Ships built in India to get Priority in Chartering.

The Union Minister Mansukh  Mandaviya announced that  government has amended the existing norms related to the ships built in India. Under the new norms, first priority in chartering of the vessels would be given to ships built, flagged and owned by Indians. This decision align with the Atmanirbhar Bharat initiative.


  • The decision promotes the  ‘Make in India’ initiatives through self- reliance.
  • It will provide a strategic boost to domestic shipbuilding industries and
  • It will also generate employment.
  • It will provide strategic boost to domestic Ship building industries and also contribute for long-term economic growth of India.

What are the new norms?

  • Under the new norms, presence of charter for  a vessel would be taken through a tender process.
  • The Right of First Refusal (RoFR) will be applicable in following manner:
  1.  Indian built, Indian flagged and Indian owned.
  2. Foreign built, Indian flagged and Indian owned.
  3.  Indian built, foreign flagged and foreign owned
  •  RoFR would be exerted provided that:
  1. All vessels are registered in India
  2. he foreign flagged vessels are permitted by DG (Shipping) under Section 406 of the Merchant Shipping Act, 1958 for chartering.
  • The duration of licence to such chartered vessel would be limited to the period for building of the ship.

Long-term subsidy for shipbuilding activities

Ministry of Shipping has also made provision for long-term subsidy for shipbuilding activities. This has been provided under shipbuilding financial assistance policy (2016-2026). In this regard, Ministry has disbursed ₹61.05 crore. It will help the Government to incentivise the shipbuilding by providing additional market access and business support to ships built in India.

Significance of new norms

The new norms will give a boost to the domestic shipbuilding and shipping industries. It will also encourage the domestic shipping industry so as to support the domestic shipping industry.