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Pinto Favours Coastal Shipping Act

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S Ravindran BSCAL
Last Updated : Oct 13 1997 | 12:00 AM IST

The director general of shipping, M P Pinto, has strongly come out in favour of a coastal shipping act. He based his arguments on the grounds that the norms for governing ships which ply on domestic waters should be different from those which operate on international waters

"Why should a ship which plies between Mumbai and Ratnagiri be subjected to the same controls as ships which operate on international waters," he opined.

At present, ships which operate in domestic as well as foreign waters are governed by the Merchant Shipping Act, 1956.

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Pinto also defended the decision by the committee headed by him to formulate a national shipping policy to reserve the carriage of liquefied natural gas (LNG) exclusively for Indian shipping lines.

In the case of liquefied petroleum gas (LPG) domestic lines have been granted the first right of refusal.

He pointed out that an LNG contract was usually for very long periods like 20 years. These contracts are firmed up with shipping lines at the beginning itself, he said. It is not possible to enter these contracts at a later stage. "I don't want Indian shipping lines to lose out on this opportunity as it will be impossible to gain an entry if the contract is entered into with foreign lines," he said. Besides, in the case of LNG there were no fixed freight rates.

The recommendations of the Pinto panel are being considered by an empowered committee comprising representatives from various ministries.

The committee is headed by the surface transport secretary Yogendra Narain. Subsequent reports have, however, indicated that the committee has rejected reservation of LNG for Indian ships on the grounds that not a single domestic shipping line possessed LNG carriers.

The proposal has been opposed by the oil and power ministry officials.

The director general also denied he was in the running for the post of chairman of the Mumbai Port Trust (MBPT).

The post of chairman of MBPT will shortly fall vacant following the retirement of the current incumbent, S G Kale.

"I can do more as the director general of shipping than as MBPT chairman," he said.

He, however, admitted that the mercantile marine department (MMD) of the directorate general of shipping was understaffed. "The MMD is definitely understaffed. However, we have secured approval from the Union government to appoint additional officers," he revealed. Pinto's statement assumes significance in the wake of the frontal attack launched by the president of Indian National Shipowners Association (INSA), B L Mehta, on the MMD at a press conference here last month.

INSA is the apex body of Indian shipowners. Mehta alleged that since the MMD lacked adequate number of personnel as well as qualified staff foreign shipping lines were not subjected to the same stringent checks in India as domestic ships were abroad.

Pinto agreed that Indian ships were subjected to much stricter controls in foreign ports.

He, however, pointed out that his office had taken a conscious decision to focus more on Indian vessels.

"This has resulted in India being taken off the Paris MoU watchlist. This is a signal contribution," he said.

The Paris MoU determines the safety and other standards to be adhered by ships when they enter European ports. Indian ships had been put on the watchlist as many of them repeatedly failed to adhere to these norms.

Pinto promised to take action against errant MMD officials provided proof was furnished. "I have heard allegations of corruption in the working of the MMD. However, I cannot take action unless proof is provided. Besides, I have also sought complaints in writing. But this has not been forthcoming," he added.

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First Published: Oct 13 1997 | 12:00 AM IST

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