Shipping firms have reportedly been pushing the government to allow a tax free bond issue similar to the INR 5,000 crore infrastructure bond earmarked for the ports sector.
It said that the companies want the government to permit State Bank of India or somebody else to come out with such a foreign currency bond,in order to boost tonnage.
According to industry sources,close to half of India's tonnage is over 20 years old and would have to be phased out over the next 5 years.
Most Indian shipping firms are considered highly leveraged with huge debts and lacking the resources to raise funds on their own.
Source:
http://www.steelguru.com/indian_news/India_shipping_firms_press_government_for_bond_issue/296403.html
