Project to operate passenger ships to Gulf from Kerala runs into rough weather
Kerala's attempt to launch a passenger ship service to the Gulf countries from the State has run into rough weather, as the company that evinced interest in the project has sought time to acquire vessels suited for the service for over a year. The State had been trying to start passenger cruise ship services to the UAE to transport large numbers of overseas travellers, especially during the festive season, to minimise the impact of the predatory pricing of the airlines operating in the sector.
As per the bid floated by the Kerala Maritime Board (KMB), the nodal agency of the project on March 7, 2024 two companies had evinced interest in the project — for 'operation of passenger ships/cruises/vessels connecting West Asia/ GCC with Kerala' utilising the port infrastructure in Kerala. Subsequently, a meeting was also held on August 6, 2024, between KMB and the Shipping Corporation of India (SCI) with the presence of two prospective bidders to discuss the technical aspects of the project.
However, the interested bidders are yet to acquire suitable vessels for the service, according to the Ministry of Ports, Shipping and Waterways. Speaking to The Hindu, N.S. Pillai, chairman of the KMB, said the talks with a company named White Shipping based in Chennai were hopeful, and the shipping company has sought time to acquire a ship for the project. However, the company has not yet communicated to the KMB on the status of their search for ships, said Mr. Pillai.
The KMB's role will be to provide berthing and passenger terminal facilities, along with the infrastructure essential for operations – upon payment of necessary charges. The operator should provide the cruise/passenger ship service, viz., all aspects of acquisition of vessels or leasing, operations including staffing, safety, vessel maintenance, logistics and marketing, etc.
Hopeful of comeback
Though the project has been delayed, the KMB is hopeful that it could be brought back on track, taking account of the huge diaspora from the State, especially in the UAE, which alone is has around 19 lakh Keralites. The cruise ship services will blend affordable travel along with a luxury cruise experience accompanied by entertainment facilities onboard the ship — in a bid to woo blue-collar workers and premium cruise travellers.
The State government had earlier taken the initiative to press in charter flights to bring expats back to Kerala during the festive season and sought permission from the Centre to operate chartered flights between the UAE and India, adhering to the stipulated CAR (Civil Aviation Requirements) of 30 days under ITP (International Travel Permits) provisions. However, after a few rounds of discussions with airlines operating in the sector, the project hit an air pocket.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
7 days ago
- India Today
How India's plan to build 112 crude oil tankers is a bold move for energy security, self-reliance
When the Indian government unveiled its Rs 85,000 crore ($10 billion) plan to build 112 crude oil tankers domestically, it marked a bold foray into industrial renewal, strategic autonomy and maritime ambition. Announced as part of the broader Make in India push, the plan aims to sharply reduce the country's dependence on foreign-owned vessels to transport its most vital import: crude numbers are striking. India imports more than 85 per cent of its crude oil, yet over 95 per cent of it is ferried by foreign-owned ships. The state-run Shipping Corporation of India (SCI) and a few private operators maintain a limited fleet of tankers—most of them old, foreign-built and increasingly uneconomical to run. As India's refining capacity is projected to expand from 250 million tonnes to 450 million tonnes by 2030, the gap between energy demand and logistical sovereignty has become response, the government is embarking on a generational project. The first 10 tankers are expected to be ordered shortly. By 2047, the centenary of Indian independence, the goal is for 69 per cent of the country's crude oil fleet to be both Indian-built and Indian-owned. That target, reported in internal planning documents and quoted in the media, reflects a sharp alignment with the government's Viksit Bharat vision. But beyond the strategic clarity lies a hard question: can India build a globally competitive shipping industry from the ground up—on time and on budget?THE CHINESE SHADOWS To understand the scale of the challenge, one must look east. The global shipbuilding industry is almost entirely monopolised by three countries—China, South Korea and Japan—which together account