Facilitative Measures for Shipping Industry

The Union Minister of Shipping, Shri G.K. Vasan has informed the Lok Sabha today in a written reply to a question that in order to make the shipping industry more attractive and competitive, the Government has initiated several facilitative measures for the Indian shipping sector such as:- (i) Acquisition of all type of ships, through import has been brought under the Open General Licence (OGL). (ii) To attract investment for the growth of this sector, the Government has allowed 100% Foreign Direct Investment (FDI) in the shipping sector. (iii) With a view to provide a level playing field to the Indian shipping sector, the Government has introduced tonnage tax system during 2004-2005 which has effectively brought down the tax liability of the shipping companies to a level comparable to the international level from the previous levels of the corporate tax regime. (iv) Indian Shipping industry has been provided cargo support in the form of right of first refusal and policy of Free On Board (FOB) import is being followed for Government owned/controlled cargoes