In a move that will provide a level playing field to Indian shipping lines, the directorate general of shipping (DGS) has said foreign companies will now have to acquire a licence even to operate outside Indian territorial waters.
The new order is, however, applicable only to those foreign shipping lines, which have been chartered by Indian citizens, companies or cooperative bodies.
The licence will have to be obtained under Section 406 of the Merchant Shipping Act, 1956. The directorate general of shipping clarified this in a recent letter to the Central Board of Excise and Customs, a copy of which is available with Business Standard. The order is a volte-face, as the directorate had earlier taken the line that foreign shipping lines did not require a licence, as long as they operated more than 12 nautical miles off the Indian coast. The clarification follows hectic lobbying by Indian National Shipowners Association (INSA), the apex body of Indian shipowners.
Sources in INSA welcomed the development and said,
