Invitation for Comments to the email addresses nebu.oommen@gov.in and sd-dgs@nic.in . on the Draft DGS Order Regarding Revised Age Norms and Sustainability Indexing for Ships

t{ qICfl (r{-6R/ GOVERNMENT OF INDIA qrfl qfrr_Eq o?r'( ffi{qrt {ilFlq WATERWAYS DIRECTORATE OFS , MUMBAI F.No. L6-L7 }LL /5 /2022-SD-DGS Date:27 .05.2025 To All Stakeholders Subiect: Invitation for Comments. on the Draft DGS Order Regarding Revised Age Norms and Sustainability Indexing for Ships Dear Sir/Madam, The Directorate General of Shipping had previously issued DGS Order No. 06 of 2023 dated 24.02.2023, along with Corrigendum I dated 24.06.2023, which specified the age norms for vessels. In response to representations received from various stakeholders requesting a review ofthe Order- particularlywith regard to exemptions for specific categories of vessels due to_factors such as design complexity, construction cost and availability, and financial constraints of certain owners, as well as inputs from the IIM Indore study, a revised draft Order has been prepared and is now open for stakeholder consultation. You are kindly requested to submit your comments through your respective industry associations to ensure a consolidated response and to avoid duplication of similar representations. Please submit your comments in the tabular format provided in Annexure I to the email addresses nebu.oommen@gov.in and sd-dgs@nic.in no laterthan 2Sth lune 2025.The draft Order is enclosed as Annexure II N [Nebu Oommen) "f Ship Surveyor-cum-DDG [Tech) Encl.:- Annexure I - Format for Submission of Comments Sl No. Clause Number (Draft Comments/Remarks Suggested OrderJ Amendment fif any) L 2 3 Annexure II - Draft Order fEnclosed) H efi {Hn, fizr RBr, cTr{ f}im. *qH, 6tgt'tr-d ts, 6lg{q, t(xd) 5g{- 4aao4z gth Floor, BETA Building, l-Think Techno Campus, Kanjur Village Road, Kanjurmarg (E), Mumbai-400042 *qnet No... +91-22-2sts zodoytz:ts *ffirto*., +s1-22-2s7s zo2gtzs. {-tccmait: dgshlp-dgs@ni&in aq{r{eMebsite: www.dgshipping.gov'inDRAFT FOR STAKEHOLDER CONSULTATION F. No. 16-17011/5/2022-SD-DGS Dated: 27.05.2025 Draft Amendment Order to DGS Order No. 06 of 2023 (as amended) for stakeholder consultation Sub: Age Norms and other Qualitative Parameters for Registration/operation of Vessels under Indian flag and, the foreign flag vessels required to apply for Licence under Sec 406 & 407 of The Merchant Shipping Act 1958. Whereas, considering the objective of the Merchant Shipping Act, 1958, which is to foster the development and ensure efficient maintenance of Indian mercantile marine in a manner best suited to serve the national interests, DGS Order 06 of 2023 dated 24.02.2023 and its Corrigendum I dated 24.06.2023 was issued. 2. Whereas, the quality tonnage is paramount for safe and secure expansion of the maritime sector and to achieve sustainability in ocean governance. The safety of life at sea and ships depends on the quality of tonnage registered under the flag of a country. The registration, certification to ensure safety, pollution prevention and security of Indian ships are means to achieve the objective of the Merchant Shipping Act, 1958. 3. Whereas the average age of the world fleet is on the declining trend. However, the average age of the Indian tonnage is on the increasing trend over the years and there is a demanding need to modernise the Indian fleet. The IMO has adopted a strategy for the reduction of Green House Gas and to achieve the targets defined by IMO, the vessel needs to be transformed to alternate fuel ships and age norms will assist in ensuring the gradual phasing out of fossil fuel ships and ushering of alternate/low carbon energy efficient ships. 4. Whereas, the existing guidelines stipulate that no prior technical clearance is required for the acquisition of vessels below twenty five years of age and would be required for vessels exceeding twenty five years of age. 5. Whereas, there is a need to create a level playing field for Indian ships by applying the requirements for quality tonnage over the foreign flag vessels also, which are required to apply for licence under Sec 406 & 407 of the Merchant Shipping Act 1958. 