Thursday, January 31, 2013

Can PSU's save Indian shipping sector? I don't think so


Centre has urged the public sector units to use Indian shipping lines for transportation of their cargo. The move is aimed at increasing the share of Indian tonnage in the overall export-import trade. Currently, only around 8% of total EXIM trade is done by Indian flagged vessels.


First things first - numerous foreign flagged vessels are owned by Indians. Why? Why someone will put Panama’s, Liberia’s flag in an Indian ship? Government has to understand the root cause of problem in shipping industry instead of urging (ordering?) PSU’s to shell out extra money. Ministry has to sit with tax and customs officials to study the structural defects, instead of making Coal India (CIL), Steel Authority of India (SAIL), Indian Oil (IOC), NTPC etc... victims of a flawed policy.

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