Lok Sabha Question No. 4743 (UNSTARRED), answered on 2016-12-15
Subject: Shipping Industry
Ministry: SHIPPING
Asked by: R. PARTHIPAN

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA

## UNSTARRED QUESTION NO.4743

## TO BE ANSWERED ON 15 TH  DECEMBER, 2016 SHIPPING INDUSTRY

## 4743.   SHRI R. PARTHIPAN:

Will the Minister of SHIPPING be pleased to state:

## पोतप�रवहनमंत्

- (a) whether the Indian shipping industry faces a negative outlook on account of lower freight rates and global slump in the sector as per an international report and if so, the details thereof and the reaction of the Government thereto;
- (b) whether it is a fact that many Indian shipping companies are heavily in debt and if so, the details thereof along with the remedial measures being taken by the Government in this regard;
- (c) whether the Government proposes to enhance the operational efficiency and sector-specific human resource pool in the shipping industry in the country; and
- (d) if so, the details thereof along with the measures taken/being taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISHNAN)

(a)&(b):Yes, Madam.  The shipping industry has seen a down turn in business since 2008  due  to  global  recessionary  trends  and  over  capacity.    The  freight  rates  have been low over a long period of time due to demand and supply mismatch and the tonnage exceeding the demand.   Indian shipping companies are in heavy  debt in Financial Year 2015-16 as reported by Indian National Shipowners Association.

In  order  to  support  the  Indian  shipping  industry,  the  Government  of  India  has exempted Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels for transportation of mix of EXIM, domestic and empty containers between two or more ports in India.  Government has brought in a uniform abatement of service tax for transportation of goods by rail, road and sea vessels.  Indian shipping industry has been provided cargo support through  Right  of  First  Refusal  (RoFR).    Government  has  taken  policy  decision  to  allow shipping enterprises based in India to acquire ships abroad and also flag them in the country of their convenience.  As a step towards promoting 'Ease of Doing Business' methodology for  computation  of  period  of  stay  of  seafarers  in  India  has  been  redefined.    Further, acquisition  of  all  types  of  ships  has  been  brought  under  the  Open  General  Licence.    The procedure  for  the  registration  of  an  Indian  flag  vessels  under  the  Merchant  Shipping  Act, 1958  have  been  simplified  and  the  work  of  issuance  of  General  Trading  license  (GTLs) granted  to  Indian  flag  merchant  ships  by  the  Directorate  General  of  Shipping  has  been decentralized.    In  addition,  a  onetime  GTL  is  now  issued,  which  is  co-terminus  with  the certificate of registry of that ships.

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(c)&(d):The Government of India has taken several measures for skill development of personnel in the fields of logistic, dredging, offshore and  small vessels  and shipbuilding & ship-repair sector etc.  To find good quality students for training of seafarers, opening of new institutes in the North Eastern States and island territories of  Andaman  Nicobar  &  Lakshadweep  has  been  allowed  by  Directorate  General  of Shipping (DGS).  To increase the number of Indian seafarers, DGS has lifted the ban on conduct of post-sea Modular courses and pre-sea General Purpose Rating course respectively  which  would  increase  the  number  of  Indian  seafarers  on  board  ships. The Ministry of Shipping through the Ministry of Skill Development & Entrepreneurship, is undertaking coastal districts skill gap analysis, with emphasis on skill requirements in the Ports & Maritime Sector.

The  Indian  Maritime  University,  Chennai  aims  to  improve  human  resource pool in Merchant  Navy,  ship  design,  ship  building  and  repair,  supply chain management, hydrography, Marine Engineering and Technology, Naval architecture and Ocean Engineering, Maritime Management and Nautical studies etc.    Further, as part  of  the  Central  Government  Skill  Development  initiatives,  Cochin  Shipyard Limited (CSL) in collaboration with Confederation of Indian Industry (CII) Strategic Manufacturing Sector Council is redesigning and improving the syllabus and course content applicable for the various trades covering the entire gamut of ship- building operations.

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