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SAFETY4SEA

India: New regulation aims to modernize the Indian fleet

by The Editorial Team
March 1, 2023
in Regulation
India

Credit: Shutterstock

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India’s Government has issued new order to withdraw trading licenses for oil tankers and bulk carriers older than 25 years as well as to prohibit the purchase of such vessels that are more than two decades old. This moves comes as part of India’s plan to improve tonnage safety and to make the fleet younger.

The rules will be applied to most classes of commercial ships either owned or chartered by Indian shipping companies or foreign flag ships operating within the Exclusive Economic Zone of India. “Whereas the average age of world fleet is on the declining trend, the average age of the lndian tonnage is on the increasing trend over the years”, said Directorate General of Shipping (DGS), based in Mumbai.

There is a need to create a level playing field for lndian ships by applying the requirements for quality tonnage over the foreign flag vessels also which are required to apply for licence.

..explained.

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All types of foreign vessels, whether they carry free-on-board (FOB) cargo or Indian export-import (EXIM) cargo or cost-insurance freight (CIF), will be subjected to this. Whereas, the existing guidelines stipulate that no prior technical clearance is required for acquisition of vessels below twenty-tive years of age and would be required for vessels of andabove twenty-five years of age.

However, the ‘Existing Vessels’ regardless of its age on the date of issuance of this Order, affected by the maximum age prescribed in the Order, shall be allowed to operate up to three years from the date of the issue of this Order.

The new regulations would also apply to foreign vessels discharging in India, according to the regulator, who also stated that existing vessels affected by the new cap on operating vessel lifetime would be allowed to sail for three more years, regardless of their current age.

India intends to boost its shipbuilding industry by providing cash subsidies, lower taxes, and other incentives. Subsidies are being offered to encourage the construction of new vessels, as well as incentives to build small vessels and promote battery-powered small vessels in order to reduce carbon emissions

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India: New regulation aims to modernize the Indian fleetIndia: New regulation aims to modernize the Indian fleet
India: New regulation aims to modernize the Indian fleetIndia: New regulation aims to modernize the Indian fleet
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