The Prime Minister, Dr Manmohan Singh, on Saturday asked domestic shipping companies to augment their fleet for providing adequate ‘Indian capacity’ for oil imports.

In his address at the golden jubilee function of the Shipping Corporation of India here on Saturday, Dr Singh said: “In the context of India’s growing trade and increasing energy demand and dependence on global energy markets, there is an urgent need to further develop our national fleet.”

Currently, 85 per cent of the oil imported in to the country is through foreign vessels. Indian vessels with 71 tankers of 3.62 million gross registered tonnage (GRT) and 56 petroleum product carriers of 2.05 million GRT, carry 15 per cent of the oil cargo.

This is despite India’s overall shipping tonnage being over 10 million GRT.

Stressing the need to ensure “adequate Indian control” over the maritime sector for reasons of maritime security, he said that the growth in the sector including shipping, ports, ship-building and repair is vital for the nation’s growth.

In fact, the Indian control over the country’s sea-borne trade has been weakening year after year. The overall share of Indian flag vessels in the country’s international cargo is down to a pitiable 8.3 per cent now from more than 25 per cent 10 years ago. In the container cargo, India’s share is 3.6 per cent.

In response to Dr Singh’s appeal, a leading ship-owner said that the Government’s policies do not support domestic shipping. The state-owned oil companies charter foreign vessels for import of crude, while domestic ship-owners are forced to seek foreign oil cargo.

Some shipping lines tend to interpreted Dr Singh’s call for ‘Indian control’ as being opposed to opening up coastal shipping to foreign operators. The Government is expected to take decision on the Vallarpdam container terminal’s request for relaxation of cabotage regulations to allow foreign shipping lines to operate coastal services to the terminal. Indian shipping lines have been opposing lifting the cabotage restrictions.

Piracy

Expressing concern over the growing incidents of piracy close to the country’s shores, the Prime Minister said instances of pirate attacks in the Arabian sea and more recently in the Indian Ocean much beyond the piracy infested areas of Gulf of Aden, pose a serious threat to us by putting at risk a large number of Indian seafarers and ships as also the sea-borne trade.

He said that the country’s Navy, Coastguard and shipping companies are putting up a concerted effort in close co-ordination with other international agencies to deal with this menace.

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