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Guidelines for grant of Licence for Contract of Affreightment (COA)
Key Changes and Requirements
1. Licence Period & Extension
The period of licence on COA proposals is limited to one year, extendable to a maximum of three years under exceptional circumstances.
2. Indian Shipowners' Participation & Right of First Refusal
Indian shipowners must be invited to bid. They have the right of first refusal if they match the lowest price quoted by foreign flag vessels, subject to certain conditions.
- Conditions: Indian flag vessels must satisfy technical and commercial requirements, the price difference must not exceed 10%, and Indian shipowners must offer their own vessels for the entire COA.
3. Charterer's Responsibilities
Charterers must submit proposals for 'in principle approval' and final proposals, pay processing fees, and maintain proper documentation.
4. Penalties & Dispute Resolution
Violations of guidelines may result in penalties. In case of disputes, the decision of the D.G. Shipping is final.
The D.G. Shipping retains the right to take action as deemed fit to expedite national projects, increase Indian tonnage, and tackle emergencies.
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