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Guidelines for grant of license to foreign flag vessels. - NOT IN OPERATION

**Summary of DGS Circular 2 of 2019: Guidelines for Grant of License to Foreign Flag Vessels**
Applicable to: Indian seafarers, ship owners, charterers, and entities engaging foreign flag vessels
Effective Date: 22.03.19
Superseded Circulars: SD Circulars 02/2002, 02/2004, 07/2003, 03/2006, 04/2008, 01/2010, 02/2010, 06/2010, 07/2013, 02/2014, 04/2015, 02/2018, and 01/2019

Key Changes and Requirements

1. Application and Licensing Process

Applications for license, payment of fee, processing, and grant of license are completely online through the DGS portal.

  • Chartering/Engagement through Tender Process: Applicable for open/global tenders. Tender process details and definition provided.
  • Chartering/Engagement without Tender Process: Entities apply on DGS portal, pay fee, and submit application. Indian ship owners may offer their ships. License required if Indian ship not selected.
  • License Fee: Non-refundable fee for enquiry: Rs. 5000/-. License fee: Rs. 1 Lakh for 30 days, Rs. 5000/- per day thereafter. Maximum duration: 730 days.

2. Right of First Refusal (RoFR)

RoFR applies to Indian-built or Indian-flag vessels or Indian chartered vessels. Priority given to Indian-built ships. Margin of Purchase Preference: 20% of L1 bid. RoFR may be exercised only if the vessel is offered by a foreigner or entity registered outside India.

  • Composite Effective Price: Derived figure from various price inputs submitted by a bidder. No price preference for any vessel.
  • RoFR Exercise: Bidder matching the lowest composite effective price exercises RoFR. If no bidder matches L1 quote, charter is awarded to L1 bidder.

3. Deployment of Indian Crew

Foreign flag vessels engaged for coastal operation must deploy Indian seafarers as per the given scale. No obligation for up to 30 days, 1/3rd for 30-90 days, 50% for over 90 days. Trainee cadets/officers must be included.

II/4  Deployment of Indian Crew on Foreign Flag Vessels
  • No obligation: Up to 30 days
  • 1/3rd of seafarers: 30-90 days, including 15% trainee cadets/officers
  • 50% of seafarers: Over 90 days, including 15% trainee cadets/officers
Important Note

Penalties for deviations, including license withdrawal and debarment, may apply. DG Shipping may take action in public interest, overriding guidelines.

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