Govt bans oil tankers, bulk carriers older than 25 yrs

The Directorate General of Shipping in an order on Monday withdrew the licences of vessels such as oil tankers and bulk carriers that are older than 25 years. The decision has been taken to cut emissions and reduce the average age of the country's fleet. 

The government has also banned acquisition of vessels that are more than 20 years old. As per the existing guidelines, acquisition of vessels that are less than 25 years does not require technical clearance.

"Oil Tankers (2nd hand) of 20 years and above age can’t be acquired. The withdrawal of the general trading license (GTL) for all tankers of 25 years of age and above. No relaxation of bunker barges," the order said.

As per the government’s order, the average age of the world fleet is on a declining trend, and the average age of the Indian tonnage is on the increasing trend over the years. "Age norms will assist in ensuring gradual phasing out of fossil fuel ships and ushering in of alternate/low carbon energy efficient ships," the order said. 

However, the government has exempted passenger vessels, Floating Storage Regasification Unit (FRSU), Floating Production Storage and Offloading (FPSO) units, and drilling and production units. 

"There is a need to modern the Indian fleet, which requires review of the requirements of the registration and operation of the ships, to ensure quality tonnage under Indian flag," the order said. 

"There is also 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 license under Sec 406 & 407 of Merchant Shipping Act l958," it added. 

According to Section 406 of the Merchant Shipping Act, 1958, no Indian ship and no other ship chartered by a citizen of India or a company or a cooperative Society shall be taken to sea from a port or place within or outside India except under a license granted by the Director-General. 

According to the Section 407, no ship other than an Indian ship or a ship chartered by a citizen of India or a company or a co-operative society shall engage in the coasting trade of India except under a licence granted by the Director-General under this section.

The decision by the government has been taken following the extensive discussion with Indian National Ship-owners Association (INSA) and comments from various shareholders, such as Indian Coastal Conference (ICCSA) and Oil and Natural Gas Corporation (ONGC).