Navratna public company Shipping Corporation of India plans to double capacity to 10 million DWT by 2015 at a cost of Rs 20,000 crore. It currently has 74 vessels aggregating to 5.1 million deadweight tonnage (DWT). It The company has already placed orders for 27 vessels of 1.6 million DWT worth USD 1.3 billion marked for delivery by 2012.
The company has invited expressions of interest for a minority 10-15% stake in Indian shipyard. The shipbuilding industry has received a subsidy of Rs 542 crore in the revised estimate of the budget. Exemption of import duty on import of spares and capital goods has also been extended to shipowners. In an interview with CNBC-TV18, S Hajra, CMD, Shipping Corporation of India gave his perspective on the budget and also spoke on the unmet demands of the shipping industry in the budget. Q: Some repair equipment has now become cheaper for you. How would this impact Shipping Corporation itself, some marginal trimming of cost and improvement in margins? A: No, as far as SCI is concerned it will have absolutely no impact but for smaller shipping companies particularly those who are engaged in coastal shipping, for them this will be a relief. But for Shipping Corporation, Great Eastern and other shipping companies who earn a substantial amount of foreign exchange in any case as freight, we could have, in any case, adjusted our import of spare parts against that, under the Served from India scheme. So for us, this doesnDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