6. Whereas, several representations were received from the stakeholders to review the application of this order or to exempt certain category of vessels due to their complexity, cost of construction and unavailability. Representations were received indicating that the financial scenario of certain owners make it difficult to plan for a replacement vessel at this stage. 7. Whereas, the Directorate appointed IIM Indore as an independent agency for undertaking a study on the subject incorporating the global fleet scenario, Indian context, effect of age on safety, pollution prevention and performance, IMO regulations and its effect on aging vessels, the socio-economic effect considering the forthcoming GHG norms etc and submit a report to the Directorate. 8. Whereas, the IIM Indore report, based on their detailed study supported fully the entry age criteria towards the fleet modernization. The report further recommended certain criteria Page 1 of 14while considering the exit age such as dispensation for certain specialized and complex vessels of higher cost and less availability, granting further time period towards replacement planning due to economic impact and market shortage of vessels, imposing certain regulatory criteria based on IMO goals for exit instead of only age etc,. 9. Whereas, a draft of this Order was published on 27.05.2025 for the stakeholder’s consultation and the matter was further discussed extensively with Indian Ship-owners Associations such as INSA and ICCSA, comments of stakeholders have been taken. Further, meetings were held on …………………… on the subject matter; comments and suggestions from the stakeholders were considered on its merit, towards the culmination of the Order dated …….. 10. Whereas, this order shall be applicable to all the Indian and foreign flag vessels required to be licenced under Sec 406 & 407 of the MS Act 1958. Accordingly, this order shall also be applicable to vessels granted exemption from licencing under sec 406 & 407 of the Act and operating on coastal trade of India. 11. Whereas, this order (except Sustainability Indexing of Ships (SIS) at para 19) shall not be applicable to Passenger Vessels, FSRU, FPSO, Highly Specialized vessels (inter alia, Heavy Lift Installation Barge, crane barge, Pipe laying vessel, cable laying vessel, Research Vessel and Floating Docks), Dredgers, DP2 Diving Support Vessels, DP2 Well Stimulation Vessels and Drilling/Production units certified under MODU/SPS Code, as applicable. However, such vessels shall meet the Sustainability Indexing of Ships mentioned at para 19 for its continuation under Indian registry by the same due date applicable to other vessels that is 31.03.2028. 12. Whereas, the age of the vessel for the purpose of this Order, shall be computed from the "Date of Delivery" as mentioned in the Cargo Ship Safety Construction Certificate or any other Statutory Certificate issued under IMO Convention/Code. 13. Now therefore, in accordance with Section 406, 407 & 456 of the Merchant Shipping Act 1958, read with the notification S.O. No. 3144 dated 17.12.1960 and to meet the objective set out in the preamble of the said Act to ensure efficient maintenance of Indian mercantile marine and to promote acquisition of quality tonnage and enhance the safety of life at sea, the Directorate General of Shipping specifies the following requirements; Sl. No. Type of Application Ships (1) (2) (3) 13.1. Ships for The vessels of type as specified in Column A of the registration/ope Annexure-I to this Order, shall comply with the ration under the requirements stipulated in said Annexure, as made Indian flag. applicable therein. Indian vessels shall meet SIS as at para 19. 13.2. Ships acquired The age and other qualitative parameters, as specified in under Indian the Annexure-I shall also apply to vessels of similar kind Controlled Page 2 of 14Tonnage: acquired under ‘Indian Controlled Tonnage’ regime (put in place vide DGS order 10 of 2014 dated 23.07.2014) carrying coastal cargo or providing services within the Exclusive Economic Zone of India. SIS as at para 19 shall not be applicable. 