|
Approved the revised proposal for time-bound implementation of International Transshipment Terminal (ITT) at Kochi port
|
|
Under NELP VI, 55 blocks and area of 355,000 sq kms offered.
Investment of Rs 220 bn expected in the refinery sector in the next few years.
National Maritime Development Programme (NMDP) approved. Work is in progress in 101 projects covering inland waterways, shipping and ports including deepening of channels in Kandla, JNPT and Paradip.
Plan allocation for Department of Shipping increased by 37% to Rs 7.4 bn.
Ship management services brought under the service tax net.
|
|
Custom duty on dredgers (dredging vessels) brought down to Nil
Dredgers also to be exempt form additional custom duty of 4%
Hike in dividend distribution tax from 12.5% to 15% on dividends distributed by the companies
Additional cess of 1% on all taxes to fund secondary education and higher education.
|
Shipping is a global industry and its prospects are closely tied to the level of economic activity in the world. A higher level of industrial activity would generally lead to higher demand for industrial raw materials. This in turn would boost imports and exports. The shipping market is cyclical in nature and freight rates generally tend to be highly volatile. Freight rates and earnings of shipping companies are primarily a function of demand and supply in the markets. While demand drivers are a function of trade growth (growth in world trade) and trade patterns, the supply drivers are a function of new ship building orders as well as scrapping of existing tonnage.