Availability of containers not affected due to Red Sea crisis: Patel

The Red Sea crisis at present has not affected the availability of containers for traders and the government is closely monitoring the situation, Parliament was informed on Friday.

Minister of State for Commerce and Industry Anupriya Patel said that exports from India are continuing as the sailings of containers carrying ships from India have been diverted via the Cape of Good Hope route, encircling Africa.

"The crisis in Red Sea, at present, has also not much affected the availability of containers in most of the ports," she said in a written reply to the Rajya Sabha.

The crisis in the Red Sea shipping route began after Yemen-based Houthi rebels launched frequent attacks on commercial shipping vessels plying through the route in November as a fallout of the Israeli-Palestinian war, which started in early October 2023.

Due to the crisis, the movement of goods from the Red Sea, the world's busiest shipping route, has disrupted the global supply chains as vessels have to take long routes for exports and imports.

The minister said that Indian Navy has substantially enhanced maritime surveillance efforts in central/north Arabian Sea and augmented force levels.

"Aerial surveillance by long-range maritime patrol aircraft and RPAs (Remotely piloted aircraft system) has been enhanced to have a complete maritime domain awareness," she said.

She added that towards effective surveillance of EEZ (exclusive economic zone), Indian Navy is operating in close coordination with Coast Guard.

"The overall situation is being closely monitored by the government," Patel said.

In another reply, she said that some increase in freight cost has been reported by the industry.

Replying to a separate question, Patel said the surge in imports of copper into India in the last two years is attributed to increased demand for copper due to rapid economic growth, infrastructure development, and the ongoing transition to green energy such as renewable energy and electric vehicles.

The increased demand also reflects a post-pandemic recovery in the economy.

"The extent to which Indian industry and the ease of doing business have been impacted by copper imports in the recent past is multifaceted and influenced by various factors including industry dynamics, regulatory environment, government policies, supply chain resilience," she said.

She informed that the government has taken various steps to boost domestic availability of copper mineral and reduce its imports.

Under the Mines and Minerals (Development and Regulation) Amendment Act, 2023, the exploration of critical minerals including copper is encouraged by the government so as to bring new technology, expertise and investment in the mining sector.

"The matter of closure of Sterlite Copper plant at Tuticorin is presently sub-judice in Hon'ble Supreme Court," she said.

Replying to another question, the minister said that the closure of the Tuticorin smelter plant of Vedanta in Tamil Nadu has affected the domestic production of refined copper.

"The spurt in imports in last two years is due to increased demand in copper refining reflecting a post-pandemic recovery, especially the growth in user sectors such as infrastructure, construction, telecom, electrical, renewable energy and electric vehicles," she said.

"Due to environmental concerns and public safety risks, the Tamil Nadu Government ordered the plant's closure in May 2018. The matter is presently sub-judice in Hon'ble Supreme Court," she added.