13.3 Foreign Flag The age and other qualitative parameters, as specified in Ships: the said Annexure-I shall also apply to all foreign flag vessels of similar kind requiring license under Sec 406 and 407 of M S Act 1958, for operating within the Exclusive Economic Zone of India, whether chartered by an Indian entity or otherwise. In such cases the maximum age of the vessel shall be determined as on the date of commencement of service or cargo carriage, as the case may be. Foreign Flag vessels exceeding the entry age shall not be considered for issuance of license. SIS as at para 19 shall not be applicable. 14. The Director General of Shipping reserves the right to dispense with any requirement of this Order on a case-to-case basis, after considering inputs from INSA, ICCSA or any other organisation, as may be deemed appropriate in the prevailing circumstances, in the public interest. 15. The requirement specified under this order shall come into force from the date of issue of this Order and accordingly amends the conditions indicated in the previous orders in this regard. 16. For the purpose of application of this Order, an ‘Existing Vessel’ means a vessel already registered under the Indian Flag on or before the date of issuance of this Order. Vessels acquired/to be acquired under the Indian Control Tonnage regime would also be treated in the same line with the Indian Flag vessel. 17. The ‘Existing Vessels’ regardless of their age on the date of issuance of this Order, affected by the maximum age prescribed in the Order, shall be allowed to operate until 31.03.2028. Further operation is subject to compliance to Sustainability Indexing of Ships as indicate at para 19. 18. Foreign flagged vessels requiring licence under Sec 406 & 407 of the M S Act 1958 shall also be complying with the qualitative parameters as per Annexure I of this order. 19. The criteria permitting extended operation of existing vessels, shall be based on Sustainability Indexing is as below, which shall be duly certified by vessel’s class society. A detailed order explaining the implementation plan for all the existing Indian vessels irrespective of vessel nearing the exit age will be issued separately. Page 3 of 14Sustainability Indexing of Ships (SIS) for Age Norms (DGS Order 6 of 2023) S.No. Criterion Threshold / Progressive Scoring Maximum Requirement Methodology Points CO₂ Emission  Vessels rated under  CII A: 15 pts; B:10; C: 5; Reduction IMO CII must D: 3; E: 0. maintain or improve rating annually.  Non-CII: 1 pt per 1% reduction of emissions.  Non-CII vessels to (max 15). 1 15 show minimum % CO₂ reduction per  Propulsion- gCO2/ton- 100 hours of main mile; Auxiliaries- engine operation gCO2/ton-hour using DCS or equivalent. EEXI Compliance Compliance with IMO  Fully compliant: 10; 2 EEXI standards for  Partial compliance: 5. 10 existing ships Shore Power OPS-ready for stays >6  Certified OPS: 10; 3 Readiness (OPS) hrs at eligible Indian ports  Technically ready but 10 uncertified: 5. Biofuel / Low-  Biofuel: B10 to B40 or  Biofuel- B10: 3; B20: 5; Carbon Fuel equivalent B30:7; B40 +: 10; Integration  LNG: Methane Slip-  LNG: Methane Slip- <0.2%-3%. <0.2%-10; <1%-7; <3%-5; 4 25 Any DFE with MS >3%-3.  ZNZ Fuels (verified near-zero LCA GHG)  ZNZ Fuel -25 pts (verified near-zero LCA GHG) or pro-rata on part use. Energy E(cid:431)iciency Use of verified devices 2 points per verified device 5 Devices (VFDs, boss cap fins, (max 5 devices) 10 silicone coatings, etc.) NOx and PM Tier II minimum; Tier III Tier III: 10; Tier II: 5; Below Tier 6 Emissions for ECAs/green corridors II: 0 10 Compliance PSC & FSI  Nil deficiency  Nil Deficiency-10 Pts Performance  Nil detentions in 3  Nil Detention under PSC Benchmark years or FSI in previous 3 7 15 calendar years – 5 Pts. (Latest of the PSC or FSI reports as the case may be) Page 4 of 14Detention under  Every Detention under PSC / FSI PSC - 15 negative points and additional 2 points for each detainable deficiency reported on the ship (Max-(-25)). 