Advisory on the age norms for vessels to be engaged through tenders for Indian cargo by Indian public sector oil marketing companies as well as private companies - reg.

dnqt.@ffi1!\\|l]o|j[fll\(; +F46almrD['R 5ft:4{'r4.rikii 6r{] d (9s) i rsn Rn1R.(\\r) a1 o0o'?ri'\3\ {od: r No. s0 12lMi3cl4v14 Shiooing Development C ircular No 06 of20l6 sub,r Advkory on lhe as€ norms fo. vessels to be €ngaged throlsh tendeb for rndian re'' .aEo bv lndian oublh seclot oilmarkdiru comoanies aswella5 Drivare.omDanies _ rl har been b.oushtro the atlention of this oll ce that certa n ch te.de6 inviring offeu for ve$ek with restri.lion on a3e with refere^.e to rhe ivpc ol ves. that.an be offered/ensagod/dep oved thor.under. Thi5 har been noted padru 3rv et in the tendets for rhe supp y of ve$eklortho.aiiiaee of PoL products, LPG 2. Ihe Oirectorate Genera 01 Shippins tDcsl, Govl. of Indn, fa.iltates and .esulatesrhe merchant shipping indunrywth regard nter aLa to the operat ons ot ndia^ lhg rhlps in termi ol the slatutory requiremena under the Mer.hant 5h pp ns Act,19s3, assmended. The nd an I ag ship owne6 represented bvrho I bod Shipowne6 Asociation {lNsAlhave avefted that an immedate impositon dl an age norm Ior Indian fag ships woud cause mmense d ifi.ulrios to nd an 5hipping compane5 tr u f€a.ed that imposiuon oJ 5u.h aS.norms coud ead to severallid an fagve$e s ta'i^g trie prospect of immnent unemployment &.onsequenlia v severev erode then fna.cia vardiiy, potent ally leadingto the r poslb e shutte ng down 3. Two meet were held,.o^t.xruallyw th the r€presentat ves ol the oi indu5rrv Jhdlanlas welar ot^ 3 ss h p owneG lhdlanlto drcu$ this is5ue holirt.alv n the or"e or o OG shppinC, on 13 Os 16& 24.03.16 Ar th.se meet ngs the Indian companer ndnated that the age norms were beins pre(r bed not for thc purpose of excludinB Lndan lag venek, butas per the ase reslrictions mposed rher.on bv over the ol.arSo may be Loaded lt has ludher been held that t i necestarv thar ndian rlas ve$es off€red to them should meetlhe qua irative paramere6 o avdid any d rupridn rhat may be.aused ro the suppv.hain ot the India^ compan'e5 The arer have also apprised thal thoy intendtoformarontcommitreeaon8wrhth'a zlndia^ f ae ship owneG for identfyns a^d in talLy agreenE o^ q a!isi the evauarion of the operationa performance of ndan flac ve*es cantraded to 4 Lr is the inlenrion of this oiiice, ai the lndian f ag merchanl shippi^C indunry marnima adminnrario^ of India that v.ses operated u^der the ndan ra3 meet the hghest nandards ot safely and op.rarion equva a^t to anY lnrerndiona 5tandard5 This ofice therelore.pp.eciates lhe need ol the L^dan ollcompanies to be able to obran & ope.ate safe sh ps. At the iad meeting held on 240316, the o indnared that a suitabe advisory be hsued to them bv thB ofice, reile'ating rhe issuej thi.ould be related to the oper:t oniofhieh qua itvand $fe sh p5 under the IndLanfas 5 n view afrhe foregoinS facts, the folowinc adv sorv k irsued, contexlua rvl !, 1d Jn !"re5 !". op.ior".. lhe I d"1 d dP d,'o'P|o"{ as ons a. they are n po$.$ion of allvaid natuto under the provsioni of the Me(hant shppins a.t, 1953 & applLcabe to nr, it mav not be approprate hir rhe operauonr of Indian veiol on the ground ol a3e 5.2 l^dan oi .ompanies need ro consde. tho precedrns egal proporition. Therefore, it may not be appropriate for anv a€e norm ro b. imposed, a5 th. same nay u^nocessarlv re5tri.t a. fag ve*es wh.h ^d meet lhe natulory requnements underthe aforesaid centalAd pa$ed bv the Parlamenl Such a paradlgm shilr wiL jolt the conldence ol the ending banks /financia i^nnutions lrsl o^ rhe mdlime difficult ma*et situation and put s.vere stran on rhe cash 1lo$ and pos blo equtv conlributons of Indian ship owne6 Further, trie value or such a$0ts may aso de.eerate drop down wilhout justitiabl. reasons, cr'burdbeo \ d.dto ^C- oge o l 'r '".i.ed'r 5.3 The oi companes are at Llbertv to set and devse su.h quartative paramere6 as they deem fir, in consultaton with lhe ndan lae merchani sh pp ne.e$ary norder toensurerhP highen nandafds ^Sindustryandaro ol operaton and safety n lha and toanalw ^ternatonal devise such parameteE n discuslon with th. Indian ndu5try or in any olher tair a.d equitab. ma.ner thar th.v deem iil, so lhatthebonaiidecon.ernsolthelatler&theinduslrvaretakenonboard 5.4 O compaiier may insiirute a iont m<ha^isn with the Lndian me(hanl shippinS industry lo creare a dalaba5e ot robust paramere^ and operallonaleffi.en.yof suchvoses.harteredtothafr Thsw len3ur€a,t, ralonal a$e$ment of rhe perfo.mance a5 wel as ease the opostoi or penahies ior ves5ek which f3l to meet the prescribed pedoman.e standards f or the vessek 5.5 The olcompanies are iiee to impo5e su.h age .ettrdions a3 mav be.om€ necessan/ in ordor to meetthe requnement ofthe oveGeas loadi.g t€rminal(s)wher. suchve$el5 hay havetocall However, thir mav be done judciousy in a manner so as io a d the emplovfrem of the Indan lae 5 6. frh€ oilind6tywnhes lo npose a8e norms inlhe lonsrdrm, such ac€ norms maY be inposed aiter p.ovidnS the Ind an mer.hant sh pping industry wrh an adequ!te & r€aronable lsav abour 5 vea6l notice ot 5u.h young€r lonnase. lt will be appropriate il ruch de.i3ions may be taken in due consulratio^ & delberalion wnh the Indan shippns ndunry whkh may be provided a reasonable pefiod for the purpose, so ar ro enable lho laiter a la r & lun dppodun lY lor the ren.wal ofthen old tonnase and for fac litatinslhe a.qu silion ol lonnaCe w thin the age that meels the requnements ofthe oi industrv ftis s an advisory and it har been ssued to encou.a€e the harmonious & pe6pecuve Srowth & developm€nt of the Indlan fh3 tonnage to e^able it to increase a frarker share, a^d.oncutrently en5ure that lhe Indan tdn^a3€ meets wth the qualirative & operaliona requirement and parameteE ser by the ol majo6 and chartereG Th s has been irsued w th the approva!ofrhe 0irector Ge^eralof Shippins & Additio^a Secreia.yro the 6ovt. ot ndla. Depury D re(torGenerr olSh pp'ns lsDl 'n{ha,ge 1. All Indi!noil malk€lingcompan'e5 2. Ail^dianShipowninscompanies throush Indian Nariona Ship owne/r A$oclalion & cc shipping As50.iation, Mumbai.