India, Pak make peace in maritime trade

NEW DELHI: An India-Bound Vessel from a third country may now be able to lift cargo from Pakistan and vice-versa. The Cabinet on Friday approved the signing of revised protocol on shipping services between India and Pakistan.

This will allow lifting of cargo between the two countries by the third country vessels as well as lifting of third country cargo by India and Pakistani flag vessels from each others’ ports, an official statement said.

It is expected “to enhance tonnage under both the flags and also result in competitive shipping rates,” it added. Maritime trade between India and Pakistan is governed by the 1974 protocol. The protocol does not allow third country vessels to lift cargo bound for India or Pakistan, from Pakistan and India, respectively. It prohibits flag carriers of both the countries to lift cargo for a third country from each others’ ports.

To improve road connectivity between the two countries, the government has also approved the four-laning of Amritsar-Wagah section of national highways (NH-1) on BOT basis at an estimated cost of Rs 207 crore.

In order to strengthen the shipping sector, the Cabinet Committee on Economic Affairs (CCEA) on Friday gave its nod to Shipping Corporation of India (SCI) for acquiring two cellular container vessels of about 4,300 twenty equivalent units (TEU) capacity each at $65.95m per vessel (Rs 303.37 crore).

“The total cost of the project would be $131.90m (Rs 606.74 crore),” the statement said. The acquisition will help SCI to replace its in-chartered tonnage deployed on India-UK continent service, reducing its dependence on the in-charted tonnage.

The government also approved the procurement of four fixed X-ray and three mobile gamma ray container scanners at Rs 172.94 crore. The equipment, expected to help in port security management, will be installed at Mumbai, Chennai, Tuticorin and Kandla ports, it said.