India is likely to invest $18 billion in ports and over $4 billion in its shipbuilding industry in the next five-to-seven years, shipping industry players said at a meethere. Shipping Corporation of India's Chairman and Managing Director, S Hajara, who spoke at the meet, said that shipping should be brought under the infrastructure ambit.
He called for a relaxation in the present cabotage law to allow shipping into the infrastructure sector.
Cabotage is the transport of goods or passengers between two points in the same country. Originally starting with shipping, cabotage now also covers aviation, railways and road transport. Cabotage is described as trade or navigation in coastal waters, or, the exclusive right of a country to operate the air traffic within its territory.
The national tonnage should be encouraged so as to increase exports, he said, adding that there should be support from the Government in making available funds at low interest rates in order to encourage the Indian ship-building industry.
Presently, international players are given loans at lower interest rates in their countries whereas for Indian firms here, the rates are between 8-13 per cent, he said.
There was a need to provide incentives to Indian ship-builders, he added.
He called for a relaxation in the present cabotage law to allow shipping into the infrastructure sector.
Cabotage is the transport of goods or passengers between two points in the same country. Originally starting with shipping, cabotage now also covers aviation, railways and road transport. Cabotage is described as trade or navigation in coastal waters, or, the exclusive right of a country to operate the air traffic within its territory.
The national tonnage should be encouraged so as to increase exports, he said, adding that there should be support from the Government in making available funds at low interest rates in order to encourage the Indian ship-building industry.
Presently, international players are given loans at lower interest rates in their countries whereas for Indian firms here, the rates are between 8-13 per cent, he said.
There was a need to provide incentives to Indian ship-builders, he added.