Setting up a vision for the next five years in a bid to increase its cargo business, the largest shipping company of the country, Shipping Corporation of India (SCI) is aiming at doubling its fleet size from the current capacity of 5 million dwt (dead weight tonnage). Besides, the corporation, which is managing 81 ships, plans to add 69 ships and has already placed the order for 29 ships. Bids have already been invited for another 40 ships. The corporation has estimated the capital outlay of $20 billion to execute these plans.
Keeping in mind that about 95% by volume and 70% by value of the country?s international trade is carried on through the maritime transport, CMD of SCI, S Hajra, said the Indian Shipping industry requires a facilitator taxation regime to push the growth of cargo business.
?In the mid-80s, Indian shipping carried more than 40% of EXIM trade, which has dropped to 12% today. The growth of shipping industry is stagnant from the past many years because unfortunately, the shipping industry doesn?t have a level playing field. Foreign countries provide facilitative taxation for their shipping industry. Across the world, the shipping industry pays the rate of tax from 0.5% to 1%, but in India, the industry pays tax at the rate of more than 9%. We need a level playing field to push the growth of cargo business and preference should be given to Indian flags for carrying Indian cargo?, Hajra told FE.
Hajra was in Chandigarh on Friday, to inaugurate an event organised by Doehle Danautic India private Limited, which intends to open a training institute in Chandigarh to prepare the youth for diverse careers in merchant navy. The CMD said that there was an acute shortage of trained seafarers which needs to be looked into and quality training institutes can help in filling the gap.