BackPriority in chartering to be given to vessels built, flagged in India and owned by Indians: Govt
All vessels flying the flag of India (i.e. registered in India) up to the date of issue of new circular by the Director General of Shipping shall be deemed to be Indian built vessels, the Ministry of Shipping saidThe Ministry has already disbursed an amount of ₹61.05 crores till date under this policy
PremiumIn a major boost to shipbuilding in India in alignment to Atmanirbhar Bharat initiative, the government has amended existing norms and now the first priority in chartering of vessels will be given to ships built and flagged in India as well as owned by Indians, Union Minister Mansukh Mandaviya said on Thursday.
The move will promote 'Make in India' initiatives and give a strategic boost to domestic shipbuilding industries and generate employment, the minister said.
"Ministry of Shipping is working with a focused approach to promote shipbuilding in India as per AatmaNirbhar Bharat vision of our Prime Minister Shri Narendra Modi. The revision of RoFR licensing conditions is a giant step towards AatmaNirbhar Shipping. It will promote ‘Make in India’ initiatives through self-reliance and will give a strategic boost to domestic Ship building industries, contributing towards long-term economic growth of India," Shipping Minister Mandaviya said.
Now it has been decided that for any kind of charter of a vessel undertaken through a tender process, the Right of First Refusal (RoFR) would be exerted in the following manner:
1) Indian built, Indian flagged and Indian owned
2) Foreign built, Indian flagged and Indian owned
3) Indian built, foreign flagged and foreign owned
The priorities will be given under certain conditions. The ministry highlighted that the Right of First Refusal (RoFR) would be exerted provided that:
1) All vessels flying the flag of India (i.e. registered in India) up to the date of issue of new circular by the Director General of Shipping shall be deemed to be Indian built vessels and will fall in category (i) above and
2) The foreign flagged vessels permitted by DG (Shipping) under Section 406 of the Merchant Shipping Act, 1958 for chartering by an Indian citizen/company/society, who is building a ship in an Indian shipyard for registration under the Indian flag, as a temporary substitute for the Indian ship under construction, meeting the following two conditions shall be deemed to fall under Category (i) above.
Besides, it said the foreign flagged vessels permitted by DG (Shipping) for chartering by an Indian citizen/company/society, who is building a ship in an Indian shipyard for registration under the Indian flag, as a temporary substitute for the Indian ship under construction, shall come under first priority provided "25 per cent of the contract money has been paid to the Indian shipyard" and "50 per cent of the hull fabrication has been completed, as certified by recognised organisation."
The duration of licence to such chartered vessel shall be limited to the period of building of the ship, as mentioned in the shipbuilding contract.
It is to be noted that Ministry of Shipping has made provision for long-term subsidy for shipbuilding activities under shipbuilding financial assistance policy (2016-2026). The Ministry has already disbursed an amount of ₹61.05 crore till date under this policy. It is an endeavour of the Government to further incentivise shipbuilding by providing additional market access and business support to ships built in India.
The revised guidelines will give a boost to the domestic shipbuilding and shipping industries. It will encourage the domestic shipping industry to support the domestic shipping industry.
It is an endeavour of the government to further incentivise shipbuilding by providing additional market access and business support to ships built in India, Mandaviya told news agency PTI.
He said the revised guidelines will give a boost to the domestic shipbuilding and shipping industries and encourage the domestic shipping industry to support the domestic shipping industry.
The minister said to revive the Indian shipbuilding industry, the government has already asked all major ports to procure or charter tug boats that are made in India.
India has 12 major ports -- Kandla, Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (Ennore), VO Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia) -- that handle about 61 per cent of the country's total cargo traffic.
With agency inputs
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