MINISTER OF SHIPPING (SHRI G.K. VASAN)
(a) & (b): The Eleventh Plan document on Shipping & IWT sector envisages the under noted
target for the expansion of Indian Shipping fleet in three scenarios:
Target
(i) Scenario – 1 (Conservative) 10 million GT.
(ii) Scenario – 2 (Modest) 12 million GT.
(iii) Scenario - 3 (Optimistic) 15 million GT.
(c) to (d): Although, in the liberalization era Govt. is not committed to providing soft
loan for acquisition of ships but on account of the current financial meltdown on the request
of Ministry of Shipping and at the behest of Finance Ministry, Indian Banks’ Association had
constituted a Working Group to examine the proposed extension of credit facilities to Shipping
companies in India for purchase of ships. Indian Banks’ Association has recently advised that
they have no role to play in the matter and the Shipping Company should take up the matter
with the individual banks.
(e): The Government has been taking various steps from time to time for the growth of Indian
tonnage. These include:-
The Government of India has formulated the National Maritime Development Programme (NMDP). It
is a comprehensive programme aimed at various issues that need to be addressed to bring
holistic growth in the Indian Shipping Industry. Under the NMDP, Shipping Corporation of India,
only Public Sector Shipping Company is in the process of acquiring a total of 76 new vessels
with a total outlay of Rs.15,000 crores, to be completed in phases till end 2011-12. Of these,
6 ships have already been delivered, orders have been placed for construction of 30 vessels and
remaining 40 vessels are planned for acquisition during the remaining 11th Plan period.
The Government has introduced tonnage tax regime in India since the year 2004 by which the tax
outgo for Indian Shipping companies has been brought in the line with International Standard.
Further, the liberalized policy on ship acquisition has been introduced and acquisition of all
types of ships has been brought under Open General License (OGL). Besides, 100% FDI has been
permitted in ship acquisition and registration formalities of newly acquired ships have been
simplified.
