IMPLEMENTATION GUIDELINES
FOR
SCHEME FOR INCENTIVISING MODAL SHIFT OF CARGO
(SIMSC)
Implementation Guidelines for
Scheme for Incentivising Modal shift of cargo (SIMSC)
Page 3 of 36
TABLE OF CONTENTS
Abbreviations 7
Preface 8
Section 1. Introduction to SIMSC 10
1.1. Details of the SIMSC 10
1.1.1. Vision 10
1.1.2. Objectives 10
1.1.3. Title and Enforcement 10
1.1.4. Plan provision for the Scheme 11
1.1.5. Monetary incentives 11
1.1.6. Incentives available under SIMSC 11
Section 2. Scheme Implementation Overview 13
2.1. Roles and responsibilities of stakeholders 13
2.1.1. Beneficiaries 13
2.1.2. Coastal Shipping Cell (CSC) 13
2.1.3. Indian Ports Association (IPA) 14
2.1.4. Major Ports, Designated Non-major Ports, and IWAI 14
2.1.5. Monitoring Committee 15
2.2. Scope of scheme implementation 15
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2.2.1. Categories of Incentives in the Scheme 15
2.2.2. Categories of cargo eligible for grant of incentives 16
2.2.3. Beneficiaries under the scheme 17
2.2.4. Designated Non-major Ports under the scheme 17
2.2.5. Eligibility of vessels under the scheme 17
2.2.6. Eligibility of routes under the scheme 18
2.2.7. Disbursement of Incentives 18
Section 3. Roles and Responsibilities of stakeholders 20
3.1. Role of Beneficiaries 20
3.1.1. Registration of Beneficiaries 20
3.1.2. Submission of cargo details prior to voyage 20
3.1.3. Submission of claims after completion of voyage 21
3.2. Role of Major Ports 21
3.2.1. Appointment of a Nodal Officer 21
3.2.2. Load Certification by Major Ports 21
3.2.3. Discharge Certification by Major Ports 22
3.2.4. Disbursement of Incentives 22
3.3. Role of designated Non-Major Ports 22
3.3.1. Appointment of a Nodal Officer 22
3.3.2. Load Certification by designated non-major ports 23
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3.3.3. Discharge Certification by designated non-major ports 23
3.3.4. Disbursement of Incentives 23
3.4. Role of other Non-Major Ports 24
3.4.1. Appointment of a Nodal Officer 24
3.4.2. Load Certification by other non-major ports 24
3.4.3. Discharge Certification by other non-major ports 24
3.5. Role of IWAI 24
3.5.1. Appointment of a Nodal Officer 24
3.5.2. Load Certification by IWAI terminals/jetties 25
3.5.3. Discharge Certification by IWAI terminals/jetties 25
3.5.4. Disbursement of Incentives 25
3.6. Role of IPA 26
3.6.1. Development and Maintenance of SIMSC module in PCS 26
3.6.2. Consolidation of names of Nodal Officers 26
3.6.3. Consolidation of claims for reimbursement 26
3.6.4. Coordination among stakeholders 26
3.7. Role of Monitoring Committee 27
3.7.1. Constitution of the Committee 27
3.7.2. Meetings of the Committee 27
3.7.3. Recommendations for reimbursement of claims 27
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3.7.4. Recommendations to Secretary, Ministry of Shipping 27
3.8. Role of Coastal Shipping Cell 28
3.8.1. Secretariat of the Monitoring Committee 28
3.9. Review or Revision of the Scheme 28
3.9.1. Interpretation of the Scheme 28
3.9.2. Review/Revision of the orders of the Committee 28
4. Scheme Implementation Details 29
4.1. Disbursement Of Claims 29
4.1.1. Registration of shippers 29
4.1.2. Registration of Vessel by Shipper 29
4.1.3. Registration of Voyage by the Shipper 30
4.1.4. Load Certification by a Nodal Officer 31
4.1.5. Discharge Certification by a Nodal Officer 31
4.1.6. Submission of claim for incentives under the scheme by the Shipper 31
4.1.7. Authorisation for disbursement of incentives 32
4.2. Manual reimbursement of claims 33
4.2.1. Consolidation of claims for reimbursement 33
4.2.2. Recommendations for reimbursement of claims 34
4.3. Automatic reimbursement of claims 34
ANNEXURE-I 36
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Abbreviations
CSC Coastal Shipping Cell
DDO Drawing and Disbursing Officer
FCL Full Container Load
GoI Government of India
GRT Gross Registered Tonnage
ID Identification Document
IMO International Maritime Organisation
IPA Indian Ports Association
IWAI Inland Waterways Authority of India
NRT Net Registered Tonnage
PCS Port Community System
PCC Pure Car Carriers
PCTC Pure Car and Truck Carriers
R&D Research and Development
RoPax Roll On Roll Off Cargo-cum-passenger Vessels
RoRo Roll On Roll Off Vessels
RSV River Sea Vessels
SIMSC Scheme for Incentivization of Modal Shift of Cargo
TEU Twenty Foot Equivalent Units
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Preface
Ministry of Shipping (MoS) is initiating a Scheme for Incentivizing Modal Shift of
Cargo, or, “SIMSC” in short, for the period, April 1, 2015 till March 31, 2017, of the
current (12th) Five Year Plan. The scheme aims to encourage modal shift of domestic
cargo transportation from existing modes such as road and rail to Coastal and Inland
Waterway transport. SIMSC proposes to achieve its objective by promoting coastal
shipping and inland waterway transportation as a viable alternative to road and rail
transportation by compensating for the costs incurred in availing first-mile and the lastmile
connectivity when the cargo is moved through coastal or inland waterways through
the provision of Central Financial Assistance (CFA). The scheme also seeks to address
other concerns including environmental degradation and social costs arising due to
congestion of existing road and railway networks. The scheme also endeavours to
encourage cargo movements linking riverine and coastal waterways in a seamless
manner.
