New Delhi, Jan 20: The director general of shipping has turned down a request from Poompuhar Shipping Corporation for hiring foreign vessels to transport coal along the western coast. This follows Indian National Ship Owners Association's (INSA) refusal to give a no-objection certificate (NOC).According to official sources, INSA maintained that since Indian vessels were available foreign vessels should not be hired. The Tamil Nadu government-owned shipping company owes over Rs 50 crore to Indian ship owners on account of chartering over the last three to four years. The company was forced to apply for the permission since the Indian companies were not willing to provide them vessels owing to delayed payments. Hiring of foreign vessels would mean paying for charter rates of $11,000 per day per vessel.
A NOC is required from INSA for in-chartering of foreign vessels. It is also required for permitting foreign vessels in coastal waters as per the cabotage law.
Sources said that Poompuhar wanted to hire two foreign vessels for moving coal for the state electricity board from Haldia, Vishakhapatnam and Paradeep ports to the Chennai port.
The shipping company, which was mainly floated for transporting TNSEB coal, has its own three vessels.
Besides, it also charters 13 ships on an average for moving 6 million tonne coal per annum. The coal is used at TNSEB's two thermal powers stations.Among the companies to which Poompuhar owes money are the public sector Shipping Corporation of India (SCI), Essar Shipping, Great Eastern Shipping, Tolani Shipping, Sunmark Shipping and Varun Shipping.
Over the last few years, the movement of coal has increased since TNSEB has added to its power generation capacity. Sources, however, said that with TNSEB itself being in losses, it is unable to pay transportation charges to Poompuhar which in turn has kept charter payments in arrears.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.