The Centre has mooted an alternate plan to boost Indian flag bearing liners and offer some benefits that are enjoyed by foreign liners, an official said.

"We have decided an alternate plan to offer some competitive advantage to Indian liners. A proposal has been sent to Ministry of Shipping to introduce a concept of Indian controlled tonnage," DG shipping Gautam Chatterjee told PTI.

Indian controlled tonnage will be a category for foreign flag carriers with Indian management.

There are a number of carriers with foreign flags but controlled by Indian operators and they avoid Indian registration to access cheaper credit and various tax benefits.

"With this, foreign flag liners controlled by Indian owners can register in India and get all tax benefits and cheaper credit that foreign flag carriers enjoy over domestic carriers," Chatterjee said.

He said till the time Indian liners were unable to get access to a level playing field, Indian controlled tonnage system will help the government to have better control on foreign flag carriers with Indian management by relaxing certain norms to enjoy similar benefits with Indian registration, which was not allowed earlier.

Using a provision of the Merchant Shipping Act, the Ministry of Shipping would not require the Cabinet's approval to introduce the concept, said Chatterjee.

Indian flag liners share only eight per cent of domestic import and export of goods and DG shipping was trying to increase the share.