These guidelines are meant to lay down a framework and guide the
implementation of SIMSC. It gives details of the various stakeholders crucial to
implementation of the scheme, their roles and responsibilities and key steps for
operationalizing the scheme. Keeping in mind the diverse cargo transportation needs of
the country, the Ministry of Shipping (MoS) seeks to incentivise certain identified
commodities when moved through coastal shipping route in various forms i.e. through
containers or as bulk/break-bulk cargo. These commodities have been identified on the
basis of their present low transportation through coastal and inland waterways yet
having a high potential for the same. Moreover, intra-national movement of automobiles,
which mostly takes N-S and S-N routes, finds special mention in the scheme and
incentives have been provided in the scheme to encourage such movement through
coastal and inland waterway route.
While, the shippers will be the beneficiaries since they play a decisive role in
selecting the mode of transportation, the scheme also aims at encouraging domestic
companies involved in the transportation of cargo through coastal or inland waterways
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to achieve adequate employment generation for people residing in the coastal or
riverside areas. This is proposed to be done by granting financial assistance under the
scheme only when the cargo is transported through Indian flag vessels, River-Sea
Vessels (RSVs) and barges operating on coastal or inland waterway route.
Apart from the shipping companies, another set of major stakeholders are the
major ports, non-major ports and Inland Waterways Authority of India (IWAI). The major
ports, non-major ports and IWAI have been involved for successful implementation of
the scheme. Trips involving any of these as origin or destination points in any leg of the
trip would be eligible for grant of incentives under the scheme except when there are
two non-designated non-major ports on both ends of the trip.
The vision and objectives for introducing the scheme have been detailed in
Section 1 of these guidelines. The stakeholders in the scheme have been highlighted
and identified in Section 2 of these guidelines. Their roles and responsibilities in the
implementation of the scheme have been detailed in Section 3 of the guidelines.
Section 4 lays down the entire workflow of the scheme and implementation modalities.
It is hoped that the stakeholders will find the scheme beneficial and it will help in
effecting modal shift of cargo movement from railways and roads to coastal and inland
waterway routes.
*****
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Section 1. Introduction to SIMSC
The Ministry of Shipping (MoS), Government of India (GoI), seeks to achieve
reduction in carbon emissions and decongestion of existing road and railways networks
through the provision of monetary incentives for moving cargo through coastal and
inland waterway network under the Scheme for Incentivizing Modal Shift of Cargo
(SIMSC).
1.1. Details of the SIMSC
1.1.1. Vision
The scheme envisions creation of a pan-India impetus for coastal and inland
waterway shipping which would also generate awareness on cost and environmental
benefits of inland waterway and coastal shipping among large scale manufactures and
traders of goods to consider them as viable modes of transportation of cargo thereby
reducing stress over road and railway networks which would also set up multimodal
logistic infrastructure.
1.1.2. Objectives
SIMSC has been initiated with the primary objective of encouraging use of
coastal and inland waterways transportation and incentivising modal shift of cargo
presently being transported through road and rail networks to coastal and inland
waterway shipping by compensating for the costs incurred in availing first-mile and the
last-mile connectivity for commodities that have the potential to be moved by such
waterway routes.
1.1.3. Title and Enforcement
i. Title of the Scheme: “Scheme for Incentivizing Modal Shift of Cargo (SIMSC)”.
ii. Name of the sponsoring agency: Ministry of Shipping, Government of India.
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iii. The scheme is proposed to be implemented initially for the period, April 1, 2015
till March 31, 2017, of the current (12th) Five Year Plan and will be reviewed thereafter
for continuation in the 13th Five Year Plan.
1.1.4. Plan provision for the Scheme
The plan provision for the scheme for the period, April 1, 2015 till March 31,
2017, of the current (12th) Five Year Plan is Rs. 295.875 Crores (Rupees Two Hundred
and Ninety Five Crores Eighty Seven Lakhs and Fifty Thousand only).
1.1.5. Monetary incentives
The scheme proposes to provide monetary incentives to beneficiaries when they
transport certain identified commodities, containerised cargo or automobiles, through
Indian flag vessels, on trip having either a major port, a designated non-major port or an
Inland Waterway Authority of India (IWAI) terminal/Jetty as the point of loading or
discharge.
1.1.6. Incentives available under SIMSC
The incentives under SIMSC are provided to the beneficiaries for undertaking
transportation of the following categories of cargo through Indian flag vessels, River Sea
Vessels or barges on coastal shipping and inland waterways routes, namely:-
(i) Transportation of bulk or break-bulk cargo pertaining to seven commodities viz.
fertilizers, food grains, marbles, tiles, sugar, edible salt and over-dimensional cargo,
shall be eligible for an incentive @ Re. 1 per tonne per nautical mile upto a maximum of
1,500 nautical miles in each trip starting from origin and ending at the destination. The
number and type of commodities under this head are subject to revision by the
government from time to time.
(ii) Transportation of any commodity in containers in Full Container Load (FCL) shall
be eligible for an incentive @ Rs. 3,000/- per TEU. Thus transportation of any
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commodity through forty feet or other larger sized containers shall be incentivised based
on number of times the said container size can be converted into TEUs.
