The vision is to reduce the outgoing freight to foreign firms by atleast one-third by 2047. In this regard, the Central government has announced plans to establish a new shipping company that will gradually expand its fleet by at least 1,000 ships in the next decade.
As Indian exports and imports continue to grow a major chunk of revenues going out to the foreign shipping lines can be retained in-house. India is drastically expanding its infrastructure to become the factory to the world.
The new shipping company is yet to be named but will be owned jointly by state-run companies operational in sectors including oil, gas and fertiliser industries. These sectors will also provide the shipping line with business, along with the state-run Shipping Corporation of India and foreign companies.
As per industry estimates, in the financial year 2019-20, Indian companies paid freight costs of $85 billion, of which $75 billion was paid for employing foreign vessels for trade movement. The new firm will be headquartered in GIFT IFSC, in Gujarat and will draw seed capital from a maritime development fund of roughly Rs.30,000Cr.
