The much awaited Indian Fiscal Budget for the year 2013-2014 has spring no surprises; ship breakers who were waiting for positive news in order to make wise purchase decision were not given any attention. There is no change in policy or import structure for the ship recycling industry. Everything remains as it was.
News has spread of reduction of 5% custom duty on ship imports. But it is clear now that this rule is applicable only to the import of new-building and second-hand ships by Indian ship-owners. There is no change on the import duty applied on the imports of ship for demolition.
Feb 2013 ends with 25 ship beached in Alang, less than Jan 2013. Star Matrix expects March to maintain similar volumes. Late April – May if all else remains same, the industry may see an increased appetite/demand from local ship breakers in India.
more info Shipbuilding Tribune Staff, March 5, 2013; Image: anmm.gov