India to Decentrale Chartering Arrangements

 

The Cabinet Committee on Economic Affairs (CCEA) has allowed government departments and public sector undertakings (PSUs) to make their own shipping arrangements with regard to oceanic transportation of cargo by decentralising existing chartering arrangements.

 

This step of enabling direct chartering arrangements will not only give flexibility to government departments/PSUs to make tailor made solutions for cargo operations in a dynamic shipping market but also promote Indian tonnage.  

 

The scrapping of the provision to route their requirement through the Ministry ofShipping would save time.

 

“This measure is aimed at helping various departments/PSUs in taking quick decisions to efficiently manage their cargo supply and logistics chain operations and add to their competitiveness,” said an official statement, adding that it would promote Indian tonnage.

 

The move will be subject to players following extant government policy, including right of first refusal being given to Indian ships.

 

As a step towards further simplification in respect of general liner cargoes, government departments/PSUs can now finalise import contract both for Free on board (FOB) or cost & freight (C&F) basis, subject to right of first refusal being given to Indian ships, in case of FOB import with the need of prior permission from the Ministry of Shipping.