(iii) Transportation of vehicles through Ro-Ro Vessels shall be eligible for the
following incentives:
(a) Incentive@ Rs. 300/- per two-wheeler vehicle;
(b) Incentive@ Rs. 600/- per three-wheeler vehicle; and,
(c) Incentive@ Rs. 3,000/- for other vehicles.
*****
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Section 2. Scheme Implementation Overview
The Ministry of Shipping (MoS) is the nodal ministry for the Scheme for
Incentivizing Modal Shift of Cargo (SIMSC). The present section presents an overview
of the scheme. The detailed roles and responsibilities of each of the stakeholders
highlighted in this section are mentioned in Section 3 of the guidelines. Similarly,
Section 4 of the guidelines mentions the steps required in the implementation of the
scheme in the module involving the said stakeholders.
2.1. Roles and responsibilities of stakeholders
2.1.1. Beneficiaries
The beneficiaries who wish to avail incentives under the scheme shall have to
get registered on PCS and will have to submit their claims for grant of incentives under
the scheme. The beneficiary will also upload relevant documents witnessing the
transportation of cargo. In case, a beneficiary is not satisfied with the decision of the
Nodal Officer at the point of disbursement, she may register her appeal with the
Monitoring Committee to be constituted by the Ministry of Shipping and if still
dissatisfied with the response of the Monitoring Committee, the beneficiaries may
register their grievances with the Secretary, Ministry of Shipping
2.1.2. Coastal Shipping Cell (CSC)
The Coastal Shipping Cell set up in the MoS will be responsible for operation of
the scheme. It will also monitor implementation and undertake various other tasks to
ensure successful implementation of the scheme including ensuring effective
coordination and convergence among concerned stakeholder organisations and
agencies. The Cell will also service the Monitoring Committee to be set up as proposed
in Para 2.1.4 of the guidelines.
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2.1.3. Indian Ports Association (IPA)
The Indian Ports Association (IPA), which is a society registered under the
Societies Registration Act, 1860 and oversees coordination among major ports and the
MoS, shall play an important role in the scheme’s implementation. IPA also manages
Port Community System (PCS), which is a single technology based platform that brings
together all the stakeholders and shares information on cargo movement at the ports.
All the major ports and certain non-major ports are already using PCS. A new webenabled
software module has been developed and incorporated in PCS for
implementation of the scheme. The module will record cargo movements and also
ensure monetary payments of the incentives in the bank accounts of the shippers. IPA
shall also ensure coordination between the major ports, designated non-major ports and
IWAI on various issues connected with implementation of the scheme. IPA shall ensure
that all the claims received from the major ports, the designated non-major ports or
IWAI are thoroughly scrutinised and verified before the same are put up for approval of
the Monitoring Committee for reimbursement to the entity that has disbursed incentives
to the shippers. The necessary administrative expenses for implementing the module
and the scheme, including staffing costs, shall be borne by IPA and will be reimbursed
to IPA by the Ministry of Shipping after due approval.
2.1.4. Major Ports, Designated Non-major Ports, and IWAI
The major Ports, designated non-major Ports, and IWAI will register the
beneficiaries for grant of incentives on voyages eligible for such incentives under the
scheme.
Further, till such time, the automated system for disbursements to the
beneficiaries is not developed in the PCS or in case there are any problems in the
functioning of the disbursement module, the incentives will be disbursed directly to the
beneficiaries by the major ports, designated non-major ports and IWAI. After
disbursements, these entities will compile all claims for reimbursement by the Ministry of
Shipping and submit the same to IPA. IPA will submit the details of all claims for
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consideration and approval of the Monitoring Committee. In such cases, the major
ports, designated non-major ports and IWAI will open separate bank accounts for
operation of the scheme and payments (advance and reimbursement of claims) to the
major ports, designated non-major ports and IWAI will be made in these accounts by
the Ministry of Shipping.
After the operationalization of the automated system for disbursements in PCS,
these entities will only have the role of approving loading and discharge of eligible
cargo.
2.1.5. Monitoring Committee
A Monitoring Committee will be constituted in the Ministry of Shipping to monitor
the implementation and outcomes of the scheme. In cases and times when the PCS
module (that will inter alia ensure monetary payments of the incentives to the accounts
of the shippers), is not operational, the Monitoring Committee will also function to
ensure reimbursements to the participating major ports, designated non-major ports and
IWAI. Similarly, in case of failures of the module, the Committee will continue
overseeing the reimbursement function. The Committee shall hold monthly meetings
and will approve the claims for reimbursement to the major ports, designated non-major
ports or to the IWAI as per consolidated claims submitted to it by IPA.
2.2. Scope of scheme implementation
2.2.1. Categories of Incentives in the Scheme
The incentives under the scheme are provided to the beneficiaries for
undertaking transportation of the following categories of cargo through Indian flag
vessels, River Sea Vessels or barges, namely:-
(i) Transportation of bulk or break-bulk cargo pertaining to seven commodities viz.
fertilizers, food grains, marbles, tiles, sugar, edible salt and over-dimensional cargo,
shall be eligible for an incentive @ Re. 1 per tonne per nautical mile upto a maximum of
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1,500 nautical miles in each trip starting from origin and ending at the destination. The
number and type of commodities under this head are subject to revision by the
government from time to time.
