Foreign Flagged Non-Propelled Ships Must Take License to Operate In Coastal Trade
Foreign flag non-propelled vessels such as mobile offshore drilling units and accommodation barges will be permitted to work in India’s coastal trade but after taking a license from the country’s maritime regulator under a new Coastal Shipping law which is awaiting Parliament nod. The move is aimed at promoting competition and efficiency of the sector while at the same time bringing the non-propelled vessels also under the ambit of regulatory requirements on safety, security and pollution prevention. “Currently, there is no control over non-propelled vessels as they are not required to take a license from the maritime regulator to operate in India’s coastal trade,” said a government official. “We are plugging this gap,” he said. The need to bring non-propelled vessels also under the regulatory ambit follows the May 2021 sinking of an Indian registered accommodation barge off the coast of Mumbai after being hit by Cyclone Tauktae, in which 86 people died. The barge carrying 261 people was deployed by Afcons on its contract with Oil and Natural Gas Corporation Ltd. The regulation of coastal trade lacks uniformity, the official said. Non-mechanised vessels engaged in coastal trade are governed by the Coasting Vessels Act, 1838 which only deals with registration of such vessels. The measures pertaining to regulation, safety, security and pollution prevention of non-propelled vessels were left unaddressed, he said. The mechanised vessels on the other hand fall under the purview of the Merchant Shipping Act, 1958. The present regulatory framework under the Merchant Shipping Act requires Indian ships as well as ships chartered by Indian citizens and foreign vessels to obtain licence before taking ship to sea, including for coastal trade. “However, the licencing requirement for all vessels including Indian vessels and exclusion of foreign flag non-propelled vessels from the coasting trade has proven to be a hindrance to competition and efficiency of the sector. It is felt necessary to bring foreign flag non-propelled mobile offshore drilling units, accommodation barges, etc also within the purview of the regulatory requirements,” the official said. When the Coastal Shipping Bill is approved by Parliament and signed into law, foreign flagged non-propelled vessels can engage in coastal trade only after securing a license from the maritime regulator. However, for Indian flag non-propelled vessels, license is not required in line with the overall plan to free Indian flag ships from the requirement of securing a general trading license from the regulator for operating along the country’s coast. By making it mandatory for foreign flagged non-propelled vessels to take a license for operating in India’s coastal trade, the government is seeking to ensure that such vessels are compliant with safety certificates. “To secure a license to operate, the non-propelled vessels should be survey certified. This is positive for safety. All vessels, whether it is propelled or non-propelled, should be regulated. There was no issue with propelled ships. So, for non-propelled ships, if we incorporate safety features, it is good,” the official added
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