Indian shipping companies await implementation of cargo support scheme
10 Dec 2011
Mumbai: Recession-hit Indian shipping companies may get much needed relief should a cargo support scheme suggested by a government-appointed working group be implemented. As per the recommendation, all exporters and importers with a pre-specified annual turnover will have to compulsorily use Indian ships for carrying a third of their goods.
According to government sources, the working group has recommended that export incentives of all shippers be directly linked to meeting the shipping criteria.
The group says that shippers may be provided a lead time of atleast 3-6 six months before being asked to implement the cargo support scheme.
With Indian ships carrying less than nine per cent of the country's cargo, the scheme is expected to boost not just the cargo share of national carriers, but also help expand Indian tonnage.
Currently, 1,119 ships, of 11 million gross registered tonnage (GRT), carry the Indian flag.
Indian ships command a mere 3.4 per cent share for containerised shipping. For oil and petroleum products the share has come down to 15 per cent from more than 50 per cent a decade ago.
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