International shipping registry planned

In the wake of declining Indian tonnage, the government is exploring the option of having an international shipping registry, which will offer more operational freedom and exemption from a slew of taxes.

If approved, this will be the second shipping registry apart from the national shipping registry.

Mukesh Ambani-controlled Reliance Industries is also planning to set up a shipping registry in the Navi Mumbai Special Economic Zone (NMSEZ) to woo domestic and international shipping firms.

The national shipping registry, managed by the Mercantile Marine Department (MMD), is a document of Indian ships plying under the Indian flag, which enjoys cargo preference and other concessions.

"We are exploring the possibility of having an international register or an open register to attract more ships. This will spur foreign direct investment (FDI) in the sector," a government official said.

He said the government was taking feedback from the shipping industry on the proposal and the concept was still at a nascent stage.

In order to implement its proposal of a second shipping registry, the government will have to make amendments in the existing Merchant Shipping Act. Countries such as Denmark, Norway, France and UK have two registries.

"The idea of having a second registry doesn't go well with the shipping sector because the domestic registry is already burdened with 12 taxes. Government opened up FDI in shipping six years ago. However, no overseas company has till date invested in the sector," a shipowner said.