IOC gets nod to charter ships directly for imports

Indian Oil Corporation (IOC) can now directly charter ships for oil imports instead of going through the ministry of shipping's agency Transchart.

The cabinet, which met here today under the chairmanship of Prime Minister Manmohan Singh, approved the decision after the committee of secretaries recommended the amendment in the existing policy on charter of ships for imports by PSUs.

I&B minister Jaipal Reddy said other oil PSUs like HPCL, BPCL and MRPL will continue to depend on Transchart and Shipping Corporation of India for meeting their charter requirements for the time being.

"Their cases for hiring charter ships would be reviewed after one year based on the experience of IOC," Reddy said.

The proposed amendment in the existing policy is in line with the deregulation of the petroleum sector, and would enable a level playing field for private and public sector oil companies, he added.