for over 90 per cent of all commercial ship deliveries. These nations don't just build ships; they command the entire ecosystem: design, materials, propulsion systems, financing and post-delivery servicing. China alone built more than 1,000 ships in 2023 and is doubling down on dual-fuel, low-emission designs that will soon be global regulatory comparison, Indian yards, as such as Cochin Shipyard, L&T's Kattupalli facility and Mazagon Dock, have limited experience with large crude tankers. Most lack the dry-dock depth, assembly automation and robotic welding infrastructure needed to build Very Large Crude Carriers (VLCCs) at scale. Building one or two prototypes is possible; building over 100 over two decades is a different Indian shipbuilders are still heavily reliant on imported components: marine-grade steel, turbocharged diesel engines, navigation electronics, and even anchor chains. Much of this is sourced from Chinese suppliers or from Western firms embedded in Chinese supply chains. Unless India establishes a parallel industrial base for marine components—possibly through targeted Production Linked Incentive (PLI) schemes—the ships built here may be 'assembled' rather than truly 'made' in there's the matter of cost. Indian-built tankers are expected to be 15-25 per cent more expensive than those from China or South Korea. For cash-conscious oil refiners such as Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL) or Reliance, that cost differential is significant. The government is reportedly working on freight subsidies, tax incentives and guaranteed long-term contracts to make Indian-built vessels commercially viable. Without these, shipyards may build tankers that find no STRATEGIC WATERSYet the rationale behind this initiative isn't just economic—it's strategic. India's experience with global freight volatility during the Covid-19 pandemic, the Suez and Red Sea disruptions and tensions in the Strait of Hormuz has underscored a stark truth: logistics is leverage. For a country that depends so heavily on imported oil, not owning the ships that carry it is a structural government's plan attempts to plug this gap while also reviving the long-dormant commercial shipbuilding sector. If executed well, the project could create 150,000 to 200,000 skilled jobs and catalyse downstream industries worth Rs 2-3 lakh crore. The larger objective is to build a marine industrial ecosystem that spans shipyards, ports, steel plants, electronic component makers and logistics is, in theory, room to leverage emerging international partnerships. Japan and South Korea, though competitors in shipbuilding, have expressed interest in collaborating on marine technology and skill development under Indo-Pacific cooperation frameworks. The UAE and Saudi Arabia, India's largest crude suppliers, may be willing to co-finance Indian-built tankers or underwrite long-term leases, ensuring steady demand. The India-Middle East-Europe Economic Corridor (IMEEC) and QUAD maritime initiatives offer further possibilities for technology transfers and export credit the window may be narrow. China is already transitioning to green shipping technologies—methanol-fueled engines, autonomous navigation systems and carbon-neutral supply chains. Korea is investing in mega yards that produce LNG (liquefied natural gas) and hydrogen-powered ships. India must not only catch up—it must leap key risk is execution drift. For this initiative to succeed, India must move beyond procurement headlines and lay the foundation for a modern, resilient and innovation-driven shipbuilding sector. That means building deeper dry docks, introducing robotic production lines, integrating design software from global leaders, and creating world-class training academies for naval architects and marine important is financing. Building a ship is only half the battle—operating and maintaining it profitably requires a mature shipping finance ecosystem. India lacks a dedicated maritime financing institution, unlike Korea's Exim-backed ship lease model or Japan's structured maritime investment banks. Without accessible, low-interest capital and sovereign-backed guarantees, Indian ship-owners may still prefer the low-risk route of foreign FOR SWADESHI FLEETIf India's $10 billion crude tanker programme succeeds, it will mark the return of a strategic capability that was allowed to languish for decades. It would restore confidence in Indian manufacturing, provide maritime muscle to the country's energy security policy, and signal to the world that India is ready to shape—rather than merely sail through—global trade government has launched a shipbuilding renaissance anchored in strategic partnerships