(ii) Transportation of any commodity in containers in Full Container Load (FCL) shall
be eligible for an incentive @ Rs. 3,000/- per TEU. Thus transportation of any
commodity through forty feet or other larger sized containers shall be incentivised based
on number of times the said container size can be converted into TEUs.
(iii) Transportation of vehicles through Ro-Ro Vessels shall be eligible for the
following incentives:
(a) Incentive@ Rs. 300/- per two-wheeler vehicle;
(b) Incentive@ Rs. 600/- per three-wheeler vehicle; and,
(c) Incentive@ Rs. 3,000/- for other vehicles.
2.2.2. Categories of cargo eligible for grant of incentives
The following categories of cargo are eligible for grant of incentives under the
scheme, namely:-
(a) The bulk or break-bulk cargo commodities identified for grant of incentive in
category (i) of Para 2.2.1 of the guidelines such as fertilizers, food grains, marbles, tiles,
sugar, edible salt and over-dimensional Cargo, are subject to revision from time to time
by the Ministry of Shipping based on trade demand, market trends and funds availability.
(b) For grant of incentive in category (ii) of Para 2.2.1 above, any type of commodity
carried in containers in Full Container Load will be eligible for grant of incentives. The
incentive will be granted based on number of TEUs comprising the size of the
containers carrying the commodities. No incentive will be granted on fractional amounts
of TEUs arising out of conversion of container size into TEU. Similarly, the incentive will
not be granted for empty containers or containers carrying EXIM cargo.
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(c) For grant of incentive in category (iii) of Para 2.2.1 above, only automobiles in the
form of two-wheelers, three-wheelers, four-wheelers (including HMV and LMV) will be
eligible for benefit.
(d) In case of trucks or trawlers carrying automobiles, containers (any commodity) or
identified bulk or break-bulk cargo, the incentives as per Para 2.2.1 above will be
provided only for the respective commodities carried by such trucks or trawlers, in
cases, where such trucks or trawlers are transported over Ro-Ro vessels.
2.2.3. Beneficiaries under the scheme
The incentives under the scheme shall be granted only to the shippers of the
cargo being transported either through coastal shipping or inland waterways or both.
The shipper shall include the person who holds ownership over the goods being
transported and may include consignor or consignee.
2.2.4. Designated Non-major Ports under the scheme
The disbursement of incentives to the beneficiaries is proposed to be done by the
major ports, designated non-major ports and IWAI. Initially, the non-major ports which
are already connected to the Port Community System (PCS) shall be designated for
disbursement of incentives as well as claim reimbursement for incentives granted under
the scheme. For other non-major ports to be designated as eligible points of
disbursement and reimbursement under the scheme, the concerned port authorities
may approach the Coastal Shipping Cell for the same through State Maritime
Boards/concerned Port/Shipping Departments of the States/Union Territories.
2.2.5. Eligibility of vessels under the scheme
The cargo carried through Indian-flag vessels, River Sea vessels or barges shall
be eligible for benefits under the scheme. Also the Indian Flag Ro-Ro vessels could be
of any form – hybrid-RoRo, PCTC, RoPax or PCC.
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2.2.6. Eligibility of routes under the scheme
The eligible cargo carried through inland waterway or coastal shipping routes
which involve at least one major port, designated non-major port or IWAI terminal/jetty
at the point of loading or discharge shall be eligible for benefits under the scheme. The
following table represents the eligible cargo transportation routes under the scheme:
Table 1: Eligible cargo transportation route
FROM
(Point of
Loading)
TO (Point of Discharge)
Major Port
Designated
non-major port
Other nonmajor
port
IWAI
terminals
Major Port ELIGIBLE ELIGIBLE ELIGIBLE ELIGIBLE
Designated
Non-major port
ELIGIBLE ELIGIBLE ELIGIBLE ELIGIBLE
Other Nonmajor
port
ELIGIBLE ELIGIBLE NOT ELIGIBLE ELIGIBLE
IWAI terminals ELIGIBLE ELIGIBLE ELIGIBLE ELIGIBLE
2.2.7. Disbursement of Incentives
Till such time, the automated system for disbursements to the beneficiaries is not
developed in the PCS or in case there are any problems in the functioning of the
disbursement module, the incentives will be disbursed by the major ports, designated
non-major ports and IWAI. These entities will then claim reimbursement from the MoS.
In case the automated system of direct disbursements is operationalized, there will be
no need for reimbursement to the major ports, designated non-major ports and IWAI as
the disbursement will be deducted directly from the account of the Ministry of Shipping
after the approval for such disbursement. The following table denotes the entity, either
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at the point of loading or the point of discharge, which will disburse incentives for
transportation of eligible cargo eligible under this scheme:
Table 2: Disbursing Entity on eligible cargo transportation route
FROM
(Point of
Loading)
TO (Point of Discharge)
Major Port
Designated
non-major port
Other nonmajor
port
IWAI
terminals
Major Port
Loading
Major port
Major port Major port IWAI
Designated
Non-major port
Major port
Loading
Designated Nonmajor
port
Designated Nonmajor
port
IWAI
Other Nonmajor
port
Major port
Designated Nonmajor
port
NOT ELIGIBLE IWAI
IWAI terminals Major port IWAI IWAI IWAI
*****
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Section 3. Roles and Responsibilities of stakeholders
The Scheme shall be implemented using the Port Community System (PCS). Till
such time, the automated system for disbursements to the beneficiaries is not
developed in the PCS or in case there are any problems in the functioning of the
disbursement module, the incentives will be disbursed by the major ports, designated
non-major ports and IWAI who will then claim reimbursement from the Ministry of
Shipping. In case of automated module for disbursement to the beneficiaries is
operationalized, the scheme account of the Ministry of Shipping would be automatically
deducted on approval of disbursement by the Nodal Officers at the point of
disbursement. The incentives, however, shall in all cases, go directly to the bank
accounts of the eligible shipper. The roles and responsibilities of each of the
stakeholders as highlighted in Section 2 of the guidelines are mentioned in detail in this
section.
