Union Minister for Road Transport Highways & Shipping & Water Resources, River Development, & Ganga Rejuvenation, Nitin Gadkari assured that he will first assess and then review the impact of cabotage relaxation after one year. He said this at Free Press Journal organised event on 'India's coastline- Engine and wheel of economic growth', held at ITC Grand Central, Parel.
Gadkari said, "This (cabotage relaxation) is a controversial issue. Somewhere Indian shipbuilders don't want relaxation in cabotage law. Keeping wider interest in mind, we have taken the decision to relax cabotage. But in view of the pain Indian ship owners have experienced, I am willing to review this. I know Indian ship owners are not happy about it."
He added that he is not convinced by the argument of the Indian ship owners. "But I am looking at it in a wider interest of the economy, I feel the relaxation in cabotage law is important for the Indian economy."
But he stressed that the government was looking at giving some relaxation. "We want to give some concession to you (Indian ship owners)," stated Gadkari.
In respect of the need to modify tax laws which hurt Indian ship owners, the responsibility lies with the finance ministry and GST Council (as GST on capex is 5 per cent). Indian ship owners have to pay more taxes compared to foreign flag vessels. "These are the problems, but I am not the right person to address these issues.” He said he will talk to the finance ministry. He stated this in presence of Indian ship owners and delegates at the conference.
Gadkari added that the Indian ship industry can attract around Rs 16 lakh crore of investments. "This is the best time for Indian entrepreneurs to enter the field." He pointed out that for the last ten years, private shipyards have faced a lot of problems and this is the case for shipyards around the world. "The crisis is big but we will find a way out."
Photo Caption : ‘Unlocking the potential of coasts: (L to R)
R N Bhaskar, Consulting Editor; Anoop Kumar Agrawal, MD, IPRCL; Anoop Kumar Sharma, CMD, SCI; Sanjay Gupta, SVP (Shipping), Petronet LNG Limited; Anil Devli, CEO, Indian National Shipowners' Association; and Abhishek Karnani, Director, Free Press Journal Group
Photo Caption : Economic Resurgence Through Ports: (L to R)
Gautam Dey, Senior Deputy Traffic Manager, Business Development, Mumbai Port Trust; Sandeep Mehta, President, APSEZ; R N Bhaskar, Consulting Editor; Rajiv Agarwal, CEO and MD, Essar Ports; and Abhishek Karnani, Director, Free Press Journal Group
Photo Caption : Group with Nitin Gadkari
(L to R) Anil Devli, CEO, INSA; R N Bhaskar, Consulting Editor; Anoop Kumar Sharma, CMD, SCI; Nitin Gadkari, Union Minister; Rajiv Agarwal, CEO and MD, Essar Ports; Sandeep Mehta, President, APSEZ; Abhishek Karnani, Director, Free Press Journal Group; and Sanjay Gupta, SVP (Shipping), Petronet LNG Limited.
Source: The Free Press JournalPrevious Next
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