NMDP aimed at holistic growth in Shipping Industry

Lok Sabha


  The Government has been taking various steps from time to time for the growth of Indian tonnage. 

  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.

The Eleventh Plan document on Shipping & Inland Water Transport (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.

The Government though is not committed to providing soft loan for acquisition of ships in the liberalization era, 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, however, 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.  

This information was given by Minister of Shipping, Shri G. K. Vasan in written reply to a question in Lok Sabha today.