3.1. Role of Beneficiaries
3.1.1. Registration of Beneficiaries
The beneficiaries who wish to avail incentives under the scheme shall have to
get registered on IPA website (http://www.ipa.nic.in) in a module in PCS meant for the
purpose. The relevant documents required for registration are mentioned at Annexure-I.
On registration, the beneficiary will be provided unique ID and password for logging
onto the PCS website and availing incentives for eligible trips under the scheme.
3.1.2. Submission of cargo details prior to voyage
For availing the incentive under SIMSC, the beneficiary shall be required to
submit details of cargo movement through an online application form in the PCS at least
three days prior to the movement of such cargo. In case, the vessel on which the
beneficiary proposes to move the cargo is not registered in PCS, the beneficiary will
submit details of the vessel at least five days prior to movement of such cargo and on
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receipt of approval of vessel registration, shall submit the details of movement of cargo.
Every application pertaining to a voyage will be allotted unique Transaction Number.
The PCS system will in turn forward the application to the port/IWAI which will be
responsible for disbursing the incentives as per the Table in Para 2.3.6.
3.1.3. Submission of claims after completion of voyage
After completion of the voyage, and, after receipt of discharge certification by the
Nodal Officer at the point of discharge, the beneficiary will submit her claim for grant of
incentives and will upload the relevant documents about the movement of cargo within
three days of the completion of voyage. The said documents should certify the total
quantity of cargo carried in case of bulk/break cargo transportation, or, total number of
FCL containers or vehicles transported. Scanned copy of Bill of Coastal Goods (BCG)
duly endorsed by customs authorities at the port of loading and the port of discharge
should be provided wherever the cargo is loaded or discharged through customs area.
In case of loading or discharging through IWAI terminals, scanned copy of documents
certified by IWAI should also be uploaded.
3.2. Role of Major Ports
3.2.1. Appointment of a Nodal Officer
Each major port will appoint a Nodal Officer for overseeing registration of
beneficiaries and verifying and certifying the eligibility and admissibility of the claims of
the shippers. The Nodal Officer shall also be responsible for disbursing of incentives to
the shipper. The Nodal Officer shall be allotted unique user ID and password to login
into the PCS system.
3.2.2. Load Certification by Major Ports
In case the cargo is being loaded at any of the major ports, the Nodal Officer at
the major port shall certify the details of cargo loaded at the major port onto the
application. The system will then forward the application to the point of discharge.
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3.2.3. Discharge Certification by Major Ports
In case, the cargo is being discharged at any of the major ports, the Nodal Officer
at the discharging major port shall certify discharged cargo details at the major port on
the application in the PCS. After such certification, the application will be forwarded to
the beneficiary to upload relevant documents.
3.2.4. Disbursement of Incentives
In case, as per the Table 2 at Para 2.3.7, major port is the point of disbursement,
the Nodal Officer at such major port, on receipt of application after uploading of relevant
documents from the shipper, shall ascertain the admissibility of the incentive under the
scheme. In case any additional information is required, the Nodal Officer may seek the
information from the beneficiary through the system within 1 day of the receipt of the
final application. No more than 2 queries can be made by the Nodal Officer after the first
receipt of the final application from the shipper. The decision for disbursement or denial
of incentives has to be taken within 5 days of the receipt of the reply to the last query of
the Nodal Officer from the shipper. The Nodal Officer shall authorize disbursement to
the bank account of the beneficiary as registered in the PCS.
3.2.5. Consolidation of claims for reimbursement
The nodal Officer shall consolidate the claims accruing due to the disbursements
made to the beneficiaries, on a monthly basis, and forward the same to IPA in the
format prescribed by IPA in this regard.
3.3. Role of designated Non-Major Ports
3.3.1. Appointment of a Nodal Officer
Each designated non-major port will appoint a Nodal Officer for overseeing
registration of beneficiaries and verifying and certifying the eligibility and admissibility of
the claims of the shippers. The Nodal Officer shall also be responsible for disbursing of
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incentives to the shipper. The Nodal Officer shall be allotted unique user ID and
password to login into the PCS system.
3.3.2. Load Certification by designated non-major ports
In case the cargo is being loaded at any of the designated non-major ports, the
Nodal Officer at the designated non-major port shall certify the details of cargo loaded
onto the application. The system will then forward the application to the point of
discharging.
3.3.3. Discharge Certification by designated non-major ports
In case, the cargo is being discharged at any of the designated non-major ports,
the Nodal Officer at the designated non-major port shall certify discharged cargo details
on the application forwarded by the system. After such certification, the application will
be forwarded to the beneficiary to upload relevant documents.
3.3.4. Disbursement of Incentives
In case, as per the Table 2 at Para 2.3.7, designated non-major port is the point
of disbursement, the Nodal Officer at such designated non-major port, on receipt of
application after uploading of relevant documents from the shipper, shall ascertain the
admissibility of the incentive under the scheme. In case any additional information is
required, the Nodal Officer may seek the information from the beneficiary through the
system within one day of the receipt of the final application. No more than two queries
can be made by the Nodal Officer after the first receipt of the final application from the
shipper. The decision for disbursement or denial of incentives has to be taken within five
days of the receipt of the reply to the last query of the Nodal Officer from the shipper.
