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ilI}IISTRY OF PORTS, SHIPPI]IG Al{D }YATERUTAYS
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DIRECTORATE GENERAL OF SHIPPING, MUMBAI

DGS ORDER
on Age Norms and other Oualitative Parameters w.r.t. vessels

F No 16-1701 l/5/2022-SD-DGS Dated 24.022023

DGS Order No. 06 of 2023

Sub: Age Norms and other Qualitative Parameters for Registration/operation of Vessels
under Indian flag and, the foreign flag vessels required to apply for Licence under Sec
406 & 407 of The Merchant Shipping Act 1958.

The objective of the Merchant Shipping Act, 1958, is to foster the development and
ensurethe efl-rcient maintenance of Indian mercantile marine in a manner best suited to serve
the national interests.

2. The registration, certification, safety and security of lndian ships is a means to achieve
the objective of the Merchant Shipping Act, 1958.

3. The quality tonnage is paramount for safe and secure erpansion of the maritime sector
and to achieve sustainability in ocean governance.

4. The saf'ety of lif.e at sea and ships depends on the quality of tonnage registered underthe
flag of a country.

5. The IMO has adopted initial strategy fbr reduction of Green House Gas and to achieve
the targets deflned by IMO, the vessel need to be transfbrmed to alternate fuel ships and age
norms will assist in ensuring gradual phasing out of fossil tuel ships and ushering of
alternate/lowcarbon energy efficient ships

6. The Merchant Shipping Act, 1958, is under review, and once the new legislation is
enacted, the rules and conditions for registration shall be reviewed.

7. Whereas the average age of world fleet is on the declining trend, the average age of the
lndian tonnage is on the increasing trend over the years.

8. Whereas, the existing guidelines stipulate that no prior technical clearance is required
for acquisition of vessels below twenty-tive years of age and would be required for vessels of
andabove twenty-five years of age.

Page L of 8

efi riHf,, Szr frftd'r, err{ Ri6 t+il fu(, 6ig('fiq irs, 6igr{r,f (T{) 5{i- 4ooo4z
9th Ftoot BETA Building, l-Think Techno Campus, Kanjur Village Road, Kanjurmarg (E), Mumbai400042
dftn"t No.: +91-22-25752040/l2BRfrfax.: +91-22-25752o2g135 {-tt,tlEmait: [email protected] t(fl-{dMebsite: www.dgshipping.gov.in
9. Whereas, there is a need to modernise the Indian fleet, which requires extensive review
of the requirements of the registration and operation of the ships, to ensure quality tonnage
under lndian flag.

10. Whereas, there is also a need to create a level playing field for lndian ships by applying
the requirements for quality tonnage over the foreign flag vessels also which ur. ,.qrir.a to
apply for licence under Sec 406 & 407 of Merchant Shipping Act l95g

11. The matter has been discussed extensively with Indian National Ship-owners
Association (INSA), and comments of other stakeholders like ICCSAi ONGC have been taken
Furtlrer,fourmeetingswereheldon1802.22,25.O322.l80822andl6 t2.zOZZonthesubject
matter. Thereafter, a draft of the Order was published on 13 01.2023, fbr stakeholder's
consultation; comments and suggestions from the stakeholders were considered on its merit,
towards culmination of this Order.

12. Whereas, this order shall be applicable to all the lndian and foreign flag vessels
required to be licerrced under Sec 406 & 407 of the MS Act 1958. Accordirigly, this
order shall also be applicable to vessels granted exemption fi'om licencing under sec
406 &.407 of the Act.

13. Whereas, this order shall not be applicable to Passenger Vessels, FSRU, FPSO, and
Drilling/Production units certifled under MODU/SPS Code, as applicable.

14. Whereas, the age of the vessel tbr the purpose of this Order, shall be computed fiom the
"Date of Delivery" as mentiorted in the Cargo Ship Saf'ety Construction Certifrcate or any other
Statutory Certiflcate issued under IMO ConventiorVCode.

15. Now therefbre, in accordance with Section 406.407 &.456 of the Merchant Shipping
Act 1958, read with the notification S.O. No. 3144 dated 1712.1960 and to meet the objective
set out in the preamble of the said Act to ensure efllcient maintenance of Indian mercantile
marine and to promote acquisition of quality tonnage and enhance the safety of life at sea, the
Directorate General of Shipping specifies the fbllowing requirements;

Sl. No. Type of Application

Ships
(l) (2) (3)
15. r. Ships for The vessels of type as specified in Column A of the Annexure-
registration/ope l to this Order, shall comply with the requirements stipulated in
ration under the said Annexllre, as made applicable therein.
Indian flag.

r5.2. Ships acquired The age and other qualitative parameters, as specified in the
under Indian Annexure-l shall also apply to vessels of similar kind acquired
Controlled under 'lndian Controlled Tonnage' reginre (put in place vide
Tonnage:
DGS order l0 of 2014 dated 23.07.2014) carryingcoastal cargo
or providing services within the Exclusive
Economic Zone of India.

Page 2 of 8
 15.3 Foreign Flag The age and other qualitative parameters, as specifiad in ttte
Ships: said Annexure-I shall also apply to all foreign flag vessels of
sinrilar kind requiring licence under Sec 406 and 407 of M S
Act 1958, for operating within the Exclusive Economic Zone
of tndia" whether chartered by an Indian entity or otherwise. In
such cases the maximum age of the vessel shall be calculated
on the date of commencement of service or carriage of cargo,
as the case may be.

16. The Director General of Shipping reserves the right to dispense with any requirement of
this Order on a case to case basis, after considering inputs from INSA, o. of any other
organisation, as may be deemed appropriate in the prevailing circumstances, in publicinterest.

17. The requirement specified under this order shall corne into force from date of issue of
this Order.

18. Forthe purpose of application ofthis Order, fbllowing would be considered an'Existing
Vessel' on the day of this Order, (a) vessels already registered under the Indian Flag on or
before the date of issuance of this Order, and, (b) a vessel for which, a Memorandurn of
Agreement to acquire had been entered into and at least l0% of the pr-rrchase price of the vessel is
deposited by the buyer on or before the date of issuance of this Order. Vessels acquired/to be
acquired under Indian Control Tonnage regime would also be treated in the same line with
Indian Flag vessel.

19. The 'Existing Vessels' regardless of its age on the date of issuance of this Order,
afTected by the maximum age prescribed in the Order, shall be allowed to operate up to three
years from the date of the issue of this Order.

20. Foreign flagged vessels requiring licence under Sec 406 &.407 of the M S Act 1958
and already engaged in charter on the day of this order, shall also be allowed to operate up to
three years from the date of the issue of this Order or until the charter period, whichever is
earlier.

fu,mM*
Director General of Shipping
To,

1. All stakeholders/Ship-owners/Charterers/Shippers/All Indian Shipping Companies

through the official website of the DGS, Gol
2, INSA/ICSSA/FOSMA/MASSA
3. lndian Ports Association.
4. Indian Private Ports and Terminals Association.

Copy also forwarded for kind information to the.

The Secretary to the Govt. of lndia, Ministry of Ports, Shipping and Waterways, Gol,
Transport Bhawan, I, Sansad marg. New Delhi-110001.

Page 3 of 8
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