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Clarification on Exchange Rates- Amendments to guidelines for grant of licence to Foreign Flag vessels issued vide SD Cir. No.2 of 2002 dtd 8.11.2002
Key Changes and Requirements
1. Clarification on Conversion Charges
The DGS has clarified the applicability of conversion charges for Indian flag vessels participating in bidding processes for Indian charters/companies. The conversion charges will now be applied to Indian flag vessels in line with the government's policy of strengthening and promoting Indian shipping in a competitive framework.
2. Amendment to Exchange Rate Clause
A new paragraph (4.6) has been added to the guidelines, stating that all payments to Indian shipowners will be made based on the mean of the buying and selling exchange rate of USD/INR, as declared by SBI (CAIG branch), Mumbai, on the due date of payment.
- Applicability: Applicable to all fixtures, spot/COA, and/or time/period/trip charters confirmed subsequent to this date, as well as those currently under negotiations/discussions.
- Exemption: Not applicable to tenders already concluded.
All stakeholders, including Indian shipowners, charterers, and shipping companies, are advised to incorporate these amendments into their existing and future tender processes.
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