Plea for Tax Concession

Plea for Tax Concession Hansavivek SCINDIA STEAM has placed orders for two bulk carriers, one of 53,000 dwt and the other of 75,000 dwt, with West German and the UK shipyards respectively. The former is to be delivered in May 1974 and the latter in 1976. The two ships of 16,200 dwt, already ordered from West Germany, are scheduled to be delivered in May and September next. Of the eight ships of 13,600 dwt, for which order had been placed in 1968 with a shipyard in CDR, six have already been delivered and the remaining two are expected to be completed by the third quarter of 1972. The company had applied for government approval for purchase of shares belonging to Dharma Teja in jayanti Shipping, but that company has since been nationalised. Scindia has at present 12 steamers of 3.79 lakh GRT, as compared to 255 steamers of 24.92 lakh GRT owned by all the Indian shipping companies. Krishnaraj M D Thackersey, chairman, feels that the Indian shipping companies need to place orders for at least 5 lakh gross tons more than the orders so far placed by them if they have to fulfil the target of carrying 40 per cent of the country's overseas trade as envisaged in the Fourth Plan. lie points out the reluctance of the world's shipyards to accept Indian orders owing to overbooking and inability to extend credit. But he adds that, even if the shipping companies succeed in placing orders now, none of the ships can be delivered before May 1974. The Finance Minister's hope, that the advance notice of the abolition of development rebate from May 1974 would accelerate the pace of investment, cannot be realised in the shipping industry. Thackersey ob serves that practically all the maritime nations give tax concessions in one, or more, forms to develop their shipping. The government, he feels, should do something to enable Indian shipping to face international competition.