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The Union Government is to shortly take a view on two important demands, one raised by a section in the country's port sector and the other by the shipping sector.
The demand of the port sector relates to relaxation of the Cabotage while that of the shipping sector to providing cargo support to the national flag carriers.
Cargo support
“A note on the Cabotage will be placed soon before the Cabinet for consideration,” Mr K. Mohandas, Secretary, Ministry of Shipping, told Business Line here. “As for providing cargo support to national flag, we have before us the inputs provided by shipowners.”
Asked if the Government was considering relaxation of the Cabotage, Mr Mohandas replied, “we're examining the Law Ministry and Attorney General's interpretation suggesting that the coastal leg of the movement of Exim containers should not be treated as coastal trade and, therefore, should not be restricted to the Indian flag only. But then the Cabinet has to take a decision on it”.
He felt that such a change in dispensation would benefit not only Vallarpadam but also help the other container handling ports emerge as transhipment hubs.
Referring to the demand for cargo support to Indian bottoms, he said in addition to shipowners, the major consumers such as petroleum, power and steel companies importing huge quantities of crude and coal, respectively, would be asked to present their views in this regard.
The present slump in the world shipping has hit hard the national shipping. “Perhaps for the first time in 20 years, the Shipping Corporation of India is in red,” he said.
Kanika sands row
He indicated that the Union Government would be with Kolkata Port Trust (KoPT) in its bid to get legal redressal of the Kanika Sands dispute at the apex court.
“Orissa High Court has set aside the Shipping Ministry's decision to extend the limit of Kolkata port forcing KoPT to file a special leave petition with the Supreme Court and our ministry will be a party to it,” he said, adding that, “there are certain issues in the dispute which deserve deeper judicial consideration. After all, we, in the Union Government, take decisions after taking into account overall national interest.”
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