Indian shipping seeks government loans

The Shipping Corporation of India has called on the country's government to set up a fund to help finance the industry at a time when bank loans are harder to come by in the wake of the global recession. SCI expects Indian shipping to have to invest upwards of US$20bn in the coming years to modernise and expand to meet the country's growing demands. "Many western banks have received loans from their respective governments," SCI chairman SC Hajara said. "The government nominees in these banks insist on giving loans only to projects in their countries."

Hajara said that the bulk of Indian shipping firms have, in the past, raised finance on the world market because Indian banks are unwilling to lend to shipping. With global finance in turmoil, that route is an increasingly difficult option.

(Source: Maritime Global Net)