July 07, 2026 09:21 am (IST)
Follow us:
Govt takes policy for growth of Indian controlled tonnage
New Delhi, July 27 (IBNS): The Indian government on Sunday said it has taken a policy decision to allow shipping enterprises based in India to acquire ships abroad and also flag them in the country of their convenience.
This decision is aimed at encouraging Indian shipping companies to have their registered offices in India itself while allowing them to acquire further tonnage without forming subsidiaries out of India to own foreign flag vessels.
These companies register their ships abroad without actually opening their registered office or a subsidiary company there.
This will enable Indian companies to have access to cheaper sources of funds abroad to acquire additional tonnage while not having to set up multiple enterprises abroad to acquire and maintain such tonnage.
The policy however prescribes that the additional tonnage that can be acquired and flagged abroad by these India-based enterprises is limited to the tonnage of the Indian flagged ships already registered by them in India.
The additional tonnage that can be acquired abroad is also subject to employment of certain proportion of Indian crew thereby creating additional employment opportunities for Indian seafarers.
The government exchequer is expected to gain from this policy decision through tax on the revenues earned from operations of this additional tonnage rather than through dividends from such subsidiaries based abroad.
The Indian flagged tonnage (ships) which has stagnated to around 10.50 MGT for quite some time is also expected to get a boost by the decision.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Telangana horror: Woman injects toilet cleaner into husband via cannula in chilling murder plot
Mon, Jul 06 2026
Satluj controversy: Lawyer seeks FIR against Diljit Dosanjh over alleged 'pro-terror narrative' portrayal
Mon, Jul 06 2026
Baruipur horror: CCTV footage helps identify accused as police arrest three; Bengal remains on edge
Mon, Jul 06 2026
India's tribute to Khamenei draws emotional response from Iran
Mon, Jul 06 2026
Baruipur horror: Main accused in alleged rape and murder of minor girl arrested; senior cops dissatisfied with handling of the case
Mon, Jul 06 2026
Veteran journalist Amalendu Kundu passes away; chronicled Sikkim's strategic story for over five decades
Mon, Jul 06 2026