PSUs to boost fortunes of domestic shipping industry

GN Bureau | October 26, 2015


#PSU   #public sector   #coal   #China   #Japan   #Korea   #Shipping Corporation of India   #SCI   #Great Eastern Shipping   #Mercator Lines  

The government is considering a proposal to make it mandatory for the public sector undertakings to  import of commodities, including oil and coal, to engage the services of Shipping Corporation and other domestic companies. The importing firms may be told to sign a 5 year contract with them for the inbound cargo.

The proposal is similar to the practice being followed in China, Japan and Korea. This is to protect the domestic shipping industry. “An inter-ministerial group is at present considering the proposal that government PSUs, based on some international benchmarks, could give domestic shipliners contracts for cargo imports for five years,” an official source said.

The proposal involves giving 50% or more of the total cargo imports by oil, coal and steel etc PSUs to domestic shipliners, the source added. Five year contracts with PSUs would provide confidence to the lenders to provide assistance to Indian companies

This would shift freight worth billions of dollars to domestic shipliners like Shipping Corporation of India (SCI), Great Eastern Shipping and Mercator Lines, among others.

Such a move, apart from domestic shipliners, would also encourage Indian seafarers and boost the domestic industry, he added. At present, Indian vessels barely account of 12% of EXIM trade.

Comments

 

Other News

HPCL, Tata Steel among National CSR Award 2020 winners

Hindustan Petroleum Corporation, HDFC, Tata Steel and Tech Mahindra are among the winners and the recipients of honourable mentions in the National CSR Awards 2020 announced by the ministry of corporate affairs (MCA) on Thursday. The MCA instituted the annual National Corporate Social Respon

India’s tree lovers get together for a nation-wide tree festival

A good monsoon has left the trees all washed and spruced up. It’s right time to take a good look at them, and also to tell the young generation about their diversity. So, tree lovers across the country have joined hands to celebrate a festival of trees this month. The August Tree Fest

How did a policeman move unarmed and fearlessly for 37 long years in Bihar?

Unbounded: My Experiments with Law, Physics, Policing and Super 30 By Abhayanand Rupa Publications, 344 pages, Rs 595   Abhayanand has

India@75: A timely study of the state of the nation

India after 1947: Reflections & Recollections By Rajmohan Gandhi Aleph, 118 pages, Rs 399 Rajmohan Gandhi was about 11 when India won independence. As the nation celebrates 75 years of freedom, how would he – and others like him – feel?

BMC denies protocol breach in ‘Har Ghar Tiranga’

The BrihanMumbai municipal corporation (BMC) has rebutted a Shiv Sena leader’s allegation of breach of protocol in the implementation of the ‘Har Ghar Tiranga’ campaign. On Friday Rahul Shewale, group leader of Shiv Sena in Lok Sabha, had accused BMC commissioner IS Chahal

Mumbai`s stalled building projects: Is self-redevelopment the real solution?

Land in Mumbai city, which is surrounded by water on three sides, is scarce and has a premium. Property prices in certain areas of financial capital of the country are as much as Rs 1 lakh per sq ft. Yet, 5,800 buildings have been lying in a stalled condition for the last 18 years. Meanwhile

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter