NEW DELHI, Dec 10: In its bid to protect domestic ship-building industry, the Ministry of Surface Transport (MoST) has decided in principle to continue with the quantative restrictions on import of small ships and floating crafts for at least four years. The government has to completely deregulate import of vessels by March 31, 2001, as per the WTO norms.

Ministry sources said the decision, which is in line with the recommendations of an inter-ministrial panel, will improve the order book position of domestic shipyards and give them adequate time to improve their facilities. While domestic ship-building industry is upbeat about the decision, local shipping firms have been lobbying with the government for removal of import restrictions on smaller crafts.

"If the restriction on import of floating crafts is removed, it will have a severe effect on the order book position on shipyards, which is already very thin. In fact, it may have led to closure of some more shipyards in the private sector," according to MoST officials.

However, the government is yet to make up its mind about the import tariff. The move is being resisted by the Indian National Shipowners' Association (INSA) and the Shipping Corporation of India.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.