New Delhi, Oct 8 (IANS): Customs and central excise duty exemption on bunker fuels for Indian flagged ships carrying a mix of export import (EXIM), empty and domestic containers has been extended, an official statement said on Wednesday.

The customs and central excise duty cut aligns with shipping ministry's aim to promote the shift of cargo movement from roads to coastal waters - a shift helps in realizing higher fuel efficiency compared to the movement of cargo on the roads, the shipping ministry said in the statement.

It also helps in decongesting the roads and reducing the carbon footprint, it added.

Prior to the extension, the exemption was offered to Indian vessels transporting EXIM and empty containers between two Indian ports till November 11, 2014, the statement said.

The notification for the extended exemption was issued on September 17.

The statement said that the tax incentive for transportation along the coast will go a long way in enhancing Indian tonnage as well as in promoting the development of transportation hubs in India and resolves the issue hindering the growth of coastal shipping.