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| Edited By: |Source: DNA |Updated: Aug 10, 2017, 07:55 AM IST
Indian government will hold intellectual property rights (IPR) for 14 new ship categories that will operate on Liquefied Natural Gas (LNG) and High Speed Diesel (HSD) and sail on India’s inland waterways. These ships range from car carriers, bulk carriers, roll-on/roll-off, liquid cargo containers to dumb barge flotilla, among others.
The Union government, which has been promoting ‘Make In India’ in all sectors so vigorously, seems generous to the global shipping industry.
The shipping ministry and Inland Waterways Authority of India (IWAI) have decided that they shouldn’t earn royalty despite the huge expenditure incurred in researching and designing these 14 new vessels. It doesn’t want to cash in on the royalty part, either in the domestic or international market, and is letting the opportunity slip by.
In order to further boost India's economy and give a thrust to the struggling Indian ship building business, the government may not levy royalty to Indian shipyards. But it can surely make it compulsory for foreign buyers to either place an order or have a tie-up with the Indian firm so that country can earn foreign exchange.
The government can take a leaf out of Japanese strategies. The Japan International Cooperation Agency, for instance, provides loans with the marginal interest rate, only if the contracts are awarded to any Japanese companies. This ensures overall benefits to their economy.
Once these new vessels start sailing on 86 Indian rivers, ferrying freight and passengers, road traffic will come down considerably. With a shift to more efficient and cost-effective river transportation as compared to road, India will also save on its crude oil bill.
