Urban Mirror

Urban Mirror Correspondent

New Delhi, June 29: The Lok Gathbandhan Party (LGP) today criticised the NDA government for relaxing restrictions on the movement of export-import cargo by foreign ships between and among Indian ports along the country’s coastlines. The LGP said the decision of the NDA government, aimed at helping a crony capitalist of the BJP, would have disastrous consequences for the domestic shipping industry.

The spokesman of the LGP said here on Friday that a major change in the country’s shipping policy is aimed at helping a group of international and domestic shipping companies. The spokesman said it may also damage the country’s premier Jawahar Nehru Port Trust (JNPT). The notification amending the rules was issued on May 21, 2018 which according to media report has relaxed restrictions on the movement of foreign ships engaged in transporting containers laden with goods for export and import as well empty containers along the country’s coastline. The spokesman said the decision is likely to result in major gains for companies in the Adani group which owns and operates several private ports in India, which import coal and agricultural products and which have significant interests up and down the logistics value-chain.

Drawing the attention of the people over the questionable move of the NDA government, the spokesman said according to media information shipping goods within India’s domestic jurisdiction, that is, from one Indian port to another, is known as “cabotage.” It is governed in India by the Merchant Shipping Act (MSA) of 1958. Under Section 407 of the Act, only ships registered (or “flagged,” in shipping parlance) in India, which follow Indian laws and pay taxes to the Indian government are permitted to engage in cabotage trades. These cabotage rules have been relaxed to help a group of companies at the cost of public sector companies.   

The LGP quoting media report said that Adani Ports is India’s largest operator of ports in the private sector. It controls the activities of nine ports located along the country’s western and eastern coastlines – Mundra, Tuna-Tekra, Dahej, Hazira (all in Gujarat), Mormugao (Goa), Ennore, Kattupalli (both in Tamil Nadu), Vishakhapatnam (Andhra Pradesh) and Dhamra (Odisha). The list is set to increase with the inclusion of Vizhinjam port in Kerala which is under construction. The Adani group has been awarded the contract to build the Bhavanapadu port in Andhra Pradesh and the group has proposed to build the Kulpi port in West Bengal as well. The spokesman said during the UPA regime also efforts were made for such relaxations but they were scuttled. (Credit: Newsclick for content and images)