Login With Google
Shipping firms seek PM’s help
Why is it in the news
- Number of Indian shipping companies have submitted a memorandum to the Prime Minister Narendra Modi, seeking his immediate intervention to scrap a recent notification and a circular which, according to them, would force them to shut down, resulting in heavy job losses.
More in the news
- The circular equates a foreign ship taken on hire, with a ship actually owned under the Indian flag by an Indian company.
- Besides it gives priority in government contracts to those ships, just because they were once built in India.
- Indian companies fear that these changes would take away business from the Indian shipping companies.
- Indian ship owners said the notification and circular indicate that the Ministry favour those who temporarily hire foreign flag assets and remit money out of India, rather than those investing in the Indian economy with a $15- 50 million asset.
- Right of First Refusal (ROF):(1) Indian flag vessels have been enjoying the Right of First Refusal (ROF) which enables them to match the lowest rates quoted by a foreign vessel and take that business.(2) This has aided growth of the Indian fleet since it helps to ensure that no Indian asset remains idle.(3) Indian ship owners said this right has been taken away by the government and given to foreign shipping companies.
Source
The Hindu.