Despite the global economic gloom, the shipping corporation of India (SCI),which manages 81 ships plants to add 69 ships to its fleet over five years at an estimated cost of $ 20 billion.
SCI, the largest shipping company In the country, plans to double its fleet strength from five million DWT now to 10 million DWT.It has already placed orders for 29 ships and invited bids for another40 vessels.
Mr.S.Hajara, chairman and managing director of SCI, who was here recently, stressed that the shipping industry required a facilitative taxation regime to propel the growth of cargo business.
About 95 percent by volume and 70 percent by value of the country’s global trade was carried on through the maritime sector, Mr.Hajara pointed out.
“In the mid -80s, Indian shipping carried more than 40 percent of export-import cargo, which has dropped to 12 percent now” he said.
The growth of the shipping industry is stagnant for the last so many years because it was not being provided a level-playing field. Foreign countries provided facilitative taxation for their shipping industry, he emphasised.
“Across the world, the shipping industry pays the rate o f tax from 0.5 percent to 1 percent, but in India, the industry pays tax at the rate of more than o percent. 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,” he under scored.
SCI, the largest shipping company In the country, plans to double its fleet strength from five million DWT now to 10 million DWT.It has already placed orders for 29 ships and invited bids for another40 vessels.
Mr.S.Hajara, chairman and managing director of SCI, who was here recently, stressed that the shipping industry required a facilitative taxation regime to propel the growth of cargo business.
About 95 percent by volume and 70 percent by value of the country’s global trade was carried on through the maritime sector, Mr.Hajara pointed out.
“In the mid -80s, Indian shipping carried more than 40 percent of export-import cargo, which has dropped to 12 percent now” he said.
The growth of the shipping industry is stagnant for the last so many years because it was not being provided a level-playing field. Foreign countries provided facilitative taxation for their shipping industry, he emphasised.
“Across the world, the shipping industry pays the rate o f tax from 0.5 percent to 1 percent, but in India, the industry pays tax at the rate of more than o percent. 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,” he under scored.
