**Executive Summary**
Shipping Development Circular No. 07 of 2016, issued on December 2, 2016, provides guidelines for the issuance of licenses to passenger vessels in the Indian coastal waters. The circular outlines requirements for foreign flag passenger vessels operating in India or being acquired for registration, referencing sections 406 & 407 of the MS Act, 1958. It emphasizes maritime safety, security, and pollution prevention standards.
**Key Points / Main Content**
*Foreign Flag Vessel Operation Requirements*
* Foreign flag vessels operating in Indian waters under a DGS license must be classed with a Maritime Classification Society approved by the Ministry of Shipping.
* Vessels must possess valid certificates under relevant IMO Conventions/Codes (e.g., HSC Code, SOLAS, MARPOL).
* Details of any exemptions/dispensations/restrictions from previous flags must be furnished for scrutiny. Exemptions must align with Convention provisions and the nature of operation.
* Operators must submit safety plans, stability documentation, and a technical assessment report detailing compliance with Conventions and the Indian Merchant Shipping Act, 1958.
* These vessels are subject to the relevant provisions of the Merchant Shipping Act, 1958.
* *Indian Shipping Companies Acquiring Foreign Vessels*
* The provisions apply mutatis mutandis to Indian shipping companies acquiring foreign flag passenger vessels for flagging into India.
* *Chartered Vessels*
* Foreign flag vessels chartered under section 406/407 must comply with the Merchant Shipping (Regulation of Entry of Ships into Ports, Anchorages, and Offshore Facilities) Rules, 2012.
* Any ship chartered by an Indian or foreign entity requires a license for taking such ship to sea or for employing the vessel on the coasting trade of India
* All such vessels must be issued a certificate as per section 220 and 235 of the MS Act, 1958.
* *Inland Vessels*
* Vessels operating exclusively within notified inland vessel limits must comply with requirements prescribed by the inland vessels authority and be registered under the Inland Vessels Act, 1917.
**Impact Analysis**
**Stakeholder**: *Foreign Flag Passenger Vessel Operators*
*Impact*: Must comply with stringent classification, certification, and reporting requirements to operate in Indian waters.
*Action Required*: Ensure vessels are classed with an approved Maritime Classification Society, possess valid IMO certifications, and provide detailed documentation as specified.
**Stakeholder**: *Indian Shipping Companies Acquiring Foreign Vessels*
*Impact*: Subject to the same regulatory framework as foreign flag vessels when acquiring and flagging in such vessels to India.
*Action Required*: Ensure compliance with all provisions outlined in the circular, including classification, certification, and reporting requirements.
**Stakeholder**: *Entities Chartering Vessels*
*Impact*: Required to obtain necessary licenses for chartered vessels operating in Indian waters.
*Action Required*: Ensure the vessel chartered has all necessary licenses and certifications.
**Stakeholder**: *DGS, Government of India*
*Impact*: Has the authority to enforce these guidelines and ensure maritime safety, security, and pollution prevention.
*Action Required*: Administer the provisions of the circular and modify them as deemed necessary.
**Stakeholder**: *Mercantile Marine Department*
*Impact*: Responsible for issuing certificates to vessels under section 220 and 235 of the MS Act, 1958.
*Action Required*: Issue certificates to vessels as per the circular and ensure compliance.
Key Entities Referenced
Merchant Shipping Act, 1958: The primary legislation governing shipping in India, repeatedly referenced for its sections and amendments related to licensing and regulation.
Directorate General of Shipping (DGS): The national maritime administration responsible for administering the Merchant Shipping Act and issuing licenses to passenger vessels.
Sections 406 & 407 of the MS Act, 1958: Specific sections of the Merchant Shipping Act, repeatedly referenced as the legal basis for granting permissions/licenses to foreign flag passenger ships.
Indian coastal waters: The geographic area where the guidelines for issuing licenses to passenger vessels apply.
Ministry of Shipping: The government ministry overseeing the Directorate General of Shipping and maritime affairs.
Eiqq;I i(rn
qTKT TTC{T{ / GOVERNMENT OF INDIA
+fr cfua-6-{ {Trdrq / MtNtsrRY oF SHIPPING
i1-+qr rarR?srr,i-q / D r R EClo RAT E G E N E RA L o F s H I PP I N G
Lffir{. -22-9 t 2s7 s2o4o / t t2t 3 "G-dr RfurP s .* {ft-.{ I "l}li'l-A BI.TILDING*, 9'h t-LooR 'I'rh: 9l-22-257521110111213
ft1{: 022-25752029/35 qrq-FlaHt{:ttqq / t-'r'HINK TECl{No CAMI,trS l.'ar:022-25752029/J5
t-t r: dgship-dgs@nic.in {r-{r qrfl tsfc( / KAN.n rR MARG(EAS'I') E-nrail: dgship-dgs a. nit.in
&t: www.dgshipping.gov.in {q€o I N.runtu.\t - 4oo 042 \\'eh: rr un
F. No. SD-13/POL (5)/09 Vol.ll Dated: 02.12,2016
Shippinq Development Circular No. 07 of 2016
Whereas the objects of the Merchant Shipping IMS] Act, 1958, as amended, are inter-alia, to
foster the development of shipping and to ensure safe & efficient lndian mercantile marine in
a manner best suited to serve the lndian national interests.
2. Whereas the Directorate General of Shipping [DGS], Ministry of Shipping, Govt. of lndia
[Gol], is the designated National Maritime Administration of the country to, amongst other
things, administer the MS Act, 1958, as amended, as the facilitator and regulator of the
merchant shipping industry in lndia.
