Shippers asked to draft offshore policy

India is working on a policy to regulate the offshore sector and to ensure optimum exploitation of offshore resources like petroleum and related products.

The shipping ministry has asked the Indian National Shippers' Association (INSA) to come up with a draft policy in the next few months.

"India's potential in the hydrocarbon industry is as high as 28 billion metric tonnes, of which only 6 billion metric tonnes have been exploited. The growing hydrocarbon industry will need the support of a comprehensive offshore policy," an INSA spokesperson said, while presenting the approach paper to the ministry.

The policy will cover any activity within India's territorial waters and the exclusive economic zone, like exploration and other support activities such as pipe laying, cable laying and mining.

One of the main issues that needs to be addressed by the policy is whether Indian industry should be given preferential treatment in terms of tax concessions and subsidies, which will not only encourage domestic industry but also address security issues.

At present, both Indian and foreign players enjoy a level playing field in oil exploration.

The policy will also consider the uniform application of international standards to operations in the exclusive economic zone, which extends up to 200 nautical miles from the country's shores.

At present, as many as 27 types of vessels are involved in offshore activities and each of them is governed by seven different Acts, including the Miners Act, 1947, Oilfield Act, 1947, and Merchant Shipping Act, 1958.

The proposed policy will bring all vessels under a single law. There is also a need for regulations relating to data protection and the specification of chartering principles.

These will help improve the share of Indian vessels in the global maritime trade, create a separate cadre for the offshore sector and develop skilled manpower.

Britain, Norway and the US are the only three countries that have a separate offshore policy.