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It has come to the notice of this
Directorate that in most of the cases of movement of cargo on Contract of
Affreightment (COA) basis, work has been given to charterers of foreign
flag vessels based on an NOC from the Indian National Shipowners
Association . This is a reflection on inadequate participation by the
Indian tonnage in COA contracts. This issue has been deliberated at
length with members of INSA, charterers, oil companies and other
stakeholders in a meeting held on 18.6.2010 in light of
SD circular 1 of 2004.
It was felt that the present stipulation in para 4(v) of the said
circular which stipulates that the Indian shipowner participating in the
bid needs to own 1/3rd of the tonnage required stands in the
way of a larger participation by Indian shipwners in COA contracts.
Accordingly after careful consideration of the views , it has been decided
to amend the para. 4 (v) of the SD Circular No.1 of 2004 to read as
under:-
“4(v) In the absence of adequate number of Indian flag
vessels, chartering of foreign flag vessels by Indian shipowners shall be
permitted upto 5/6 th of the total requirement of the quantity of the
contract. In case , Indian shipowners do not have 1/6th (one
sixth) of tonnage required, they will not be entitled to exercise the
“right of first refusal".
Sd/-
(V. Rajendran)
Deputy Director General of ShippingI |
