{"id":75673,"date":"2025-11-30T10:31:15","date_gmt":"2025-11-30T05:01:15","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=75673"},"modified":"2025-12-01T13:58:41","modified_gmt":"2025-12-01T08:28:41","slug":"shipping-corporation-of-india","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/shipping-corporation-of-india\/","title":{"rendered":"Revival of the Shipping Corporation of India &#8211; Explained"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Shipping Corporation of India Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Government of India has announced a major revival plan for the <\/span><b>Shipping Corporation of India<\/b><span style=\"font-weight: 400;\"> (SCI), including the purchase of over 200 merchant ships through joint ventures with other PSUs.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Evolution of the Shipping Corporation of India<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For decades, the SCI stood as one of the world\u2019s leading national carriers, operating <\/span><b>over 120 ships<\/b><span style=\"font-weight: 400;\"> across categories such as oil tankers, gas carriers, chemical tankers, passenger vessels, liners and offshore vessels.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SCI symbolised India\u2019s maritime pride, combining national service with commercial capability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SCI also led technological upgrades, introducing the latest German marine engines, operating India\u2019s first LNG carrier, and building vessels in Indian shipyards despite delays and cost overruns.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its diverse fleet and national obligations made it central to India\u2019s maritime economy.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Role in National Interest and Strategic Missions<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Energy Security:<\/b><span style=\"font-weight: 400;\"> Historically, SCI had first rights on transporting India\u2019s oil, making tankers the backbone of its fleet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>National Service:<\/b><span style=\"font-weight: 400;\"> It transported civilian workers at concessional rates to the Andaman Islands and supported defence logistics during crises.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risk Operations:<\/b><span style=\"font-weight: 400;\"> During the Iran-Iraq war, SCI tankers bore the word <\/span><i><span style=\"font-weight: 400;\">INDIA<\/span><\/i><span style=\"font-weight: 400;\"> in large white letters to signal non-hostility and ensure safe passage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Skill Development:<\/b><span style=\"font-weight: 400;\"> SCI\u2019s Mumbai-based training institute in Powai trained thousands of marine professionals who went on to earn significant foreign exchange for India.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Decline During Liberalisation<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 1990s ushered in the era of <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/new-economic-policy-1991\/\" target=\"_blank\"><span style=\"font-weight: 400;\">Liberalisation-Privatisation-Globalisation<\/span><\/a><span style=\"font-weight: 400;\"> (LPG), and Indian maritime policy moved in line with global trade norms.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under WTO rules, India had to dilute preferential treatment for its national carrier in EXIM cargo.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Key consequences included:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Loss of \u201cright of refusal\u201d over oil cargo, a major revenue source for SCI.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Neglect in fleet modernisation, only two ships were ordered in 10 years before the recent purchases.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Shrinking tanker capacity and rising average fleet age (18 years, nearing scrapping levels).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Collapse of Indian presence in container shipping after cabotage relaxation.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s share of EXIM cargo carried by Indian vessels fell from 27% earlier to just 7%, illustrating a precipitous decline.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>COVID-19 and the Reassessment of Strategic Shipping Capacity<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The pandemic became a turning point. Global freight rates skyrocketed, up to 10 times pre-pandemic levels, as port delays and geopolitical bottlenecks grew.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Many global carriers skipped developing country ports, disrupting India\u2019s key exports such as rice and shrimp and affecting essential imports such as rubber.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s lack of national container capacity left it vulnerable to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Supply chain disruptions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">High freight costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Loss of export competitiveness<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This renewed recognition of maritime self-reliance prompted the shift away from privatisation and toward rebuilding SCI.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Global Trends Supporting Public Ownership<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revival of SCI is not an isolated move. Across the world, governments have increased intervention in strategic sectors:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>United States:<\/b><span style=\"font-weight: 400;\"> The Biden administration invested billions in semiconductors, while the Trump administration acquired stakes in companies including Intel and U.S. Steel, abandoning earlier reluctance toward industrial ownership.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Rare Earth Sector:<\/b><span style=\"font-weight: 400;\"> U.S. government investment has grown due to supply chain vulnerabilities.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This global shift toward strategic state-driven industrial capacity strengthens the logic behind reviving SCI.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Government\u2019s New Revival Plan for SCI<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Large-Scale Ship Acquisition Through PSU Joint Ventures<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The government plans to purchase 200+ merchant vessels for SCI through joint ventures with other PSUs using funds from the Maritime Development Fund.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">PSU partners, such as oil companies, the Container Corporation of India (CONCOR) and others, will provide long-term assured cargo contracts, enabling SCI to finance new ships sustainably.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Rebuilding Container Shipping Capacity<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">One major initiative includes the creation of Bharat Shipping Line, a joint venture of SCI and CONCOR, to buy 20 new container ships, reviving India\u2019s long-neglected container fleet.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Balancing Newbuilds and Market Realities<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">While the revival is ambitious, experts note that global ship prices are currently extremely high due to a prolonged post-pandemic shipping boom.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Therefore, expansion will be gradual, balancing strategic needs with market conditions.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Need to Support Private Indian Shipping<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Industry experts emphasise that revival efforts should not remain limited to SCI.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s broader merchant shipping capacity can grow only if private operators also receive:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Long-term cargo contracts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Support for capital investment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A competitive taxation and regulatory environment<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A holistic approach would build India\u2019s overall flag tonnage, enhancing supply chain resilience and global trade competitiveness.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b><strong> <a href=\"https:\/\/www.thehindu.com\/business\/why-is-the-govt-reviving-a-psu\/article70338529.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Revival of the Shipping Corporation of India reflects a strategic push to strengthen national shipping capacity.<\/p>\n","protected":false},"author":21,"featured_media":75909,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,3954,22,59],"class_list":{"0":"post-75673","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-shipping-corporation-of-india","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/75673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=75673"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/75673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/75909"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=75673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=75673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=75673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}