and industrial ecosystem building. South Korean shipbuilding giants such as HD Hyundai are investing in Indian infrastructure, including a Rs 10,000 crore mega shipyard in Tamil Nadu, poised to build large crude tankers with cutting-edge technology. Hanwha Ocean is also exploring collaborations, while Japan offers expertise in precision engineering and green technologies through attractive policy alliances bring technology transfer, specialised skill development and capital investments that can help Indian shipyards leapfrog initial hurdles. Additionally, states such as Tamil Nadu, Gujarat, and Maharashtra are emerging as maritime industrial hubs, leveraging coastal infrastructure and pro-industry success depends on converting ambition into engineering capability, policy intent into industrial ecosystems, and geopolitical alignment into technological partnerships. It means creating deep dry docks, robotic welding lines, and world-class naval architecture institutes. It means expanding domestic manufacturing of marine-grade steel, engines, and electronics, reducing costly must also innovate in green shipbuilding, embracing LNG and hydrogen-powered vessels to meet global emission norms. The growing demand for eco-friendly shipping offers an opportunity to future-proof the fleet and capture emerging the same time, developing a robust maritime financing ecosystem is critical. Government-backed maritime investment banks, low-interest credit lines, and long-term charter contracts will be vital to make Indian-built tankers commercially viable and attractive to crude oil tanker initiative is not just about ships—it is about reclaiming control over the physical architecture of its 21st-century economic sovereignty. It is about ensuring that the oil powering India's growth moves not just across oceans, but under the executed with discipline, innovation and strategic foresight, this flagship initiative will revive a dormant shipbuilding sector, create hundreds of thousands of skilled jobs, reduce external vulnerabilities and add a new dimension to India's energy road ahead is fraught with challenges, but the prize—a modern, self-reliant and resilient maritime fleet—could transform India's place in the global energy and shipping order. The question is not just whether India can build these tankers, but whether it can build the vision, partnerships and ecosystems to sustain this fleet through decades of turbulent now, the government has launched its shipbuilding renaissance with confidence. Whether this fleet will sail or be stranded in the dry docks of missed potential will depend on what comes to India Today Magazine
&w=3840&q=100)
Business Standard
26-05-2025
- Business Standard
Tyre maker Balkrishna Industries' stock down 10% in firm market; here's why
Balkrishna Industries share price today Balkrishna Industries (BKT) shares slipped 10 per cent to ₹2,385 on the BSE in Monday's intraday trade, in an otherwise firm market, after the company reported lower-than-expected profit after tax (PAT) in the March 2025 quarter (Q4FY25) primarily due to forex loss. The company also plans a modular entry into premium passenger car radial tires and commercial vehicles radial tires with initial focus on the domestic replacement market in both categories. At 09:34 AM, BKT was quoting 9.7 per cent lower at ₹2,402.70, as compared to 0.78 per cent rise in the BSE Sensex. Q4 results Balkrishna Industries' reported standalone net sales for the quarter were up 2.8 per cent year-on-year (Y-o-Y), at ₹2,747 crore, amid flat tyre sales volume of 82,062 tonne. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins in Q4FY25 came in at 21.9 per cent, down 124 bps Q-o-Q. The margin contracted due to higher input costs, which are likely to have peaked in Q4. PAT for the quarter stood at ₹362 crore, down 24.7 per cent Y-o-Y, primarily due to an unrealised forex loss. Management commentary The management earmarked an ambitious five-year roadmap to scale up revenue by 2.2x to ₹23,000 crore by 2030. This would be driven by continued outperformance in its core OHT segment (70 per cent contribution estimate by 2030), where it targets to move to an 8 per cent share by 2030 from 6 per cent currently, for which capacity is being expanded to 425k MT per annum from the current 360k MT per annum; 10 per cent contribution from sales of carbon black to a third party, for which carbon black capacity is being increased to 360k mtpa from the current 200k mtpa; and a foray into Truck and Bus Radial (TBR) and premium Passenger Car Radial (PCR) segments, which is expected to contribute to 20 per cent of revenue by 2030. For this ambitious growth, BKT has earmarked ₹3,500 crore