Banks May Gain Power to Auction Ships
PORTS & SHIPPING

Banks May Gain Power to Auction Ships

In response to growing concerns over loan defaults in the maritime sector, Indian banks might soon receive the authority to auction ships. This move aims to provide a more effective remedy for financial institutions dealing with non-performing loans in the shipping industry.

Currently, banks face challenges in recovering dues from defaulting shipowners due to the complexities involved in liquidating maritime assets. The proposed regulation would enable banks to auction ships directly, streamlining the process and enhancing their ability to recoup funds.

This development is expected to have significant implications for both the banking sector and the shipping industry. For banks, it offers a new tool to manage and mitigate risk associated with ship financing. For the shipping industry, it underscores the need for robust financial planning and adherence to loan agreements.

The measure reflects a broader trend of regulatory adjustments aimed at improving financial stability and operational efficiency within sectors heavily reliant on asset-based lending.

In response to growing concerns over loan defaults in the maritime sector, Indian banks might soon receive the authority to auction ships. This move aims to provide a more effective remedy for financial institutions dealing with non-performing loans in the shipping industry. Currently, banks face challenges in recovering dues from defaulting shipowners due to the complexities involved in liquidating maritime assets. The proposed regulation would enable banks to auction ships directly, streamlining the process and enhancing their ability to recoup funds. This development is expected to have significant implications for both the banking sector and the shipping industry. For banks, it offers a new tool to manage and mitigate risk associated with ship financing. For the shipping industry, it underscores the need for robust financial planning and adherence to loan agreements. The measure reflects a broader trend of regulatory adjustments aimed at improving financial stability and operational efficiency within sectors heavily reliant on asset-based lending.

Next Story
Infrastructure Transport

Gurgaon-Pataudi-Rewari Highway Set for Completion by December 2025

The National Highways Authority of India (NHAI) has set a new target to complete the four-lane Gurgaon-Pataudi-Rewari highway by December 2025, following a two-year delay.Originally planned in 2018 to upgrade the two-lane state highway into a national highway, the project is estimated to cost Rs 9 billion. Construction, which began in 2021, was initially scheduled for completion in November 2023. According to NHAI, around 70 per cent of the work is already complete, with two major structures still pending: a railway overbridge at Pahari village and a two-lane unidirectional flyover on Dwarka E..

Next Story
Infrastructure Transport

UP Plans Rs 900 Million Extensions to Hindon Elevated Road

The Uttar Pradesh state bridge corporation has prepared the detailed project report and cost estimates for two proposed extensions of the 10.3-km Hindon elevated road, officials said on Thursday. The road connects Raj Nagar Extension to UP-Gate near the east Delhi border, and the project is expected to cost around Rs 900 million.The two extensions, each 400 metres long, will be added to the existing elevated road to ensure smoother traffic flow. “One of the extensions will be from near the Kanawani culvert (near Indirapuram) to the elevated road for commuters heading towards Delhi. The other..

Next Story
Infrastructure Urban

Goa Likely to Miss October Deadline for Maritime Master Plan

Goa is expected to miss the October 31 deadline for submitting its maritime and waterways master plan, which covers the state’s 105 km coastline and river network. The delay is due to the project management consultant not yet being appointed. The plan is now anticipated to be completed by December, Captain of Ports Octavio Rodrigues stated at the India Maritime Week 2025 roadshow.“We have already selected the consultant and will bring them on board within a week. Only then can we begin drafting the master plan, which is essential to secure central government funding,” Rodrigues added.A c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?