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Timeline for mandatory use of Indian flag on SCI vessels may be shortened

Tax implication of bearing the flag has been a sticking point for suitors

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The number of vessels registered in Panama as of 2020 were 7,886, with 16 per cent of the world’s total dead-weight tonnage

Nikunj OhriIndivjal Dhasmana New Delhi
The Centre may reduce the timeline for the use of the Indian flag on vessels of the Shipping Corporation of India (SCI) to less than five years. The move is being considered as the government counts down to finalising the privatisation of the public sector undertaking (PSU).

The mandatory use of the Indian flag on SCI’s ships has been a bone of contention with prospective buyers, on account of the costs it will entail in terms of taxation and vessel registration, an official said. 

SCI has a fleet size of 59.

The only benefit that SCI’s buyer can get through the use of

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First Published: Oct 16 2021 | 6:02 AM IST

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