8  Every Detention under (-25) FSI-10 negative points and additional 1 points for each detainable deficiency reported on the ship (Max-(-15)). Condition of Class Every Condition of class Every CoC imposed/extended imposed/extended on every occasion will carry a 9 (-10) negative score of 3 points with a maximum of (-10) points. Major NC in SMC Every Major NC raised during Every Major NC raised during audit SMC SMC audit will carry a Negative 10 score of 5 points with a (-10) maximum of (-10) points. Major NC in DOC Every Major NC raised during Every Major NC raised during Audit DOC DOC audit of a company will 11 carry a Negative score of 5 (-10) points on every ship under the DOC for a certain Ship Type. Casualty reporting Serious casualty and other Every serious casualty will carry than serious Casualty negative 10 score and any reported casualty other than serious 12 (-10) casualty will carry a negative score of 5 points with a maximum of (-10) points. Green Ship Commitment to recycle  Firm commitment of Recycling at HKC-compliant yard Recycling within 3yrs: 10 13 pts; 10 Commitment with indicative EoL  General commitment: 5 timeline pts. Condition-Based One recognized Best of one selected: Rating structural, safety, or  CAP 1: 10; CAP 2: 7; CAP (CAP/RightShip/O vetting score to be 3: 4; VID/IRS submitted Equivalent)  RightShip Safety Score : ≥4.0: 10; 3.5–3.9: 5; <3.5: 14 10 0;  RightShip Green Rating: A: 10; B: 7; C: 4; D or below: 0; Page 5 of 14 OVID ≥90%: 10; 80–89%: 7; 70–79%: 5; <70%: 0;  Equivalent Rating: to be graded on similar scale Optional Additional rating if Same scale as above; only Supplementary operator chooses to applicable if second vetting 15 Global Rating (if provide two of the above score is voluntarily submitted 5 (bonus) more than one available) Additional Installation of key  BWT System: 3 pts; Environmental MARPOL/IMO-compliant  SCR: 3 pts; Protection environmental systems  EG Scrubber: 2 pts; 16 Equipment  STP: 1 pt; 10  15ppm OWS: 1 pt (Max: 10 pts) Year on year Improvement of 5 points or Add 1 point for every 5points 17 substantial more in SIS score v/s improvement subject to a max 5 (bonus) improvement previous year. of 5 points. Note: (1) The total possible score is 125 points (without optional bonus). (2) Any violation reported including non-payment of crew wages may warrant additional negative scores, as decided by the Competent authority concerned. Eligibility Thresholds for Extension from Age norms Score Rating Age norms Relaxation ≥100 points A May continue to operate irrespective of age, calculated on Calendar Year basis. 90–99 points B Eligible for 5yr conditional extension 80–89 points C Eligible for 3yr conditional extension to demonstrate improvement to higher score. 65-80 points D One-year conditional extension to demonstrate improvement to higher score and not eligible for any further extension from cut-o(cid:431) age, if it fails to improve. < 65 points E No extension beyond 31st March 2028. Note: If a ship fails to maintain the Rating Score in one particular year, it falls to the lower grade forthwith and should demonstrate continuous higher score for two consecutive years for upgradation of rating. (Shyam Jagannathan) Page 6 of 14Director General of Shipping and Additional Secretary to the Government of India To, 1. All stakeholders/Ship-owners/Charterers/Shippers/All Indian Shipping Companies through the official website of the DGS, GoI. 2. INSA/ICSSA/FOSMA/MASSA. 3. Indian Ports Association. 4. Indian Private Ports and Terminals Association. Copy also forwarded for kind information to the: The Secretary to the Govt. of India, Ministry of Ports, Shipping and Waterways, GoI, Transport Bhawan, 1, Sansad marg. New Delhi-110001. Page 7 of 14“Annexure -I of the DGS Order …. of 2025” COMPLIANCE REQUIREMENT Age Range Entry into the Flag Remarks Conclusion - New vessel or 2nd Existing vessels hand vessel A B C D E 1. OIL TANKERS When below 15 Provided, vessel is No additional condition. years of age Classed with an IACS 1. Oil Tankers (2nd Member. hand) of 20 years and above age cannot be acquired. Provided, Must obtain; (i) vessel is Classed with (i) CAP 1 rating for Hull and minimum CAP 2 rating 2. Withdrawal of an IACS Member, and for Machinery and Cargo Systems from an RO of the GTL for all tankers of When between 15 (ii) CAP 1 rating for Hull GoI, at every dry-docking. 