Shipping industry seeks Rs 10 crore bailout
Mumbai, Apr 3: Thanks to global recession, the Indian Shipping industry is in dire consequences. Now the Indian Shipping Industry is seeking a bailout package to the tune of Rs 10,000 crore.
The credit crisis is the biggest issue for the shipping industry as nobody is willing to lend, lamented S Hajara, chairman and managing director of Shipping Corporation of India.
"The bulk carrier business has declined by about 95 per cent, container sector is affected badly and rates are down by about 40 to 60 per cent and the least-affected tanker market also has suffered by about 25 to 30 per cent," he said.
However, inspite of recession Industry did not witness job cutdowns. Reason: There is already actue shortage of manpower.
Speaking at a press conference on Thursday, Apr 2 he elaborated on the credit crisis. "For shipping companies, external commercial borrowing was the main funding source, which has dried up completely." he said.
He
said:
"Indian
banks
are
also
not
interested
in
lending
to
shipping
companies.
We
have
urged
the
government
to
ask
banks
to
provide
credit
to
the
shipping
companies."
OneIndia News