The Hindu Business Line : Reviewed age norms to be extended to Indian ships

THE Directorate General of Shipping has decided to defer the date for implementing the guidelines for in-chartering of foreign flag tankers by Indian entities from September 1 to October 1.

A second circular will be issued to bring Indian ships also under the norms issued by the maritime regulator on June 11 imposing a ban on ageing foreign flag tankers from entering Indian waters. The guidelines on age norms concerning Indian vessels will, however, come into force only on April 1, 2004, top DG Shipping officials said.

Thus, instead of one circular, there will now be two - one dealing with in-chartering of foreign flag tankers and the other pertaining to Indian tankers. "This will remove the discrimination emanating from the original circular which banned only ageing foreign-flag tankers from calling at Indian ports. All the guidelines that were applicable to foreign tankers will now be applicable to Indian tankers also," the official said. The new circular will be issued in the next two days.

In the guidelines on Indian tankers, the DG (Shipping), Mr G.S. Sahni, is expected to exercise his discretion and give a one-time exemption to those Indian ships that are approaching 25 years (the internationally accepted cut-off period for the economic life of a vessel) from the mandatory Condition Assessment Programme 2 (CAP 2) rating.

For example, if an Indian tanker is 22 years when the guidelines come into force on April 1, 2004, it will have to get the CAP 2 rating to be allowed for trading. "But, getting the CAP 2 rating for a 22-year-old tanker will not only be very expensive, but after 3 years, it will have to be totally discarded on reaching 25 years. So, as a one-time exemption, the DG has agreed to waive the CAP 2 requirement for such Indian tankers," the official disclosed.

After the guidelines take effect on April 1 next year, the Indian owners will have to apply for permission from the DG to operate such tankers without having the CAP 2 rating for the remaining period till it reached 25 years.

"Since this will also amount to discrimination when compared with foreign tankers, it is being done discreetly on special request," the official said.

On reaching 25 years, such vessels will have to go for scrapping. They will not be allowed to operate along the coast or carry out trade in foreign waters.

The Indian shipping industry has submitted a list of Indian tankers that are nearing the age of 25 years.

The guidelines issued by the DG (Shipping) on June 11 had banned all foreign flag crude, product and chemical tankers that are 25 years old and gas tankers of 30 years from entering Indian waters from September 1. The effective date is now being shifted by a month to October 1.

Besides, the guidelines said that all tankers above 20 years must have minimum CAP 2 rating for hull, machinery and cargo equipment from the International Association of Classification Societies (IACS).

The age norms issued by the DG had generated a lot of controversy, forcing the shipping regulator to review the issue.

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