rt facilities for bringing in larger ships. Consequently, larger movements of cargo and economies of freight should be derived," said, A R Ramakrishnan, CEO of Essar Shipping.
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| This exemption comes at a time when more international channel deepening companies entering into India even as domestic companies are also getting into this sector.
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| A giant PSU consortium led by Shipping Corporation of India (SCI) is floating a joint venture company for dredging with various port trusts of the country. Engineering and construction major Larsen & Toubro (L&T) has made a foray into the dredging business by acquiring 61 per cent stake in the Indian entity, International Seaport Dredging , promoted by Belgian dredging multinational, Dredging International NV.
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| However, small dredging companies are concerned that the international majors will eat into the market as there is no customs duty while big players are poised to hire more dredgers.
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| K R Kishore, chairman and managing director of state-run Dredging Corporation of India (DCI) says the cost of acquiring dredger will come down with the latest exemption.
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| "Of course, this help international companies as well. But dredging the need of the hour and ultimately the country will benefit," he says.
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| DCI, which has 12 own dredger and 4 on hire, is in the process of finalising acquisition agenda to meet the dredging requirements of the country. However, ports are concerned about the infrastructure status accorded by the finance ministry.
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| "It is not clear that infrastructure status will be available for the ongoing projects. However, the customs duty exemption should bring the dredging cost down," port officials add. |
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