3. Whereas foreign flag passenger vessels are being deployed in the lndian waters for the
transportation of passengers between different ports in lndia, with licenses issued by DGS,
Govt. of lndia, under section 406 or 407 of the MS Act, L958, as amended.
4, Whereas, while permitting such foreign passenger vessels in the lndian waters, the DGS,
Gol has to ensure that minimum maritime safety, security and pollution prevention standards
prescribed for such vessels, and their passengers & crew by the lnternational Maritime
Organization [lMO: global shipping regulator] are followed.
5. Whereas passenger vessels under foreign flag are acquired for registration in lndia and such
vessels also need to comply with minimum such maritime safety, security & pollution
prevention requirements.
6. Now, therefore, the Director General of Shipping, Gol, in pursuance of the powers
conferred on him under sections 406 & 4O7 oI the MS Act, 1958, as amended, read with the
Ministry of Shipping, Govt. of lndia, New Delhi's S.O. No. 3144 dated L7.L2.6O, sets the
following conditions for the grant of permissions/ licenses to foreign flag passenger ships
under either of the said sections, i.e.406 or 4O7 of the M.S. Act 1958;
...21--2-
6.1.
Foreign flag passenger vessels intending to operate in the lndian coastal waters
under a license / permission of the DGS, Gol shall be required to be classed with a
Maritime Classification Society, duly approved as a Recognized Organization by the
Ministry of Shipping, DGS, Gol.
6.2. Such passenger vessels should be in possession of valid certificates under the
provisions of the relevant IMO Conventions/Codes, as applicable, such as the High
Speed Craft [HSC] Code, SOLAS Convention, MARPOL Convention and any other
Convention/Code as may be applicable to the given types of such vessels.
6.3. Such vessels shall also be required to furnish the details of the
exemptions/d ispensations / conditions or restrictions imposed by the previous flag(s)
thereof for the operation of the vessels concerned, for scrutiny' Applicants may note
that an exemption(s) granted by the flag state of the vessel in accordance with the
Convention provisions consistent with the nature of its operation only will be
considered by this office for processing such an application. Further, foreign vessels
are not entitled to any exemption from the Convention requirements which are
otherwise not granted to an lndian flag vessel.
6.4. Operator(s) of such vessels, while applying for a license / permission shall
submit the safety plans / sub-divisional /stability / damage stability and other relevant
documentation, duly approved by the said classification society, recognised
organisation, for scrutiny. The operator concerned shall also submit a technical
assessment report detailing the status of compliances by such a vessel of the
applicable requirements of the Conventions and the lndian Merchant Shipping Act,
1958 and the rules made thereunder, as applicable, from any one of the Classification
Society, approved as a Recognized Organization by the Ministry of Shipping/DGS, Gol.
6.5. Such foreign vessels will further be subject to the relevant provisions of the
Merchant Shipping Act, 1958, for undertaking passenger operations between ports or
places in lndia.
6.6. The foregoing provisions will apply, mutatis mutandis, to situations when lndian
shipping companies acquire foreign flag passenger vessels for flagging into lndia, under
the said lndian Merchant Shipping Act, 1958, as amended.
7. Foreign flag vessels chartered under section 40614O7 ibid will have to comply with the
provisions of the Merchant Shipping (Regulation of Entry of Ships into Ports, Anchorages, and
Offshore Facilities) Rules, 2012.
8. The circular will apply to seagoing ships (as defined under section 3 (41) of the MS Act,
1958, as amended) fitted with mechanical means of propulsion, including those cases for
which a clearance is sought from the DGS, Gol from the maritime safety perspective.
2.l--3-
9. Under the provisions of section 4061407 of the MS Act, 1958, as amended, any ship
chartered by an lndian or foreign entity will require a license for taking such ship to sea from a
port or place within or outside lndia or for employing the vessel on the coasting trade of lndia.
This circular will apply to such a chartered vessel if such a license is to be issued by the DGS,
Gol. All such vessels will have to be issued with a certificate as per section 220 and 235 of the
MS Act, 1958, as amended, by the jurisdictional Mercantile Marine Department, under the
DGS, Gol.
10. vessels operating exclusively within the notified lv [inland vessels] limits need to comply
with the requirements prescribed by the lV authority concerned. Such a vessel should be
registered under the lnland Vessels Act, 1917, as amended. However, a foreign flag vessel
intending to operate exclusively within the inland water limits in lndia, without registration
under the said Act, and seeking a permission/license from the DGS, Gol will have to comply
with the requirements of this circular.
11.The foregoing measures have been put in place for ensuring safety & security of life at sea,
prevention of any untoward incident in the lndian waters, inter-alia, in public interest and
without pre.judice to the right of DGs, Gol, whatsoever, to alter/ modify any of the provisions
of this circular, going forward.
12. Thls circular issues with the approval of the Director General of Shipping & Secretary to
the Government of lndia.
(Adl+rFr6d,6ed)
Deputy Director General of Shipping-in-cha rge [SD]
To;
1. Allthe stakeholders concerned through DGS, Gol website.
2. All Classifications Societies [members of the IACS], recognized by the Govt. of lndia.
3. INSA/ICCSA/FOSMA/MASSA, Mumbai.
4. Andaman & Nicobar tA & Nl lslands/ Lakshadweep lslands IUnion Territories]
Ad ministrations.
Coov forwarded for an information to: The Secretary to the Govt. of lndia, Ministry of
Shipping, Transport Bhawan, 1, Parliament Street, New Delhi-110 001 [Attn.: Shri P.K
Sharma, Under Secreta ry (MG)1.