25 years of age and and 20 years and CAP 2 for Machinery (CAP ratings to be obtained from an RO of the GoI, Withdrawal of GTL in case above. & cargo systems, to be to be obtained not later than the next Drydock of non-compliance with obtained not later than the Survey and maintained at every dry-docking conditions in Column C 3. The above next Drydock Survey. thereafter) Or remarks 1 and 2 is Upon vessel attaining applicable for 25 years, whichever is RSV/ICV also. earlier. When, 20 to 25 years of age or not permitted Same as Above. 4. Further operation above. beyond 25 years of the vessel is subject to its compliance with Para Page 8 of 1417 and 19, above 2. BULK CARRIER/GENERAL CARGO VESSELS (Other than Exclusive Container Vessel) When below Provided, vessel is No additional condition. 1. Bulker/GC vessels 15 years of age Classed with an IACS (2nd hand) of 20 years Member. and above age cannot be acquired. When between 15 (i) Rightship Inspection (i) Rightship Inspection or an evaluation by an RO Withdrawal of GTL in 2. Withdrawal of GTL and 20 years or an evaluation by an RO under an equivalent rating methodology developed case of non-compliance for all vessels of age under equivalent rating by the DGS, to be obtained within one year from the with conditions in Column 25 years and above. methodology developed date of this order. C by the DGS, to be Or 3. No relaxation for obtained within 6 months Upon vessel attaining 25 Mini Bulk Carrier, of registering the vessel. RSV, special type years, whichever is earlier. vessels such as Ro-Ro When 20 to 25 not permitted Same as above. etc. Years of age or 4. Minimum Rightship Safety Score of 3 to be above obtained and maintained. 5. Further operation beyond 25 years of the vessel is subject to its compliance with Para 17 and 19, above 3. OFFSHORE FLEET (Other than those addressed under this Order) When below 15 Provided, vessel is years of age Classed with an IACS No additional condition. Member. Page 9 of 14Provided, 1. No 2nd hand When between 15 (i) vessel is Classed (i) The OVID inspection or an evaluation by an RO acquisition after and 20 years with an IACS Member, under an equivalent rating methodology developed attaining and by the DGS, to be completed within one year from Withdrawal of GTL in case 20 years of age. of non-compliance with (ii) OVID inspection or the date of the order, and once every year conditions in Column C an evaluation by an RO thereafter. 2. Except DP2 for Or under equivalent rating all vessels, Upon vessel attaining 25 methodology developed Withdrawal of GTL years, whichever is earlier. by the DGS, to be upon attaining 25 (except for vessels fitted obtained within 6 years of age. with the DP2 system). months of registry of the vessel. 3. Withdrawal of GTL for DP-2 vessels When between 20 Not Permitted. Same as above. attaining 30 years of to 25 Years age. 4. Further Under this category, Only operation beyond 25 / When between 25 Not Permitted. Same as above. DP 2 vessels are permitted 30 years of the vessel to 30 Years to operate beyond 25 years is subject to its of age and up to 30 years. compliance with Para 17 and 19, above 4. SPECIALISED VESSELS (Diving Support, Geo-technical, Pipe laying, Seismic Survey, Well Simulation, Accommodation Barge) (Note: Applicable for vessels other than those excluded through para 11) When below 15 Provided, vessel is Years of age Classed with an IACS No additional condition Member. Page 10 of 14When between 15 Provided, and 20 years (i) vessel is Classed (i) OVID inspection or an evaluation by an RO under Withdrawal of GTL in case with an IACS Member, an equivalent rating methodology developed by the of non-compliance with 1. No 2nd hand and DGS within one year of the date of issue of the conditions in Column C acquisition after circular, and every year thereafter. Or attaining 20 years (ii) OVID inspection or Upon vessel attaining of age. an evaluation by an RO 30 years, whichever is 2. Further operation under equivalent rating earlier. beyond 30 years methodology developed of the vessel is by the DGS, to be subject to its obtained within 6 compliance with months of registry of the Para 17 and 19, vessel. above When between 20 not permitted In addition to the above, to 30 years (i) Annual FSI/GI is to be carried out. 5. DEDICATED CONTAINER VESSELS AND DEDICATED CEMENT CARRIERS Up to 20 Provided, vessel is No additional condition. years Classed with an IACS Member. 