The Nodal Officer shall authorize disbursement to the bank account of the beneficiary
as registered in the PCS.
3.3.5. Consolidation of claims for reimbursement
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The nodal Officer shall consolidate the claims accruing due to the disbursements
made to the beneficiaries, on a monthly basis, and forward the same to IPA in the
format prescribed by IPA in this regard.
3.4. Role of other Non-Major Ports
3.4.1. Appointment of a Nodal Officer
Each non-designated non-major port will appoint a Nodal Officer for verifying and
certifying the loading or discharge of cargo at the port. The Nodal Officer shall be
allotted unique user ID and password to login into the PCS system.
3.4.2. Load Certification by other non-major ports
In case the cargo is being loaded at any of the non-designated non-major ports,
the Nodal Officer at the loading port shall certify the details of cargo loaded onto the
application. The system will then forward the application to the point of discharging.
3.4.3. Discharge Certification by other non-major ports
In case, the cargo is being discharged at any of the non-designated non-major
ports, the Nodal Officer at the discharging port shall certify discharged cargo details on
the application forwarded by the system. After such certification, the application will be
forwarded to the beneficiary to upload relevant documents.
3.5. Role of IWAI
3.5.1. Appointment of a Nodal Officer
IWAI will appoint a Nodal Officer for overseeing registration of beneficiaries and
verifying and certifying the eligibility and admissibility of the claims of the shippers. The
Nodal Officer will be appointed by IWAI with respect to various terminals and jetties
operated by IWAI. These officers of IWAI shall be allotted unique user ID and password
to login into the PCS system.
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3.5.2. Load Certification by IWAI terminals/jetties
In case the cargo is being loaded at any of the IWAI terminals/jetties, the
appointed a Nodal Officer shall certify the details of cargo loaded at the terminal/jetty
onto the application. The system will then forward the application to the point of
discharging.
3.5.3. Discharge Certification by IWAI terminals/jetties
In case, the cargo is being discharged at any of the IWAI terminals/jetties, the
Nodal Officer at such discharging terminal/jetty shall certify discharged cargo details on
the application forwarded by the system. After such certification, the application will be
forwarded to the beneficiary to upload relevant documents.
3.5.4. Disbursement of Incentives
In case, as per the Table 2 at Para 2.3.7, IWAI terminal/jetty is the point of
disbursement, the Nodal Officer at such IWAI terminal/jetty, on receipt of application
after uploading of relevant documents from the shipper, shall ascertain the admissibility
of the incentive under the scheme. In case any additional information is required, the
Nodal Officer may seek the information from the beneficiary through the system within
one day of the receipt of the final application. No more than two queries can be made by
the Nodal Officer after the first receipt of the final application from the shipper. The
decision for disbursement or denial of incentives has to be taken within five days of the
receipt of the reply to the last query of the Nodal Officer from the shipper. The Nodal
Officer shall authorize disbursement to the bank account of the beneficiary as registered
in the PCS.
3.5.5. Consolidation of claims for reimbursement
The nodal Officer shall consolidate the claims accruing due to the disbursements
made to the beneficiaries on a monthly basis and forward the same to IPA in the format
prescribed by IPA in this regard.
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3.6. Role of IPA
3.6.1. Development and Maintenance of SIMSC module in PCS
IPA will develop and maintain a new web-enabled software module for
implementing the SIMSC scheme and will incorporate it in PCS.
3.6.2. Consolidation of names of Nodal Officers
IPA will coordinate with the State Maritime Boards/concerned Port/Shipping
Departments of the States/Union Territories as well as port authorities for compiling
names of Nodal Officers who shall be given access to PCS. Non-major ports shall
invariably forward names of the Nodal Officers to IPA through the State Maritime
Boards/concerned Port/Shipping Departments of the States/Union Territories where
they are located.
3.6.3. Consolidation of claims for reimbursement
Till such time, the automated system for disbursements to the beneficiaries is not
developed in the PCS or in case there are any problems in the functioning of the
disbursement module, IPA shall collect all the claims received from the Nodal Officers of
the major ports/designated non-major ports and IWAI on a monthly basis and after due
diligence prepare them for submission before the Monitoring Committee in the monthly
meeting of the Committee where a decision on the reimbursement shall be considered.
3.6.4. Coordination among stakeholders
IPA shall provide all the coordination assistance between the Monitoring
Committee and the major Ports, designated as well as non-designated non-major ports
and IWAI regarding reimbursement and reconciliation of claims made by the ports and
IWAI to the beneficiaries as part of the SIMSC scheme.
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3.7. Role of Monitoring Committee
3.7.1. Constitution of the Committee
A Monitoring Committee will be constituted as per Para 2.1.4 of the guidelines in
the Ministry of Shipping. The Committee shall, subsequent to its constitution, lay down
its own procedure for conduct of the meetings. The decisions of the Committee shall be
binding on the ports and IWAI with respect to the implementation of the scheme.
3.7.2. Meetings of the Committee
The Committee shall hold a meeting in the Ministry regularly on a monthly basis.
In the said meetings the Committee will resolve issues arising out of beneficiary
grievances, eligibility of claims, disbursements, reimbursements, functioning of the PCS
module, coordinating issues between IPA, IWAI and ports. The Committee shall also
deliberate on the ways and means for promoting the scheme.
