Govt charter rules to allow right of first refusal to ships built in India

NEW DELHI: In a big boost for centre’s Make in India initiative, the shipping ministry has revised its guidelines for chartering of ships by providing Right of First Refusal ( RoFR) to ships built in India.

The move is aimed to incentivize ship building activity in the country, the ministry of shipping announced on Monday.

“Henceforth, whenever a tendering process is undertaken to charter a vessel, a bidder offering a ship built in India will be given the first priority to match the L1 quote. It is expected that this priority given to ships built in India will raise the demand for such vessels, providing them with additional market access and business support,” the ministry said.

The Union minister for shipping Nitin Gadkari will launch the policy today during the inauguration of the two-day Regional Maritime Safety Conference.

Prior to the revision of the guidelines, the RoFR was reserved for Indian flag vessels as per the relevant provisions of Merchant Shipping Act, 1958. “The existing licensing conditions have been reviewed in consonance with the Government of India’s policy of promoting the Make in India initiative,” the ministry said.