The Hindu Business Line : DG circular on tanker age norms to prevail over Oil Ministry order

SHIP owners and domestic charterers, including the public sector oil firms, will have to abide by the circular issued by the Director General of Shipping in August last year on the age norms for chartering of crude and product tankers for hauling their oil cargo and not the order issued by the Petroleum Ministry last year in this regard.

"At a meeting convened by the maritime regulator on Thursday with the ship-owners and the oil industry, it was decided that the DG (Shipping) circular issued on August 14, 2003 will prevail on the matter," a shipping industry official who attended the meeting told Business Line. "As a result of the decision, the Oil Ministry order of June last year, which put the age criteria at 15 years for Condition Assessment Programme (CAP) ratings is as good as withdrawn," he revealed.

This will put to rest the confusion among the ship owners and the charterers over whose authority should prevail on the matter, he added.

The DG (shipping) had imposed age restrictions on tankers for moving oil cargo into the country to prevent possible environmental hazard from sub-standard oil tankers calling at Indian ports. As per the guidelines mentioned in the circular which will come into force from April 1, the DG (Shipping) has banned all crude and product tankers (both foreign and Indian flag) that are more than 25 years of age from entering Indian waters.

Besides, all crude and product tankers above 20 years which do not have the mandatory Condition Assessment Programme 2 (CAP 2) rating for hull, machinery and cargo equipment either from a full member of the International Association of Classification Society (IACS) or the Indian Register of Shipping (IRS) will also be banned from entering Indian shores.

The guidelines would be applicable to crude and product tankers on international voyages to and from any Indian port, the DG (Shipping) circular stated.

Significantly, the state-owned oil PSUs have already started implementing the age norms prescribed by the DG (Shipping) with BPCL incorporating the 20 year age criteria for CAP 2 ratings for tankers in its annual coastal shipping tender which was finalised recently.