capex over the next three years, in addition to the ₹50-70 crore capex that would be invested in the core segment. Given its backward integration capabilities and market understanding, management does not expect this foray to materially dilute either margins or returns by 2030. Motilal Oswal Financial Services on Balkrishna Industries shares BKT continues to face demand headwinds in its key global markets. Hence, the brokerage firm has cut its earnings estimates by 8 per cent each for FY26/FY27. Further, its foray into the PCR/TBR segments is likely to be critically monitored from here on for whether or not it is able to gain material traction in these segments and would margins and returns be materially dilutive in the long run. "While the stock has not done well in the recent past and its valuations at 27.7x FY26E and 22.9x FY27E are not too demanding, its future target multiple is likely to be a function of its success in these new segments," MOFSL said. The success will not only be in terms of market share gains but also without materially hurting core returns – which is likely to be a herculean task, in our opinion. The brokerage retained its target multiple for BKT and continues to value it at 22x FY27E. However, this may warrant a change going forward if BKT's returns plunge due to this foray. Reiterate Neutral with a target price of ₹ 2,553. ALSO READ | ICICI Securities on Balkrishna Industries The company announced a focused capex of ₹3,500 crore over three years — entirely funded through internal accruals — is aimed at expanding capacity in its core Off-Highway Tire (OHT) segment, scaling its carbon black operations, and entering new high-potential radial tire categories in India (TBR, PCR replacement). With clear revenue targets for each growth lever, backward integration benefits, and a healthy net cash position, BKT is well-positioned to compound earnings over the medium term. However, these new segments have historically commanded less margins, RoCE profile, and valuations than BKT's base OHT business, which will have long term implications for its blended margins, RoCE's and valuations. The brokerage firm expects the stock to open negative on its diversification efforts into mass segments carbon black and TBR & PCR segments. This shall challenge the premium valuations commanded by the company in the past.
New Indian Express
23-05-2025
- New Indian Express
Milma packets to carry cyber safety awareness message
THIRUVANANTHAPURAM: From Saturday onwards, the Milma milk sachets will be delivering not just 'goodness' as its famed tagline says, but a word of caution too. Worried by the surge in cyber crimes, The Kerala Co-operative Milk Marketing Federation, known by its trade name Milma, has decided to run cyber safety awareness message on milk packets. The endeavour is a result of police's effort to amplify its cyber awareness drive by using the massive reach and market penetration of the brand. Sources in the cyber police division told TNIE that the objective is to make the topic a matter of discussion among Milma consumers. The brand has got a strong reach in the state with about 33 lakh packets being sold daily. 'The brand has got a loyal and formidable customer base. While seeing the sachets, the text would catch their attention and by getting exposed to the content regularly, the public will develop a serious attitude towards the highlighted issue,' it said. The sources said the awareness drive via Milma milk sachets will run for three months, and one positive aspect of this exercise is that people in rural parts and in households would be able to gauge the seriousness of cyber crimes. 'Already there are lots of awareness drives happening via various platforms. But the drive intended via Milma has got a clear advantage. Women, children and elderly people will be exposed to our message as they will be handling the milk packets multiple times daily. The more they come across the message, they will understand the need for keeping up guard while handling cyberspace,' the sources added. Only one type of awareness content will be printed on the sachets and the exercise will be limited to just milk packets as they have got the maximum reach. The collective loot from Kerala by cyber criminals over the past three years was more than Rs 10 billion. Fraudsters swindled Rs 1,021 crore between 2022 and 2024, of which Rs 763 crore was siphoned off last year. While Keralites lost Rs 48 crore to cyber fraud in 2022, the amount rose to Rs 210 crore in 2023, the official data revealed. A total of 41,426 complaints were registered in 2024, which roughly implies that as many people lost money to various cyber fraud activities.
