Tag: India

Shipping Ministry raises alarm Warning that an Air India-like situation is being replicated at SCI, the Shipping Ministry has raised red flag over the state-run company's plans to acquire fresh vessels, stating the firm stands to lose around USD 200 million from the proposed purchases.According to an internal document of the Shipping Ministry, Shipping Corporation of India (SCI) "is on the brink of financial collapse" and its plans to acquire 33 vessels would lead into a "debt-trap, almost on the lines of Air India"."SCI, which has had a profitable run for the last 19 years, is on the brink of a financial collapse...the company will be in the red from this year onwards. The large and high cost orders are leading to a debt-trap almost on the lines of Air India," the document said.According to the document, the is a significant gap emerging between the cost per vessel as per contract and market value of the vessel at present."The overall loss to the company on account of such acquisitions, where there are gaps between the contract price and the present market value, is in excess of USD 200 million," the document said.As on date, SCI has 33 vessels on order, ...

NSB decided to recommend waiver of income tax on their earnings Giving some relief to the Indian seamen who are posted on Indian ships, the National Shipping Board (NSB) has decided to recommend waiver of income tax on their earnings.The NSB's suggestion to the Central government, if implemented, will benefit around 50,000 seamen in the country. According to S B Agnihotri, director general of shipping, NSB decided to take up the matter with the Centre within one month, so that it could be considered in the next budget. NSB, an advisory board to the shipping ministry, made this decision at its 117th meeting which was held in Kochi on Saturday. If the finance ministry allows the tax waiver, it could have a positive impact on the shipping industry in the country, says a highly placed source in the shipping ministry."Right now seafarers working on Indian ships are taxed at 30%, while those working on foreign ships don't have to pay tax as they have NRI status. This, in fact, resulted in the drain of highly qualified seamen from the country," sources said.NSB also discussed the matter of upgrading the existing Marine Mercantile Department offices and to establish new field offices. ...

To promote transhipment activity at the International Container Transshipment Terminal in Kochi The shipping ministry is considering relaxing the coastal shipping rules for container movement in order to promote transhipment activity at the International Container Transshipment Terminal in down-country Kochi.Current cabotage norms allow foreign ships to ply on the coastline of the country only after getting prior licence from the government. While for cargo like bulk, dry bulk and liquid, the shipping ministry wants to make the cabotage law stricter by making licensing process conservative, it is proposing a lenient policy for containers.According to the Merchant Shipping Act 1958, a ship has to be Indian or one chartered by a citizen of the country for it to engage in coasting trade. This will be the case except - as the same Section 407 suggests - for those operating under a licence granted by the Directorate General of Shipping.The shipping ministry is currently drafting the final proposal on cabotage norms and the kind of relaxation it can provide to foreign vessels. "It should be ready in a couple of months to go for cabinet approval," says a senior official.While it is for the Cabinet to take a final decision on the ...

Including improved surveillance mechanism and enhanced patrolling On 31st July 2011 merchant vessel MT Pavit was found grounded 1-2 meter depth in position 14 NM north of Colaba Point, Mumbai. MT Pavit was abandoned on 30th June 2011 off the Oman coast and all the thirteen Indian crews were evacuated by Royal Navy Ship and transferred to MT Jag Pushpa for disembarkation at Sikka, Gujarat. The Maritime Rescue Coordination Centre (MRCC) Mumbai remained in touch with the vessel throughout the ordeal till abandoning and requested the owner to monitor the vessel. However the owner informed MRCC that the vessel has already sunk.An analysis carried out by Indian Navy has revealed that the reasons for non detection of MT Pavit could possibly be attributed to report of the vessel having been sunk, drift path of the ship through areas not covered by radar, prevailing monsoon weather (low and thick cloud base, poor visibility, heavy rain, rough seas) in the area precluding satisfactory detection by radar or visual identification and MT Pavit was also not having operational Automatic Identification System (AIS) due to no power supply or batteries on the ship.A drifting Iranian ship Nafis-I was detected by Indian Navy unit approx ...

Ships will be allowed only if they satisfy conditions such as having adequate insurance The Government has decided to restrict the entry of ships over 25 years old into Indian ports or territorial waters. "Most of the ships involved in accidents, such as the MSC Chitra and M.V. Khalijia are very old.Therefore, the Government has decided to issue a notification under the Merchant Shipping Act, 1958, that such ships will be allowed only if they satisfy conditions such as having adequate insurance to cover liabilities including collision, wreck removal and salvage," said the Union Minister for Shipping, Mr G.K. Vasan, in Parliament. Such ships should be classed with Classification Societies which are full members of the International Association of Classification Societies (IACS), and should appoint an Indian Ship Agent to represent the owner/charterer.Also, the Indian agent should notify the Port authority and the Customs Collector at least 48 hours prior to the arrival of the ship about the details of the ship including insurance. Mr Vasan said that 93 Indian flag ships are over 25 years old. However, they will not be affected as they are all classed with the Indian Register of Shipping (IRS), which is a full member ...

