Dated: 10th July, 2008
 

            Noting that seamless transition of goods from inland waters by River-Sea Crafts will integrate the sea segment of the supply chain and provide an additional means of  hinterland connectivity for transport of goods into the country; 

Recognizing that seamless integration of River-Sea Trade using Coastal Ships will play a major role in the growth of Indian economy and provide an alternative means of quick discharge and dispersal of cargo from mother ships at major ports and its carriage by the sea route to various ports along the sea board; 

Considering the reservations expressed by the Coastal Shipping Industry with regard to the prevailing Merchant Shipping legislation applicable to coastal ships which makes coastal shipping uneconomical due to high cost of construction and operation; 

Realizing that high construction and operating cost of ships is a major impediment for the expansion of coastal and inland shipping in India; 

Anticipating that reduction in the operation and construction cost of coastal vessels by defining a distinct river-sea vessel would encourage coastal shipping, inland water transport and trade as well as ship building and thus further the growth of the maritime sector. 

Further recognizing that construction and safety standards, which are currently applicable to coastal ships under the M.S. Rules can be moderated without affecting the safety of the ship in order to reduce the cost of ship’s construction and operation as also allow up-gradation of existing inland vessels for coastal operation; 

Now the Director General of Shipping, in exercise of the powers vested in her under the provisions of Section 456 of the M.S Act 1958, hereby exempts Indian ships  other than passenger vessels, oil tankers, and off shore support/supply vessels, operating along the Indian coast and within the territorial limits of India from the following provisions of the M. S. Act, 1958 as amended, and dispenses with the requirements to observe the M.S. Act provisions contained in the Sections listed here-to-below provided strict compliance is shown to the requirements and stipulations detailed in Annexes I to XI of this Notification. 

Sd/-
(Kiran Dhingra)
Director General of Shipping &
Ex-Officio Addl. Secretary to the Govt. of India

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