Ship recycling industry rejoice after import duty cut
The ship breaking and recycling industry in Gujarat is rejoicing following the Centre's decision to reduce the import duty on ships imported for breaking by from 5% to 2.5% in the recently announced Union Budget for 2014 to 2015. The industry expects rise in number of ships imported to India for recycling.
Industry sources said that high import duty and a weak rupee against dollar had diverted business to neighbouring countries like Pakistan and Bangladesh in the last two years. However, ship breakers now believe that the reduction in customs duty will bring business back to India.
Mr Ramesh Mendapara VP of Ship Recycling Industries Association of India said that "We had been demanding reduction in import duty for quite a long time.
Finally, the government has heard our voices and reduced the duty. This will surely make our industry strong and help us compete with other countries. Mr Mendapara said that "We wanted balanced duty on both scrap and ship import. Due to high import duty, selling of domestic scrap had decreased and direct import of scrap has gone up and consequently, ship import had declined in the last two years."
An industry source at Sosiya Alang ship recycling yard in Bhavnagar said that "Depreciation of rupee against US dollar had a negative impact on ship breaking industry. The rupee is stable now and the government's decision will boost import of ships for recycling." Source - Business Standard
The ship breaking and recycling industry in Gujarat is rejoicing following the Centre's decision to reduce the import duty on ships imported for breaking by from 5% to 2.5% in the recently announced Union Budget for 2014 to 2015. The industry expects rise in number of ships imported to India for recycling.
Industry sources said that high import duty and a weak rupee against dollar had diverted business to neighbouring countries like Pakistan and Bangladesh in the last two years. However, ship breakers now believe that the reduction in customs duty will bring business back to India.
Mr Ramesh Mendapara VP of Ship Recycling Industries Association of India said that "We had been demanding reduction in import duty for quite a long time.
Finally, the government has heard our voices and reduced the duty. This will surely make our industry strong and help us compete with other countries. Mr Mendapara said that "We wanted balanced duty on both scrap and ship import. Due to high import duty, selling of domestic scrap had decreased and direct import of scrap has gone up and consequently, ship import had declined in the last two years."
An industry source at Sosiya Alang ship recycling yard in Bhavnagar said that "Depreciation of rupee against US dollar had a negative impact on ship breaking industry. The rupee is stable now and the government's decision will boost import of ships for recycling." Source - Business Standard