What Are India’s Policies For Cruise Terminal Development?

The development of cruise terminals in India is part of a broader strategy to enhance the country’s tourism infrastructure and tap into the growing global cruise tourism market. With India’s long coastline, vibrant coastal cities, and rich cultural heritage, there is immense potential for cruise tourism to become a significant contributor to both the tourism and maritime sectors. The Indian government, through various initiatives and policies, has been actively working to improve the country’s port infrastructure, make it more cruise-friendly, and attract international cruise liners.

Key Policies and Regulations for Cruise Terminal Development in India

National Cruise Tourism Policy (2015)

The National Cruise Tourism Policy, launched in 2015, aims to boost cruise tourism in India by developing world-class infrastructure, simplifying regulatory frameworks, and promoting India as an attractive cruise destination. The policy focuses on:

• Infrastructure Development: Upgrading existing ports and constructing dedicated cruise terminals at key coastal locations.
• Promoting Public-Private Partnerships (PPP): Encouraging investment from both public and private sectors to modernize cruise facilities and port infrastructure.
• Simplification of Procedures: Streamlining the process for cruise ship entry, customs, and immigration procedures to make it easier for international cruise liners to operate in India.
• Expansion of Cruise Routes: Promoting India’s coastal cities as key stops in international cruise itineraries.

Port Infrastructure and Modernization Plan

The Indian Ministry of Ports, Shipping and Waterways has rolled out plans to modernize and develop India’s ports, including those used for cruise tourism. This is part of the larger Sagarmala Project, which focuses on enhancing port infrastructure and connectivity across the country.

• Dedicated Cruise Terminals: As part of this modernization, dedicated cruise terminals are being developed in major ports like Mumbai, Cochin, Chennai, and Goa, which are expected to handle both international and domestic cruise traffic.
• Infrastructure Investments: The government has invested in modernizing cargo handling infrastructure, building better passenger facilities, and providing amenities that cater specifically to cruise passengers.

Public-Private Partnerships (PPP)

Recognizing the need for private investment to transform the cruise tourism sector, the Indian government encourages Public-Private Partnerships (PPP) for the development of cruise terminals.

• PPP Model: Under the PPP model, private companies are invited to collaborate with government agencies to develop, operate, and maintain cruise terminals. This model allows for the sharing of costs, risks, and expertise between the public and private sectors.
• For example, Chennai Port Trust has entered into a PPP agreement with private players to develop cruise infrastructure that can cater to both domestic and international cruise passengers.

Tourism Policy Integration

The Ministry of Tourism and Ministry of Ports, Shipping, and Waterways work in tandem to align cruise terminal development with India’s broader tourism policies.

• Cruise Circuit Development: The government has identified key cruise circuits along the coastline, including routes connecting cities like Mumbai, Goa, Chennai, Cochin, and Andaman & Nicobar Islands, to enhance tourism.
• Cruise Tourism Promotion: Efforts are made to promote India’s unique cultural, historical, and natural heritage to international tourists through cruise packages, making India a preferred stop on cruise itineraries.

Tax Incentives and Subsidies

To promote cruise tourism and terminal development, the Indian government offers tax incentives and subsidies to investors in the sector.

• Customs and Duty Waivers: Cruise ships and passengers often enjoy customs exemptions, especially in terms of handling of goods and imports for tourism purposes.
• Tax Breaks for Infrastructure Development: Private companies investing in the development of cruise terminals may receive tax relief or special economic zone (SEZ) benefits, reducing the financial burden and encouraging private sector participation.

Environmental Sustainability Regulations

The Indian government emphasizes the sustainable development of cruise terminals and the protection of coastal ecosystems.

• Green Port Initiatives: Environmental sustainability is a key consideration in cruise terminal development, with a focus on minimizing marine pollution, reducing carbon footprints, and protecting coastal biodiversity.
• Environmental Impact Assessments (EIA): Before the construction of new cruise terminals, thorough Environmental Impact Assessments (EIA) are conducted to evaluate and mitigate the environmental risks associated with such large-scale infrastructure projects.
• MARPOL Compliance: Cruise terminals must ensure that the ships docking at their ports comply with the MARPOL (International Convention for the Prevention of Pollution from Ships) regulations for waste disposal and environmental protection.

Incentives for Cruise Operators

To attract more international cruise operators to India, the government has put in place incentive schemes.

• Subsidized Port Charges: Reduced or waived port fees for the first few years of operation for international cruise ships to encourage their participation.
• Simplified Clearance Processes: Faster immigration and customs clearance procedures at cruise terminals to improve the turnaround time for cruise vessels.

Cruise Terminal Development at Key Ports

Several Indian ports have been identified for cruise terminal development, with significant projects underway or planned:

• Mumbai Port: Known for its global cruise connectivity, Mumbai Port has seen the development of a state-of-the-art cruise terminal with modern amenities like shopping complexes, lounges, and immigration facilities.
• Cochin Port: The Cochin Port has undergone major redevelopment to cater to the growing number of international cruise ships docking in the region, with new infrastructure and passenger services.
• Goa and Chennai: Goa and Chennai have also seen investment in cruise terminal infrastructure to boost the region’s cruise tourism sector.

Example

In 2018, the Mumbai International Cruise Terminal (MICT) was inaugurated as a modern terminal with capacity to handle over 100,000 cruise passengers annually. This terminal offers top-tier amenities such as baggage handling, customs and immigration facilities, and luxury lounges. It has played a significant role in enhancing Mumbai’s reputation as a cruise tourism hub in South Asia, attracting international cruise lines like Royal Caribbean, Costa Cruises, and Norwegian Cruise Line.

Conclusion

India’s policies for cruise terminal development aim to create world-class infrastructure, streamline regulatory processes, and promote sustainable tourism. By leveraging Public-Private Partnerships (PPP) and offering tax incentives, the government is working to position India as a key player in the global cruise tourism market. As more terminals are developed and modernized, the potential for growth in cruise tourism is significant, not only in terms of economic impact but also in enhancing India’s global tourism profile.