3.7.3. Recommendations for reimbursement of claims
Till such time, the automated system for disbursements to the beneficiaries is not
developed in the PCS or in case there are any problems in the functioning of the
disbursement module, IPA will submit the details of all claims for consideration and
approval of the Committee. The Committee shall scrutinize the claims received from the
major ports, designated non-major ports and IWAI and will make recommendations for
reimbursement to the ports after following due procedure for sanctioning the amount.
3.7.4. Recommendations to Secretary, Ministry of Shipping
In case of issues arising out of interpretation of the Scheme, the same shall be
referred by the Committee to Secretary, Ministry of Shipping for taking a decision on the
issue and whose decision on the issue shall be final.
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3.8. Role of Coastal Shipping Cell
3.8.1. Secretariat of the Monitoring Committee
The Coastal Shipping Cell constituted in the Ministry shall work as the Secretariat of the
Monitoring Committee. It shall prepare the agenda for the meetings of the Committee in
consultation with the Committee.
3.9. Review or Revision of the Scheme
3.9.1. Interpretation of the Scheme
The Secretary (Shipping) shall be the final authority for all issues arising out of
interpretation or scope of the scheme as are referred to him by the Monitoring
Committee for deciding the issue.
3.9.2. Review/Revision of the orders of the Committee
The Secretary (Shipping) shall have the powers of review/revision of the orders
of the Committee. The review/revision powers of the Secretary (Shipping) shall be coterminus
with the original decision making powers of the Committee.
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4. Scheme Implementation Details
4.1. Disbursement of Claims
4.1.1. Registration of shippers
The following steps will be followed in the registration of shippers, namely:-
Step 1. The beneficiaries will in the first instance register on the PCS portal by
providing details like Beneficiary Name, Address, TAN, PAN etc. as well as bank
account details namely the account number, IFSC Code, Branch, Bank etc. The details
of documents required for registration are given at Annexure-I. The beneficiary will then
upload scanned copies of the relevant documents on the portal. The beneficiaries will
also mention their preferences of major ports, designated non-major ports or IWAI
Offices closer to their field of operation where they would like to appear for physical
verification of documents.
Step 2. The PCS application will acknowledge receipt of the application and will
mention date and time slots for appearance of the beneficiary on the premises of the
preferred major ports, designated non-major ports or IWAI Offices.
Step 3. On the pre-fixed date and time, the beneficiary or her authorised
representative will appear before the designated a Nodal Officer and submit selfattested
hard copies of the documents to the officer. The designated Nodal officer will
verify the details and approve the Beneficiary Registration in PCS after which the PCS
will forward login and password details to the shipper.
4.1.2. Registration of Vessel by Shipper
The following steps shall be followed in case of registration of a vessel prior to
the commencement of the voyage when the details of the vessel under consideration
are not already available in the PCS, namely:-
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Step 1. The beneficiary will ensure that the vessel on which she intends to move
the cargo is registered in the PCS system. In case the details of the vessel are not
available in the PCS, the beneficiary will submit the vessel details like IMO Code,
Vessel Name, Call Sign, Flag, GRT, NRT etc. and upload the relevant certificates of the
vessel. Registration of the vessel must be done at least five days prior to movement of
cargo by the vessel. On submission, the system will acknowledge submission of the
details.
Step 2. On receipt of the details from the shipper, the Nodal Officer shall scrutinise
the details of the vessel and grant approval or seek further details within one day of the
receipt of such details. On such approval, the ‘Vessel Registration successful’ message
would be forwarded to the shipper. In case further information is sought by the Nodal
Officer, the beneficiary will have to provide requisite details within one day of the receipt
of the request from the Nodal Officer. The Nodal Officer shall in such case, provide
approval within 1 day after receipt of clarification of the shipper.
4.1.3. Registration of Voyage by the Shipper
The following steps shall be followed by the beneficiary prior to movement of
eligible cargo under the scheme, namely:-
Step 1. For availing the incentive under SIMSC, the beneficiary shall be required
to submit details of cargo movement through an online application form in the PCS at
least three days prior to movement of such cargo. The details to be submitted include (i)
Vessel code, (ii) Voyage Number, (iii) Cargo details such as type of cargo, quantity, etc.
(iv) Point of loading of cargo, (v) Point of discharge of cargo. The system will generate
acknowledgement on submission of the information. Every such application will be
allotted unique transaction number by PCS.
Step 2. The system will then forward the application to the point of loading.
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4.1.4. Load Certification by a Nodal Officer
The following steps shall be followed by the Nodal Officer, at the point of loading,
for certifying the cargo loaded onto the vessel by the beneficiary for movement of
eligible cargo under the scheme, namely:-
Step 1. In case the cargo is being loaded at any of the port or IWAI terminal/jetty,
the designated a Nodal Officer shall certify the details of cargo loaded in the PCS
application.
Step 2. The system will then forward the application to the point of discharging.
4.1.5. Discharge Certification by a Nodal Officer
The following steps shall be followed by the Nodal Officer, at the point of
discharge, for certifying the cargo discharged from the vessel by the shipper, namely:-
Step 1. In case the cargo is being loaded at any of the port or IWAI terminal/jetty,
the designated a Nodal Officer shall certify the details of the discharged cargo onto the
application.
Step 2. After such certification, the application will be forwarded to the beneficiary
to upload relevant documents.
