Priority in chartering to be given to Indian built, flagged and owned vessels: Ministry of Shipping

In pursuance of ‘Make in India’ policy of the Government of India, Ministry of Shipping has reviewed the ROFR (Right of First Refusal) licensing conditions for chartering of vessels/Ships through tender process for all types of requirements. In a major boost to shipbuilding in India, 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.
“To boost shipbuilding activities in India, the Ministry of Shipping has amended Right of First Refusal (ROFR) licensing conditions. Now, it has been decided that for any kind of charter of a vessel undertaken through a tender process, the first priority for RoFR would be given to Indian built, Indian flagged and Indian owned vessels,” Shipping Minister Mandaviya.
The second priority will be given to foreign built, Indian flagged and Indian-owned vessels while the third priority will be given to Indian built, foreign flagged and foreign-owned ships, he said and termed the policy change a “bold step” in line with Prime Minister Narendra Modi”s vision to promote the domestic industry.
“India mostly handles four types of EXIM cargo – crude, gas, coal and fertiliser. Government of India floats tenders for bringing these from foreign. So far Indian flags were given priority in tender irrespective of where the ship is built. Now we have changed that in addition to Indian flag it should be ‘Made in India’. Government PSUs used to give priority to Indian flags till now but now Indian make has also been included,” Mandaviya said.
The ministry has already disbursed an amount of Rs 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, Mandaviya said.