Expectations 2020 : Keep Marine Fuel Supply to Foreign Going Vessels Out of GST Regime
The Shipping Tribune believes in consistently taking steps towards being the change makers in the Shipping Industry!
We requested Mr. Manoj Tandon, AVP, Adani Bunkering to share his views with our readers on “How was 2019 for business in your sector in relation to the maritime industry? Expectations for 2020. What changes are required and what are the steps that can be taken to improve the performance of the industry?” We are happy to share his views.
2019 was full of transformation for shipping industry so also for bunker industry as well. With International Maritime Organization (IMO) coming up with compliant fuel (0.5% Sulphur) regulation effective from 01st Jan 2020.
Adani Bunkering Pvt Ltd as a major stake holder and market participant in Indian bunker industry has made all preparations to implement to fulfil our customer’s requirement. Despite of ongoing changes in bunker industry across the region, Adani has managed to maintain our strong footprint in Indian bunker market and contributed utmost to flourish the Indian bunker industry.
As a responsible leading physical supplier, we fully understand our customers bunker requirement and ensure availability of ISO 8217 compliance fuel at our physical supply ports. Accordingly In view of the upcoming IMO2020 Sulphur cap regulation – we have started making necessary arrangements well in advance to get ready with LSFO supplies from 01st Jan 2020.
With our visionary management & firm commitment towards the bunker industry -we are quite confident that Adani Bunkering will continue to lead to fuel the maritime sector for years to come and at the same time we are confident that 2020 will start new era of bunker industry and India will lead the show for regional sustainable growth in marine sector with its indigenous production facilities & capacity to ensure availability of compliance fuel.
However, despite India’s potential to emerge as major player in global bunker market which could provide opportunities for employment and for foreign exchange earnings, we are far behind as compared to Singapore & Fujairah where bunker industry plays a vital role in the national economy.
We need serious action on following 2 fronts in order to give Indian bunker market international recognition:
- India is one of very few countries, where bunker fuel supplied to foreign going vessels falls under tax regime which makes fuel prices considerably higher than other international ports. This has so far impacted the business adversely. It's our sincere request to authorities to keep marine fuel supply to foreign going vessels out of GST regime. This will not only give boost to Indian bunker industry but also facilitate employment generation, development of shipping & husbandry service industry and emerge as one of the major foreign exchange generation center.
- Indian bunker industry require infrastructure support and availability of proper supply chain facility to fulfil maritime sector requirement round the clock.
We sincerely feel that our collective efforts and hard work will make us the global industry leader.
About Mr. Manoj Tandon
"After graduating in 1986, Mr. Tandon joined Indian Oil Corporation and served for 18 years in various capacities in Operations, Sales and International Trade. In 2007 he moved to Reliance Industries limited in supply and trading department as Vice President Product Trading. In 2011 joined Indian oil tanking as Vice president and Head of business development. At present as Associate Vice President of Adani Bunkering Pvt. Ltd. for the bunkering business in India.
Widely known in Oil industry in Trading/marketing/pricing circles, attended several courses and also lectured both in India and abroad on Oil Industry/Trading."