**Executive Summary**
This is Shipping Development Circular No. 01 of 2017, issued on August 7, 2017, by the Directorate General of Shipping, Ministry of Shipping, Government of India. It amends the guidelines for granting licenses to foreign flag vessels. This amendment is effective from the date of issue.
**Key Points / Main Content**
* **Amendment to SD Circular No. 02 of 2002:**
* Clause (f) is added to Sub-Para 4.4 of Paragraph 4.
* The added clause states, "The vessel needs to continue to be Indian flag vessel at all times from the date of opening of tender till the end of the contract period to avail the benefits of RoFR failing which the contract awarded to it shall be withdrawn".
* **Effective Date:** The amendment comes into force from the date of issue of the circular (07.08.2017).
* **Approval:** The circular is issued with the approval of the Director General of Shipping & Special Secretary to the Government of India.
**Impact Analysis**
**All India's stakeholders/All Charters/Shippers/All Indian Shipping Companies**
* **Impact:** They are affected by the change in the conditions for foreign flag vessels to be granted licenses.
* **Action Required:** They need to ensure that vessels remain Indian flag vessels from the date of tender opening until the end of the contract period to avail the benefits of RoFR.
**INSA/ICSSA/FOSMA/MASSA, Mumbai.**
* **Impact:** They need to be informed about the changes made.
* **Action Required:** Be aware of the recent changes in the SD circular.
Key Entities Referenced
Shipping Development Circular No. 02 of 2002: The original circular that this document amends, providing guidelines for granting licenses to foreign flag vessels.
Merchant Shipping Act, 1958: The primary legislation authorizing the Directorate General of Shipping to issue circulars related to shipping.
Directorate General of Shipping: The issuing authority responsible for regulating and promoting Indian shipping.
Ministry of Shipping: The government ministry responsible for the Directorate General of Shipping.
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F. No. SD-9/CHART(82)/97-V
Dated: 07.08.20L7
Sub.: Amendments to quidelines for erant of ticence to Foreien Flas vessels issued vide SD
The guidelines for grant of licence to Foreign Flag vessels were issued by the
Directorate vide SD Circular No. 02 of 2OO2 dated November, Og, 2OO2 [F. No.SD-
9/CHART(821197-lll under the provisions sub-section (3) of section 406 and sub-section (2)
of Section 4O7 of the Merchant Shipping Act, 195g.
2.
WHEREAS, a need has been felt to, review the aforesaid circular, keeping in view of
the GoWs policy of strengthening and promoting the lndian shipping in a competitive
framework.
3'
NOW THEREFORE, the Directorate General of Shipping in pursuance of the powers
conferred on him in respect of the provisions of Sub-Section (3) of Section 406 and sub-
section (2) of Section 4o7 of the Merchant Shipping, Act, 1958, makes the following
amendment to the said SD Circular No. 02 of 2002.
3'1.
ln the Sub Para 4.4 ol Paragraph 4 of the said circular clause (f) shall be added, as
follows;
(f) 'The vessel needs to continue to be lndian flag vessel at all times from the date of
opening of tender till the end of the contract period to avail the benefits of RoFR failing
which the contract awarded to it shall be withdrawr{,.
4.
The above amendment to the said circular will come into force from the date of
issue of this circular.
,W
5.
This issue with the approval of the Director General of Shipping & Special Secretary
to the Government of lndia.
Deputy Director General of Shipping-in-charge
[SD]
To,
L. All lndids stakeholders/All Charteres/Shippers/All tndian Shipping Companies,
through the officialwebsite of the DGS, Gol.
2.
INSA/ICSSA/FOSMA/MASSA, Mumbai.
1.
secretary to the Gol, Ministry of shipping, Transport Bhawan, New Delhi.
2.
Dcs/Additionat DGS/PO, MMD, Mumbai/Dy. NA/CS/CSS, Gol.
3.
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