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The MS Act, 1958, vide Sub Section (3) of Section 406 and Sub-Section (2)
of Section 407 empowers the Director General of Shipping to grant license
to Foreign Flag Vessels subject to such conditions as may be specified by
him. The detailed guidelines for grant of license to Foreign Flag Vessels
were issued by the DG Shipping vide SD Circular
No. 2 of 2002 dated 8.11.2002 and other circulars as amended from
time to time. Among other things, these guidelines stipulate the
conditions for exercise of "Right of first Refusal" for Chartering of
vessels done through Tender Process for any type of requirements.
The Directorate has been
receiving requests for inclusion of certain categories of vessels for
exercising the Right of Refusal. This issue has been discussed with the
stakeholders, shipping industries and Indian National Ship-owners
Association (INSA). Based on the feedback and discussions, it is decided
that a Right of Refusal
will be exercised by the following two categories of vessels in that
sequence, in the event of the Right of First Refusal not getting exercised
by any bidder as per existing guidelines:
(1)
Indian citizens / Companies/ Co-operative Societies, having BBCD vessels,
failing which.
(2) Any
others owner or his agent offering Foreign Flag Vessel built in India
All shipping companies, exporters,
importers and agents may kindly take note of the change in the eligibility
criteria for exercising the right of refusal and amend their own
chartering terms, practices and instructions accordingly.
The above orders will come into force with immediate effect.
This issue with the
approval of the DG Shipping.
Sd/-
( V. Rajendran )
Dy. Director General of Shipping
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