1. No 2nd hand Page 11 of 14Withdrawal of GTL upon acquisition after completion of 30 days in attaining 20 case of non-compliance years of age. 20 to 30 years Not Permitted. (i) Annual FSI as per rules. with conditions in Column 2. Further operation C of the vessel Or beyond 30 years Upon vessel attaining is subject to its 30 years, whichever is compliance with earlier. Para 17 and 19, above 6. GAS/CHEMICAL CARRIERS Provided, vessel is When below 20 Classed with an IACS No additional condition. years of age Member. Provided; Must obtain; Withdrawal of GTL upon When between 20 (i) vessel is classed with (i) CAP 1 rating for Hull and CAP 2 for Machinery & completion of and 25 years an IACS member, and cargo systems from an RO of the GoI. 30 days in case of non- 1. No 2nd hand (ii)CAP 1 rating for (CAP ratings as above to be obtained not later than compliance with conditions acquisition after Hull and CAP 2 for next Drydock Survey., and at every dry-docking in Column C machinery and cargo thereafter.) Or attaining 25 years of age. systems from an IACS Upon vessel attaining 30 2. Further operation member, to be obtained years, whichever is earlier. beyond 30 years of not later than next the vessel is subject Drydock Survey. to its compliance with Para 17 and 19, 25 to 30 years Not Permitted. Same as above. above 7. HARBOUR TUGS Provided, vessel is up to 20 years Classed with an IACS No additional condition. Member. Page 12 of 14Not Permitted. Regular Class surveys, DD inspection. 1. Harbour tug 20 to 25 years means, tugs operating within harbour/port. 2. No 2nd hand Withdrawal of GTL upon acquisition after 25 to 30 years Not Permitted. Annual FSI. completion of 30 days in attaining 20 years of case of non-compliance age. with conditions in Column 3. Further operation C beyond 30 years of Or the vessel is subject Upon vessel attaining 30 to its compliance years of age, whichever is with Para 17 and 19, earlier. above 8. AHT’s & TUGS INVOLVED IN LONG TOW up to 20 years Provided, vessel is No additional condition. 1.No 2nd hand Classed with an IACS acquisition after Member. attaining 20 years of Withdrawal of GTL upon age. (i) TIQ inspection or an evaluation by an RO under completion of 2. GTL to be 20 to 25 years Not Permitted. equivalent rating methodology developed by the 30 days in case of non- withdrawn for all DGS, to be completed within one year from the date compliance with conditions existing AHT’s/Tow of the Order, and once every year thereafter. in Column C tugs of age above 25 Or years. Upon vessel attaining 25 3. Further operation years of age, whichever is beyond 25 years of earlier. the vessel is subject to its compliance with Para 17 and 19, above 9. NON-SELF-PROPELLED OCEAN-GOING CARGO CARRYING BARGES (Dumb Barges) Page 13 of 14up to 20 years Provided, vessel is No additional condition. Classed with an IACS Member. 20 to 25 years of Not Permitted. (i) BIQ inspection or an evaluation by an RO under Withdrawal of GTL of Further operation age equivalent rating methodology developed by the vessel upon the vessel beyond 25 years of DGS, to be completed within one year from the date attaining 25 years of age. the vessel is subject of the Order, and once every year thereafter. to additional surveys equivalent to Renewal survey, every 2.5years by the RO 10. FOR VESSELS, OTHER THAN ABOVE (except those exempted at para 11) up to 20 years Provided, vessel is No additional condition. Classed with an IACS Member. 20 to 25 years Not Permitted. (i) Annual Class and FSI. Withdrawal of GTL of Further operation of age vessel upon the vessel beyond 25 years of attaining 25 years of age. the vessel is subject to its compliance with Para 17 and 19, above Page 14 of 14