The Hindu Business Line : `LNG imports must be on f.o.b. basis'

THE Indian National Shipowners Association (INSA), which held its 25th annual general meeting here on Saturday, has appealed to the Government to ensure that Indian import of LNG be made on Free On Board (f.o.b.) basis to encourage Indian flagged vessel in transportation of this commodity.

Mr Yudhisthir Khatau, who took over as INSA President, pointed out that such a practice was followed by major importing nations such as Japan, Spain and China. Such a practice is essential for a nation to achieve energy security, he said.

INSA has also taken exceptions to the Government's decision to allow IOC to by-pass Transchart, the chartering arm of the Ministry of Shipping, for its crude imports.

"INSA has been reiterating all along that profitability of Indian shipping companies not only depends on a supportive fiscal policy, but also a strong cargo support policy. We have appealed to the Government to continue with the past practice of chartering ships through Transchart, which had greatly helped in development of Indian shipping by offering cargo support," Mr Khatau told presspersons.

With Indian ships continuing to reel under the problem of acute shortage of qualified officers on board vessels, INSA has proposed, as a temporary measure, that the Directorate General of Shipping permit recruitment of Indians holding CoCs (Certificate of Competency) of certain foreign countries.

"The importance of quality manning of ships reflects in the Port State Control (PSC) record of the nation. Last fiscal was again not encouraging for Indian shipping on the PSC front, with 10 ships getting detained till date in 2005," Mr Khatau said.

Mr Khatau has taken over as INSA President from Mr P.K. Srivastava, Chairman and Managing Director of Shipping Corporation of India.

Mr S. Hajara, SCI Director, is the new vice-president of the association.

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