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Shipowners sink differences over age norms for vessels

P. Manoj

NEW DELHI, April 28

THE Indian National Shipowners Association (INSA) has decided to sink the differences amongst its members and suggest status quo on the age norms for ships.

``After intense deliberations at a meeting held in Mumbai, INSA members decided to bury their differences over age norms for ships and suggest status quo,'' an industry official told Business Line.

The changed stand of INSA will be communicated to the Ministry of Shipping during a meeting convened in Mumbai early next week to discuss the issue. The meeting will be attended by representatives from the Shipping Ministry, INSA, Director General (Shipp ing) and ICICI.

Following the meeting, the Shipping Ministry is expected to finalise revised guidelines for import of all types of ships as well as prescribe age/residual life norms for ships to comply with the EXIM Policy announcement in this regard.

While announcing amendments to the EXIM Policy on April 1 this year, the Union Government had stated that import of second hand vessels may be made without a licence subject to guidelines issued by the Ministry of Shipping and as per the age\residual lif e norms for ships prescribed by it.

A rift within the INSA had led the industry association to make ``no comments'' on age/residual life norms in its suggestions submitted to the Ministry on revising the September 1999 guidelines issued by the Government in this regard.

Instead of making a specific suggestion, INSA had submitted that the ``Government may decide suitably in the matter''.

As per the order issued by the erstwhile Ministry of Surface Transport on March 29 and September 13, 1995, the economic life of crude tankers have been fixed at 20 years, bulk carriers 25 years, LPG carriers 30 years, chemical and acid carriers 25 years, all coastal ships 30 years and off-shore supply vessels 20 years.

The INSA has now decided to suggest that the existing age norms should be retained.

In its 1995 order, the Ministry had also stipulated that for all second-hand acquisitions, the vessel should have a minimum residual economic life of 5 years.

The consensus within INSA is expected to make the task of the Shipping Ministry easier while framing the age\residual life norms for ships, the industry official said.