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Conditions for granted license to foreign flag ships under Sections 406 & 407 of the Merchant Shipping Act, 1958, laying down the norms for engaging Indian crew on board these ships engaged in shipping and related activities in the Indian coastal wate…

Applicable to: Indian Shipping Companies, Charterers/Shippers, Mercantile Marine Departments
Effective Date: 24th May 2011
Superseded Circulars: DGS Circular No.1B of 2011

Key Changes and Requirements

1. Dispensation for Indian Crew Deployment — Section 406 & 407 of the Merchant Shipping Act, 1958

Companies/shipowners/charterers unable to deploy Indian crew/officers can seek dispensation/relaxation under these conditions:

  • Crewing Requirement: Substantiate crewing requirement as per safe manning documents and deploy required Indian crew/officers within 90 days of license grant.
  • Training Slots: If crew/officers are not deployed, provide training slots for Indian crew/officers at the ratio of 10:1.5 for the entire license period, including the initial 90 days.
  • Training Undertaking: Provide an undertaking that training slots will be provided during the calendar year.

2. Training Slot Utilization — Tonnage Tax Scheme

Applicants can offer training on any other Indian company's ship from surplus training slots under the Tonnage Tax Scheme.

Important Note

The Director General of Shipping retains the right to take action as deemed fit, overriding any of the guidelines laid down and issued on the subject.

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