Foreign direct investment (FDI), which so far eluded Indian shipping industry, has finally made an entry with the launch of Nord Scan Line (India), on January 18, 2006.The joint venture between Nord Scan Line KS, Denmark (51%) and Sai Freight (49%) has been set up for operating shipping services on the Indian coast. Initially the company has deployed a heavy lift vessel.
Shipping Policy
- Most of the categories of ships viz. crude tanker, Product Tanker, Bulk Carriers etc. have been brought under the Open General Licence (OGL) to facilitate acquisition at competitive price;
- Automatic approval is also available for acquisition by ship-owning Companies for the categories which are not covered under O.G.L i.e. Barges, Tugs and Boats etc.;
- Acquisition through Bare Boat Charter-Cum –Demise method;
- Shipping Companies have been allowed to retain sale proceeds of their ships abroad and utilise them for fresh acquisition;
- The Shipping Companies are now permitted to get their ships repaired in any shipyard without seeking prior approval from the Government;
- Quarterly Block Allocation scheme for repair of ships has been dispensed with;
- Reserve Bank of India releases foreign exchange for ship repair/dry docking and spares for imported capital goods, without any value limit;
- Freedom to Time Charter out ships by Indian Shipping Companies;
- 100 percent investment by NRIs in shipping with full repatriation benefits;
- Automatic approval for foreign direct investment upto 74% in shipping;
- Facilities at par with 100 per cent EOUs for ship repairs industry;
- Freight charges on account of movement of fertilizers and petroleum products are allowed to be paid in convertible currency;
- No permission is required for raising foreign exchange loans from abroad by mortgaging the vessels with the lender;
- Action has since been initiated to formulate a National Shipping Policy to provide fiscal, financial, administrative and legislative measures for growth and development of shipping in India