Singapore attracts shipping firms

Singapore became the hottest destination for Indian shipping companies. The tax-friendly regime in Singapore is encouraging domestic shipping companies to acquire vessels through their subsidiaries in that country. Shipping majors are also queuing up to raise finance in Singapore. Mumbai-based Mercator Lines has signed an agreement with an overseas company for acquiring four dry bulk ships through Mercator Lines (Singapore) Pte at an estimated investment of Rs 1,000 crore.

Varun Shipping Company, which specialises in LPG transportation, is also planning vessel acquisition through its Singapore subsidiary.Tolani Shipping has already moved all its ships under the Singapore flag owing to the tax burden faced by shipping companies in India.  Though the country’s largest private shipping company, GE Shipping, has a subsidiary in Singapore, all its vessels are plying under the Indian flag.

However, GE Shipping executives had earlier warned that it will flag out vessels to other countries as multiple taxes in India had made business uncompetitive. “Indian shipping companies are exposed to 12 taxes,” said a senior executive of the shipping company. An industry expert said Singapore levied only nominal tax as tonnage tax and it was also easy to set up a subsidiary there. Mercator’s Singapore subsidiary has also firmed up plans to float an initial public offering in that country. After the public issue, it will be listed on the Singapore Stock Exchange and the IPO proceeds would be used for fleet expansion under the Singapore flag. Sources said the company had finalised the investment bankers for the public issue which would hit the capital market shortly. When contacted, Mercator Lines executives declined to comment.

As a part of the proposed issue, Mercator Lines has raised $51 million through convertible bonds which are listed on the Singapore Stock Exchange. A senior Varun Shipping executive said the company was planning to acquire vessels through its Singapore subsidiary. Varun Shipping had filed a draft prospectus with Monetary Authority of Singapore to issue Singapore Depository Shares. However, considering the volatile stock conditions globally, it has put the issue on the back burner.

Armed Groups Emerging In Southern Nepal

Even after former Maoist rebels gave up their arms and joined the political process, the violence is not likely to stop. Reports suggest that another armed group emerged in Southern Nepal this week.

The newly formed group is calling itself Janatantrik Terai Mukti Morcha-Second (JTMM-Second). The JTMM-Second is a splinter faction of the Janatantrik Terai Mukti Morcha, which is led by Jaya Krishna Goit. A member of the CPN-Maoist, Goit had formed his group, JTMM-G, following a dispute with the CPN-Maoist leadership in 2004. The newly armed group has been formed under the leadership of Bisfot Singh, a former rebel.

Singh told media persons that he decided to form a new group, as the JTMM-G failed to address the issues of the Madheshee people in Southern Nepal. Eight ‘military’ commanders of the JTMM-Goit announced the formation of the JTMM (Second).

The ‘military’ commanders accused the JTMM-Goit of being unable in bringing independence to Southern Nepal. They also said they would work for the welfare of the Madheshee people.There are many other armed groups operating under various names in Southern Nepal. These include the major groups; JTMM, led by Jwala Singh and National Defense Army (NDA), led by a Hindu priest, among others.

Although there the government does not provide official statistics, unofficial reports say such armed groups have killed about 100 persons in Nepal to date.