"A basic understanding on commencement of coastal shipping has been arrived at between India and Bangladesh," Minister of State Shipping Krishanpal Gurjar told Lok Sabha in a written reply.
He said it has been agreed by both the countries to conform to certain minimum vessel classification standards and also third party insurance cover with appropriate liability limit of the coastal vessels.
"The Indian coastal vessels already conform to necessary standards and insurance liability coverage. However, the Bangladesh side has mentioned they would take some time to have these norms and insurance policy in place," he said.
Last month the government had said trial runs between ports in the two countries were slated by October 14 for coastal hipping.
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Both the countries have agreed to buy insurance cover for a limit of USD 10 million from the respective domestic insurance companies.
Indian coastal vessels presently are covered for an insurance liability up to a maximum limit of USD 10 million only.
A meeting held in June at Dhaka in this connection.