Pirates are looking for 'soft targets' and newer techniques The changes in tactics of pirates have been a subject of constant review by International shipping community. The general understanding is that pirates are forever looking for 'soft targets' and newer techniques for extending their reach.Earlier pirate activities were mainly concentrated in the Gulf of Aden. However, due to increased military (Naval) presence in the area, incidents of piracy are now reported more eastward in the Arabian seas. Pirates have also started using captured merchant ships as 'mother ships' to launch attacks far away from the Somalia coast. This was stated by the Minister of State for Shipping, Shri Mukul Roy in a written reply to a question in the Lok Sabha.The Minister said that on account of extension of 'high risk area' from earlier 65 degree East to 78 degree East (up to the outer limit of territorial waters of India), the cost of insurance for trading in the Arabian seas has generally gone up.The Minister further informed that the Government of India has drawn attention to the problem of piracy and hostage taking off the Coast of Somalia and called for urgent and collaborative international counter-piracy measures in the ...

VTMS will include Radar and AIS technology The Indian Minister of Shipping has stated that the country has developed a new Vessel Traffic Management System (VTMS), to overcome the problems of congestion and collision in its ports and minimise accidents.The Union Minister of Shipping, Shri G.K. Vasan, made the statement in a supplementary reply to a question in Lok Sabha, the lower house of the Parliament of India.The VTMS will include Radar and Automatic Identification System (AIS) technology, supplemented by meteorological and hydrological sensors, and communication links that will be used to provide an overview of Indian maritime traffic.The VTMS will apply to port channels at Mumbai, Jawaharlal Nehru, Kolkata, Cochin, New Mangalore and Mormugao.VTMS will also monitor traffic in the Kutch region, which will include vessels bound for Kandla, while installation of VTMS technology is said to be "in progress" at Chennai Port.Similarly, Visakhaptnam, Tuticorin, Paradip and Ennore will all install VTMS "shortly", according to the Minister, and will use GPS, Radar and AIS to manage traffic in the interim.Source: The Digital Ship

About 93 Indian flag ships are above 25 years of age The Government has decided to impose certain restrictions on entry of over 25 years old ships into Indian ports or territorial waters. This was stated by the Union Minister of Shipping, Shri G.K. Vasan in a supplementary reply to a question in Lok Sabha.The Minister said that most of the ships involved in accidents like collision of MSC Chitra and M.V. Khalijia are very old. Therefore, the Government has decided to issue a notification under Merchant Shipping Act, 1958 that if the ships are more than 25 years old they will be allowed only if they satisfy the following conditions:i) They should be classed with Classification Societies which are full member of International Association of Classification Societies (IACS).ii) Have adequate insurance coverage to liabilities including collision, wreck removal and salvage.iii) Appoint an Indian Ship Agent to represent owner/charterer.iv) The Indian agent should notify the Port authority and the customs collector at least 48 hours prior to the arrival of the ship about the details of the ship including insurance etc.There are about 93 Indian flag ships which are above 25 years of age. However, they will not be affected ...

Referring to the recurring oil spills and their impact on environment The Defence Minister Shri AK Antony has told all stakeholders of Coastal Security that unless they worked with a unified purpose, there would be no real progress. Chairing a meeting on Coastal Security here last evening, he directed that all the remaining gaps in the Coastal Security Framework be bridged in minimum time possible. He also asked the senior officials to work towards operationalzing Phase-II of Coastal Security.The meeting was attended among others by the Cabinet Secretary Shri Ajit Seth, Chief of Naval Staff Admiral Nirmal Verma, Defence Secretary Shri Shashikant Sharma, Secretary, Ministry of Shipping Shri K Mohandas, Secretary, Ministry of Environment & Forests Shri P. Chatterji, Secretary, Department of Animal Husbandry, Dairying and Fisheries Shri R Gangadharan, Secretary, Border Management, Ministry of Home Affairs Shri AE Ahmed, Special Secretary, Ministry of Defence Shri RK Mathur, DG Coast Guard Vice Admiral Anil Chopra and Senior Officers of MoD, Indian Navy, Coast Guard and Ministry of Petroleum and Natural Gas.Expressing concern over certain incidents such as the grounding of MT Pavit, off the Indian Coastline, which showed gaps in the Coastal Security Framework, Shri Antony emphasized that all stakeholders ...

The ships need a minimum score based on fuel consumption and emissions In an attempt to cut greenhouse gas emmissions, the Indian government will introduce a discount for all 'green' ships docking at the country's ports. The ships need a minimum score based on fuel consumption and emissions including sulphur di-oxide and carbon-di-oxide.Green is now the new buzz at the shipping ministry. In an endeavour to cut down on greenhouse gas (GHG) emissions and limit damage to coastal life, the ministry is planning to introduce a discount for 'green ships' that enter Indian ports.This is a prevalent practice at some major ports such as Hamburg in Germany, Antwerp in Belgium and Panama. The ministry has proposed offering a rebate of 25% on vessel related charges on such ships.To qualify for a discount a ship needs to score 30 or more points on the International Environmental Ship Index, which rates vessels on a scale from 0 to 100 based on factors such as fuel consumption and emissions including sulphur dioxide and carbon dioxide.The minimum qualifying score at Indian ports, for availing the discount, is yet to be finalised. The proposal forms part of the discussions of the working group on shipping ...