4.1.6. Submission of claim for incentives under the scheme by the Shipper
The following steps shall be followed by the beneficiary to submit her claim for
grant of incentives under the scheme, namely:-
Step 1. After completion of the voyage, the beneficiary will upload the relevant
documents witnessing the movement of cargo to avail incentives under the scheme
within three days of the completion of voyage. The said documents should certify the
total quantity of cargo carried in case of bulk/break cargo transportation, or, total
number of FCL containers or vehicles transported. Scanned copy of Bill of Coastal
Goods (BCG) duly endorsed by customs authorities at the port of loading and the port of
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discharge should be provided wherever the cargo is loaded or discharged through
customs area. In case of loading or discharging through IWAI terminals, scanned copy
of documents certified by IWAI should also be uploaded.
Step 2. After such certification, the application will be forwarded to the Nodal
Officer at the point of disbursement of incentives as per the Table 2 at Para 2.3.7.
4.1.7. Authorization for disbursement of incentives
The following steps shall be followed by the Nodal Officer, at the point of
disbursement, for certifying the cargo eligible for incentives under the scheme, namely:-
Step 1. The Nodal Officer at the point of disbursement shall, on receipt of
application after uploading of relevant documents from the shipper, ascertain the
admissibility of the incentive under the scheme. In case any additional information is
required, the Nodal Officer may seek the information from the beneficiary through the
system within one day of the receipt of the forwarded application. No more than two
queries can be made by the Nodal Officer after the first receipt of the forwarded
application from the shipper.
Step 2. The beneficiary shall submit reply to the queries of the Nodal Officer as
early as possible along with relevant documents through the system.
Step 3. The decision for disbursement or denial of incentives has to be taken
within 5 days of the receipt of the reply of the beneficiary to the last query of the Nodal
Officer.
Step 4. The system will calculate the quantum of incentive and the Nodal Officer
shall authorize disbursement to the bank account of the beneficiary as registered in the
PCS.
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4.2. Manual reimbursement of claims
Till such time, the automated system for disbursements to the beneficiaries is not
developed in the PCS or in case there are any problems in the functioning of the
disbursement module, IPA will submit the details of all claims for consideration and
approval of the Monitoring Committee. The major ports, designated non-major ports and
IWAI will open separate bank accounts for operation of the scheme and all payments
(advance and reimbursement of claims) to the major ports, designated non-major ports
and IWAI will be made in these accounts by the Ministry of Shipping.
4.2.1. Consolidation of claims for reimbursement
The following steps shall be followed by the Nodal Officer, at the point of
disbursement, and IPA for consolidating claims for claiming reimbursements under the
scheme, namely:-
Step 1. After receipt of authorization for disbursement from the Nodal Officer, the
incentive amount will be credited to the bank account of the beneficiary after debiting of
the same from the bank account of the port or IWAI. The bank will carry out the
transaction and send the confirmation message with unique transaction ID to the
shipper. PCS will integrate the same which can be viewed by shipper, Port/IWAI Officer
and designated officers of the Ministry of Shipping.
Step 2. The nodal Officer shall consolidate the claims accruing due to the
disbursements made to the beneficiaries on a monthly basis and forward the same to
IPA in the format prescribed by IPA in this regard.
Step 2. IPA will collect all the claims received from the Nodal Officers of the major
ports, designated non-major ports and IWAI on a monthly basis and after due diligence
prepare them for submission before the Monitoring Committee in the monthly meeting of
the Committee where a decision on the reimbursement shall be considered.
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4.2.2. Recommendations for reimbursement of claims
The following steps shall be followed by IPA, Coastal Shipping Cell and the
Monitoring Committee for reimbursement of claims to the points of disbursement,
namely:-
Step 1. The Coastal Shipping Cell shall prepare a list of claims to be put up for
approval of the Committee in its monthly meetings.
Step 2. The Committee shall meet at least once before 15th of a month for
reimbursement of claims. In its monthly meeting, the Committee shall scrutinize the
claims received from the major ports, designated non-major ports and IWAI and will
make recommendations for reimbursement to the ports after following due procedure for
sanctioning the amount.
Step 3. The DDO, Ministry of Shipping shall prepare the bills based on the
recommendations of the Committee and shall submit the bills to PAO for making
payment to the bank accounts of the ports and IWAI opened for the scheme.
4.3. Automatic reimbursement of claims
When the automated system for disbursements to the beneficiaries is developed
in the PCS the disbursements to the ports/IWAI will be done on a monthly basis without
the intervention of the Monitoring Committee. In this case there will be no need for
opening of separate bank accounts by the ports or IWAI for operationalizing the
scheme.
Step 1. After receipt of authorization for disbursement from the Nodal Officer, the
incentive amount will be credited to the bank account of the beneficiary after debiting of
the same from the bank account of the Ministry of Shipping.
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Step 2. After such debiting, the bank will send a confirmation message with
unique transaction ID to the shipper. PCS will integrate the same which can be viewed
by shipper, Port/IWAI Officer and designated officers of the Ministry of Shipping.
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ANNEXURE-I
Supporting self-attested documents required for registration of beneficiaries on
PCS for availing benefits under SIMSC as proof for the following information to
be provided by shipper, namely:-
(a) Company/Firm Name.
(b) Name of Shipper.
(c) Address with pin code.
(d) Contact details – Phone/Mobile/E-mail ID.
(e) Authorized person with Designation.
(f) Tin and (or) PAN no.
(g) Bank Account Details – Name of Bank, Branch, City, IFSC Code, Bank Account
Number.
(h) GST/Service Tax Registration No.
(i) Sales tax Regn. No.
(j) VAT Regn. No.
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