India Wants 400 Percent More Ships

By Wendy Laursen 12-22-2014 06:02:46

India’s shipping minister has said that he wants to boost the country’s home fleet by a massive 400 percent.

In a written statement to parliament, Pon Radhakrishnan said: “The Maritime Agenda 2010-2020 has set an ambitious target of achieving 43m gross owned and controlled tonnage under Indian flag by the year 2020 so as to increase India’s share in total freight.”

He did not indicate how this will be achieved, but earlier this year, the Indian government announced a new shipping category that will have priority over foreign flag vessels in the country’s coastal shipping sector.

The new category “Indian controlled tonnage” enables Indian shipowners to take advantage of low cost foreign flags. After Indian flagged vessels, this new category will have the right of first refusal of cargo over non-Indian ships. The policy change is expected to help local lines increase their share of the coastal trade market which is currently less than 10 percent.

At least 50 percent of the crew, both officers and ratings, must be Indian, and the ship should also be used for training cadets. Additionally, the tonnage acquired under the new category cannot exceed a company’s Indian flag vessels. Shipowners must maintain their Indian tonnage at the level it was at April 1, 2014.